KONICA MINOLTA 2nd Quarter/FY2019 ending in March 2020 Consolidated Financial Results  


2H operating profit for the year

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On this page I will cover the outlook for the 2nd half.
Far left number 27.8 billion yen was the actual result for the 2nd half last year. In order to make an apple to apple comparison with this year, as you see here we have applied this year's forex and eliminated the structural reform expense we had last year and eliminating CRE profit we had in the 3Q, then the number for the 2nd half for FY18, last year becomes 18.5 billion yen.
Then how does that compare to the 2nd half in FY19.
First factor is the US-China tariffs being 4.9 billion yen. 15% rate got implemented as of September 1st to the exports to the US from China. Though we are accelerating our efforts to think about how we can reduce the impact, but we believe we need to have some time in the 2nd half to address this issue including relocation of factories. The number you see here is based on this assumption.
In the Office and the Professional Print, the magnitude of loss we had in the first half will be reduced in the 2nd half YoY, but I have to say that the situation here is still challenging with the reasons I am about to share with you. We have a rather cautious and stringent look to the situation. In contrast, in the Healthcare and other segments, we plan to grow our profit as surely as possible in the 2nd half.