KONICA MINOLTA, INC.
4902・Prime Market・Electric Appliances
Business
Konica Minolta forms a global group comprising 133 consolidated subsidiaries, centered on four businesses: the Digital Workplace Business (multifunction printers and IT services), the Professional Print Business (commercial and industrial printing), the Industry Business (measurement, functional materials, and optical components), and the Imaging Solutions Business (medical imaging and visual equipment). The company earns the majority of its ¥1,087,738 million in net sales overseas, and provides products and services to the office, industrial, medical, and printing markets based on four core technologies: materials, optics, imaging, and micro-fabrication. Its major customers span a wide range, including office departments of large and mid-sized enterprises, printing companies, semiconductor and display manufacturers, and medical institutions.
Business Model
The company builds its customer base through hardware sales such as multifunction printers and printing presses, while securing recurring revenue through non-hardware sales including consumables, maintenance services, and IT solutions. In the Industry Business, it supplies high-value-added products—measuring instruments, functional materials, and optical components—to industrial customers, while the Imaging Solutions Business combines medical equipment sales with medical IT services. The company uses business contribution profit (revenue less cost of sales and SG&A expenses) as its key KPI, and manages its business portfolio centered on ROIC.
Company Strengths
By advancing and integrating the four core technologies of materials, optics, imaging, and precision processing accumulated over more than 150 years since founding, and combining them with AI technology, the company develops differentiated products. It holds a unique product portfolio that is difficult for competitors to replicate in a short period, including lenses for semiconductor inspection equipment, functional films for displays (SANUQI, SAZMA), and the Dynamic Digital Radiography System.
The company operates multiple direct sales subsidiaries in the U.S., Europe, Asia, and elsewhere (such as Konica Minolta Business Solutions U.S.A.), maintaining a structure that continuously secures consumables and service revenue linked to the number of units installed. Business content management services in Europe and the AI SaaS business in Japan have performed well, resulting in revenue growth when excluding the impact of business transfers, confirming the depth of the non-hardware revenue base.
Under the medium-term management plan (2023-2025), the company completed business selection and concentration as well as global structural reforms within two years. In FY2026 (ending March 2026), it achieved business contribution profit of ¥53.1 billion (up 66.6% year on year) and operating profit of ¥49,869 million (compared to a loss of ¥64,014 million in the previous period), realizing ROE of 6.1% (exceeding the medium-term plan target of 5% or more). The disposal of unprofitable businesses such as MOBOTIX AG and Ambry Genetics Corporation has also been completed.
ENVALITH's Perspective
Performance Trend
Net sales continued to decline to ¥1,087,738 million (down 3.6% year on year), but this was mainly due to the narrowing of business scope through selection and concentration of businesses; the Industry Business saw increased sales of ¥126,779 million (up 6.3% year on year). Operating profit improved significantly to ¥49,869 million from a loss of ¥64,014 million in the previous fiscal year, mainly due to the disappearance of extraordinary losses such as impairment losses and business structure improvement expenses recorded in the previous fiscal year. Profit attributable to owners of the parent was ¥30,268 million (versus a loss of ¥47,484 million in the previous fiscal year). ROE recovered to 6.1% (from -9.5% in the previous fiscal year). As an external factor, the stronger euro (from ¥163.75 in the previous fiscal year to ¥174.79 in the current fiscal year) contributed to the yen conversion of European sales, while the impact of US tariffs was a downward factor of ¥5.3 billion. For FY2027 (ending March 2027), net sales are forecast at ¥1,105,000 million (up 1.6% year on year) and operating profit at ¥50,000 million (up 0.3% year on year), indicating modest growth.
Growth Strategy
Thorough ROIC-based management and the pursuit of ROE of 8% or higher under the new medium-term plan "Corporate Plan 2026-2028"
Formulated a new medium-term plan with FY2026 (ending March 2026) as its first year. Management targets have been set based on FY2025 (ending March 2025) as the starting point: revenue CAGR of approximately 3%, business contribution profit margin of 6.5%, net income margin of 3.8%, and company-wide ROIC of 6%. The key priority is to achieve ROE of 8% or higher by FY2028 (ending March 2028), with the aim of achieving a P/B ratio of 1x at an early stage.
Integrating the display subsidiary function into the Sensing Unit (Measuring Instruments), expanding production capacity in the Optical Components Unit (Industrial & Professional Lenses) for semiconductor inspection equipment (with a mass-production plan for the DUV domain in FY2027, ending March 2027), and driving expansion of the retardation film SANUQI and the surface protection film SAZMAI within the Functional Materials Unit (Functional Films). Operating profit for FY2026 (ending March 2026) reached ¥22,268 million, having already turned profitable.
Accelerating the integration of the Office Unit and the DW-DX Unit (IT Services & Solutions) to provide high-value-added, workflow-type solutions combining AI and security. Promoting AI-driven manufacturing innovation and fixed-cost optimization. Business contribution profit for FY2026 (ending March 2026) reached ¥38,700 million (up 8.3% year on year), reflecting continued improvement.
Completed the divestitures of the Precision Medicine Business (Discontinued Operations) (Ambry Genetics Corporation and Invicro, LLC), MOBOTIX AG, and Konica Minolta Marketing Services EMEA Limited. The large-scale extraordinary losses recorded in the previous fiscal year have dropped out, fundamentally improving the profit and loss structure in FY2026 (ending March 2026). Decisions continue to be made on a product-by-product basis for the Imaging IoT Solutions Unit.
Resumed annual dividend payments at ¥12 per share in FY2026 (ending March 2026), up from ¥0 in the previous fiscal year. Plans to increase the dividend to ¥18 per share in FY2027 (ending March 2027) (payout ratio of 31.2%). The dividend policy takes into account continued reduction of interest-bearing debt and working capital, as well as cash inflows from partial asset sales. The ratio of equity attributable to owners of the parent improved to 43.4% (from 38.0% in the previous fiscal year).
Last updated: July 19, 2026