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


Toward Improved Earnings Capabilities in FY2020

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Lastly, I am going to talk about FY20 though we are here to talk about FY19.
Point 1 is the production cost reduction where we are having some delay. We are already addressing this issue as surely as possible.
Point 2 is explaining the additional structural reform to accelerate business transformation. I said earlier the additional expense is 7.5 billion yen. We had already reserved 1.2 billion yen in the 1st half and we used it. On a full year basis, the Company will spend a total of 8.6 billion yen.
With point 2 only will not give us 15 billion yen. But if we are to include the sure effect from point 1 in 2020, then I believe putting them together we should be able to add this 15 billion yen so that we can raise the operating profit of 27.5 billion yen.
And I strongly believe we have to have a good profitable basis in FY2020. Looking at a full-year basis, product portfolio in the Office segment will change into a full-line up of bizhub i-series for one year.
Professional Print, which is hit the hardest from the original target, may I remind you again that in the 4Q we will launch new HPP products, and in May we are to launch a long-waited new LPP products, and in the 2nd half, we will have new MPP products. So, in the transition from FY19 to FY20, we will have those new line-ups. It will be a year of full new line-ups.
In the measuring instruments unit, the 2020 smartphone model is going to be our focus to enable us to become profitable by responding to mid-term and long-term demands.
As for performance materials, we will make a expand from TVs to touch panels and other new applications, small and medium size. We will have a full engagement of those activities in FY20.
As for Healthcare Business, we definitely go for dynamic X-ray and medical IT.
As for new business, it's not going to be the case that we will reach our goal in everything in 2020, but it is critical for us to achieve a good top-line while keeping an eye on FY21. So that we can transform Konica Minolta's business portfolio for betterment 3 years or 4 years ahead. We continue to reinforce ourselves where we should do so.
But in light of the FY19 performance where we had a tough time in some existing businesses, we simply cannot keep the same pace of making investments into new business areas. We need to be more choosy identifying top priorities for the Company. We have to look at the return on investment we are to make. This is going to be our baseline. And if the investment is necessary, we will continue to do so considering three years span. With this approach, we would like to generate results starting from FY20.