Supporting evolving office document requirements and promoting genre top strategies by offering advanced color MFP and printing solutions

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1 Supporting evolving office document requirements and promoting genre top strategies by offering advanced color MFP and printing solutions President Akio Kitani Konica Minolta Business Technologies handles the Group s core business, which is the manufacture and marketing of office equipment. As one of the few manufacturers that provides both MFPs* and printers on a worldwide basis, we offer a comprehensive lineup with an emphasis on color machines. In addition, our experience and expertise in this field enable us to combine products and systems to create optimal solutions tailored to the specific needs, of each customer. Having already established ourselves as the top brand in the mid- and highspeed color MFP sector in both the U.S.A. and Europe, we plan to grow our business by concentrating resources in the fast-growing field of color printing. By offering high image quality and value-added products, we intend to promote genre top strategies that will establish us as No. 1 in each segment. Moreover, as networking and information technologies become increasingly integrated in today s businesses, we are working closely with other IT companies to develop solutions that meet the requirements of a wider range of customers. By understanding and responding quickly to changes in society, we will be able to expand our business as technology advances. MFP (Multi Function Peripheral) The essential office device is now shifting towards color capability and network compatibility In the modern office where demand for color output is increasing, Konica Minolta Business Technologies is delivering advanced solutions that contribute to the enhancement of productivity and creativity. Driven by the concept that the user is the center of business, our digital MFP bizhub series is equipped with multiple functions including copying, printing and scanning. Designed to serve as the hub of the office network, these devices can consolidate administration of networked equipment, manage distribution of digital data, and provide enhanced security. Color MFP bizhub C300 + PageACSES Ver touch panel (Document security is ensured with identical person certification using noncontact IC card. Optional large touch panel improves operability.) 21

2 Light production An important domain with high future growth potential The light production market (quick printing) is one of our most important target markets and we expect substantial growth in this area in the future. Konica Minolta helps improve productivity and reliability by providing rugged, industrial-strength color/monochrome MFPs (bizhub PRO series) with the speed and image quality suitable for POD (Print On Demand). Printers Focusing on high-performance systems, as well as home office solutions With color documents fast becoming the norm in business, Konica Minolta has developed the color laser printer magicolor series, that offers both a compact design and high-resolution printing performance. Our array of printers is expanding with the addition of new highperformance printers for demanding office requirements, as well as compact, lightweight, high-resolution, high-speed models for the SOHO market. To maximize printer performance, our printers incorporate our exclusive next-generation Emperon printing technology, enhancing operability and functionality as well as facilitating high-speed, high-quality printing. Color laser printer magicolor 5450 Advanced Technology Next-generation toner providing a foundation for enriched imaging All of our latest copiers, MFPs and printers use polymerized toners (SIMITRI toner) for faster printing and better quality. Polymerized toners are characterized by the smaller diameter of toner particles and the greater uniformity of their size and shape, enabling reproduction of fine lines and halftones with enhanced sharpness and dramatically enhancing the quality of color images. These toners are also beneficial for the environment, as they require less energy and produce less exhaust gas. With demand for polymerized toners rapidly increasing, we are building a new factory to manufacture them at Nagano Prefecture in Japan. On completion, we will have the world's largest production capability. Conventional toner Polymerized toner High-speed monochrome copier/mfp bizhub PRO 1050 Location of head office: Marunouchi, Chiyoda-ku, Tokyo Business activities: Manufacturing, sale and related services of office equipment including copiers, digital MFPs and printers, and related supplies Paid-in capital: 500 million yen Consolidated sales in FY2005: billion yen Number of employees (consolidated): Approx. 19,800 (as of March 2006) 22 *MFP (Multi Function Peripheral): Multi-purpose machine offering several functions including copier, printer, scanner and facsimile.

3 Putting advanced technologies such as next-generation DVD pickup lenses and view angle magnification film to practical use President Takashi Matsumaru Konica Minolta Opto, Inc. manufactures and supplies optical components, such as optical pickup lenses, lens units and microcamera units, and display materials, such as TAC films which are used to protect the polarizers used as the core component in LCD displays. Both the optical components and the display materials businesses are positioned as strategic businesses within the Konica Minolta Group, targeted at the expanding digital appliance and information communication markets. In response to rising market expectations, we are working to refine and improve our proprietary industryleading optical technologies, highprecision machining technologies and thin film creation technologies. By meeting market demand for highprecision, high-value-added products and by aggressive R&D and capital investment, we will maintain our reputation as the world s best optical devices manufacturer and stimulate new areas of growth. Our ongoing commitment to promoting technological innovation and pursuing high-level technological synergies will ensure that we are able to fulfill our mission as the essential enterprise in the world of imaging. Optical components High-precision optical components derived from the synthesis of core technologies As the first company to successfully commercialize aspheric plastic lenses for compact discs, we have been a leader in the development of pickup lenses for DVD and various other optical disc drives and players. Today, products derived from such leading-edge proprietary technologies as optical design and precision molding processing technologies have the large share in the global market. We are also actively engaged in production of pickup lenses for next-generation DVDs using blue-violet laser diode. In the field of micro cameras for mobile phones, we provide high-value-added micro lenses with excellent light uniformity and color reproduction. Other high-precision products include pickup prisms, lenses for laser printers, lens units for digital cameras and glass hard disk substrates. Superior performance and reliability have helped us win the confidence of a wide range of customers around the world. Lens unit Microcamera unit Multiple AF unit 23

4 Display materials Enhancing production capabilities to meet the needs of the expanding LCD market Leveraging the power of the advanced film production technologies that we have developed over the past long years, we developed thin type (40 microns) TAC (triacetyl cellulose) film for use in protecting LCD polarizers. With demand for LCDs growing exponentially, we are enhancing our production capabilities by building a fifth factory dedicated to the manufacture of TAC film. We will also exploit other superior core technologies such as thin-film and coating technologies to develop advanced products such as view angle magnification film for a large-screen LCD TVs. Advanced Technology Integrating advanced technologies to support worldclass high-quality lenses Konica Minolta Opto s world-leading optical design technology is the foundation for the renowned quality of our pickup lenses for optical discs. Stable, consistent production of high-precision and high-value-added optical products would not be possible without our wide range of advanced proprietary technologies such as plastic molding technology (for high-precision shapes and forms), precision mold machining technology (to make smooth surfaces), as well as optical materials evaluation technology, measurement & evaluation technology (for optical performance), and optical thin film (coating) technology. Currently, we are enhancing these products still further in preparation for mass production of high-precision optical lenses using blue-violet laser. Location of head office: Business activities: Paid-in capital: 2970 Ishikawa-machi, Hachioji, Tokyo Manufacturing and sale of optical products (such as optical pickup lenses), related products and electronic materials (such as TAC films). 500 million yen Consolidated sales in FY2005: billion yen Number of employees: Approx. 2,700 (as of March 31, 2006) 24

5 Delivering leading-edge digital imaging solutions and creating new values in the medical and graphic imaging fields President Kiyofumi Tanida Konica Minolta Medical & Graphic Inc. is a leading provider of equipment and services in the medical and graphic imaging fields. With the rapid advance of digitization in these fields, we focus on delivering high value-added solutions that integrate a wide range of cutting-edge digital equipment, consumables, systems and services. In the field of medical imaging, we have used our wellestablished technology and expertise in radiographic image processing to develop an image diagnosis system centered on high-resolution digital image readers and output devices. We are also working to develop systems and networks to support regional medical treatment and individual medical practitioners, as well as major hospitals. In the graphic imaging field, we provide digital color-proofing systems that take full advantage of our advanced technology and expertise, and aggressively make efforts in the development of next-generation CTP (Computer To Plate) systems a market where demand is growing rapidly. We continue to bring new leading-edge technologies to both the medical and graphic imaging markets, while providing the high-quality products and services our customers depend on. We will also seek to grow and broaden our market base through active investment and diligent R&D. Medical imaging Developing next-generation diagnostic systems supported by the proven reliability of our wide array of products Ever since we introduced the first made-in-japan X-ray film, medical practitioners have put their trust in Konica Minolta's imaging products. With digitization and networking progressing rapidly in this field, we have developed a system for digitization, storage, and transmission of X-ray images that enables an open network system and efficient image management. In the area of high-precision diagnostic imaging systems, products such as our REGIUS series digital image readers (direct digitizers) and DRYPRO series digital image output systems (laser imagers) are highly regarded in the medical community. Based on these products, we have developed our PCM system, which combines a mammography unit (the world s first mammography unit to use phase contrast to achieve high-quality images) with an image reader, image processor, and printer, and provides a total digital solution that has proven to contribute to early detection of breast cancer. We are also contributing to the advancement of next-generation diagnosis systems through the development of software such as PACS Mammography system PCM system Mammography unit Digital image reader REGIUS MODEL

6 (Picture Archiving and Communication System), as well as the creation of other promising products linked with electronic clinical records. In the field of pharmaceuticals for diagnosis, we provide intravascular contrast agents for X-rays, and are developing a genetic testing system for infectious diseases in collaboration with another company. Advanced Technology New V-Plate technology makes X-ray diagnosis easier on the human body In X-ray photography, images are obtained by passing an X-ray through the body to a plate composed of layers of fluorescent material placed on a board. At Konica Minolta, we developed the V-Plate that enables clearer images to be obtained with less X-ray energy by evaporating special fluorescent materials with a high X-ray absorption factor. The V-Plate enjoys an excellent reputation for the quality of its images and can be incorporated in a standing or lying digital image reader. Graphic Imaging Leading graphic imaging market to the next level with superior digital solutions In the field of graphic imaging, the trend toward digitization has increased the need for high quality and efficiency in graphic production. Our customers have nothing but praise for the Konsensus series, which sets the standard for the new generation of color-proofing output systems. These systems can directly output digital data for colorproofing purposes, and can improve operational efficiency, cut costs and reproduce high-quality images. In plate making, we are helping to improve productivity by aggressively pushing forward with the business of CTP (Computer To Plate) systems, which expose digital text and image data directly to plate materials without outputting them to films. Digital image reader (standing type) REGIUS MODEL 370 Digital color-proofing system Digital Konsensus Pro Location of head office: Business activities: Paid-in capital: Nishishinjuku, Shinjuku-ku, Tokyo Manufacturing, sale and related services of consumables and equipment for medical and graphic imaging 500 million yen Consolidated sales in FY2005: billion yen Number of employees: Approx. 3,200 (as of March 31, 2006) REGIUS console CONSOLE CS-3 Digital image output system Laser Imager DRYPRO MODEL

7 Contributing to the enhancement of the quality and precision indispensable to various industries by providing high-precision measuring instruments President Hiroshi Furukawa Derived from our state-of-the-art optical and image processing technologies, Konica Minolta s measuring instruments help improve quality control and precision in a wide variety of industries. 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. In the growing field of 3D measurement, we have been developing new products for industrial applications with our proprietary technologies, as well as medical and academic applications. In the medical field, our pulse oximeter (for measurement of oxygen saturation) is well regarded. We are currently integrating development bases and establishing overseas sales companies for reinforcement of business infrastructure. By continuing to provide solutions that respond to changing needs based on our core technology of light, we will meet the challenges of the new era. Spectrophotometer CM-2600d Color measurement Active in the industrial field where precise color management is indispensable Color management is essential in many areas of manufacturing, including automotive, paint, plastic, textiles, construction materials and food, and requires the ability to measure subtle color differences that human eyes cannot distinguish accurately. Konica Minolta s spectrophotometers and colorimeters are widely utilized at quality control, R&D, distribution and sales scenes in such sectors. Display measurement Our wide lineup of proven products makes us one of the market s leading performers Display color analyzers help test display performance and quality in examination and adjustment of white balance and contrast, by precisely measuring chroma, brightness and balance. As the market for widescreen TVs (plasma, LCD) and LED products (mobile phones, digital cameras car navigation equipment) expands, demand for display color analyzers is increasing. Konica Minolta s advanced display analyzers enjoy a large share of this growing market. We also offer a wide range of other products to meet the needs of the display market with various formats mixed, including a spectroradiometer for brightness and chroma measurement and 2D color analyzer to measure the distribution of brightness and chroma. 2D color analyzer CA

8 Non-contact 3D digitizer VIVID 9i/VI-9i 3D measurement High-precision, high-speed, non-contact 3D scanning 3D digitizers scan three-dimensional objects and import the 3D data to computers. Our non-contact, high-precision, high-speed 3D digitizers are widely used thanks to their simple operation and reliable performance. In addition to medical, academic research, 3D archiving and computer graphics production, our digitizers are used for industrial applications, such as reverse engineering, design verification and quality inspection. Location of head office: Business activities: Paid-in capital: 3-91 Daisennishimachi, Sakai-ku, Sakai, Osaka Manufacturing and sale of measuring instruments for industrial and medical purposes 495 million yen Consolidated sales in FY2006: 5.8 billion yen (11.1 billion yen*) Number of employees: Approx. 300 (as of March 31, 2006) Medical measurement Minimally invasive medical measuring instruments We provide the medical field with sophisticated measuring instruments that impose little or no strain on patients. These include a pulse oximeter, which can detect oxygen saturation in the blood simply by projecting light on the human body, and a compact jaundice meter that can test newborn babies for jaundice without taking blood samples. Advanced Technology Measuring oxygen saturation in the blood by projecting light on a fingertip All Konica Minolta s measuring instruments are based on our technology of light. For example, our pulse oximeter measures oxygen saturation in the blood in real time without taking blood samples. Red light and infrared light are projected from a small probe placed at the fingertip, then the difference in the absorption ratio of oxidized and reduced hemoglobins is detected. This enables the oximeter to accurately measure the amount of oxygen in arterial blood (oxygen saturation) with almost no interference from skin color or bone. Oxygen saturation monitor PULSOX-300i *As this company s operations also included sales from Konica Minolta Photo Imaging, Inc. sales company in Europe and North America areas until 2005 FY, sale from both sectors are included in this company s total billion yen represents the actual total sales of Konica Minolta Sensing, Inc., incorporating the sales from both areas. 28

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