Konica Minolta : 1st Quarter Financial Results for FY ending March 31, 2022

July 29, 2021

Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021

[IFRS]

Company name:		Konica Minolta, Inc.
Stock exchange listings:		Tokyo (First Section)
Securities code number:		4902
URL:		http://konicaminolta.com
Representative:		Shoei Yamana
Contact:		President and CEO, Representative Executive Officer
	Toru Tanaka
Telephone number:		General Manager, Corporate Accounting Division
	(81) 3-6250-2111
Scheduled date for dividends payment:	-
Scheduled date for submission of	August 6, 2021
securities report:
Availability of supplementary information	Yes
for the quarterly financial results:
Organization of briefing on the quarterly	Yes (for institutional investors)
financial results:
	(Amounts less than one million yen are rounded down to the nearest million yen.)
1. Consolidated financial	results for the	three	months ended June	30,	2021 (from April 1, 2021 to
June 30, 2021)
(1) Consolidated results of operations
(Percentage figures represent changes from the same period of the previous fiscal year.)
Three months ended	Revenue		Operating profit		Profit before tax
	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2021	229,860	32.7	3,103	-	2,549	-
June 30, 2020	173,167	-28.4	(22,639)	-	(23,801)	-
Three months ended	Profit for the period	Profit attributable to	Total comprehensive
owners of the Company	income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2021	871	-	978	-	3,765	-
June 30, 2020	(17,446)	-	(17,305)	-	(18,259)	-

	Basic earnings	Diluted
Three months ended	earnings per
per share
	share
	Yen	Yen
June 30, 2021	1.98	1.98
June 30, 2020	(34.96)	(34.96)

(Note) Basic earnings per share and diluted earnings per share are calculated based on the profit attributable to owners of Konica Minolta, Inc. (the "Company").

(2) Consolidated financial position

Equity

Equity ratio

Total assets

Total equity

attributable to

attributable to

owners of the

owners of the

As of

Company

Company

Millions of yen

Millions of yen

Millions of yen

%

June 30, 2021

1,271,449

547,140

536,210

42.2

March 31, 2021

1,299,752

550,703

539,888

41.5

2. Dividends per share

End of the

End of the

End of the

End of the

three-month

six-month

nine-month

Total

year

period

period

period

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

−

10.00

−

15.00

25.00

March 31, 2021

Fiscal year ending

−

March 31, 2022

Fiscal year ending

15.00

−

15.00

30.00

March 31, 2022 (forecast)

(Note) Changes from the latest dividend forecasts: None

3. Consolidated forecasts for the fiscal year ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

(Percentage figures represent changes from the previous fiscal year.)

Fiscal year					Profit attributable to	Basic earnings
Revenue		Operating profit		owners of the
			per share
ending					Company
	Millions of yen	%	Millions of yen	%	Millions of	%	Yen
	yen
March 31,	940,000	8.9	36,000	−	19,000	−	38.50
2022

(Note) Changes from the latest consolidated forecasts: None

• Notes

1. Changes in significant subsidiaries for the three months endedJune 30, 2021(changes in the scope of consolidation): None
2. Changes in accounting policies or changes in accounting estimates a. Changes in accounting policies required by International

Financial Reporting Standards (IFRS):	None
b. Changes in accounting policies other than the above a.:	None
c. Changes in accounting estimates:	None
(3) Number of issued and outstanding shares (common stock)

a. Number of issued and outstanding shares (including treasury shares)

As of June 30, 2021:	502,664,337 shares
As of March 31, 2021:	502,664,337 shares
b. Number of treasury shares	9,136,639 shares
As of June 30, 2021:
As of March 31, 2021:	9,155,998 shares
c. Average number of issued and outstanding shares during the year
The three months ended June 30, 2021:	493,516,433 shares
The three months ended June 30, 2020:	495,001,762 shares

(Note) The Company has established the Board Incentive Plan in which beneficiaries include Directors, Executive Officers, Group Executives, and Technology Fellows. The shares owned by the trust account relating to this trust are accounted for as treasury shares (2,796,017 shares as of June 30, 2021, and 2,809,437 shares as of March 31, 2021).

• This summary of quarterly consolidated financial results falls outside the scope of quarterly review procedures to be performed by certified public accountants or an audit firm.
• Explanation concerning the appropriate use of the forecasts for results of operations and other special matters
  Note on the forecasts for the consolidated financial results
  The forecasts for results of operations in this report are based on information currently available to the Company and its subsidiaries (the "Group") and certain assumptions determined to be reasonable, and are not intended to assure any achievement of the Group's operations. Actual results may differ significantly from the forecasts due to various factors. For further details of the assumptions that form the basis of the of the forecasts and other related matters when referring to the forecasts, see "1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2021, (3) Explanation Regarding the Forecasts for the Consolidated Financial Results" in the attached Supplementary Information on page 8.
  Supplementary information for the quarterly financial results and briefing on the quarterly financial results
  The Company will hold a briefing on the quarterly financial results for institutional investors on Thursday, July 29, 2021. The proceedings and details of the briefing, along with the supplementary information on the quarterly financial results to be presented at the briefing, will be posted on the website of the Group soon after the briefing.

Supplementary Information

	Table of Contents
1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE THREE MONTHS ENDED
JUNE 30, 2021	2
(1)	Qualitative Information on the Consolidated Operating Results	2
(2)	Qualitative Information on the Consolidated Financial Position	7
(3)	Explanation Regarding the Forecasts for the Consolidated Financial Results	8
2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES	9
(1)	Condensed Consolidated Statements of Financial Position	9
(2)	Condensed Consolidated Statements of Profit or Loss	11
(3)	Condensed Consolidated Statements of Comprehensive Income	12
(4)	Condensed Consolidated Statements of Changes in Equity	13
(5)	Condensed Consolidated Statements of Cash Flows	15
(6)	Notes to the Condensed Consolidated Financial Statements	17
	[Notes Regarding Going Concern Assumptions]	17
	[Other Income]	17
	[Other Expenses]	17
	[Segment Information]	18

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1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE THREE MONTHS ENDED JUNE 30, 2021

1. Qualitative Information on the Consolidated Operating Resultsa. Overview

	Three months ended	Three months ended	Increase (Decrease)
	June 30, 2020	June 30, 2021
	Billions of yen	Billions of yen	Billions of yen	%
Revenue	173.1	229.8	56.6	32.7
Gross profit	71.6	101.2	29.5	41.3
Operating profit (loss)	(22.6)	3.1	25.7	−
Profit (loss) before tax	(23.8)	2.5	26.3	−
Profit (loss) attributable to owners of	(17.3)	0.9	18.2	−
the Company
	Yen	Yen	Yen	%
Basic earnings (loss) per share	(34.96)	1.98	36.94	−
	Billions of yen	Billions of yen	Billions of yen	%
Capital expenditures	6.3	8.8	2.5	40.0
Depreciation and amortization	19.4	18.9	(0.4)	-2.1
expenses
		(0.8)
Research and development expenses	16.1	15.3	-5.1
	Billions of yen	Billions of yen	Billions of yen	%
Free cash flows	(13.9)	(2.7)	11.1	−
	Number	Number	Number	%
Number of employees in the Group	42,964	40,078	(2,886)	-6.7
Foreign exchange rates	Yen	Yen	Yen	%
U.S. dollar	107.62	109.49	1.87	1.7
Euro	118.48	131.96	13.48	11.4

The United States and Europe derive a little under 60% of the Company's consolidated revenue and saw continuous signs of recovery after the ease of restrictions in economic activities due to COVID-19. Also, a continued economic growth was seen in China. In Japan, the manufacturing industry saw signs of improvement as exports increased thanks to recovery in overseas economic conditions, despite the fact that economic activities in the non-manufacturing industry remained sluggish due to the declaration of the nationwide state of emergency. Meanwhile, economic activities in emerging countries, such as Southeast Asia, are still negatively affected due to rebound of COVID- 19.

Amid such business environment, the Company saw an increase in revenue in all reportable segments: Digital Workplace Business, Professional Print Business, Healthcare Business, and Industry Business. The Group recorded revenue of 229.8 billion yen, an increase of 32.7% year-on-year during the three months ended June 30, 2021 (the "current period"). While revenue was picking up over the current period, the Company successfully continued to maintain the level of selling and administrative expenses that was curbed in the previous year. As a result, operating profit during the current period was 3.1 billion yen, a substantial increase year-on-year (operating loss of 22.6 billion yen was marked in the same period of the previous fiscal year). Profit before tax of 2.5 billion yen was marked in the current period, whereas loss before tax of 23.8 billion yen was recorded in the same period of the previous year. Profit attributable to owners of the Company was 0.9 billion yen, whereas loss attributable to owners of the Company was 17.3 billion yen in the same period of the previous year.

Compared to the same period of the fiscal year ended March 31, 2020 in the pre-pandemic, the Company boosted revenue up to 95%. In particular, revenue in the Industry Business, which will be one of the main pillars for the Company's growth strategy, increased by 17% from the same period

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