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2015 New Year’s Greetings from Konica Minolta President, Shoei Yamana

Striving for Proprietary Technical Innovation and “Creative Destruction”
for Successful Implementation of Our Growth Strategy
Striving for Proprietary Technical Innovation and “Creative Destruction”
for Successful Implementation of Our Growth Strategy

Happy New Year!

Though the consumption tax hike in April 2014 has caused concern over Japan’s economic prospects, stock prices have remained at high levels, backed mainly by the economic policies launched by the Japanese government and the Bank of Japan, as well as favorable exchange rates. However, true revitalization of the Japanese economy cannot be achieved without successful implementation of a growth strategy. In this sense, I think we will approach a crucial stage in 2015 where the ability of Japan to increase its presence in the global economy is tested. While I hope the Japanese government will take positive measures for reforms such as deregulation, I also believe that private companies should join forces for successful implementation of a growth strategy.
With this understanding, at Konica Minolta we are determined to continue group-wide efforts to create new growth engines and deliver greater value to customers. In April 2014, we announced a three-year medium-term business plan, TRANSFORM 2016. Our determination is precisely summarized in the concept of transformation presented in this plan. In 2014, we steadily achieved results in our efforts to transform our business portfolio in line with the basic policy of this plan: to realize sustainable profit growth; to transform into a customer-centric company; and to establish a strong corporate structure.

We will continue our efforts toward transformation in 2015, the second year of the medium-term business plan, by taking bold steps to accelerate the implementation of a growth strategy in each business category along with category-specific measures. Among other things, we should be able to offer products and services developed with our proprietary technologies, thereby differentiating ourselves from competitors, and establishing competitive advantage. Another equally important thing is to bring about “creative destruction.” No business model can be sustained forever. I believe that companies should be able to see each business operation from a broader perspective and, even if it is profitable at the time, have the courage to temporarily destroy an existing business structure if doing so is necessary to develop a new business model. We will accelerate business development by leveraging our human assets on a global basis, while taking aggressive and decisive action for technical innovation. On the other hand, we are aware that we cannot satisfy customer needs in all areas of business and on a timely basis if we stick to our proprietary technologies and know-how only. Therefore, we will enhance our ability to work in alliance with reliable partners outside of the Konica Minolta Group to bring ideal solutions to our customers more promptly. At the same time, we are aware of the necessity of enhancing the significance and value of our business for society and developing human assets capable of contributing to social good if we are to ensure the sustainable growth of our company. We will also strive to increase our earning capacity or the ability to make profits, so that we can invest substantially in our future growth and also deliver appropriate returns to our shareholders. We will make consistent efforts toward structural reform and greater efficiency to largely enhance our productivity.

Since FY 2014, the Konica Minolta Group has been working seriously to reestablish our management philosophy and ingrain the philosophy in all our employees (more than 40,000 people). In particular, we have placed importance on putting into practice the 6 Values, which are our credo and decision-making criteria, thereby changing the way we act in our daily business activities and enhancing our executive ability to deliver greater value to customers.

In concluding my greeting, I would like to offer my sincere wishes for your health and happiness this year. Your continued encouragement and support to the Konica Minolta Group is very much appreciated.