KONICA MINOLTA Medium Term Business Plan "SHINKA 2019"  


Strengthening profit capacity of core business

Prev. Page Next Page Download the PDF
Edge IoT is the core of the strategy in the "new" areas, but it really is extremely important that we increase profits in the core businesses over the next three years. This "core" includes the growing production print and measuring instrument businesses, so we will make a solid expansion in profits over these three years.
Additionally, we have determined specific measures to improve costs by ¥30 billion over three years. In terms of manufacturing costs, we will achieve ¥16 billion in improvements from the delivery of results of the digital manufacturing initiative in Malaysia and its horizontal deployment, and for service costs we will achieve ¥6 billion in improvements by bolstering remote services through leveraging such technologies as deep learning and AI. Finally, with regard to administration and direct costs, we will carry out ¥8 billion in improvements from working style reforms, bringing the total over three years to a minimum of ¥30 billion in cost improvements. In fiscal 2017, we have also factored in structural reform expenses, and we are determined to execute this.
Konica Minolta has an extremely high sensitivity to the euro. When the pound is included as well, the impact is ¥1.2 billion for every 1-yen move in exchange rates. Over the next three years, with the aim of halving this sensitivity, we will increase procurements denominated in euro, as well as strengthening the global business of those companies acquired in euros as part of our initiatives to reduce sensitivity. By means of thorough, business-by-business ROIC management, we will make efforts to improve our ability to generate operating cash flow.