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Integrated Report 2020 Konica Minolta Philosophy Introduction

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Integrated Report 2020 Konica Minolta Philosophy Introduction Integrated Report 2020 Konica Minolta Philosophy Introduction Konica Minolta has formulated “Imaging to the People,” a long-term management vision that looks forward to 2030. In concert with these initiatives, we redeveloped Konica Minolta is embarking on a fresh start for the next 10 years in the post-COVID-19 world. our philosophy. Now, Konica Minolta Philosophy comprises Our Philosophy, unchanged We have redefined the Konica Minolta Philosophy and are pursuing the “DX 2022” since its formulation in 2003, Our Vision, which defines our aspirations for 2030, and 6 medium-term business strategy for 2022 on our way to fulfilling our long-term management Values that guide the development of Konica Minolta's corporate culture as the vision for 2030. wellspring of our value creation. This report reviews the achievements and challenges laid out in the SHINKA 2019 medium-term management plan, which concludes in FY 2019, and is intended to plainly convey the company's long-term value creation story and value creation strategy to our stakeholders, with discussion centered on the newly-formulated long-term management vision and new medium-term business strategy, DX2022. Also discussed here are our efforts to improve corporate value through good corporate governance which is the foundation that supports our value creation. The report was a cross-organizational collaboration accomplished by taking cues from sources such as the International Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC) and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation formulated by the Ministry of Economy, Trade and Industry of Japan. Konica Minolta has prepared this integrated report to serve as a systematically-organized communication tool providing financial and non-financial information about Konica Minolta to the company's shareholders, investors, and other stakeholders. Konica Minolta has issued annual reports of an integrated nature since FY2015 (referred to as "integrated reports" since 2017). This is the sixth such report. Going forward, we intend to continue using the integrated report as a tool for dialogue while working to sustainably enhance our corporate value. Shoei Yamana President & CEO KONICA MINOLTA, INC. Integrated Report 2020 1 Konica Minolta Philosophy Introduction Konica Minolta has formulated “Imaging to the People,” a long-term management vision that looks forward to 2030. In concert with these initiatives, we redeveloped Konica Minolta is embarking on a fresh start for the next 10 years in the post-COVID-19 world. our philosophy. Now, the philosophy comprises our vision, unchanged since its We have redefined the Konica Minolta Philosophy and are pursuing the “DX 2022” formulation in 2003, our vision, which defines our aspirations for 2030, and the medium-term business strategy for 2022 on our way to fulfilling our long-term management 6 Values that guide the development of Konica Minolta's corporate culture as the vision for 2030. wellspring of our value creation. This report reviews the achievements and challenges laid out in the SHINKA 2019 medium-term management plan, which concludes in FY 2019, and is intended to plainly convey the company's long-term value creation story and value creation strategy to our stakeholders, with discussion centered on the newly-formulated long-term management vision and new medium-term business strategy, DX2022. Also discussed here are our efforts to improve corporate value through good corporate governance which is the foundation that supports our value creation. The report was a cross-organizational collaboration accomplished by taking cues from sources such as the International Integrated Reporting Framework published by the International Integrated Reporting Council (IIRC) and the Guidance for Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation formulated by the Ministry of Economy, Trade and Industry of Japan. Konica Minolta has prepared this integrated report to serve as a systematically-organized communication tool providing financial and non-financial information about Konica Minolta to the company's shareholders, investors, and other stakeholders. Konica Minolta has issued annual reports of an integrated nature since FY2015 (referred to as "integrated reports" since 2017). This is the sixth such report. Going forward, we intend to continue using the integrated report as a tool for dialogue while working to sustainably enhance our corporate value. Shoei Yamana President & CEO KONICA MINOLTA, INC. Integrated Report 2020 2 Platform Supporting Commitment Value Creation Story Value Creation Strategy Data Section Value Creation Contents Chapter 1 Konica Minolta Philosophy ······················································· 1 Introduction ··············································································· 2 Commitment Contents ····················································································· 3 Chapter 1 Message from the CEO······························································ 5 Message from the Chairman of the Board·····························13 Commitment ··········································· ············ 4 Discussion with Outside Directors········································· 15 Message from the CEO 5 We are accelerating the revision of our Chapter 2 Our DNA ··················································································· 19 business portfolio through digital The society we seek to achieve··············································· 21 transformation with an eye to 2030. Value Creation Story ··························· 17 Value Creation Process···························································· 23 Intangible Assets Fueling Value Creation······························25 A Business Model for Creating Value ····································· 27 Shoei Yamana Chapter 3 Medium-term Business Plan Review······································ 33 President & CEO New Medium-term Business Strategy “DX2022”·················35 Value Creation Strategy ····················· 31 Financial Strategy ···································································· 39 Strategies for Strengthening Customer Engagement··········43 Technology Strategy································································ 47 Human Capital Strategy·························································· 49 Environment Strategy ····························································· 51 Business strategies At a Glance ······································································ 55 Message from the Digital Workplace Business············································ 57 Chairman of the Board ···············13 Professional Print Business ············································ 59 Healthcare Business ······················································· 61 Following the principle that "a company evolve Industry Business···························································· 63 Financial and Non-Financial Highlights ································65 together with society," we will enhance the effectiveness of oversight of the executives who are accelerating our business transformation. Chapter 4 Corporate Governance···························································· 69 Management Members ·························································· 81 Platform Supporting Value Creation ··· 69 Masatoshi Matsuzaki Independent Valuation ··························································· 84 Chairman of the Board Data Section 10-Year Financial Summary····················································· 85 Management’s Discussion and Analysis································ 87 Company Overview/Stock Information ································· 97 Glossary···················································································· 98 Discussion with Outside Directors ··················· Role of Integrated Report 2020 15 Notes on outlook for future results We will do our utmost to help Konica Minolta Integrated Report The plans, strategies and statements related to the outlook for future results in this become an essential presence in the DX era. document are in accordance with Financial data assumptions and beliefs determined by Chikatomo Kenneth Hodo •Annual securities reports •Financial reports management based on currently available •Convocation notices, shareholders' correspondence, etc. information. However, it should be noted that Outside Director Investor interest Non-financial data there is a possibility that actual results could •Sustainability site •Corporate Governance Report differ significantly due to such factors as Taketsugu Fujiwara Importance for the company •Intellectual Property Report •Technology Reports social and economic conditions. •IT Performance Report In this report, unless otherwise indicated, Outside Director "the Company" refers to Konica Minolta, Inc. KONICA MINOLTA, INC. Integrated Report 2020 3 Platform Supporting Commitment Value Creation Story Value Creation Strategy Data Section Value Creation Contents Chapter 1 Konica Minolta Philosophy ······················································· 1 Introduction ··············································································· 2 Commitment Contents ····················································································· 3 Chapter 1
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