Konica Minolta (4902) investor relations material

Executive summary

• Revenue for the nine months ended December 31, 2025, decreased 6.1% year-over-year to ¥781.1 billion, mainly due to business selection, concentration, and lower office and healthcare sales, partially offset by growth in sensing and optical components.

• Operating profit improved significantly to ¥33.3 billion from a loss of ¥18.5 billion in the prior year, driven by the absence of impairment losses, structural reform costs, and gains on sales of subsidiaries.

• Profit attributable to owners rose to ¥21.4 billion from a loss of ¥13.4 billion, aided by improved finance income, tax rates, profit from discontinued operations, and a valuation gain on Tempus AI shares.

• Free cash flow increased to ¥24.9 billion, reflecting higher profit before tax and asset sales.

Financial highlights

• Gross profit margin rose 0.6pt to 44.4% year-over-year, despite a 4.8% decline in gross profit.

• SG&A expenses fell 7% due to global structural reforms and business selection.

• Business contribution profit increased 20.5% to ¥34.7 billion, with a margin improvement of 0.9 points.

• Operating profit margin improved to 4.3% from negative in the prior year.

• EPS turned positive at ¥43.38, up from a loss of ¥27.09.

Outlook and guidance

• FY2025 full-year revenue forecast revised upward to ¥1,075.0 billion, reflecting 9M results and FOREX trends.

• Operating profit forecast maintained at ¥48.0 billion; business contribution profit at ¥54.0 billion.

• Dividend forecast unchanged at ¥10 per share; ROE projected at 5.2%.

• Segment forecasts: Digital Workplace revenue raised to ¥598.0 billion, Professional Print to ¥250.0 billion, Industry to ¥129.0 billion, Imaging Solutions to ¥98.0 billion.

• Assumptions for exchange rates updated to ¥150/USD and ¥172/EUR.