2011 New Year's Greetings from the President, Masatoshi Matsuzaki
- Striving to Achieve Strong Growth with Greater Sensitivity and Agility -

I am pleased to extend my sincere New Year's greetings.

During 2010, the world economy experienced no further serious recessions despite such negative factors as financial insecurity in Europe and stagnant economic recovery in the U.S.; all the while, emerging economies continued robust growth. On the other hand, the appreciation of the Japanese yen against the euro and the U.S. dollar had no small effect on Japanese companies, including Konica Minolta. Furthermore, some industries in China became wary of their overheated economy and began to adjust their business plans to better meet reality. Against this backdrop, we recognize that the business environment in 2011 will remain uncertain, while the causes for concern regarding the European and U.S. economies will remain present.

Since 2009, the Konica Minolta Group has been promoting measures to achieve strong growth, enhance corporate capabilities, and reform corporate culture in line with our Management Policy <09-10>. This is the first year of the medium-term management plan laid out for the next three years, and one of the goals to be pursued on a Group-wide basis is "to achieve strong growth in a true sense and to expand scale." Specifically, we will achieve greater success in existing business fields by seizing the market opportunities available in emerging economies and other growth opportunities without fail. We will also promote the new business operations that we have developed under a policy to stretch our business to cover a wider range of fields, in order to help to expand the scale of our business. In addition, we will strive to enhance our ability to create profit-making opportunities - not just remaining content with the conventional profit-making model.

Another Group-wide goal to be achieved in the next three years is to "upgrade our level as a global company." The Konica Minolta Group is developing business globally, with more than 70% of sales coming from foreign sources. We have subsidiaries around the world, and 65% of the Group's employees are foreign nationals. Therefore, we are committed to continuing efforts to pursue management optimization with a global perspective to become a "truly global company."

This is the Year of the Rabbit. Rabbits are lovely animals that often appear in fables, and they have an acute sense of hearing that enables them to hear minute sounds, while also having the ability to sense change and run very fast. In 2011, we, at Konica Minolta, also hope to be an "agile company," with the ability to quickly sense changes in society and relevant markets, promptly taking action to respond to such changes to facilitate growth.

In line with our management philosophy, "The Creation of New Value," we, the Konica Minolta Group, will continue to maintain compliance with best practices, helping to realize a better society through our own behavior and the products and services we provide, as we strive to become a company that is supported and regarded as essential by society.

This year, as ever, your continued support for the Konica Minolta Group will be greatly appreciated.