Konica Minolta (4902) investor relations material

Executive summary

• Revenue decreased 3.6% year-over-year to ¥1,087.7B, mainly due to business selection, concentration, and lower sales in Digital Workplace and Imaging Solutions.

• Operating profit rebounded to ¥49.9B from a loss of ¥64.0B, driven by the absence of one-time expenses, structural reform costs, and impairment losses.

• Profit attributable to owners rose to ¥30.3B from a loss of ¥47.5B, aided by improved finance income, tax rates, and the absence of prior-year valuation losses.

• Free cash flow declined to ¥52.2B from ¥75.7B, reflecting lower cash inflows from business transfers and higher inflows from partial sale of Tempus AI shares.

• Precision Medicine Business was divested and classified as discontinued from Q4 FY2025.

Financial highlights

• Gross profit margin improved to 44.0% from 42.5% year-over-year.

• Business contribution profit surged 67% to ¥53.2B, with the margin rising to 4.9%.

• Capital expenditures increased to ¥60.5B, including ¥18.9B for Tokyo Site Hino real estate trust beneficiary interests.

• R&D expenses decreased to ¥54.8B.

• Total assets increased to ¥1,234.9B, equity ratio rose to 43.4%, and equity per share reached ¥1,085.64.

Outlook and guidance

• FY2026/2027 revenue forecast at ¥1,105.0B (+1.6%), with operating profit of ¥50.0B and profit attributable to owners at ¥28.5B.

• Dividend forecast raised to ¥18/share for FY26/27, up from ¥12/share in FY25.

• Macro assumptions include USD/JPY at 150, EUR/JPY at 180, U.S. tariffs, and rising material and energy costs.

• No inclusion of potential U.S. tariff refunds (~¥7B or $47.6M under review) in FY26/27 guidance.

• Management expects continued uncertainty from energy costs, raw material prices, U.S. tariffs, and FX volatility.