Evolution
Konica Minolta, Inc.
3rdQuarter/FY2019 ending in March 2020
Consolidated Financial Results
Three months: October 1, 2019 - December 31, 2019
Nine months: April 1, 2019 - December 31, 2019 - Announced on February 3, 2020 -
Seiji Hatano
Senior Executive Officer
Chief Financial Officer
Konica Minolta, Inc.
Konica Minolta, Inc.
Key points to communicate today
- Professional Print Business is recovering
- Hard:Appeal to customer value succeeded, and unit sales of color units increased YoY, driven by North America
- Non-hard:Revenue returned to positive YoY growth due to higher revenue in India and China and improved numbers in Europe and North America.
- New products: Konica Minolta launched its first new HPP product in February, and these sales will contribute to results in Q4
- Office Business is solid, as expected
- Hard: Effect of new Seg.2/3 products and unit sales of color MFPs, driven by Europe, led to gains YoY
- Non-hard:QoQ improved for the second straight quarter with higher revenue in China, India and Europe
- New products: Sales of new Seg.4 products began, and we expect the sales mix to improve from Q4 onward, primarily in North America
- Profitability: The effect of manufacturing cost reduction would materialize at a faster pace from Q4, and structural reforms would contribute in FY20
- Improvements to profitability in new businesses
- Income improved both YoY and QoQ due to increased revenue inbio-healthcare and stronger control over expenses
- Progress with initiatives aimed at reinforcing profitability in FY20 is in line with plans
- Progress was made with initiatives to reduce costs and make structural reforms withone-off cost ¥8.6bn, and we expect its effect by ¥15.0 billion in FY20
Konica Minolta, Inc. | 1 |
FY2019 9M Performance Overview|Summary
[¥billions]
FY2019 | FY2018 | YoY | YoY | FY2019 | FY2018 | YoY | YoY | ||||||
9M | 9M | (W/O Forex) | 3Q | 3Q | (W/O Forex) | ||||||||
Revenue | 7 4 7 | .0 | 7 7 7 | .6 | -4 % | -0% | 2 4 9 | .5 | 2 6 0 | .5 | -4 % | -0% | |
O per ating Pr ofit | 1 0 | .6 | 5 0 | .5 | -7 9 % | -68% | 5 | .1 | 1 5 | .9 | -6 8 % | -49% | |
Pr ofit attr ibutable to | *-21% | *-13% | |||||||||||
owner s of the | 2 | .2 | 3 3 | .7 | -9 4 % | 2 | .1 | 1 0 | .4 | -8 0 % | |||
Com pany | |||||||||||||
FO REX [ Yen] | |||||||||||||
USD | 108.67 | 111.14 | - 2.47 | 108.76 | 112.9 | - 4.14 | |||||||
EUR | 121.05 | 129.49 | - 8.44 | 120.32 | 128.78 | - 8.46 | |||||||
*Without External and Special Factors
Revenue
Operating
Profit
- Although the external environment remains harsh, on a real basis sales were in line with the previous year when excluding the impact of exchange rates.
- The decline in operating profit continues to improve QoQ when excluding the impact of exchange rates andone-off factors, such as CRE strategy-related profits and expenses.
Konica Minolta, Inc. | 2 |
FY2019 9M Performance Overview|Revenue & Operating Profit by Segment
[¥billions] | ||||||||||||
Revenue | FY2019 | FY2018 | YoY | YoY | FY2019 | FY2018 | YoY | YoY | ||||
9M | 9M | (W/O Forex) | 3Q | 3Q | (W/O Forex) | |||||||
Offic e | 412.2 | 436.5 | - 6% | -2% | 139.0 | 145.7 | - 5% | -0% | ||||
Professional Print | 158.7 | 165.1 | - 4% | +0% | 55.4 | 55.8 | - 1% | +4% | ||||
Healthcare | 63.2 | 61.1 | +3% | +5% | 18.1 | 20.9 | - 13% | -11% | ||||
Industrial | 82.9 | 88.4 | - 6% | -5% | 26.9 | 28.8 | - 7% | -5% | ||||
Optical systems for industrial use | 22.5 | 26.2 | -14% | -11% | 8.0 | 8.2 | - 3% | +1% | ||||
Materials and components | 60.4 | 62.2 | -3% | -3% | 18.9 | 20.6 | - 8% | -8% | ||||
New business | 29.4 | 25.5 | +15% | +19% | 9.9 | 8.8 | +12% | +17% | ||||
Bio-healthcare | 22.4 | 19.0 | +18% | +20% | 7.7 | 6.6 | +17% | +21% | ||||
Others | 7.0 | 6.5 | +9% | +14% | 2.2 | 2.2 | - 2% | +3% | ||||
Corporate, etc . | 0.6 | 1.0 | - 40% | -26% | 0.2 | 0.4 | - 46% | -20% | ||||
Company overall | 747.0 | 777.6 | - 4% | -0% | 249.5 | 260.5 | - 4% | -0% | ||||
Operating profit/OPM | FY2019 | FY2018 | YoY | YoY | FY2019 | FY2018 | YoY | YoY | ||||
9M | 9M | (W/O Forex) | 3Q | 3Q | (W/O Forex) | |||||||
Office | 22.6 | 5.5% | 34.3 | - 34% | -23% | 5.4 | +3.9% | 11.6 | - 53% | -36% | ||
Professional Print | 5.0 | 3.2% | 8.7 | - 42% | -25% | 2.9 | +5.3% | 3.3 | - 11% | +13% | ||
Healthcare | 0.6 | 0.9% | 1.2 | - 50% | -16% | 0.2 | +1.1% | 0.3 | - 41% | -2% | ||
Industrial | 15.4 | 18.6% | 17.0 | - 10% | -10% | 5.6 | +21.0% | 5.6 | +1% | +1% | ||
New business | - 14.8 | - | - 14.0 | ー | ー | - 3.8 | - | - 5.4 | ー | ー | ||
Corporate, etc . | - 18.1 | - | 3.2 | ー | ー | - 5.2 | - | 0.4 | ー | ー | ||
Company overall | 10.6 | 1.4% | 50.5 | - 79% | -68% | 5.1 | +2.1% | 15.9 | - 68% | -49% | ||
Konica Minolta, Inc. | 3 |
FY2019 3M Performance Overview|Bridge-Revenue & Operating Profit (3Q)
[¥billions]
Revenue (3Q) | Operating Profit (3Q) | |
FY18/3Q(3M) | 15.9 | ||
Office | - 2.9 | ||
Professional Print | +0.4 | BF* | -3.3 |
Healthcare | |||
- 0.1 | |||
Industrial Business | - 0.7 | ||
New Business | +1.4 | NB&Co* | |
Corporate, etc. | +1.2 | ||
- 0.2 | |||
FOREX | - 3.0 | ||
U.S. - China tariffs | - 1.0 | ESF* | |
Structural reform expenses etc.… | +0.6 | -8.7 | |
CRE strategy | - 5.3 | ||
FY19/3Q(3M) | 5.1 | ||
FY18: S&LB ¥5.4 bn - | repairs, etc. ¥0.1 bn | ||
*BF: Business Factors | FY19: Repairs, etc., ¥0.0 bn | ||
NB&Co: New Business and Corporate
ESF: External and Special Factors
Konica Minolta, Inc. | 4 |
FY2019 9M Performance Overview|Bridge-Revenue & Operating Profit (9M)
[¥billions]
Revenue (9M) | Operating Profit (9M) | |
FY18/9M | 50.5 | ||||
Office | |||||
- 6.7 | |||||
Professional Print | - 1.8 | BF* | -10.5 | ||
Healthcare | +0.4 | ||||
Industrial Business | - 2.4 | NB&Co* | |||
New Business | - 0.9 | +0 | |||
Corporate, etc. | +0.9 | ||||
FOREX | - 5.7 | ||||
U.S. - China tariffs | - 1.2 | ||||
0.0 | ESF* | ||||
Structural reform expenses etc.… | -29.4 | ||||
- 0.9 | |||||
CRE strategy | - 21.7 | ||||
FY19/9M | |||||
10.6 | |||||
FY18: S&LB ¥20.3 bn - repairs, etc. ¥1.1 bn | |||||
*BF: Business Factors | FY19: Repairs, etc., ¥2.5 bn | ||||
NB&Co: New Business and Corporate
ESF: External and Special Factors
Konica Minolta, Inc. | 5 |
FY2019 | Point of the 2H / 3Q Progress | |||||
■ Improved ■ As planned ■ Not Achieved | ||||||
Points of the Second Half | 3Q Progress | |||||
External | ◼ | Economic slowdown, continuing uncertainty | ■ PMI has remained at 50 or below in Europe from | |||
Environment | over future | 1.5 years ago and in the US since August; | ||||
◼ | Additional tariffs due to US-China trade | China's economy is uncertain | ||||
conflict | ■ Additional tariffs had an impact of ¥1.1 billion | |||||
in Q3 | ||||||
Office | ◼ | Sales of new color Seg2/3 products increase in | ◼Sales picked up in Europe, our main market; | |||
Business | H2 | color Seg2/3 shipments grew 3% in Q3. | ||||
◼ | Recovery from delays in cost reductions | ◼Progress in reducingmanufacturing cost, effect | ||||
◼Introduction of new color Seg4 products (Q4) | of variable cost-cutting partly realized | |||||
◼Expansion of MIF due to the completion of | ◼Sales of new color Seg4 products begun in | |||||
large project installations, and maintenance of | January | |||||
non-hard levels | ◼Steady progress with large projects and | |||||
improvements with non-hard as well | ||||||
Professional | ◼ | Stronger MPPsales with IQ-501 | ■ Gross profit ratio improved due to the appeal of | |||
◼Fixed cost reductions at Chinese plants and | IQ-501, including the inspection function, and | |||||
additional cost reductions | sales growth was restored in North America | |||||
Business | ||||||
◼ | Expand sales further in ASEAN and India | ◼Some effects achieved by cutting fixed costs | ||||
◼Konica Minolta's first HPP model will be | and reducing variable costs | |||||
launched | ◼Unit sales up 15% in ASEAN, and growth | |||||
◼New digital decoration printing equipment | expected in India from Q4 | |||||
products will be launched | ◼Color HPP printer (AccurioPress | |||||
C14000/12000) will be launched in February | ||||||
◼New digital decoration printing equipment | ||||||
product (MGI JETvarnish 3D One) will be | ||||||
launched in February | ||||||
Konica Minolta, Inc. | 6 |
FY2019 Point of the 2H / 3Q Progress
■ Improved | ■ As planned ■ Not Achieved | |||||
Points of the Second Half | 3Q Progress | |||||
Industrial | ・ | Measuring Instruments | ・ | Measuring Instruments | ||
Business | ◼Growth in light source color measuring | ◼Some advance orders for 2020 | ||||
instruments in China and South Korea | smartphone models were shipped | |||||
◼Growth picked up for automotive visual | ◼Several new inquiries at Eines, and | |||||
inspection business | initiatives aimed at increasing contracts | |||||
are ongoing | ||||||
■ Performance Materials: Accelerate shift to | ■ Performance Materials: New resin products | |||||
higher-value-addedproducts by rearranging | ||||||
brought in customer approvalin the large- | ||||||
portfolio | ||||||
scale TV sector | ||||||
New | ・ | Bio-health care | ・ | Bio-healthcare | ||
Business | ■ Accelerate increase in number of testing | ■ Number of tests continue to increase (number | ||||
samples (RNA, checkup market and | of RNA tests exceeds target, | |||||
pharmaceutical market) | ■ Slight delay in CARE program for check up | |||||
■ Improve profitability (reduce costs at inspection | markets | |||||
laboratories, improve efficiency of global R&D) | ■ Consolidation of development functions led to | |||||
■ Expand the number of pharmaceutical | progress in cutting expenses | |||||
development support projects (cancer clinical trials, | ■ New orders in the drug discovery support | |||||
Parkinson's, Alzheimer's) | services increased, but central nervous | |||||
・ | Workplace Hub | system market remain weak | ||||
■ Version upgrade of firmware to improve | ・Workplace Hub | |||||
functionality, package solutions for sales | ■ Progress toward developing main body | |||||
discussions with scope and major reductions in | versions with upgraded functionality in Q4; | |||||
installation and support man-hours | starter package and industry-specific | |||||
■ Efforts to improve sales capacity in the | solutions will gradually be rolled out | |||||
US to yield results, and improve number of | ■ Expand pipeline customers in the US to build | |||||
customers due to stronger engagement by the MFP | up contracts from Q4 | |||||
sales force | ■ Delay on top line revenue growth in other | |||||
new businesses | ||||||
FY2019 3Q Business Segment |Office Business
Quarterly Financial Results
9M
Revenue ・Operating Profit
FY18 | 1Q | 2Q | 3Q | 4Q | |||
Revenue | OP | 125.7 | 127.5 | 125.7 | 130.4 | ||
ITS | 17.9 | 19.7 | 20.0 | 21.0 | |||
OP | 9.3 | 13.4 | 11.6 | 12.8 | |||
FY19 | 1Q | 2Q | 3Q | YoY | |||
Revenue | OP | 116.4 | 120.9 | 119.6 | -5% | ||
ITS | 18.1 | 17.7 | 19.4 | -3% | |||
OP | 7.7 | 9.4 | 5.4 | -53% | |||
OP | ITS | ||||||||
YoY | 436.5 | YoY -6% | 38.0 | 8% | |||||
412.2 | 33.0 | 5% | 10% | ||||||
-4% | 57.6 | ||||||||
55.2 | 28.0 | 5% | |||||||
23.0 | YoY -34% | 0% | |||||||
18.0 | 34.3 | ||||||||
-6% | 378.9 | -5% | |||||||
357.0 | |||||||||
13.0 | |||||||||
22.6 | |||||||||
-10% | |||||||||
8.0 | |||||||||
3.0 | -15% | ||||||||
-2.0 | -20% | ||||||||
FY18 | FY19 | FY18 | FY19 | ||||||
Revenue | Operating Profit | ||||||||
[¥billions]
3Q Summary
Office(OP)
- Progress was made in large project installations in Europe, and the mainstay new color Seg2/3 product (bizhub C250i/C300i /C360i) drove a 10% jump up in shipments.
- Although sales of the new color Seg3 rose 9% in North America, sales of the mainstay Seg4 current model failed to grow, and sales were down 9% overall.
- Sales remained low in China, but partner sales increased significantly.
- While prioritizing supply and quality, Konica Minolta continued activities aimed at manufacturing cost reduction for new products, and realized the effect ofcost-cutting for some variable costs.
- Non-hardimproved in line with forecasts (-0.7%)
IT Services Solutions(ITS)
- Sales were down temporarily due to a narrowing down of the service menu to raise profitability in Q2, but sales began to increase again in Q3 when excluding the impact of exchange rates.
Konica Minolta, Inc. | 8 |
FY2019 3Q Business Segment |Professional Print Business
Quarterly Financial Results
9M
Revenue ・Operating Profit
FY18 | 1Q | 2Q | 3Q | 4Q | |||
PP | 36.5 | 38.3 | 39.2 | 41.6 | |||
Revenue | IP | 3.5 | 5.9 | 4.1 | 7.3 | ||
MS | 13.4 | 11.6 | 12.6 | 13.8 | |||
OP | 1.7 | 3.7 | 3.3 | 5.1 | |||
FY19 | 1Q | 2Q | 3Q | YoY | |||
PP | 34.2 | 35.4 | 37.5 | -4% | |||
Revenue | IP | 3.8 | 5.8 | 5.1 | +26% | ||
MS | 12.6 | 11.5 | 12.8 | +2% | |||
OP | 1.1 | 1.0 | 2.9 | -11% | |||
PP | IP | MS | |||||||||
YoY | YoY -4% | 10 | 20% | ||||||||
165.1 | 158.7 | 9 | 15% | ||||||||
-6% | 5% | ||||||||||
8 | 3% | 10% | |||||||||
37.6 | |||||||||||
36.9 | 7 | 5% | |||||||||
+8% | 13.5 | 14.7 | 6 | YoY -42%0% | |||||||
5 | -5% | ||||||||||
4 | 8.7 | -10% | |||||||||
-6% | 114.0 | 107.2 | 3 | 5.0 | -15% | ||||||
2 | -20% | ||||||||||
1 | -25% | ||||||||||
0 | -30% | ||||||||||
FY18 | FY19 | FY18 | FY19 | ||||||||
Revenue | Operating Profit | ||||||||||
[¥billions]
3Q Summary
Production Print(PP)
- Shipments increased in North America due to a reinforced sales system, gross profit ratio improveddue to MPP with IQ501, and growth recovered.
- Shipments overall fell in Europe, but increased unit sales for commercial printers.
- Shipments decreased due to prolonged sales negotiations and decrease in government projects in China, and a decline in capital liquidity in India, but an increase innon-hard led to higher sales, and improved service efficiency boosted profitability.
Industrial Printing(IP)
- Sales ofKM-1 grew significantly in direct sales. Label printers benefited from new products (AccurioLabel 230) and decorative printing equipment saw significant growth, remaining in the top share in the target market.
- Non-hardsales also continued to grow significantly.
Marketing Services(MS)
- Shifttohigher-value-addedservices continues
- In Europe, the print business declined, but the US and Asia drove sales growth, leading to higher revenue.
Konica Minolta, Inc. | 9 |
FY2019 3Q Business Segment | Office & Production Print
Office
- Sales of new Seg4 products (bizhub 450i/550i/ 650i) began in January. The aim is to improve the sales mix, primarily in North America, which is a key market for Seg4, and boost sales overall.
- Non-hardcontinued to improve as expected in Q3. The impact on gross profit will be minimized by accelerating the Free-to-Fee and shift left measures.
Year-on-year growth rate in A3 color MFP shipments
A3 Color | A3 color Seg4+ | Increase in | ||
total | non-hard | |||
+40% | |||||||
+28% | |||||||
+17% +15% | |||||||
+8% | +7% | +6% | |||||
+2% | +2% | ||||||
+0.7% | -2% | -7% | -0.7% | ||||
-0.1% | -0.4% | -1.3% | -7% | -1% | -1% | ||
-2.3% | -2.0% | ||||||
FY18 | FY18 | FY18 | FY18 | FY19 | |||
FY19 | FY19 | ||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
Production Print
- There has been progress in orders of new HPP products (AccurioPress C14000/12000) since it was released in Europe and the US in October, and shipments and installation began in February. We will break into theon-top market.
- Growth fornon-hard continued in China and India, improved in Europe after resale inventory adjustments, and decreased in North America due to resale inventory adjustments. There are no changes to forecasts, and we expect growth of about +1%.
Year-on-year growth rate in Production | |||
Color | Print color models | Increase in | |
MPP(Mid Production Print) | |||
total | |||
non-hard | |||
+32% | |||||||
+7.2% | |||||||
+6.1% | +6.1% | ||||||
+4.3% | +12% | ||||||
+7% | +4% | +7%+3% | +1.7% | ||||
+2%+1.0% | |||||||
-0.6% | |||||||
-5% | -3%-0% | -3% | -3% | ||||
-9% | |||||||
-12% | |||||||
FY18 | FY18 | FY18 | FY18 | FY19 | FY19 | FY19 | |
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
Konica Minolta, Inc. | 10 |
FY2019 3Q Business Segment | Healthcare Business
Quarterly Financial Results
9M
Revenue ・Operating Profit
FY18 | 1Q | 2Q | 3Q | 4Q | |||
Revenue | HC | 17.0 | 19.6 | 19.4 | 27.5 | ||
HIT | 1.6 | 2.1 | 1.4 | 2.3 | |||
OP | △ 0.2 | 1.0 | 0.3 | 1.2 | |||
FY19 | 1Q | 2Q | 3Q | YoY | |||
Revenue | HC | 16.9 | 24.2 | 16.6 | -15% | ||
HIT | 1.8 | 2.3 | 1.5 | +6% | |||
OP | -0.3 | 0.7 | 0.2 | -41% | |||
HC | HIT | YoY +3% | 2 | ||||||||
YoY | |||||||||||
61.1 | 63.2 | 9% | |||||||||
2 | |||||||||||
+8% | 5.1 | 5.6 | 2 | 7% | |||||||
1 | 5% | ||||||||||
1 | 2% | 1% | 3% | ||||||||
1 | |||||||||||
+3% | 56.0 | 57.6 | 1% | ||||||||
1 | YoY -50%-1% | ||||||||||
1 | 1.2 | ||||||||||
-3% | |||||||||||
0 | |||||||||||
0 | 0.6 | -5% | |||||||||
0 | -7% | ||||||||||
FY18 | FY19 | FY18 | FY19 | ||||||||
Revenue | Operating Profit |
[¥billions]
3Q Summary
Healthcare (HC)
- DR sales volume continues to rise in Asia and Europe. There were signs of a recovery in sales in the US, particularly to clinics, but in Japan, sales declined due tolast-minute demand in the previous quarter before the sales tax hike went into effect. Overall, revenue was down over the previous year.
- Sales of ultrasound diagnostic equipment increased over the previous year due to ongoing strong sales of new products for obstetrics in Japan and stronger sales in Europe and the US.
- The highvalue-added imaging of our digital X-ray Dynamic Digital Radiography Systems continues to earn high praise from universities and medical institutions in Japan. Aggressively pursue clinical research in the US and China.
Medical IT(HIT)
- PACS sales declined slightly over the previous quarter in Japan.
- Several new contracts, includinglarge-scale projects (subscription agreements), were acquired in North America.
Konica Minolta, Inc. | 11 |
FY2019 3Q Business Segment | Industrial Business
Quarterly Financial Results
9M
Revenue ・Operating Profit
FY18 | 1Q | 2Q | 3Q | 4Q | |||
MI | 9.6 | 7.2 | 7.7 | 7.6 | |||
IS | 0.5 | 0.7 | 0.5 | 1.3 | |||
Revenue | PM | 12.6 | 11.7 | 12.9 | 10.9 | ||
OC | 5.6 | 5.4 | 4.9 | 4.7 | |||
IJ | 3.3 | 3.0 | 2.8 | 3.7 | |||
OP | 6.8 | 4.7 | 5.6 | 3.9 | |||
FY19 | 1Q | 2Q | 3Q | YoY | |||
MI | 6.6 | 6.7 | 7.3 | -6% | |||
IS | 0.6 | 0.8 | 0.7 | +48% | |||
Revenue | PM | 12.6 | 11.9 | 10.8 | -16% | ||
OC | 4.8 | 5.3 | 5.2 | +5% | |||
IJ | 3.6 | 3.2 | 2.9 | +5% | |||
OP | 4.8 | 4.9 | 5.6 | +1% | |||
MI | IS | PM | OC | IJ | 19% | 19% | ||||||||||
YoY | YoY -6% | 25 | ||||||||||||||
20% | ||||||||||||||||
+7% | 88.4 | 82.9 | ||||||||||||||
9.1 | 20 | |||||||||||||||
YoY -10%15% | ||||||||||||||||
-4% | 9.7 | |||||||||||||||
15.9 | 15.3 | 15 | ||||||||||||||
-5% | 10% | |||||||||||||||
37.3 | 35.3 | 10 | ||||||||||||||
17.0 | 15.4 | |||||||||||||||
+26% | ||||||||||||||||
1.6 | 5 | 5% | ||||||||||||||
2.0 | ||||||||||||||||
-17% | 24.6 | |||||||||||||||
20.5 | ||||||||||||||||
0 | 0% | |||||||||||||||
FY18 | FY19 | FY18 | FY19 | |||||||||||||
Revenue | Operating Profit | |||||||||||||||
[¥billions]
3Q Summary
Optical Systems for Industrial Use :
:Measuring Instruments (MI), Imaging Solutions (IS)
- Measuring Instruments: Sales oflight-source color devices were affected by the US-China trade friction and major customers continued to curb investments, but when excluding the impact of exchange rates, sales were unchanged over the previous year in China and South Korea. Object color sales were sluggish due to the impact of slower economic growth.
- Eines, acquired at the end of May, accelerated the development of the automotive visual inspection business.
Materials and Components:Performance Materials (PM), Optical Components (OC), IJ Components (IJ)
- Performance Materials: Despite steady progress with new resin products, sales of existing TAC film products have decreased over the previous year due to the impact of customers' inventory adjustments.
- Optical Components: Sales increased over the previous year, driven by sales of projector lenses.
- IJ Components: Sales are solid, despite the impact of deteriorating market conditions in the Asia region
Konica Minolta, Inc. | 12 |
FY2019 3Q Business Segment |Measuring Instruments & Performance Materials
[¥ billions]
Measuring Instruments
•In the display market, despite sluggish smartphone demand and major customers' ongoing restrained investment, sales of light source color measuring instruments in China and South Korea were in line with the previous year when excluding the impact of exchange rates.
•The acquired Eines attracted several new inquiries, and made steady progress in accelerating the launch of the automotive visual inspection business.
Mobile technological | Broadening of the customer | |||||||||||
innovation, | ||||||||||||
base and the range of | ||||||||||||
manufacturers | ||||||||||||
applications | ||||||||||||
increasing | ||||||||||||
Significant | Expansion in product applications | |||||||||||
investments in OLED | yields temporary increase in revenue | |||||||||||
11.0 | Revenue decreases due | |||||||||||
9.7 | 10.910.7 | 9.6 | to curbs in investment | |||||||||
by major customers | ||||||||||||
7.8 | 7.2 | 7.7 | 7.6 | 6.7 | 7.3 | |||||||
6.5 | 6.6 | |||||||||||
5.2 5.3 | ||||||||||||
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
FY16 | FY17 | FY18 | FY19 |
Performance Materials
- Sales levels were maintained, despite the impact from a temporary decline in demand due to inventory adjustments resulting from TV panelover-supply.
- New resin products have been approved by customers in thelarge-size TV market, and there has been steady progress with applications and expanding the customer base.
Performance Materials revenue
Share declined | Sales growing due to strategy of |
due to | |
shifting to higher value-added | |
competitive | |
products | |
environment | |
11.9 | 12.6 | 12.9 | 12.6 | ||||||||||||||||||||||||||||||
11.9 | 11.4 | 11.7 | 10.9 | 11.9 | |||||||||||||||||||||||||||||
10bn | 10.8 | 11.0 | 10.8 | ||||||||||||||||||||||||||||||
line | 9.5 | 9.7 | 8.9 | ||||||||||||||||||||||||||||||
1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q
FY16 | FY17 | FY18 | FY19 |
Konica Minolta, Inc. | 13 |
FY2019 3Q Business Segment | New Business
Quarterly Financial Results
9M
Revenue ・Operating Profit
FY18 | |||||||
1Q | 2Q | 3Q | 4Q | ||||
Revenue | BHC | 5.9 | 6.5 | 6.6 | 6.9 | ||
Others | 2.0 | 2.3 | 2.2 | 2.3 | |||
OP | -5.1 | -3.5 | -5.4 | -5.3 | |||
FY19 | YoY | ||||||
1Q | 2Q | 3Q | |||||
Revenue | BHC | 7.2 | 7.4 | 7.7 | +17% | ||
Others | 2.3 | 2.5 | 2.2 | -2% | |||
OP | - | ||||||
-6.4 | -4.6 | -3.8 | |||||
BHC | Others | |||||||||||
YoY +15% | Operating Profit | |||||||||||
YoY | 29.4 | FY18 | FY19 | |||||||||
25.5 | ||||||||||||
7.0 | 0 | -10% | ||||||||||
6.5 | ||||||||||||
-20% | ||||||||||||
△5 | ||||||||||||
-14.0 | -14.8 | -30% | ||||||||||
△10 | ||||||||||||
22.4 | -40% | |||||||||||
19.0 | ||||||||||||
-50% | ||||||||||||
△15 | ||||||||||||
-55% | -50% | -60% | ||||||||||
△20 | YoY - | |||||||||||
FY18 | FY19 | -70% | ||||||||||
Revenue | △25 | -80% | ||||||||||
[¥billions]
3Q Summary
Bio-healthcare (BHC)
- In genetic testing, the number of RNA testing continues to exceed targets due to the full launch following acquisition of CPT codes.
- While the number of tests for imaging center organizations (CARE program) increased, the target was not achieved due to delays with infrastructure development.
- In the area of Support for pharmaceutical manufacturing, orders in the cancer clinical trial field are growing steadily, but central nervous system businesses continue to under perform. Progress was made in activities to acquire a major Parkinson's disease project.
Others:Workplace Hub (WPH), QOL, Status monitoring, Digital manufacturing
- The WPH sales region has increased to 23 countries and 21 cities in North America.
- Although results are far below target, Europe is leading the way in increasing customers, and in the US pipeline customers increased.
- Sales per customer were maintained, andindustry-specific solutions and starter packages continue to be expanded and implemented.
Konica Minolta, Inc. | 14 |
FY2019 9M Financial Position|Major Items from Statements of Financial Position
Total Assets | [¥billions] | Inventory/Turnover | [¥billions] | |
Mainly increase from inclusion of right-of-use assets (beginning of the term ¥110.9 billion), due to adoption of IFRS16, as well as from inventory assets.
1203.9 | 1219.0 | 1210.8 | 1304.3 |
1005.4
Mar | Mar | Mar | Dec | Dec |
2017 | 2018 | 2019 | 2018 | 2019 |
* Right-of-use assets at the beginning of the term ¥110.9 billion
Inventory/turnover continued to be maintained at high levels due to inventories in preparation for new Office and PP products and for fiscal year-end sales. Optimization is expected as the fiscal year draws to a close.
200.00 | Inventories | Turnover (months) | 5.00 | ||||||
180.00 | 173.7 | 4.50 | |||||||
158.4 | |||||||||
160.00 | 4.00 | ||||||||
139.5 | 144.7 | ||||||||
136.0 | |||||||||
140.00 | 3.95 | 3.50 | |||||||
120.00 | 3.54 | 3.00 | |||||||
100.00 | 2.87 | 2.81 | 2.89 | 2.50 | |||||
80.00 | 2.00 | ||||||||
60.00 | 1.50 | ||||||||
40.00 | 1.00 | ||||||||
20.00 | 0.50 | ||||||||
0.00 | 0.00 | ||||||||
Mar | Mar | Mar | Dec | Dec | |||||
2017 | 2018 | 2019 | 2018 | 2019 |
Inventory turnover, in months = Inventory balance at end of fiscal year / Average cost of sales for most recent three months
Konica Minolta, Inc. | 15 |
FY2019 9M Financial Position|Major Items from Statements of Financial Position
Equity & Equity Ratio | [¥billions] |
Attributable to owners of the Company | |
Due primarily to currency translation differences and dividend payment, shareholders' equity was reduced.
Due in part to right-of-use assets being moved onto the balance sheet through the application of IFRS16, actual performance remained unchanged even though the equity ratio declined.
Shareholders' equity | Equity ratio(%) | |||
580.00 | 100.00 |
Interest-Bearing Debts &
D/E Ratio | [¥billions] |
Increase from lease liabilities being moved onto the balance sheet through the application of IFRS16 (beginning of the term ¥112.0 billion).
Interest-bearing debts
450.00Debt-to-equity ratio (times)
400.00 |
560.00
540.00
520.00
500.00
480.00
460.00
555.7
524.3 524.5
52.1 | 45.6 |
43.6 | |
546.4
533.4
45.1 40.9
90.00
80.00
70.00
60.00
50.00
40.00
30.00
350.00 | 401.0 | ||
300.00 | |||
250.00 | 293.7 | 273.7 | 272.4 |
200.00 | 0.75 *1 | ||
150.00 | 185.5 | ||
0.56 | 0.49 | 0.50 | |
440.00 | 20.00 | ||||||
420.00 | 10.00 | ||||||
400.00 | 0.00 | ||||||
0.0 | |||||||
Mar | Mar | Mar | Dec | Dec | |||
2017 | 2018 | 2019 | 2018 | 2019 | |||
(For Company | |||||||
Excluding the impact of IFRS16, equity ratio was 44.8% | Rating 44.6%) |
(The one for company rating 48.9%)
Equity = Equity attributable to owners of the Company
Equity ratio = Equity attributable to owners of the Company / Total assets
100.00 | ||||
0.35 | ||||
50.00 | ||||
0.00 | ||||
Mar | Mar | Mar | Dec | Dec |
2017 | 2018 | 2019 | 2018 | 2019 |
*1Excluding the impact of IFRS16, D/E Ratio was 0.54
Konica Minolta, Inc. | 16 |
FY2019 12M Forecast | Overview
Re ve nue
Ope rating Profit
Profit attributable to owne rs of the Company
ROE
FOREX [Ye n]
USD
EUR
[¥billions] | ||||
FY2019 12M | FY2019 12M | FY2018 12M | ||
Forecast | Forecast | Results | YoY | |
(Current) | (Previous) | |||
1045.0 | 1045.0 | 1059.1 | -1% | |
20.0 | 20.0 | 62.4 | -68% | |
7.5 | 7.5 | 41.7 | -82% | |
1.4% | 1.4% | 7.7% | - 6.3p | |
105.0 | 105.0 | 110.91 |
118.0 | 118.0 | 128.41 |
Full-year
forecast
Dividend forecast
- Exchange rate: EUR and USD assumptions left unchanged at ¥118 and ¥105, respectively.
- Revenue: Prior forecasts are left unchanged, in light of Q3 progress.
- Operating profit: Prior forecasts are left unchanged, in light of Q3 progress.
- The breakdowns for the business segments have been revised in light of Q3 progress for both revenue and operating profit.
- Annual dividend: Unchanged at ¥30 per share (¥15 for both interim andperiod-end).
Konica Minolta, Inc. | 17 |
FY2019 12M Forecast | Segments
[¥billions] | |||||||||
Revenue | FY2019 12M | FY2019 12M | FY2018 12M | ||||||
Forecast (Current) | Forecast (Previous) | Results | |||||||
YoY | |||||||||
Office | 565.0 | 565.0 | 587.9 | - 4% | |||||
Professional Print | 220.0 | 215.0 | 227.7 | - 3% | |||||
Healthcare | 90.0 | 90.0 | 90.9 | - 1% | |||||
Industrial | 120.0 | 120.0 | 116.7 | + 3% | |||||
Optical systems for industrial use | 35.0 | 35.0 | 35.2 | - 0% | |||||
Materials and components | 85.0 | 85.0 | 81.5 | + 4% | |||||
New business | 50.0 | 55.0 | 34.7 | + 44% | |||||
Bio-Healthcare | 35.0 | 35.0 | 25.9 | + 35% | |||||
Others | 15.0 | 20.0 | 8.7 | + 72% | |||||
Corporate, etc. | 0.0 | 0.0 | 1.2 | - | |||||
Company overall | 1,045.0 | 1,045.0 | 1,059.1 | - 1% | |||||
Operating Profit | FY2019 12M | FY2019 12M | FY2018 12M | ||||||
Forecast (Current) | Forecast (Previous) | Results | YoY | ||||||
Office | 33.0 | 5.8% | 33.0 | 5.8% | 47.2 | 8.0% | - 30% | ||
Professional Print | 8.5 | 3.9% | 6.0 | 2.8% | 13.8 | 6.1% | - 39% | ||
Healthcare | 3.0 | 3.3% | 3.0 | 3.3% | 2.4 | 2.6% | + 25% | ||
Industrial | 22.0 | 18.3% | 22.5 | 18.8% | 20.9 | 17.9% | + 5% | ||
New business | -18.0 | -16.0 | -19.3 | - | |||||
Corporate, etc. | -28.5 | -28.5 | -2.6 | - | |||||
Company overall | 20.0 | 1.9% | 20.0 | 1.9% | 62.4 | 5.9% | - 68% | ||
Konica Minolta, Inc. | 18 |
Appendix
Konica Minolta, Inc. | 19 |
AppendixFinancial Result - Overview
[¥billions] | |||||||||
FY2018 | FY2018 | ||||||||
FY2019 | FY2018 | ||||||||
9M | 9M | YoY | 3Q | 3Q | YoY | ||||
Revenue | 747.0 | 777.6 | - 4% | 249.5 | 260.5 | - 4% | |||
Gross Profit | 354.6 | 377.7 | - 6% | 117.7 | 126.1 | - 7% | |||
Gross Profit ratio | 47.5% | 48.6% | -1.1pt | 47.2% | 48.4% | -1.3pt | |||
Operating Profit | 10.6 | 50.5 | - 79% | 5.1 | 15.9 | - 68% | |||
Operating Profit ratio | 1.4% | 6.5% | -5.1pt | 2.1% | 6.1% | -4.0pt | |||
Profit before tax | 5.6 | 48.0 | - 88% | 4.0 | 14.8 | - 73% | |||
6.2% | -5.4pt | 1.6% | 5.7% | -4.1pt | |||||
Profit before tax ratio | 0.7% | ||||||||
Profit attributable to owners of the Company | 2.2 | 33.7 | - 94% | 2.1 | 10.4 | - 80% | |||
Profit attributable to owners of the Company ratio | 0.3% | 4.3% | -4.0pt | 0.8% | 4.0% | -3.2pt | |||
EPS [Yen] | 4.39 | 68.23 | 4.18 | 21.05 | |||||
CAPEX | 34.3 | 33.5 | 10.0 | 13.9 | |||||
Depreciation and Amortization Expenses | 42.3 | 44.1 | 14.2 | 14.9 | |||||
R&D expenses | 57.1 | 59.4 | 18.4 | 19.6 | |||||
FCF | -26.6 | 16.9 | -8.0 | 5.9 | |||||
Investment and lending | 5.0 | 4.9 | 1.1 | 0.8 | |||||
FOREX [Yen] USD | 108.67 | 111.14 | - 2.47 | 108.76 | 112.90 | - 4.14 | |||
EUR | 121.05 | 129.49 | - 8.44 | 120.32 | 128.78 | - 8.46 | |||
- Depreciation and amortization expenses:IFRS16 right-of- use assets amortization expensesnot included (FY2019-3Q 9M results of ¥15.1 billion and 3M of ¥5.3 billion)
Konica Minolta, Inc. | 20 |
AppendixSG&A-Other Income/ Expenses-Finance Income/Loss
[¥billions]
FY2019 | FY2018 | YoY | FY2019 | FY2018 | YoY | ||
SG&A: | 9M | 9M | 3Q | 3Q | |||
Selling expenses - variable | +34.0 | +35.5 | - 1.6 | 11.3 | 11.0 | +0.3 | |
R&D expenses | +57.1 | +59.4 | - 2.3 | 18.4 | 19.6 | - 1.2 | |
Personnel expenses | +154.2 | +157.8 | - 3.6 | 51.6 | 53.9 | - 2.3 | |
Others | +90.7 | +90.2 | +0.5 | 30.1 | 30.1 | +0.0 | |
SG&A total | +336.0 | +342.9 | - 6.9 | 111.5 | 114.7 | - 3.2 | |
* Forex impact: | -9.7bn. (Actual: +2.8bn.) | -3.7bn. (Actual: +0.5bn.) | |||||
Other income: | |||||||
Gain on sales of property, plant and equipment | +0.1 | +20.5 | - 20.3 | 0.0 | 5.4 | - 5.3 | |
Other income | +2.7 | +3.0 | - 0.3 | 1.7 | 1.6 | +0.1 | |
Other income total | +2.9 | +23.5 | - 20.6 | 1.7 | 6.9 | - 5.2 | |
Other expenses | |||||||
Loss on sales of property, plant and equipment | +3.4 | +1.9 | +1.5 | 0.2 | 0.3 | - 0.1 | |
Special extra retirement payments | +0.5 | +0.3 | +0.2 | 0.0 | 0.3 | - 0.3 | |
Other expenses | +6.9 | +5.5 | +1.4 | 2.6 | 1.9 | +0.7 | |
Other expenses total | +10.8 | +7.7 | +3.1 | 2.8 | 2.5 | +0.3 | |
Finance income/loss:
Interest income/Dividends received/Interest expense Foreign exchange gain/loss (net)
Others
Finance income/loss, net
- 2.9 | - 1.6 | - 1.3 | -0.8 | -0.7 | - 0.2 |
- 1.7 | - 0.3 | - 1.4 | -0.2 | -0.1 | - 0.1 |
- 0.2 | - 0.2 | - 0.1 | -0.1 | -0.1 | +0.0 |
- 4.9 | - 2.1 | - 2.8 | -1.1 | - 0.9 | - 0.2 |
Konica Minolta, Inc. | 21 |
AppendixOperating Profit Analysis
[¥billions] | |||||||||||||
FY19/9M vs. FY18/9M | |||||||||||||
Office | Professional | Healthcare | Industrial | New business | corporate, etc. | Total | |||||||
Business | |||||||||||||
[Factors] | |||||||||||||
Forex impact | - 3.9 | - 1.5 | - 0.4 | - 0.0 | +0.3 | - 0.1 | - 5.7 | ||||||
Sales volume change, and other, net | - 4.9 | +1.7 | +0.6 | - 2.7 | +2.1 | +0.5 | - 2.7 | ||||||
Price change | - 4.0 | - 1.4 | - 1.3 | +0.1 | - | - | - 6.7 | ||||||
Cost up/down | +1.6 | - 0.7 | +0.4 | +0.5 | - | - | +1.9 | ||||||
SG&A change, net | +0.9 | - 1.3 | +0.7 | - 0.9 | - 2.9 | +0.6 | - 2.8 | ||||||
Other income and expense | - 1.5 | - 0.6 | - 0.6 | +1.3 | - 1.3 | - 21.3 | - 23.9 | ||||||
[Operating Profit] | |||||||||||||
Change, YoY | - 11.8 | - 3.7 | - 0.6 | - 1.7 | - 1.8 | - 20.4 | - 39.9 | ||||||
FY19/3Q vs. FY18/3Q | |||||||||||||
Office | Professional | Healthcare | Industrial | New business | corporate, etc. | Total | |||||||
Business | |||||||||||||
[Factors] | |||||||||||||
Forex impact | - 2.0 | - 0.8 | - 0.1 | - 0.0 | +0.1 | - 0.1 | - 3.0 | ||||||
Sales volume change, and other, net | - 1.3 | +1.1 | +0.2 | - 0.9 | +0.9 | +0.1 | +0.2 | ||||||
Price change | - 1.7 | - 0.6 | - 0.3 | - 0.3 | - | - | - 2.9 | ||||||
Cost up/down | +0.7 | - 0.1 | +0.2 | +0.2 | - | - | +1.0 | ||||||
SG&A change, net | - 0.8 | +0.1 | - 0.1 | +0.1 | +0.6 | - 0.4 | - 0.5 | ||||||
Other income and expense | - 1.1 | - 0.1 | - 0.1 | +1.0 | - 0.1 | - 5.3 | - 5.6 | ||||||
[Operating Profit] | |||||||||||||
Change, YoY | - 6.2 | - 0.4 | - 0.1 | +0.1 | +1.5 | - 5.6 | - 10.8 | ||||||
Konica Minolta, Inc. | 22 |
AppendixCAPEX and Depreciation and Amortization Expenses/ FCFs
Capital Expenditure andFree Cash Flows Depreciation and Amortization Expenses
[¥billions]
56.3 | 59.0 | 60.0 60.0 | ||
52.6 51.3 | 51.8 | 52.5 | ||
38.9 | 38.7 | |||
FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
Forecast | ||||
*
FY2019 FY2015 FY2016 FY2017 FY2018 Forecast
*Depreciation and amortization: | *FCF forecast for FY2019 does not include investment and lending |
IFRS16 royalty assets amortization expenses not included | *INCJ's equity stake |
( INCJ : Innovation Network Corporation of Japan ) | |
Konica Minolta, Inc. 23 |
AppendixFY2019 Earnings Forecast - Overview
[¥billions]
FY2019 12M | FY2018 12M | |||
Forcast (current) | Results | YoY | ||
Revenue | 1,045.0 | 1,059.1 | - 1% | |
Operating Profit | 20.0 | 62.4 | - 68% | |
Operating Profit ratio | 1.9% | 5.9% | -4.0pt | |
Profit before tax | 15.0 | 60.1 | - 75% | |
Profit attributable to owners of the Company | 7.5 | 41.7 | - 82% | |
Profit attributable to owners of the Company ratio | 0.7% | 3.9% | -3.2pt | |
EPS [Yen] | 15.16 | 84.33 | ||
ROE(%) | 1.4% | 7.7% | ||
CAPEX | 60.0 | 52.5 | ||
Depreciation and Amortization Expenses | 60.0 | 59.0 | ||
R&D expenses | 80.0 | 78.4 | ||
FCF | -10.0 | 15.7 | ||
Investment and loan | 20.0 | 14.0 | ||
FOREX [Yen] USD | 105.00 | 110.91 | ||
EUR | 118.00 | 128.41 | ||
*1 ROE: Profit attributable to owners of the Company divided by equity attributable to owners of the Company (average of beginning and ending balances)
*2 Depreciation and Amortization Expenses:IFRS16 royalty assets amortization expenses not included (Forecast for FY2019: ¥20 billion)
*3 FCF: Forecast does not include investment and lending
Konica Minolta, Inc. | 24 |
AppendixFOREX Impact on Revenue and Operating Profit
[FOREX:¥]
[Impact, Sensitivity:¥billions]
USD
EUR
GBP
European Currency*1
CNY
AUD
Other
Exchange contract
effect
Total impact from
FY2018
FY18 | FY19 | YoY Impact | FX Sensitivity*2 | ||||
9M | 9M | Revenue | OP | Revenue | OP | ||
111.14 | 108.67 | - 5.9 | +0.1 | +3.4 | - 0.1 | ||
129.49 | 121.05 | - 11.0 | - 5.9 | +1.8 | +0.6 | ||
146.34 | 137.79 | - 1.8 | +0.1 | +0.3 | +0.1 | ||
ー | ー | - 15.4 | - 5.8 | +2.5 | +1.0 | ||
16.61 | 15.60 | - 2.4 | - 0.9 | +3.2 | +1.3 | ||
81.71 | 74.92 | - 2.1 | - 0.6 | +0.4 | +0.1 | ||
ー | ー | - 1.4 | - 0.2 | ー | ー | ||
ー | ー | - 0.0 | +1.6 | ー | ー | ||
ー | ー | - 27.2 | - 5.7 | ー | ー | ||
*1 European currency: Currencies used in Europe including EUR/GBP
*2 FOREX Sensitivity: FOREX impact at ¥1 change (annual)
Konica Minolta, Inc. | 25 |
AppendixQuarterly Sales Trends | Office/Professional Print - Regional
- Composition of revenue by region (in yen)
FY2017 | FY2018 | FY19 | ||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||
Japan | 13% | 13% | 12% | 12% | 13% | 12% | 12% | 12% | 12% | 13% | 13% | |||
North America | 34% | 34% | 33% | 31% | 33% | 33% | 33% | 33% | 34% | 33% | 33% | |||
EU | 36% | 36% | 38% | 40% | 36% | 36% | 36% | 36% | 36% | 34% | 37% | |||
Others | 17% | 17% | 17% | 17% | 18% | 19% | 18% | 18% | 17% | 19% | 17% | |||
- Change in revenue by region (w/o FOREX)
FY2017 | FY2018 | FY19 | ||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||||
Japan | +2% | +0% | -1% | -1% | +4% | +1% | +2% | +3% | -8% | +4% | +1% | |||
North America | +2% | +3% | -3% | +8% | +5% | +4% | +5% | +4% | -2% | -2% | -3% | |||
EU | -1% | +2% | +1% | +4% | +4% | +1% | +1% | +0% | -2% | -1% | +6% | |||
Others | -10% | -8% | -5% | -2% | +16% | +8% | +10% | +10% | -18% | +4% | +1% |
- Percentage of color in sales of hardware
FY2017 | FY2018 | FY19 | |||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |||||
Office | 69% | 72% | 72% | 72% | 73% | 73% | 73% | 74% | 72% | 73% | 72% | ||||
Professional Print | 78% | 76% | 80% | 78% | 81% | 80% | 80% | 81% | 78% | 82% | 76% | ||||
Konica Minolta, Inc. | 26 |
AppendixQuarterly Unit Sales Trends | Office/Professional Print - Products
- A3 Color MFP- Units*
YoY +2%
111 | 107 | 116 |
100 | ||
110 | 109 | |
93 |
0
1Q 2Q 3Q 4Q FY18 FY19
-
Color Production Print - Units*
YoY +2%
148
120
100109
- A3 monochrome MFP- Units*
YoY -6%113 | 113 |
100 | 102 |
108 | |
95 | 96 |
0
1Q 2Q 3Q 4Q FY18 FY19
- Monochrome Production Print - Units*
YoY -11%
134
113 112
100
117
107100
- A3 MFP- Units*
YoY -1%
112 | 115 |
100 | 105 |
109 | 104 |
94 | |
0 | |||||
1Q | 2Q | 3Q | 4Q | ||
FY18 | FY19 | ||||
◼Production Print - Units*
YoY -3% | 136 | |
125 | ||
100 | 110 | |
116 | 107 | |
102 | ||
100
116 111
0
0
0
1Q | 2Q | 3Q | 4Q |
FY18 FY19
*Base Index: "FY2018-1Q = 100
1Q | 2Q | 3Q | 4Q |
FY18 FY19
1Q 2Q 3Q 4Q FY18 FY19
Konica Minolta, Inc. | 27 |
AppendixSales Results for Non-Hard | Office/Professional Print | |||||||
Revenue & ratio of non-hard | YoY revenue increase in non-hard | (w/o FOREX) | |||||
Office | [¥billions] | 【Total】 | 【Regional | YoY】 |
70.0
60.0
50.0
- 52%50%52% 49%53%50%52%
20.0
10.066.1 63.9 65.7 64.6 62.4 60.5 62.3
0.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q FY18 FY18 FY18 FY18 FY19 FY19 FY19
0Production print
80% | +18.2% | |||
+16.2% | IN, +3.0% | |||
+14.4% | ||||
60% | +13.5% | |||
+10.6% | +9.3% | +9.7% | +9.2% | |
40% | +5.3% | CN, +7.3% | |||||||
+0.7% | +1.4% | +3.1% | |||||||
US, -1.2% | |||||||||
-0.1% | -0.4% | -0.7% | |||||||
+1.4% | +1.5% | -1.3% | +1.1% | ||||||
20% | -1.3% | -2.0% | -0.0% | -0.0% | |||||
-0.5%-1.1% | -0.6% | JP, -2.4% | |||||||
-2.3% | -2.9%-2.7% | -2.5% | -2.2% | -1.5%-1.9% | |||||
0% | -3.5% | -2.8% | -2.1% | EP, -3.5% | |||||
-7.7% | |||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
FY18 FY18 FY18 FY18 FY19 FY19 FY19 | |||||||||||||
FY18 | FY18 | FY18 | FY18 | FY19 | FY19 | FY19 | |||||||
80%
60.0
50.0 | 59% 56%57% | |||
40.0 | 59% | 54% | 57% | |
50% | ||||
30.0 |
20.0
10.0
21.4 20.6 22.4 20.8 20.3 19.9 21.5
0.0
1Q 2Q 3Q 4Q 1Q 2Q 3Q FY18 FY18 FY18 FY18 FY19 FY19 FY19
70% | +7.2% | |||||||||||||||||||||
60% | +6.1%+6.1% | |||||||||||||||||||||
50% | ||||||||||||||||||||||
+4.3% | ||||||||||||||||||||||
40% | ||||||||||||||||||||||
30% | +1.7% | +1.0% | ||||||||||||||||||||
20% | -0.6% | |||||||||||||||||||||
10% | ||||||||||||||||||||||
0% | ||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q |
FY18 FY18 FY18 FY18 FY19 FY19 FY19
+35.0% | |||||||
+31.3%+30.1% | |||||||
+21.0% | +21.3% | ||||||
+16.7% | CN, | ||||||
+27.5% | |||||||
+23.1%+22.4%+23.2% | |||||||
+19.0% +18.5% | |||||||
+20.3% | +4.7%+5.9% | ||||||
+4.3% | +5.0% | IN, +20.2% | |||||
+3.8%+4.0% | +0.4% | -1.9% | -1.2% | EP, +1.4% | |||
+3.0% | |||||||
+3.2% +3.4% +2.3% | -2.3% | JP, -0.9% | |||||
-1.0% | -2.7% | -1.6% | |||||
-3.7% | US, -3.7% | ||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |
FY18 | FY18 | FY18 | FY18 | FY19 | FY19 | FY19 |
Konica Minolta, Inc. | 28 |
AppendixQuarterly Financial Results : Segments
[¥billions]
FY17 | FY18 | FY19 | ||||||||||||||
【Revenue】 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |||||
Office Business | 133.0 | 146.5 | 148.2 | 156.2 | 143.5 | 147.2 | 145.7 | 151.4 | 134.6 | 138.6 | 139.0 | |||||
Professional Print Business | 49.0 | 52.2 | 53.9 | 59.2 | 53.4 | 55.9 | 55.8 | 62.7 | 50.6 | 52.7 | 55.4 | |||||
Healthcare Business | 19.5 | 23.3 | 24.0 | 29.6 | 18.6 | 21.6 | 20.9 | 29.8 | 18.6 | 26.4 | 18.1 | |||||
Industrial Business | 28.7 | 31.3 | 30.1 | 28.1 | 31.6 | 28.0 | 28.8 | 28.3 | 28.1 | 27.9 | 26.9 | |||||
Optical Systems for Industrial Use | 11.7 | 11.5 | 11.1 | 8.8 | 10.1 | 7.9 | 8.2 | 9.0 | 7.2 | 7.4 | 8.0 | |||||
Material ・Components | 17.0 | 19.8 | 19.0 | 19.4 | 21.5 | 20.1 | 20.6 | 19.3 | 21.0 | 20.5 | 18.9 | |||||
New business | 1.9 | 2.3 | 5.7 | 7.4 | 7.8 | 8.8 | 8.8 | 9.2 | 9.6 | 9.9 | 9.9 | |||||
Bio-healthcare | - | - | 3.6 | 5.4 | 5.9 | 6.5 | 6.6 | 6.9 | 7.2 | 7.4 | 7.7 | |||||
Others | 1.9 | 2.3 | 2.1 | 2.0 | 2.0 | 2.3 | 2.2 | 2.3 | 2.3 | 2.5 | 2.2 | |||||
Corporate etc. | 0.1 | 0.2 | 0.3 | 0.4 | 0.3 | 0.3 | 0.4 | 0.2 | 0.2 | 0.2 | 0.2 | |||||
Company overall | 232.4 | 255.8 | 262.2 | 281.0 | 255.2 | 261.9 | 260.5 | 281.5 | 241.7 | 255.7 | 249.5 | |||||
【Operating Profit】 | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | |||||
Office Business | 5.3 | 14.8 | 9.8 | 15.0 | 9.3 | 13.4 | 11.6 | 12.8 | 7.7 | 9.4 | 5.4 | |||||
Professional Print Business | 1.6 | 0.9 | 2.6 | 4.2 | 1.7 | 3.7 | 3.3 | 5.1 | 1.1 | 1.0 | 2.9 | |||||
Healthcare Business | -0.5 | 3.4 | 1.0 | 1.7 | -0.2 | 1.0 | 0.3 | 1.2 | -0.3 | 0.7 | 0.2 | |||||
Industrial Business | 6.1 | 5.9 | 5.6 | 5.9 | 6.8 | 4.7 | 5.6 | 3.9 | 4.8 | 4.9 | 5.6 | |||||
New Business | -2.7 | -3.2 | -4.4 | -5.6 | -5.1 | -3.5 | -5.4 | -5.3 | -6.4 | -4.6 | -3.8 | |||||
Corporate etc. | -1.1 | -10.0 | -5.9 | 3.6 | 3.1 | -0.2 | 0.4 | -5.8 | -6.3 | -6.6 | -5.2 | |||||
Company overall | 8.7 | 11.8 | 8.6 | 24.8 | 15.4 | 19.2 | 15.9 | 11.9 | 0.6 | 4.9 | 5.1 | |||||
Konica Minolta, Inc. | 29 |
Business Segments for FY 2019
Core businesses
Growth businesses
New businesses
Businesses that strengthen profitability by cost structure reform and that support profit during the Medium-Term Plan
Businesses that aim for higher profit around the core by using resources that we made upfront investments in under the previous Medium-Term Plan
Businesses that aim to achieve high profits by establishing new business models for the IoT era
Business segment
*Certain BUs, such as Healthcare and Measuring Instruments, may be incubating growth businesses internally, as is the case with the main businesses.
Business Unit | Core businesses | Growth businesses | New businesses | |||
Office | Office | WPH | ||||
ITS | ||||||
Professional | Production Print (PP) | Industrial Printing (IP) | Textiles | |||
Marketing services | ||||||
Healthcare | Healthcare Business | Ultrasound | Bio-healthcare | |||
Medical IT | ||||||
Optical Systems for | Measuring Instruments | Visual Inspection | QOL | |||
Industrial Use | Imaging Solutions | Status MonitoringDigital Manufacturing | ||||
Materials and | Performance Materials | New Films | ||||
Components | IJ Components Optical Components | Materials | OLED | |||
Konica Minolta, Inc. | 30 |
Glossary
- CRE Strategy (Corporate Real Estate Strategy): Corporate
A corporate strategy for a corporation to utilize its assets and real estate more efficiently in ways that benefit its business.
- S&LB (Sale and Leaseback): Corporate
A method for using assets more efficiently as part of a corporate strategy, in which a corporation sells one of its assets and then continues to use the asset by leasing it back.
- MFP (Multi Functional Peripheral) Speed Segment: Office Business
Seg. 1 to 20ppm, Seg.2 21-30ppm, Seg.3 31-40ppm, Seg.4 41-69ppm, Seg.5 70~ppm (A4 vertical, minute speed)
- Color production print Machine Segments: Professional Print Business
ELPP(Entry Light Production Print, | Monthly printing volume: 1-0.3 million sheets |
for low-priced products mainly for large companies' centralized printing rooms)
LPP(Light Production Print, Monthly printing volume: 0.1-0.3 million sheets for commercial printers)
MPP(Mid Production Print , Monthly printing volume: 30-1 million sheets for commercial printing products)
HPP(Heavy Production Print , Monthly printing volume:1 million sheets or more for commercial printing products)
- IQ-501(Intelligent Quality Optimizer): Professional Print Business
An optional unit that implements constant monitoring/control during printing to automate color management and front/back register control. This drastically cuts down on control times and improve production time.
・PACS: Picture Archiving and Communication System: Healthcare Business
An image storage and communication system for medical image processing. A general term for systems for managing a large volume of images, generated from such as CT, MRI, X-ray images from DR and CR, and so on.
・RNA (ribonucleic acid)Testing: Bio-healthcare Business
Testing to identify changes in mRNA structure in the primary transcript of DNA(deoxyribonucleic acid). Analysis of transcript mRNA can provide more detailed test results on DNA mutations that used to be considered of undetermined clinical significance in conventional DNA testing.
- Workplace Hub (WPH): New Business
Edge IoT platform provided by Konica Minolta. In addition to multi functional peripheral, a server is integrated to create a solution that drives efficiencies by reducing the overall costs of IT infrastructure management, providing real-timedata-driven visibility of IT usage patterns that help to improve business processes. This will link people and data, and empower them to make smarter decisions and solve problems in the office.
Konica Minolta, Inc. | 31 |
Attachments
- Original document
- Permalink
Disclaimer
Konica Minolta Inc. published this content on 03 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2020 10:10:08 UTC