KONICA MINOLTA Konica Minolta, Inc. 2nd Quarter/March 2016 Consolidated Financial Results  


Business Technologies Business

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This part will explain points to note for the Business Technologies Business in the second half in order to achieve full-year performance according to plan.
In the office services field, the introduction of a new engine began according to the initial plan, from the end of the first half and into the second half. Full-scale shipments started on October 20. This will put engines that are cost competitive and capable of supporting solutions into platforms for office MFPs in the second half. Konica Minolta will make maximum use of this, without following suit in price competition, and not just by direct sales, but also by maximizing the impact of the new engine to contribute to the benefit of dealers and users. Upholding the basic TRANSFORM policy, Konica Minolta will continue the shift to high print volume (PV) and high segments.
There has been a global increase in agreements for hybrid-type sales in which content management and MFP sales jointly propose solutions to customers. These also involve solutions and IT in supporting reform of operational flow. Konica Minolta will definitely accelerate this movement.
Japan, North America and Europe will be key elements in our strategy by region. Konica Minolta has comparatively little weight in China and emerging countries, so the focus in the second half will be on gaining a solid grasp of PV in Europe and North America. The loss of large orders in the first half due to increasingly aggressive pricing has been fully analyzed. In the second half, Konica Minolta will make effective use of new products while working with some strategic partners in the United States and Germany to actively engage and acquire contracts that are judged to maximize profit on a consolidated basis.
As far as expansion of the commercial and industrial printing field is concerned, the bizhub PRESS C1100, a flagship product, has earned an extremely good reputation for quality and usability. We had not managed to break through to the major commercial printing companies that create a one-million-page monthly PV, but now business negotiations with those companies are moving forward. Making certain of success in these negotiations will provide a major foundation for PV in fiscal year 2016.