2nd Quarter/FY2016 ending in March 2017 Consolidated Financial Results
5/20 Business Technologies
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The chart to the left presents the business contribution profit (operating profit excluding other income/expenses) in the Business Technologies Business by quarter. We believe these figures demonstrate the earning power of the Business Technologies Business. The green line presents the gross profit ratio. We believe that it has been possible to maintain a gross profit ratio of 50% or above as a result of promoting hybrid-type sales to become a medium to long-term partner for specified customers, rather than selling hardware at a lower price, and to measures to sell a higher ratio of color mid- and high-speed MFPs based on our policies.In addition, in the commercial printing field, we launched sales of the KM-1 high-end digital inkjet press in the first half. We have also acquired an additional stake in MGI (France) and fully entered the industrial printing business. Non-hardware sales shifted to positive growth year on year in the office field, and accelerated from the first quarter in the production printing field.We will introduce new production printing products in the LPP domain beginning in the second half. Growth in LPP sales volumes was somewhat stagnant during the first half. This was partially due to the fact that we did not make compromises in terms of price in this competitive environment, but we will leverage the introduction of new products during the second half.We are implementing structural reform every year so that each subsidiary, sales company, and manufacturing subsidiary has a more sturdy structure. During the second half, we will continue to relentlessly pursue structural reform to strengthen production and sales structures, and we are also issuing instructions to even further reduce the SG&A ratio in the Business Technologies Business during the second half.
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