Konica Minolta 2015 Annual Report Download - page 40

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Business Results
Business Technologies Business
Office Services
IT solution services
• Our hybrid-type sales model, which combines IT services with our MFP
products, experienced strong growth in both Europe and North America.
Office products
• Sales remain strong for A3 color MFPs, introduced as strategic products into
countries where markets are growing.
• In the U.S., the now large MIF (machines in the field) with regard to color
MFPs resulted in steady color print volume.
• We entered into a new global business deal with French conglomerate in the
defense, aviation, and communications fields.
• Fiscal 2014 business results and fiscal 2015 forecast
One basic strategy for this segment involves improving the
proportion of sales of high-profitability A3 color MFPs and medium-
and high-speed MFPs, which carry the greatest potential for high
print volume. Another involves strengthening our competitiveness
in the market and ensuring stable earnings by way of hybrid-type
sales that integrate IT services with MFPs.
Regarding fiscal 2014 business results, sales of IT service
solutions were up 15% year on year and sales of mainstay A3 color
MFPs remained solid, with sales units expanding in all regions.
The number of contracts and sales steadily increased for OPS
(Optimized Print Services) as well, which optimize a customer’s
output environment, following efforts to strengthen the sales and
support system for major customers globally. Sales units of A4
color MFPs also increased as a result of these conditions.
For small- and medium-sized customers, the Group further
evolved its hybrid-type sales that combine IT services with MFPs,
an initiative being developed primarily in the European and U.S.
markets, and started MCS (Managed Content Services), which
Revenue Main Achievements in Fiscal 2014
OPS sales A3 MFP unit sales growth
* Base index: FY2013=100* Base index: FY2012=100
* Figures published in May, 2014
Market environment
(opportunities and challenges)
• At small- and medium-sized companies, the
bulk of our customer base, there is often a
shortage of IT specialists, and latent demand
for IT services is high.
• The market for MFPs has reached maturity in
developed countries, and we need to find a
way to further enhance the value we provide
to customers while avoiding price
competition as these products become
increasingly commoditized.
Strengths and strategies
• We focused on high-profitability A3 color MFPs and high-speed models.
• We improved hybrid-type sales that integrate IT services with MFP
products.
• We enhanced Konica Minolta solutions aimed at putting MFPs at the
center of offices’ IT networks. As a result, we expanded sales to
medium enterprises and larger organizations by removing ourselves
from price competition.
• We transitioned to an industry-specific and business type-specific
system of sales structure from a region-specific system in order to
conduct strategic sales directed at companies that handle high print
volume. We are achieving good success in North America.
(Billions of yen)
(FY)
800
600
400
200
0
2013
597.0
2014
604.2
680.0
567.1
2016
(plan*)
Revenue
J-GAAP IFRS
(FY)
100
155
20132012
254
2014 (FY)
100
2013
102
2014
52 48
48 52
+11.2%
Color B/W
39
KONICA MINOLTA, INC. Annual Report 2015
Foundation for GrowthBusiness StrategiesGrowth StrategyCompany Overview and Characteristics Financial Report