News Releases

Notice regarding the transfer of non-current assets

June 27, 2018

To whom it may concern,

Company Name: Konica Minolta, Inc.
Representative: Shoei Yamana, President and CEO
Stock Exchange Listing: Tokyo (First Section)
Local Securities Code Number: 4902
Contact: Mami Iwamoto, General Manager, Corporate Branding Division
Tel: (81) 3-6250-2100

On June 27, 2018, Konica Minolta, Inc. (the "Company") decided to carry out the transfer of non-current assets and expects there to be a gain on sale of non-current assets. Accordingly, the Company hereby notifies you of the following.

1. Reason for transfer

The Company has decided to transfer the following assets that it holds in order to enhance asset efficiency and strengthen its financial structure by effectively utilizing resources.
After said transfer of assets, the Group's place of business will not be relocated as a result of this transfer due to a lease agreement with the transferee that will allow the Group to continue using the asset.

2. Details of transferred asset

Details and location of asset Gain on transfer Current state
Land 93,014.25 m2 13.9 billion yen Tokyo Site (Hachioji) - Land
Location 2970-1 Ishikawa-machi, Hachioji-shi, Tokyo,2970-9 Ishikawa-machi, Hachioji-shi, Tokyo and 2970-10 Ishikawa-machi, Hachioji-shi, Tokyo

Note: The Company refrains from disclosing the transfer price and book value due to confidentiality obligations to the transferee.

3. Summary of transferee

Company Name Sumitomo Mitsui Finance and Leasing Company, Limited
Location 1-3-2, Marunouchi, Chiyoda-ku, Tokyo
Representative Masaki Tachibana, President
Business Activities 1. Leasing and installment sales of a variety of equipment and machinery
2. Loans and factoring
3. Other
4. Services relating to above-mentioned businesses
Paid-in Capital ¥15.0 billion
Established February 1963
Net assets ¥467.4 billion (As of March 31, 2017)
Total assets ¥3,617.7 billion (As of March 31, 2017)
Major shareholders and ratio of shares held
(excluding treasury stock)
Sumitomo Mitsui Financial Group, Inc.
SUMITOMO CORPORATION
60%
40%
Relationships with the Company Capital relationships No special matters to disclose.
Personal relationships No special matters to disclose.
Business relationships Lease transactions with the Company.
Relationship with related parties No special matters to disclose.

4. Transfer schedule

(1) Date of decision made by Representative Director June 27, 2018
(2) Date of conclusion of agreement June 27, 2018
(3) Delivery date June 28, 2018 2970-9 Ishikawa-machi, Hachioji-shi, Tokyo
September, 2018 (planned) 2970-1 Ishikawa-machi, Hachioji-shi, Tokyo
March, 2019 (planned) 2970-10 Ishikawa-machi, Hachioji-shi, Tokyo

The Company progressed with negotiations related to said transfer after it was resolved at the Board of Directors' Meeting held on June 18, 2018, to delegate, to the representative director, the authority regarding the determination of the transfer period for said transfer, the execution of negotiations with the transferee, and the conclusion of the agreement. In accordance with the aforementioned authorization of the Board of Directors, this transfer agreement was concluded following a decision made by the representative director.

5. Future outlook

The transfer of this non-current asset is expected to result in the recording of gain on sale of non-current assets of ¥3.2 billion in the first three months of the fiscal year ending March 31, 2019, and of ¥10.7 billion in the nine months from July 1, 2018, to March 31, 2019. Also, any impact on the results of the current period is currently being examined, including costs related to streamlining other assets. In the event that a revision is necessary, the Company will disclose such information promptly.

(Reference information)
The Company will also transfer the following assets that it holds. Although this information meets the criteria for immateriality, considering its impact on the financial results for the three months ended June 30, 2019, the Company determined to also notify you of this information. The Company plans to also record the gain from the transfer of the following asset as a gain on sale of non-current assets.

i) Details of transferred asset

Details and location of assets Gain on transfer Current state
Land 45,281.82m2 6.2 billion yen Tokyo Site (Hino) North-East Area - Land
Location 1-1 Sakura-machi, Hino-shi, Tokyo and
5-1-1 Tamadaira, Hino-shi, Tokyo

Note: The Company refrains from disclosing the transfer price and book value due to confidentiality obligations to the transferee.

ii) Summary of transferee
The transferee is the same as for Tokyo Site (Hachioji) - Land.

iii) Delivery date
June 28, 2018