KONICA MINOLTA, INC.

Business Details

Comprises four units: Sensing Unit (Measuring Instruments), Functional Materials Unit (functional films for displays), IJ Components Unit (Industrial Inkjet Heads), and Optical Components Unit (Industrial & Professional Lenses). Provides high-performance materials and measurement solutions to diverse industrial markets including displays, semiconductors, automotive, and printing. In FY2026 (ending March 2026), this segment is positioned as the core business driving overall company growth, and achieved a substantial improvement in profitability.

Recent Overview

Revenue up 6.3%; operating profit swung to a large profit of ¥22,268 million from a prior-period loss

Full-year revenue for FY2026 (ending March 2026) was ¥126,779 million (up 6.3% year on year), and operating profit improved substantially to ¥22,268 million (versus a loss of ¥12,749 million in the prior period). The Sensing Unit posted increased revenue due to a recovery in display capital investment by major customers and the effect of new products. The Functional Materials Unit expanded sales mainly for large IPS-type LCD displays. The Optical Components Unit performed well in lenses for semiconductor inspection equipment and projectors. On the other hand, the IJ Components Unit saw decreased revenue due to lower sales in Europe and China. The absence of the impairment loss (¥28,283 million) recorded in the prior period also contributed significantly to the improvement in operating profit.

Key Products

Growth Drivers

• Sensing Unit: Continued demand for light source color measuring instruments driven by a recovery in display capital investment by major customers (demand for smartphone display measuring instruments is expected to continue as customers advance new display technology development)
• Optical Components Unit: Expected growth in demand in the semiconductor inspection equipment market, production capacity expansion, and plans to begin mass production in the new DUV domain in FY2027
• Functional Materials Unit: Steady demand centered on films for large displays, expansion of production capacity through production stabilization, and promotion of expansion of the retardation film SANUQI and the surface protection film SAZMA
• Sensing Unit: Strengthening of sales capability for automotive appearance inspection and inspection equipment utilizing hyperspectral imaging technology (in cooperation with global overseas sales subsidiaries)
• Positioned as the core business driving overall company growth under the new medium-term management plan "Corporate Plan 2026-2028," with management strengthening centered on ROIC

Risks

• Sensing Unit: High dependence on customers' display capital investment cycles, with risk of sharp revenue declines during periods of investment restraint (materialized in FY2025 (ended March 2025))
• Sensing Unit: Goodwill impairment already recorded at Radiant Vision Systems, LLC and Instrument Systems GmbH (¥28,283 million in the prior period), with risk of additional impairment remaining
• Functional Materials Unit: Risk of declining sales of mainstay products due to the market shift from TAC film to COP film, and opportunity loss due to production capacity constraints (production capacity constraints arose in the third quarter)
• IJ Components Unit: Risk of slowing demand in the sign graphics market due to economic stagnation in Europe and China (revenue decline continued in FY2026 (ending March 2026) as well)
• Optical Components Unit: Capital investment cycle risk in the semiconductor market and investment burden associated with production capacity expansion
• Risk of rising product costs due to changes in U.S. tariff policy (tariff impacts materialized company-wide in FY2026 (ending March 2026), with the effects of prolonged negotiations expected to continue mainly in the Industrial Print Systems unit)