Notice on Formulation of Medium-Term Management Plan “Corporate Plan 2026-2028”

Overview of the Medium-Term Management Plan

Konica Minolta, Inc. has formulated the medium-term management plan "Corporate Plan 2026-2028" covering fiscal years 2026 to 2028. The previous medium-term plan (2023-2025) focused on business selection and concentration, strengthening the earnings base, and preparing for future growth, positioning the final year as "Turn Around 2025." The new medium-term plan emphasizes management decisions centered on ROIC (Return on Invested Capital), aiming to improve profitability and capital efficiency, and ultimately seeks sustainable improvement of ROE (Return on Equity). The key initiatives are concentrated on four areas: improving gross profit margin, reducing selling, general and administrative expenses ratio, enhancing financial balance, and increasing asset efficiency.

Key Initiatives and Challenges

To further strengthen the earnings base, Konica Minolta will advance divestitures of non-core businesses and aim for profitability in turnaround businesses. For establishing a growth foundation, growth-driving areas such as perovskite solar cell barrier films, intelligent recycled materials, and optical components for semiconductor inspection equipment will be cultivated. The company will strengthen ROIC management and business portfolio management to improve capital efficiency and achieve sustainable growth. The FY25 forecast includes net sales of 1,075 billion yen, business contribution profit of 54 billion yen, and ROE of 5.2%, while the FY28 targets are set at net sales of 1,075 billion yen, ROE of 8%, and ROIC of 6%.