KONICA MINOLTA Konica Minolta Group 3rd Quarter/March 2013 Consolidated Financial Results  

My Message for Today

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The first topic that I would like to bring up is the Group-wide results for the first three quarters of the consolidated fiscal year under review from April to December. Performance was driven by the Industrial Business and growth in both sales and profits.
While the high yen is going through an adjustment trend now, exchange rates had a negative impact of 7.4 billion yen on sales and 5.9 billion yen on operating income during this nine-month period. The Group nonetheless managed to increase both sales and profits.
Meanwhile, in terms of the most recent third quarter, while profits for the Industrial Business and the Healthcare Business continued to grow, unfortunately profits were down for the Business Technologies Business. As result, on a Group-wide basis sales increased while profits declined. However, we expect recovery to be possible because the fourth quarter is the period of the year that is typified by the largest sales volumes for the Business Technologies Business. We also recognize exchange rates as a factor that will positively affect results, as the yen has been moving within a lower range than in the same period of the previous year.

Business results have been summarized into the following three points.

First, in the office field of the Business Technologies Business, while sales of monochrome MFPs decreased in overseas markets, sales of color MFPs were strong. This is believed to be a result of the release of new products from the middle of last year and improved IT service capabilities supported by M&As overseas aimed at strengthening business foundations. Meanwhile, in the production print field, in the North American market there was strong growth for color units and positive signs of recovery. However, overall the market environment was a difficult one characterized by a slowdown in the economy, and as a result sales were flat year on year.

Next, in the Industrial Business, there was a clear distinction between strongly performing and weak products during the third quarter. In glass substrates for HDDs there was a drastic decrease in sales volumes as a result of prolonged adjustments caused by deterioration in market conditions. Demand also continued to be sluggish for pickup lenses.
On the other hand, sales were up for TAC films for LCD polarizers ("TAC films for LCD polarizers" hereinafter referred to as "TAC films"), replacement lenses for DSLR cameras, and measuring instruments for which talks went smoothly with major clients, supporting the momentum that resulted in increased net sales and profits in this business.

Lastly, in the Healthcare Business profits continued to increase due to strong sales of Digital Radiography (DR) products.