quest to become an innovative enterprise group that ......manufacturing, sale and related services...

Group Formation

Quest to Become an Innovative Enterprise Group that Continues to Create Inspiring Products and Services in the Field of Imaging.Konica Minolta Group consists of five business companies and two common function companies with a holding company.While fusing together their respective strengths, we will demonstrate synergies as an innovative enterprise group and create new value demanded by the market.

HoldingCompany

It governs the entire Group as the holding company; it is responsible for the planning and promotion of management strategies for the Konica Minolta Group, which consists of five business companies and two common function companies, and for the audit and administration of the Group’s management.

Corporate Governance

General Meeting of Shareholders

Election

ElectionAudit

AuditCommittee*

CompensationCommittee*

NominatingCommittee*

Konica Minolta Group adopts a company-with-committee

system. The aim is to enhance its managerial supervision

functions, accelerate the managerial decision-making

process and the execution of operations, and build a fair

and highly transparent management framework. The

Board of Directors does not make decisions on the

execution of daily operations, but engages in appropriate

management by concentrating on the managerial

supervision functions and on decision-making of basic

management policies and other essential issues.

Executive Officers, who are delegated the authority to

execute operations, assume full responsibility for

businesses assigned to them individually under the

leadership of the President & CEO, and strive to improve

operating revenue. No Director who concurrently serves

as the CEO is appointed to a member of the Nominating

Committee (which decides on candidates for Directors),

the Compensation Committee (which decides on the

remuneration of Directors and Executive Officers) or the

Audit Committee. Outside directors account for the

majority of members of the three committees, in the

interests of ensuring transparency of management.

Board of Directors

Chief Executive Officer

Executive Officers

Profile of Konica Minolta Group

Location of head officeBusiness activities

Number of employees

1-6-1 Marunouchi, Chiyoda-ku, TokyoHolding company (Planning and promotion of the Group’s management strategies, audits of the Group’s management and other management & administration tasks of the Group)Number of employees: 90 (as of March 31, 2005)

Each of the three committees consists of at least three Directors. Outside Directors constitute the majority of members.

Role of CommitteesNominating Committee: Nominates candidates for Directors for the next term, to be elected at the general meeting of shareholders.Compensation Committee: Decides the remuneration of Directors and Executive Officers.Audit Committee: Performs management audits in place of auditors under the conventional system.

*

:

:

:

:

:

:

:

:

:

Outstanding sharesFiscal Year EndNumber of employees (consolidated)

Established

Paid-in Capital

Consolidated sales in FY2004

December 22, 193637,519 million yen (as of March 31, 2005)

1,067.4 billion yen

531,664,337 shares (as of March 31, 2005)March 31Approx. 33,400 (as of March 31, 2005)

11

BusinessCompanies

We have spun off each and every business into a separate company, and delegated the authority required for executing operations to each business company. This has enabled us to build a framework characterized by flexible and speedy operational execution and business promotion.

Common FunctionCompanies

We have consolidated Group-wide functions (such as technological development functions and common service functions) into two common function companies. This has enabled us to promote businesses more efficiently.

::

:::

::

:::

::

:::

::

:::

::

:::

::

::

::

::

1-6-1 Marunouchi, Chiyoda-ku, TokyoManufacturing, sale and related services of office equipment (copiers, digital MFPs, printers, facsimile machines, micrographics systems, etc.) and related supplies.500 million yen564.8 billion yenApprox. 19,600 (as of March 31, 2005)

2970 Ishikawa-machi, Hachioji, Tokyo Manufacturing and sale of optical products (optical pickup lenses, microcamera units, etc.), related products and electronic materials (such as TAC films).500 million yen91.7 billion yenApprox. 2,600 (as of March 31, 2005)


Paid-in capitalConsolidated sales in FY2004Number of employees (consolidated)

1-26-2 Nishishinjuku, Shinjuku-ku, TokyoManufacturing, sale and related services of digital cameras, film cameras, consumer & commercial photographic materials, ID photos, inkjet media and related equipment.500 million yen268.5 billion yen Approx. 6,100 (as of March 31, 2005)



1-26-2 Nishishinjuku, Shinjuku-ku, TokyoManufacturing, sale and related services of film and processing equipment for medical & graphic imaging purposes.500 million yen129.9 billion yenApprox. 2,700 (as of March 31, 2005)



3-91 Daisennishimachi, Sakai, OsakaManufacturing and sale of measuring instruments for industrial, photographic and medical purposes.495 million yen5.3 billion yen Approx. 230 (as of March 31, 2005)




Paid-in capitalNumber of employees (consolidated)

1 Sakura-machi, Hino, TokyoConstracting of R&D and design, promotion of commercialization of new technologies, and provision of intellectual property management/administration services within the Group.50 million yenApprox. 600 (as of March 31, 2005)


Paid-in capitalNumber of employees (consolidated)

2970 Ishikawa-machi, Hachioji, Tokyo Provision of various management support and indirect function services, such as production facilities, logistics/procurement, environment/safety, export management, general affairs, personnel affairs, accounting, etc. within the Group.495 million yenApprox. 1,400 (as of March 31, 2005)



12

Offering Document Solutions for Evolving Office Environments Focused on Color, Digitalization, High-speed and Networking.

Konica Minolta Business Technologies, Inc. runs an office equipment business, which is the Group’s core business. We provide the light production printing, office and Small Office Home Office (SOHO) markets with our copiers, digital multi-functional peripherals (MFPs), printers and other office equipment that make the most of our cutting-edge optical and imaging technologies.The growth in the networking of businesses in recent years has spurred the demand for office equipment with greater efficiency and coordination performance. This has prompted us to enhance software development, including the development of applications which link together various kinds of equipment, and to offer security systems indispensable in network environments. We have realized a business platform suitable for the age of ubiquitous computing.We will continue to promote the “genre top strategy” aimed at establishing our presence in each product field as an industry leader, by concentrating our resources in the increasingly flourishing area of color printing and by providing value-added products with excellent image quality which draw upon our strengths.

Sales : Konica Minolta Business Solutions U.S.A., Inc.Konica Minolta Printing Solutions U.S.A., Inc.Konica Minolta Business Solutions Europe GmbHKonica Minolta Printing Solutions Europe B.V.Konica Minolta Business Solutions Japan Co., Ltd.Konica Minolta Printing Solutions Japan Co., Ltd.

Manufacturing: Konica Minolta Business Technologies Manufacturing (HK) Ltd.Konica Minolta Supplies Manufacturing Co., Ltd.Konica Minolta Business Technologies (WUXI) Co., Ltd.

M a j o r A f f i l i a t e s

President Yoshikatsu OtaPresident Yoshikatsu Ota

Group Formation

13

Multi-functional Peripherals (MFPs) Pursuing Advanced Imaging Markets Ranging from General Office to Light Production Printing.Konica Minolta’s digital MFPs branded the “bizhub” series are equipped with multiple functions (copying, printing, scanning, etc.), and supports businesses by playing a key role in the network environment of offices. For example, they can consolidate the administration of office equipment connected to a network by using a series of network management software programs, manage and share various documents in an integrated fashion, and offer advanced security functions. They are also equipped with an integrated firmware (control software) which standardizes the settings and the user interface of different types of equipment and makes it easier to develop software. Their color output boasts the highest image quality and speed in the industry, and leads the office equipment market where the boundary between color and monochrome products is blurring. These MFPs also substantially help improve productivity and creativity in the office.In the light production printing market, one of our important target markets, we help improve operational efficiency by providing high-speed high-definition monochrome copiers and MFPs with superior durability and which are best suited to print on demand (POD).

Laser PrintersAdvanced Generation of Compact, Lightweight and High-performance Color Laser Printers: Creating New Markets.The market for color laser printers continues to expand, fueled by the rapid shift of business documents from monochrome to color. Konica Minolta’s array of products feature both superb image quality and compact design, as demonstrated by the “magicolor 2400” series, which have won high acclaim including receiving the 2005 “Pick of the YEAR” award from Buyers Laboratory Inc.* (USA). They are used in a wide range of environments, from general offices to homes. We plan to further tap into markets in Europe and the United States, where we have already established a strong presence. We will develop the markets in China, where the market for color printers is rapidly expanding, and in Japan, where demand is increasing in the SOHO market.* Buyers Laboratory Inc.: An independent evaluation organization specializing in office equipment for

business users in the United States.

Full color MFP: bizhub C450

A4 color laser printer:magicolor 2430 DL

High-speed monochrome copier/MFP:bizhub PRO 1050

Polymerized toner

Conventional toner

“Next-generation Toner”: Pioneering into the Future of Rich Imaging.

T E C H N O L O G Y F O R T H E F U T U R E

Konica Minolta adopts proprietary “polymerized toners (SIMITRI Toner)” for new products in all segments, i.e., copiers, MFPs and printers, including color models. Polymerized toners are characterized by the smaller diameter of toner particles and the greater uniformity of their size and shape formed by chemical reactions in the toner production process. These characteristics make it possible to print fine lines, small text, photos and graphics in smooth halftones with enhanced sharpness. Their image quality is high and printouts are sharp especially in color. Mixing wax in each toner particle allows oil-free fixing, making it possible to write on paper and even paste sticky notes on it. Konica Minolta’s polymerized toner has been highly praised as an environmentally-friendly toner of the next generation, as the level of carbon dioxide (CO2), nitrogen oxide (NOx) and sulfur oxide (SOx) released in the toner manufacturing process is approximately 40% lower than conventional toners.

P r o d u c t s

President Yoshikatsu Ota

14

Manufacturing: Konica Minolta Components Co., Ltd.Konica Minolta Opto Products Co., Ltd.Nankai Optical Co., Ltd.Konica Minolta Glass Tech. Co., Ltd.Konica Minolta Opto (DALIAN) Co., Ltd.Konica Minolta Opto (SHANGHAI) Co., Ltd.

A f f i l i a t e s

Group Formation

Meeting Customers’ Expectations through Synergies of Advanced Technologies as the World’s Mightiest Optical Devices Manufacturer accelerating Market Growth.

Konica Minolta Opto, Inc. has been engaged in the optics business relating to optical pickup lenses, lens units and microcamera units, and in the optical electronics materials (OE) business specializing in triacetyl cellulose (TAC) films for protecting polarizers used as core components of LCD displays. Both are positioned as strategic businesses within the Konica Minolta Group, targeted at the expanding digital consumer electronics market.In order to meet the growing expectations in the market, our policy is to maintain our reputation as “the world’s mightiest optical devices manufacturer.” We will accomplish this by further refining our proprietary optical, image evaluation and high-precision machining technologies and thin film creation technologies, and by offering advanced, highly value-added optical units and electronic materials through the synergies of various technologies, including the fusion of our superior plastic lens technology and glass molded lens technology.We are committed to fulfilling our mission as the global market leader, by further promoting technological innovation and by pursuing sophisticated technological synergies based on enhanced cooperation between companies in the Konica Minolta Group.

President Takashi MatsumaruPresident Takashi Matsumaru

15

Lens unit Microcamera unit

OpticsAdvanced Optic Products: Derived from the Synergies of Core Technologies.In the optics business, we have been developing pickup lenses for DVD, MD and other optical disk drives and players, since we successfully became the world’s first in commercializing aspherical plastic lens for CDs. Today, our products backed by our proprietary optical design technology, precision mold machining technology and other cutting-edge technologies have the largest share in the global market. We are also actively expanding our business in pickup lenses for next-generation optical disks using blue laser diodes. In the field of microcamera units for mobile phones with camera functions, noteworthy for their ever-improving image quality and functions, we have developed highly value-added micro lenses with superior light uniformity and color reproduction properties. Our other developments include pickup prisms, lenses for laser printers, lens units for digital cameras, glass hard disk substrates and other products with high precision requirements, winning the confidence of a wide range of customers.

Optical Electronics Materials (OE)Materials Technology: Our Fruit in the Ever-expanding LCD Display Market.In the OE business, we are developing 40-micron thin TAC films for protecting LCD polarizers, by taking advantage of our extensive experience in film production technology. We are also further expanding our production capacity to meet the increasing demand for TAC film spurred by the penetration of LCD displays and the growth of the widescreen LCD market. We will continue making R&D efforts for more advanced electronic materials, capitalizing on our superior core technologies, including thin-film and coating technologies.

P r o d u c t s

Integrating Advanced Technologies Supporting World-standard High-quality Lenses.


Konica Minolta’s pickup lenses for optical disks boast a dominant market share. Their quality rests on optical design technology—the fruit of all-out efforts made by the Konica Minolta Group. Such advanced, highly value-added optical products could not have been produced consistently without Konica Minolta’s proprietary technologies, such as the plastic molding technology (for high-precision shapes and forms which are indispensable in the production of ultra-precise optical elements such as lenses and prisms), precision mold machining technology (for making smooth surfaces), optical materials evaluation technology, measurement & evaluation technology (for optical performance), and optical thin film (coating) technology. Our efforts are directed at developing cutting-edge technologies by further improving these technologies, including blue laser pickup lenses with stricter precision requirements.

Multiple AF unit

President Takashi Matsumaru

16

Creating a New World of Photo Imaging for Greater Dreams and Inspiration with Products and Services Fit for the Digital Network Society.

Ways to enjoy personal photography have been diversifying since the Internet and camera-equipped mobile phones became a part of our lives. Within the Konica Minolta Group, Konica Minolta Photo Imaging, Inc. is the sole supplier of products and services for individual consumers. We provide a wide range of high quality products and services, including digital cameras, online printing services, image storage, various printing services, minilab and ID photos drawing upon our extensive experience in advanced optical technologies and image processing technologies. We are expanding the possibilities of the world of digital photo imaging-from image input to output-to boost the value of the Konica Minolta brand.We are committed to pursuing customer satisfaction and proposing a new world of photo imaging for new dreams and inspiration, by providing highly value added, unique products and services fit for the digital network society, together with silver halide film and cameras cherished by customers worldwide.

President Tsuyoshi MiyachiPresident Tsuyoshi Miyachi

Sales: Konica Minolta Photo Imaging U.S.A., Inc.Konica Minolta Photo Imaging Europe GmbHKonica Minolta Photo Imaging (UK) Ltd.Konica Minolta Photo Imaging France S.A.S.Konica Minolta Marketing Corporation <Japan>Konica Minolta Photo Solutions Co., Ltd. <Japan>Konica Minolta Photo Imaging (HK) Ltd.Konica Minolta Photo Imaging Asia H.Q. Pte. Ltd.Konica Minolta Photo Imaging (SHANGHAI) Co., Ltd.Konica Minolta Photo Imaging Australia Pty. Ltd.


Group Formation

17

President Tsuyoshi Miyachi

“Anti-Shake Technology” expanding the Frontiers of Imaging.

Digital CamerasA Provider of High Value-added Products Featuring Unique Technology.In the digital camera market, Konica Minolta offers a lineup of high value-added products featuring unique technology. One of such unique technologies is our proprietary camera-shake compensation mechanism called “Anti-Shake Technology.” Our digital single-lens reflex (SLR) camera “DYNAX 7D*2” (winner of the Camera Grand Prix*1 2005) and its sister model “DYNAX 5D” both have the Anti-Shake technology built into their respective bodies, to compensate for vibrations and movements in all DYNAX lenses.*3 Our compact digital camera “DiMAGE X1” has a stylish slim body and boasts advanced functionality, by combining a “flat zoom” mechanism (zero lens protrusion when zooming in) with a new Anti-Shake mechanism tailored to its slim shape.

*1 Camera Grand Prix: An award presented by the Camera Press Club to the best model released in Japan during the year.

*2 “DYNAX” series SLRs are marketed as the “Maxxum” series in North America and the “ ” series in Japan and China.

*3 Excluding AE Macro Zoom 3X-1X

Digital PhotographyDigital Photo Services Providing Diverse Solutions.Konica Minolta offers a wide range of digital photo services in the ever-expanding world of digital imaging. We are rolling out various services and tools for enjoying digital images. For example, we provide “HOT ALBUM” in Japan, a tool that enables users to easily organize images and videos taken by digital cameras and store precious images safely. In addition, we are expanding our printing and image storage services with the use of the network environment and the internet in Japan and overseas countries.In the minilab field, we offer diverse services via networks, centering on a fully digital minilab equipped with a newlydesigned exposure engine. We also provide self-service-type photo printers for convenient image printing, and inkjet papers enabling photo-grade, high-quality prints at home. These are only some of our diverse solutions to the world of consumer imaging.

OtherRunning Various Photo-related Businesses Backed by Advanced Technological Prowess.Konica Minolta’s silver halide technology is backed by the established and superior technological prowess. It is applied to films and photo prints, and even digital camera photography, etc. Additionally, in the ID photo business (our market share is about 50% in Japan), we promote aggressive digitalization efforts. We are also actively expanding into the business of photo ID cards-noteworthy for their growing importance in personal information management.

The Konica Minolta “DYNAX 7D” is the world’s first digital SLR with interchangeable lenses and a body armed with a built-in camera-shake compensation mechanism, called “Anti-Shake Technology.” Unlike lens-based optical systems, Anti- Shake moves the CCD within the camera body to create sharp handheld images. Without the need of intrusive equipment such as a flash or tripod, Anti-Shake assists photographers in demanding situations in low-light, telephoto, or macro photography. Anti-Shake compensates for both small hand vibrations and larger body movements. The “Anti-Shake Technology” won the 2004-2005 European Photo Innovation of the Year award from EISA* for expanding the frontiers of imaging.

* EISA: European Imaging and Sound Association. An organization consisting of leading magazines specializing in photography, video, audio, etc. in Europe (50 magazines in 20 countries).

CCD-shift type Anti-Shake mechanism

P r o d u c t s

Storage tool for digital images: HOT ALBUM

Digital SLR camera: DYNAX 7D

Compact camera: DIMAGE X1


18

Creating New Value by Providing Solutions based on Cutting-edge Image Processing Technologies in the Increasingly-digitized Medical and Graphic Imaging Fields.

Konica Minolta Medical & Graphic, Inc. runs its business with the mission to “provide equipment, network systems and consumable that enable high-quality imaging and help improve the quality of medical systems and graphics culture.” Driven by the rapid progress of digitization in recent years, we have been concentrating our efforts in the business of high-value-added solutions in both medical and graphics imaging fields. In the medical imaging field, our business has a vision for future medical systems, including building regional medical network systems, telediagnosis, etc. based on high-resolution digital image readers and output devices that draw upon our reputable technology and track record in radiographic image processing. We are also promoting the development of pharmaceutical products for diagnostic purposes, considering the possibilities of life science. In the graphic imaging field, we provide digital color-proofing systems, etc. that take advantage of our advanced technology and expertise, and aggressively make efforts in the development of next-generation CTP (computer to plate) systems, whose market is rapidly growing.We will continue to release cutting-edge technologies in both medical and graphic imaging fields and offer more high-quality products and services.

President Kiyofumi TanidaPresident Kiyofumi TanidaPresident Kiyofumi Tanida

Sales: Konica Minolta Medical Co., Ltd.Konica Minolta Graphic Imaging Japan Co., Ltd.Konica Minolta Medical & Graphic Technosupport Co., Ltd.Konica Minolta Repro Co., Ltd.Konica Minolta Technoproducts Co., Ltd.Konica Minolta Graphic Imaging U.S.A., Inc.Konica Minolta Medical Imaging U.S.A., Inc. Konica Minolta Medical & Graphic Imaging Europe GmbHKonica Minolta Medical & Graphic (SHANGHAI) Co., Ltd.


Group Formation

19

Mammography unit: Mermaid

President Kiyofumi Tanida

Phase Contrast Technology: Paving the Way for Early Detection of Breast Cancer.


Breast cancer is a disease with a better chance for a cure if detected and treated early. Detection of cancer in the microscopic stage has traditionally relied on analog photography. Digital diagnosis based on phase contrast technology is effective in showing the outline of objects sharply, but its application to the human body was previously too difficult, partly due to the massiveness of the machine. Konica Minolta has pioneered the development of the world’s first mammography unit that applies this technology to medical mammograms. The unit has paved the way for digital diagnosis with minimal burden on the patient, as it can generate high-resolution images (approx. 70 million pixels) by combining a high-precision image reader and an output device. We also encourage women to have a healthy future through our sponsorship of the Pink Ribbon Campaign,* aimed at promoting the early detection and treatment of breast cancer.

* Pink Ribbon Campaign: Enlightenment activities aimed at encouraging early detection, diagnosis and treatment of breast cancer.

Digital color-proofing system:Digital Konsensus Pro

Medical ImagingHelping to Build New-generation Diagnosis Systems with Reliable and Proven Products.Practitioners have placed a great deal of confidence in Konica Minolta’s medical imaging products since we released the first made-in-Japan X-ray film. Prompted by the progress in digitization and networking in recent years, we have developed X-ray image digitization, storage & transmission systems and enabled open network systems and efficient image management. Practitioners speak highly of our high-resolution diagnostic imaging systems, especially our digital image readers (direct digitizers) in the “REGIUS” series, and our digital image output devices (laser imagers) in the “DRYPRO” series. We also contribute to building next-generation diagnosis systems by developing Picture Archiving and Communication System (PACS) and other such software, as well as promising products linked with electronic clinical records. In the field of pharmaceuticals for diagnostic purposes, we contribute to high-quality medical care by providing intravascular contrast agents for X-rays and develop a genetic testing system for infectious diseases in collaboration with another company. Graphic ImagingLeading the Graphic Imaging Market by Providing Digital Solutions.In the field of graphic imaging, the digitization trend has increased the need for further improvements in quality and work efficiency in the production of graphics. Our customers highly praise the “Konsensus” series, for setting the standard for the new generation of color-proofing output systems. These systems can directly output digital data for color-proofing purposes, and can improve operational efficiency, cut costs and reproduce high-quality images. For plate making, we help improve productivity by making aggressive efforts in the business of computer to plate (CTP) systems, which expose digital data of text, images, etc. directly to plate materials without outputting them to films.

P r o d u c t s

Digital image reader: REGIUS Vstage MODEL 190

20

Group Formation

Konica Minolta’s measuring instruments are the fruit of cutting-edge optical and image-processing technologies. They help improve quality control and precision in various industries—for example, our display color analyzers for measuring the color and luminance of displays, and spectrophotometers, colorimeters and other color measuring instruments used for essential color management in many manufacturing plants play important roles in supporting various manufacturing industries, and together form the core of our company’s business.Our efforts are currently focused on the field of 3D measurement. We are implementing new products in this field by drawing upon our proprietary technologies, as demand is expected to rise, for industrial applications requiring high precision and advanced functions in particular, and also for medical and academic applications which already utilize our instruments.In addition to the above, our customers highly praise our medical measuring instruments, photometers and various other products that take advantage of optical technologies. We will continue to provide solutions to meet diverse needs through ever more advanced sensing technology and high-value-added services.

Helping to Improve Quality Control and Precision Essential for Various Industries by Offering High-Precision Measuring Instruments Based on Optical & Image-Processing Technologies.

Display Color Analyzer: CA-210

P r o d u c t s

Spectrophotometer: CM-2600d

Non-Contact 3D digitizer:VIVID 9i/VI-9i

3D Measurement Providing High-Precision, High-Speed, Non-Contact Scanning With Simple Operation.3D digitizers scan three-dimensional objects and import the 3D data into computers. They fulfill customers’ purposes in a wide range of fields, thanks to their ability to perform high-precision, high-speed scanning of three-dimensional shapes without contact through simple operation. Our future efforts will be directed at industrial applications such as reverse engineering, design verification and quality inspection, in addition to medical & academic research, 3D archiving and computer graphics production.

Color MeasurementHigh-Precision Color Measurement Technology: Playing an Active Role in All Sectors of Industry. The expanding market for widescreen TV sets (plasma, LCD, etc.) and LED products is pushing up the demand for display color analyzers used for measuring the color of light sources. Konica Minolta’s products can measure color, luminance and white balance with high precision for the inspection and adjustment of white balance and contrast. As color reproduction is a vital element for manufacturers engaged in the fierce competition over image quality, our products provide powerful assistance to manufacturers in the areas of R&D and quality control. Our spectrophotometers and colorimeters are capable of measuring and quantifying differences in color shades more subtle than the human eye can distinguish accurately. For this reason, they are widely utilized for measuring the color of objects by R&D, quality control, distribution and sales staff in many manufacturing sectors where color management is indispensable, including the automotive, paint, plastic, textile, construction materials and food industries.

Other AreasProviding Products based on Optical Technologies in Various Fields.We provide the medical field with testing equipment that impose minimal burden on patients. This includes the pulse oximeter, which detects oxygen saturation in the blood simply by projecting light on the human body, and the compact Jaundice Meter, which can test newborn babies for jaundice without taking blood samples. Other Konica Minolta’s products are utilized in a wide range of fields, notably photographic meters, which enjoy a high reputation among professional photographers, and radiation thermometers.

Pulse Oximeter: PULSOX-300 i

21

President Hiroshi FurukawaPresident Hiroshi Furukawa President Mitsuharu OuraPresident Hiroshi FurukawaPresident Hiroshi Furukawa President Mitsuharu Oura

Promoter of CSR striving to Maximize Corporate Value of the Group as a Whole.In recent years, companies have been urged to fulfill their CSR, including establishing corporate governance and compliance frameworks and tackling employment, human rights and environmental issues. The Konica Minolta Group also attaches much importance to CSR and strives to carry out business activities harmoniously in all aspects, including being socio-economically sound, and giving due consideration to environmental protection. As the driving force behind the Group’s CSR activities, Konica Minolta Business Expert, Inc. spreads the idea of CSR, the action policies, etc. throughout the Group. It also builds frameworks and gives guidance, assistance, etc. to implement the idea of CSR concretely, in order to improve the corporate value of the Group as a whole. We also actively disclose information and facilitate communication for the Konica Minolta Group to demonstrate our accountability to a wide range of stakeholders, including producing and issuing CSR reports.

Assisting Improvements in the Group’s Managerial Efficiency by Developing Information Infrastructure and Training Personnel.We are promoting the development of an extensive IT network environment to serve as an information infrastructure supporting the Group’s management. Our priorities include “building a system for sharing knowledge and information on a Group-wide scale” and “digitizing business procedures to shorten the time taken from R&D to sales.” We train business experts in each division, improve the efficiency of practical operations by taking advantage of IT communications, and provide support to indirect administration divisions. All of our efforts described here help maximize the Group’s managerial efficiency.

Konica Minolta Sogo Service Co., Ltd.Konica Minolta Logistics Co., Ltd.

Konica Minolta Information System Co., Ltd.Konica Minolta Engineering Co., Ltd.

A f f i l i a t e s

Konica Minolta Business Expert, Inc. is in charge of administration tasks, such as those concerning personnel affairs, accounting, logistics, production facilities, procurement, environment/safety and information systems in the Konica Minolta Group. It also plays an important role in spreading the concept of corporate governance (a basic element of activities relating to Corporate Social Responsibility (CSR)) throughout the Group. In other words, our mission is to help improve corporate value and management efficiency by supporting the business activities of companies within the Group from various angles. To fulfill this mission, we direct our efforts at developing strategies to practice and implement CSR, and training business experts capable of providing more specialized services, such as building the corporate infrastructure including personnel, facilities, finance and information frameworks. Each and every one of our staff strives to advance and share his/her expertise through daily endeavors and by close communication with the Group’s companies. We are also reinforcing our alliances with specialty companies outside the Group, in an effort to improve service quality and mobility.We will establish a business model as a shared service provider based on a new concept through such efforts. Based on this, we will strive to become an independent company and create Group-wide synergies by aggressively expanding sales outside the Group and by feeding back the new externally-acquired expertise to the Group.

A Team of Experts in Shared Administration Functions for Corporate Activities, Helping to Maximize Corporate Value and Management Efficiency by Providing High-value-added Services to Both Inside and Outside Konica Minolta Group.

22

President Hiroshi Furukawa President Mitsuharu OuraPresident Mitsuharu OuraPresident Hiroshi Furukawa President Mitsuharu OuraPresident Mitsuharu Oura

President Masatoshi MatsuzakiPresident Masatoshi Matsuzaki

Deeply Plowing and Advancing Basic Technologies Common to Business Units.Konica Minolta Technology Center, Inc. is deeply plowing and advancing basic technologies common to business companies within the Konica Minolta Group, based on the core technologies i.e., materials, optical, nano-fabrication and imaging technologies. We actively pass on technologies that directly lead to product development to each business company, in an effort to boost the technological capabilities of the Konica Minolta Group as a whole.

Developing Cutting-edge Technologies Cutting Across Individual Business Units and Incubating New Businesses.Our efforts are directed at developing element technologies and composite technologies with the potential of turning into a next-generation platform cutting across individual business units, based on our existing technology portfolio. Aggressive efforts are also being made to incubate new businesses using established technologies, the first being Konica Minolta IJ Technologies, Inc., a company established in January 2005 to run businesses focused on inkjet technology. We are also working on technological developments with business potential, including OLED (Organic Light Emitting Diode) materials for display purposes, which are notable for their promising range of applications, and display components which draw upon materials and thin-film coating technologies, and Intelligent Eye, a remote monitoring system with functions similar to the human eye that can recognize and identify the shape and quantity of objects.

Group Formation

Konica Minolta Technology Center, Inc. helps business companies within the Konica Minolta Group to develop products by advancing basic technologies common to their businesses. We also promote activities cutting across individual business units, including developing new technologies and incubating new businesses with a vision for the future.One of our crucial missions is to promote intellectual property strategies and to function as a design center. We secure and utilize intellectual property rights in the element technology stages and build designs based on forecasts of society, and carry out other such activities from a Group-wide perspective.Now, the world is about to experience dramatic changes, in face of growing environmental awareness and the emerging ubiquitous computing society. With the mission to contribute to social progress through the practical application of research accomplishments, we are committed to serving as the “driving force” behind the Konica Minolta Group, to make further progress in the world of imaging.

Creating the Future of Imaging by Promoting Cutting-edge Technological Research and New Business Incubation as Konica Minolta Group’s R&D Center.

Imaging Culture Research Institute: Pursuing Imaging in the Ubiquitous Computing Society.

The Imaging Culture Research Institute was established for the purpose of conducting studies and research on changes in lifestyles and business-styles in the forthcoming ubiquitous imaging society. The Institute conducts research on “Koto Idea” focusing on consumers’ lifestyles and values rather than objects, invites outside researchers to contribute their research papers and engages in joint research. Its aim is to create new value bringing fresh inspiration to customers, by making recommendations based on the accomplishments of such research that will lead to new technological developments and business expansion within the Group.

Konica Minolta Technosearch Co., Ltd. Konica Minolta Technology U.S.A., Inc.

A f f i l i a t e s

23

President Masatoshi Matsuzaki

President Akiyoshi Ohno

P r o d u c t s

Inkjet Print HeadsFlexibly Dealing with Various Industrial Applications based on Proprietary Inkjet Technologies.Konica Minolta’s proprietary high-performance piezo inkjet head is one of the company’s most competitive products. Unlike thermal systems which apply heat, it applies a voltage to change the shape of the piezo element to push the ink out. This mechanism allows the use of various types of inks, including solvent, oil-based and UV curing inks. Our lineup of print heads is wide ranging, from those for high-speed printers for large-sized papers to those for high-resolution printers of professional-printing grade, and are supplied to and utilized in a wide range of industries and sectors.

Inkjet Textile PrintersAdvanced Textile Printing Technology: For Large-variety, Small-lot Production.Digital inkjet textile printing systems are attracting a great deal of attention for their innovative dyeing technology, which eliminates the need for plate-making and mixing of color pastes to enable the speedy production of a wide range of products in small lots. Textile printer “Nassenger V” adopts this technology to enable high-speed processing and to bring out the sharpness and high concentration of colors, with its newly developed, small-droplet, high-density, multiple-nozzle inkjet head, used in combination with durable textile inks with high color saturation properties. It draws upon our proprietary materials technology and color management technology to reproduce smooth gradations and subtle variations in color tones in a wide range of fabrics of various thickness, even stretch fabrics used in swimming costumes. We are now promoting this product in Italy and other markets in Europe, as well as in Japan.

Expanding Our Business in the Rapidly-expanding Industrial Inkjet Printers Market, Capitalizing on Materials Technology and High-precision Machining Technology.

Konica Minolta IJ Technologies, Inc. was established in January 2005 as the first business company spun off from Konica Minolta Technology Center, Inc., whose mission includes the fostering of next-generation businesses. With inkjet technology at the core, we provide inkjet print heads according to customers’ diverse needs, by taking advantage of proprietary chemical & ink technologies acquired through the development and production of photothermographic materials. We also run a textile printer business utilizing these technologies. Printers for large-sized papers for printing the graphics of advertising displays and construction materials currently dominate the high-speed, highresolution inkjet printers market. They are expected to have a wide range of industrial applications in the future, including display production and biotech applications. We are committed to promptly meeting customers’ diverse needs by making the most of our proprietary technologies.

Print head

Textile printer: Nassenger V

Location of head office

Business activities1 Sakura-machi, Hino, TokyoManufacturing and sale of print heads (for industrial inkjet printers) and textile print systems.

:

:

Paid-in capital

Number of employees (consolidated)

10 million yenApprox. 120 (as of March 31, 2005)

:

:

24

25

Affiliates of Konica Minolta Holdings, Inc.

Affiliates of Konica Minolta Business Technologies, Inc.

JapanKonica Minolta IJ Technologies, Inc.

Konica Minolta Planetarium Co., Ltd.

Asia/PacificKonica Minolta (CHINA) Investment Ltd.

North and South AmericaKonica Minolta Holdings U.S.A. Inc.

Konica Minolta Headquarters North America, Inc.

JapanKonica Minolta Business Solutions Japan Co., Ltd.

Konica Minolta Printing Solutions Japan Co., Ltd.

Konica Minolta Supplies Manufacturing Co., Ltd.

Toyohashi Precision Products Co., Ltd.

Sankei Precision Products Co., Ltd.

Konica Minolta Supplies Manufacturing Kansai Co., Ltd.

F&M Imaging Technology Co., Ltd.

Konica Minolta Techno Tokyo Co., Ltd.

Konica Minolta Software Laboratory Co., Ltd.

Asia/PacificKonica Minolta Business Technologies Manufacturing (HK) Ltd.

Konica Minolta Business Technologies (WUXI) Co., Ltd.

Konica Minolta Consulting (SHENZHEN) Co., Ltd.

Konica Minolta International Trading (SHANGHAI) Co., Ltd.

Konica Minolta Business Solutions (WUHAN) Co., LTd.

Konica Minolta Business Solutions (HK) Ltd.

Konica Minolta Business Solutions (S) Pte. Ltd.

Konica Minolta Business Solutions (M) Sdn. Bhd.

Konica Minolta Business Solutions Australia Pty. Ltd.

Konica Minolta Printing Solutions Asia Pty. Ltd.

Konica Holdings Australia Pty. Ltd.

A.B.E. Rentals Pty. Ltd.

K.B.A. Properties Pty. Ltd.

Apeco of Australia Pty. Ltd.

North and South AmericaKonica Minolta Business Solutions U.S.A., Inc.

Konica Minolta Printing Solutions U.S.A., Inc.

Konica Minolta Systems Laboratory, Inc.

Albin Industries, Inc.

Alpha Omega Business Systems Inc.

Alternative Business Systems, LCC

Business Systems, Inc.

Frontier Business Systems, Inc.

Konica Computer Solutions, Inc.

Nevada Business Systems, Inc.

Konica Supplies Manufacturing U.S.A., Inc.

Minolta Advance Technology, Inc.

Konica Minolta Business Solutions (Canada) Ltd.

Konica Minolta Business Solutions (MONTREAL) Inc.

Konica Minolta Business Solutions de Mexico SA de CV.

Konica Minolta Business Solutions do Brazil Ltda.

EuropeKonica Minolta Business Solutions Europe GmbH

Konica Minolta Business Solutions Deutschland GmbH

Konica Minolta Printing Solutions Deutschland GmbH

Develop GmbH

ECS Buero-und Datensysteme GmbH

Office-boerse.de Internet GmbH

Plankopie Gesellschaft fur Burosysteme (Monchengladbach) mbH

Konica Minolta Business Solutions (UK) Ltd.

Konica Minolta Printing Solutions (UK) Ltd.

Konica Minolta Business Solutions East Ltd.

Konica Minolta Business Solutions France S.A.S.

Konica Minolta Printing Solutions France S.a.r.l

Repro Conseil S.A.S.

Konica Minolta Supplies Manufacturing France S.A.S.

Konica Minolta Printing Solutions Europe B.V.

Konica Minolta Business Solutions Austria GmbH

Konica Minolta Business Solutions (BELGIUM) N.V.

Konica Minolta Business Solutions Denmark a/s

Konica Minolta Business Solutions Italia S.p.A.

Konica Minolta Business Solutions Spain S.A.

Konica Minolta Business Solutions Portugal Lda.

Konica Minolta Business Solutions Sweden AB

Konica Minolta Business Solutions Norway AS

Konica Minolta Printing Solutions Nordic AB

Hoyseter Utleie AS

Konica Minolta Baltia, UAB

Konica Minolta Croatia - Business Solutions d.o.o.

Konica Minolta Business Solutions Czech spol. s.r.o.

Konica Minolta Hungary Business Solutions Ltd.

Konica Minolta Business Solutions Romania s.r.l.

List of Group Affiliates

Group Formation

26

Affiliates of Konica Minolta Photo Imaging, Inc.

Affiliates of Konica Minolta Medical & Graphic, Inc.

Affiliates of Konica Minolta Business Expert, Inc.

Affiliates of Konica Minolta Technology Center, Inc.

Konica Minolta Slovakia spol. s.r.o.

Konica Minolta Business Solutions Slovenia d.o.o.

Konica Minolta Business Solutions Polska s.p. z.o.o.

Konica Minolta Ukraine

JapanKonica Minolta Components Co., Ltd.

Konica Minolta Opto Products Co., Ltd.

Nankai Optical Co., Ltd.

Konica Minolta Glass Tech. Co., Ltd.

Asia/PacificKonica Minolta Opto (DALIAN) Co., Ltd.

Konica Minolta Opto (SHANGHAI) Co., Ltd.

JapanKonica Minolta Marketing Corporation

Konica Minolta Photo Solutions Co., Ltd.

Konica Minolta Camera Service Co., Ltd.

Konica Minolta ID Imaging Co., Ltd.

Konica Minolta ID System Co., Ltd.

Konica Minolta Packaging Co., Ltd.

Konica Minolta Chemical Co., Ltd.

Asia/PacificKonica Minolta Photo Imaging Asia H.Q. Pte. Ltd.

Konica Minolta Photo Imaging (HK) Ltd.

Konica Minolta Photo Imaging (SHANGHAI) Co.,Ltd.

Konica Minolta Optical Products (SHANGHAI) Co., Ltd.

Konica Minolta Photo Imaging (Thailand) Co.,Ltd.

Konica Minolta Photo Imaging Malaysia Sdn. Bhd.

Konica Minolta Precision Engineering Malaysia Sdn. Bhd.

Konica Minolta Photo Imaging Australia Pty. Ltd.

North and South AmericaKonica Minolta Photo Imaging U.S.A., Inc.

Konica Minolta Manufacturing U.S.A., Inc.

EuropeKonica Minolta Photo Imaging Europe GmbH

Konica Minolta Photo Imaging (UK) Ltd.

Konica Minolta Photo Imaging France S.A.S.

Konica Minolta Photo Imaging (Schweiz) AG

Konica Minolta Photo Imaging Nordic AB

Konica Minolta Photo Imaging Benelux B.V.

Konica Minolta Photo Imaging Czech spol. s.r.o.

Konica Minolta Photo Imaging Polska s.p. z.o.o.

LLC Konica Minolta Photo Imaging Russia

JapanKonica Minolta Medical Co., Ltd.

Konica Minolta Graphic Imaging Japan Co., Ltd.

Konica Minolta Medical & Graphic Technosupport Co., Ltd.

Konica Minolta Repro Co., Ltd.

Konica Minolta Technoproducts Co., Ltd.

Asia/PacificKonica Minolta Medical & Graphics (SHANGHAI) Co., Ltd.

North and South AmericaKonica Minolta Graphic Imaging U.S.A., Inc.

Konica Minolta Medical Imaging U.S.A., Inc.

EuropeKonica Minolta Medical & Graphics Imaging Europe GmbH

JapanKonica Minolta Logistics Co., Ltd.

Konica Minolta Sogo Service Co., Ltd.

Konica Minolta Engineering Co., Ltd.

Konica Minolta Information System Co., Ltd.

JapanKonica Minolta Technosearch Co., Ltd.

North and South AmericaKonica Minolta Technology U.S.A., Inc.

Affiliates of Konica Minolta Opto, Inc.

quest to become an innovative enterprise group that ......manufacturing, sale and related services...

Documents