KONICA MINOLTA Konica Minolta Inc. Medium Term Business Plan  


2-6. Strategy Overview for Performance Materials Business

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The Performance Materials Business had ¥58.3 billion in sales in fiscal year 2013. In fiscal year 2014 we project that number will fall to ¥49 billion, as we take seriously the poor TAC film market and risks such as price effects. On the other hand, we launched optical thin film for mobile applications in the latter half of fiscal year 2013, and we plan to introduce new VA-TAC film products for TV applications in the second half of fiscal year 2014. As a result, we expect to raise our ratio of new products in fiscal year 2016 to 60%. The depreciation process in this business area is now almost complete, and we will work to cut manufacturing costs by raising production efficiency with as little new investment as possible in future. We will persistently work to increase revenue while absorbing price fluctuations. The next pillar of the business after TAC film includes window film and barrier film. We will be pouring our energy into expanding these businesses. We will cultivate both in-company and B2B sales channels. The scale of this business will grow ¥15 billion between fiscal years 2013 and 2016. The time scale for OLED lighting is a bit longer. We anticipate business of ¥50 billion in fiscal year 2020. We do not expect this field to make a major contribution to our business during the current medium term business plan. Over these three years, we will work to develop applications using OLED characteristics and to secure customers. We will try to develop mass-production technologies as we aim for manufacturing costs that are competitive with LED products.