2nd Quarter/FY2016 ending in March 2017 Consolidated Financial Results
7/20 Business Technologies Value-added Sales Approach leads Gross Margin Increase
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We control the four items to the left as we look at our value-added sales approach. While of course the aim is to increase the sales ratio for IT service solutions. As a result, it is important for hybrid-type sales to lead to high-speed color MFP, as shown on the right. The ratio for Seg4+ high-speed color MFPs have increased. Although it is not stated here, sales volumes of our A3 color models increased by 11% YoY during the second quarter. Unit sales increased by 4% in the first quarter, so growth in unit sales of color models during the second quarter was also strong, exceeding the market average significantly by 3%. Increasing the ratio of mid-speed models resulted in print volume growth of 6.3% during the second quarter.Non-hardware sales for office products grew by 0.2% on a local currency basis. Production print recovering since the fourth quarter of last fiscal year has led to an acceleration in this growth during the first half of the current fiscal year. In production print, the shift from light production to mid production has also led to growth in non-hardware sales. As a result of these factors, gross profit ratio has been maintained at 50% or above.
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