Konica Minolta : Presentation Slides for Q4/March 2024 Consolidated Financial Results

Konica Minolta, Inc.

4thQuarter/FY2023 ended in March 2024 Consolidated Financial Results

Toshimitsu Taiko

President and CEO

Three months : January 1, 2024 - March 31, 2024

Fiscal Year : April 1, 2023 - March 31, 2024 - Announced on May 14, 2024 -

© KONICA MINOLTA

Today's Summary

FY2023 Result

• Revenue: Record-high revenue
• Profit: Exceeded the plan through profit attributable to owners of the Company, and returned to profitability in both operating profit and profit attributable to owners of the Company
• FCF:Significantly exceeded the plan due to an increase in operating CF

Medium-term Business Plan Progress

• Business selection and concentration:
• • Business Technologies Business*: Signed a memorandum of understanding for strategic alliance (April 15th)
  • Precision medicine unit: Completed transfer of entire equity capital in Invicro (April 30th)
• Reinforcement of financial foundation:
• • Operating CF profitability (Q4: ¥36.8 billion, 12M: ¥83.3 billion) due to reduction of working capital

*Business Technologies Business is a collective term for Digital Workplace Business and Professional Print Business.

© KONICA MINOLTA

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FY2023

PERFORMANCE OVERVIEW

© KONICA MINOLTA

FY2023 Performance | Summary

FY2023 12M Result

• Revenue: Increased
• Business contribution profit*: Decreased due to higher personnel expenses in addition to rebound caused by the elimination of backlog order
• Operating profit and Profitattributable to owners of the Company: Returned to profitability
• FCF: Significantly increased
• Year-enddividends: ¥5/share (as planned)

[¥ billions]

FY23

vs FY22

FY23

vs FY22

Revenue Gross Profit

Gross Profit ratio

12M

1,160.0

504.7

43.5%

FY22

12M

1130.4

485.9

43.0%

YoY

+3%

+4%

+0.5pt

YoY

(w/o FOREX)

-3%-3%

Q4

318.0

136.6

42.9%

FY22

Q4

309.4

134.4

43.4%

YoY

+3%

+2%

-0.5pt

YoY

(w/o FOREX)

-6%-8%

SG ＆A

Business Contribution Profit

Operating Profit

Profit attributableto owners of the Company

FCF

FOREX [Yen]

478.7

26.0

26.1

4.5

38.8

456.2 +5% -0%

29.7 -13%-49%

-95.1	-	-
-103.2	-
-24.2	-

122.8

13.8

17.5

8.7

25.5

115.6 +6% -2%

18.8 -26%-46%

-98.5	-	-
-99.9	-

18.6 +37%

USD EUR RMB

144.62	135.47	+9.15	148.61	132.34	+16.27
156.80	140.97	+15.83	161.31	142.10	+19.21
20.14	19.75	+0.39	20.63	19.34	+1.29

*Business contribution profit: Original index of the Company, the profit subtracted sales cost, SG&A from revenue

© KONICA MINOLTA

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FY2023 Performance｜Revenue & Profit by Segment

FY2023 12M

Results

Revenue

Digital Workplace

Professional Print

Healthcare

Industry *1

Corporate, etc. *1

Company overall

			[¥ billions]
FY23		vs FY22
12M	FY22 12M	YoY	w/o FOREX
614.9	600.3	+2%	-4%
263.4	252.6	+4%	-2%
139.0	137.8	+1%	-3%
139.6	137.1	+2%	-2%
3.1	2.6	+19%	+19%
1,160.0	1,130.4	+3%	-3%

Business Contribution

Profit

Digital Workplace

Professional Print

Healthcare

Industry *1

Corporate, etc. *1

Company overall

	FY23		vs FY22	After adjustment
	ratio	for head-office expenses *2
	12M
		FY22 12M	YoY	w/o FOREX
32.7	5%	30.7	+7%	-14%
13.8	5%	15.1	-8%	-36%
-6.6	-	-7.0	-	-
12.4	9%	21.7	-43%	-48%
-26.3	-	-30.7	-	-
	26.0	2%	29.7	-13%	-49%

Operating Profit

Digital Workplace

Professional Print

Healthcare

Industry *1

Corporate, etc. *1

Company overall

FY23		vs FY22	After adjustment
ratio	for head-office expenses *2
12M
	FY22 12M	YoY	w/o FOREX
33.0	5%	21.5	+53%	+24%
11.6	4%	13.6	-14%	-44%
-1.3	-	-111.5	-	-
9.4	7%	13.5	-30%	-39%
-26.6	-	-32.1	-	-
26.1	2%	-95.1	-	-

*1 FORXAI's revenue, business contribution profit, and operating profit are included in Industry Business in FY2022 and in Corporate, etc. in FY2023.

These figures in FY2022 are included in Corporate, etc. in this material.

*2 Adjustment for head-office expenses: Some part of expenses regarding the whole corporate had been transferred to each business segment until

FY2022 and has not been transferred in FY2023. The figures in the table are the ones after adjusting the cost allocation of FY2022 results to the	© KONICA MINOLTA	5
FY2023 base as a reference. They include the common expenses in Digital Workplace Business and Professional Print Business.

FY2023 Performance｜Factors of Increase/Decrease of Operating Profit (12M)

[¥ billions]

+116.6

FY22

21.5

26.1

FY22

(w/o impairment loss)

-95.1

Breakdown:

Rebound from backlog order elimination -11.5 Price increase +4.4 and others

FY23

Breakdown:

Invicro gain on reversal of impairment loss +3.6 Ambry gain on reversal of impairment loss +3.4 MGI impairment loss -2.1

Planetariums impairment loss -1.7 and others

Business contribution

Other income

profit components

components

Shedding of

FY22 W/O

FOREX

Air freight

Logistics

Sales

Production

Energy and

Personnel

Structural

Other SG&A

Structural

Other income

FY22

impairment

volume

component

FY23

Impairment loss

impact

expenses

expenses

cost

expenses

reform effect

expenses

reform cost

and expenses

loss

and others

expenses

Digital Workplace

21.5

+2.9

24.4

+6.4

+4.5

+7.4

-23.8

+8.4

+0.7

-4.6

+2.3

+0.6

+2.5

+4.1

33.0

Professional Print

13.6

+0.9

14.4

+4.1

+1.9

+0.3

-6.3

+0.4

+0.3

-1.7

-

-0.3

-

-1.5

11.6

Healthcare

-111.5

+103.6

-8.0

+0.3

-

-0.0

+2.0

+1.4

-1.8

-1.4

+0.5

+0.1

+0.0

+5.6

-1.3

Industry

13.5

+8.1

21.6

+0.9

-

-

-8.3

+1.7

-0.9

-1.0

+0.4

-2.2

-0.1

-2.8

9.4

Corporate, etc.

-32.1

+1.2

-30.9

-0.8

-

-

+0.3

-

-

+0.2

-

+4.0

-

+0.6

-26.6

Company overall

-95.1

+116.6

21.5

+10.8

+6.4

+7.7

-36.0

+12.0

-1.6

-8.5

+3.2

+2.2

+2.4

+6.0

26.1

© KONICA MINOLTA

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FY2023 Performance｜Business Trends of Industry

Revenue

Visual solutionsImaging-IoT solutions

Optical components IJ components

Performance materials Sensing

[¥ billions]

Total Total

137.1 139.6

4.3	4.7
11.3
9.8
19.8	19.7
17.1	19.6

Revenue		(YoY)
		•Light source color:Decreased due to restrained capital
	Sensing		investment of major customers
	•	Object color: Maintained strong performance
		•Automotive visual inspection: Revenue increased
	Performance	•TV: Maintained solid performance due to increased panel
		demand on an area basis and expanded in SANUQI
	materials	•	Smartphones: Maintained solid performance with continuing
			demand recovery. Started sales of new high-functional films
	IJ	•Sign graphics: Sales increased due to the boom of the
		world's largest exhibition
	components	•	Growth field: Maintained solid performance due to adoption

Business contribution profit

39.2

46.9

44.8

		received in new markets
Imaging-IoT	•	Monitoring camera solution: Solid performance in sales
	subsidiaries in Europe and the U.S. and Mobotix dereased
solutions
•	Force Security*: Maintained strong performance

39.4Business Contribution Profit

			Industry	•	Sensing: Decreased
21.7			•	Optical components: Decreased due to increase of one-time
12.4		Business		expenses for transfer of equity capital of manufacturing
				subsidiaries
FY22	FY23

* Force Security: U.S. system integrator acquired in FY2023

© KONICA MINOLTA

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FY2023 Performance｜Business Trends of Healthcare

[¥ billions]

		Total	Total	Revenue		(YoY)
		137.8	139.0
				•	X-ray:Significant decreasein sales to hospitals in Japan
					Medical		and the U.S. due to restrained investments
Revenue					Maintained solid sales to clinics in Japan
			imaging
43.3			•	Dynamic Digital Radiography: Growth in the U.S. based on
	Precision medicine	52.3				high value-added imaging
	Medical imaging
					•	Genetic testing: Increased in received samples and Ambry
					Precision		continued to be profitable
					•	Drug discovery support: Conduct status of clinical trials
					medicine	•	improved
						Business in Japan: Expanded GenMineTOP panel test
							service

Business contribution

94.686.7

Business Contribution Profit

profit

Healthcare

Business

• Medical Imaging: Profit decreased due to declined sales and decrease in gross profit ratio by subsequent lower production utilization
• Precision medicine: Deficit narrowed

-7.0-6.6

FY22 FY23

© KONICA MINOLTA

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FY2023 Performance｜Business Trends of Professional Print

Revenue

Marketing service Industrial print

Production print

[¥ billions]

Total	Total
263.4
252.6
	57.2
58.4
32.3	37.6
161.9	168.6

Revenue		(YoY, excluding impact of FOREX on hardware/non-hard)
		•Hardware: 95% (99% excluding the elimination of the
			previous year's order backlog)
	Production		Unit sales of color models 96% (HPP 131%)
		Unit sales of monochrome models 84%
	print
	•	Non-hard: 100% (103% excluding the elimination of the
			previous year's order backlog) with decrease in Europe
			and the U.S. and strong performance in China and India
		•Hardware: Volume growth in all fields
	Industrial print	•Non-hard: Increased sales due to growth in number of
		presses in operation and improved proportion of digital
			printing among customers

Business contribution profit

15.1 13.8

FY22 FY23

Business Contribution Profit

	Professional	•Production print: Profit increased
	•	Industrial print: Decreased due to investment for growth
	Print Business
	•	Marketing services: Profit increased

© KONICA MINOLTA

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FY2023 Performance｜Business Trends of Digital Workplace

[¥ billions]

		Total	Total
		614.9
		600.3
Revenue	81.1*	90.4
	DW-DX	519.1*	524.5

Office

Revenue		(YoY, excluding impact of FOREX on hardware/non-hard)
		•Hardware: 90% (104% excluding the elimination of the
			previous year's order backlog)
			Unit sales of A3 color models 87%
	Office		Unit sales of A3 monochrome models 80%
	•	Non-hard: 96% (98% excluding elimination of order
			backlog from the previous year) with decrease in Japan,
			Europe, and the U.S. and increase in China and India
		•Growth in office solutions
	DW-DX	•Operation optimizing service: Strong performance in
		Japan, Europe, and the U.S.
		•AI SaaS service by industry: Strong performance in Japan

Business contribution profit

Business Contribution Profit

30.7	32.7		Digital	•	Office: Profit increased due to the effect of production cost
				reduction and the reduction of logistics expenses, and
			Workplace		lower air transport expenses, and others
			Business	•	DW-DX: Deficit narrowed due to restrained SG&A
					expenses and others
FY22	FY23

*FY22 Revenue includes allocation of sales regarding application services with MFP	© KONICA MINOLTA 10