Konica Minolta Group 1H / March 2008 Consolidated Financial Results Six months: Apr. - Sep. 2007

Transcription

1 Konica Minolta Group 1H / March 28 Consolidated Financial Results Six months: Apr. - Sep. 27 November 1, 27 Yoshikatsu Ota President & CEO Konica Minolta Holdings, Inc. Cautionary Statement: The forecasts mentioned in this material are the results of estimations based on currently available information, and accordingly, contain risks and uncertainties. The actual results of business performance may sometimes differ from those forecasts due to various factors. Remarks: Yen amounts are rounded to the nearest million.

2 Consolidated results - Summary Net Sales: Upward trend Recovered from downward trend caused by the Photo Imaging business exit. Up 6% Y-O-Y (up 13% excluding Photo Imaging). Operating Income: Record highs for three consecutive interim periods Business Technologies good performance. Up 23% Y-O-Y; Up 19% vs. plan Business Technologies: Increases in sales and profit Good performance mainly due to robust sales of newly launched color MFPs, supporting the Group s revenues and profit growth. Net sales --- Up 12% Y-O-Y, Operating income --- Up 31% Y-O-Y. Optics: Increases in sales and profit Solid results thanks to strong demand recovery. Net sales --- Up 23% Y-O-Y, Operating income --- Up 22% Y-O-Y. Medical & Graphic: Revenue increased but profit dropped Operating income dropped due to the soaring price of silver and increase in R&D expenses although net sales increased. Net sales --- Up 6% Y-O-Y, Operating income --- Down 23% Y-O-Y. Earnings forecasts: Revised upward Upward revision considering the positive interim results. A rise of dividends (Interim: 5 yen 7.5 yen. Annual: 1 yen 15 yen) 1

3 Consolidated results - Highlights [a] [b] [a] / [b] [c] [a] / [c] 1H/ 1H / Y-O-Y 1H / Difference Actual Actual (%) Plan (%) Net sales % % Gross income % Gross income ratio 49.5% 48.1% Operating income % % Operating income ratio 1.9% 9.4% % Ordinary income % 42. 3% Net income before taxes % % Net income % % Net income ratio 7.2% 4.6% % FOREX [Yen] USD EUR EPS [Yen] % ROE [full year] 18.8% 14.% --- CAPEX % Depreciation * % R&D % FCF [ NOTE ] 1H / Plan: Announced May 1, 27 * Including an increase of 1.3 billion yen for depreciation due to tax law change. 2

4 Consolidated results Segment Net sales Operating income * Including Photo Imaging: 29.9 billion yen [a] [b] [a] / [b] [c] [a] / [c] 1H / 1H / Y-O-Y 1H / Difference Actual Actual (%) Plan (%) Business Technologies % 33. 5% Optics % % Medical & Graphic % 78. 3% Other businesses % 9. -8% Sub total % % HD and eliminations 5.8 * % 4. 46% Group total % % [a] [b] [a] / [b] [c] [a] / [c] 1H / 1H / Y-O-Y 1H / Difference Actual Actual (%) Plan (%) Business Technologies % % Optics % % Medical & Graphic % % Other businesses % % Sub total % % HD and eliminations -6. * Group total % % * Including Photo Imaging: -.7 billion yen [ NOTE ] 1H / Plan: Announced May 1, 27 3

5 Changes in net sales and operating income Net sales H / Business Technologies Optics Medical & Graphic +4.6 Effect of Photo Imaging (Effect: billion yen): No revenues since the interim period under review. [billions of yen] Other -26.6* 525. Y-O-Y H / Net sales: Up 31. billion yen (+ 6%) Business Technologies: Robust sales due to high-seg. color MFP s (bizhub C55, bizhubpro C65) favorable sales. Optics: Strong revenue growth mainly due to favorable sales of TAC film, optical pickup lenses/lens units for nextgeneration DVDs and mobile phone components. Medical & Graphic: Slight increase due to efforts for marketing digital equipment in both medical and graphic fields. Operating income H / Business Technologies +1.6 Optics +2.4 Medical & Graphic -1.2 [billions of yen] Operating income: Up 1.8 billion yen (+23%) Other -1. Business Technologies: Increase in unit sales due to highspeed color MFP s robust sales. Consumables and color ratios increased Optics: Growth due to strong sales in value-added products despite the impact of downward pressure on prices and the Y-O-Y rising depreciation expenses Medical & Graphic: Profit decreased due to rising R&D expenses for new products and soaring silver prices. 1H / 4

6 Net sales - Sub segment Business Technologies Optics Medical & Graphic Imaging [billions of yen] [billions of yen] [billions of yen] MFP LBP 1H/ +12% +23% +6% +15% -11% 1H/ Display materials Memory devices Image Input/ output devices 1H/ +21% +28% +21% 1H/ H/ 8.6 Medical +4% Graphic +12% 1H/ MFP unit sales Y-O-Y: +9% Color: +21% B/W: +5% (of which, production print: +29%) LBP unit sales Y-O-Y: -25% Color: -42% (of which, single-pass: +2%) B/W: -18% LCD materials unit sales Y-O-Y TAC film : +36% Memory devices unit sales Y-O-Y Optical pickup lenses: -15% Glass substrates for HD: -1% Image input/output components unit sales Y-O-Y Mobile phone components: +24% Medical X-ray film unit sales Y-O-Y: -8% Digital input/output equipment unit sales Y-O-Y: +21% Graphic Graphic-arts film unit sales Y-O-Y: +4% 5

7 New products Business Technologies Business Technologies -- Enhanced product lineup adding a high-speed model and 3 medium-low speed models C55 [55 ppm color and B/W] Main features: High-quality images achieved through the use of the newly developed polymerized toner and image processing technologies. Paper size flexibility, and precise registration adjustment. Various booklet finishing options to increase in-house booklet-making capabilities. C353/C253/C23 [35, 25, 2 ppm color and B/W] Main features: High-quality images achieved through the use of the newly developed polymerized toner. Latest network, security, and document management functions. Equipped with the bizhub Open Platform designed for various office network environment. 6

8 Forecasts [Full year] - Consolidated results Forecast - Current Forecast - Actual [a] [b] [a] / [b] [c] [a] / [c] 1H Actual 2H Plan FY Plan FY % FY % Net sales ,85. 1,45. 4% 1,27.6 6% Operating income % % Operating income ratio 1.9% 1.5% 1.7% 1.% % --- Ordinary income % % Net income before taxes % % Net income % % Net income ratio 7.2% 5.1% 6.1% 4.5% % --- FOREX [Yen] USD EUR EPS % % CAPEX % 64. 9% Depreciation % % R&D % % FCF % % Impact of exchange rate fluctuation to operating income if given 1 change (full year base): FY/ actual : US$ 4 million. EUR 75 million. 1H/ actual : US$ million. EUR 85 million. 7

9 Forecasts [Full year] - Consolidated results Segment Net sales Operating income Forecast - Current Forecast - Actual [a] [b] [a] / [b] [c] [a] / [c] 1H Actual 2H Plan FY Plan FY % FY % Business Technologies % % Optics % % Medical & Graphic % % Other businesses % % Sub total ,74. 1,37. 4% % HD and other % * % Group total ,85. 1,45. 4% 1,27.6 6% * Including Photo Imaging: 47.8 billion yen Forecast - Current Forecast - Actual [a] [b] [a] / [b] [c] [a] / [c] 1H Actual 2H Plan FY Plan FY % FY % Business Technologies % 8. 14% Optics % % Medical & Graphic % 8.9 1% Other businesses % 2.9 2% Sub total % % HD and eliminations * Group total % % * Including Photo Imaging: -.8 billion yen 8

10 Forecasts [2H ] Sub segment net sales/unit sales Business Technologies Optics Medical & Graphic Imaging +5% +29% +2% [billions of yen] [billions of yen] [billions of yen] MFP % Display materials Memory devices % +25% Medical +2% LBP 2H/ +3% 2H/ 25 Image Input/ output devices 2H/ +23% 2H/ 25 Graphic +3% 2H/ 2H/ MFP unit sales Y-O-Y: +5% Color: +45% B/W: -1% (of which, production print: +1%) LBP unit sales Y-O-Y: -4% Color: -35% (of which, single-pass: +65%) B/W: -4% LCD materials unit sales Y-O-Y TAC film : +45% Memory devices unit sales Y-O-Y Optical pickup lenses: % Glass substrates for HD: +35% Image input/output components unit sales Y-O-Y Mobile phone components: +15% Medical X-ray film unit sales Y-O-Y: % Digital input/output equipment unit sales Y-O-Y: +55% Graphic Graphic-arts film unit sales Y-O-Y: -15% 9

11 Operations outlook 2H and subsequent periods The essentials of Imaging to be acknowledged as an essential company in the world of imaging Business Technologies Further promote the genre-top strategies. Color MFP: Renew product lineup and solidify the top market share in Europe and the US. Production printing: Establish the genre-top position in color. Optics Implement full-scale preparations for production to be able to quickly respond to the trend of recovering demand and market expansion. TAC film: Expand business scale while maintaining upward trend in new VA-TAC sales. Optical pickup lens: Solidify a dominant position in the market for the use of next-generation DVD products and consistently respond to increasing market demand. Medical & Graphic Strengthen overall marketing; equipment, materials, and solutions. Medical: Expand new CR systems marketing for clinics. Graphic: Strengthen marketing in the digital printing field. 1

12 Supplementary Information 11

13 [Reference] Consolidated Financial Results [a] [b] [a] / [b] / / Y-O-Y Actual Actual (%) Net sales % Gross income % Gross income ratio 49.% 47.4% --- Operating income % Operating income ratio 11.9% 9.5% --- Ordinary income % Net income before taxes % Net income % Net income ratio 7.9% 4.7% --- FOREX [Yen] USD EUR CAPEX % Depreciation % R&D % FCF % 12

14 [Reference] Consolidated Financial Results - Segment Net sales [a] [b] [a] / [b] / / Y-O-Y Actual Actual (%) Business Technologies % Optics % Medical & Graphic % Other businesses % Sub total % HD and eliminations 3.3 * 14.7 Group total % * Including Photo Imaging: 12.8 billion yen Operating income [a] [b] [a] / [b] / / Y-O-Y Actual Actual (%) Business Technologies % Optics % Medical & Graphic % Other businesses % Sub total % HD and eliminations -2.9 * -2.9 Group total % * Including Photo Imaging: -.4 billion yen 13

15 [Reference] Net sales - Sub segment Business Technologies Optics Medical & Graphic Imaging [billions of yen] [billions of yen] [billions of yen] MFP LBP / +1% +29% +13% +13% -14% / Display materials Memory devices Image Input/ output devices / +46% +28% +21% / / 44.9 Medical +14% Graphic +13% / MFP unit sales Y-O-Y: +9% Color: +23% B/W: +5% (of which, production print: +35%) LBP unit sales Y-O-Y: -29% Color: -54% (of which, single-pass: +42%) B/W: -18% LCD materials unit sales Y-O-Y TAC film : +53% Memory devices unit sales Y-O-Y Optical pickup lenses: -3% Glass substrates for HD: +3% Image input/output components unit sales Y-O-Y Mobile phone components: +46% Medical X-ray film unit sales Y-O-Y: -2% Digital input/output equipment unit sales Y-O-Y: +47% Graphic Graphic-arts film unit sales Y-O-Y: -1% 14

16 [Reference] Operating income analysis [w/o Photo Imaging] 1H / March 28 / March 28 [billions of yen] Forex impact 1.4 Sales volume change and other 25.3 Cost cut 1.6 Including effects from soaring raw materials prices: -1.5 Change 1H / vs. 1H / 1.3 Forex impact 4. Sales volume change and other 16.7 Cost cut 1.3 Including effects from soaring raw materials prices: -.4 Change / vs. / Price change SG&A change Including depreciation increase due to tax law change: Price change Including depreciation -9.1 increase due to tax law change: -.9 SG&A change Excluding forex Excluding forex 15

17 [Reference] SG&A 1H/ 1H/ Y-O-Y / / Y-O-Y Sales expenses R&D Salaries and wages Other SG&A total Forex impact: 1H / : +7. billion yen (Actual: +4.1 billion yen) / : +2.6 billion yen (Actual: +3.1 billion yen) 16

18 [Reference] Non-operating profit/loss 1H/ 1H/ Y-O-Y / / Y-O-Y Interest and dividend income Foreign exchange gain Other Non-operating income Interest expenses Loss on revaluation/disposal of Foreign exchange loss Other Non-operating expenses Non-operating income/expenses

19 [Reference] Extraordinary income/loss 1H/ 1H/ Y-O-Y / / Y-O-Y Gain on sales of fixed assets Gain on sales of investment securities Gain on sales of isubsidiaries' securities Reversal of allowance for loss on withdrawal from opeatation Other Extraordinary profits Loss on disposal/sales of fixed assets Loss due to impairment Other Extraordinary losses Extraordinary profits/losses

20 [Reference] Cash Flows 1H/ 1H/ Y-O-Y / / Y-O-Y Income before income taxes Depreciation and amortization Increase (decrease) in reserve for business withdrawal losses Increase (decrease) of working capital, other I. Net cash provided by operating activities II. Net cash outflow from investing activities I.+ II. Free cash flow Increase (decrease) in debts and bonds Dividends paid Other III Net cash outflow from financing activities

21 [Reference] B/S - Assets 1, Mar 27 Sep 27 Mar 27 vs. Sep 27: billion yen Of which, forex impact: billion yen (Actual change: billion yen) Forex: B/S [Yen] Mar 27 Sep 27 US$ Euro Cash and deposits Notes and A/R Inventories Other current assets Tangible fixed assets Consolidation goodwill Other intangible fixed assets Investments and others Due to Photo Imaging s business exit: -6. billion yen TAC film production facilities, etc. 2

22 [Reference] B/S Liabilities and shareholders equity 1, Forex: B/S [Yen] Mar 27 Sep 27 US$ Euro Notes and A/P Interest bearing debts Other current liabilities shareholders' equity Mar 27 Sep 27 Equity ratio: Mar % Sep % Mar 27 vs. Sep 27: billion yen Of which, forex impact: billion yen (Actual change: billion yen) 21

23 [Reference] Interest bearing debts and inventories Interest-bearing debts Debts D/E ratio [Times] Mar 26 Jun 26 Sep 26 Dec 26 Mar 27 Jun 27 Sep 27 Mar 28 Plan D/E ratio = Interest-bearing debts at year-end / Shareholders equity at year-end Inventories and inventory turnover Inventories Turnover [Months] Mar 26 Jun 26 Sep 26 Dec 26 Mar 27 Jun 27 Sep 27 Mar 28 Plan Inventory turnover (months) = Average inventories / Average cost of sales per month 22

24 [Reference] Full year Forecasts Sub segment net sales/unit sales Business Technologies Optics Medical & Graphic Imaging +9% +26% +4% [billions of yen] [billions of yen] [billions of yen] MFP LBP % -4% Display materials Memory devices Image Input/ output devices % +26% +22% Medical +3% Graphic +7% MFP unit sales Y-O-Y: +5% Color: +35% B/W: -5% (of which, production print: +2%) LBP unit sales Y-O-Y: -3% Color: -35% (of which, single-pass: +4%) B/W: -3% LCD materials unit sales Y-O-Y TAC film : +4% Memory devices unit sales Y-O-Y Optical pickup lenses: -5% Glass substrates for HD: +15% Image input/output components unit sales Y-O-Y Mobile phone components: +8% Medical X-ray film unit sales Y-O-Y: -5% Digital input/output equipment unit sales Y-O-Y: +4% Graphic Graphic-arts film unit sales Y-O-Y: -5% 23

25 [Reference] Unit sales Business Technologies MFP Production printing (Color and B/W) color B/W Q 4Q 3Q 4Q Color LBP B/W LBP Q 14 4Q Own OEM * Base index : = Q 11 4Q Own OEM

26 [Reference] Unit sales Optics TAC film Standard High function 15 Glass substrates for HD Q 4Q 3Q 4Q Optical pickup lens Mobile phone components Lens units Camera units Q 4Q 3Q 4Q * Base index : = 25

27 [Reference] Unit sales Medical & Graphic X-ray film (dry & wet) Digital input/output equipment Wet Dry Output equipment Input equipment Q 4Q 3Q 4Q * Base index : = 26