HP, Epson and Canon share in India HCP market

India hardcopy peripherals (HCP) market posted 4.1 percent drop in terms of shipments to 0.85 million units in Q1 2019 – driven by slowdown in consumer and commercial demand, the latest IDC report said.

HP (excluding Samsung) maintained its leadership in the India HCP market with 37.7 percent share. HP’s HCP shipment declined 7.6 percent — primarily led by the inkjet segment, which declined by 11.6 percent.

HP retained its 2nd position in the inkjet segment with 24.6 percent share. HP’s copier shipments grew 15.7 percent quarter over quarter due to strong demand from the corporate and Government segment.

HP maintained its leadership position in laser printer market, capturing more than 60 percent of the market share.

Epson remained at 2nd position in the HCP market by grabbing 13.1 percent growth and 31.4 percent market share. Epson held its leadership position in the inkjet market while increasing its unit market share to 56.1 percent.

Epson’s gains were mainly due to SMBs which are preferring ink tank over expensive laser printers as it remains the preferred choice in commercial segment when it comes to ink tank printers.

Canon recorded decline of 10.5 percent while maintaining its 3rd position in the HCP market and capturing 16.1 percent unit market share. The decline in Canon’s shipment was largely due to inventory correction exercise undertaken due to the excessive stockpile in previous quarters.

Canon leads the copier market with 24 percent unit market share. The Government’s  regulations on the refurbished market coupled with increased demand from Government helped Canon in maintaining its dominance in the copier market.

The report said Inkjet printer shipments grew 5.6 percent led primarily by Epson. The growth was led by Ink tank printers which recorded growth of 21.2 percent, the highest growth in the last 5 quarters.

The laser printer market declined 11.9 percent. The copier segment grew 19.4 percent and recorded the highest shipment ever. The copier market grew on the back of strong demand from government and government’s continued tight monitoring of the refurbished copier market.

“Weak consumer demand, observed in 2018Q4, continued well up to the middle of 2019Q1 as well and this largely affected the overall Inkjet market’s health. Demand from SMBs and SOHOs was also on the lower side due to the credit issues they continue to face with banks affecting demand for laser printers,” said Bani Johri, market analyst, IPDS, IDC India.

Prokom gears up for third global conference and extends network into China and Australia

Prokom, the Konica Minolta production print user community, has unveiled further expansion plans as its members prepare for the third global Prokom conference in Valencia, Spain on June 5-6, 2019.

More than 200 delegates from across the world will be convening at the Hotel Las Arenas Balneario Resort in Valencia to network and learn from each other, as Konica Minolta continues to accelerate its growth path within the industrial and commercial print markets.

Latest trends that are shaping the global print industry, blueprints for the future, business diversification, growth and transformation, growth drivers and interactive Q and A sessions will all be featured at Prokom Valencia 2019. The keynote speaker, industry consultant Peter Muir of FranklinCovey, will address “The importance of facts and learning in a changing world”.  The conference will be rounded off with an evening celebration dinner and the Prokom Innovation Awards ceremony.

This year’s conference is booked to capacity, but Konica Minolta production users worldwide are invited to “attend by proxy” with videos, articles, conference highlights and key learning that will be posted to the global Prokom website as the conference proceeds.Last month, Prokom hosted a kick-off event and dinner for more than 500 delegates in China, launched at Gulf Print in Dubai, and is soon launching in Australia.

Membership of Prokom is open to any Konica Minolta user of production printing equipment and now includes over 1,300 member companies worldwide. New Konica Minolta production solution users can learn more at www.prokom.org, featuring e-learning courses, self-help videos and tools, forums, expert content, market research as well as webinars, newsletters and local events.

Toshitaka Uemura, General Manager, Konica Minolta Inc, is one of a team of Konica Minolta senior executives who are focused on ensuring their production print clients carry the keys to success through superior technology, world-class solutions and service, and the rewards of Prokom membership.

Our commitment has always been to give shape to our customers’ ideas. We want to help them to transform their approaches and to capitalize on the many new market opportunities in a connected, online world, where print is very much a strong and valued part of the marketing mix. This annual conference has become an important part of the Prokom user group community as we continue to expand across the world.

Toshitaka Uemura, General Manager, Konica Minolta, Inc.

HP Inc. Reports Fiscal 2019 Second Quarter Results

 

• Second quarter GAAP diluted net earnings per share (“EPS”) of $0.51, above the previously provided outlook of $0.45 to $0.48 per share
• Second quarter non-GAAP diluted net EPS of $0.53, within the previously provided outlook of $0.50 to $0.53 per share
• Second quarter net revenue of $14.0 billion, up 0.2% from the prior-year period
• Second quarter net cash provided by operating activities of $0.9 billion, free cash flow of $0.7 billion
• Second quarter returned $0.9 billion to shareholders in the form of share repurchases and dividends

HP Inc. fiscal 2019 second quarter financial performance
		Q2 FY19					Q2 FY18					Y/Y
GAAP net revenue ($B)		$	14.0				$	14.0				0.2	%
GAAP operating margin		6.6			%		6.5			%		0.1 pts
GAAP net earnings ($B)		$	0.8				$	1.1				(26.1	)%
GAAP diluted net EPS		$	0.51				$	0.64				(20.3	)%
Non-GAAP operating margin		7.4			%		7.3			%		0.1 pts
Non-GAAP net earnings ($B)		$	0.8				$	0.8				2.9	%
Non-GAAP diluted net EPS		$	0.53				$	0.48				10.4	%
Net cash provided by operating activities ($B)		$	0.9				$	1.1				(18.0	)%
Free cash flow ($B)		$	0.7				$	0.9				(20.3	)%

Notes to table
Information about HP Inc.’s use of non-GAAP financial information is provided under “Use of non-GAAP financial information” below.

Net revenue and EPS results
HP Inc. (“HP”) announced fiscal 2019 second quarter net revenue of $14.0 billion, up 0.2% (up 2% in constant currency) from the prior-year period.

Second quarter GAAP diluted net EPS was $0.51, down from $0.64 in the prior-year period and above the previously provided outlook of $0.45 to $0.48. Second quarter non-GAAP diluted net EPS was $0.53, up from $0.48 in the prior-year period and within the previously provided outlook of $0.50 to $0.53. Second quarter non-GAAP net earnings and non-GAAP diluted net EPS exclude after-tax adjustments of $39 million, or $0.02 per diluted share, related to restructuring and other charges, acquisition-related charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, and tax adjustments.

“We delivered solid Q2 financial results, with strong non-GAAP EPS growing double-digits and coming in at the high end of our outlook,” said Dion Weisler, HP’s President and CEO. “We continue to strike the right balance between driving results today and investing in innovation to deliver long term financial performance.”

Asset management
HP’s net cash provided by operating activities in the second quarter of fiscal 2019 was $0.9 billion. Accounts receivable ended the quarter at $5.4 billion, up 4-days quarter over quarter to 35 days. Inventory ended the quarter at $5.4 billion, up 1-day quarter over quarter to 43 days. Accounts payable ended the quarter at $13.8 billion, up 2 days quarter over quarter to 110 days.

HP generated $0.7 billion of free cash flow in the second quarter. Free cash flow includes net cash provided by operating activities of $0.9 billion less net investments in and proceeds from the sale of property, plant and equipment of $114 million.

HP’s dividend payment of $0.1602 per share in the second quarter resulted in cash usage of $0.2 billion. HP also utilized $0.7 billion of cash during the quarter to repurchase approximately 33.6 million shares of common stock in the open market.  As a result, HP returned 125% of its second quarter free cash flow to shareholders. HP exited the quarter with $3.6 billion in gross cash, which includes cash and cash equivalents and short-term investments.

Fiscal 2019 second quarter segment results

• Personal Systems net revenue was up 2% year over year (up 5% in constant currency) with a 4.3% operating margin. Commercial net revenue increased 7% and Consumer net revenue decreased 9%. Total units were down 1% with Notebooks units down 5% and Desktops units up 6%.
• Printing net revenue was down 2% year over year (down 2% in constant currency) with a 16.4% operating margin. Total hardware units were down 4% with Commercial hardware units down 3% and Consumer hardware units down 4%. Supplies net revenue was down 3% (down 3% in constant currency).

Outlook
For the fiscal 2019 third quarter, HP estimates GAAP diluted net EPS to be in the range of $0.49 to $0.52 and non-GAAP diluted net EPS to be in the range of $0.53 to $0.56. Fiscal 2019 third quarter non-GAAP diluted net EPS estimates exclude $0.04 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

For fiscal 2019, HP is updating its estimate of GAAP diluted net EPS to be in the range of $2.04 to $2.11 and revises its previous estimate of non-GAAP diluted net EPS to be in the range of $2.14 to $2.21.  Fiscal 2019 non-GAAP diluted net EPS estimates exclude $0.10 per diluted share, primarily related to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets, non-operating retirement-related (credits)/charges, tax adjustments and the related tax impact on these items.

More information on HP’s earnings, including additional financial analysis and an earnings overview presentation, is available on HP’s Investor Relations website at investor.hp.com.

HP’s FY19 Q2 earnings conference call is accessible via an audio webcast at www.hp.com/investor/2019Q2Webcast.

About HP Inc.
HP Inc. (NYSE: HPQ) creates technology that makes life better for everyone, everywhere. Through our product and service portfolio of personal systems, printers and 3D printing solutions, we engineer experiences that amaze. More information about HP Inc. is available at hp.com.

Use of non-GAAP financial information
To supplement HP’s consolidated condensed financial statements presented on a generally accepted accounting principles (“GAAP”) basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) financial measures. HP also provides forecasts of non-GAAP diluted net EPS and free cash flow. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below or elsewhere in the materials accompanying this news release. In addition, an explanation of the ways in which HP’s management uses these non-GAAP measures to evaluate its business, the substance behind HP’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which HP’s management compensates for those limitations, and the substantive reasons why HP’s management believes that these non-GAAP measures provide useful information to investors is included under “Use of non-GAAP financial measures” after the tables below. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net revenue, operating profit, operating margin, tax rate, net earnings, diluted net EPS, cash provided by operating activities or cash and cash equivalents prepared in accordance with GAAP.

Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP and its consolidated subsidiaries may differ materially from those expressed or implied by such forward-looking statements and assumptions.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of net revenue, margins, expenses, effective tax rates, net earnings, net EPS, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our sustainability goals, the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements; any statements concerning the expected development, performance, market share or competitive performance relating to products or services; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing.

Risks, uncertainties and assumptions include the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third-party suppliers and the distribution of HP’s products and the delivery of HP’s services effectively; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its suppliers, customers, clients and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of the restructuring plans; the impact of changes in tax laws, including uncertainties related to the interpretation and application of the Tax Cuts and Jobs Act of 2017 on HP’s tax obligations and effective tax rate; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2018, and HP’s other filings with the Securities and Exchange Commission.

As in prior periods, the financial information set forth in this release, including any tax-related items, reflects estimates based on information available at this time. While HP believes these estimates to be reasonable, these amounts could differ materially from reported amounts in HP’s Quarterly Report on Form 10-Q for the fiscal quarters ended April 30, 2019 and July 31, 2019, Annual Report on Form 10-K for the fiscal year ended October 31, 2019 and HP’s other filings with the Securities and Exchange Commission. HP assumes no obligation and does not intend to update these forward-looking statements. HP’s Investor Relations website at investor.hp.com contains a significant amount of information about HP, including financial and other information for investors. HP encourages investors to visit its website from time to time, as information is updated, and new information is posted.

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2019				January 31, 2019				April 30, 2018
Net revenue	$	14,036			$	14,710			$	14,003
Costs and expenses:
Cost of revenue	11,307				12,098				11,301
Research and development	353				344				356
Selling, general and administrative(a)	1,339				1,248				1,318
Restructuring and other charges	69				55				57
Acquisition-related charges	11				10				45
Amortization of intangible assets	29				29				20
Total costs and expenses	13,108				13,784				13,097
Earnings from operations	928				926				906
Interest and other, net(a)	(45		)		(26		)		(823		)
Earnings before taxes	883				900				83
(Provision for) benefit from taxes	(101		)		(97		)		975
Net earnings	$	782			$	803			$	1,058
Net earnings per share:
Basic	$	0.51			$	0.52			$	0.65
Diluted	$	0.51			$	0.51			$	0.64
Cash dividends declared per share	$	—			$	0.32			$	—
Weighted-average shares used to compute net earnings per share:
Basic	1,529				1,556				1,630
Diluted	1,536				1,567				1,646

1. Pursuant to adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2019				April 30,2018
Net revenue	$	28,746			$	28,520
Costs and expenses:
Cost of revenue	23,405				23,236
Research and development	697				703
Selling, general and administrative(a)	2,587				2,547
Restructuring and other charges	124				88
Acquisition-related charges	21				87
Amortization of intangible assets	58				40
Total costs and expenses	26,892				26,701
Earnings from operations	1,854				1,819
Interest and other, net(a)	(71		)		(831		)
Earnings before taxes	1,783				988
(Provision for) benefit from taxes	(198		)		2,008
Net earnings	$	1,585			$	2,996
Net earnings per share:
Basic	$	1.03			$	1.83
Diluted	$	1.02			$	1.81
Cash dividends declared per share	$	0.32			$	0.28
Weighted-average shares used to compute net earnings per share:
Basic	1,543				1,640
Diluted	1,551				1,658

1. Pursuant to adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2019								January 31, 2019								April 30, 2018
	Amounts				Diluted net earnings per share				Amounts				Diluted net earnings per share				Amounts				Diluted net earnings per share
GAAP net earnings	$	782			$	0.51			$	803			$	0.51			$	1,058			$	0.64
Non-GAAP adjustments:
Restructuring and other charges	69				0.03				55				0.04				57				0.03
Acquisition-related charges	11				0.01				10				0.01				45				0.03
Amortization of intangible assets	29				0.02				29				0.02				20				0.01
Non-operating retirement-related credits	(10		)		(0.01		)		(12		)		(0.01		)		(53		)		(0.03		)
Debt extinguishment costs	—				—				—				—				126				0.08
Tax adjustments(a)	(60		)		(0.03		)		(76		)		(0.05		)		(455		)		(0.28		)
Non-GAAP net earnings	$	821			$	0.53			$	809			$	0.52			$	798			$	0.48
GAAP earnings from operations(b)	$	928							$	926							$	906
Non-GAAP adjustments:
Restructuring and other charges	69								55								57
Acquisition-related charges	11								10								45
Amortization of intangible assets	29								29								20
Non-GAAP earnings from operations	$	1,037							$	1,020							$	1,028
GAAP operating margin(b)	7		%						6		%						7		%
Non-GAAP adjustments	0		%						1		%						0		%
Non-GAAP operating margin	7		%						7		%						7		%

1. Includes tax impact on non-GAAP adjustments.
2. Pursuant to adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.

HP INC. AND SUBSIDIARIES ADJUSTMENTS TO GAAP NET EARNINGS, EARNINGS FROM OPERATIONS, OPERATING MARGIN AND DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2019								April 30, 2018
	Amounts				Diluted net earnings per share				Amounts				Diluted net earnings per share
GAAP net earnings	$	1,585			$	1.02			$	2,996			$	1.81
Non-GAAP adjustments:
Restructuring and other charges	124				0.07				88				0.05
Acquisition-related charges	21				0.01				87				0.05
Amortization of intangible assets	58				0.04				40				0.02
Non-operating retirement-related credits	(22		)		(0.01		)		(109		)		(0.07		)
Defined benefit plan settlement charges	—				—				1				—
Debt extinguishment costs	—				—				126				0.08
Tax adjustments(a)	(136		)		(0.08		)		(1,628		)		(0.97		)
Non-GAAP net earnings	$	1,630			$	1.05			$	1,601			$	0.97
GAAP earnings from operations(b)	$	1,854							$	1,819
Non-GAAP adjustments:
Restructuring and other charges	124								88
Acquisition-related charges	21								87
Amortization of intangible assets	58								40
Non-GAAP earnings	$	2,057							$	2,034
GAAP operating margin(b)	6		%						6		%
Non-GAAP adjustments	1		%						1		%
Non-GAAP operating margin	7		%						7		%

1. Includes tax impact on non-GAAP adjustments.
2. Pursuant to adoption of Accounting Standards Update (“ASU”) 2017-07, “Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-retirement Benefit Cost”, in the first quarter of fiscal year 2019, HP now reclassifies all components (excluding service cost component) of net periodic benefit cost from Selling, general and administrative expenses to Interest and other, net. HP reflected this change in prior reporting periods on an as-if basis.

 

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (In millions)

	As of
	April 30, 2019				October 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	3,556			$	5,166
Accounts receivable, net	5,414				5,113
Inventory	5,394				6,062
Other current assets	3,921				5,046
Total current assets	18,285				21,387
Property, plant and equipment, net	2,412				2,198
Goodwill	6,349				5,968
Other non-current assets	4,900				5,069
Total assets	$	31,946			$	34,622
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Notes payable and short-term borrowings	$	290			$	1,463
Accounts payable	13,839				14,816
Employee compensation and benefits	826				1,136
Taxes on earnings	206				340
Other accrued liabilities	8,042				7,376
Total current liabilities	23,203				25,131
Long-term debt	4,749				4,524
Other non-current liabilities	5,481				5,606
Stockholders’ deficit	(1,487		)		(639		)
Total liabilities and stockholders’ deficit	$	31,946			$	34,622

 

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Three months ended
	April 30, 2019				April 30, 2018
Cash flows from operating activities:
Net earnings	$	782			$	1,058
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	181				127
Stock-based compensation expense	66				63
Restructuring and other charges	69				57
Deferred taxes on earnings	15				397
Other, net	118				185
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(314		)		(234		)
Inventory	171				86
Accounts payable	(779		)		201
Taxes on earnings	(11		)		(1,528		)
Restructuring and other	(33		)		(44		)
Other assets and liabilities	596				682
Net cash provided by operating activities	861				1,050
Cash flows from investing activities:
Investment in property, plant and equipment	(114		)		(113		)
Purchases of available-for-sale securities and other investments	—				(36		)
Maturities and sales of available-for-sale securities and other investments	410				206
Collateral posted for derivative instruments	(2		)		(293		)
Collateral returned for derivative instruments	2				857
Net cash provided by investing activities	296				621
Cash flows from financing activities:
(Payment of) Proceeds from short-term borrowings with original maturities less than 90 days, net	(1		)		943
Proceeds from short-term borrowings with original maturities greater than 90 days	—				100
Proceeds from debt, net of issuance costs	24				—
Payment of short-term borrowings with original maturities greater than 90 days	—				(969		)
Payment of debt	(62		)		(1,985		)
Stock-based award activities	7				40
Repurchase of common stock	(691		)		(801		)
Cash dividends paid	(245		)		(227		)
Net cash used in financing activities	(968		)		(2,899		)
Increase (Decrease) in cash and cash equivalents	189				(1,228		)
Cash and cash equivalents at beginning of period	3,367				5,475
Cash and cash equivalents at end of period	$	3,556			$	4,247

HP INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

	Six months ended
	April 30, 2019				April 30, 2018
Cash flows from operating activities:
Net earnings	$	1,585			$	2,996
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	349				256
Stock-based compensation expense	173				148
Restructuring and other charges	124				88
Deferred taxes on earnings	118				(3,316		)
Other, net	113				198
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(103		)		38
Inventory	362				450
Accounts payable	(963		)		(277		)
Taxes on earnings	—				935
Restructuring and other	(79		)		(177		)
Other assets and liabilities	44				707
Net cash provided by operating activities	1,723				2,046
Cash flows from investing activities:
Investment in property, plant and equipment	(303		)		(242		)
Proceeds from sale of property, plant and equipment	—				110
Purchases of available-for-sale securities and other investments	(69		)		(304		)
Maturities and sales of available-for-sale securities and other investments	754				345
Collateral posted for derivative instruments	(32		)		(901		)
Collateral returned for derivative instruments	32				910
Payments made in connection with business acquisitions, net of cash acquired	(404		)		(1,020		)
Net cash used in investing activities	(22		)		(1,102		)
Cash flows from financing activities:
(Payments of) Proceeds from short-term borrowings with original maturities less than 90 days, net	(856		)		837
Proceeds from short-term borrowings with original maturities greater than 90 days	—				300
Proceeds from debt, net of issuance costs	64				—
Payment of short-term borrowings with original maturities greater than 90 days	—				(1,087		)
Payment of debt	(538		)		(2,026		)
Stock-based award activities	(76		)		2
Repurchase of common stock	(1,411		)		(1,263		)
Cash dividends paid	(494		)		(457		)
Net cash used in financing activities	(3,311		)		(3,694		)
Decrease in cash and cash equivalents	(1,610		)		(2,750		)
Cash and cash equivalents at beginning of period	5,166				6,997
Cash and cash equivalents at end of period	$	3,556			$	4,247

HP INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions)

	Three months ended
	April 30, 2019				January 31, 2019				April 30, 2018
Net revenue:(a)
Personal Systems	$	8,921			$	9,657			$	8,762
Printing	5,116				5,056				5,241
Corporate Investments	—				1				1
Total segments	14,037				14,714				14,004
Other	(1		)		(4		)		(1		)
Total net revenue	$	14,036			$	14,710			$	14,003
Earnings before taxes:(a),(b)
Personal Systems	$	385			$	410			$	329
Printing	839				821				837
Corporate Investments	(24		)		(24		)		(21		)
Total segment earnings from operations	1,200				1,207				1,145
Corporate and unallocated costs and other	(97		)		(80		)		(54		)
Stock-based compensation expense	(66		)		(107		)		(63		)
Restructuring and other charges	(69		)		(55		)		(57		)
Acquisition-related charges	(11		)		(10		)		(45		)
Amortization of intangible assets	(29		)		(29		)		(20		)
Interest and other, net	(45		)		(26		)		(823		)
Earnings before taxes	$	883			$	900			$	83

1. Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.
2. Pursuant to adoption of ASU 2017-07 in the first quarter of fiscal year 2019, HP now reclassifies market-related retirement credits and all other components (excluding service cost component) of net periodic benefit cost to Interest and other, net in Consolidated Condensed Statement of Earnings. HP reflected this change in prior reporting periods on an as-if basis.

HP INC. AND SUBSIDIARIES SEGMENT INFORMATION (Unaudited) (In millions)

	Six months ended
	April 30, 2019				April 30, 2018
Net revenue:(a)
Personal Systems	$	18,578			$	18,202
Printing	10,172				10,317
Corporate Investments	1				2
Total segments	28,751				28,521
Other	(5		)		(1		)
Total net revenue	$	28,746			$	28,520
Earnings before taxes:(a),(b)
Personal Systems	$	795			$	664
Printing	1,660				1,636
Corporate Investments	(48		)		(40		)
Total segment earnings from operations	2,407				2,260
Corporate costs and eliminations	(177		)		(78		)
Stock-based compensation expense	(173		)		(148		)
Restructuring and other charges	(124		)		(88		)
Acquisition-related charges	(21		)		(87		)
Amortization of intangible assets	(58		)		(40		)
Interest and other, net	(71		)		(831		)
Earnings before taxes	$	1,783			$	988

1. Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.
2. Pursuant to adoption of ASU 2017-07 in the first quarter of fiscal year 2019, HP now reclassifies market-related retirement credits and all other components (excluding service cost component) of net periodic benefit cost to Interest and other, net in Consolidated Condensed Statement of Earnings. HP reflected this change in prior reporting periods on an as-if basis.

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Three months ended												Change (%)
	April 30, 2019				January 31, 2019				April 30, 2018				Q/Q			Y/Y
Net revenue:(a)
Personal Systems
Notebooks	$	5,099			$	5,919			$	5,153			(14	)%		(1	)%
Desktops	2,940				2,857				2,752				3	%		7	%
Workstations	569				562				538				1	%		6	%
Other	313				319				319				(2	)%		(2	)%
Total Personal Systems	8,921				9,657				8,762				(8	)%		2	%
Printing
Supplies	3,331				3,267				3,434				2	%		(3	)%
Commercial Hardware	1,179				1,090				1,145				8	%		3	%
Consumer Hardware	606				699				662				(13	)%		(8	)%
Total Printing	5,116				5,056				5,241				1	%		(2	)%
Corporate Investments(b)	—				1				1				NM			NM
Total segments	14,037				14,714				14,004				(5	)%		—	%
Other(b)	(1		)		(4		)		(1		)		NM			NM
Total net revenue	$	14,036			$	14,710			$	14,003			(5	)%		—	%

1. Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.
2. “NM” represents not meaningful.

HP INC. AND SUBSIDIARIES SEGMENT/BUSINESS UNIT INFORMATION (Unaudited) (In millions)

	Six months ended								Change (%)
	April 30, 2019				April 30, 2018				Y/Y
Net revenue:(a)
Personal Systems
Notebooks	$	11,018			$	10,748			3	%
Desktops	5,797				5,707				2	%
Workstations	1,131				1,081				5	%
Other	632				666				(5	)%
Total Personal Systems	18,578				18,202				2	%
Printing
Supplies	6,598				6,785				(3	)%
Commercial Hardware	2,269				2,182				4	%
Consumer Hardware	1,305				1,350				(3	)%
Total Printing	10,172				10,317				(1	)%
Corporate Investments(b)	1				2				NM
Total segments	28,751				28,521				1	%
Other(b)	(5		)		(1		)		NM
Total net revenue	$	28,746			$	28,520			1	%

1. Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.
2. “NM” represents not meaningful.

HP INC. AND SUBSIDIARIES SEGMENT OPERATING MARGIN SUMMARY (Unaudited)

	Three months ended									Change in Operating Margin (pts)
	April 30, 2019			January 31, 2019			April 30, 2018			Q/Q			Y/Y
Segment operating margin:(a)
Personal Systems	4.3	%		4.2	%		3.8	%		0.1	pts		0.5	pts
Printing	16.4	%		16.2	%		16.0	%		0.2	pts		0.4	pts
Corporate Investments(b)	NM			NM			NM			NM			NM
Total segments	8.5	%		8.2	%		8.2	%		0.3	pts		0.3	pts

1. Effective at the beginning of its first quarter of fiscal year 2019, HP implemented an organizational change to align its business unit financial reporting more closely with its current business structure. The organizational change resulted in the transfer of certain Samsung-branded product categories from Commercial to Consumer within the Printing segment. HP reflected this change to its business unit information in prior reporting periods on an as-if basis. The reporting change had no impact to previously reported segment net revenue, consolidated net revenue, earnings from operations, net earnings or net EPS.
2. “NM” represents not meaningful.

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Three months ended
	April 30, 2019				January 31, 2019				April 30, 2018
Numerator:
GAAP net earnings	$	782			$	803			$	1,058
Non-GAAP net earnings	$	821			$	809			$	798
Denominator:
Weighted-average shares used to compute basic net earnings per share	1,529				1,556				1,630
Dilutive effect of employee stock plans(a)	7				11				16
Weighted-average shares used to compute diluted net earnings per share	1,536				1,567				1,646
GAAP diluted net earnings per share	$	0.51			$	0.51			$	0.64
Non-GAAP diluted net earnings per share	$	0.53			$	0.52			$	0.48

1. Includes any dilutive effect of restricted stock units, stock options and performance-based awards.

HP INC. AND SUBSIDIARIES CALCULATION OF DILUTED NET EARNINGS PER SHARE (Unaudited) (In millions, except per share amounts)

	Six months ended
	April 30, 2019				April 30, 2018
Numerator:
GAAP net earnings	$	1,585			$	2,996
Non-GAAP net earnings	$	1,630			$	1,601
Denominator:
Weighted-average shares used to compute basic net earnings per share	1,543				1,640
Dilutive effect of employee stock plans(a)	8				18
Weighted-average shares used to compute diluted net earnings per share	1,551				1,658
GAAP diluted net earnings per share	$	1.02			$	1.81
Non-GAAP diluted net earnings per share	$	1.05			$	0.97

1. Includes any dilutive effect of restricted stock units, stock options and performance-based awards.

Use of non-GAAP financial measures
To supplement HP’s consolidated condensed financial statements presented on a GAAP basis, HP provides net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt). HP also provides forecasts of non-GAAP diluted net EPS and free cash flow.

These non-GAAP financial measures are not computed in accordance with, or as an alternative to, GAAP in the United States. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables above or elsewhere in the materials accompanying this news release.

Use and economic substance of non-GAAP financial measures 
Net revenue on a constant currency basis excludes the effect of foreign currency exchange fluctuations calculated by translating current period revenues using monthly average exchange rates from the comparative period and excluding any hedging impact recognized in the current period. Non-GAAP operating margin is defined to exclude the effects of any amounts relating to restructuring and other charges, acquisition-related charges, defined benefit plan settlement charges, amortization of intangible assets and non-operating retirement-related (credits)/charges. Non-GAAP net earnings and non-GAAP diluted net EPS consist of net earnings or diluted net EPS excluding those same charges, debt extinguishment cost, tax adjustments and the amount of additional taxes or tax benefits associated with each non-GAAP item. HP’s management uses these non-GAAP financial measures for purposes of evaluating HP’s historical and prospective financial performance, as well as HP’s performance relative to its competitors. HP’s management also uses these non-GAAP measures to further its own understanding of HP’s segment operating performance. HP believes that excluding the items mentioned above for these non-GAAP financial measures allows HP’s management to better understand HP’s consolidated financial performance in relation to the operating results of HP’s segments, as HP’s management does not believe that the excluded items are reflective of ongoing operating results. More specifically, HP’s management excludes each of those items mentioned above for the following reasons:

• Restructuring and other charges are (i) costs associated with a formal restructuring plan and are primarily related to employee termination costs and benefits, costs of real estate consolidation and other non-labor charges; and (ii) other charges, which include non-recurring costs that are distinct from ongoing operational costs. HP excludes these restructuring and other charges (and any reversals of charges recorded in prior periods) for purposes of calculating these non-GAAP measures because HP believes that these costs do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of HP’s current operating performance or comparisons to HP’s operating performance in other periods.
• HP incurs cost related to its acquisitions, which it would not have otherwise incurred as part of its operations. The charges are direct expenses such as third-party professional and legal fees, and integration-related costs, as well as non-cash adjustments to the fair value of certain acquired assets such as inventory. These charges related to acquisitions are inconsistent in amount and frequency and are significantly impacted by the timing and nature of HP’s acquisitions. HP believes that eliminating such expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s past operating performance in other periods.
• HP incurs charges relating to the amortization of intangible assets. Those charges are included in HP’s GAAP earnings, operating margin, net earnings and diluted net EPS. Such charges are significantly impacted by the timing and magnitude of HP’s acquisitions and any related impairment charges. Consequently, HP excludes these charges for purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.
• Non-operating retirement-related (credits)/charges includes certain market-related factors such as interest cost, expected return on plan assets, amortized actuarial gains or losses, and impacts from other market-related factors associated with HP’s defined benefit pension and post-retirement benefit plans. The market-driven retirement-related adjustments are primarily due to the changes in pension plan assets and liabilities which are tied to financial market performance and HP considers these adjustments to be outside the operational performance of the business. Non-operating retirement-related (credits)/charges also include certain plan curtailments, settlements and special termination benefits related to HP’s defined benefit pension and post-retirement benefit plans. HP believes that eliminating such adjustments for purposes of calculating non-GAAP measures facilitates a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.
• HP incurred defined benefit plan settlement charges relating to the U.S. HP pension plan. The charges are associated with the net settlement and remeasurement resulting from voluntary lump sum payments offered to certain terminated vested participants. HP excludes these charges for the purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.
• HP incurred debt extinguishment costs related to the March 2018 repurchase of certain of its outstanding U.S. dollar global notes. These costs primarily included bond repurchase premiums and losses from fair value hedges. HP excludes these costs for the purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.
• Tax adjustments include U.S. tax reform adjustment and net tax indemnification amounts.
  • HP recorded U.S. tax reform adjustment as one-time charges relating to the enactment of the Tax Cuts and Jobs Act of 2017. These charges encompass several elements, including the reversal of previously accrued taxes on unrepatriated overseas profits, a one-time transition tax on accumulated overseas profits and the revaluation of deferred tax assets and liabilities to the new U.S. tax rate. HP has completed the accounting for the tax effects of the Tax Cuts and Jobs Act within the one year measurement period. However, new guidance issued by regulators and new positions taken or elections made by HP may materially impact the provision for income taxes and effective tax rate in the period in which the adjustments are made.
  • As a part of the separation of Hewlett Packard Enterprise Company from HP Inc. (the “Separation”), HP evaluates all tax uncertain positions to determine the indemnification amounts under the Tax Matters Agreement with Hewlett Packard Enterprise Company and records the adjustments as net tax indemnifications amounts for the quarter.
  • HP also recorded other tax adjustments including tax benefits primarily related to the realizability of certain deferred tax assets.

HP excludes these adjustments for the purposes of calculating these non-GAAP measures to facilitate a more meaningful evaluation of HP’s current operating performance and comparisons to HP’s operating performance in other periods.

Free cash flow is a non-GAAP measure that is defined as cash flow from operations less the net of investments in and proceeds from sales of property, plant, and equipment. Gross cash is a non-GAAP measure that is defined as cash and cash equivalents plus short-term investments and certain long-term investments that may be liquidated within 90 days pursuant to the terms of existing put options or similar rights. HP’s management uses free cash flow and gross cash for the purpose of determining the amount of cash available for investment in HP’s businesses, repurchasing stock and other purposes. HP’s management also uses free cash flow and gross cash to evaluate HP’s historical and prospective liquidity. Because gross cash includes liquid assets that are not included in cash and cash equivalents, HP believes that gross cash provides a helpful assessment of HP’s liquidity. Because free cash flow includes the effect of investment in and proceeds from the sale of property, plant and equipment that are not reflected in net cash provided by operating activities, HP believes that free cash flow provides a more accurate and complete assessment of HP’s liquidity and capital resources. Net cash (debt) is defined as gross cash less gross debt after adjusting the effect of unamortized premium/discount on debt issuance, debt issuance costs and unrealized gains/losses on fair value hedges and interest rate swaps.

Material limitations associated with use of non-GAAP financial measures 
These non-GAAP financial measures may have limitations as analytical tools, and these measures should not be considered in isolation or as a substitute for analysis of HP’s results as reported under GAAP. Some of the limitations in relying on these non-GAAP financial measures are:

• Items such as amortization of intangible assets, though not directly affecting HP’s cash position, represent the loss in value of intangible assets over time. The expense associated with this change in value is not included in non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net EPS, and therefore does not reflect the full economic effect of the change in value of those intangible assets.
• Items such as restructuring and other charges, acquisition-related charges, non-operating retirement-related (credits)/charges, defined benefit plan settlement charges, and tax adjustments that are excluded from non-GAAP operating margin, non-GAAP net earnings and non-GAAP diluted net EPS can have a material impact on the equivalent GAAP earnings measure and cash flows.
• HP may not be able to immediately liquidate the short-term and certain long-term investments included in gross cash, which may limit the usefulness of gross cash as a liquidity measure.

Other companies may calculate the non-GAAP financial measures differently than HP, limiting the usefulness of those measures for comparative purposes.

Compensation for limitations associated with use of non-GAAP financial measures 
HP compensates for the limitations on its use of non-GAAP financial measures by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. HP also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure within this news release and in other written materials that include these non-GAAP financial measures, and HP encourages investors to review those reconciliations carefully.

Usefulness of non-GAAP financial measures to investors 
HP believes that providing net revenue on a constant currency basis, non-GAAP total operating expense, non-GAAP operating profit, non-GAAP operating margin, non-GAAP tax rate, non-GAAP net earnings, non-GAAP diluted net EPS, free cash flow, gross cash and net cash (debt) to investors in addition to the related GAAP financial measures provides investors with greater transparency to the information used by HP’s management in its financial and operational decision making and allows investors to see HP’s results “through the eyes” of management. HP further believes that providing this information better enables HP’s investors to understand HP’s operating performance and financial condition and to evaluate the efficacy of the methodology and information used by HP’s management to evaluate and measure such performance and financial condition. Disclosure of these non-GAAP financial measures also facilitates comparisons of HP’s operating performance with the performance of other companies in HP’s industry that supplement their GAAP results with non-GAAP financial measures that may be calculated in a similar manner.

Ricoh moves output to Thailand as China tariffs extend to printers

High-end models now made in Shenzhen are subject to Trump’s latest list

Japanese office equipment maker Ricoh plans to shift production of multifunction printers for the American market out of China and consolidate in Thailand, Nikkei has learned.

The move, which will take place as early as this summer, anticipates a fourth and final round of tariffs in the U.S.-China trade war which includes printers.

Industry peers Fuji Xerox and Canon said they are watching developments on U.S. tariffs. More production shifts could follow if the threatened levies of up to 25% on roughly 3,800 goods take effect. A decision by U.S. President Donald Trump is expected as early as late June.

Ricoh makes printers for the U.S. market in the southern Chinese city of Shenzhen and in Thailand’s central Rayong Province. The production shift will see output of high-end models now made in Shenzhen move to Thailand, which will produce all Ricoh printers bound for the U.S.

The Tokyo-based company has begun to increase Thai production capacity ahead of the transfer and expects it to move quickly. The Chinese- and Thai-made printer models share 70% to 80% of the same components.

After the transfer, Ricoh’s Shenzhen facilities will continue to build printers for European and Asian markets, including Japan. U.S.-bound output accounts for about a tenth of the facilities’ production.

The Americas constitute Ricoh’s biggest region for sales outside Japan, accounting for about 30% of the company’s roughly 1.09 trillion yen ($9.97 billion) in printer segment sales for the year ended in March.

Faced with sluggish demand for printers as businesses use less paper, Ricoh and its peers would face difficulty passing on tariff-related cost increases to consumers, analysts say. The threatened duties raise a problem for Japanese makers of multifunction printers, which hold a roughly 70% combined global market share.

A spokesperson for Fuji Xerox said the company “will consider the best response while closely watching developments.” Canon also said it was watching the situation.

The proposed fourth round of U.S. tariffs on Chinese goods targets products for which American depends heavily on China. China accounts for 52% of the value of U.S. imports of multifunction printers, U.S. trade statistics show.

KONICA MINOLTA Financial Results – FY18

March 2019 Consolidated Financial Results

Presentation Slides for FY2019 Financial Results Briefing Session

 

1. Consolidated financial results for the fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

(1) Consolidated results of operations

(Percentage figures represent changes from the previous fiscal year.)

Fiscal year ended	Revenue		Operating profit		Profit before tax
	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2019	1,059,120	2.7	62,444	16.0	60,138	22.4
March 31, 2018	1,031,256	7.1	53,844	7.4	49,124	-0.4

Fiscal year ended	Profit for the year		Profit attributable to owners of the Company		Total comprehensive income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2019	41,729	29.6	41,705	29.3	41,654	20.2
March 31, 2018	32,207	2.3	32,248	2.2	34,642	36.8

Fiscal year ended	Basic earnings per share	Diluted earnings per share	Profit ratio to equity attributable to owners of the Company	Profit before tax ratio to total assets	Operating profit ratio
	Yen	Yen	%	%	%
March 31, 2019	84.33	84.03	7.7	5.0	5.9
March 31, 2018	65.17	64.96	6.1	4.4	5.2

(Reference)Share of profit (loss) of investments accounted for using the equity method:
Fiscal year ended March 31, 2019: (624) million yen
Fiscal year ended March 31, 2018: (647) million yen

(Note)Basic earnings per share and diluted earnings per share are calculated based on the profit attributable to owners of the Company.

(2) Consolidated financial position

As of	Total assets	Total equity	Equity attributable to owners of the Company	Equity ratio attributable to owners of the Company	Equity per share attributable to owners of the Company
	Millions of yen	Millions of yen	Millions of yen	%	Yen
March 31, 2019	1,218,986	565,983	555,689	45.6	1,123.39
March 31, 2018	1,203,907	535,588	524,513	43.6	1,060.72

(3) Consolidated cash flows

Fiscal year ended	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of the year
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
March 31, 2019	57,166	(41,480)	(40,246)	124,830
March 31, 2018	65,367	(133,737)	126,638	149,913

2. Dividends per share

	End of the three-month period	End of the six-month period	End of the nine-month period	End of the year	Total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended March 31, 2018	–	15.00	–	15.00	30.00
Fiscal year ended March 31, 2019	–	15.00	–	15.00	30.00
Fiscal year ending March 31, 2020 (forecast)	–	15.00	–	15.00	30.00

	Dividends paid (annual)	Dividends payout ratio (consolidated)	Dividends on equity attributable to owners of the Company ratio (consolidated)
	Millions of yen	%	%
Fiscal year ended March 31, 2018	14,872	46.0	2.8
Fiscal year ended March 31, 2019	14,876	35.6	2.7
Fiscal year ending March 31, 2020 (forecast)		32.6

3. Consolidated forecasts for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)

(Percentage figures represent changes from the previous fiscal year.)

Fiscal year ending	Revenue		Operating profit		Profit attributable to owners of the Company		Basic earnings per share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
March 31, 2020	1,120,000	5.7	66,000	5.7	45,500	9.1	91.98

■ Notes

1. Changes in important subsidiaries during the fiscal year ended March 31, 2019 (changes in the scope of consolidation): None
2. Changes in accounting policies or changes in accounting estimates
   • a. Changes in accounting policies required by International
     Financial Reporting Standards (IFRS): Yes
   • b. Changes in accounting policies other than the above a.: None
   • c. Changes in accounting estimates: None
3. Number of issued and outstanding shares (common shares)
   • a. Number of issued and outstanding shares (including treasury shares)
     As of March 31, 2019: 502,664,337 shares
     As of March 31, 2018: 502,664,337 shares
   • b. Number of treasury shares
     As of March 31, 2019: 8,008,984 shares
     As of March 31, 2018: 8,175,975 shares
   • c. Average number of issued and outstanding shares during the year
     The fiscal year ended March 31, 2019: 494,572,664 shares
     The fiscal year ended March 31, 2018: 494,865,264 shares

Konica Minolta, Inc. (the “Company”) has established the Board Incentive Plan trust in which beneficiaries include Directors, Executive Officers, Group Executives, and Technology Fellows. The shares owned by the trust account relating to this trust of 1,250,538 shares as of March 31, 2019, and 1,274,000 shares as of March 31, 2018, are accounted for as treasury shares.

(Reference) Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)

(1) Non-consolidated results of operations

(Percentage figures represent changes from the previous fiscal year.)

Fiscal year ended	Revenue		Operating profit		Ordinary income
	Millions of yen	%	Millions of yen	%	Millions of yen	%
March 31, 2019	452,680	3.8	5,745	－	7,976	4.2
March 31, 2018	436,157	-0.2	82	-97.5	7,655	-51.6

Fiscal year ended	Net income		Net income per share	Net income per share (fully-diluted)
	Millions of yen	%	Yen	Yen
March 31, 2019	7,695	-39.7	15.56	15.50
March 31, 2018	12,756	8.8	25.78	25.70

(2) Non-consolidated financial position

As of	Total assets	Total equity	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
March 31, 2019	766,679	335,001	43.6	675.55
March 31, 2018	792,860	343,086	43.2	691.93

(Reference) Equity:Fiscal year ended March 31, 2019: 334,165 million yen
Fiscal year ended March 31, 2018: 342,151 million yen

■ This summary of consolidated financial results falls outside the scope of audit procedures to be performed by certified public accountants or an audit firm.

■ Explanation concerning the appropriate use of the forecasts for results of operations and other special matters

(Note on the forecasts for the consolidated financial results)

The forecasts for results of operations in this report are based on information currently available to the Company and its subsidiaries (the “Group”), and assumptions determined to be reasonable, and are not intended to assure achievement of the Group’s operations. Actual results may differ significantly from the forecasts due to various factors. For further details of the assumptions and other factors considered by the Company in preparing the above forecasts, refer to “1. OVERVIEW OF FINANCIAL RESULTS, (1) Overview of Consolidated Operating Results, c. Outlook for the Fiscal Year Ending March 31, 2020” in the attached Supplementary Information on page 13.

(Supplementary information for the financial results and briefing on the financial results)