January 28, 2011

Fiscal Year ending March 31, 2011 Third Quarter Consolidated Financial Results
Three months: October 1, 2010 December 31, 2010 Nine months: April 1, 2010 December 31, 2010
Konica Minolta Holdings, Inc.
Stock exchange listings: Local securities code number: URL: Listed company name: Representative: Inquiries:
Tokyo, Osaka (First Sections) 4902 http://konicaminolta.com Konica Minolta Holdings, Inc. Masatoshi Matsuzaki, President and CEO Kiyoshi Nakamura, General Manager, Corporate Communications & Branding Division Telephone number: (81) 3-6250-2100 Scheduled date for submission of securities report: February 10, 2011 Scheduled date for dividends payment: Availability of supplementary information: Yes Organization of financial result briefing: Yes (for institutional investors)
(Units of less than 1 million yen have been omitted.)
1. Overview of the 3Q performance (From April 1, 2010 to December 31, 2010) (1) Business performance
Percentage figures represent the change from the same period of the previous year. Net sales Operating income Ordinary income [Millions of yen] Net income

3Q Mar/2011 3Q Mar/2010

575,280 588,731

-2.3% -21.1%

28,251 21,203

33.2% -66.5%

22,274 19,135

16.4% -64.6%

10,790 9,007

19.8% -67.1%

Net income per share
Net income per share (after full dilution)

20.35 yen 16.99 yen

19.70 yen 16.00 yen

(2) Financial position

Total assets December 31, 2010 March 31, 2010 Notes: Shareholders equity As of December 31, 2010 : As of March 31, 2010: Net assets Equity ratio (%)
[Millions of yen] Net assets per share

857,930 865,797

406,913 million 419,535 million

408,198 420,775

47.4% 48.5%

767.43 yen 791.28 yen

2. Dividends per share
FY Mar/2010 FY Mar/2011 FY Mar/2011forecast Note: Change to dividend forecast: None

Year-end

Total annual

7.50 7.50

15.00 15.00
3. Consolidated results forecast for fiscal year ending March 31, 2011 (From April 1, 2010 to March 31, 2011)
Percentage figures for the full year represent the change from the previous fiscal year. Net sales Operating income Ordinary income [Millions of yen] Net income

Full-year

780,000 -3.0%

45,000

38,000 -6.9%

20,000 18.1%

37.72 yen
Note: Change to consolidated results forecast: Yes

4. Other

Note: For more detailed information, please see the 4. Others on page 14.
(2) (3) Changes in state of material subsidiaries during the quarter under review: None
Adoption of simplified accounting methods and application of special accounting methods for the preparation of quarterly consolidated financial statements: Yes Changes to consolidated financial statement principles, preparation processes, disclosure methods, etc. (Description of changes to important items fundamental to financial statement preparation) a. Changes accompanying amendment of accounting principles: b. Changes other than a.: None Yes
Number of outstanding sharescommon stock a. Outstanding shares at period-endincluding treasury stock Third quarter of fiscal year ending March 31, 2011: Fiscal year ended March 31, 2010: b. Treasury stock at period-end Third quarter of fiscal year ending March 31, 2011: Fiscal year ended March 31, 2010: c. Average number of outstanding shares Third quarter of fiscal year ending March 31, 2011: Third quarter of fiscal year ended March 31, 2010: 531,664,337 shares 531,664,337 shares 1,436,886 shares 1,464,883 shares 530,221,078 shares 530,279,272 shares
Presentation of Present Status of Quarterly Review Procedures This Third Quarter Consolidated Financial Results is not subject to quarterly review procedures in accordance with the Financial Instruments and Exchange Law and, as of the date of publication of these quarterly consolidated financial results, the quarterly review procedures for the consolidated quarterly financial statements are currently in progress. Explanation of Appropriate Use of Performance Projections and Other Special Items This document contains projections of performance and other projections that were made based on information currently available and certain assumptions judged to be reasonable. There is a possibility that diverse factors may cause actual performance, etc., to differ materially from the projections. Please see the 3. Outlook for the Fiscal Year Ending March 31, 2011 on page 13 for more information on points to be remembered in connection with the use of projections.

Optics Business

Display materials field: Sales volumes of VA-TAC films (viewing angle expansion films) declined year on year, given the effects of continued production adjustments carried out by customers since last summer, while those of the extra-wide and thin plain TAC films rose from the previous year. As a result, overall sales volumes were almost level with the results of the previous year.
Memory related product field: Although sales volumes of optical pickup lenses and glass HD substrates increased year on year, their growth was not as strong as was originally anticipated, given the effects of production adjustments seen in the overall digital home appliances industry since last summer. As a result, the impact of higher sales volumes on earnings was limited. Image input/output component field: Sales volumes of lens units for digital cameras and video cameras rose year on year, but those for cell phones with cameras fell significantly. Overall, sales volumes of TAC films, optical pickup lenses and glass HD substrates generally remained sluggish, as a result of the production adjustment seen in the overall digital home appliances industry since last summer. As a consequence, net sales of the Optics Business to outside customers and its operating income remained on a par with those for the previous year, with net sales of 99.4 billion and operating income of 10.0 billion.

Healthcare Business

The Konica Minolta Group has restructured its operations by integrating the businesses associated with commercial printing and digital printing, included in Medical & Graphic Imaging Business, into the Business Technologies Business in the third quarter of the consolidated fiscal year under review. Consequently, the title of the reportable segment has changed from the Medical & Graphic Imaging Business to the Healthcare Business. In the digital X-ray diagnostic imaging area, the mainstay business area of the Healthcare Business, the Company continued to take steps to boost sales of digital input equipment and systems, such as the REGIUS MODEL 110, a compact computed radiography device, and the service solution business. As a result, unit sales of digital input equipment for the period under review exceeded the results for the year-ago period, both in Japan and overseas markets. In contrast, sales of film products declined from a year ago, given a continued rise in the use of filmless equipment, as well as the effects of the appreciation of the yen. As a consequence, net sales of the Healthcare Business to outside customers were 62.5 billion, and operating income stood at 0.5 billion. Net sales and the operating loss of the graphic imaging section for the third quarter of the previous fiscal year, 4.3 billion and 0.5 billion respectively, were included into the Companys results for that period.

Three months ended December 31, 2010 (From October 1, 2010 to December 31, 2010)
Year-on-Year 3Q Mar/2011 183.4 83.6 5.6 4.3 4.6 2.1 4.06 8.5 13.6 18.7 -6.8 82.64 112.23 3Q Mar/2010 195.3 89.7 12.0 10.4 10.6 5.4 10.32 6.9 15.1 16.6 25.6 89.72 132.68 [Billions of yen] Increase (Decrease) (11.9) (6.0) (6.3) (6.0) (5.9) (3.3) -6.26 1.5 (1.4) 2.0 (32.4) (7.08) (20.45) -6.1% -6.8% -53.1% -58.0% -56.2% -60.6% -60.7 21.9% 9.7% 12.6% -7.9% -15.4%
Net sales Gross profit Operating income Ordinary income Income before income taxes and minority interests Net income Net income per share Capital expenditure Depreciation R & D expenses Free cash flow Exchange rates US dollar Euro [yen]
Three months Business Performance by Segment 3Q Mar/2011 Year-on-Year [Billions of yen] 3Q Increase (Decrease) Mar/2010
130.2 6.3 30.2 2.0 17.5 0.0
133.9 10.1 32.1 4.1 23.4 (0.2)
(3.6) (3.7) (1.8) (2.1) (5.9) 0.2
-2.8% -37.2% -5.8% -50.9% -25.1%
With respect to the operating results of the Konica Minolta Group for the consolidated third quarter of the fiscal year under review (October 1, 2010 to December 31, 2010), net sales declined 6.1% year on year, to 183.4 billion, while operating income decreased 53.1% year on year, to 5.6 billion. These results reflected negative factors such as sluggish growth in sales volume associated with fluctuations in demand, changes in the sales mix, and fluctuations in sales prices, as well as the strong adverse impact of the appreciation of the yen. This negative impact on net sales and operating income from exchange rates was 14.1 billion and 5.3 billion, respectively. Reflecting the lower operating income, the Group recorded reduced income in other income levels, with ordinary income standing at 4.3 billion, income before income taxes and minority interests amounting to
4.6 billion, and net income reaching 2.1 billion. In the Business Technologies Business, sales volumes of both color and monochrome MFPs for offices exceeded the results for the same period of the previous fiscal year. In the production printing field, sales volumes of color products increased year on year, while sales of monochrome products were weaker. Consequently, overall sales volumes were almost unchanged from the previous year. As new, high-margin products had only a limited effect on sales in both the offices and production printing fields, the adverse effect of fluctuations of foreign exchange rates and prices could not be offset. As a result, net sales of this business segment declined slightly from a year ago, to 130.2 billion, while operating income was 6.3 billion, a fall of 37.2% year on year. The negative impact on net sales and operating income from the fluctuations of foreign exchange rates was 12.3 billion and 4.2 billion, respectively. In the Optics Business, although sales volume of plain TAC films did not reach the year-ago level, influenced by the production adjustments carried out by customers, overall sales achieved higher volumes than the previous quarter and maintained upward momentum with October as its bottom, backed by the start of shipments of new VA-TAC films in the third quarter under review. Meanwhile, sales volumes of glass HD substrates were up year on year, but failed to show expected growth because of the prolonged production adjustment phase seen in the overall digital home appliances industry. Sales volumes of optical pickup lenses and lens units for mobile phones with cameras remained generally sluggish. As a result, net sales of this business segment for the third quarter under review declined 5.8% year on year, to 30.2 billion, and operating income fell 50.9% from a year ago, to 2.0 billion. In the Healthcare Business, sales volumes of film products declined year on year, reflecting continued setback in demand, but sales of digital input equipment increased. Meanwhile, the graphic imaging section was integrated into the Business Technologies Business in the third quarter under review, associated with the organizational restructuring in the Konica Minolta Group. As a result, net sales of this business segment for the third quarter under review were 17.5 billion, down 25.1% year on year, while operating income was 0.0 billion, returning to profitability from an operating loss in the same period of the previous fiscal year.

Analysis of Financial Position
As of December 31, 2010 As of March 31, 2010 Increase (Decrease)
Total assets Total liabilities Net assets Net assets per share Equity ratio
[Billions of yen] [Billions of yen] [Billions of yen] [yen] [%]
857.9 449.7 408.1 767.43 47.4
865.7 445.0 420.7 791.28 48.5
(7.8) 4.7 (12.5) (23.85) (1.0)
Total assets at the end of the third quarter of the consolidated fiscal year under review were down 7.8 billion (0.9%) from the previous fiscal year-end, to 857.9 billion. Current assets rose 16.2 billion (3.3%) to 505.5 billion (58.9% to total assets), while noncurrent assets fell 24.1 billion (6.4%), to 352.4 billion (41.1% to total assets). With respect to current assets, cash and deposits increased 3.3 billion from the previous fiscal year-end, to 88.9 billion. Cash and cash equivalents including investment securities rose 28.3 billion, to 192.4 billion. Inventories were up 7.0 billion from the previous fiscal year-end, to 105.3 billion, and deferred tax assets and accounts receivable-other also rose 3.1 billion and 1.1 billion, respectively. Meanwhile, notes and accounts receivable-trade declined 24.6 billion from the previous fiscal year-end, to 153.1 billion. With respect to noncurrent assets, property, plant and equipment decreased 11.7 billion from the previous fiscal year-end, to 193.3 billion, as the result of overall progress in depreciation, which offset an increase resulting from the acquisition of buildings, machinery, and equipment in the Optics Business. Also, intangible assets were down 8.9 billion from the previous fiscal year-end, to 90.1 billion, primarily because of the amortization of goodwill and other intangible assets. Investments and other assets declined 3.4 billion from the previous fiscal year-end, to 68.9 billion, mainly because of a decrease of 1.0 billion in the mark-to-market evaluation of investment securities as a result of stock price decline, in addition to a decline of 2.2 billion in deferred tax assets. Liabilities at the end of the third quarter of the consolidated fiscal year under review increased 4.7 billion (1.1%) from the previous fiscal year-end, to 449.7 billion (52.4% to total assets). Notes and accounts payable-trade, provision for bonuses and accrued expenses declined 7.4 billion, 5.4 billion and 2.0 billion, respectively, from the previous fiscal year-end. Provision for retirement benefits also fell 4.4 billion from the previous fiscal year-end, partly because of the exceptional contribution recorded in the first quarter of the fiscal year under review. Interest-bearing debt (a sum of short-term loans payable, long-term loans payable and bonds payable) rose 26.4 billion to 223.8 billion, reflecting the issuance of bonds in the third quarter of the consolidated fiscal year under review. Net assets at the end of the third quarter of the consolidated fiscal year under review were down 12.5 billion (3.0%) from the previous fiscal year-end, to 408.1 billion (47.6% to total assets). Retained earnings increased 2.7 billion from the previous fiscal year-end, to 196.5 billion, as net income of 10.7 billion posted for the first three quarters of the fiscal year under review outweighed 7.9 billion for dividends. Valuation and translation adjustments declined 15.4 billion from the previous fiscal year-end, attributable to a decrease in the foreign currency translation adjustment, reflecting a stronger yen, mainly against the U.S. dollar and the euro. As a result, net assets per share at the end of the third quarter of the consolidated fiscal year under review stood at 767.43. The equity ratio fell 1.0 points from the previous fiscal year-end, to 47.4%.

Cash Flows

[Billions of yen]
3Q Mar/2011 Cash flows from operating activities Cash flows from investing activities Total (Free cash flow)

3Q Mar/2010

Increase (Decrease)

39.4 (33.7) 5.7 22.0

88.5 (30.7) 57.7 (37.1)

(49.0) (2.9) (51.9) 59.1

Cash flows from financing activities
During the first three quarters of the consolidated fiscal year under review, net cash provided by operating activities was 39.4 billion, while net cash used in investing activities, mainly associated with capital investment, totaled 33.7 billion. As a result, free cash flow (the sum of operating and investing activities) was an inflow of 5.7 billion. Net cash provided by financing activities was 22.0 billion. In addition, exchange rate changes had an effect of 0.5 billion on cash and cash equivalents. As a result, cash and cash equivalents at the end of the third quarter of the consolidated fiscal year under review stood at 192.4 billion, up 28.3 billion from the previous fiscal year-end. The details of cash flows associated with each activity during the consolidated first three quarters of the fiscal year under review are as follows. Cash flows from operating activities Net cash provided by operating activities reached 39.4 billion (compared with 88.5 billion in the same period in the previous consolidated fiscal year). Although the Group reported income before income taxes and minority interests of 16.2 billion, and depreciation and amortization of 41.1 billion, these amounts were partly offset by a fall of 5.3 billion in the provision for bonuses, a decline of 4.5 billion in the provision for retirement benefits, reflecting the exceptional contribution recorded in the first quarter of the fiscal year under review, a decrease of 3.4 billion in working capital, and the payment of 6.3 billion in income taxes. Cash flows from investing activities Net cash used in investing activities was 33.7 billion (compared with 30.7 billion in the same period in the previous consolidated fiscal year). Cash of 28.0 billion was used for investments in molding for new products in the Business Technologies Business and in the acquisition of property, plant and equipment relating to the reinforcement of production capacities in the Optics Business, our strategic business. Other cash outflow includes 2.1 billion for the acquisition of the shares of subsidiaries for the acquisition of All Covered Inc. in the Business Technologies Business. As a result, free cash flow (the sum of operating and investing activities) was an inflow of 5.7 billion (an inflow of 57.7 billion in the same period of the previous fiscal year). Cash flows from financing activities Net cash provided by financing activities was 22.0 billion (compared with an outflow of 37.1 billion in the same period of the previous fiscal year), mainly reflecting an inflow of 30.0 billion as a result of the issuance of bonds, offsetting 7.8 billion for dividends. (Note) Amounts mentioned above do not include consumption taxes.

3. Outlook for the Fiscal Year Ending March 31, 2011
Taking into account operating results for the first three quarters of the consolidated fiscal year under review, the sales trend, impact of the fluctuations of prices in the recent months in the Business Technologies Business, the effects of customers production adjustments in the Optics Business, and other changes in the business environment from the time the previous forecasts were made, the Company has reviewed the full-year forecasts it announced on October 28, 2010. Consequently, it has decided to revise the forecasts as follows. With respect to the assumption of foreign exchange rates for the fourth quarter of the consolidated fiscal year under review, on which the above revision is based, the Company has assumed 85 against the U.S. dollar, and 110 against the euro.
Outlook for the Fiscal Year Ending March 31, 2011 (From April 1, 2010 to March 31, 2011)
Net Sales Previous forecast (A) Revised forecast (B) Increase (Decrease) (B-A) Percent Change (%) (Ref.) Fiscal year ended March 31, 2010
Operating Income Ordinary Income

Net Income

Net Income Per Share
800.0 780.0 (20.0) -2.5 804.4
50.0 45.0 (5.0) -10.0 43.9
43.0 38.0 (5.0) -11.6 40.8

20.0 20.0

37.72 yen 37.72 yen

31.93 yen

Note: The above operating performance forecasts are based on future-related suppositions, outlooks, and plans at the time this report was released, and they involve risks and uncertainties. It should be noted that actual results may differ significantly from these forecasts due to various important factors, such as changes in economic conditions, market trends, and currency exchange rates. Figures in qualitative information sections given as billions of yen have been rounded off by discarding figures less than one billion yen.

4. Others

(1) Changes in the state of material subsidiaries during the period (Changes regarding specific companies accompanying changes in the scope of consolidation): None (2) Adoption of simplified accounting methods and/or special accounting treatment for the quarterly consolidated financial statements I. Simplified accounting methods Method for calculating the estimated reserve for general accounts receivable In calculating the estimated reserve for general accounts receivable at the end of the third quarter, as noteworthy changes in the bad debt rate are not recognized, the rate at the end of the previous fiscal year is employed. Method for assessing the value of inventories In calculating the value of inventories at the end of the third quarter of the fiscal year under review, onsite stocktaking is omitted. Reasonable calculation methods based on the results of onsite stocktaking conducted at the end of the second quarter of the fiscal year under review are used. Only for those inventories that are clearly losing their capacity to contribute to profitability, the accounting method employed is to estimate their net sale value and reduce their book value to the net sale value level. Method for calculating the deferred tax assets and liabilities In judging the possibility of recovering deferred tax assets, as severe and major changes in the operating environment and major temporary differences following the close of the previous consolidated fiscal year are not recognized, the future business forecasts and tax planning documents that were used for making such judgments related to the previous fiscal year are used. II. Special accounting treatment used in preparation of the quarterly consolidated financial statements Calculation of Tax Expenses The effective tax rate on income before income tax for the consolidated fiscal year after the application of tax effect accounting is rationally estimated, and that estimated rate is applied to net income for the quarterly period to calculate estimated tax expenses. In addition, adjustments of income tax are included in income taxes.

March 31, 2010

85,533 177,720 13,993 79,000 98,263 19,085 7,639 12,720 -4,703 489,253
66,708 52,782 22,026 34,16,901 11,952 205,057 71,936 27,137 99,074 22,3,353 35,304 12,375 -815 72,411 376,544 865,797
December 31, 2010 Liabilities Current liabilities Notes and accounts payable-trade Short-term loans payable Current portion of long-term loans payable Accounts payable-other Accrued expenses Income taxes payable Provision for bonuses Provision for directors' bonuses Provision for product warranties Provision for loss on business liquidation Notes payable-facilities Asset retirement obligations Other Total current liabilities Noncurrent liabilities Bonds payable Long-term loans payable Deferred tax liabilities for land revaluation Provision for retirement benefits Provision for directors' retirement benefits Asset retirement obligations Other Total noncurrent liabilities Total liabilities Net assets Shareholders' equity Capital stock Capital surplus Retained earnings Treasury stock Total shareholders' equity Valuation and translation adjustments Valuation difference on available-for-sale securities Deferred gains or losses on hedges Foreign currency translation adjustment Total valuation and translation adjustments Subscription rights to shares Minority interests Total net assets Total liabilities and net assets -30,347 -29,655 408,198 857,930 37,519 204,140 196,576 -1,673 436,562 70,000 60,547 3,733 49,983 6,402 191,781 449,732 75,703 64,747 28,508 32,557 22,853 3,936 5,1,204 3,607 1,17,903 257,950
83,118 58,231 27,501 30,536 24,882 2,488 11,1,869 4,22,086 267,313 40,000 71,625 3,733 54,7,654 177,708 445,022
37,519 204,140 193,790 -1,743 433,33 -14,947 -14,622 420,775 865,797
(2) Consolidated Quarterly Statements of Income
Nine months ended December 31, 2009 and 2010
Apr-Dec, 2009 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Dividends income Equity in earnings of affiliates Other Total non-operating income Non-operating expenses Interest expenses Equity in losses of affiliates Foreign exchange losses Other Total non-operating expenses Ordinary income Extraordinary income Gain on sales of noncurrent assets Gain on sales of investment securities Reversal of provision for loss on business liquidation Other extraordinary income of foreign subsidiaries Total extraordinary income Extraordinary loss Loss on sales and retirement of noncurrent assets Loss on sales of investment securities Loss on valuation of investment securities Impairment loss Business structure improvement expenses Loss on adjustment for changes of accounting standard for asset retirement obligations Total extraordinary losses Income before income taxes and minority interests Income taxes Income before minority interests Minority interests in income Net income 2,1,216 4,264 17,559 8,9,598 2,688 2,243 3,846 6,859 19,135 1,3,337 4,791 588,731 330,093 258,638 237,434 21,203

Apr-Dec, 2010

16,259 41,6,327 -1,313 2,295 1,170 1,026 -5,349 -4,552 -1,107 6,105 -16,536 6,940 -3,931 -3,004 2,618 1,406 -481 -2,290 46,781 1,347 -2,280 -6,391 39,457 -28,-3,-2,114 ----33,701
Apr-Dec, 2009 Net cash provided by (used in) financing activities Net increase (decrease) in short-term loans payable Proceeds from long-term loans payable Repayment of long-term loans payable Proceeds from issuance of bonds Redemption of bonds Repayments of lease obligations Proceeds from sales of treasury stock Purchase of treasury stock Cash dividends paid Proceeds from stock issuance to minority shareholders Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period -127 16,097 -12,293 -30,000 -1,-77 -9,128 -37,104 1,876 22,500 133,727 156,228
11,091 -10,057 30,000 -1,-71 -7,22,28,326 164,146 192,472
(4) Notes Regarding Going Concern Assumptions

(5) Segment Information

Business Segment
[Millions of yen] Business Technologies Optics Medical and Graphic Sensing Other Total Eliminations and Corporate Consolidated
Three months to December 31, 2009 (From October 1, 2009 to December 31, 2009)
Sales External Intersegment Total Operating expenses Operating income (loss) 133,134,921 124,734 10,186 32,32,389 28,214 4,174 23,23,752 24,005 (253) 1,1,904 1,943 (39) 4,108 11,353 15,462 14,293 1,168 195,390 13,038 208,429 193,192 15,237 (13,038) (13,038) (9,845) (3,192) 195,390 195,390 183,346 12,044
Nine months to December 31, 2009 (From April 1, 2009 to December 31, 2009)
Business Technologies Optics Medical and Graphic Sensing Other Total Eliminations and Corporate
[Millions of yen] Consolidated
Sales External Intersegment Total Operating expenses Operating income (loss) 393,915 2,545 396,461 378,385 18,075 102,103,213 92,919 10,294 76,426 1,182 77,609 76,069 1,540 4,5,398 5,813 (415) 11,062 33,812 44,875 42,416 2,458 588,731 38,825 627,557 595,604 31,953 (38,825) (38,825) (28,075) (10,749) 588,731 588,731 567,528 21,203
Notes: 1. Business classification is based on similarity of product type and market. The Groups operations are classified into the five segments of Business Technologies, Optics, Medical and Graphic Imaging, Sensing, and other businesses. 2. Principal products in business segments Business Segment Business Technologies Optics Medical and Graphic Imaging Sensing Other businesses MFPs, printers, etc. Optical devices, electronics materials, etc. Medical products, graphic imaging products, etc. Industrial-use and medical-use measuring instruments, etc Products other than the above Principal Products

3. Operating expenses not able to be properly allocated that are included in Eliminations and Corporate are principally R&D expenses incurred by the Company and expenses associated with head office functions. Such expenses amounted to 6,974 million and 21,916 million for the October-December and the April-December terms respectively.

Geographical Segment

Three months to December 31, 2009 (From October 1, 2009 to December 31, 2009) [Millions of yen]
Japan North America Europe Asia and Other Total Eliminations and Corporation Consolidated
Sales External Intersegment Total Operating expenses Operating income (loss) 87,453 64,524 151,978 138,582 13,395 41,41,608 40,53,54,366 52,691 1,675 12,959 42,219 55,179 52,048 3,130 195,390 107,741 303,132 283,949 19,183 (107,741) (107,741) (100,602) (7,139) 195,390 195,390 183,346 12,044
Nine months to December 31, 2009 (From April 1, 2009 to December 31, 2009) [Millions of yen]
Sales External Intersegment Total Operating expenses Operating income (loss) 271,102 164,479 435,581 409,607 25,973 127,670 1,541 129,212 130,339 (1,127) 152,923 1,047 153,970 149,284 4,686 37,034 116,972 154,007 145,998 8,008 588,731 284,040 872,772 835,230 37,541 (284,040) (284,040) (267,701) (16,338) 588,731 588,731 567,528 21,203
Notes: 1. Countries and territories are classified based on geographical proximity. 2. Major countries or areas other than Japan are as follows: North America. U.S.A. and Canada Europe.. Germany, France and U.K. Asia and Other.. Australia, China and Singapore 3. Operating expenses not able to be properly allocated that are included in Eliminations and Corporate are principally R&D expenses incurred by the Company and expenses associated with head office functions. Such expenses amounted to 6,974 million and 21,916 million for the October-December and the April-December terms respectively.

Overseas Sales

Three months to December 31, 2009 (From October 2009 to December 31, 2009) [Millions of yen]
North America Europe Asia and Other Total
Overseas sales Consolidated sales Overseas sales as a percentage of consolidated sales

42,674 21.8 %

60,203 30.8 %

40,808 20.9 %

143,685 195,390 73.5 %
North America Europe Asia and Other

128,993 21.9 %

169,751 28.9 %

123,166 20.9 %

421,911 588,731 71.7 %
Notes: 1. Countries and territories are classified based on geographical proximity. 2. Major countries or areas are as follows: North America. U.S.A. and Canada Europe.. Germany, France and U.K. Asia and Other.. Australia, China and Singapore 3. Overseas sales are the Company and consolidated subsidiary sales in countries or regions outside of Japan.

[4] I.

Segment Information Summary of Reporting Segments
Nine months from April 1, 2010 to December 31, 2010 and three months from October 1, 2010 to December 31, 2010
The Companys reportable segments are components of the Company about which separate financial information is available that is evaluated regularly by the management in deciding how to allocate resources and in assessing performance. The Company has business companies for different products and services in Japan, and each business company draws up comprehensive domestic and overseas strategies for their products and services, and conduct business activities accordingly. Consequently, the Company is made up of segments for different products and services with a business company at the center of each and has three reportable segments: Business Technologies, Optics and Healthcare. Products in the Business Technologies segment include MFPs, printers, production printing equipment and related supplies, products in the Optics segment include optical devices and electronic materials, while products in the Healthcare segment include medical products. In addition, the changes of the reportable segments and significant changes in the main products and the types of services of the reportable segments are presented in. Matters associated with changes in reportable segments.
II. Information about Segment Sales and Income
Nine months to December 31, 2010 (From April 1, 2010 to December 31, 2010)
[Millions of yen] Reportable segments Business Technologies Optics Healthcare*2 Total Other*1 Total
Sales External Intersegment Total Operating income 396,340 2,542 398,883 25,988 99,100,62,514 1,087 63,558,262 4,280 562,543 36,625 17,017 37,736 54,754 3,699 575,280 42,016 617,297 40,324
Three months to December 31, 2010 (From October 1, 2010 to December 31, 2010)
[Millions of yen] Reportable segments Business Technologies Optics Healthcare*2 Total Other* Total

Sales External Intersegment Total Operating income 130,130,817 6,393 30,30,538 2,051 17,17,178,137 1,205 179,343 8,456 5,317 10,900 16,217 1,217 183,455 12,105 195,561 9,673
Note: 1. Other consists of business segments not included in reporting segments such as Sensing Business and Industrial Inkjet Business. 2. In the consolidated fiscal year under review, the segment title of the Medical & Graphic Imaging Business that was used until the first half has been changed to the Healthcare Business from the third quarter. The results of the Healthcare Business for the first three quarters include those of the Medical & Graphic Imaging Business for the first half.
III. Difference between the total of the reporting segments measures of profit or loss and income according to quarterly consolidated statements of income, and the main components of the difference (matters related to adjustment of difference)
Item Total operating income of reporting segments Operating income categorized in Other Intersegment - eliminations Corporate expenses Operating income reported on quarterly statements of income
Amount 36,625 3,699 (3,923) (8,149) 28,251
Amount 8,456 1,217 (1,230) (2,797) 5,645
Note: Corporate expenses are mainly general administration expenses and R&D expenses that do not belong to any reporting segment.
. Matters associated with changes in reportable segments
To further strengthen the competitiveness and operations of the production printing field, since the third quarter of the consolidated fiscal year under review, the Group has restructured its operations by integrating the businesses associated with commercial printing and digital printing into the Business Technologies Business. As a result, it has changed the method by which it categorizes its reportable segments, and integrated the Graphic Imaging Business in the Medical & Graphic Imaging Business into the Business Technologies Business. As a result of restructuring as described above, the main products and the types of services of the Medical & Graphic Imaging Business have changed from the production and sale of medical, printing, and other related products to the production and sale of medical and other related products. Consequently, the title of the reportable segment has changed from the Medical & Graphic Imaging Business to the Healthcare Business. Additional Information Starting from the first quarter of the fiscal year under review, the Company adopted the Accounting Standard for Disclosures about Segments of an Enterprise and Related information (ASBJ Statement No. 17, March 27, 2009) and the Guidance on the Accounting Standard for Disclosures about Segments of an Enterprise and Related information (ASBJ Guidance No. 20, March 21, 2008).

(6) Notes to any Significant Changes in Shareholders Equity