Konica Minolta : 3rd Quarter Financial Results for FY ending March 31, 2022

February 1, 2022

Summary of Consolidated Financial Results for the Nine Months Ended December 31, 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 submission of	February 9, 2022
securities report:
Scheduled date for dividends payment:	-
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 nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)

(1) Consolidated results of operations

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

Nine months ended	Revenue		Operating profit		Profit before tax
	Millions of yen	%	Millions of yen	%	Millions of yen	%
December 31, 2021	661,524	7.6	(10,159)	－	(12,074)	－
December 31, 2020	614,891	-17.7	(24,601)	－	(28,454)	－
Nine 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	%
December 31, 2021	(13,297)	－	(13,245)	－	3,220	－
December 31, 2020	(20,133)	－	(20,643)	－	(22,660)	－

	Basic earnings	Diluted
Nine months ended	earnings per
per share
	share
	Yen	Yen
December 31, 2021	(26.84)	(26.84)
December 31, 2020	(41.69)	(41.69)

(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	%
December 31, 2021	1,269,948	518,551	507,021	39.9
March 31, 2021	1,299,752	550,703	539,888	41.5
2. Dividends per share
	End of the	End of the six-	End of the
	three-month	nine-month		End of the year		Total
	month period
	period	period
	Yen	Yen	Yen		Yen		Yen
Fiscal year ended	－	10.00	－	15.00		25.00
March 31, 2021
Fiscal year ending	－	15.00	－
March 31, 2022
Fiscal year ending				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					Profit attributable to	Basic earnings
year	Revenue		Operating profit		owners of the
			per share
ending					Company
	Millions of	%	Millions of	%	Millions of	%	Yen
	yen	yen	yen
March 31,	900,000	4.2	12,000	-	1,500	-	3.04
2022

(Note) Changes from the latest consolidated forecasts: Yes

• Notes

1. Changes in significant subsidiaries for the nine months ended December 31, 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 December 31, 2021:	502,664,337 shares
As of March 31, 2021:	502,664,337 shares
b. Number of treasury shares	9,059,922 shares
As of December 31, 2021:
As of March 31, 2021:	9,155,998 shares

c. Average number of issued and outstanding shares during the period

The nine months ended December 31, 2021:	493,559,937 shares
The nine months ended December 31, 2020:	495,133,069 shares

(Note) The Company has established the Board Incentive Plan. The shares owned by the trust account relating to this trust are accounted for as treasury shares (2,759,516 shares as of December 31, 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 forecasts and other related matters when referring to the forecasts, refer to "1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2021, (3) Explanation Regarding the Forecasts for the Consolidated Financial Results" in the attached Supplementary Information on page 10.
  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 Tuesday, February 1, 2022. 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 NINE MONTHS ENDED
DECEMBER 31, 2021	2
(1)	Qualitative Information on the Consolidated Operating Results	2
(2)	Qualitative Information on the Consolidated Financial Position	8
(3)	Explanation Regarding the Forecasts for the Consolidated Financial Results	10
2. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES	11
(1)	Condensed Consolidated Statements of Financial Position	11
(2)	Condensed Consolidated Statements of Profit or Loss	13
(3)	Condensed Consolidated Statements of Comprehensive Income	15
(4)	Condensed Consolidated Statements of Changes in Equity	17
(5)	Condensed Consolidated Statements of Cash Flows	19
(6)	Notes to the Condensed Consolidated Financial Statements	21
	[Notes Regarding Going Concern Assumptions]	21
	[Other Income]	21
	[Other Expenses]	21
	[Segment Information]	22

－ 1－

1. QUALITATIVE INFORMATION ON FINANCIAL RESULTS FOR THE NINE MONTHS ENDED DECEMBER 31, 2021

1. Qualitative Information on the Consolidated Operating Resultsa. Overview

	Nine months ended	Nine months ended	Increase (Decrease)
	December 31, 2020	December 31, 2021
	Billions of yen	Billions of yen	Billions of yen	%
Revenue	614.8	661.5	46.6	7.6
Gross profit	264.2	290.1	25.9	9.8
Operating profit (loss)	(24.6)	(10.1)	14.4	－
Profit (loss) before tax	(28.4)	(12.0)	16.3	－
Profit (loss) attributable to owners of	(20.6)	(13.2)	7.3	－
the Company
	Yen	Yen	Yen	%
Basic earnings (losses) per share	(41.69)	(26.84)	14.85	－
	Billions of yen	Billions of yen	Billions of yen	%
Capital expenditures	30.0	27.6	(2.3)	-8.0
Depreciation and amortization	58.2	56.5	(1.7)	-2.9
expenses
	47.1	(1.3)	-2.7
Research and development expenses	48.4
	Billions of yen	Billions of yen	Billions of yen	%
Free cash flows	7.8	(9.6)	(17.4)	－
	Number	Number	Number	%
Number of employees in the Group	41,470	38,955	(2,515)	-6.1
Foreign exchange rates	Yen	Yen	Yen	%
U.S. dollar	106.11	111.10	4.99	4.7
Euro	122.38	130.62	8.24	6.7

In the nine months ended December 31, 2021 (the "current period"), the global economy was affected by the rebound of mutated strains of COVID-19, a shortage of semiconductors and other material, and soaring energy prices. Nevertheless, amid such business environment, the Company saw an increase in revenue in Professional Print Business, Healthcare Business, and Industry Business. The Group recorded a revenue of 661.5 billion yen, an increase of 7.6% year-on-year during the current period. Gross profit also went up by 9.8% year-on-year, led by the improvement of the gross profit margin. While revenue and gross profit were picking up over the current period, the Company successfully maintained the level of selling and administrative expenses that was curbed for the effect of the structural reform implemented in the previous fiscal year. Therefore, the operating loss during the current period went down by 14.4 billion yen to 10.1 billion yen, a decrease of loss year-on-year since operating loss of 24.6 billion yen was marked in the same period of the previous year. Moreover, loss before tax of 12.0 billion yen was marked in the current period, whereas loss before tax of

1. billion yen was recorded in the same period of the previous year. Loss attributable to owners of the Company was 13.2 billion yen, whereas loss attributable to owners of the Company was

1. billion yen in the same period of the previous year. The impact of the shortage of semiconductors and other material and prolonged transport periods because of congestion at ports has continued since thethree-month period ended September 30, 2021; as a result, undersupply of products over the steadily recovered number of orders received led to stagnation in revenue in the office unit in the Digital Workplace Business. Meanwhile, revenue in the Industry Business, which is one of the main pillars for the Company's growth strategy, increased by 18.6% year-on-year and increased by 14.8% from the same period of the fiscal year ended March 31, 2020, when the economy was barely affected by COVID-19.
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