Konica Minolta has long been a leading company in photo imaging
business covering wide range of imaging from input to output. In
addition, we have provided inspiring products and services by fusing
our unique technologies.
In camera business, we have expanded picture-taking opportunities by
developing innovative technologies such as the worlds first
autofocus cameras. In 1962, our camera, well-accepted for its high
reliability, boarded on the USs first manned spaceship
Friendship 7. Also, ever since introduction of
the worlds first body-integral autofocus SLR camera,
Maxxum/Dynax series, in 1985, SLR cameras have become more popular
among picture-takers, and we have succeeded in selling 16 million units
of interchangeable lenses since then.
However, in todays era of digital cameras, where image
sensor technologies such as CCD is indispensable, it became difficult
to timely provide competitive products even with our top optical,
mechanical and electronics technologies.
In photo business, represented by the silver-halide photography such as
color film and color paper, we have produced Japans first
photographic paper in 1903, and Japans first color film in
1940, thus pioneering joy of photography for more than a century. In
1984, we introduced the worlds first compact washless
photofinishing system known as a minilab system. The minilabs
contributed to the expansion of worldwide photographic market by making
photos closer to consumers and amazingly shortening delivery time.
However, traditional silver-halide photographic market is shrinking
astonishingly by the surge of the worldwide digitization. In such a
changing world, profits for camera and photo businesses worsened in
recent years, and it became necessary to drastically reform business
structure for the further growth of Konica Minolta. Ever since we
decided and announced restructuring guidelines of our businesses on
November 4, 2005, we have been considering practical and detailed plan,
and we would like to announce our decision made today as follows:
In camera business, we have reached an agreement with Sony
Corporation(Sony), having numerous image sensor technologies such as
CCD and CMOS, to jointly develop digital SLR cameras in July 2005. In
order to continue to have our customers use Maxxum/Dynax lenses, and to
maximize possibilities of the optical, mechanical and electronics
technologies accumulated through development of SLR cameras in the
years to come, we came to the conclusion that it was best to transfer
assets concerning camera business to Sony. Since then, we have been
negotiating with Sony, and as a result, we have reached an agreement
with Sony to transfer a portion of assets regarding digital SLR camera
system to Sony*1. In this relation, we have decided to withdraw from
camera business*2, such as film cameras and digital cameras, within
Konica Minolta Group as of March 31, 2006.
Sony is planning to develop digital SLR cameras compatible with
Maxxum/Dynax lens mount system, so that the current Maxxum/Dynax users
will be able to continue to use them with Sonys digital SLR
cameras. In addition, we will consign camera service operations for
Konica Minolta, Konica,Minolta brand cameras and related equipment to
*1 Pease refer to the news release, Partial Transfer of
Assets Related to Digital SLR Cameras , separately announced
*2 Except for digital SLR cameras and interchangeable lenses produced
2) Photo Business
In todays shrinking photographic market represented by color
film and color paper, we have been considering to scale back and to
continue photo business at an appropriate size; however, when we
foresee the photographic market, it is quite difficult to maintain
profitability in this field, and we have decided to withdraw from photo
business. As schemed below, we will, as much as possible, avoid causing
any inconvenience in providing products to our worldwide customers in
the course of withdrawal.
For color film and color paper, while considering our customer needs,
we will step-by-step reduce product lineup and cease our color film and
color paper production by the end of fiscal year ending March 31, 2007.
For minilab business, we will cease production of the system by the end
of fiscal year ending March 31, 2006; however we will have such company
as Noritsu Koki Co., Ltd to provide maintenance and customer services
so as not to cause any inconvenience to our customers.
*1 Please refer to the news release, Consignment of Service
and Maintenance Operations for Minilabs , separately
In line with the above scheme, with consideration to our customers and
regional situations, we will step-by-step reorganize our sales offices
and withdraw from all of our photo sales activities by September 30,
As a part of Konica Minolta Groups restructuring, we will
proceed with withdrawal plan for camera and photo businesses and
aggressively shifted their management resources to other Konica Minolta
Group companies. While continuing this effort, in order to rationalize
a number of employees, we have decided to reduce worldwide Konica
Minolta Group employees by 3,700 from the current 33,000 including
early retirement offering by September 30, 2007*.
The early retirement offering is for Konica Minolta Groups
holding company, five business companies and two common function
companies in Japan.
The expenses to be incurred with this restructuring are already
included in the forecast for fiscal year ending March 31, 2006.
Konica Minolta Group will make our utmost efforts not to cause any
inconvenience to our customer due to the decision we made this time. At
the same time, camera and photo businesses are our traditional
businesses ever since our founding, and we wish to express our
heartfelt appreciation to the worldwide Konica Minolta fans for their
patronage to our products for more than a century.
Konica Minolta Group is aiming to become more powerful corporate group
by swiftly meeting market changes and pursuing selection and
concentration. We will, from now on, be concentrating our
business resources on non-consumer businesses, such as the core
business technologies field, the strategic
optics and display devices field, and the growth
expected medical imaging and
sensing fields, increase competitiveness, and
endeavor to further expand corporate value.
Outline of photo business
||Manufacturing, sale, and related services of
photographic equipment such as digital cameras, film cameras and lenses.
|Fiscal Year ended March 31, 2005
||Net sales: 117,000 million Yen (Forecast for fiscal
year ending March 31, 2006 is 75 million yen)
Operating loss: 7,300 million Yen.
||Manufacturing, sale, and related services of consumer
and commercial photographic materials, injet media and related
|Fiscal Year ended March 31, 2005
||Net sales: 151,500 million Yen (Forecast for fiscal
year ending March 31, 2006 is 110,000 million Yen)
Operating loss: 1,400 million Yen