Basic Concept

Aspiring to maximize customer satisfaction and trust

Konica Minolta aspires to maximize customer satisfaction and trust by providing products and services of superior value. The Group has articulated its basic approach to accomplishing this in the Konica Minolta Quality Policy, which governs Group companies worldwide. An issue of particular importance is ensuring safe, reliable products and services. Accordingly, Konica Minolta has established a unified quality assurance system across the Group, and addresses quality assurance in terms of the entire product lifecycle. Konica Minolta is determined to help create a better world by solving customers' challenges, and to do this it seeks to build deeper relationships with customers so that it can discover and satisfy both latent needs and apparent requests.

Achieving Top-Tier Quality and Reliability

Quality Management PolicyQuality Management System

Konica Minolta's Approach

Improving the Quality Assurance System

Investigating Quality Problems via Regular MeetingsAddressing Market Quality Issues

Serious Product-related Accidents over the Past Five

Years

Enhancing Product Safety Standards

Taking Steps to Ensure Safety

Product Safety TrainingApplication of Risk Maps

Safe Product Design Based on Combustion Test Data from a Laboratory

Taking Steps to Improve Quality

Sharing Information on Quality Problems and Cross-

Deploying Countermeasures within the Group

Initiative for the Development of Quiet Products

Verifying Whether Printers are Compatible with a Variety of Paper Types

New Initiatives for the IoT Era

Creating a Quality Assurance System in Service Business

Areas in the IoT Era 161

Enhancing the Security of Products and ServicesCreating New Quality Value

Konica Minolta's Approach

Background and IssuesVision

Key Measures and KPIs

Promoting Secure Development and Operation Processes

Product Security Guidelines

Thread Analysis and Security MeasuresVulnerability Assessment

Secure Operation and MaintenanceProduct Security Education

Gathering and Addressing Vulnerability Information

Gathering and Addressing Disclosed Vulnerability

Information

KONICA MINOLTA PSIRT

Responding in the Event of a Product Security Incident

Escalation system in the event of a product security incident

Providing Useful Products to Meet Social Needs

Universal Design

Concept for the use of universal designExample 1: Initiatives for the MFP bizhub Series

Example 2: CUD Certification Obtained for Color-measuring Instruments

Security Functions for MFPs

Document Security SolutionsBiometric Security Solutions

Konica Minolta's Approach

Working to Improve Customer Relationship Management

Heeding the Voice of the Customer

Global Deployment of NPS® Surveys to Measure

Customer Relationship Management in the Business Technologies Business

Conducting a Customer Satisfaction Survey

Developing Quality Improvement Activities from the

Customer's Perspective

Promoting Service Development Using Design ThinkingSystem Built to Provide Globally Uniform Support

CR Masters Program: A Program for Developing

Personnel With Strong Customer Relations Skills

Implementation of Training, Including for External

Partners, to Raise Support Quality in the Business Technologies Business

Promoting the Adoption of Remote Maintenance in the

Healthcare Business

Customer Satisfaction and Product Safety

Quality Management

Quality Management PolicyQuality Management System

Quality Management Policy

Implementing thoroughly a policy that places top priority on customer satisfaction and quality

Konica Minolta has articulated its basic concept for earning customer satisfaction and trust in the Konica Minolta Quality Management Policy. By sharing this policy with Group companies around the world, Konica Minolta tries to ensure that top priority is placed on customer satisfaction and quality.

Based on this policy, the Group strives to improve not only the quality of products, but also quality across the board, including maintenance and service.

Konica Minolta Quality Policy (excerpts)

The Konica Minolta Group ensures maximum satisfaction and trust of its customers, paying the utmost attention to customers and giving top priority to the quality of products and services.

Our concept is to make steady progress in quality based on quantitative measurement and analysis of accurate data. This basic concept is demonstrated in the following affirmations:

  • 1. Achieving the industry's top level of Customer Satisfaction

  • 2. Providing advanced products that satisfy customers' potential needs

  • 3. Establishment and development of a global Quality System.

  • 4. Quality Management in the total life cycle of products and services

  • 5. Continued enhancement of our Quality Assurance Process

  • 6. Minimization of product quality risks

  • 7. Disclosure of product safety information

Konica Minolta Quality Policy

Quality Management System

The executive officer in charge of quality oversees all quality management operations

Konica Minolta, Inc. has established a Quality Assurance Managers' Committee that supervises Group-wide quality management. This committee is chaired by the executive officer, who has responsibility for and authority over the quality issues of the entire Group. The committee meets on a quarterly basis, in principle, and in addition to promoting quality planning and monitoring progress, it shares and scrutinizes information concerning quality assurance. Furthermore, each business works to continuously improve quality by thoroughly implementing the PDCA cycle for quality issues..

Quality Management

Konica Minolta Quality Policy

The Konica Minolta Group ensures maximum satisfaction and trust by our customers, paying the utmost attention to our customers and giving our top priority to the quality of products and services.

Our concept is to make steady progress in quality based on quantitative measurement and analysis of accurate data. This basic concept is demonstrated in the following affirmation:

" Management Based On Facts"

  • 1. Achieving the industry's top level Customer Satisfaction

    We will provide products and services of high quality and high reliability to achieve the industry's top-level of Customer Satisfaction through continuous analysis of market trends and steady efforts for improvement.

  • 2. Providing advanced products that satisfy customers' potential needs

    We will always pursue ease of use from our customers' viewpoint with products on the cutting-edge of trends.

  • 3. Establishment and development of a global Quality System

    We will establish and develop a global integrated Quality System throughout the Konica Minolta Group, including worldwide affiliated companies.

  • 4. Quality Management in the total life cycle of products and services

    We will implement Quality Management to achieve our target based on quantitative measurement of quality at each life-cycle stage of products and services -- starting from planning, developing, manufacturing, usage, and disposal.

  • 5. Continued enhancement of Quality Assurance Process

    We will continue to improve job processes voluntarily and aggressively in order to enhance the Quality Assurance Process.

  • 6. Minimization of product quality risks

    We will take proactive measures and promptly respond to our customers in order to eliminate risks to our customers and our company caused by quality problems.

  • 7. Disclosure of product safety information

    We will actively disclose product safety information to ensure our customers will use our products without any anxiety and to fulfill our accountability to society.

April 1, 2014 Konica Minolta, Inc. President and CEO

Shoei Yamana

Customer Satisfaction and Product Safety

Achieving Top-Tier Quality and Reliability

Konica Minolta's ApproachTaking Steps to Ensure Safety

Product Safety TrainingApplication of Risk Maps

Safe Product Design Based on Combustion Test Data from a Laboratory

New Initiatives for the IoT Era

Improving the Quality Assurance System

Investigating Quality Problems via

Regular Meetings

Addressing Market Quality Issues

Serious Product-related Accidents over the Past Five YearsEnhancing Product Safety Standards

Taking Steps to Improve Quality

Sharing Information on Quality Problems and Cross-deploying Countermeasures within the GroupInitiative for the Development of Quiet ProductsVerifying Whether Printers are Compatible with a Variety of Paper Types

Creating a Quality Assurance System in Service Business Areas in the IoT Era

Background and Issues

Ensuring product safety and security is essential for delivering consistently high quality. It goes without saying that Konica Minolta strives to improve the quality of and ensure the safety of the hardware it provides. With the advancement of IoT, Konica Minolta also recognizes that a more robust approach to IT threats is crucial to sustainable growth, as they can cause serious damage to customer operations.

Vision

To deliver value to customers, Konica Minolta continually seeks to enhance its products, incorporating cutting-edge technologies. Simultaneously, the Group is raising awareness among employees about addressing quality from the customer's perspective, while continuously enhancing quality management activities. The aim is to provide customers with products and services that offer even greater convenience, safety and peace of mind.

Key Measures and KPIs

Enhancing product risk assessments and improving quality awareness: Number of serious product-related accidents*1 in fiscal 2020 2022: 0

*Serious product-related accidents refer to those accidents that cause serious harm to the product user's life and/or body and accidents that cause serious damage to assets other than the product.

Improving the Quality Assurance System

Taking various steps to improve the quality assurance system

Konica Minolta has established a quality assurance system. It is striving to improve its ability to resolve market quality problems that are related to the safety of products and services and is working to avoid serious accidents and reduce quality problems.

Investigating Quality Problems via Regular Meetings

Konica Minolta regularly holds quality meetings across the Group to discuss product safety and other quality-related issues and work to continuously improve quality by thoroughly implementing the PDCA cycle.

Addressing Market Quality Issues

Whenever a problem related to product quality occurs, sales sites around the world are required to register information in a Group-wide critical accident report database immediately. Registered information is instantly sent to the appropriate supervisor and shared with relevant departments. Using this system, the Group takes action to prevent a recurrence by thoroughly investigating all registered incidents, analyzing the causes, implementing countermeasures, and reflecting these in technical and assessment standards. In the unlikely event of a safety-related incident, a report will be immediately filed with the supervisor of the individual business and shared with the executive officer in charge of quality, as well as with the departments in charge of quality assurance, corporate communications, and legal affairs, regardless of the cause of the problem. When a quality problem with a potentially serious risk arises, a Quality Problem Countermeasure Conference is convened based on the Market Quality Management Rules in order to promptly deal with the issue and ensure thorough information disclosure.

Serious Product-related Accidents over the Past Five Years

FY2015

FY2016

FY2017

FY2018

FY2019

Number of Accidents

0

0

0

0

0

Serious product-related accidents: Accidents in which products put the lives of product users at risk or cause serious bodily injury and those in which property other than the products is damaged seriously

Scope: All Konica Minolta products

Enhancing Product Safety Standards

MFPs and printers used in offices must be designed so that misusage and break-downs do not cause electric shocks, smoking, or injuries to users. For this reason, Konica Minolta has established independent product safety standards that exceed the requirements of the legal standards and have rules requiring the detailed check of every aspect of its products. Past quality problems are thoroughly analyzed, the causes are identified, and measures to deal with the problems are investigated. The results of this process are reflected in updated product safety standards. Continuous implementation of this process prevents the recurrence of quality-related problems and prevents new problems from arising.

Taking Steps to Ensure Safety

Expanding efforts to ensure product safety throughout the entire Group

Product Safety Training

Konica Minolta has developed a Group-wide product safety education system for technicians involved in design and development, manufacturing technology, procurement, and quality assurance. The courses are designed to increase technicians' knowledge of product safety issues and increase their awareness of potential problems.

In fiscal 2014, the Group also implemented a Risk Assessment Improvement Program focusing on risk-finding and assessment exercises using actual machines so that the knowledge and skills developed by participants in past training can be put into practice in actual operations. A questionnaire was given to trainees after the course was finishedto verify that it is benefiting them in their actual work. The results have been fed back to the training planners to help improve the content of the program. Going forward, Konica Minolta will continue to improve employees' product safety awareness and raise the level of their skills by providing continuing education.

Risk Assessment Improvement Program

Application of Risk Maps

Konica Minolta utilizes risk maps as a way to assess product safety. These maps describe the degree of risk by the severity and frequency of aftermarket accidents. Using these maps, the Group undertakes objective assessments of the risk of product quality problems in the market and evaluates the effect of countermeasures. The Group pursues high safety levels by using the risk maps as risk assessment tools in the development process as well.

Specifically, the Business Technologies Business and the Healthcare Business consolidate, scrutinize, and identify, in accordance with stated rules, information provided by customers worldwide. With respect to information involved in product safety, they apply risk management techniques. By clarifying its criteria, the Group can respond quickly to the market, determine essential causes, and improve procedures.

Safe Product Design Based on Combustion Test Data from a Laboratory

Konica Minolta designs its products to eliminate any chance of them catching fire or emitting smoke. However, in the event that such an incident or a building fire should occur, products must have a fire-resistant design to prevent the spread of fire. Therefore, fire-retardant plastics are selected when designing products. In order to get accurate data on fire safety, products need to be subjected to combustion testing.

Konica Minolta has set up a reliability testing laboratory at its Tokyo Site Hachioji. This is where tests can be conducted to obtain detailed information on product combustibility using cutting-edge analysis techniques. The laboratory is also equipped with advanced equipment to treat smoke exhaust, enabling combustion testing to be performed without any impact on the local environment.

Taking Steps to Improve Quality

Improving quality awareness in the workplace and promoting the horizontal rollout of effective approaches

Sharing Information about Quality Problems and Cross-deploying Countermeasures within the Group

Konica Minolta is accelerating its Group-wide effort to disclose information regarding quality problems and cross-deploy countermeasures as a policy "One Konica Minolta." The goal is to increase sensitivity to quality issues, thereby resolving problems early on and ensuring better response.

As a specific measure of the cross-deploying efforts, the Group conducts Production Capability Assessments at production sites, including sites outside Japan. Members of each site serve as assessors in this effort to perform mutual cross-assessments of businesses. Assessments are designed to visualize issues at each site by quantifying different aspects, such as the 5S's (Sort, Straighten, Shine, Standardize, and Sustain), visualization, elimination of inefficiencies, and factory management. The 5S's and visualization are intended to encourage proactive improvements on the production floor by presenting ideals as guidelines. Additionally, good practices are cross-deployed by sharing assessment results and examples of initiatives from each site on the company intranet.

In fiscal 2019, measures were taken to further prevent quality fraud by making improvements based on the guidelines established by the department in charge of quality assurance. Horizontal deployment of good practices was also promoted.

Initiative for the Development of Quiet Products

Konica Minolta is pursuing the development of quiet products that do not disturb the office environment by measuring and analyzing various sounds that are generated by MFPs and printers. As part of this effort, the company carried out joint development with a university to find a method for analyzing noise generated by products. After devising a method, the company could predict the noise level of planned products, thereby facilitating the development of quieter office products for more pleasant work environments.

Konica Minolta has obtained ISO/IEC 17025* accreditation for testing product noise

levels. By utilizing its test laboratory with world-class acoustic characteristics, the company is able to carry out the in-house acoustic measurements needed to apply for Germany's "Blue Angel Mark" eco-label.

The inside of the acoustic test laboratory

*ISO/IEC 17025: General requirements for the competence of testing and calibration laboratories.

News Release: Acoustic Test Laboratory Gains Qualification to Apply for Germany's "Blue Angel Mark" Eco-Label

Verifying Whether Printers are Compatible with a Variety of Paper Types

In on-demand commercial printing, customers require the ability to print on various kinds of stock, including heavy-weight, light-weight, glossy, and rough-finish papers. Regarding MFPs in offices, the use of recycled paper or thin paper is increasing due to consideration for the environment.

In response to these needs and to make products compatible with more types of paper, Konica Minolta is conducting verification of image reproduction and paper feeding on a diverse array of paper types in its Media Evaluation Center. The characteristics of several hundred types of paper from around the world are measured, and the center verifies the optimal settings for each type by conducting printing tests on actual MFPs.

Media Evaluation Center

Based on the measurement and verification results obtained, the optimum printing conditions for each paper type are "packaged," and profiles are created to enable high-quality printing on various papers. By equipping its digital printing presses with these paper profiles, Konica Minolta delivers highly reliable condition settings for various types of paper. This in turn enables even greater operating efficiency for customers.

New Initiatives for the IoT Era

Creating a Quality Assurance System in Service Business Areas in the IoT Era

In service business areas, the company believes it must shift from product quality assurance to service quality assurance and establish the most innovative processes. Services are different from manufactured products as they lack physical form, their quality cannot be checked in advance, and they highlight the importance of process in addition to results.

Consequently, it is a challenge to predict and manage highly reliable quality.

Based on this shift, the company is working to build a service commercialization process. This will include establishing quality standards suited to the features of products in this area as well as creating management guidelines. This effort aims to create a mechanism for quality assurance for the entire life cycle of the service business. It also provides training on skills needed in the IoT service business to develop human resources skilled in process management.

Konica Minolta is developing service businesses in proximity to its customers, with sites all around the world. A global outlook is crucial for creating a mechanism that ensures strong quality assurance worldwide.

Quality Issues and Steps to Grow Service Business Areas

Customer Satisfaction and Product Safety

Enhancing the Security of Products and Services

Konica Minolta's ApproachPromoting Secure Development and

Gathering and Addressing Vulnerability

Background and IssuesVision

Operation Processes

Information

Product Security Guidelines

Gathering and Addressing Disclosed

Key Measures and KPIs

Thread Analysis and Security Measures

Vulnerability InformationVulnerability Assessment

KONICA MINOLTA PSIRT

Secure Operation and MaintenanceProduct Security Education

Responding in the Event of a Product Security Incident

Escalation system in the event of a product security incident

Konica Minolta's Approach

Background and Issues

As a "digital company with insight into implicit challenges," Konica Minolta is working to develop and provide products and services utilizing the latest digital technologies such as IoT and artificial intelligence (AI). Yet, simultaneously, cyber-attacks targeting individuals and companies continue to rise, their methods becoming subtler and more sophisticated. Products and services offered by Konica Minolta may also pose a risk of exposing customers to data security threats. Therefore, efforts are required to ensure secure products and services, and to prevent product security incidents in the marketplace. In the event of a security breach, Konica Minolta is committed to pursuing a quick recovery and resolution to minimize customer damage.

Vision

Konica Minolta aims to raise each employee's quality assurance awareness from the customer's point of view, achieve quality of high-reliability in its products and services, and also provide products and services that, in terms of security, can be used safely and securely.

Key Measures and KPIs

Promoting secure development and operation processes (development of product security guidelines)

Gathering and addressing vulnerability information (KONICA MINOLTA PSIRT)

Responding in the event of a product security incident

Number of serious security incidents*1 in products and services: 0

*1 Serious security incidents refer to those product-security incidents that cause serious and significant harm to the product user's business

Promoting Secure Development and Operation Processes

Konica Minolta is committed to developing and operating secure products and services.

Konica Minolta is committed to preventing serious security incidents by developing and providing secure products and services and taking initiatives to operate and maintain them securely.

Product Security Guidelines

Konica Minolta has established product security guidelines as internal regulations and procedures for assuring secure development and operation, and it carries out secure development and operation processes for products and services across the Group. Development and operation in conformity with the product security guidelines apply, in principle, to all products and services of the Konica Minolta Group. This commitment lasts the entire life cycle, from the planning and proposal of products and services to their disposal and end of service, and includes the supply chain, such as development and operation contractors and suppliers.

In addition, Konica Minolta regularly holds company-wide product security promotion meetings to discuss product security issues, and strives to continuously enhance its security level by sharing information on the most effective practices from inside and outside the company.

Thread Analysis and Security Measures

When developing products and services, Konica Minolta conducts threat analyses in the upstream stage of development in order to eliminate system design vulnerabilities and prevent security incidents from occurring down the line. Envisioned security threats to assets that need to be protected are comprehensively identified, and security measures to counter those threats are studied and reflected in the requirements definition.

Vulnerability Assessment

Software developed by Konica Minolta, and the Open Source Software (OSS) modules and applications incorporated into it, may have security flaws called vulnerabilities. Since releasing vulnerabilities can lead to security incidents caused by cyberattacks, vulnerability assessments must be performed during the development phase and any problems must be fixed before the launch of the product or service. Konica Minolta centrally manages OSS usage across the company and has made available multiple static analysis tools (SAST) and dynamic analysis tools (DAST) as company-wide vulnerability diagnostic tools to detect and correct software and system vulnerabilities. In addition, regarding products and services for which security risks are of particular concern, Konica Minolta takes even stronger security measures, such as outsourcing penetration testing.

Secure Operation and Maintenance

Konica Minolta has established and deployed within the company guidelines for secure operation and maintenance so that following market launch customers can continue to use products and services with peace of mind. The guidelines are used in an effort to prevent security incidents caused by oversights or errors in market support.

Product Security Education

Konica Minolta has prepared several educational programs for employees to ensure the implementation of secure development and operation processes with the aim of improving employee awareness and skills in product and service security. In fiscal 2019, the company held programs in all of these areas for every new employee, product security general education, and threat analysis workshops, with approximately 500 employees having attended the sessions. The company will continue to expand and enhance its educational programs, aiming for a higher level of understanding.

Serious Security Incidents over the Past Five Years

FY2015

FY2016

FY2017

FY2018

FY2019

Number of Accidents

0

0

0

0

0

Serious security incidents refer to those product-security incidents that cause serious and significant harm to the product user's business

Scope: All Konica Minolta products

Gathering and Addressing Vulnerability Information

Konica Minolta will continue to gather and address vulnerability information after shipment and/or operation commencement of products and services, to continue providing safe and secure products and services.

Gathering and Addressing Disclosed Vulnerability Information

New vulnerability information for software is discovered and reported daily. In 2019, information on more than 17,000 new vulnerabilities was released by NIST's*2 NVD*3 in the United States in that one year alone. That is why it is necessary to gather vulnerability information and address the vulnerabilities even after the launch of products and services. Konica Minolta monitors this information on a daily basis, including open databases of vulnerability information other than NVD. This allows Konica Minolta to catch information that may affect its products and services at an early stage and spread it throughout the company while implementing countermeasures and mitigation steps as necessary to reduce risks for affected products and services.

  • *2 NIST: National Institute of Standards and Technology

  • *3 NVD: National Vulnerability Database, released by NIST

KONICA MINOLTA PSIRT

In December 2017, Konica Minolta established and began operating KONICA MINOLTA PSIRT*4 as a company-wide organization for cooperation with external public organizations. PSIRT centrally manages information on product and service vulnerabilities throughout the company and takes necessary measures. It also works with the CSIRT team, which handles security incidents for internal IT assets, to establish a system to roll out necessary responses globally. Furthermore, in May 2019, it joined FIRST*5, an international forum of approximately 500 CSIRT and PSIRT teams from 92 countries, and put in place a system that enables intra-company information coordination and contribution to security.

If PSIRT discovers vulnerability information that could affect Konica Minolta's products and services, it follows internal rules governing how to handle vulnerability information to verify, triage, and address the vulnerabilities, and consider the disclosure of information as necessary. The internal rules are based on NIST's Cyber Security Framework*6, FIRST's PSIRT Services Framework*7, and other Japanese and international guidelines.

An important role of PSIRT is to receive and respond to vulnerability information from external stakeholders. If vulnerabilities in Konica Minolta's products or services are discovered by security researchers, security vendors, or others, PSIRT acts as a direct or indirect point of contact to report vulnerability information. In the event a vulnerability report is received, PSIRT will take appropriate action in accordance with international vulnerability handling processes*8*9*10.

  • *4 PSIRT (Product Security Incident Response Team)

  • *5 FIRST (Forum of Incident Response and Security Teams):https://www.first.org/

  • *6 Cyber Security Framework:https://www.nist.gov/cyberframework

  • *7 PSIRT Services Framework:https://www.first.org/standards/frameworks/psirts/psirt_services_framework_v1.0

  • *8 ISO/IEC 29147: Information technology - Security techniques - Vulnerability disclosure:https://www.iso.org/standard/72311.html

  • *9 ISO/IEC 30111: Information technology - Security techniques - Vulnerability handling processes:https://www.iso.org/standard/69725.html

  • *10 Information Security Early Warning Partnership Guideline:https://www.ipa.go.jp/security/ciadr/partnership_guide.html

Responding in the Event of a Product Security Incident

In the event of a product or service security incident in the market, Konica Minolta will strive to respond promptly.

Escalation system in the event of a product security incident

Konica Minolta works to prevent security incidents through secure development and operation processes and to gather and address vulnerability information after launch, but the possibility of problems caused by design bugs and operational oversights or errors is not zero. In addition, cyber-attack methods continue to become subtler and more sophisticated, making it nearly impossible to completely eliminate security incidents.

Konica Minolta responds to market quality issues based on its Market Quality Management Rules. In the event of a product or service security incident, it registers information in a Group-wide serious accident report database, the same as when product quality-related issues occur, and immediately sends the information to relevant persons within the company, including the executive officer in charge of quality. Information is also sent to the executive officer in charge of IT and to CSIRT, and a company-wide effort is made to quickly recover from security incidents, analyze their causes, and prevent recurrence. In the unlikely event of a leakage of a customer's confidential information or personal information due to an incident caused by a product or service, Konica Minolta will apologize and explain the facts to the customer and promptly report the incident to the relevant authorities and organizations.

Customer Satisfaction and Product Safety

Creating New Quality Value

Konica Minolta's Approach

Working to Improve Customer Relationship Management

Heeding the Voice of the Customer

Global Deployment of NPS Surveys to Measure Customer Relationship Management in the Business Technologies BusinessConducting a Customer Satisfaction Survey

Developing Quality Improvement Activities from the Customer's PerspectivePromoting Service Development Using Design Thinking

System Built to Provide Globally Uniform Support

CR Masters Program: A Program for Developing Personnel With Strong Customer Relations SkillsImplementation of Training, Including for External Partners, to Raise Support Quality

Promoting the Adoption of Remote Maintenance in the Healthcare Business

Konica Minolta's Approach

Background and Issues

Long-term customer relationships are essential to the success of Konica Minolta's businesses in office equipment, medical devices, measuring instruments, and other products. In order for Konica Minolta to remain irreplaceable to in an era when customer needs are becoming more sophisticated and diverse, the ability to anticipate potential challenges is required.

Consequently, Konica Minolta understands the importance of visiting customer sites in order to build trusting relationships, foster collaboration, and provide solutions to problems.

Vision

Konica Minolta uses customer feedback to improve its products and services. The company strives to strengthen its relationships by helping customers achieve their unique goals. Konica Minolta aims to continually improve customer satisfaction and form strong relationships that result in a positive reputation and new customer referrals. Furthermore, it will continue to create value for customers and contribute to the identification and solution of social issues.

Key Measures

Continue conducting satisfaction surveys and implementation of improvements based on these results

Improving the accuracy of verification processes for customer value creation using design thinking*

*Design thinking: A mindset and method for discovering the value that customers need. It helps create ways to realize value by applying rapid cycles of observation, understanding, issue definition, idea generation, prototyping, and verification.

Working to Improve Customer Relationship Management

Earning more trust and a higher appraisal from customers by building long-term relationships

Continuous after-sales service is necessary for products such as IT devices, medical devices, and measurement devices handled by Konica Minolta. The company is determined to increase the confidence and trust of its customers through this kind of long-term relationship and hopes to establish rapport that will lead to customers recommending Konica Minolta to other potential customers. That is why the company actively gathers feedback from customers, has established a system for using it to improve products and services, and is attempting to enhance customer relationship management Group-wide.

Heeding the Voice of the Customer

Konica Minolta provides customer assistance in countries around the world through call centers and websites set up for different products and services. In addition to responding promptly to defect information and inquiries received by each contact point, the Group also centralizes that information in its Voice of the Customer* database in an effort to ascertain the status of quality and customer requests. Additionally, each business division periodically conducts customer satisfaction surveys either through an independent organization or in-house. Moreover, the quality assurance and development personnel in addition to sales personnel make visits to customers who use the Group's products.

*The Voice of the Customer (VOC) database stores feedback gathered from call centers, interviews, and the results of market surveys.

Global Deployment of NPS® Surveys to Measure Customer Relationship Management in the Business Technologies Business

In 2012, the Business Technologies Business created a Customer Relations (CR) Division and adopted Net Promoter Score®: NPS®* as a target indicator. It developed its own scientific approach, adding NPS® to the conventional customer satisfaction survey and deploying it globally. Today, the results are being utilized to improve product and service quality.

In fiscal 2017, a transaction survey system was introduced to ascertain customer satisfaction with point-of-contact experiences, such as telephone inquiries and repair service, and to obtain NPS® scores for these points of contact. In fiscal 2019, the system was expanded to more countries, and starting in fiscal 2020, the plan is to deploy a service improvement process based on the system. It will enable the needs and negative experiences of every customer to be ascertained in real time, in order to make rapid improvements. The Division is working to further improve its NPS® scores by developing PDCA cycles to address overall issues brought to light by the NPS® surveys, and individual customer issues identified by the transaction survey.

*Net Promoter Score® (NPS®): an indicator that measures the percentage of customers who recommend the company and its products and services to others. . Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.

Conducting a Customer Satisfaction Survey

To work proactively on improving customer satisfaction, each business unit of the Konica Minolta Group is conducting surveys with the methods tailored to the characteristics of the business concerned.

In Konica Minolta's mainstay Business Technologies Business, the focus is on NPS® as an indicator of the level customer engagement.

Since 2012, Konica Minolta has been expanding the number of countries in which it implements PDCA cycles based on NPS® surveys. The program has been deployed in 18 countries, including Japan, the United States, Europe and the Asia Pacific region. The NPS® survey results have improved every year since the full-scale global survey in fiscal 2014. In fiscal 2017 the score increased by 9 points compared to fiscal 2014, thereby achieving the high target that was set. The fiscal 2018 score and the fiscal 2019 score were up by 6 points* and 8 points, respectively, compared to fiscal 2014.

*In the CSR Report 2019 (fiscal 2018), it was reported as 9 points. Konica Minolta later reviewed the survey results and found that the correct figure was 6 points.

ʲSurvey subjectsʳ Corporate customers to which Konica Minolta sells directly ʲSurvey Periodʳ Each fiscal year

Developing Quality Improvement Activities from the Customer's Perspective

The staff of Konica Minolta's sales companies are in daily contact with customers. As part of the company's effort to improve quality from the customer's perspective, sales company staff participate in sales company joint evaluations and take part in evaluating quality in the development stage. In addition, since fiscal 2017, C-PIUZ* activities have been conducted to obtain the candid opinions of customers regarding quality. These activities allow staff from the quality assurance and development departments to visit customers together with sales company staff. Through this activity, employees gauge customer feedback and make use of this information to improve products and services.

Additionally, Konica Minolta uses design thinking to uncover the value that customers are truly seeking. In fiscal 2018, it established processes and methods for hypothesis verification in the development stage, and to determine whether the value is actually recognized by the customer once the product is on the market. The results are applied to the development of products and services from customer perspectives.

*C-PIUZ: Customer-Problem In Using to Zero, a unique Konica Minolta initiative to reduce quality problems that occur when customers are using the product.

Promoting Service Development Using Design Thinking

Led by the Human Experience Design Center, and with cooperation from the business divisions, Konica Minolta is introducing design thinking and developing value-added services based on a customer-centric perspective, rather than a manufacturer's perspective.

Design thinking is a mindset and a method for discovering the value that customers need. It helps create ways to realize that value by applying rapid cycles of observation, empathy, issue definition, idea generation, prototyping, and verification.

Through the incorporation of design thinking, Konica Minolta is promoting service development from the customer's perspective in its B2C business areas like planetariums and in its B2B business areas such as healthcare and factory equipment maintenance. For example, the company's factory equipment maintenance service involves visiting the customer site and meeting with various stakeholders, and accompanying staff on actual equipment inspection patrols. This enables Konica Minolta representatives to experience the customer's workflow for themselves. After identifying potential issues at the site, the representatives perform a process of iterative hypothesis-making and verification. The customer is then presented with an easy-to-understand proposal for the safe equipment maintenance they need, with a focus on the experience they can expect. A new solution can also be created with the customer, one, for instance, that makes gas and heat usage easy to monitor, which may then lead to maintenance service development.

Konica Minolta will continue to pursue the creation of value that customers are truly seeking, in various business areas. It will also produce innovation that contributes to the identification and solution of challenges for society and local environments.

˙A team works to develop services using design thinking

System Built to Provide Globally Uniform Support

Many customers running global businesses centrally control at their head offices the maintenance and management of IT systems, including MFPs used in offices around the world. When requesting support from a device manufacturer, there are times when the head office, as the single point of contact, and the office actually needing support are in different regions. Accordingly, device manufacturers must also establish a global structure to provide accurate and timely support.

This is why Konica Minolta has built a new system to provide globally uniform support. Support staff assigned to sales companies worldwide have been organized and the contact point for customers has been centralized at the Global Support Center (GSC). By using purpose-built IT tools, support requests received by the GSC are shared with personnel around the world, resulting in timely and appropriate support with the dispatch of local customer engineers to handle hardware issues and specialized staff members providing remote support to solve software issues. Further, the level of service is homogenized by creating a globally shared database of inquiries and the results of responses.

CR Masters Program: A Program for Developing Personnel With Strong Customer Relations Skills

The Customer Relations Department of Konica Minolta's Business Technologies Business has established a CR Master's Program, an education and certification program that systematizes the company's unique customer relations activities with the purpose of improving the skills of personnel who promote customer relations at sales companies around the world.

Later, the sales companies that participate in this program requested that a training program be made available to all employees, not just customer relations members. Konica Minolta met these requests in fiscal 2017 by establishing Customer Relations White Belt, an e-learning program that provides an overview of the customer-centric approach and action guidelines for front-line members.

Clear and succinct training materials were prepared in both English and Japanese, and shared with all sales companies. They were well received by those companies, which have already started using them for training. Translations will be needed for several sales companies where the local language is not English or Japanese, but these materials have already received high praise from sales companies that have begun the training.

A screen from the e-learning material for the Customer Relations White Belt

Implementation of Training, Including for External Partners, to Raise Support Quality

The Business Technologies Business is determined to provide a consistently high level of service to customers everywhere in the world. To that end, it conducts various kinds of technical training on products for the Group's own customer engineers and also for external distribution partners.

In Product Service Training, trainees acquire the skills and knowledge essential for the installation, setup, maintenance, and repair of each products. The training includes two different learning methods: instructor-led training to boost practical skills and knowledge acquisition via e-learning.

Konica Minolta's own technical license certification program, Outward, is designed to keep improving the technical skills of customer engineers. This program is organized into five certification levels starting with Associate and going up through Professional, Expert, and Master to Diploma. It enables the gradual upgrading of skills, from the acquisition of the basic knowledge needed to provide support for Konica Minolta's products to the mastery of high-level specialized skills.

By making these training programs available to more and more engineers worldwide, the Konica Minolta Group will continue to fulfill customer satisfaction globally.

Promoting the Adoption of Remote Maintenance

Products provided by the Healthcare Business are used in life-threatening medical settings, so there is a need for especially rapid responses to product failures and problems. Konica Minolta has established a call center that is operating around the clock, every day of the year, to eliminate interruptions on the medical frontlines. The company established key performance indicators (KPI) focusing on reduction of customer wait time on the phone, improvement of the call center's ability to resolve problems on its own, and improving customer satisfaction. It works to provide better services in all of these areas.

As part of that effort, the call center in Japan has been actively promoting the adoption of remote maintenance for the quick resolution of problems by remotely operating products at customers' locations through the Internet. This allows problems to be fixed remotely without having to send out customer engineers, while reducing downtime for products and services and shortening diagnostic interruptions in healthcare settings.

In fiscal 2019, around 70% of the calls received by the call center were from customers using remote maintenance. As a result, downtime has been shortened by about 50,000 hours per year,*1 representing an approximately twofold reduction in downtime compared to fiscal 2010. The use of remote maintenance has also cut down on driving by engineers, thereby lowering gasoline consumption and CO2 emissions.

In fiscal 2017, Konica Minolta became the first company in the Japanese healthcare industry to obtain COPC certification,*2 and it will continue to maintain and develop the quality of its call center by meeting the strict certification standards.

  • *1 Calculated based on Konica Minolta's indicators

  • *2 COPC certification: An international quality standard for call centers only provided to organizations with outstanding performance.

Customer Satisfaction and Product Safety

Providing Useful Products to Meet Social Needs

Universal Design

Security Functions for MFPs

Concept for the use of universal designExample 1: Initiatives for the MFP bizhub Series

Document Security SolutionsBiometric Security Solutions

Example 2: CUD Certification Obtained for Color-measuring Instruments

Universal Design

Pursuing product creation that includes accessibility and usability

Concept for the use of universal design

Konica Minolta creates products based on the concept of universal design. This involves accessibility, so that anyone regardless of age, gender, stature, or disability can use a product with practically the same degree of ease. It also involves usability, which means making a product as comfortable to use as possible. Universal design is particularly important for products like MFPs, which are often shared by many people working in an office. In light of this, Konica Minolta has prepared its own Universal Design Guidelines based on detailed proprietary standards, and is designing products according to these guidelines. The company also tests the products' usability by having people in wheelchairs and senior citizens use products and provide feedback. The company also conducts verification under various potential usage conditions. Konica Minolta aims to create products for which universal design is not an option but a standard specification, based on the belief that this kind of design is simply common sense and should be available to everyone.

Introduction of Color Universal Design

There is variation in the way individuals perceive colors, and many people find it difficult to see certain hues. Therefore, color universal design seeks to ensure that information is properly conveyed to all people regardless of their color perception. Starting with the color MFP bizhub C650/C550, launched in 2007, Konica Minolta has employed this concept when designing the colors of indicator lights and the colors and shapes of operation buttons. The bizhub C650/C550 has received the color universal design (CUD) certification mark from the non-profit Color Universal Design Organization (CUDO). Konica Minolta actively obtains the same certification with new MFP products.

Example 1: Initiatives for the MFP bizhub Series

Operation panel that can be tilted easily for greater operability

LCD touch panel that enables users to magnify the display by one-touch operation

Start button and data light employing a blue LED that is easy to distinguish

Paper outlet colored gray to make white paper stand out, and with grooves to enable users to pick up paper with greater ease

"Free-grip" that can be grasped from above and below

Example 2: CUD Certification Obtained for Color-measuring Instruments

CUD certification*1 was obtained for the first time in the field of color-measuring instruments for the CM-5 spectrophotometer*2 and the CR-5 colorimeter*3 introduced in December 2009.

Both products ensure that coloration on all screens and in the design of operation panel switches is easy to discern for users of all color perception types. They also ensure ease of operation for diverse users by employing variations in shape, line type, and tone differentiation pattern, and display color descriptors such as "vivid" and "dull" to help users better envision the color scheme.

These new products have made it possible to perform measurements at an array of development and production sites-such as for foodstuffs, medical supplies, and cosmetics-which require careful color management or analysis, without being limited by individual differences in color perception.

  • *1 CUD certification: Certification by the NPO Color Universal Design Organization (CUDO)

  • *2 Spectrophotometer: Instruments that measure color at high precision levels by means of multiple sensors for each wavelength

  • *3 Colorimeter: Instruments that quickly measure color via red, green, and blue sensors using a function similar to that of the human eye

Security Functions for MFPs

Offering document security management as a standard feature

Document Security Solutions

In recent years, there have been growing problems relating to information security, including computer hacking, viruses, and information leaks. Even for MFPs, which are evolving into network information stations, the need for document security is greater than ever before. In response to these social needs, Konica Minolta has developed various security solutions for its products. In order to give customers a strong sense of security, the following are all standard features in MFPs.

User Authentication

This function can restrict access for individual users.

Department Management

In conjunction with user authentication, this function enables sophisticated user access and cost control.

Network Security

The network security system supports the following functions: IP filtering to prevent unauthorized access from unknown computers or devices; IPsec to prevent the eavesdropping of network data; Secure Sockets Layer (SSL); and, in the latest models, IEEE802.1X.

Memory Erase

This function can completely erase document information from the hard drive after printing and before disposing of a hard drive.

Box Security

In addition to the user authentication and department management functions, customer document information can be protected using a box password or confidential document password.

PDF Encryption

This function enables PDF documents to be created, encrypted, and sent out via email. Information saved on the hard drive can also be encrypted.

Ensuring the Reliability of Security Features

Konica Minolta began to obtain ISO 15408 certification for its MFPs early on. This certification is the international standard for ensuring the reliability of security features. Since the launch of the color MFP bizhub 7145 in December 2002, almost every subsequent model has obtained the certification.

Security Solutions

Biometric Security Solutions

Reliable and quick security management using finger vein authentication

The AU-101/AU-102 Biometric Authentication Unit is included as an option in Konica Minolta MFPs and printers. This biometric finger vein reader allows highly secure, simple, and immediate user access. When combined with the standard features of user ID and password authentication, this function realizes even more sophisticated security management. The Biometric Authentication Unit can authenticate users simply by scanning a finger. As users are identified by vein pattern, an individual characteristic thatis difficult to forge, user access management can be extremely reliable. Furthermore, since printer output can be initiated by placing a finger on the authentication pad, unauthorized people are prevented from seeing or accidentally taking confidential printouts.

AU-102 Biometric Authentication Unit

Basic Concept

Konica Minolta is committed to fulfilling its social responsibility not only in terms of its own products but also throughout the supply chain,* based on relationships of trust with suppliers.

Konica Minolta creates innovative products and services that contribute to society and pursues customer satisfaction under its management philosophy of "The Creation of New Value."

Konica Minolta views the suppliers that provide and produce raw materials and parts, carry out distribution, and offer services as essential partners in its business activities. The Group strives to build strong partnerships with these business partners, based on fair and transparent transactions, with a commitment to the shared goal of providing innovative products and services in a timely manner to customers all over the world.

As a global company striving to get a trust from worldwide society, Konica Minolta pursues its CSR procurement with consideration for labor issues (human rights), ethics, the environment, safety and health throughout the supply chain, including at its suppliers.

Additionally, the Group is taking steps to address conflict mineral issues, seeking to prevent violations of human rights in conflict areas from which mineral resources used in products are sourced.

*Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.

Konica Minolta's Supply Chain Management

Supply Chain Management

Policies on Procurement

Konica Minolta Procurement Policy

Konica Minolta Code of Conduct for SuppliersKonica Minolta Conflict Minerals Compliance Policy

Structure for Promoting CSR Procurement

Cooperating with External Organizations

UN Global Compact

Responsible Business Alliance (RBA)

Konica Minolta's CSR Procurement Initiatives

Konica Minolta's CSR Procurement Promotion ProgramTargets and Results

Requesting CSR Activities to Suppliers

CSR Assessments Using a Self-Assessment QuestionnaireCSR Audits

Support and Incentives for Suppliers

Training for Relevant Personnel at Konica Minolta

Procurement Initiatives

Procurement Collaboration System

Environmental Collaboration Aimed at Strengthening the

Management of Chemical Substances Included in the SupplyChain

Holding Suppliers' MeetingsCommendation of Suppliers

Konica Minolta's Initiatives Regarding the Issue of ConflictMinerals

Framework for Initiatives

Step 1. Establish strong company management systemsStep 2. Identify and assess risk in the supply chain

Step 3. Design and implement a strategy to respond to identified risks

Step 4. Carry out independent third-party due diligence audits for SORs

Step 5. Report annually on supply chain due diligence

Cooperating with External Organizations

Targets and Results

Response to Customers' Request for Survey

Office Business and Professional Print Business Conflict

Minerals Survey

Other Initiatives

Responsible Supply Chain

Konica Minolta's Approach

Background and Issues

The Konica Minolta Group recognizes that, around the world, many people are forced to work without respect to their rights or in deplorable conditions, and that children and foreigners (migrants) are particularly vulnerable. The Group also understands that companies must fulfill their social responsibilities, including making improvements in the areas of labor issues (human rights), ethics, the environment, and health and safety, not only related to their own products, but also along the entire supply chain involved in delivering these products to customers.

*Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.

Vision

Konica Minolta aims to contribute to building a sustainable society that takes social issues such as human rights into consideration. To achieve this goal, we are working together with our clients along the entire supply chain to help solve these social issues. Through such initiatives, the business value of both Konica Minolta and our clients is improved, and by providing products that our customers can feel comfortable purchasing, we can 'create shared value'.

Key Measures and KPIs

CSR procurement (FY2020 to FY2022)

CSR activity participation requests to suppliers: 100% implementation

CSR assessments: Completion at Group production sites and at approximately 100 important suppliers' sites

CSR RBA VAP audits: Completion at important Group productions sites, and at five particularly important suppliers'

sites

Addressing the issue of conflict minerals (FY2020 to FY2022)

Response rate from suppliers regarding the conflict minerals survey: Maintaining over 90%

Response to customer survey requests: 100% fulfill

Responsible Supply Chain

Konica Minolta's Supply Chain Management

Supply Chain Management

Structure for Promoting CSR Procurement

Policies on Procurement

Konica Minolta Procurement Policy

Konica Minolta Code of Conduct for SuppliersKonica Minolta Conflict Minerals Compliance Policy

Supply Chain Management

Working to establish a sustainable society in which human rights are respected

As a global company, Konica Minolta operates in 50 countries around the world. The total value of the Group's procurement is approximately 530 billion yen. By region, Japan accounts for 36% of this, China, for 26%, Europe for 14%, the United States for 13%, and ASEAN and other regions for 11%.

Konica Minolta carries out production activities utilizing its high-quality manufacturing skills as a manufacturer, with production sites primarily in Japan, China and the ASEAN region. The Konica Minolta Group divides procurement into the goods used directly in production and the goods and services needed indirectly for production, company operation, business activities, and development. It treats these as direct materials procurement and indirect materials procurement, respectively.

In direct materials procurement, distribution costs and environmental impact can be reduced by procuring parts and raw materials needed in production from regions close to the production site. Accordingly, the Group's basic policy is to practice regional procurement, procuring close to the production site those materials that can be acquired locally. At the same time, it strategically employs global procurement, selecting optimal procurement sources worldwide, such as for materials that have cost savings when purchased in bulk and high-value added parts that require a high level of technical competence. In such cases, procurement departments in Japan conduct centralized procurement.

Due to large-scale chemical explosions and the tightening of environmental regulations in China in recent years, operations have been temporarily suspended at certain industrial parks within the country. This caused a halt to the supply of some raw materials to Konica Minolta, resulting in a temporary situation in which the stock of raw materials was running low in production. In order to ensure that such a situation causes no delay in the supply of products to its customers, Konica Minolta is working to trace the supply of routes of raw materials back to the crude raw materials, and to seek out suppliers outside of China, secure multiple suppliers, and consider alternative materials for high-risk raw materials.

Regarding indirect materials procurement, efficient procurement is pursued through a combination of expense items to procure at sites in each country and procurement optimized worldwide through global contracts.

In Konica Minolta's primary field, the Office Business, service-related costs are incurred due to work required for equipment maintenance after sale. Service-related costs have also increased due to the expansion of the IT solutions the Group provides as the Group shifts to a business model based on the sale of services rather than the sale of products.

Konica Minolta is shifting from procurement in China to procurement in the ASEAN region, particularly Malaysia, in line with its digital manufacturing approach, which employs manufacturing system that do not overly rely on certain "people, places, countries, or trends."

Konica Minolta views all of the suppliers that supply and produce materials such as raw materials and parts or provide logistics and other services as indispensable partners in its business activities.

Konica Minolta is working with suppliers to build a trusting relationship through transparent and equitable transactions in order to achieve the shared goal of providing innovative products and services in a timely manner to customers all over the world.

Konica Minolta recognizes that there are workers all over the world who are forced to work with no consideration of their rights or who have to work in deplorable circumstances, and child and foreign (migrant) workers are particularly susceptible to these negative circumstances.

Konica Minolta promotes CSR procurement throughout its supply chain,* helping to create sustainable societies. The company believes that enterprises are not only responsible for their products, but also socially responsible to improve conditions of labor (human rights), ethics, the environment, safety and health, throughout the supply chain that delivers products to customers. Konica Minolta practices CSR procurement in order to realize these improvements at its manufacturing bases, and works closely with the suppliers who supply raw materials and parts for its products.

In order to fulfill social expectations such as respect for human rights, Konica Minolta not only addresses this issue at Group production sites but also cooperates with manufacturing and logistics suppliers. It also believes this improves the corporate value of both Konica Minolta and its suppliers. Further, this cooperation enables the customers to purchase the company's products with peace of mind and to know that, by doing so, they are contributing to the development of a sustainable society. Konica Minolta recognizes that CSR procurement is more than just the social responsibility of a global company; it is also convinced that improving working conditions make employee satisfaction higher and attrition rates lower. This in turn reduces business risk and raises quality throughout the supply chain. There are plenteous reasons for the proactive approach.

*Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.

Konica Minolta's CSR Activities in the Supply Chain

Policies on Procurement

Establishing supply chain policies and continuously pursuing improvements

In fiscal 2008, the Konica Minolta Group established the Konica Minolta Procurement Policy as a policy covering procurement activities overall in order to promote initiatives related to fair procurement. The basic stance of the policy is based on the key words, "open," "fair," "global," "compliance," and "ecology." The policy also clarifies requests to suppliers.

Building on this policy, the Group established the Konica Minolta Code of Conduct for Suppliers based on the exact text of the RBA* Code of Conduct when Konica Minolta joined the RBA in fiscal 2013. With this code, Konica Minolta asks for the compliance of suppliers in its supply chain to help create a sustainable society by ensuring continuous improvement in various areas. These areas include labor rights (forced labor, child labor, freedom of association, etc.), ethics (intellectual property, privacy, anti-corruption, etc.), the environment (energy use, impacts of climate change including CO2 and greenhouse gas emissions, water use, pollution, waste, resource use, etc.), and health and safety (emergency preparation, occupational accidents, occupational health, etc.). In addition, in fiscal 2014, the Group established the Konica Minolta Conflict Minerals Compliance Policy, based on which it is taking steps to address conflict mineral issues. The basic contract with suppliers includes "compliance with the Konica Minolta Code of Conduct for Suppliers," and the Group requests suppliers to comply with this Code.

*Responsible Business Alliance (RBA): An organization that promotes CSR in the supply chain.

Konica Minolta Procurement Policy

The Konica Minolta Group pursues customer satisfaction by creating innovative products and services that contribute to the development of society, according to our management philosophy, "The Creation of New Value." In procurement activities, we establish firm partnerships with our suppliers based on fairness and transparency, and aim to build a sustainable society by fulfilling social responsibilities with our suppliers.

  • 1. OPEN

    We will build transparent and reliable relationships with our suppliers and manage procurement in an open manner, while sharing objectives from a long-term and global perspective.

  • 2. FAIR

    We will carry out transactions under the principle of free competition with rational evaluation criteria, and seek mutual benefit with suppliers.

  • 3. GLOBAL

    We will have a global outlook and carry out procurement in the regions that best suit our operational needs.

  • 4. COMPLIANCE

    We will comply with all relevant laws and regulations, corporate ethics, and internal policies and regulations.

  • 5. ECOLOGY

    We will contribute to the international society and local communities by striving to take the lead in environmental protection, while reducing the impact of our operations on ecosystems.

Request to Suppliers

Based on strong partnerships with our suppliers, we ask our suppliers to focus on the following areas in order to increase customer satisfaction and fulfill social responsibilities.

  • 1. Excellent quality

    Ensuring the safety of products and services, including compliance with the safety standards of each country and region, and improving quality to meet the demands of customers

  • 2. Reasonable prices

    Pursuing prices with market competitiveness

  • 3. Response to changes in demand

    Developing a stable supply system that can respond flexibly to changes in demand

  • 4. Compliance with laws, regulations, and corporate ethics

    Complying with all laws and regulations of each country and region, and with corporate ethics

  • 5. Environmental protection

    Undertaking environmentally conscious business activities and material procurement

  • 6. Respect for the human rights of workers

    Respecting basic human rights, including the prohibition of child labor, forced labor, and discrimination based on ethnicity, gender, and any other grounds

  • 7. Health and safety

    Providing safe and clean work environments

  • 8. Information security

    Continuously improving information security

  • 9. Firm management foundation

    Building a firm management foundation to ensure a continuous and stable supply of materials

April 1, 2014 Konica Minolta, Inc. President and CEO

Konica Minolta Code of Conduct for Suppliers

Konica Minolta Conflict Minerals Compliance Policy

Structure for Promoting CSR Procurement

Establishing a structure for promoting CSR procurement throughout the supply chain

Konica Minolta has established a group-wide structure for promoting CSR procurement and addressing conflict mineral issues in order to fulfill its social responsibility across the entire supply chain.

Konica Minolta's CSR procurement promotion structure is incorporated into its environmental management system, and they are both run by an executive officer. Under this structure, Konica Minolta reviews group-wide progress related to CSR procurement and conflict mineral issues and agrees on targets and action plans.

Konica Minolta's structure for promoting CSR procurement

Responsible Supply Chain

Implementing CSR Procurement

Cooperating with External Organizations

UN Global Compact

Responsible Business Alliance (RBA)

Konica Minolta's CSR Procurement Initiatives

Konica Minolta's CSR Procurement Promotion ProgramTargets and Results

CSR Requests to Suppliers

CSR Assessments Using a Self-Assessment QuestionnaireCSR Audits

Support and Incentives for Suppliers

Training for Relevant Personnel at Konica Minolta

UN Global Compact

In 2009, Konica Minolta signed the Global Compact, which consists of 10 principles, related to human rights, labor, the environment, and anti-corruption, advocated by the United Nations.

The Global Compact is a set of voluntary action principles for businesses proposed in 1999 by then UN Secretary-General Kofi Annan and officially established at the United Nations Headquarters in 2000. It is an initiative to achieve sustainable growth on a global scale by encouraging businesses to act as upstanding members of the international community by demonstrating responsible, creative leadership in solving various worldwide problems, including global warming, environmental problems, and economical stratification in society.

Konica Minolta participates in various working groups of the Global Compact Network Japan, and it makes use of these experiences in its CSR procurement initiatives.

Konica Minolta Participates in UN Global Compact

The United Nations Global Compact Website

Responsible Business Alliance (RBA)

Konica Minolta joined the RBA in October 2013 and has been acting as a member to strengthen its CSR procurement in the supply chain.

The RBA, which is made up of more than 150 companies, including the world's leading electronics manufacturers and their major suppliers, works to improve worker rights (human rights and working conditions), ethics, health, and safety in the supply chain.

Konica Minolta Joins "Electronic Industry Citizenship Coalition"

RBA

The RBA Code of Conduct (Source: RBA materials)

  • 1. Freely Chosen Employment

  • 2. Young workers

  • 3. Working Hours

  • 4. Wages and Benefits

  • 5. Humane Treatment

  • 6. Non-Discrimination

  • 7. Freedom of Association

  • 1. Permits & Reporting

  • 2. Pollution Prevention

  • 3. Hazardous Substances

  • 4. Solid Waste

  • 5. Air Emissions

  • 6. Materials Restrictions

  • 7. Water Management

  • 8. Energy Consumption and Greenhouse Gas Emissions

  • 1. Company Commitment

  • 2. Management Accountability and Responsibility

  • 3. Legal and Customer Requirements

  • 4. Risk Assessment and Risk Management

  • 5. Improvement Objectives

  • 6. Training

  • 7. Communication

  • 8. Worker Feedback, Participation and Grievance

  • 9. Audits and Assessments

  • 10. Corrective Action Process

  • 11. Documentation and Records

  • 12. Supplier responsibility

  • 1. Occupational Safety

  • 2. Emergency Preparedness

  • 3. Occupational Injury & Illness

  • 4. Industrial Hygiene

  • 5. Physically Demanding Work

  • 6. Machine Safeguarding

  • 7. Sanitation, food, housing

  • 8. Health & Safety Communication

  • 1. Business Integrity

  • 2. No lmproper Advantage

  • 3. Disclosure of Information

  • 4. Intellectual Property

  • 5. Fair Business, Advertising and Competition

  • 6. Protection of Identity and Non-Retaliation

  • 7. Privacy

  • 8. Responsible Sourcing of Minerals

Konica Minolta's CSR Procurement Initiatives

Working to improve labor conditions (human rights), ethics, the environment, and safety and health in the supply chain

Companies have to take social responsibility not only for their own products but also for improving labor conditions (human rights), ethics, the environment and health and safety in the supply chain used to deliver products to customers. In line with this recognition, Konica Minolta promotes CSR procurement that pursues these kinds of improvements together with its business partners who supply and produce materials such as raw materials, parts and components, as well as Group production sites, with the aim of establishing a sustainable society in which human rights are respected.

Laws such as the California Transparency in Supply Chains Act and the UK Modern Slavery Act 2015 have been enacted in recent years. More than ever, companies' human rights initiatives must also address the issues of slavery and human trafficking. In response to social demands like these, the RBA*2 has been updating its code of conduct and various systems. As an RBA member, Konica Minolta will make use of the RBA's framework to address these social issues.

Before starting a partner relationship with Konica Minolta, a prospective supplier must complete a questionnaire on labor rights, the environment, ethics, and health and safety, based on the Konica Minolta Code of Conduct for Suppliers, and undergo an on-site inspection by Konica Minolta employees.

*1 Supply chain: The series of activities involved in delivering a product or service to a customer, ranging from procurement and production to distribution and sales.

*2

Responsible Business Alliance (RBA): Organization that promotes CSR in the supply chain

Konica Minolta's CSR Procurement Promotion Program

Konica Minolta strives to ensure socially responsible procurement by requesting suppliers to participate in CSR activities, assessments, and audits, and thus helping them to improve.

Konica Minolta has implemented a four step CSR procurement promotion program to address any issues related to labor conditions (human rights), ethics, the environment and health and safety in its supply chain.

First, suppliers are requested to carry out CSR activities based on clearly articulated standards to be maintained in line with Konica Minolta's procurement policies and Supplier Code of Conduct. Suppliers from which the Group makes purchases directly are asked to acknowledge and implement the Code to their upstream suppliers.

About 100 suppliers identified to be particularly important to Konica Minolta's business in terms of transaction volume or the irreplaceability or importance of the parts they handle are requested to use the Responsible Business Alliance's Self-Assessment Questionnaire (RBA SAQ) to carry out a CSR assessment that confirms their level of implementation of the Konica Minolta Supplier Code of Conduct. Where assessment results do not meet targets, Konica Minolta requests suppliers to implement corrective actions.

Further, the Group conducts CSR audits on suppliers that are especially important for its business and on suppliers that did not achieve targets despite making improvements. CSR audits are carried out primarily in the style of Konica Minolta CSR Audits*1, with an RBA third-party audit (VAP audit*2) conducted in case as appropriate.

Konica Minolta provides support to help suppliers improve any issues that come to light through the CSR assessments and CSR audits. The aim of Konica Minolta's CSR procurement promotion program is ultimately to empower its suppliers to implement self-directed CSR activities.

Finally, the Group sometimes considers ending business with suppliers that do not make any improvement at all despite the support provided.

*1 Konica Minolta CSR Audit: Konica Minolta auditors who have RBA qualifications implement an audit based on RBA Audit standards.

*2

RBA third-party audit (Validated Audit Program [VAP] audit): An audit conducted by a third-party auditing organization certified by the RBA to confirm the status of compliance with the RBA Code of Conduct based on audit standards, identify points for improvement, and encourage correction. As a third-party CSR audit, the RBA VAP audit is one of the most trusted in the world.

Konica Minolta Supplier Code of Conduct

Konica Minolta uses the RBA Code of Conduct as the Konica Minolta Supplier Code of Conduct, which it provides in Japanese, English, and Chinese. See the RBA Code of Conduct for other languages.

RBA Code of Conduct (Source: RBA website)

Konica Minolta's CSR Procurement Promotion Program

Targets and Results

Plan Duration FY2014 to FY2016

Key Measures and KPIs

Percentage of suppliers requested to carry out CSR activities

Targets

100% implementation

Number of CSR assessments: All Group production sites and important suppliers conducted assessment

Group production sites: All sites Suppliers: More than 130 suppliers

Number of CSR audits: Audits conducted at particularly important Group production sites and suppliersGroup production sites: 3 sites Suppliers: 2 suppliers

Plan Duration FY2017 to FY2019

Key Measures and KPIs

TargetsPercentage of suppliers requested to carry out CSR activities

100% implementation

Number of CSR assessments: All Group production sites and important suppliers conducted assessment

Group production sites: All sites Suppliers: More than 120 suppliers

Number of CSR audits: Audits conducted at particularly important Group production sites and suppliersGroup production sites: 2 sites Suppliers: 2 suppliers

FY2020 to FY2022

Targets

Target Year

Percentage of suppliers requested to carry

100% implementation

End of fiscal 2022

out CSR activities

Number of CSR assessments: All Group

Implement at group production sites

production sites and important suppliers

and about 100 important suppliers

conducted assessment

Number of CSR third-party audits (RBA-

Particularly important group

VAP) :particularly important Group

production sites and 5 particularly

production sites and suppliers

important supplier

Requesting CSR Activity to Suppliers

Suppliers worldwide are sent copies of Konica Minolta's procurement policies and the Konica Minolta Supplier Code of Conduct and asked to comply with them. The aim is to get suppliers to understand and promote the CSR procurement policies and standards required by Konica Minolta.

From fiscal 2017 to fiscal 2019, while requesting suppliers to undertake CSR activities, Konica Minolta also confirmed their cooperation with the policies and standards by written consent. The response rate was 98%.

CSR Assessments Using a Self-Assessment Questionnaire

CSR assessments using a Self-Assessment Questionnaire are conducted at production sites and important suppliers, in order to assess the level of implementation of the Konica Minolta Supplier Code of Conduct.

Konica Minolta has conducted CSR assessments using the self-assessment questionnaire based on the RBA framework since fiscal 2009. The CSR assessment evaluates site initiatives to address social issues such as labor (human rights) protection, ethics, and health and safety, as well as environmental issues such as minimizing environmental impact. Konica Minolta classifies the results of the self-assessment questionnaire from rank A to C. The targets for overall scores are rank A for all Group production sites and rank B or higher for all suppliers. Rank C suppliers are considered to be high-risk, and CSR audits are conducted for those suppliers that have not achieved their targets even after implementing improvements.

In fiscal 2019, two Group production sites and 44 suppliers implemented the assessment, with all production sites achieving rank A and all suppliers achieving rank B or higher on their overall score. There were no high-risk rank C suppliers. These assessment results met the target, but suppliers whose scores for specific components such as labor issues (human rights), ethics, environment, or health and safety revealed weaknesses were asked to make voluntary improvements. It is also notable that there was a trend toward relatively low scores in the area of ethics and the environment.

CSR Audits

Konica Minolta has been promoting improvement to the audit findings in its major production sites since 2014, by implementing RBA third party audit (VAP audit) at first. Based on this knowledge, Konica Minolta CSR Audits*1 have been introduced at the companies who produce the main units for multi-functional peripherals (MFPs)/printing equipment. In fiscal 2017, the audit target was expanded to include not only the company manufacturing the main unit of the MFPs, but also materials for MFPs, including the company that produces consumables such as toner cartridges, etc., and a CSR audit was conducted. Bases for the final production in Konica Minolta's mainstay business, the Office Business, are mainly located in Japan, China, and ASEAN. Konica Minolta places great importance on audits at those bases in order to practice high-quality craftsmanship as a manufacturer and to carry out CSR-oriented production activities. The implementation rate of RBA third party audits (VAP audits) and Konica Minolta CSR Audits up to fiscal 2019 is 71%. These CSR audits uncovered several issues, such as management of total working hours, implementing training in areas such as labor and ethics, and the construction of an internal auditing system. To solve these issues, the audited company created and implemented an improvement plan, and a follow-up audit showed that the improvements have been completed. The non-conformance rate in RBA third party audits (VAP audits) and Konica Minolta CSR Audits was 7%, and there werenoprioritynon-conformance points at the completion of the follow-up audits. The completion rate for correction of other non-conformities was 50%. Konica Minolta sites will continue to improve conformity through the use of plan-do-check-act (PDCA) cycles.

*1 Konica Minolta CSR Audits are performed by Konica Minolta auditors with RBA qualifications, using RBA auditing standards.

At Konica Minolta Business Technologies (WUXI) Co., Ltd., located in China, an RBA third-party audit (VAP audit) was conducted in fiscal 2014 and made corrective actions. In fiscal 2017, the new internal audit system was used to conduct a self-evaluation and make improvements on problem areas such as labor, safety and health. The internal audit system will remain in use in the future to make continued improvements.

Konica Minolta Business Technologies (Dongguan) Co., Ltd. in China, and Konica Minolta Business Technologies (Malaysia) Sdn. Bhd. have already completed Konica Minolta CSR audits. In order to improve issues identified in their audits of fiscal 2016, the two companies established internal audit systems and implemented training about RBA audit standards and CSR issues to their internal auditors. This led to the establishment of systems that enable continuous improvement. The two sites are also continuing to work on improvements concerning some of their remaining labor issues.

In fiscal 2017, a Konica Minolta CSR Audit was conducted to Konica

Minolta Supplies Manufacturing Co., Ltd. and Konica Minolta Supplies Manufacturing France S.A.S. Although the audit showed the commonly observed issue of a need to set up an internal audit system, there were no particular issues uncovered regarding immigrant labor and child labor based on the RBA standards (A1.4 and A2.1). A follow-up audit was conducted at Konica Minolta Supplies Manufacturing in fiscal 2018, and it confirmed that improvements to the labor(human rights) and management system had been completed. Konica Minolta also confirmed that the management system had been improved at Konica Minolta Supplies Manufacturing France.

Allied Precision Manufacturing in Malaysia implemented a Konica Minolta CSR audit in fiscal 2015, and took corrective actions withKonica Minolta's support. A follow-up audit was implemented in fiscal 2016, confirming that improvements to ethics, environment, and management systems had been completed. The company is still working on improving certain issues.

Konica Minolta CSR Audit at Konica Minolta Supplies Manufacturing France S.A.S.

In addition, a Konica Minolta CSR audit was done in fiscal 2016 at Dong Guan Konka Mould Plastic Co., Ltd. in China, and corrective actions were taken with Konica Minolta's support. A follow-up audit was implemented, confirming that improvements to the environmental issues had been completed. The company is still working on improving certain issues.

A Konica Minolta CSR Audit was also conducted at the factory which produces office equipment product on a consignment basis in China. The consigned production factory has incorporated a management system based on the RBA Code in the areas of labor, ethics, environment, safety and health, and confirmed that there is a firm framework in place for making continued improvements.

In fiscal 2019, a new Konica Minolta CSR Audit was conducted at the factory that produces Office equipment products on a consignment basis in China, and improvement efforts were implemented with the support of Konica Minolta. A follow-up audit confirmed that improvements to some of the labor issues and the management system had been completed. The company is still working on improving certain issues.

Support and Incentives for Suppliers

Aiming to encourage suppliers to engage in self-directed CSR activities, Konica Minolta explains to suppliers the social expectation for CSR procurement, including customer demands, and provides education related to RBA audit standards required in CSR audits. Also, based on audit results the Group provides suppliers with support for improvements that make use of Konica Minolta's knowledge.

In fiscal 2017, a Chinese manufacturer, Dong Guan Konka Mould Plastic Co., Ltd., which implemented a Konica Minolta CSR Audit in fiscal 2016. was given support to conduct its own internal audit the following year, including education to their internal auditors. This support is helping the company to establish a framework for its own continuous improvement.

Training for Relevant Personnel at Konica Minolta

In order to succeed with CSR procurement, the Konica Minolta Group must ensure that relevant personal understand its CSR procurement objectives and tools for implementation. Every year, training is conducted on the importance of helping to create a sustainable society by promoting CSR procurement. Other topics include social trends related to CSR, trends in laws and regulations worldwide, and the need for internal CSR procurement initiatives. Training is provided to about 80 people each year, including members of the human resources, procurement (buyers), and environmental affairs departments in Konica Minolta, Inc. and its production sites.

Internal education at Konica Minolta Business

Technologies (DONGGUAN) Co., Ltd.

Responsible Supply Chain

Addressing the Issue of Conflict Minerals

Konica Minolta's Initiatives Regarding the Issue of

Conflict Minerals

Framework for Initiatives

Step 1. Establish strong company management systemsStep 2. Identify and assess risk in the supply chain

Step 3. Design and implement a strategy to respond to identified risks

Step 4. Carry out independent third-party due diligence audits for SORs

Step 5. Report annually on supply chain due diligence

Cooperating with External Organizations

Targets and Results

Response to Customers' Request for Survey

Office Business and Professional Print Business Conflict

Minerals Survey

Other Initiatives

As a global company with a supply chain stretching around the world, Konica Minolta addresses the issue of conflict minerals in order to prevent human rights violations associated with conflict.

It has been pointed out that the mining of the mineral resources for tungsten, columbite-tantalite, gold, and cassiterite in the Democratic Republic of the Congo or adjoining countries can end up fueling conflict.

Seeking to prevent conflict-related violations of human rights such as child and forced labor, the Organization for Economic Co-operation and Development (OECD) established Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas*1 and requires that companies take responsible initiatives in the supply chain. Additionally, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was passed in 2010 in the United States, requires companies listed on a U.S. stock exchange to disclose information about conflict minerals*2 derived from regions of conflict. Corporate organizations also pursue initiatives addressing conflict minerals, including the Responsible Minerals Initiative (RMI))*3, which has a global reach, and in Japan the Responsible Minerals Trade Working Group, established as part of the Japan Electronics and Information Technology Industries Association (JEITA)*4.

*1

A measure for identifying and assessing the risk of infringement of human rights based on fact-finding surveys in the supply chain for minerals, and preventing or mitigating adverse effects

  • *2 Conflict minerals: Cassiterite (tin), coltan (columbite-tantalite), gold, wolframite (tungsten), or their derivatives; also known as 3TG.

  • *3 Responsible Minerals Initiative (RMI): An organization that spearheads initiatives addressing conflict minerals to which over 300 companies and organizations around the world belong.

  • *4 Japan Electronics and Information Technology Industries Association (JEITA): An organization to which about 400 companies and organizations belong, primarily in Japan's IT and electronics field.

Konica Minolta Conflict Minerals Policy Statement

Framework for Initiatives

Konica Minolta carries out initiatives addressing conflict minerals in line with the Five-Step Framework for Risk-Based Due Diligence in the Mineral Supply Chain in the OECD Guidance.

Step 1. Establish strong company management systems

Konica Minolta has established the Konica Minolta Conflict Mineral Policy Statement, which addresses the prevention of human rights violations caused by conflicts. This statement requires that suppliers are familiar with Konica Minolta policies on conflict minerals and that conflict mineral policies are incorporated into contracts with business partners.

Konica Minolta's conflict mineral programs are incorporated into its sustainability promotion system, which is led by an executive officer. In addition, a mechanism for implementing conflict mineral surveys, including production sites in Japan and overseas, has been prepared to identify the smelters or refiners (SORs) in the supply chain. The management and staff in the procurement divisions in charge of procurement are given training to enhance their understanding of conflict mineral initiatives and motivate them.

Step 2. Identify and assess risk in the supply chain

Using the Conflict Minerals Reporting Template (CMRT) and Cobalt Reporting Template (CRT) issued by RMI, Konica Minolta implements surveys of conflict mineral and cobalt. The survey confirms the content of 3TG and cobalt, surveys the country of origin, identifies the SORs in the company's supply chain, and confirms the business partners' due diligence. Based on the results of the survey and information about the identified SORs in the supply chain, Konica Minolta assesses the risk to the supply chain overall, by each business partner, and by each product. These results are reported to the executive officer in charge.

Step 3. Design and implement a strategy to respond to identified risks

Based on the results of the risk assessment, Konica Minolta requests all suppliers to take any needed steps to ensure that their business is not in any way complicit in the funding of conflict forces. Konica Minolta conveys any customer concerns to suppliers using smelters and refiners that customers have expressed concerns about, and asks that they respond appropriately, such as reassessing the SOR in question. Indirect efforts are also made to eliminate the risk of conflict complicity, such as activities building awareness about the issue of conflict minerals.

Step 4. Carry out independent third-party due diligence audits for SORs

Konica Minolta is a member of RMI, which operates an audit program (the Responsible Minerals Assurance Process [RMAP]) certifying that SORs are conflict-free.* In addition, through JEITA activities, SORs are encouraged to participate in RMAP. *SORs that conform to the Responsible Minerals Assurance Process managed by RMI.

Step 5. Report annually on supply chain due diligence

Konica Minolta's conflict mineral initiatives are disclosed every year on its website and in its CSR report.

Cooperating with External Organizations

Konica Minolta promotes programs addressing conflict minerals in cooperation with external organizations.

Konica Minolta is a member of RMI, which leads global initiatives on conflict mineral issues. RMI's Conflict Minerals Reporting Template is adopted worldwide. RMI also operates a program that certifies which SORs are conflict-free, and it operates other activities designed to promote a responsible supply chain for mineral procurement.

In Japan, Konica Minolta participates in JEITA's Responsible Minerals Trade Working Group. This working group promotes programs addressing conflict mineral issues among IT and electronics companies in Japan.

Targets and Results

The Konica Minolta Group responded to requests about conflict minerals from customers across all of its businesses, and also continued to conduct a voluntary conflict minerals and cobalt survey in its core Office Business and its Professional Print Business. The Group assess risk and encourages conflict-free suppliers.

Fiscal 2019 Targets

Fiscal 2019 Results

Response rate from suppliers regarding the conflict minerals survey: Sustained at over 95%

Response rate from suppliers: 95%

Response rate from all customers to survey requests: 100%

Response from customers to survey requests (KPI) 100% response rate

Response to Customers' Request for Survey

In fiscal 2019, many customers in the Business Technologies Business, Professional Print Business, Healthcare Business and Industrial Business requested conflict mineral surveys. Konica Minolta responded to all customers by submitting completed conflict mineral survey reports. Inquiries about conflict minerals other than surveys were responded to appropriately, based on survey results and the company's own initiatives. Konica Minolta started surveys of cobalt responding to requests from customers in fiscal 2018.

Office Business and Professional Print Business Conflict Minerals Survey

In the core Office Business and the Professional Print Business, annual conflict mineral surveys have been planned and implemented since fiscal 2013, cobalt surveys since fiscal 2019. These surveys were also done in fiscal 2019, and 95% of suppliers within the scope responded. In addition, when carrying out the survey, suppliers were requested to reduce smelters unknown to ensure transparency in their supply chain and ensure their products are conflict-free.

The conflict mineral survey confirmed that 296 SORs in the supply chain are recognized by RMI. Of these, 232 were certified as being RMAP-compliant SORs. Also, 87 countries were identfied to be sourcing 3TG in the supply chain (as of March 31, 2020).

List of smelters / refiners

List of country of production

In addition, toner, one of Konica Minolta's major products, was confirmed to be conflict-free. Some other products and materials were confirmed to be conflict free because they are made from recycled materials. No evidence of conflict complicity was found in the supply chain surveyed.

Other Initiatives

The conflict mineral survey was also done in the Healthcare Business and the Industrial Business, not only the Office Business and the Professional Print Business. As a result, Konica Minolta was able to confirm that some products in the optical lens and functional film categories are entirely conflict-free.

Konica Minolta cooperates with external organizations, including participating in an initiative where members of JEITA's Responsible Minerals Trade Working Group encourage SORs to be involved in a conflict-free audit program. In addition, Konica Minolta provided an instructor for the JEITA Conflict Mineral Survey Briefing, held by JEITA on June 14, 2019. Konica Minolta also participates in the Conflict Free Sourcing Working Group (CFS-WG), established jointly by JEITA and automotive companies, in programs that go beyond industry boundaries.

Responsible Supply Chain

Procurement Initiatives

Procurement Collaboration System

Environmental Collaboration Aimed at Strengthening the Management of Chemical Substances Included in the Supply Chain

Holding Suppliers' MeetingsCommendation of Suppliers

Procurement Collaboration System

Promoting procurement collaboration to increase customer satisfaction

Seeking to increase customer satisfaction, the Business Technologies Business promotes a Procurement Collaboration System in which suppliers and Konica Minolta work together in pursuit of improvements. In this initiative, the Group shares challenges through dialogue with and visits to suppliers, makes proposals needed for their resolution, and provides concrete support aimed at comprehensive improvements in terms of quality, delivery, productivity, the environment, and business management. Suppliers also point out issues to Konica Minolta, which serves to improve problems in business transactions.

Environmental Collaboration Aimed at Strengthening the Management of Chemical Substances Included in the Supply Chain

Konica Minolta has implemented environmental collaboration with suppliers to reduce environmental risk as a procurement collaboration system in the area of the environment. This initiative creates solid partnerships through on-site assessments and educational support for suppliers in order to strengthen management of chemical substances included in the supply chain.

In fiscal 2019, Konica Minolta went directly to the manufacturing sites of 40 suppliers in and outside Japan and conducted on-site assessments, working with suppliers to strengthen the chemical substances management system. In addition, the company started confirming activities in areas such as labor, health and safety, the environment, and ethics at its suppliers' manufacturing sites.

In addition, Konica Minolta has established an educational system focused on laws and regulations as well as on-site management that it uses to train suppliers' internal assessors in an effort to support the independent management of chemical substances on the part of suppliers. Education on changing trends and Konica Minolta's initiatives was added to CSR procurement initiatives starting in fiscal 2018. In fiscal 2019, Konica Minolta held training sessions using e-learning, training more than 240 internal assessors from 128 companies, and conducted approximately 150 internal assessments.

Holding Suppliers' Meetings

Konica Minolta holds annual suppliers' meetings as part of its procurement collaboration system. Since fiscal 2015, accompanying the growing number of suppliers in the ASEAN region, the Group has held suppliers' meetings in Malaysia, in addition to the meetings in China already held regularly.

At a meeting held in fiscal 2018, the Group explained the Konica Minolta Procurement Policy, reported procurement results and the procurement plan for the next fiscal year, and shared goals and challenges. Over 350 attendees from 180 suppliers participated in the meeting, which was a meaningful opportunity for communication..

Suppliers' meeting in China

Commendation of Suppliers

Konica Minolta takes the opportunity of the suppliers' meeting to commend suppliers. The purpose of commending suppliers with excellent records in terms of quality, delivery, productivity, and the environment is to encourage all suppliers to undertake further improvement initiatives.

Basic Concept

Developing Human Capital to Drive Value Creation

Konica Minolta is transforming into a digital company with insight into implicit challenges, which is to say that it uses digital technology to identify and solve implicit challenges faced by customers, recognizing this as key to achieving sustainable growth. In so doing, Konica Minolta provides value to the professionals who work for its corporate customers, which it believes will lead to solutions to challenges that people and society face. This is why Konica Minolta is working to strengthen the abilities of its employees, ensuring that individuals thrive. The Group is working to enhance every members productivity and creativity and to create environments where everyone stays motivated to grow.

Konica Minolta recognizes that good physical and mental health is critical to employees' efforts to maximize their potential. Accordingly, the Group implements a strong health management program and is pursuing work-style reform and human resource management in order to support employees' efforts to create customer value and accelerate self-directed growth. By rolling out these initiatives globally, the Group seeks to maximize the potential of all of its professionals and enhance their capacity to create value.

Work-Style Reform

Developing Human Capital

Konica Minolta's Approach

Expanding the System for Creating Innovation

Permitting Employees to Pursue a Second Job or Work

Concurrently, and the Introduction of a Job Return System

Remote Work System

Expanding the System for Work-Life Balance

Support for Women Balancing Childcare and Career GoalsEfforts to Promote Childcare Participation by MenPayment of a "Next-Generation Fostering Allowance"

Managing Occupational Safety and Health

Konica Minolta's ApproachHuman Resource Development

Executive Development ProgramDeveloping a Human Capital SystemKM-Way Selection Program

System to Develop and Certify ICT PersonnelKonica Minolta College

Global Assignment Program for Early Career TalentAge-Based Career Design Training

A Personnel System Designed to Promote HumanResource Development

Assessment and Treatment System

Open Job Posting and Free Agent SystemsEvaluation by External Parties

Recognized at the Good Career Company Awards 2019 with an Innovation Award

Establishment of a Global HR Organization

Initiatives to Increase the Health of Employees

Konica Minolta's Approach

Occupational Safety and Health Management SystemPreventing Accidents During Working HoursProviding Safety Training

Safety Mental Refresh EducationSafety Dojo Education

Traffic Safety Measures and Education Using Drive

Recorders

Initiatives to Share Near Misses at Sites in Japan

(Voluntary Activity)

Strengthening Safety Management

Meetings of Personnel Responsible for Health and Safety in China

Strengthening Overall Risk Management on Occupational

Safety and Health

Safety Activities Outside Japan (at a Production Plant in

Malaysia)

Konica Minolta's Approach

Promoting Sound Management through the Fostering of aCulture Committed to "Health-First"

Minimizing the Number of Persons with Health RisksMeasures to Address Overwork

Preventing Infectious Disease

Promoting Health through Visualization of the Level of

Employees' Health

Konica Minolta Included in Health and Productivity Stock

Selection

Promoting Reform of Corporate Culture and Communication

Promoting Corporate Culture ReformOrganizational Culture TransformationInternal Information Sharing

Promoting NetworkingUtilizing the IntranetUtilizing Group JournalCommunication Coordinator System

Building Work Environments Where Employees Enjoy JobSatisfaction

Employee Composition by Employment Status

Number of Employees, by Gender

Employees by Region

Number of Newly Hired Employees

Percentage of Management Positions Held by Women

Percentage of Employees with Disabilities

Percentage of Local Hires at Subsidiaries Outside Japan

Indicators Related to Work-Life Balance

Work-Life Balance Support Program Use

Percentage of Employees who Return to Work afterChildcare Leave

Percentage of Unionization

Retention Status of Employees

Occupational Accidents

Human Capital

Work-Style Reform

Konica Minolta's Approach

Expanding the System for Creating Innovation

Permitting Employees to Pursue a Second Job or Work Concurrently, and the Introduction of a Job Return System

Remote Work System

Expanding the System for Work-Life Balance

Support for Women Balancing Childcare and Career GoalsEfforts to Promote Childcare Participation by MenPayment of a "Next-Generation Fostering Allowance"

Konica Minolta's Approach

Background and Issues

Konica Minolta recognizes that it must utilize the full potential of its employees to achieve its goal of transforming itself into a digital company with insight into implicit challenges. Konica Minolta understands the need for work-style reform that allows all employees to demonstrate their full potential.

Vision

Konica Minolta is moving forward with work-style reforms in many areas, including operational processes, human capital utilization, roles and authority, systems, and environmental measures. In so doing, the company is seeking to improve the job satisfaction of every employee as well as overall productivity. In a business environment where unprecedented changes continue to occur, Konica Minolta will continue to promote the creativity and innovation that is the source of competitiveness.

Key Measures

Preparing operational and workplace environmentsReforming operational processes

Making the most of diverse talent

Expanding the System for Creating Innovation

Permitting Employees to Pursue a Second Job or Work Concurrently, and the Introduction of a Job Return System

In December 2017, Konica Minolta, Inc. implemented a program that permits employees to take on a second job or work concurrently to promote innovation. At the same time, the company also introduced a Job Return System to increase employee diversity. The first measure helps to meet the needs of employees who want to start their own businesses while still working at Konica Minolta, and those who want to enhance their skills in areas such as IT and programming. This program is expected to become a starting point for creating innovation, by making full use of employee knowledge and skills that can be gained through work experience outside the company. The Job Return System provides opportunities for reinstatement to employees who have left the company due to personal circumstances such as child rearing or nursing care of a family member, or those who leave in order to study abroad or change occupations with the goal of career advancement. In addition to utilizing the knowledge and experience cultivated by such employees before leaving the company, Konica Minolta expects to also make full use of the knowledge, personal contacts and experience gained by such employees during their time away.

Expanding the Remote Work System

Konica Minolta is working diligently to reform work styles. One key element of this effort is enabling employees to work without being tied to a single location. In April 2017, Konica Minolta, Inc. launched a remote work system for all employees. The system allows employees to work at home and other places away from the office, enabling them to shorten their commute and other travel time and to work in a variety of different ways. The remote work system is also being expanded at its sales companies in and outside of Japan.

Since remote work does not tie employees to a particular workplace, it can help them be more systematic about their work and concentrate on output. This work style generally raises hourly productivity. Additionally, moving across workplaces and environments exposes employees to diverse ideas, creates time to concentrate, and helps to spur creativity. By improving the efficiency of operations through the introduction of RPA,* and by improving operational processes, the company is contributing to the promotion of remote work through greater computerization of operations.

*RPA(Robotic Process Automation): Automating routine business process on a personal computer

Expanding the System for Work-Life Balance

Finding ways to help employees balance work and childcare responsibilities

As part of its support for employees' work-life balance, Konica Minolta, Inc. strives to provide an environment in which employees can focus on work and perform to the best of their abilities with peace of mind, even while raising children. In recognition of its activities, Konica Minolta received Platinum Kurumin certification from Japan's Ministry of Health, Labour and Welfare in August 2017.

Support for Women Balancing Childcare and Career Goals

The childcare leave system at Konica Minolta, Inc. has steadily taken root since its introduction in 1992, and the leave acquisition rate is now 100%. The rate of employees returning to work after childcare leave is also steady at 100%.

In response to the concern of daycare waiting lists, employees with infants are able to take childcare leave until the child reaches the age of 2 years and 3 months, so that even babies born in February or March have two opportunities to get into daycare in the usual registration month of April. Moreover, the company provides salary assistance during a childcare leave period that exceeds the term of childcare leave benefit payment.

After returning to work from childcare leave and until the child graduates from elementary school, employees can choose from a variety of work options including shortened working hours, working from home, and remote work. This allows them to continue building their career according to their family circumstances and their own approach.

In fiscal 2018, the company also introduced an hourly leave system.

Efforts to Promote Childcare Participation by Men

In addition to childcare leave, men who are expecting a child can take a total of five days of paternity leave within one month before or after the baby's due date.

The company has set a goal of 13% of eligible men taking childcare leave in fiscal 2020 and has taken initiatives such as strengthening awareness-raising efforts for men and their supervisors. These efforts bore fruit, with 19% of men at Konica Minolta, Inc. taking childcare leave in fiscal 2019, surpassing the goal early. Going forward, the company will strive to reach even greater heights.

Payment of a "Next-Generation Fostering Allowance"

Konica Minolta, Inc. established a "next-generation fostering allowance" in fiscal 2012, replacing its family allowance and housing allowance. This provides monetary benefits to employees raising children under the age of 18 to support employees in the child-rearing generation. In fiscal 2008, the company also expanded the eligibility for using accumulated paid leave to include reasons such as infant care, or staying home with a child when school is canceled.

Please refer to the Human Resources Data Summary for details on use of the work-life balance support system.

Human Resources Data Summary

Human Capital

Developing Human Capital

Konica Minolta's Approach

Human Resource Development

Executive Development ProgramDeveloping a Human Capital SystemKM-Way Selection Program

System to Develop and Certify ICT PersonnelKonica Minolta College

Global Assignment Program for Early Career TalentAge-Based Career Design Training

A Personnel System Designed to Promote Human

Resource Development

Assessment and Treatment SystemOpen Job Posting and Free Agent Systems

Evaluation by External Parties

Recognized at the Good Career Company Awards 2019 with an Innovation Award

Establishment of a Global HR Organization

Background and Issues

Nowadays, companies the world over are competing to create new services by leveraging big data with AI and ICT technologies. Konica Minolta, too, is aiming to become a digital company with insight into implicit challenges, the key to which is the transformation of human capital.

The company recognizes that it must first accurately ascertain the needs of customers and society. Then, based on those needs, it must systematically and continuously develop the professionals that can create and provide the kind of innovative value that is unique to Konica Minolta.

Vision

To create innovative value, every person has to let their individuality shine and professionals holding diverse views must engage in uninhibited discussions.

The company's human resources development vision is to empower people who can drive reform, feel a strong sense of ownership and complete projects to the end. Other highly prized qualities include ingenuity, the ability to engage partners, and the ability to create customer value. Konica Minolta wants to develop "business athletes" who can compete globally. This transformation of individuals will drive the transformation of the company.

Key Measures

Development and recruiting of executive candidates who will be responsible for promoting digital transformation (DX)

in Konica Minolta

Development of executive officer candidates for sustainable growthAttracting millennials

Human resources development utilizing people analytics

Human Resource Development

Developing talent globally and locally

Konica Minolta is training next-generation leaders who can perform globally to win among severe competition. The Group has also set up training programs in Japan to support the growth of each individual employee and actively train our talented members who will lead in the future.

Executive Development Program

At Konica Minolta, the aim is to foster "true management executives" who can promote creative destruction and succeed globally. This is why, in cooperation with a business school, the business leader education program (called "Global e-Juku") is implemented for executive candidates, including those from Group companies globally. In the fiscal 2018 and 2019 programs, there were a total of 18 participants (10 from Japan and 8 from elsewhere). In conversations with leading executives within and outside of the company, the participants gained an appreciation for what it takes to become a true management executive and expanded their outlook. Discussing DX and other topics, they also tried forecasting the highly unpredictable future business environment, and worked on project proposals for Konica Minolta's transformation to become a digital company with insight into implicit challenges.

Developing a Human Capital System

As the foundation of its OJD,* Konica Minolta, Inc. enhances its impact by providing rank-based training tailored to changes in roles and positions, as well as a range of training programs to raise knowledge and skills. In addition, the company offers a wide range of education programs to complement these. The company focuses resources on its selective training programs, which train the business producers that will lead Konica Minolta in the future. A total of approximately 9,600 employees took the training programs provided in fiscal 2019 (including rank-based training and the Konica Minolta College), and the total time spent in training was approximately 83,000 hours. In addition, the average training time per employee per year was about 16 hours (about 2 days).

*

OJD: A variation of on-the-job training (OJT), OJD refers to the development of abilities while facing real-life work challenges, under the guidance of a superior.

Business Producer Training Program (CGF)

Konica Minolta has implemented a program to develop business producers who can drive strong growth, starting in the early stage of their careers. This program, called the Challenge Growth Forum (CGF), is offered to select employees who are motivated to solve social challenges by creating new value. In fiscal 2018, 20 employees participated. The program participants follow a development curriculum as they study and work together at creating new businesses. The curriculum is devised by a governing board made up of members chosen from various fields who have a passion for human resource development. As such, this program also plays a major role as a forum for interaction and diligent study that goes beyond the workplace and that crosses areas of expertise and generations.

Brainstorming new business ideas

KM-Way Selection Program

This program is intended to train leaders who have the mindset and skills to create new businesses, and to foster a culture focused on open innovation strategy, by giving leaders a chance to learn Konica Minolta's own digital innovation creation process (KM-Way). This will help Konica Minolta to transform into a digital company with insight into implicit challenges and to grow sustainably.

Every year, about 30 employees are selected from among general employees and managers for a three to five months program. The participants acquire the mindset and skills needed to implement KM-Way, Konica Minolta's own technology management framework, through case studies, proposal of new businesses and the resolution of management of technology challenges in their own departments. Participants who complete the program are expected to not only implement this on their own, but also play active roles as leaders who promote innovative changes in their own departments while spreading what they have learned within their department.

KM-Way Selection Program (for managers)

System to Develop and Certify ICT Personnel

Konica Minolta has implemented an internal training program to develop ICT personnel who can leverage IT and digital technologies to provide added value from the customer's perspective. The ICT Personnel Skills Certification System has been put in place to certify and register skill levels, from beginner to expert, based on the company's definitions of human capital, such as Data Scientist.*1 A training curriculum has been developed at each level. In fiscal 2019, 71 employees were certified and registered as Data Scientists, 129 as KM Product Owners*2, and 9 as IT Architects.*3 Training was also provided at development sites outside Japan, and efforts have begun to expand the certification system worldwide.

  • *1 Data Scientist: Personnel who can identify decision-making and workflow issues by reviewing various types of data and then establish solutions

  • *2 KM (Konica Minolta) Product Owner: Personnel well versed in both business and software technology who can maximize return on investment in software development

  • *3 IT Architect: Personnel who are responsible for realizing the processes and architecture for providing IT services to customers

Konica Minolta College

This educational program is open to all Konica Minolta employees, with class enrollment available through the Group's intranet system. The college currently offers over 150 courses, covering areas from business skills to expert skills, e-learning topics and distance education. These courses can help employees acquire knowledge of Konica Minolta's technologies and other cutting-edge technologies as well as critical business skills.

Konica Minolta College

Global Assignment Program for Early Career Talent

Konica Minolta, Inc. has a short-term training program that allows early-career employees to go abroad to learn at sales companies and world-class business schools. By practicing leadership and interacting with others possessing diverse values, these employees can improve and expand their outlook, which helps them to succeed on the global stage. The aim is to develop leaders early in their careers. In fiscal 2019, 42 employees participated in the program (half year program).

Group companies outside of Japan also send employees to experience operations at group companies in other countries, including Japan, for several months or even several years. By providing program participants with an opportunity to experience different business customs and cultures, the program is accelerating the development of the leaders who can provide Konica Minolta value worldwide.

Participant taking part in a trade show exhibit

Age-Based Career Design Training

This is a program to support career development at turning-point ages (30, 40, 50, and 55), in order to provide employees with opportunities to think about their careers in light of contributions to the company and their own job satisfaction and to support their own development. Participants think about their future vision through awareness of the environment and self-analysis. After the training, they have an interview with a superior, full-time advisor and work towards independent self-fulfillment.

Age-Based Career Design Training

A Personnel System Designed to Promote Human Resource Development

Assessment and Treatment System

Konica Minolta, Inc. will continue to develop talented personnel who can win among global competition, aiming to create an organization that continues to provide customers with new value. In order to accelerate these results, the company revised its personnel assessment and treatment system for general employees in 2016. A new system that will highly evaluate talented personnel who act in accordance with the Konica Minolta Philosophy and take on the challenge of pursuing ambitious goals without fear of failure was devised.

Moreover, seniority is no longer considered in determining employee treatment. Instead, skills and results are evaluated fairly and reflected in promotions and salary increases.

Open Job Posting and Free Agent Systems

As a complement to the Group's company-led system of personnel assignments, Konica Minolta, Inc. has introduced the Internal Open Job Posting System and the Free Agent (FA) System, which encourage employees to request transfers to new positions on their own. These systems will help produce employees willing to undertake new positions in building their own careers and create a corporate culture that respects the desire to challenge oneself in new ways.

Konica Minolta, Inc. has introduced the Internal Open Job Posting System, which allows employees to apply for open positions posted by departments looking for personnel.

The Free Agent (FA) System allows employees wishing to take on the challenge of a new type of job or department to post their application on the intranet. Departments with open positions review the employees' posts, call promising candidates in for interviews, and if both the department and the employee agree, the employee is transferred to the new job.

With these two systems in place, Konica Minolta continues to facilitate the fluid movement of talented personnel across the Group and to support employees' self-determination in shaping their own careers.

Evaluation by External Parties

Recognized at the Good Career Company Awards 2019 with an Innovation Award (Human Resources Development Bureau Director-General Award from Japan's Ministry of Health, Labour and Welfare)

At the Good Career Company Awards 2019, hosted by Japan's Ministry of Health, Labour and Welfare, Konica Minolta With You, Inc., a special subsidiary of Konica Minolta, Inc., received an Innovation Award, otherwise known as the Human Resources Development Bureau Director-General Award.

The Innovation Award is given to companies that provide support for employees to further their own careers as part of efforts to tackle important issues within the company. In particular, the award recognizes companies with outstanding results from different model of initiatives, such as providing career development support with a focus on target employees and initiative methods, and linking the efforts to human resource development, and eventually to concrete corporate management results.

Reason for Award

Konica Minolta With You was commended for providing career development support that aims to maximize the vocational skills of employees with disabilities. It has been doing this by assigning employees to various types of jobs during their first three years after joining the company, and by helping them to create a long-term career vision with goals to be achieved within five years.

Establishment of a Global HR Organization

Konica Minolta, Inc. has set up a global human resources organization to develop personnel around the world and put the right people in the right positions. The aim is to realize a corporate group that continually provides new value to customers worldwide. The global human resources organization seeks to collaborate with senior management and relevant departments in order to promote individual skills and the capabilities of the entire Group. Various measures are being implemented such as making worldwide human resources visible, preparing individual career development plans, as well as assigning work based on individual career development plans, performing global job rotation, and providing training opportunities in and outside the company. A remuneration system is also being introduced to further motivate employees.

Human Capital

Managing Occupational Safety and Health

Konica Minolta's ApproachOccupational Safety and Health Management System

Preventing Accidents During Working Hours

Providing Safety Training

Safety Mental Refresh EducationSafety Dojo Education

Traffic Safety Measures and Education Using Drive

Recorders

Initiatives to Share Near Misses at Sites in Japan

(Voluntary Activity)

Strengthening Safety Management

Meetings of Personnel Responsible for Health and

Safety in China

Strengthening Overall Risk Management on

Occupational Safety and Health

Safety Activities Outside Japan (at a Production Plant in Malaysia)

Background and Issues

Workplace accidents put employee safety at risk. They can also affect the neighboring environment, and if serious enough, they can threaten business continuity. Konica Minolta recognizes that preventing workplace accidents and creating workplaces where employees can work safely and confidently is a critical management issue.

Vision

Konica Minolta believes that the foundation of corporate management lies in the maintenance and promotion of workplace safety and health for every employee. The company aims to build a healthy, safe and supportive workplace environment by implementing occupational safety and health initiatives that emphasize daily preventive actions.

Key Measures

Preventing occupational accidents

Serious accidents*1: 0

Frequency rate of accidents causing absence from work*2 in the three-year period of the Medium-Term Business Plan: 0.1 or less (FY2017-2019)

FY2020-2022: Reduce to 0.15 or less by FY2020

(The details and results of the company's safety promotion activities from fiscal 2017 to 2019 were reviewed along with the accident levels at other companies in the same industry. By backcasting from a goal of 0.1 or less by 2030, a new plan was prepared and a revised target value was set.)

*1 Serious accidents:

(1)Death, disease requiring a long recovery period (or the possibility thereof), an injury

resulting in a disability (or the possibility thereof), or a specific contagious disease;

(2) An accident resulting in the death or injury of three or more workers during work at one

point or the contraction of a disease (including accidents not accompanied by lost worktime)

*2 Frequency rate of

The number of persons absent from work per one million total actual working hours for

accidents causing

current employees

absence from work:

Occupational Safety and Health Management System

The basic policy is: "The Konica Minolta Group believes that the very foundation of corporate management is maintaining and improving the safety of workplaces and the health of all employees. We will strive to ensure healthy, safe and supportive workplace environments by implementing occupational safety and health initiatives that emphasize daily preventive activities." Based on this policy, the Group is promoting activities and initiatives with the following basic approach: "promoting continual improvement of occupational safety and health issues based on quantitative evaluation and analysis of effects and impacts, using various types of data on occupational safety and health." The Occupational Safety and Health Management Regulations aim to ensure the health and safety of everyone working in the Group (officers, employees, contract employees, employees dispatched from an agency, and part-time employees) as well as Group service providers (staff contracted from other companies and commissioned businesses providing services within the Group).

The Konica Minolta Group's safety and health management system is shown in the figure below. Appointed by the President and CEO of Konica Minolta, the Group Safety and Health Officer (Executive Officer) recommends the appointment of the persons responsible for safety and health promotion in each business division, as well as the Safety and Health Committee members at each site. Group meetings of persons responsible for safety and health, including an industrial physician, are held, and policy decisions and progress checks are made on measures to promote health and safety. In addition, the company regularly performs internal audits of activity plans and progress at each site and group company, when necessary, such as after an accident, and provides instructions for improvement.

Each site in the Konica Minolta Inc. and group companies in Japan have established a Joint Labor-Management Safety and Health Committee that meets once a month as an organization to promote enhancement of occupational safety and health. The committee is composed of, in accordance with the law, a general health and safety manager, a safety manager, a health manager, and an industrial physician as well as members from the company and labor union. Half of the members are appointed based on the labor union's recommendations. In addition, safety and health management in business promotion is carried out in the form of a Safety and Health Promotion Committee in each business division. When major safety and health problems or concerns are identified, they are reported immediately to the Group safety and health manager and instructions for correction and countermeasures are issued to the Group Safety and Health Management Secretariat. The Secretariat considers/examines the content and works with the relevant division to implement it and then disseminate it throughout the Group.

In addition, the company has a complaint handling system concerning occupational health and safety. The system involves the Safety and Health Committees and the Safety and Health Promotion Committees interviewing employees concerning incidents, information concerning defects and improvement proposals. Approximately 50 people across the entire Group are engaged as full-time staff for occupational safety and health.

Konica Minolta Group Occupational Safety and Health Management System

All group companies in Japan and the Group's main production companies outside Japan have adopted an occupational safety and health management system. Some group companies have obtained external certification, including OHSAS 18001 and ISO 45001. On an employee-number basis, 14% of the Group's global workforce is in a worksite that has acquired external certification (as of March 31, 2020).

Externally Certified Health and Safety Management Systems in the Konica Minolta Group

Company

Date

Valid through

Standard

Konica Minolta Optical Products (SHANGHAI) Co., Ltd.

Nov. 10, 2009

Mar. 11, 2021

OHSAS 18001:2007

Konica Minolta Business Technologies (Dongguan) Co., Ltd.

Nov. 27, 2012

Mar. 12, 2021

OHSAS 18001:2007

Konica Minolta Opto (Dalian) Co., Ltd.

Dec. 12, 2011

Dec. 7, 2020

GB/T 28001-2011 / OHSAS 18001:2007

Konica Minolta Business Technologies (Malaysia) Sdn. Bhd.

Jan. 16, 2015

Jan. 15, 2021

ISO 45001:2018

Preventing Accidents During Working Hours

Strengthening and Continuously Carrying Out Risk Reduction Efforts to Prevent Occupational Accidents

During the period of the Medium Term Business Plan (FY2017-2019), the Konica Minolta Group's targets were zero serious accidents*1 and an accident frequency rate*2 of 0.1 or less. During the period of the next business plan (FY2020-2022), the Group will implement a variety of measures to prevent accidents from occurring during working hours, with the goal of reducing the rate to less than 0.15 by fiscal 2022. With the occupational safety and health management system (OSHMS) and the organization of safety and health committees serving as the cornerstones, the Group works through the PDCA cycle, focusing on general risk management to deal with business changes and varied daily activities.

Konica Minolta's Safety and Health Initiatives

As a rule, any accidents that occur within the Konica Minolta Group are recorded in an accident database system within 24 hours, and the information is shared.

In fiscal 2019, there were no serious accidents.*1 However, there were 13 accidents causing absence from work (involving 4 men and 3 women in Japan and 4 men and 2 women outside Japan). The frequency rate of accidents causing absence from work*2 was 0.23 in Japan and 0.23 outside Japan, and the accident severity rate*3 was 0.0052 in Japan and 0.0023 outside Japan.

According to the Survey on Industrial Accidents by Japan's Ministry of Health, Labor and Welfare, the average frequency rate of accidents causing absence from work in fiscal 2019 was 1.20 in the Japanese manufacturing industry, and was 0.54 in the Japanese electrical machinery and equipment manufacturing industry. Konica Minolta has been maintaining a rate below this industry average.

  • *1 Serious accidents:

    1. Death, disease requiring a long recovery period (or the possibility thereof), an injury resulting in a disability (or the possibility of a disability thereof), or specific contagious diseases

    2. Accidents that cause three or more employees at one time to suffer on-the-job death, injuries or diseases (including accidents that do not cause absence from work)

  • *2 Accident frequency rate: The number of persons absent from work per one million total actual working hours for current employees

  • *3 Frequency rate of accidents causing absence from work: The total number of days absent from work per 1,000 total actual working hours for current employees

Boundary: Employees of Konica Minolta Group Japan, including those dispatched from an agency Accident frequency rate: The number of persons absent from work per one million total actual working hours for current employees

Boundary: Employees of Konica Minolta Group Japan, including those dispatched from an agency

Accident severity rate: The total number of days absent from work per 1,000 total actual working hours for current employees

Boundary: Figures are for employees and temporary staff of Group companies in China and manufacturing companies in Malaysia, including those dispatched from an agency.

Accident frequency rate: The number of persons absent from work per one million total actual working hours for current employees

Boundary: Figures are for employees and temporary staff of Group companies in China and manufacturing companies in Malaysia, including those dispatched from an agency.

Accident severity rate: The total number of days absent from work per 1,000 total actual working hours for current employees

Number of fatal accidents during work

FY2015

FY2016

FY2017

FY2018

FY2019

0

0

0

0

0

0

0

0

0

0

0

0

  • *1 Regular employees and temporary employees at sites in Japan and production sites outside Japan

  • *2 Contract workers at production sites in Japan

In fiscal 2017, the Konica Minolta Group adopted "Unsafety Marks" as a new safety management indicator tailored to Konica Minolta's business operations. It was created with reference to the best practices of leading manufacturers in terms of safety. Each accident including not only those causing absence from work but also those not causing absence from work, commuting accidents and even fires and explosions, is assigned a numerical value based on the type and severity. The values for all the accidents are then totaled to obtain a score for the safety level of a site. Low Unsafety Marks indicates a high level of safety. The purpose is to use this indicator to identify and analyze the causes of accidents, in order to help prevent accidents from occurring or reoccurring. In fiscal 2019, Konica Minolta aimed for a 50% reduction compared to a benchmark average annual unsafety score for accidents in the Konica Minolta Group from 2014 to 2016, but the reduction stood at only 27%.

In fiscal 2020, Konica Minolta reviewed the details and results of its safety promotion activities from fiscal 2017 to 2019, along with the activities and results of other companies in the same industry. Based on the new safety promotion activity plans and measures that were prepared in response, the Unsafety Mark target values will be reset and managed.

Providing Safety Training

The Konica Minolta Group conducts grade-specific employee education both in Japan and overseas. Safety training is provided for all employees at the time of recruitment or task modification, as well as safety training for newly appointed managers and executives, respectively.

In each workplace concerned, the company conducts training in hazardous materials safety based on the Fire Service Act, training in high-pressure gas safety, training in machinery and equipment safety, and so on. Safety training is also given for especially high-risk work, covering topics such as preventing fires, explosions and forklift accidents.

Safety Mental Refresh Education

Beginning in fiscal 2017, Konica Minolta began offering a short (five minutes per session) "refresh" course to remind employees to be aware and take actions to protect one's own body oneself. In fiscal 2018 and 2019, this "refresh" course was given in a monthly e-learning format to around 12,000 employees of Konica Minolta, Inc. and group companies in Japan each year. It was taken by about 86% of the target employees. The production companies in China provide Japanese e-learning content that has been translated into English and Chinese and tailored to the conditions of local companies. In addition, companies also provide education based on video materialsʕcase studies on accidents that have occurred in the Group created by the safety personnelʕas part of the sites' ongoing efforts to raises safety awareness.

Safety Dojo Education

Safety Dojo is an initiative that it began in fiscal 2014, primarily at production sites outside Japan, with the purpose of preventing accidents by allowing employees to experience the fear of accidents through simulated experience of mock accidents involving being dragged into rotators, pulled into V belts, or caught in cylinders. The program was rolled out throughout Japan in fiscal 2017, and it was implemented at all production sites in Japan in fiscal 2018. Along with the continuation of this initiative in fiscal 2019, a realistic training program using virtual reality technology was launched.

Traffic Safety Measures and Education Using Drive Recorders

Konica Minolta Japan promotes eco-driving and safe driving by installing drive recorders in all sales cars and monitoring driving conditions. This has succeeded in reducing traffic accidents.

In addition, videos of near misses caught on the drive recorders are shared in traffic safety courses held at Konica Minolta sites throughout Japan as examples that hit close to home. This has been effective in reducing traffic accidents.

Initiatives to Share Near Misses at Sites in Japan (Voluntary Activity)

In fiscal 2017, each site in Japan made and shared maps of dangerous spots near the site, as indicated by employees, with the aim of eliminating commuting accidents. Having done so, some sites were able to reduce the number of commuting accidents to one-tenth that of the number in fiscal 2016. The results of this activity were announced at the 76th Japan National Industrial Safety and Health Convention in fiscal 2017.

In fiscal 2018, an online questionnaire database into which employees can enter information was used to share dangerous spots on worksite premises (stairs, corner blind spots, etc.), and the information was then used in countermeasures.

This initiative continued in fiscal 2019 in order to help reduce accidents while walking onsite (tumbling over or falling down stairs, etc.) and commuting.

Strengthening Safety Management

Strengthening Safety Management through the Konica Minolta Group's Globalization and by Responding to Business Changes

Meetings of Personnel Responsible for Health and Safety in China

Since fiscal 2014, Konica Minolta has been strengthening safety and health, including health management, by holding meetings (twice per year) of personnel responsible for health and safety in China at all subsidiaries and affiliate companies, including companies involved in production, sales, development, and their overall administration. The benefits obtained from the meetings included sharing of the current safety and health status and initiatives of each company, making requests to Konica Minolta for support with equipment safety measures, discussion of issues such as the health challenges of expatriate personnel resulting from differences in lifestyle habits, climate, and environment, and making resolutions on policies and measures for improvement.

Strengthening Overall Risk Management on Occupational Safety and Health

Overall risk management on occupational safety and health is a system for comprehensively assessing and reducing the risks that could result from new equipment, chemical substances, personnel, and procedures when business changes are made. In addition to conventional equipment safety, in fiscal 2016, Konica Minolta started expanding a system of collaboration among workplaces company-wide to assess risks from a wide range of perspectives, including health problems caused by chemical substances and fires caused by explosions. The company is continuing to expand this system while enhancing its content.

Safety Activities Outside Japan (at a Production Plant in Malaysia)

At a production plant in Malaysia, the Group Safety and Health Secretariat, production control department, and the plant's production site staff worked together to identify and reduce risks in new equipment and to carry out voluntary activities such as 5S activities and QC Circle activities to increase professionalism and safety awareness based on the setup of a model workplace. The plant is conducting digital manufacturing under a system undergirded with safety measures.

Human Capital

Initiatives to Increase the Health of Employees

Konica Minolta's Approach

Promoting Sound Management through the Fostering of a Culture Committed to "Health-First"

Minimizing the Number of Persons with Health Risks

Measures to Address Overwork

Promoting Health through Visualization of the Level of Employees' HealthSupporting Women's Health

Konica Minolta Included in Health and Productivity Stock Selection

Konica Minolta's Approach

Background and Issues

Konica Minolta recognizes that ensuring employees' mental and physical health and linking this effort to improved productivity and performance are critical management issues, given the growing social issues of a higher risk of lifestyle diseases and people having to leave work due to mental health issues.

Vision

Konica Minolta recognizes that employee health is the foundation of everything else it does. This is why the company works so hard to realize the full potential of human resources, while building workplaces where all employees can maintain good physical and mental health and continue to work with vitality-thereby raising employee capacity and laying the groundwork for sustainable growth. Konica Minolta accomplishes this by fostering a "health-first" culture and practicing sound safety and health management.

Key Measures

Promoting health management

Improving the organization's productivity and dynamism

Reduce the number of workplaces with the highest stress levels, as determined by stress checks, by 50% Improve the percentage of workplaces that have improved their average score in the organizational health survey results from below 3.5 to 3.5 or above by 10% or more

Promoting the movement toward health

Reach the top 10% among major Japanese companies in all four indicators for lifestyle habits (diet, physical activity, smoking rate and sleep)

Minimizing the number of individuals with health risks

Reducing the number of people with high physical health risk by 18.6%

Reducing the number of days people are absent for mental health reasons by 13.5%

*Set overall target for the Konica Minolta Group in Japan for fiscal 2022, the last year of the medium-term management plan, with fiscal 2019 as the benchmark

Promoting Sound Management through the Fostering of a Culture Committed to "Health-First"

Striving to create workplaces where employees can work with enthusiasm

Konica Minolta has issued a statement on health, the Konica Minolta Group Health Declaration, which sets out the principles for promoting health management. Based on this declaration, it plans and implements policies under a single management structure (collaborative health) so that the best use can be made of company resources and its Health Insurance Association. The company is enthusiastically implementing health-promotion measures while practicing swift decision-making, including by management personnel, on important issues, with the Corporate Human Resources General Manager acting as managing director of the Health Insurance Association and the person responsible for health management in the Human Resources Department acting as the executive director.

Organizational (Collaborative Health) Structure for Promoting Health Management

In order to achieve the principles of the Health Declaration, Konica Minolta linked it to the company's medium-term management plan and established the Health Challenge 2019, a new medium-term plan that started in fiscal 2017 and which carries on from the three-year medium-term health plan, Health KM2016, which ran from fiscal 2014 to fiscal 2017. The new plan's priority is lifestyle modification (fostering a "health movement") by minimizing the number of persons with health risks and visualizing their health status.

From fiscal 2020, in its new medium-term plan, the company decided to become the "Happiness Company 2022," and expanded the scope of its initiatives from risk management to improving productivity and dynamism and from individuals to the organization in the belief that this will lead to the company's sustainable growth.

Comparison of the positioning of the previous medium-term plan (fiscal 2017 to fiscal 2019) and the new medium-term plan (fiscal 2020 to fiscal 2022)

Framework for new Medium-Term Plan for Health

Moreover, with the aim of expanding initiatives covering employees of Group companies outside Japan, the company has created a Chinese version of the Konica Minolta Group Health Declaration in an effort to raise health awareness among local employees in China, where the Group's major production sites are located.

Konica Minolta Group Health Declaration (PDF) (430KB)

Minimizing the Number of Persons with Health Risks

Konica Minolta is committed to improving the health of its employees in order to strengthen its talent pool, which is vital to achieving its management strategy. The Group companies in Japan and the Health Insurance Association work together to plan and implement various measures. They categorize those with health risks according to physical and mental health risks and set numerical targets with the aim of reducing the number of people in each category through employee-centered measures.

For physical health management, Konica Minolta is focusing on preventing the development of serious illness for all Group employees in Japan. As a result of guidance from occupational health staff and stronger encouragement of check-ups, in fiscal 2019 there was an 84% decrease in the number of employees with the highest health risks, compared to fiscal 2013. With that, hospitalization expenses per employee increased by 19% at Konica Minolta compared to a 30% increase in the general population (average for the National Federation of Health Insurance Societies), suggesting that Konica Minolta's measures to prevent the development of serious illness have yielded results.

In fiscal 2019, 100% of Group employees in Japan had a regular health examination. The examination rates of different screenings offered with the aim of early detection of and prompt response to cancer are given below.

Rate of cancer screenings in fiscal 2019

Area examined Examination rate

Lungs

Stomach

Large intestine

Prostate

Breasts

Uterine cervix

99.1% 95.8% 94.1% 97.6% 66.0% 40.9%

(Scope: All employees of the Konica Minolta Group in Japan)

Konica Minolta works with the Health Insurance Association to conduct specified health checkups, and health recommendations are provided based on the results, for the prevention of lifestyle-related diseases. Conventionally, specific health guidance was given by public health nurses commissioned by the Health Insurance Association. From fiscal 2018, however, some of this work is being commissioned to external specialist providers. Konica Minolta's public health nurses focused on health guidance for employees with a higher health risk. Employees subject to specific health guidance due to being at the pre-lifestyle-related disease stage were given finely tuned assistance drawing on the expertise of the specialist providers. As a result, in fiscal 2019, the initial interview rate and interview completion rate both improved substantially compared to fiscal 2016.

As part of mental health management, stress checks are conducted twice a year for all employees of the Konica Minolta Group in Japan. While allowing employees to utilize their results for self-care. Konica Minolta also classifies workplaces into four levels of stress based on the results of the stress checks and shares this status with organizational heads. Improvement measures are then devised and implemented for workplaces at Level 4, the highest level of stress. In order to strengthen the line care function, mental health e-Learning modules are also provided regularly to managers across the Group, with the aim of early detection and prompt response for individuals with mental illness. The completion rate for these modules remains around 95%. Konica Minolta has expanded its mental health training from cautionary initiatives focused on conventional strengthening of line care to proactive initiatives intended to improve the workplace culture. In addition, beginning in fiscal 2020, the Group implemented an organizational health survey, the scores of which have a strong correlation to productivity, and is using the results of this analysis to improve workplaces.

Konica Minolta has also established a reinstatement preparation program for employees returning to work from leaves of absence taken due to mental health problems. People in the program are provided with careful support to facilitate a smooth return to work, including at least three interviews with an industrial physician, workplace head, and the HR department during the rehabilitation period, which lasts up to three months.

As a result of these measures, the total number of leave-of-absence days taken due to mental health problems by Konica Minolta employees in fiscal 2019 was down 35% compared to fiscal 2014, and the percentage of people taking these leaves of absence improved from 0.64% to 0.38%.

Also, on an employee engagement survey conducted periodically (once every two or three years), the percentage of favorable responses to questions about work engagement (job satisfaction and desire to take on challenges) increased from 72% in fiscal 2015 to 75% in fiscal 2017.

Days of Leave Taken Due to Mental Health Problems and Percentage of People Taking Leaves of Absence

Measures to Address Overwork

Since fiscal 2007, in order to prevent health problems due to overwork, Konica Minolta has been sending guidance on reducing overtime via email to employees and their supervisors when the employees' overtime work has exceeded 30 hours or more hours.

When employees have logged more than 80 hours of overtime in a month, they are required to have a medical checkup administered by an industrial physician during the following month to ensure their health. Their supervisor is required to submit a work improvement plan in a thoroughgoing effort to prevent employees from working long hours two months in a row. Furthermore, as of fiscal 2016 the health checkup standards have been revised. Now, employees who have logged 60 or more hours of monthly overtime three months in a row and employees who have logged 45 or more hours of overtime in the previous month can opt to have a medical checkup by an industrial physician. In this way, Konica Minolta is improving the prevention of health problems caused by overwork. As a result of these countermeasures, the number of employees (total annual number) who logged 80 or more hours of monthly overtime declined by 61%, from 557 in fiscal 2015 to 219 in fiscal 2019.

Promoting Health through Visualization of the Level of Employees' Health

Konica Minolta has established indicators that show the level of employees' health visualizing the daily lifestyle increases in health awareness. The Group companies in Japan also implemented assistance programs aimed at promoting health in an effort to raise the level of employees' health.

Group-wide in Japan, it holds walking events in which teams compete against each other in order to instill exercise and walking habits among employees; holds exercise workshops with outside instructors; offers healthy menu choices in cafeterias; holds seminars led by nationally registered dieticians with the aim of improving eating habits and raising awareness; among various other activities.

An exercise workshop

On a website designed to encourage employees to stay healthy, Konica Minolta shows employees a comparison of the average incidence of cardiovascular disease, stroke, and ischemic heart disease within 10 years for their specific age group based on their latest medical examination results. In this way, the company encourages employees to improve their lifestyle habits. This system can also be accessed and utilized by employee spouses who are health insurance dependents.

Example presentation of future disease risk on the website

Moreover, as a measure against passive smoking, Konica Minolta has cut back on indoor smoking areas, moved indoor smoking areas outside and holds no-smoking days on the premises. In addition, the company recommends that smokers participate in smoking cessation support programs. In light of the strengthening of legislation related to smoking, Konica Minolta prohibited all smoking on its premises and during designated work hours across all group companies in Japan, in April 2020, in order to strengthen measures against second-hand smoke and further reduce the smoking rate.

No-smoking day notices

Reduction in the Number of Smoking Areas and the Smoking Rate

An analysis of survey results to determine the main causes behind presenteeism* showed that measures addressing back problems, individual guidance from experts for people with sleep problems and mental health measures had reduced loss due to presenteeism per employee (monthly average) from 68,398 yen in fiscal 2016 to 45,976 yen in fiscal 2019, for a 32.8% decrease.

*Presenteeism refers to productivity loss resulting from health problems.

Supporting Women's Health

With a view toward promoting women's advancement in the workplace and enhancing support for their health, Konica Minolta strives to increase the rate of cancer screenings, with the aim of early detection of and prompt response to cancers that affect women. It took steps to make it easier to get screened, including bringing screening trucks onto company premises and increasing the number of cooperating medical institutions, in addition to subsidizing screening costs through the Health Insurance Association. The screening rates for breast cancer and cervical cancer in the Konica Minolta Group in Japan increased greatly as a result.

As part of its awareness-raising efforts aimed at further increasing the screening rate, Konica Minolta invited the actress Kuniko Asagi to give a talk in September 2019 about the importance of getting screened for the purpose of early detection, in light of her own experience with breast cancer. The talk was attended by close to 500 employees.

In November 2019, Dr. Tomoko Shibayama of the Breast Oncology Center, the Cancer Institute of JFCR was invited to give a talk on the current status of cancer in Japan, types of breast cancer and changes in treatment, mechanisms behind hereditary cancer and methods for preventing cancer. More than 200 employees attended the talk.

Dr. Shibayama speaking with enthusiasm

Dr. Shibayama's presentation

Konica Minolta also holds Energetic Health Seminars for Women taught by outside experts to help maintain and raise performance by learning methods to deal with women's health issues such as menopausal disorder and premenstrual syndrome, not just cancers particular to women.

Measures to Prevent the Spread of the Novel Coronavirus

As part of its efforts to improve the health of its employees, Konica Minolta has always endeavored to prevent infectious diseases. In Japan, the company provides information on influenza outbreaks, encourages employees to get flu vaccinations, and provides information on malaria, hepatitis, HIV, and other infectious diseases to employees posted outside Japan and their accompanying families as well as for employees traveling abroad on business trips. In addition, Konica Minolta strives to prevent infectious disease by quickly identifying cases of tuberculosis through chest X-rays in its health checkups for employees and taking the necessary steps in response.

As such, when the novel coronavirus began to spread, Konica Minolta's first priority was the health and safety of employees and their families, and the entire Group was devoted to countermeasures to prevent infections and the outbreak's spread.

In February-March 2020, the initial stage of the outbreak's growth in Japan, Konica Minolta asked employees to check their temperatures and general physical health before coming in to work, to wash their hands carefully and use an alcohol-based disinfectant on their hands, and to wear a mask and avoid crowded spaces. In workplaces, the Group took measures such as staggering the work times at which employees arrive and utilizing remote work and ventilating rooms, banning meetings of 30 people or more (recommending meetings via ICT instead), staggering times during which the cafeteria is used (three time slots of 30 minutes each) and instructing employees to leave seats open between people when dining.

When the government declared a state of emergency in April, the focus was on preventing infection by designating work from home in principle and reducing contact with other people as much as possible. Konica Minolta asked employees to stay home as much as possible and to refrain from traveling to their hometowns during the long national holidays.

At the same time, an increase in remote work done at home raised concerns about a lack of exercise and mental health issues, so the company sent all employees e-mails with content such as "Fitness Video for Easy Home Exercises," "Ways to Address Mental Health Issues Resulting from Remote Work at Home and Consultation Services," "E-Learning on Self-Care (15-minute video)" and encouraged their use as necessary to support their mental and physical health.

Konica Minolta decided to postpone the regular health checkups held every year until autumn, in light of the risk of contagion among employees.

Once the state of emergency was lifted, employees in each division that needed to come in to the office were determined, and the number of employees coming in every day was set on the condition that employees maintain social distancing in the office. The company took various steps to ensure social distancing, such as removing some of the unassigned seats and making both conference rooms and regular rooms available as work spaces.

Konica Minolta Included in Health and Productivity Stock Selection

Japan's Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange jointly work on the Health & Productivity Stock Selection. Konica Minolta, Inc. has been selected five times-in 2015, 2016, 2018, 2019, and 2020.

Konica Minolta publicized its inclusion in the Health & Productivity Stock Selection, together with other external recognitions such as winning the Grand Prize in the Smart Work Awards, via various media channels. As a result, even though a shortage of new graduate entries is the biggest problem facing about 40% of major companies, the number of new entries for Konica Minolta was unchanged in fiscal 2020 from the previous year, when the Group had a record-high number.

Additionally, as a result of the various measures implemented cooperatively by Group companies in Japan, eleven Group companies were chosen for the 2020 Certified Health & Productivity Management Outstanding Organizations Recognition Program organized by Japan's Ministry of Economy, Trade and Industry. Six companies were selected for the Health & Productivity Management 500 Organizations division; one, in the large corporation division; and four companies were recognized in the small- and medium-sized organization division.

Human Capital

Promoting Reform of Corporate Culture and Communication

Promoting Corporate Culture ReformOrganizational Culture TransformationInternal Information Sharing

Promoting NetworkingUtilizing the IntranetUtilizing Group JournalCommunication Coordinator System

Building Work Environments Where Employees Enjoy Job Satisfaction

Promoting Corporate Culture Reform

Practicing the Six Values of the Konica Minolta Philosophy

The Six Values of the Konica Minolta Philosophy are meant to be practiced by employees as a cornerstone of their daily activities. The Group believes this can lead to a continual supply of new value for society and customers, as indicated in the Philosophy. Through its global award system (Business Contribution Awards, Transform Awards), Konica Minolta singles out cases worthy of commendation and seeks to share the same values Group-wide. This creates a culture of recognition and fosters a willingness to take up challenges. In particular, the Transform Awards recognize employee approaches and activities that involve taking on the challenge of creating new value and helping to solve issues for society and customers. They also encourage a global groundswell in which other employees acquire the same expertise and utilize it in their workplaces. Konica Minolta, Inc. reflects these principles in its human resources system so that employees always consider the Six Values in their actions.

The Group is transforming its corporate culture to foster employee practice of the Six Values.

Transform Awards presentation

Organizational Culture Transformation

Konica Minolta have started efforts to transform their organizational culture where each employee, as a "business athlete," can compete in the global arena. The aim is to create a culture and structures that will allow them to continually undertake challenges while capturing the benefits of co-worker diversity. In fiscal 2019, 16 KIZUKI workshops were held, with 326 employees, consisting of 163 pairs of managers and millennial subordinates, participating from 163 internal organizations. The purpose was for the managers and young subordinates to better understand and trust one another through dialogue. The workshop theme was "Creating organizations where people feel confident to engage in open and frank discussions regardless of their position."

The Japanese word "kizuki," which means "awareness," was used to emphasize the need for employees to be aware of the differences in the values held by managers and subordinates, and to remind everyone that their actions and words help shape the organizational culture. The desire was for participants to gain a new awareness through the workshop and to take that awareness back to their workplaces and use it to help build even better working environments.

Internal Information Sharing

Group Communication Activated Through Multiple Channels

Promoting Networking

Since April 2017, Konica Minolta, Inc. has made available company facilities, such as employee cafeterias, as places for people from different departments to meet for activities like social meals. This allows diverse groups of employees to gather together, share ideas and create innovation.

The company helps to cover the cost of gatherings planned by employees and submitted to HR, with the aim of encouraging employees who want to break through organizational barriers and expand internal networking. The young mid-level employee community and cross-division engineering network that use this system are creating new ties within the company.

Human resource exchange event organized by employees

Utilizing the Intranet

Konica Minolta has established Konica Minolta Online (Japanese) and Online Global (English) on its intranet, each of which plays a central role in intra-Group communication. These sites are designed to promote the sharing of Group-wide policies, as well as information regarding individual Group companies. They also serve as a tool to facilitate the direct exchange of information and communication between top management and employees.

The content of these sites includes a message board for the president of Konica Minolta, Inc., which enables the president to send messages directly to all the employees of all of the Group companies.

Utilizing Group Journal

The Konica Minolta Group publishes a quarterly journal entitled Global Magazine (in Japanese, English and Chinese) and distributes it to its employees around the world. This publication presents information relevant to the entire Group from a worldwide perspective, extending beyond the borders of companies, organizations, and regions. It includes special articles introducing the Group's direction and innovative initiatives. Also, together with the publication of the journal, the Group is strengthening its bilateral communication through the use of such tools as the intranet and employee surveys.

Communication Coordinator System

Communication coordinators are assigned to each Group company around the world and serve to communicate information relevant to their departments to the Group, and Group-wide information to their departments. By essentially acting as spokespersons for their workplace and company, these coordinators support the cultivation of a sense of Group unity, the assimilation of multiple vectors, and the demonstration of synergy by promoting communication.

Building Work Environments Where Employees EnjoyJob Satisfaction

Konica Minolta regularly conducts surveys on views about work and the workplace held by all of its employees worldwide, with the aim of maintaining work environments where employees feel engaged , are fully engaged, and embrace challenges. In the 2017 survey, 75% of respondents worldwide gave a positive response regarding enthusiasm at work and their desire to take on challenges (sustainable engagement).*1

Question

2015

2017*2

Employees' enthusiasm at work and their desire to take on challenges (Sustainable engagement)

72%

75%

Response rate

87.6%

88.8%

*1 Percentage of employees who showed a positive opinion (upper two choices out of five options) on questions related to employees' enthusiasm at work and their desire to take on challenges (sustainable engagement).

*2

Some of the content of the questionnaire in 2017 differed from that in 2015.

In April 2020, 84 new graduates joined in Konica Minolta, Inc. The overall turnover rate for fiscal 2019 was 3.2%. In addition, the rate of turnover within three years for employees who joined the company in 2017 was 8.9%.

Human Capital

Human Resources Data Summary

Employee Composition by Employment StatusNumber of Newly Hired EmployeesPercentage of Management Positions Held by WomenPercentage of Employees with DisabilitiesPercentage of UnionizationRetention Status of EmployeesWork-Life Balance Support Program UseNumber of Employees, by GenderPercentage of Local Hires at Subsidiaries Outside JapanIndicators Related to Work-Life BalancePercentage of Employees who Return to Work after Childcare LeaveAccidents Causing Absence from Work at Sites in Japan

Occupational Accidents

Employees by RegionAccidents Causing Absence from Work at Sites outside Japan

*1 Regular employees: Includes employees seconded from other companies, except for those re-seconded to other companies

(As of March 31 of each fiscal year)

(Person)

*2 Non-regular employees: Contract or temporary employees ˒: Indicators assured by KPMG AZSA Sustainability Co., Ltd.

(As of March 31 of each fiscal year)

(Person)

Konica Minolta Group (worldwide)

Men

Women

Gender not reported*

Fiscal 2015

43,332 30,499 12,833

-

Fiscal 2016

43,979 31,044 12,761

174

Fiscal 2017

43,299 30,551 12,548

200

Fiscal 2018

Fiscal 2019

˒

44,360

43,961

30,926

30,560

13,176

13,142

258

259

* Some offices do not count men and women separately. ˒: Indicators assured by KPMG AZSA Sustainability Co., Ltd.

(As of March 31 of each fiscal year)

(Person)

(As of March 31 of each fiscal year)

(Person)

Fiscal 2017

Fiscal 2018

Fiscal 2019

Konica Minolta, Inc.

Men

Women

Gender not reported*

176

186

180

128

138

136

48

48

44

-

-

-

*Some offices do not count men and women separately.

Percentage of Management Positions Held by Women

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Konica Minolta, Inc.*1

3.4%

4.4%

5.5%

6.2%

6.9%

Konica Minolta Group (worldwide)*2

15.3%

16.4%

18.9%

18.6%

18.3%

Fiscal 2015

*1 Includes employees seconded to Group companies. Figures are as of April 1, after the end of each fiscal year.

*2

Covers at least 89% of the consolidated Group on the number of personnel basis through fiscal 2015, and at least 93% in fiscal 2016 to fiscal 2017, and at least 92% in fiscal 2018 to fiscal 2019. Figures are as of March 31 of each fiscal year.

(As of June 1 of each fiscal year)

*

Coverage: From fiscal 2016 to 2018, Konica Minolta, Inc., Konica Minolta With You, Inc., Konica Minolta Japan, Inc., Kinko's Japan Co., Ltd. and Konica Minolta Mechatronics Co., Ltd.

In fiscal 2019, Konica Minolta Information System Co., Ltd., Konica Minolta Planetarium Co., Ltd., Konica Minolta Business Associates Co., Ltd. are added.

˒: Indicators assured by KPMG AZSA Sustainability Co., Ltd.

Percentage of Local Hires at Subsidiaries Outside Japan

(As of March 31 of each fiscal year)

(As of March 31 of each fiscal year)

Fiscal 2015 Fiscal 2016

Konica Minolta Group (worldwide)

86%

85%

Fiscal 2017

Fiscal 2018

Fiscal 2019

85%

87%

84%

Note: Figures are for non-managerial regular employees.

Note: Figures are for regular employees of Konica Minolta Inc. The percentage of new employees leaving within three years is defined as the percentage of employees who leave their job within three years of joining the company (as of April 1 each year).

Note: Figures are for regular employees of Konica Minolta, Inc.

Note: Figures are for regular employees of Konica Minolta, Inc.

(persons)

Fiscal 2015 Fiscal 2016

Work resumption rate

100%

100%

Fiscal 2017

Fiscal 2018

Fiscal 2019

100%

100%

100%

Note: Figures are for regular employees of Konica Minolta, Inc.

Accidents Causing Absence from Work at Sites in Japan

(As of March 31 of each fiscal year)

Fiscal 2015

Fiscal 2019

Note: Figures are for employees and temporary staff of Konica Minolta Group Japan

*1

Accident frequency rate: The number of persons absent from work per one million total actual working hours for current employees

*2 Severity rate of accidents causing absence from work: The total number of days absent from work per 1,000 total actual working hours for current employees

Accidents Causing Absence from Work at Sites outside Japan

(As of March 31 of each fiscal year)

Fiscal 2015

Number of cases of employees taking leave from work (Cases)

12

Rate of lost worktime injuries (Frequency rate)

Number of working days lost (Days)

Disabling injury frequency rate

0.44 340 0.0103

Fiscal 2019

6

0.23

73 0.0023

* Figures are for employees and temporary staff of Group companies in China and manufacturing companies in Malaysia.

Occupational Accidents

Number of fatal accidents during work

Fiscal 2015

Fiscal 2016

Fiscal 2017

Fiscal 2018

Fiscal 2019

Group regular employees*1

0

0

0

0

0

Employees dispatched from an agency*1

0

0

0

0

0

Staff contracted from other companies*2

0

0

0

0

0

  • *1 Regular employees and temporary employees at sites in Japan and production sites outside Japan

  • *2 Contract workers at production sites in Japan

Our Concept

Making the Most of Employee Diversity to Create New Value

One of Konica Minolta's strengths as a global company is that employees of different national origins, races, beliefs, cultures, languages, genders, ages and expertise work together in regions all over the world. It is this diversity that leads to innovative thinking and original ideas, thus generating new value that helps provide solutions for customers and society.

This kind of value creation embodies the concept of "Inclusive and Collaborative," one of the six values that makes up the Konica Minolta Philosophy. This value refers to the power and collaboration generated by embracing our workforce's diverse backgrounds and ideas.

In addition to human resource diversity, Konica Minolta also recognizes the diversity of capabilities demonstrated by its diverse teams, and will keep striving to create even greater value by leveraging various differences.

Konica Minolta, Inc. prioritizes ensuring diversity and inclusion and to pursue these principles to create new value for customers and society while driving the company's own advancement.

Konica Minolta, Inc, not only has a very diverse workforce, but also takes a wide range of measures to create an environment where employees can exercise their own unique skills while supporting each other and performing at a high level. Recently, Konica Minolta has focused on promoting the performance of its female employees and training global leaders. Adding to the results of these efforts, further innovation is driven by the mutual invigoration that takes place when employees each perform at their full potential.

At Konica Minolta, the president is responsible for promoting diversity, and the Corporate Diversity & Inclusion Office drives the relevant initiatives.

The office plans and implements various measures including training for employees, awareness-building activities, and internal status surveys, and it regularly reports the results of these initiatives to the president. The importance of the diversity and inclusion efforts is communicated by the president personally in and outside the company, along with the achievements.

In fiscal 2014, Konica Minolta launched its medium-term business plan, TRANSFORM 2016, targeting success in the IoT era. In fiscal 2017, the new plan, SHINKA 2019, was introduced, under which the company is promoting business transformation with the aim of becoming a truly global company of excellence. It goes without saying that innovative human resources are needed to accelerate digital transformation (DX) and achieve this business transformation. The concept of diversity and inclusion is more important than ever before, and it is critical that this be reflected in the actions of employees. Against this backdrop, in fiscal 2017, Konica Minolta, Inc. established the Corporate Diversity Office, reporting directly to the president, reflecting the president's strong commitment to promote diversity. In April 2019, the organization's name was changed to the Corporate Diversity & Inclusion Office reflecting Konica Minolta's decision to be inclusive of diverse individual personalities and to bring everyone together to drive innovation.

The Corporate Diversity & Inclusion Office is working to foster an organizational culture that embraces all kinds of personalities, values everyone's individuality equally, and brings together diverse individuals to create a powerful force. Konica Minolta continues to promote the active advancement of female employees, which it has been emphasizing since fiscal 2016, and is working on various initiatives in this area. Recognizing the importance of fairness in job assignment and equal-opportunity hiring, as well as the relevant issues, the company conducts fact-finding surveys and analyzes them.

The Corporate Diversity & Inclusion Office is striving to ensure a deep understanding of diversity and inclusion among employees, and since fiscal 2016, it has been working to support the success of Konica Minolta's female employees. The office also continues to work with various departments to promote the participation of international employees and people with disabilities by creating an organizational culture that respects not only diversity in attributes, such as gender and nationality, but also diversity in values and views of life.

Konica Minolta's Approach

Supporting Career Development of Women

Facilitating the Success of Female EmployeesNumerical Targets for Female Career Promotion

Initiatives to Support the Success of Female Employees

Initiatives in since Fiscal 2017-2019

External Evaluation

Special subsidiary "Konica Minolta With You, Inc."Promotes Employment of People with Disabilities

Utilizing Employee Experiences Gained Outside the Company and Abroad

Konica Minolta's Approach

Assignment of Non-Japanese Human Resources and Mid-Career Hires in Japan

Providing Opportunities to Gain Experience andKnowledge Outside the Company

Provision of Innovation Creation Places

Diversity

Supporting Women's Career Building

Konica Minolta's ApproachSupporting Career Development of WomenInitiatives to Support the Success of Female Employees

Konica Minolta's Approach

Background and Issues

Gender equality and women's empowerment are key issues for the global community, and they are also vital to achieving the SDGs. In Japan, however, despite the fact that both men and women are generally highly educated, the reality is that women still face barriers when it comes to leadership and participation across the board. Konica Minolta recognizes the urgent need to develop an environment that facilitates women's success in its industry.

Vision

Konica Minolta believes that employee diversity is a source of growth. The company takes measures to create an environment where women can perform to their full potential. In order to accelerate the success of its female employees, Konica Minolta does not limit itself to simply ensuring that they can keep working through various life events, but also aims to expand their access to any career path they want to pursue.

Key Measures and KPIs

Fostering awareness and a culture supportive of diversity, with a focus on promoting participation by women

Consider ways of supporting life events affecting both men and women, such as childbirth, child-rearing and caretaking, and consider work styles tailored to these life events

Appointing female managers (target for fiscal 2021: Women hold 8% of all management positions)

Raising the percentage of women among new graduate hires (target for fiscal 2020: 30% or more)

Supporting Career Development of Women

Facilitating the Success of Female Employees

For many years Konica Minolta has proactively provided equal employment opportunities for men and women, while working to build systems that can respond flexibly to the circumstances and needs of employees. These include adjusted work hours, volume, and content for employees expecting a child, or those looking after a child or family member. The company has striven to create workplace environments that make it easier for employees to remain employed while fulfilling family responsibilities. As the next step, Konica Minolta is undertaking measures to help empower female employees and allow even more women not only to remain employed but to enjoy success and career satisfaction.

Numerical Targets for Female Career Promotion

Konica Minolta, Inc. is working hard to achieve the targets of its action plan, which is based on Japan's Act on Promotion of Women's Participation and Advancement in the Workplace. The plan aims to empower more women to reach leadership positions and broaden their spheres of activity.

Target:To raise the percentage of management positions held by women to 8% in fiscal 2021.

Action Plan:

April 1, 2020 - March 31, 2022

8% of management positions held by women 12% of the young assistant managers who are candidates for the next management position are women 40% or more of female managers are organizational heads

Selective training of manager candidates in Performance Grade 3Rapid advancement by enhancing training for young employees

Implemented as needed

Status of women at Konica Minolta, Inc.

Achievement of the target for 7% of managers to be women by the end of fiscal 2019 fell short at 6.8% (as of March 31, 2020). The level has continued to rise steadily every year, and the company aims to achieve the target by continuing and enhancing its measures. In fiscal 2018,

Konica Minolta, Inc. appointed its first female executive officer.

Initiatives to Support the Success of Female Employees

Konica Minolta, Inc. has put a number of career development programs for women in place since fiscal 2010 in order to further encourage female employees to fulfill their potential. In fiscal 2014, it implemented a program for women selected from those at the section chief level for having potential as managers and assisted them in their career development plans while also providing them with leadership training. The company also holds meetings to explain its promotion policy for female employees to the supervisors of the women chosen for this program, and it is implementing a six-month support program with mentors other than the supervisors in charge of guidance and training.

Since fiscal 2016, the company has been accelerating its initiatives by making the advancement of women part of diversity promotion, and clearly stating this in its management strategy.

Initiatives in Fiscal 2017-2019

In fiscal 2016, Konica Minolta, Inc. established a Women's Committee under the leadership of the company president, who has the ultimate responsibility for creating a foundation for full-scale promotion of female employees' advancement. As part of the committee's activities, workshops and a company-wide survey were conducted to gather feedback from all female employees and to identify the issues and conditions they face. The Corporate Diversity & Inclusion Office, headed by the president, took over the Women's Committee's activities in fiscal 2017 and has been carrying out various activities based on the three-year medium term business plan.

International Women's Day Program

In March 2018, Konica Minolta, Inc. held its first program to mark International Women's Day,* and more than 300 Konica Minolta women participated. Under a theme of "Connections," the program's aim was for women to develop comradery with diverse colleagues in the company through networking, to learn about their differences, and to find opportunities for new development and progress. The day began with a speech from Shoei Yamana, President and CEO of Konica Minolta, Inc., which was shared with four company sites in Japan via video conferencing. After that, a lecture was given by a special guest along with a workshop. The workshop allowed participants to experience the benefits of diversity that can be achieved by utilizing the strengths of each individual as part of a team. By using IT to bring together four sites in different regions and create one virtual event, the participants were all able to share the same experience, while engaging in a joint initiative with a joint sense of accomplishment.

International Women's Day Program

* International Women's Day (March 8) was created by the United Nations in 1975,

marking the date of a mass demonstration for a woman's right to vote that took place in New York on March 8, 1904.

International Women's Day Initiatives Outside Japan

In fiscal 2019, senior management issued messages in Europe for International Women's Day to support female employees and build an inclusive culture. (An inclusive organizational culture is one where diverse human resources are not only present, but are also able to demonstrate their individual capabilities and play an active role.) Konica Minolta's president also appeared at an event and shared his thoughts. In the US, a Women's Day Contest was held to recognize employees who support women's career advancement. In addition, a short video was released to communicate "the positive change that gender diversity brings to the business" and messages were issued both publicly and internally. In addition, women leaders who are active on a global level also appeared in the video and shared their thoughts.

Message from the President & CEO

Company-Wide Diversity Promotion Program

In fiscal 2017, Konica Minolta, Inc. held an International Women's Day. From January to March 2019, the company built upon this through a company-wide program, "Turning Diversity into a Strength! 2018," where a total of 1,000 employees participated. Under the overall theme of "Respect (Understanding and Accepting Each Other's Differences)," workshops, panel discussions, and lectures were given on 18 occasions at six sites. Additionally, a special lecture was given and shared with 15 company sites in Japan via video conferencing.

Lecture by astronaut Takao Doi

(standing, left)

It was an opportunity for each participant to consider differences due to gender, age and position as well as differences in people's outlook on life and their values. It also prompted them to think about how to turn that diversity into strength.

Lecture for Senior Management

In order to promote a deep understanding of diversity and inclusion among executive management, the company began regularly inviting outside experts to deliver lectures in fiscal 2017. In fiscal 2018, an executive of a major firm known for its advanced initiatives was invited to give a lecture, which was attended by officers and division general managers.

Diversity Workshop for Senior Managers

Workshops were held for those in senior manager positions and above, allowing them to deepen their understanding of the importance of diversity and preparing them to further develop employees in their own organizations. Around 300 senior managers participated in a total of 12 sessions from fiscal 2017 through fiscal 2018. At the end of each workshop, the participants pledged to promote diversity in their own departments.

Diversity Workshop for

Senior Managers

Workshops for Female Staff and Managers

A career planning workshop was held to encourage individual female employees to better appreciate their own value and strengths in action, to acquire skills and abilities for developing their own career plans, and to find a path towards ongoing personal growth. A management workshop was also held for the immediate supervisors of these female staff. The purpose was to enhance the ability of these managers to provide career support to their subordinates based on an understanding of the need for diversity in human resource development.

These two workshops were jointly planned, and by having female employees and their direct supervisors attend workshops around the same time, both groups were able to share an approach for career formation and an understanding of the issues, while enhancing their commitment. The company has been holding these workshops for female employees and their direct supervisors since fiscal 2017. Around 350 employees and managers have participated over the last three years.

Diversity Advocates

Employee volunteers sign up to be diversity advocates and take the initiative to promote diversity at the frontlines in each region. Asking themselves, "What changes can we ourselves create," these advocates think about challenges in the status quo and implement solutions. In fiscal 2018, two advocate teams were formedʕin eastern and western Japanʕgathering diverse members of different ages, genders, and nationalities. Each member has her or his own awareness of the issueʕfrom experience raising children, to caring for family members, to status as a non-Japanese employee. Members engaged in lively dialogues and discussions. Workshops and consultations were also held involving employees from relevant sites, sharing information useful to all employees.

In order to carry out grassroots diversity and inclusion (D&I) activities in every workplace, D&I advocates were appointed and advocate meetings were held. Along with good practices, the advocates shared information with one another on how to enhance D&I activities in the workplace.

External Evaluation

Platinum Kurumin Certification (FY2017)

Konica Minolta, Inc. was recognized by Japan's Minister of Health, Labour and Welfare as an exceptional example of a company that provides support to employees raising children.

Platinum Kurumin certification mark

Eruboshi Certification (FY2016)

As a company with an outstanding environment for promoting the role of women in the workplace, Konica Minolta was awarded the highest Eruboshi certification by Japan's Minister of Health, Labour and Welfare, under the Act on Promotion of Women's Participation and Advancement in the Workplace.

The Eruboshi certification mark

Diversity

Utilizing Employee Experiences Gained Outside the Company and Abroad

Konica Minolta's ApproachAssignment of Non-Japanese Talent and Mid-Career Hires in Japan

Providing Opportunities to Gain Experience and Knowledge Outside the Company

Provision of Innovation Creation Places

Konica Minolta's Approach

Background and Issues

In order to connect the promotion of diversity to the creation of innovation, it is important to build a team of employees with diversity in nationality, race, gender, age, and expertise, while also having individual employees with diverse experiences and perspectives. Konica Minolta believes in generating innovation by ensuring that diverse employees share ideas based on different perspectives.

Vision

Konica Minolta actively hires people in mid-career and people from outside of Japan. In addition, employees are encouraged to gain broad experience and knowledge outside the company and venues are provided for diversely talented individuals to share ideas.

By generating innovation with these measures, the company aims to meet the needs of its global customers and to create new value that goes beyond existing concepts.

Key Measures

Actively recruiting mid-career human resources and personnel from outside of JapanProviding opportunities to gain experience and knowledge outside of the company

Promoting exchanges among employees globally and providing venues for creating innovation where diverse employees can inspire and learn from each other

Assignment of Non-Japanese Talent and Mid-Career Hires in Japan

Konica Minolta, Inc. actively hires mid-career employees to help create innovation in Japan. The company is striving to secure the diversity of its human resources by also recruiting non-Japanese new university graduates, as well as Japanese graduates with experience living abroad.

Percentage of Mid-career Hires in Fiscal 2019

Percentage of mid-career hires among total recruitment: 40% (fiscal 2019)

Percentage of Global Human Resources Who Joined the Company in April 2020

Percentage of non-Japanese nationals among new hires: 10% (who joined the company in April 2020)

Providing Opportunities to Gain Experience and Knowledge Outside the Company

In fiscal 2017, Konica Minolta, Inc. began encouraging employees to engage in outside projects, while also introducing a job return system, with the aim of strengthening individual diversity through experience outside the company. In fiscal 2017, it also launched an overseas dispatch program to allow young talented employees to improve themselves through friendly competition overseas at an early stage in their careers to support the establishment of their individual identities.

Through these initiatives, the company seeks to further enhance its diversity, by strengthening individual diversity and increasing the number of personnel with diverse experience and knowledge.

Encouraging Employees to Engage in Outside Projects, and Introduces a Job Return System

Expanding the System for Creating Innovation

Global Assignment Program for Early Career Talent

Human Resource Development

Provision of Innovation Creation Places

Group companies outside of Japan utilize the Technology Innovation Program to develop mechanisms to create and accelerate innovation across different business sectors and national borders.

The Technology Innovation Program began in 2015 in the EU, and now every year more than 50 members from over 10 countries meet to discuss new business opportunities, spending 10% of their time over a 6-month period on developing products, platforms or services to address real business challenges.

This program was also launched in 2019 in the Asia-Pacific region, where it aims to accelerate new innovation.

Diversity

Employment of People with Disabilities

Special Subsidiary "Konica Minolta With You, Inc." Promotes Employment of People with Disabilities

In September 2013, Konica Minolta established the special subsidiary Konica Minolta With You, Inc. to support the independence of persons with disabilities through employment. The "With You" in the company name expresses the intention that the company is not just doing something for persons with disabilities but rather that it works with them to enhance their participation in society. Through this subsidiary, Konica Minolta is pursuing the social independence and mainstreaming of persons with disabilities.

In order for employees to feel pride and satisfaction through their work, Konica Minolta With You, Inc. enables its new hires to experience a variety of jobs during the first three years after joining the company, and helps them to create a long-term career vision with goals to achieve within five years. In this way, the company supports career development for people with disabilities, with the aim of maximizing their professional skills. Employees engage in a variety of duties including printing business cards and pamphlets, digitizing documents, data entry, and serving customers at a café and shop and on site.

In FY 2019, the company established an Engineering Group as a new initiative. It contributes to the business by cleaning Konica Minolta MFPs used by customers, performing image adjustments and other maintenance, as well as refurbishing and maintaining unit components for large digital printing machines.

At the Good Career Company Awards 2019, sponsored by Japan's Ministry of Health, Labour and Welfare, Konica Minolta With You, Inc. was recognized with an Innovation Award (Human Resources Development Bureau Director-General Award).

Click here for details of the award (Developing Human CapitalʼEvaluation by External Parties)

Printing business cards and pamphlets

Customer service at a café on site

Engineering Group members cleaning a Konica Minolta

MFP

See the "Human Resources Data Summary" for the employment rate of people with disabilities.

Human Resources Data Summary

Essential Requirements to Fulfill Sustainability

Corporate Governance

Konica Minolta, Inc. has established a corporate governance framework from the standpoint of supervision. This is based on the conviction that corporate governance that contributes to medium- and long-term corporate value growth must encourage suitable risk-taking in business operations and have a highly effective supervisory function for business operations.

In 2003, the "company with committees" structure (currently "company with three committees") was selected as the organizational structure in accordance with Japan's Companies Act. In addition, the company has taken steps to ensure its governance system is objective and not overly influenced by personalities, while still operating the system in a distinctive Konica Minolta style.

Basic Policy on Corporate Governance (299KB)

Corporate Governance Report (622KB)

Corporate Governance System

Basic views with regard to governance system

Basic Views

Structure of Corporate Governance Systems (As of June 30, 2020)

Detail of Corporate Governance System

Board of Directors

Executive OfficersNominating CommitteeAudit CommitteeCompensation Committee

Risk Management

Internal Control Measures

Complying with Japan's Financial Instruments and Exchange Law

Communication with Shareholders and Investors

Basic Concept

Risk Management System

Building a Risk Management System

Risk Information

Building a Crisis Management SystemBusiness Continuity Management (BCM)Reinforcing Crisis Response and BCM

Basic Concept

Active deployment of investor relations activities

IR Activities by Top Management

Strengthening the Dissemination of InformationCommunication with Shareholders and Investors

Corporate Governance Report

Measures to Vitalize the General Shareholder Meetings and Smooth Exercise of Voting Rights.

Corporate Governance

Corporate Governance System

Basic views with regard to governance system

Basic Views

The company's basic views with regard to its governance system are as follows.

Ensuring management oversight for corporate value growth by separating the roles of management oversight and operation of business activities

Election of independent outside directors who can perform supervision from the standpoint of shareholdersUsing these measures for improving the transparency, integrity and efficiency of management

Structure of Corporate Governance Systems (As of June 30, 2020)

Detail of Corporate Governance System

Board of Directors

Since the company is a company with three committees, the Board of Directors delegates to executive officers as much authority as allowed by laws and regulations for making operational decisions. This contributes to the speed and flexibility of managing business operations.

The Board of Directors makes decisions solely about items, such as fundamental management policies, that can be determined only by the directors, according to laws and regulations. In addition, the Board of Directors makes decisions about investments larger than a certain amount and such other items that will have a significant impact on the Konica Minolta Group.

In addition, the Board of Directors enhances sustainable growth and corporate value for the Group by ensuring management oversight.

Executive Officers

The executive officers are responsible for deciding how to perform the operations delegated by Board of Director resolutions, and then executing those operations.

In addition, based on substantial delegation of authority by the Board of Directors, the executive officers work to accelerate decision-making in business execution.

Nominating Committee

The Nominating Committee decides the content of proposals for director appointment and dismissal to be submitted to the General Meeting of Shareholders. It also receives reports concerning succession planning (candidate training and selection) from the President and CEO, as necessary, and supervises the process.

Audit Committee

The Audit Committee reviews the execution of duties by directors and executive officers, prepares audit reports, and decides the content of proposals for appointment, dismissal, and non-reappointment of accounting auditors to be submitted to the General Meeting of Shareholders.

Compensation Committee

The Compensation Committee decides the details of individual compensation, bonuses, and other benefits received from the company as consideration for duties performed by the directors and executive officers.

Governance Structure and Operations

Operations of the Board of Directors

Operation

Attendance

Support System for Outside DirectorsFeedback on Board of Directors Effectiveness

Policy and Procedures for Appointing Director Candidates, and the Applicable Approaches and Standards, etc

Policy and Procedures for Appointing Director Candidates

The Applicable Approaches and Standards for Appointing Director CandidatesOutside Directors (As of June 19, 2018)

Executive System and Appointment of Executive Officers

Executive System

Selection of Executive Officers

Compensation for Directors and Executive Officers

Revisions of the compensation policyCompensation Policy

Amount of compensation paid to directors and executive officers for the year ended March 2018

Guidelines on Officer Ownership of Konica Minolta Shares

Group Auditing System

Audit Committee System and RolesCorporate Audit Division Systems and Role

Corporate Governance System

Governance Structure and Operations

Operations of the Board of Directors

Policy and Procedures for Appointing Director Candidates, and the Applicable Approaches and Standards, etc

Executive System and Appointment of Executive OfficersCompensation for Directors and Executive Officers

Group Auditing System

Operations of the Board of Directors

Operation

As a general rule, the Board of Directors meets once each month. Before each meeting, the directors are expected to make themselves familiar with the proposed resolutions, and materials are distributed to outside directors in advance so that effective discussions can be held on the day of the meeting. In addition, before important management decisions are made, the executive officer responsible sometimes gives a preliminarily explanation concerning the matter at hand.

The seating position of the directors is changed at every meeting, except for that of the chairman and the president, and other such measures are taken to further enhance communication among the directors and ensure that the meetings are dynamic.

Attendance

The meeting results and attendance rates for the Board of Directors and the three committees at the end of fiscal 2019 were as follows.

Furthermore, the attendance rate at Board of Directors and the three committee meetings for the five outside directors (Kimikazu Noumi, Takashi Hatchoji, Taketsugu Fujiwara, Chikatomo Hodo, and Sakie T. Fukushima) was 100%.

Note: All members of the Board of Directors are required to attend more than 80% of the meetings. In order to achieve this attendance rate, the number of companies which they can serve as directors (officers under Japan's Companies Act) is restricted to no more than three in principle.

Board of

Directors

Number of meetings

12

6

Attendance rates for all directors (%)

100

100

Attendance rates for outside directors (%)

100

100

Nominating

Audit

Total

Committee

Committee

13

7

38

100

100

100

100

100

100

Compensation

Committee

Activities of the Board of Directors and the Three Committees in Fiscal 2019

  • 1. Board of Directors

    Fiscal 2019 was the final year of Medium Term Business Plan SHINKA 2019, and a review of the progress made on each business strategy and key measure has been monitored in each business domain: foundational, growth, and new. Deliberations aimed at formulation of the next medium-term business plan were also conducted.

  • 2. Nominating Committee

    As indicated in the "Policy and procedure for nomination of director candidates" and the "Reasons for selecting candidates for director," the Nominating Committee nominated director candidates. It also received reports regarding the president and CEO's plan for selecting a successor and continuously supervised this.

  • 3. Audit Committee

    The Audit Committee audited the legality and propriety of management decision made by directors and executive officers, confirmed the facts of improper conduct as well as violations of the law or articles of incorporation, and monitored and verified the internal control system that has been established and put into operation. It also rigorously reviewed whether an independent position was maintained in the external accounting auditor's audit and whether a proper audit was conducted.

4. Compensation Committee

The Compensation Committee confirmed the appropriateness of compensation systems and levels ahead of the determining of compensation for individual director. It also discussed and settled partial revisions of the fiscal 2020 compensation policy, and director compensation scheme.

Support System for Outside Directors

  • 1. At the time of appointment, each outside director is provided with information including the company overview, business content, organizational structures and personnel, the Medium-Term Management Plan, the budget and the corporate governance of the company.

  • 2. After appointment, outside directors receive information about each business area of the company, such as its position in the whole company business portfolio, composition of the company's business portfolio, the company's position in each industry field and business environments. Outside directors also conduct frontline inspections in departments such as development, production, sales, and service in each business area, and they receive the latest information from the responsible executive officers.

  • 3. A Board of Directors Office has been established as the secretariat for the Board of Directors, Nominating Committee, and Compensation Committee, while the Audit Committee Office serves as the secretariat for the Audit Committee. The staff members of these offices support the outside directors to enable the Board of Directors and committees to function properly. Members of this office also distribute the document in advance concerning agenda items to outside directors, and create proposals and plans for visits to company facilities and accompany outside directors as needed as part of activities to these directors. The objectives are to enable outside directors to thoroughly discuss subjects at the Board of Directors meetings and to ensure that these meetings take place with no difficulties.

Training of Directors

In accordance with the director election standards, the Nominating Committee selects candidates for election as director who have the qualities needed to be a director. The company confirms whether new directors require training judging from each individual's knowledge, experience and other characteristics. If training is needed, the company provides suitable opportunities to receive this training.

  • 1. For new independent outside directors, the company provides information about the group's structure, business activities and finances as well as information about the medium term business plan and its progress and other subjects. These new directors also receive basic information about the company's businesses and corporate-level functions.

  • 2. For independent outside directors, the company arranges visits to the development, manufacturing, sales, service and other operations of every business unit. The executive officer of each business unit provides the directors with the latest information about that business.

    Activities in fiscal 2019:

    • (1) Inspection tours in Japan (factories and sales offices, including at subsidiaries) Two tours with the cumulative participation of three outside directors

    • (2) Inspection tours outside Japan (factories and sales offices, including at subsidiaries) One tour with the cumulative participation of two outside directors

    • (3) In-house announcement events for each business (Value Creation Forum)

      In-house announcement events business (Value Creation Forum) in four business areas with participation of seven outside directors

    • (4) Executive officer conference (strategy discussion, issue review) Held once with five outside directors participating as observers

    • (5) External exhibitions

      Two external exhibitions with the participation of a total of three outside directors

  • 3. New inside directors are provided opportunities to attend governance training held by external institutions, and information about various seminars is given to inside and outside directors as opportunities to participate when appropriate.

Feedback on Board of Directors Effectiveness

In 2003, the company became a company with committees (now a company with three committees). To determine if the corporate governance system is functioning as intended, the company started performing self-assessments in 2004 concerning the Board of Directors' effectiveness. Self-assessments have been performed every year since then in order to make improvements.

In fiscal 2016, an external organization was commissioned to conduct a questionnaire and interviews with the intention of enhancing objectivity by including the perspective of a third party and clarifying issues that were not noticed in conventional self-assessments.

The company now has a PDCA cycle that covers assessments and the analysis of results, the establishment of policies for the operation of the Board of Directors in the next fiscal year, and the creation and implementation of a plan for the board's operations. PDCA is used, while reviewing the content of the self-assessment questionnaire annually, as a tool for continuous improvements in the effectiveness of the Board of Directors.

In fiscal 2019, the company aimed to return to the basics and understand the actual response status and issues related to each principle of the Corporate Governance Code (CG Code), in order to confirm whether the company's corporate governance is suited to its goal: the achievement of sustainable growth and increases in corporate value over the medium to long term.

Corporate Governance Report (965KB)

Policy and Procedures for Appointing Director Candidates, and the Applicable Approaches and Standards, etc

Policy and Procedures for Appointing Director Candidates

The Nominating Committee starts each year by performing reviews of the composition of the Board of Directors and committees and of the standards for the selection of directors and committee members. By performing examinations from the standpoints of balance of career and skill, diversity and other factors, this committee aims to upgrade its selections of director candidates. The following process is used to make selections.

1.Board of Directors

  • (1) The Nominating Committee examines the objectives of the composition of the board and then confirms a proposal for the total number of directors, the number of outside directors, and the number of inside directors who do and do not concurrently serve as executive officers.

  • (2) Confirmation of directors who will resign due to standards for the number of years as a director or age, and expected number of new outside director and new inside director candidates.

*Use the link below for detailed information.

Approach to the Overall Board of Directors Composition

2.Outside Directors

  • (1) To select outside director candidates, after the Nominating Committee confirms the selection process, the requirements (necessary careers and skills) for the new outside directors are determined, considering the combination with the outside directors to be re-appointed, in order to ensure that the company will obtain useful supervision and advice on operational issues. Based on these considerations, the Nominating Committee chairperson asks for a broad range of recommendations for candidates, based on information from Nominating Committee members, other outside directors and the president and CEO. To provide reference information, the Board of Directors Office distributes to Nominating Committee members a candidate database, centered on "chairperson" of excellent companies, which includes information about independence, age, concurrent positions and other characteristics of candidates.

  • (2) From the candidates recommended through the preceding process, the Nominating Committee uses the following steps to narrow down the number of candidates and establish an order of priority.

    Selection standards for directors

    Standard for independence of outside directors

    Balance of career and skill required for outside director candidates and diversity

  • (3) Using the order of priority for candidates, the Nominating Committee chairperson and Chairman of the Board of Directors visit and approach the candidates to serve as an outside director.

3.Inside Directors

  • (1) Candidates for inside director are jointly proposed with the Nominating Committee following discussions between the Chairman of the Board of Directors and the president and CEO concerning proposed candidates for non-executive directors and directors who concurrently serve as executive officers based on the president and CEO sharing his plan for the executive system for the next fiscal year with the Chairman of the Board of Directors, with emphasis placed on the following points.

    Selection standards for directors

    Roles of directors who do and do not concurrently serve as executive officers

    Required skills, experience and other characteristics of directors who do and do not concurrently serve as executive officers

  • (2) The Nominating Committee uses the draft proposals to examine the candidates.

The Applicable Approaches and Standards for Appointing Director Candidates

1.Board of Directors

  • (1) Approach to the Overall Board of Directors Composition

    The Board of Directors is composed of a number of directors within the scope provided in the Articles of Incorporation, taking into account the management issues the Board of Directors is required to address.

    • 1) To ensure management transparency and supervisory objectivity, oversight of management, it is require one-third or more of the directors be independent outside directors, and directors who do not concurrently serve as executive officers constitute the majority of the total number of directors.

    • 2) To enhance the management supervision function, liaise with the independent outside directors and strengthen communication and cooperation with executive officers, more than one inside directors not concurrently serving as executive officers will be appointed.

    • 3) To further enhance deliberations on important decisions from a management standpoint, in addition to the president and CEO, several executive officers in charge of principal duties will be appointed as directors.

    • 4) The Nominating, Audit and Compensation committees are all chaired by outside directors to ensure transparency and objectivity. In addition, to ensure that each committee adequately fulfills its respective roles, each committee is composed of around five members, and a majority of its members is independent outside directors.

    • 5) Concerning the size of the Board of Directors, the company considers 10 or 12 directors to be the appropriate number from the standpoint of ensuring the proper composition of the board with respect to inside directors who do not concurrently serve as executive officers, inside directors who concurrently serve as executive officers, and outside directors.

    • 6) For more information about the diversity of the Board of Directors, see "Balance of career and skill required for outside director candidates and diversity."

  • (2) Selection Standards for Directors

    The Nominating Committee has selected candidates who satisfy the following standards as being suitable directors for achieving good corporate governance, i.e., ensuring the transparency, soundness and efficiency of the company's operations.

    • 1) Good physical and mental health

    • 2) A person that is well liked, dignified, and ethical

    • 3) Completely law-abiding

    • 4) In addition to having objective decision-making abilities for management, the person must have good foresight and insight

    • 5) Someone with no potential conflict of interest or outside business relations that may affect management decisions in the company's main business areas, and who has either organizational management experience in the business, academic, or governmental sectors or specialized knowledge in technology, accounting, law, or other fields.

    • 6) For outside directors, a candidate with a history of performance and insight in their field, someone with sufficient time to fulfill the duties of a director, and who has the ability to execute required duties as a member of the three relevant committees.

    • 7) The Nominating Committee has separately set points for consideration in the re-election of directors and requirements concerning the number of terms of office, age and other factors. Especially, in principle, existing terms of office for outside directors are up to four years.

    • 8) In addition, the candidate must have the abilities necessary for a director to run and build a public corporation that is transparent, sound, and efficient.

2.Outside Directors

  • (1) Criteria on the Independence of Outside Directors

    The following types of people are ineligible to serve as outside directors at Konica Minolta. Our Nomination Committee selects outside director candidates with a high level of independence, provided that none of the following criteria apply.

    • 1) Person affiliated with Konica Minolta

      Former employee of the Konica Minolta Group

      Having a family member (spouse, child, or any blood or marital relative twice removed or less) that has served as a director, executive officer, auditor or top manager in the Konica Minolta Group during the past five years.

    • 2) Person affiliated with a major supplier/client

      Currently serving as a managing director, executive officer, or employee of a major supplier/client company/group that receives 2% or more of its consolidated sales from the Konica Minolta Group or vice versa.

    • 3) Specialized service provider (lawyer, accountant, tax accountant, patent lawyer, judicial scrivener, or a consultant for management, finance, technology, or marketing)

      Specialized service provider that received annual compensation of ¥5 million or more from the Konica Minolta Group during the past two years.

    • 4) Other

      A shareholder holding more than 10% of the voting rights in the company (executive directors, executives, or employees in the case of a corporate body)

      A director taking part in a director exchange

      A director, executive officer, auditor or equivalent position-holder of a company that competes with the Konica Minolta

    Group, or someone holding 3% or more of the shares of a competing company (who is not eligible to be a director of any kind)

    Having some other conflict of interest with the Konica Minolta Group

    The Company, under the rules of the Nominating Committee, in principle, limits the period in office of outside directors to four years (reappointment limit). This rule is based on the concern that the objectivity of these Directors may decline as the length of time in office increases.

  • (2) Balance of Career and Skill Required for Outside Director Candidates and Diversity.

    • 1) To ensure the diversity of directors, the Nominating Committee Rules for selection standards for directors state that candidates should "have experience operating an organization in the industrial, government or academic sector or have specialized skills involving technologies, accounting, law or other fields" and "have accomplishments and knowledge in their respective fields suitable for outside director candidates."

    • 2) Candidates should have the character, skill and experience needed for strengthening and upgrading management in order to enable the Board of Directors to determine the company's strategic direction.

    • 3) Based on a full understanding of the importance of gender and international diversity, a career and skill matrix is prepared for each outside director candidate for reelection or election as a new director. The matrix includes the business sector, major management experience, fields of expertise and other characteristics of each candidate to provide information about the diversity of their careers and skills. The objective is to select candidates who can provide useful oversight and advice during discussions of management issues by the Board of Directors.

    • 4) Outside director candidates are not excluded from consideration on the basis of their gender, nationality, country of birth, cultural background, race, or ethnicity.

    • 5) In selecting new outside director candidates for appointment at the General Meeting of Shareholders in 2020, the above-mentioned points of view were given. The candidates selected have abundant experience in management, legal, and internal control system of the manufacturing industry, and who could be expected to provide useful oversight and advice.

ˎ

The following principle from the Corporate Governance Code (version revised on June 1, 2018) was explained.

Reason for non-compliance with [Principle4-11Preconditions for Board of Directors and Kansayaku Board Effectiveness]Regarding diversity, including gender and international aspects, and appropriate size

The company has paid due heed to "the board should be well balanced in knowledge, experience and skills in order to fulfill its roles and responsibilities," and "it should be constituted in a manner to achieve both diversity and appropriate size," as stipulated in the principle. However, while consideration of diversity naturally took into account gender and nationality, it was not realistic to commit to forming a Board of Directors that definitely realized the gender and nationality aspects while still achieving an appropriate size. In order to secure the effectiveness of the Board of Directors, the company considers the credentials of a director to be more important than their demographic characteristics.

(3) Expected Roles of Outside Directors.

  • 1) To participate in important decisions made by the Board of Directors and supervise the decision-making process

  • 2) To submit advice about the establishment of management policies and plans and about reports concerning business operations by using their experience and knowledge

  • 3) To oversee conflicts of interest among the company, its shareholders, senior executives and others

  • 4) To supervise management to protect ordinary shareholders and to reflect the interests of shareholders from the standpoint of ordinary shareholders, which is independent from senior executives and special stakeholders

  • 5) To supervise management as members of the Nominating, Audit and Compensation Committees

3.Inside Directors

(1) Stance Concerning Roles of Inside Directors and Selection of Candidates.

  • 1) The chairman of the Board of Directors calls meetings of the board and chairs the meetings. In addition, the chairman is responsible for overseeing improvements in the effectiveness of corporate governance. The chairman ensures that agenda items are handled in a manner that facilitates constructive discussions in an open and unrestricted manner. The chairman also asks questions and takes other actions from the standpoint of providing oversight and ideas and suggestions. Furthermore, based on assessments of the effectiveness of the board, the chairman establishes policies for the board's operations and explains these policies at the board meeting following ordinary general meeting of shareholders.

    The company's previous president and CEO has been selected to serve as chairman in order to have a chairman who has a thorough knowledge of the company's management and can provide highly effective oversight of management. The company's Basic Policy on Corporate Governance and Corporate Organization Basic Regulations require that the chairman shall be a director who does not concurrently serve as executive officer, whether the individual is an outside or inside director.

  • 2) An inside director who is not concurrently an executive officer and who has the ability to ensure the quality of audits is selected as a full-time Audit Committee member.

    The inside director who serves as a full-time Audit Committee member should have extensive management experience as an executive officer of the company in order to improve the effectiveness of the Audit Committee. The qualifications required in particular are experience in accounting and finance or business management and core business management.

    This inside director also serves as the Nominating Committee member and Compensation Committee member.

  • 3) Inside directors who are concurrently executive officers, other than the president and CEO, are selected based on their experience, capabilities and character. They are held accountable for their execution and contribute to energetic and meaningful discussions at Board of Directors meetings. Requirements for these inside directors include responsibility for overseeing major elements of the company's operations such as strategic planning, accounting and finance, technology, as well as for overseeing main business operations in the company.

Executive System and Appointment of Executive Officers

Executive System

  • 1. Under a mandate from the Board of Directors, executive officers make decisions about operations and then execute them. The business execution is overseen by the Board of Directors and reviewed by the Audit Committee to ensure the efficiency, adequacy, legality and soundness of management.

  • 2. Executive officers are appointed by the Board of Directors, which selects the president and CEO, selects senior executive officers from among the executive officers, and establishes a division of duties among the officers. The executive officers, including the president and CEO, make decisions concerning the execution of duties delegated by the Board of Directors, and execute their duties.

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original document
  • Permalink

Disclaimer

Konica Minolta Inc. published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2021 15:32:06 UTC.