1 Konica Minolta Group 1Q / March 2007 Consolidated Financial Results Three months: Apr. – Jun. 2006 August 3, 2006 Yasuo Matsumoto Senior Executive Officer Konica Minolta Holdings, Inc. Cautionary Statement: The forecasts mentioned in this material are the results of estimations based on currently available information, and accordingly, contain risks and uncertainties. The actual results of business performance may sometimes differ from those forecasts due to various factors. Remarks: Yen amounts are rounded to the nearest 100 million.
Yasuo MatsumotoSenior Executive OfficerKonica Minolta Holdings, Inc.
Cautionary Statement:The forecasts mentioned in this material are the results of estimations based on currently available information, and accordingly, contain risks and uncertainties. The actual results of business performance may sometimes differ from those forecasts due to various factors.
Remarks: Yen amounts are rounded to the nearest 100 million.
Business Technologies:MFP sales (color and B/W) Strong
Optics:Sales Up, especially TAC film and
microcamera units for mobile phonesMedical:
Sales Strong due to favorable film salesPhoto Imaging:
Sales Down due to the impact of exiting the business.
Net sales
Operating income
244.0244.0 241.3241.3
Business Technologies
OpticsPhoto
Imaging
Medical & Graphic
Other+1.7
+5.7+7.4
-31.1
1Q/Mar06 1Q/Mar07
18.218.2
22.222.2
Business Technologies
+1.8
Optics+1.6
Photo Imaging
+0.4
Medical & Graphic
+0.8
Other-0.6
[billions of yen]
[billions of yen]
1Q/Mar06 1Q/Mar07
+13.6
Business Technologies:Operating profit Up due to
favorable MFP salesOptics:
Operating profit Up due to increased TAC film salesMedical:
Operating profit Up due to increased film sales resulting from a steady increase in equipment installations since last fiscal year.
5
Operating income analysis Y-O-Y
+2.3
-5.3
+1.7+4.0
+1.4
+4.1
Excluding forex
Foreximpact
Price change
Sales volume change and other
Cost cut SG&A change
1Q/Mar06 vs.
1Q/Mar07
Operating income change
[billions of yen]
6
0
20
40
60
80
100
120
140
160
1Q/Mar06 1Q/Mar07
Business Technologies
MFPColor: New release of 2 models (bizhub C352 and C300). Unit sales increased worldwide, mainly in Europe.B/W: Strong sales in mid- to high-speed segments and in US and Asian regions thanks to the renewed product line.Production printing: Solid sales, especially in US.
LBPColor: Shift of marketing focus from 4-cycle engine models to tandem engine models. Particular focus on high-speed and high-print volume segments.
Unit sale Y-O-Y: +21%---------------------------------------
Color: +75%
B/W: +10%
(of which, production print:+11%)
Unit sale Y-O-Y: -40%---------------------------------------
Color: -14%
(of which, tandem engine-models: +24%)
B/W: -47%
Net sales by segmentY-O-Y (%)
[billions of yen]
137.2 150.8 +10%
LBP
MFP
-15%
+14%
7
0
5
10
15
20
25
30
35
1Q/Mar06 1Q/Mar07
Optics
LCD materialsTAC film sales: Strong both standard and high-function products due to the full-fledged operation of the 3rd
production line.
Memory devicesOptical pickup lenses: A marginal increase in DVD-use object pickup lenses sales. Other pickup lenses sales declined.Glass substrates for HD: Strong sales thanks to increasing demand in 2.5 inch items.
Image input/output componentsFor mobile phones: Full swing shipments in microcamera units. Lens units : Strong sales in VCR-use lens units. DSC-use lens units sales significantly declined.
Unit sale Y-O-Y: +58%---------------------------------------Standard: +63%
High-function: +56%
Unit sale Y-O-Y: -6%---------------------------------------DVD objective: +6%
CD objective: -24%
Other: -17%
Unit sale Y-O-Y---------------------------------------Glass substrates for HD:
+41%
Unit sale Y-O-Y---------------------------------------For Mobile phonesLens units: +44%Microamera units:
+404%
Lens units for DSC/VCR:-18%
Net sales by segmentY-O-Y (%)
[billions of yen]
24.7 32.1 +30%
Display materials
+34%
Memory devices
Image input/output components
+8%
+55%
8
0
5
10
15
20
25
30
35
40
1Q/Mar06 1Q/Mar07
Medical & Graphic Imaging
MedicalSystems: Strong sales in overseas. Domestic demand weakened resulting from the review of the national health insurance price .Film: Strong sales worldwide.
GraphicDigital color proofing hardware: Maintained the same level Y-O-Y. Digital production printing systems: Sales decreased significantly.Film: Strong sales in overseas.
Unit sale Y-O-Y---------------------------------------Computed radiography (CR):
+2%Imagers: -3%
Unit sale Y-O-Y: +25%---------------------------------------Dry film: +18%Wet film: +32%
Unit sale Y-O-Y---------------------------------------Digital color proofing hardware: 0%Digital production printing systems: -38%
Unit sale Y-O-Y---------------------------------------Graphic-arts film:+4%
Net sales by segmentY-O-Y (%)
[billions of yen]
30.7 36.4 +19%
Medical +21%
Graphic
+10%
9
TOPICS-1 Transfer of Odawara Factory to Dai Nippon Printing Co., Ltd. (DNP)
(Odawara: A manufacturing base for silver halide color photo paper)
Overview
Properties to be transferred: Land , buildings, and color photo paper manufacturing business
Site area: 41,120 m2Main facilities: Color photo paper plant, slitter, and packing machineLocation: Odawara City, Kanagawa Prefecture, Japan
Objectives
Effective utilization of Photo Imaging’s assetsJob securityDNP to meet the needs of customers for color photo paper
Scheme
JUL 2006: Agreement on transfer contractOCT 2006: A newly established company to take over the operation as a
DNP’s wholly-owned company.
10
TOPICS-2 White organic EL light-emitting device -- World’s highest emission efficiency--
CharacteristicsWith an initial luminance of 1,000 candela /m2
Note1: The current 1H / Mar07 Plan has been revised by reflecting the 1Q / Mar07 results.Note 2: Full-year forecast Mar07 will be reviewed according to the 2Q / Mar07 performance.
Note1: The current 1H / Mar07 Plan has been revised by reflecting the 1Q / Mar07 results.Note 2: Full-year forecast Mar07 will be reviewed according to the 2Q / Mar07 performance.
13
[Reference] SG&A
Forex impact: +2.5 billion yen (Actual -5.6 billion yen)
Interest and dividend income 0.6 0.5 0.1Other 1.6 1.8 -0.2
Non-operating income 2.2 2.3 -0.1
Interest expenses 1.3 1.4 -0.1Foreign exchange loss 0.4 0.0 0.4Loss on revaluation/disposal ofinventories 0.6 0.5 0.1
Other 0.5 0.8 -0.3Non-operating expenses 3.0 2.7 0.3
15
84.3 80.822.7 21.580.8 79.4
216.1 224.0
63.6 67.0
149.4 146.8
246.3 230.0
80.9 66.0
0
200
400
600
800
1,000
Mar 2006 Jun 2006
Cash and depositsNotes and A/RInventoriesOther current assetsTangible fixed assetsConsolidation goodwillOther intangible fixed assetsInvestments and others
