Konica Minolta Holdings, Inc.
August 28, 2003
(Continued.)
Year-to-Year Strategies
Group Targets on Consolidated Basis
[Billion yen]
| FY2002 | FY2003 | FY2004 | FY2005 | |
|---|---|---|---|---|
| Net Sales | 1,087.2 | 1,142.0 | 1,200.0 | 1,300.0 |
| Operating income | 77.2 | 66.5 | 93.0 | 145.0 |
| Net income | 29.1 | 23.5 | 30.0 | 65.0 |
| FCF | 92.9 | 10.0 | 26.0 | 53.0 |
| Investments | 45.4 | 53.0 | 55.0 | 60.0 |
| Interest bearing debt | 322.8 | 310.0 | 300.0 | 250.0 |
| Operating income ratio | 7.1% | 5.8% | 7.8% | 11.2% |
| ROE | 12.2% | 6.6% | 7.8% | 14.7% |
| ROA | 3.3% | 2.4% | 3.0% | 6.4% |
Exchange rates: US$=¥115, EUR=¥120
Consolidating goodwill (equity method goodwill):¥100 billion
Amortization of equity method goodwill: ¥5 billion a year, over a period of
20 years. The amounts will be posted in SG&A expenses.
FY2002 and FY2003 are simple addition of Konica and Minolta figures.
Cost and Effects of Integration from FY2003 through FY2005
[Billion yen]
| FY2003 | FY2004 | FY2005 | |
|---|---|---|---|
| Cost of integration [SG&A of total costs] |
-21.0 [-12.0] |
-23.0 [-13.0] |
-4.0 [3.0] |
| Effects of integration | 1.0 | 21.0 | 34.0 |
| Loss in sales | 5.0 | -5.0 | 0.0 |
| Expansion of sales, including synergy effects | 0.0 | 10.0 | 34.0 |
| Effects on operating profit | -16.0 | 13.0 | 65.0 |
Target figures of the business companies
[Billion yen]
| FY2002 Results | FY2003 Forecasts | FY2005 Forecasts | ||
|---|---|---|---|---|
| BT | Net sales | 594.7 | 617.0 | 700.0 |
| Operating income | 52.6 | 45.5 | 90.0 | |
| OT | Net sales | 54.1 | 108.0 | 120.0 |
| Operating income | 12.4 | 12.0 | 20.0 | |
| PI | Net sales | 163.1 | 166.0 | 150.0 |
| Operating income | 8.3 | 4.0 | 9.0 | |
| CA | Net sales | 117.6 | 161.0 | 200.0 |
| Operating income | 2.1 | 5.8 | 12.0 | |
| MG | Net sales | 117.4 | 153.0 | 140.0 |
| Operating income | 9.3 | 9.0 | 13.0 | |
| SE | Net sales | 9.7 | 10.5 | 13.0 |
| Operating income | 2.0 | 2.0 | 3.0 | |
| HD | Net sales | 306 | -73.5 | -23.0 |
| Operating income | -9.5 | -9.3 | 3.0 | |
| Total | Net sales | 1,087.2 | 1,142.0 | 1,300.0 |
| Operating income | 77.2 | 69.0 | 150.0 |
Exchange rates: US$=¥115, EUR=¥120
HD: Holdings and other companies including inter-company adjustments
FY2003 net sales forecasts of the business companies include inter-company sales.
The figures exclude equity method goodwill.
Human Resources Planning
- Streamlining human resources by consolidating overlapping functions and companies.
- Shifting human resources to the focusing areas such as sales and R&D including job change.
- Downsizing of the group employees: reducing about 4,500 employees.
Sept. 2003: about 38,300 employees
Mar. 2006: about 33,800 employees
Capital investments and Allocation
- The total investment planned from FY2003 through 2006 (four years) amounts to 162 billion yen.
- Investments will be concentrated on the BT and OT businesses
Capital investment planned by each business and breakdown by ordinary and strategic investments
[Billion yen]
| BT | 65.0 | Ordinary investments | 28.0 |
|---|---|---|---|
| Strategic investments | 37.0 | ||
| OT | 33.0 | Ordinary investments | 3.0 |
| Strategic investments | 30.0 | ||
| PI/CA | 30.0 | Ordinary investments | 20.0 |
| Strategic investments | 10.0 | ||
| MG | 15.0 | Ordinary investments | 6.0 |
| Strategic investments | 9.0 | ||
| Holdings and two common functions companies |
19.0 | ||
| Total | 162.0 |