KONICA MINOLTA Konica Minolta Inc. Medium Term Business Plan  


4-4-2. Key Points of FY2014 Performance Forecast

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Finally, I would like to break down the growth in operating income from ¥58.1 billion in fiscal year 2013 to an estimated ¥62 billion in fiscal year 2014. We anticipate some major improvements, such as a sales volume effect of ¥44.6 billion and cost reduction effect of ¥12 billion. However, we also expect SG&A expenses to rise ¥43.7 billion. That last number includes ¥8 billion in upfront investment to spur future growth. Breaking down this upfront investment, about two-thirds of it is intended to achieve fiscal year 2016 targets. The other third looks further ahead, to fiscal year 2018. The nature of the upfront investment includes setting up a global service system to facilitate transformation of the Business Technologies Business's portfolio, as shown on this page.