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Integrated Report 2019 Integrated Report 2019 JP TOWER, 2-7-2 Marunouchi, Chiyoda-ku, Tokyo 100-7015, Japan Phone: +81-3-6250-2111 https://konicaminolta.com CONTENTS On the Release of Integrated Report 2019 1 On the Release of Integrated Report 2019 2 CONTENTS Konica Minolta’s Strengths 03 Since fiscal 2015, Konica Minolta has released annual reports (the name of these reports was changed to the and Value Creation 3 Konica Minolta Philosophy integrated report in 2017) that provide a comprehensive look at the Company's activities and philosophies. 7 Value Creation Process The fifth report is now available. We made this integrated report to be a communication tool to better 9 Konica Minolta's Strengths 1. Customer base familiarize stakeholders, including shareholders and investors, with Konica Minolta by systematically 11 Konica Minolta’s Strengths 2. Technical expertise organizing both financial and non-financial information. 13 Konica Minolta’s Strengths 3. Business Model The 2018 integrated report was externally well-received, winning recognition and awards that included Growth Strategy 15 the Special Award in the Nikkei Annual Report Awards conducted by Nikkei Inc., and the Excellence in 15 Medium Term Business Plan Integrated Reporting Prize at the 6th WICI Japan Awards for Excellence in Integrated Reporting. 17 Message from the CEO Integrated Report 2019 clarifies the Konica Minolta Group's strengths and value creation processes 25 Message from the CFO 29 while explaining the Group's medium- to long-term business strategy and pathway to value creation with a Special Topics Building High Value-Added Businesses focus on SHINKA 2019, the new Medium Term Business Plan formulated in 2017. It also reports on initiatives 31 Topic 1. Workplace Hub related to the environment (E), society (S), and governance (G) as the foundations that underpin the 35 Topic 2. Bio-Healthcare Business enhancement of corporate value. 39 Topic 3. Production Print Business Unit The report was a cross-organizational collaboration accomplished by taking cues from sources such as Business Results 41 the International Integrated Reporting Framework published by the International Integrated Reporting 41 Konica Minolta Milestones Council (IIRC) and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for 43 Financial and Non-Financial Highlights Collaborative Value Creation formulated by the Ministry of Economy, Trade and Industry. 47 At a Glance 49 Office Business I can attest to the soundness and accuracy of the report creation process and its 50 Professional Print Business content. Konica Minolta will continue using the integrated report as a tool for 51 Healthcare Business engaging with all of its stakeholders, including its shareholders and investors, as it 52 Industrial Business (Optical Systems for Industrial Use) works to sustainably improve the corporate value it provides. 53 Industrial Business (Materials and Components) 54 Market Data by Segment Shoei Yamana The Foundation Supporting 56 President and CEO Enhanced Corporate Value 57 Discussion on Corporate Governance The Chairman of the Board and an Outside Director 62 Corporate Governance Sustainability Management Role of Integrated Report 2019 75 93 Independent Valuation of Konica Minolta’s Management, Financial data Non-financial data with Its Focus on Achieving Sustainable Growth CSR Report Financial Section 94 Notes on outlook for future results Environmental Report The plans, strategies and statements related to the outlook for future results 95 10-Year Financial Summary in this document are in accordance with assumptions and beliefs Intellectual Property 97 Management’s Discussion and Analysis Integrated Report Report determined by management based on currently available information. However, it should be noted that there is a possibility that actual results Corporate Governance could differ significantly due to such factors as social and economic Report conditions. IT Performance Report 105 Company Overview/Stock Information In this report, unless otherwise indicated, "the Company" refers to Konica Minolta, Inc. 106 Glossary KONICA MINOLTA, INC. Integrated Report 2019 1 CONTENTS On the Release of Integrated Report 2019 1 On the Release of Integrated Report 2019 2 CONTENTS Konica Minolta’s Strengths 03 Since fiscal 2015, Konica Minolta has released annual reports (the name of these reports was changed to the and Value Creation 3 Konica Minolta Philosophy integrated report in 2017) that provide a comprehensive look at the Company's activities and philosophies. 7 Value Creation Process The fifth report is now available. We made this integrated report to be a communication tool to better 9 Konica Minolta's Strengths 1. Customer base familiarize stakeholders, including shareholders and investors, with Konica Minolta by systematically 11 Konica Minolta’s Strengths 2. Technical expertise organizing both financial and non-financial information. 13 Konica Minolta’s Strengths 3. Business Model The 2018 integrated report was externally well-received, winning recognition and awards that included Growth Strategy 15 the Special Award in the Nikkei Annual Report Awards conducted by Nikkei Inc., and the Excellence in 15 Medium Term Business Plan Integrated Reporting Prize at the 6th WICI Japan Awards for Excellence in Integrated Reporting. 17 Message from the CEO Integrated Report 2019 clarifies the Konica Minolta Group's strengths and value creation processes 25 Message from the CFO 29 while explaining the Group's medium- to long-term business strategy and pathway to value creation with a Special Topics Building High Value-Added Businesses focus on SHINKA 2019, the new Medium Term Business Plan formulated in 2017. It also reports on initiatives 31 Topic 1. Workplace Hub related to the environment (E), society (S), and governance (G) as the foundations that underpin the 35 Topic 2. Bio-Healthcare Business enhancement of corporate value. 39 Topic 3. Production Print Business Unit The report was a cross-organizational collaboration accomplished by taking cues from sources such as Business Results 41 the International Integrated Reporting Framework published by the International Integrated Reporting 41 Konica Minolta Milestones Council (IIRC) and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for 43 Financial and Non-Financial Highlights Collaborative Value Creation formulated by the Ministry of Economy, Trade and Industry. 47 At a Glance 49 Office Business I can attest to the soundness and accuracy of the report creation process and its 50 Professional Print Business content. Konica Minolta will continue using the integrated report as a tool for 51 Healthcare Business engaging with all of its stakeholders, including its shareholders and investors, as it 52 Industrial Business (Optical Systems for Industrial Use) works to sustainably improve the corporate value it provides. 53 Industrial Business (Materials and Components) 54 Market Data by Segment Shoei Yamana The Foundation Supporting 56 President and CEO Enhanced Corporate Value 57 Discussion on Corporate Governance The Chairman of the Board and an Outside Director 62 Corporate Governance Sustainability Management Role of Integrated Report 2019 75 93 Independent Valuation of Konica Minolta’s Management, Financial data Non-financial data with Its Focus on Achieving Sustainable Growth CSR Report Financial Section 94 Notes on outlook for future results Environmental Report The plans, strategies and statements related to the outlook for future results 95 10-Year Financial Summary in this document are in accordance with assumptions and beliefs Intellectual Property 97 Management’s Discussion and Analysis Integrated Report Report determined by management based on currently available information. However, it should be noted that there is a possibility that actual results Corporate Governance could differ significantly due to such factors as social and economic Report conditions. IT Performance Report 105 Company Overview/Stock Information In this report, unless otherwise indicated, "the Company" refers to Konica Minolta, Inc. 106 Glossary KONICA MINOLTA, INC. Integrated Report 2019 2 Konica Minolta Philosophy Our Philosophy The Creation of New Value Our Vision A global company that is vital to society Possessing a mindset that drives us to best serve and improve the quality of society in all our activities, we are determined to become a company that is vital to global society by providing excitement that exceeds the expectations of all. 6 Values An innovative company that is robust Our 6 Values are the essence of our innermost beliefs, our inherited DNA, and define how we go about our business and act towards all our partners. They articulate what we stand for and direct our decision making. and constantly evolving We are committed to becoming an innovative company that stands tall in difficult times with a solid and quality business base, ensuring we remain courageous to Open and honest Passionate provide new value in the face of any challenge. We are convinced that only by acting with integrity and Being passionate, strong-willed and determined is communicating with all our partners in an open and essential to making a meaningful contribution to our honest way can we create long-lasting partnerships of customers’ businesses and society as a whole. mutual trust and true significance. Inclusive and collaborative Customer-centric We believe that the power of inclusiveness and We exist solely for our customers; always thinking
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