The reality is that although over the past three years the exchange rate has caused us extraordinary difficulties, the major reason for Konica Minolta's operating profit diverging in comparison to the Medium Term Business Plan of three years ago is that we have carried out so much upfront investment in the "growth" and "new" fields.
Even looking at fiscal 2016, we made upfront investments of about ¥8 billion in "growth" and ¥10 billion in "new" areas, for a total of roughly ¥18 billion. This situation has continued for the past three years. Over the next three years, we will ensure that this results in a contribution to profits. In the new Medium Term Business Plan, we forecast ¥12 billion in operating profit contributions from the "growth" area as of fiscal 2019, and at this point we have penciled in ¥3 billion for "new," but in five years' time, in fiscal 2021, we expect ¥30 billion from "new" and another ¥30 billion from "growth," for a total of ¥60 billion in profit. Our overall target is \100 billion or more. It is the role of "SHINKA 2019" to provide the route to generating that 60% from the "growth" and "new" areas of the business.
In fiscal 2017, investment in the "growth" area will shrink by ¥3 billion, but in the "new" area, we forecast ¥15 billion, including M&A, and we view it as the year in which investment in IoT and "new" is necessary to secure growth between fiscal 2019 and fiscal 2021. Therefore, with our eyes fixed on three years and five years in the future, for fiscal 2017, we have put operating profit at ¥46 billion. In preparation for fiscal 2019, we will maximize the results of the acquisitions and dig deep by extracting the value from digital, while looking further ahead to fiscal 2021, we will use these three years to develop systems and establish a high-profit business model for the IoT age.
Even looking at fiscal 2016, we made upfront investments of about ¥8 billion in "growth" and ¥10 billion in "new" areas, for a total of roughly ¥18 billion. This situation has continued for the past three years. Over the next three years, we will ensure that this results in a contribution to profits. In the new Medium Term Business Plan, we forecast ¥12 billion in operating profit contributions from the "growth" area as of fiscal 2019, and at this point we have penciled in ¥3 billion for "new," but in five years' time, in fiscal 2021, we expect ¥30 billion from "new" and another ¥30 billion from "growth," for a total of ¥60 billion in profit. Our overall target is \100 billion or more. It is the role of "SHINKA 2019" to provide the route to generating that 60% from the "growth" and "new" areas of the business.
In fiscal 2017, investment in the "growth" area will shrink by ¥3 billion, but in the "new" area, we forecast ¥15 billion, including M&A, and we view it as the year in which investment in IoT and "new" is necessary to secure growth between fiscal 2019 and fiscal 2021. Therefore, with our eyes fixed on three years and five years in the future, for fiscal 2017, we have put operating profit at ¥46 billion. In preparation for fiscal 2019, we will maximize the results of the acquisitions and dig deep by extracting the value from digital, while looking further ahead to fiscal 2021, we will use these three years to develop systems and establish a high-profit business model for the IoT age.