KONICA MINOLTA Konica Minolta, Inc. 1st Quarter/FY2016 ending in March 2017 Consolidated Financial Results  


Business Technologies Business Overview

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From this point, the explanation will be by business.
In the Business Technologies Business, revenue decreased 8% year on year to ¥186.3 billion. Revenue decreased in both the office services and in the commercial and industrial printing fields due to the foreign exchange impact. In the office services field, the A3 color MFP kept up its momentum and sales of top-of-the-line color equipment also held strong in the commercial and industrial printing field, but this turned out to be insufficient to absorb the foreign exchange impact. When foreign exchange is excluded, revenue shows an increase of 3%.
Operating profit held to the previous year's level at ¥13.3 billion. SG&A expenses increased by ¥3.6 billion. This included an impact of ¥1.7 billion from new consolidations. Although there was a foreign exchange impact of ¥2.7 billion, the effect of the sustained effort in new A3 color MFP products from the previous year, as well as the increase of high-end models in the proportion of sales, yielded an increase in the gross profit ratio, and this covered the negative factors.
Starting with this quarter, it has been decided to disclose a breakdown of the Business Technologies Business operating profit by office services and the commercial and industrial printing fields. The operating profit ratio in the commercial and industrial printing fields for the period is still low, at above 5%, but it has improved one point year on year. Pre-drupa ("drupa" is one of the world’s largest printing equipment exhibitions) restraints on purchasing and increased costs due to new products resulted in a temporary low. In the full-year forecast provided on later pages, plans are to achieve an operating profit ratio on a par with the office services field.