KONICA MINOLTA 2nd Quarter/FY2019 ending in March 2020 Consolidated Financial Results  


summary : Industrial Business & New Business

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In the measuring instruments unit, though we had a tough time in the 1st half, but in the 2nd half, we are already receiving smartphone 2020 models related orders in advance. We will have a peak in the 4Q and moving forward in the 1st half FY20, we expect we have a higher peak above the 4Q. With this point in mind, we are now having detailed dialogues with our customers as for 2020 models.
Automotive visual inspection business will accelerate in the 2nd half.

In the performance materials unit, we are carefully looking at panel inventory adjustment, but as I mentioned earlier, we are now making a shift to higher value-added resin films. With this in the background, we believe we should be able to increase both profit and sales in the second half YoY basis.

In new business, though we are still under water, but we will grow dramatically from now on. The major drivers for this are our series of efforts to push up bio-healthcare opportunities. To be more specifically, RNA testing samples are growing in number, which would lead to more health checkup or CARE program and pharmaceuticals opportunities. We will accelerate those activities more so over the 1st half.
Konica Minolta is now having a unified effort to reduce cost by Ambry's super lab. Beside the top line, we are now trying to improve its gross margin. We are trying to improve R&D spend more efficiency from a global perspective.
At Invicro side, there are a trend back to drug development for central nervous systems. We are now making a plan for FY20. This portion is not reflected in the current fiscal year plan. So, this is going to be our business opportunities.
We will strengthen our activities for central nervous and cancer clinical trials in the 2nd half.

As for WPH, we are now shifting customers from cloud only to edge. We are convinced that this is a right direction for us to go to benefit our customers. One of the reasons why we missed our target in the 1st half is the products we offered did not necessarily meet with the customers' needs with previous versions. We are upgrading our versions in parallel, and in the 2nd half we will meet our customers' needs more stably at a certain level. And from now on support for our customers would become more critical. And for that we can leverage the IT company we acquired in the US. With its back-office system we can go for global scale business opportunities. We have already built the system. All left is our execution on this transformation together with our MFP salesforce by reinforcing their engagement.