Konica Minolta : Notice Regarding Revision of Full-year Forecasts for Consolidated Financial Results

Konica Minolta, Inc. (the "Company") announces revisions of the consolidated full-year forecasts for the fiscal year ended March 31, 2024 (the "current fiscal year"), disclosed on February 1, 2024, as follows:

In the current fiscal year, the Company set the policy of challenging and achievable target, aiming to achieve the performance forecasts. Revenue is expected to be 1.16 trillion yen, exceeding the previous forecasts by 10 billion yen, with the robust sales of Digital Workplace and Professional Print Businesses, including the positive impact of foreign exchange rates movement. Business contribution profit is expected to be 26 billion yen, exceeding the previous forecasts by 2 billion yen, due to strong sales and company-wide efforts to improve cost efficiency.

In addition to the favorable business contribution profit, operating profit is expected to reflect, during the fourth quarter of the current fiscal year, booking of 3.6 billion yen as gain on reversal of impairment losses regarding assets held for sales due to evaluation of the fair value of assets held for sales, from the transfer of equity capital of Invicro, LLC, the U.S.-based drug discovery support company, as disclosed in the "Notice Regarding Change in a Consolidated Subsidiary (Transfer of Equity Capital)" dated March 7, 2024, and recording of 3.4 billion yen for gain on reversal of impairment losses relating Ambry Genetics Corporation ("Ambry"), the U.S.-based genetic testing company, because Ambry's business has been performing well. As a result, operating profit is expected to be 26 billion yen, exceeding the previous forecasts by 8 billion yen.

Profit attributable to owners of the Company is expected to be 4.5 billion yen, slightly improving from the previous forecasts, because the operating profit was increased but deferred tax assets for overseas subsidiaries were reversed, among others.

The Company's basic policy regarding the determination of dividends of surplus is endeavoring to enhance shareholder returns mainly by dividends, by comprehensively taking into consideration consolidated results, investment in growth areas, cash flows, and other factors. Though profit attributable to owners of the Company is expected as mentioned above, there is no change in the year-end dividends from the previous forecasts (5 yen per share). Free cash flow is expected to be approximately 38 billion yen.

On April 4, 2024, the Company announced the progress of the Medium-Term Business Plan (2023-2025). Based on that, the Company will continue to work on the business selection and concentration, and global structural reforms in the fiscal year ending March 31, 2025.

Note regarding the forecasts

The forecasts for the consolidated financial results are based on the assumptions that the Company believes are reasonable at the time of this announcement. It should be noted that actual results may differ from the forecasts due to various factors.