Sustainable Finance

Konica Minolta engages in sustainable finance that links financing terms with sustainability goals.
We have formulated the Sustainability-Linked Bond Framework, which sets out the rules for financing linked to sustainability targets and business activities. This framework has been formulated in compliance with the Sustainability-Linked Bond Principles 2024 set by the International Capital Market Association (ICMA) and the Ministry of the Environment's Green Bond and Sustainability-Linked Bond Guidelines, 2024 Edition.

Details of bond issuance and fundraising based on our framework are as follows. Moving forward, we will effectively utilize the funds raised for the sustainable growth of our company.

Name of Corporate Bonds	Konica Minolta, Inc. 10th Unsecured Bond (with inter-bond pari passu clause) (Sustainability-Linked Bond)	Konica Minolta, Inc. 11th Unsecured Bond (with inter-bond pari passu clause) (Sustainability-Linked Bond)
Issuance term	5 years	10 years
Issuance amount	13.5 billion yen	10.0 billion yen
Interest rate	2.513%	3.236%
Date of Condition Determination	March 5, 2026	March 5, 2026
Issue Date	March 11, 2026	March 11, 2026
Redemption Date	March 11, 2031	March 11, 2036
KPI	Greenhouse gas emissions reduction rate in Scope 1 and Scope 2 (%) (Base year: FY2018)
SPT*1	The targets for each fiscal year that are consistent with reducing absolute Scope 1 and Scope 2 GHG emissions 51% by FY2030 from a FY2018 base year
	46.8% (FY2029 target)	51.0% (FY2030 target)
Determination Date	End of October 2030	End of October 2031
Bond Characteristics	The characteristics of the Sustainability-Linked Bonds issued under this framework will change depending on the achievement status of the SPT. Suppose a third-party verified report stating that the SPT has been achieved is not received by the determination date. In that case, donations in an amount corresponding to the percentage of the amount raised through Sustainability-Linked Bond issuance, as specified in the statutory disclosure documents will be made to qualified donation recipients by the reimbursement date. Qualified donation recipients are public interest incorporated associations, public interest foundations, general foundations, international organizations, local government-certified non-profit organizations, local governments, national and public university corporations, school corporations, research institutions, and similar organizations related to the improvement of SPT that have not been achieved. The recipients of the donations will be determined with the necessary approvals prior to the reimbursement date.
	An equivalent to 0.1% of the bond issuance amount	An equivalent to 0.1% of the bond issuance amount
Lead underwriters	SMBC Nikko Securities Inc., Daiwa Securities Co., Ltd., Nomura Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
Structuring Agent*2	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., SMBC Nikko Securities Inc.
External Evaluation	Japan Credit Rating Agency, Ltd. (JCR)

• *1SPT: Sustainability Performance Target
• *2Structuring Agent: Agents that provide advice on establishing the Sustainability-Linked Bond Framework and obtaining a second-party opinion.

KPI: Greenhouse gas emissions reduction rate in Scope 1 and Scope 2 (compared to FY2018) SPT: Annual targets aligned with a 51% reduction in Scope 1 and Scope 2 greenhouse gas emissions by FY2030 compared to FY2018 levels. (FY2029: 46.8%, FY2030: 51.0%)

Greenhouse Gas Emissions (Unit: t-CO2e)	FY2018 (Base year)	FY2022	FY2023	FY2024	FY2025
Scope 1	169,282	150,865	147,168	147,903	146,339
Scope 2 (Market-based)	160,895	123,684	110,012	105,694	60,273
Total	330,177	274,549	257,180	253,597	206,612
Reduction Rate	―	17%	22%	23%	37%