2nd Quarter/FY2016 ending in March 2017 Consolidated Financial Results
20/20 Creating Businesses for the IoT Era with Higher Profit: Operating Profit Ratio of 15% or greater
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While these kinds of domains will be the pillars for business creation in the next Medium Term Business Plan, monetizing IoT is an issue that must be faced. We will develop a domain with a new IoT device that integrates our strengths, making them closed platforms, and applying deep learning to the data and images that are input. In addition to this, one of the keys for monetization is the ability to find and clarify substantial problems of industries and business categories by focusing on the design thinking method rather than a generic approach to resolving issues.In other words, focus on themes that can be monetized and develop those themes with agile tactics to create new businesses. With Konica Minolta’s Business Innovation Centers located in five regions around the world serving as the basis of our strength, we will focus on organizational capacity building in order to implement mass customization for the IoT era in five regions around the world simultaneously. A software strategy is extremely important in terms of profits. We will work on proprietary software development leading to high profitability in the domain of the analysis of the information and images we handle, rather than the scope of big data analysis.Finally, while Konica Minolta will establish unique cyber-physical systems, alliances with open platforms are required in order to solve the issues of companies around the world. For that reason, we would like to pursue alliances between platforms that Konica Minolta could monetize and open cloud computing.This concludes my briefing on the next Medium Term Business Plan. As I mentioned at the beginning, the targets five years from now of a revenue of 1,500 billion yen and an increase in the operating profit margin from 8% to 10% have been negatively impacted by exchange rate fluctuations by an amount of 25 billion yen just for the period beginning in April this year. However, we will continue with the business strategy announced on April 14 so that we can ensure an increase in operating profit from this fiscal year even if the yen remains high.
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