Value from Innovation
At Fujifilm, we are continuously innovating—creating new technologies, products and services that inspireand excite people everywhere.
Our goal is to empower the potentialand expand the horizons of tomorrow’sbusinesses and lifestyles.

“Chemical Industry Competitiveness Ranking 2022”
conducted by Patent Result Co., Ltd.

1stin the chemical industry
Ranked 1st for 12 consecutive years
since 2012
Worldwide brand recognition(According to a survey by Fujifilm)

95%

Cumulative number of visitors to
the FUJIFILM SQUARE, multipurpose showroomOver

8 million visitorssince opening

1,600

More thanphoto exhibitions held
1

FUJIFILM Holdings Corporation

International ElectrotechnicalCommission (IEC)

Thomas EdisonAward

Red Dot Design Award 2023

27 Products and Services were Awarded

Including two Best of the Best awards
23 items awarded in Product Design categories
Four items awarded in Brands &Communication Design categories

Open Innovation Hub *Cumulative number of visitors and corporate visitors

Number of open innovations with companies andorganizations in Japan and other countries/regions

26,000 participants
5,000 companies

300 cases(As of March 31, 2023)*Please refer to p.45 for details.

in fiscal 2022

Period of Coverage
The financial and non-financial data are aggregated from fiscal 2022 (April 2022 to March 2023).
Some activity details on or after April 2023 are included.

Position of the Integrated Report
統合報告書の位置づけ
Value Creation Story

Integrated Report
Investor Relations○ Earnings Presentations○ Earnings Release○ Securities Report, etc.

Sustainability/ESG Information○ Sustainability Report○ Corporate Governance Report○ Sustainability Website

Comprehensiveness

Organizations Covered in the Report
The Fujifilm Group includes FUJIFILM Holdings and all consolidated companies.
Major consolidated companies are shown on our website: https://holdings.fujifilm.
com/ja/about/group

FUJIFILM Holdings Corporation Corporate Site

Referenced Standards and Guidelines

Investor Relations

IFRS Foundation “International Integrated Reporting Framework” / GRI“Sustainability Reporting Standards” / SASB “Sustainability AccountingStandards” / METI “Value Creation Guidance 2.0” / Ministry of theEnvironment “Environmental Reporting Guidelines” (2018 Edition)

Sustainability Reporthttps://holdings.fujifilm.com/ja

https://ir.fujifilm.com/ja/investors.html

https://holdings.fujifilm.com/ja/sustainability/reportNon-financial

This Integrated Report contains information on the Fujifilm Group’s corporate activities,
including financial and non-financial information that is of particular importanceto shareholders and other investors such as stories of value creation centered on
innovation. Its basic concept is to communicate and share the Fujifilm Group’s future
vision with stakeholders. Together with the Sustainability Report, this Integrated
Report introduces the Fujifilm Group’s efforts to achieve sustainable growth.

Financial

Editorial Policy

About theIntegrated
Report Front
Cover

The Fujifilm Group is developing its businesswith the mission of creating change on its
own and transforming society into a better
place by integrating diverse people, wisdom
and technology. With the concept of ESG(Environmental, Social and Corporate
Governance) represented by “trust” and“environmental conservation” taking rootin the corporate culture, the themes of“people” representing customers,
employees, shareholders, investors and otherstakeholders; “dynamism” to continue
creating innovations; and “nature”
representing the environment are expressed.
INTEGRATED REPORT 2023

2

CONTENTS
Chapter

01

Chapter02

Chapter

03

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature: Co-Creating
Value with Stakeholders

7

Message from the CEO

29

Review of Past Medium-Term Management Plans

63

Meeting Stakeholders’ Expectations

13

Evolution of Innovation

31

Financial Capital Strategy (Message from the CFO)

64

Shareholders and Investors

16

The Fujifilm Group’s Proprietary Technologies

35

Strategies by Business Segment

65

Community

17

Value Creation Process68

Government (Local Governments)

35

Healthcare

18	Frameworks to Continue to Generate Innovationand Sources of Value

39

Materials

19

41

Business Innovation

43

Imaging

The Fujifilm Group’s Future Vision

21	Medium- to Long-Term Risks/Opportunities andMateriality
23

Overview of Our Businesses

25	Financial Highlights

45

R&D Strategies

47

DX Strategy

50Intellectual Property Strategy
51	Discussion between General Managers of theIntellectual Property, Medical System
Research & Development and Design Divisions

26	Non-Financial Highlights

56	Human Resources Strategy (Message from
General Manager of Human Resources Division)

Chapter04

Chapter05

Chapter

06

Sustainability

Corporate Governance

Data Section

71

83

Discussion on Governance

102

Financial Analysis and Review

86

Messages from Outside Directors

103

Consolidated Financial Statements, etc.

87

Corporate Governance107

11-Year Financial Summary

Initiatives for Realizing a Sustainable Society
72

Environment

75	Diversity, Motivated Work Style, andOccupational Health and Safety
78

Human Rights
98

96

Risk Management

109

Non-Financial Data for Past 5 Years

97

Stakeholder Engagement110

Appraisals and Awards

111

Corporate Overview

Management Structure112	Independent Assurance/Assurance by the
Officer in Charge

3

FUJIFILM Holdings Corporation

Themes of the Integrated Report 2023
Since its founding in 1934, the Fujifilm Group has continued to create innovations that meet the changing needs of changing times and society, and has transformed its business portfolio.
We have worked in various ways to create value, aiming to continually contribute to solving social issues and realizing a sustainable society through our business.
In the Integrated Report 2023, we have enhanced our information disclosures from the following perspectives, focusing on the value creation story centered on innovation.

Mechanisms for Continuing to Generate Innovation
In the chapter “The Fujifilm Group’s Value Creation,” we summarize how the fundamental technologies
cultivated in the photographic film business since our founding have evolved into core technologies thatcreate value for the future and how sources of innovation such as human resources and technologicalcapabilities have contributed to business development and sustainable growth. In the chapter “Strategy
and Resource Allocation,” we summarize the Company-wide strategy to continue generating innovationand the approach to resource allocation to realize the strategy by function, including financial and capital
strategies, R&D, intellectual property, DX and human capital. In addition, through a three-way discussion
among division heads, we introduce examples of cross-organizational utilization of intellectual property
under the theme of product development in the medical systems business.

Financial Capital Strategy (Message from the CFO)

The CFO message describes the progress of the VISION2023 Medium-Term Management
Plan, our approach to capital efficiency and capital structure, and our shareholder return policy.

pp.51–55

NEW

Discussion between General Managers of the Intellectual Property,
Medical System Research & Development and Design Divisions

This special feature provides an in-depth look at the Fujifilm Group’s efforts to continue todrive further innovation with a solid intellectual property strategy.

pp.56–61

Main Contents

pp.63–69

NEW

Special Feature: Co-creating Value with Stakeholders

Message from the CEO

Teiichi Goto, CEO, offers a review of business activities in fiscal 2022, when we achieved the sales and profit
targets of our VISION2023 Medium-Term Management Plan one year ahead of schedule by turning risks into
opportunities and taking prompt and appropriate preemptive action, as well as a look at the challenges weface in the final year of the plan and the CEO’s thoughts on the realization of a sustainable society.

pp.31–34

We aim to provide value for the future while co-creating with various stakeholders. In
the Special Feature “Co-creating Value with Stakeholders,” we summarize how the Fujifilm
Group provides society with solutions and impact through its business activities in response
to social issues and the expectations and requests of stakeholders.

Along with a look at how we respond to stakeholder expectations, we introduce our value
co-creation efforts with shareholders, investors, local communities and government (local
government).

Main Contents

pp.7–12

Co-creating Value with Stakeholders

Human Resources Strategy (Message from General Manager of Human Resources Division)

Through an interview with the General Manager of the Human Resources Division, thissection summarizes human resource strategies to foster human resources and a culture inwhich each employee sees changes as opportunities for growth and continues to create change,
as well as the results of an engagement survey conducted for all Fujifilm Group employees.

Corporate GovernanceIn the chapter “Corporate Governance,” we explain our efforts to further strengthen
governance through a discussion between the Chairman of the Board of Directors and an
outside director, and share messages from various outside directors.
Main Contents

pp.83–85

NEW

Discussion on Governance

Under the theme of “Aiming for an even higher level of corporate governance to carry on
the corporate culture,” a two-way discussion was held between Kenji Sukeno, Chairman and
Chairman of the Board of Directors, and Kunitaro Kitamura, Outside Director and chairman of
the Nomination and Remuneration Advisory Committee. The discussion focuses on the role of
the Board of Directors and the pair’s thoughts on how to further improve its effectiveness.

pp.89–90

Board of Directors and Audit & Supervisory Board Skills Matrix

The skills matrix, which was revised in fiscal 2022, explains the reasons for the selectionof each skill item, as well as the approaches and processes behind their creation.

INTEGRATED REPORT 2023

4

The Fujifilm Group’s Commitment
Corporate Philosophy

VisionWe will use leading-edge, proprietary technologies to provide top-quality products

Anchored by an open, fair and clear corporate culture and with leading-edge,

and services that contribute to the advancement of culture, science, technology andproprietary technologies, Fujifilm is determined to remain a leading company byindustry, as well as improved health and environmental protection in society. Our

boldly taking up the challenge of developing new products and creating new value.

overarching aim is to help enhance the quality of life of people worldwide.

Corporate Slogan

Value from Innovation
How We Act
Charter for Corporate Behavior

CSR Plan

Based on the following six principles, the Fujifilm Group respects human rights and maintains compliance with,
as well as respects, the spirit of all laws and international rules in its global business activities. Beyond this, wewill take proactive action toward the realization of a sustainable society through innovation, while taking into
account the impact of our activities.

1. A Trusted Company

2. Social Responsibility

3. Respect for Human Rights

4. Global Environmental Conservation

5. Vibrant Workplaces

6. Management of Various Crises

Code of Conduct
In all aspects of our corporate activities, we emphasize compliance and endeavor to create new value. If
compliance requirements conflict with business profits or the demands of third parties, we give priority tocompliance. An open, fair and clear corporate culture is the basis for all our activities.

• Respect for Human Rights• Fair Corporate Activities• Protection/Preservation of Corporate Assets and Information• Measures Related to Environmental Issues
5

FUJIFILM Holdings Corporation

How We Will Fulfill Our Commitment

Sustainable Value Plan 2030
With fiscal 2030 as its long-term goal, this plan lays the foundations of the Fujifilm Group’s business
management strategies for sustainable growth. In this plan, we have set targets in the four priority areas ofthe environment, health, daily life and work style, as well as in supply chain and governance, the basis of ourbusiness activities. These targets serve as guideposts toward our goal of contributing to the realization of asustainable society through the dual standpoints of resolving social issues through our business activities andconsidering society and the environment in our business processes.

Medium-Term Management Plan

VISION2023
In April 2021, the Fujifilm Group formulated a specific action plan to accelerate the growth of business mainly
in healthcare and advanced materials, aiming to achieve the goals set forth in the Sustainable Value Plan 2030.

01
Chapter

The Fujifilm Group’s
Value Creation
CONTENTS
7

Message from the CEO

13

Evolution of Innovation

16

The Fujifilm Group’s Proprietary Technologies

17

Value Creation Process

18

Frameworks to Continue to Generate Innovation and Sources of Value

19

The Fujifilm Group’s Future Vision

21

Medium- to Long-Term Risks/Opportunities and Materiality

23

Overview of Our Businesses

25

Financial Highlights

26

Non-Financial Highlights

INTEGRATED REPORT 2023

6

Message from the CEO

The source of our execution capability is
our “burning desire.”
We will continue embracing
the challenge of business transformation
by firmly planting the seeds
for “Creating the future of the Fujifilm Group.”

Teiichi Goto
President and CEO,
Representative Director
FUJIFILM Holdings Corporation

7

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

By increasing our speed and agility, we achieved the targets of
VISION2023 one year ahead of schedule. The ability of our frontline staff
to deliver results has become our corporate strength.
Fiscal 2022 in Review
In the year under review, the global economy remained

AI and other technologies to accelerate this cycle, we canbreak away from “industry paradigms” that are rooted in thesubconscious of individuals and the “inertia” that tends tounstable and uncertain due to geopolitical risks, continued

occur in large organizations. I believe that this sense of speed

inflation and other factors. The Fujifilm Group also faced awill help us achieve “swift differentiation,” which is the mostchallenging business environment, as it did in the previous

effective way to gain a competitive advantage.

fiscal year, affected by soaring resource and energy prices andStarting in my 30s, I spent 17 years in Vietnam, Singapore

tight supply–demand conditions for semiconductors and otherand China. During that time, I gained a wide range of businessmaterials. Despite the challenges, however, we posted record-

experience, which has been the foundation of my career sincehigh figures for both revenue and operating income. Moreover,then. One of the most memorable experiences was when I

we achieved the revenue and income targets of our medium-

was assigned to Vietnam, where I established an office byterm management plan, VISION2023, one year ahead ofmyself and even built a processing plant for photographic filmschedule.

and photographic paper. While stationed in Singapore, I was

I attribute these results to the persistent efforts of each andresponsible for sales and marketing of all Fujifilm businesses

every Fujifilm Group employee to resolve issues. Fiscal 2022

at the time, including photography, medical and printing-

was a year in which we gained ground as a company that canrelated businesses throughout Asia, including India,

deliver results by turning risks into opportunities and taking

Bangladesh, Indonesia and Pakistan. In addition, I worked toprompt and appropriate preemptive action. In 2000s, therapid shrinkage of the photographic film market caused theGroup to lose its core business and prompted it to change its
business structure. This experience gave us “speed” and“agility,” which will greatly help us enhance our corporate
value in the future. As we transformed our business structure,
we also strengthened our STPD (See-Think-Plan-Do) businesscycle, which begins with the collection and analysis of
information (See), followed by the identification of essential
issues (Think), the formulation of action plans (Plan) and theresolute implementation of those plans (Do). By deploying DX,

In front of the office I set up when
I was posted to Vietnam

INTEGRATED REPORT 2023

8

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

CEO Message

expand our medical business in China as the head of that

continued investing aggressively. In the three-year period ofbusiness. All the challenges I have taken on have shaped me

VISION2023, for example, we significantly increased thebuilding a state-of-the-art facility for making CMP slurry ininto the person I am today as I strengthened bonds withamount earmarked for capital investment, from ¥750 billion in

Kumamoto Prefecture, Japan. The aim in building the facility,

various people. At the time, however, strategies and plansthe original plan to ¥1,121.4 billion.

the first of its kind in Japan for the Company, is to stably

formulated on the business front lines were difficult toIn the Medical Systems business, we are actively working on

In the Electronic Materials business, we are currently

produce and supply high-quality materials under a global

understand correctly by people in the head office in Japan,

areas where we can use DX to improve the quality of medical

production system. Meanwhile, in May 2023 we announced

which was a long distance away. This sometimes slowed thecare. One example is the acquisition of the digital pathology

our decision to acquire the semiconductor-use high-purity

speed of our business activities. Since then, I have focused ondivision of Inspirata, Inc., a U.S. company that develops andprocess chemicals business of U.S.-based Entegris, Inc. forevolving and developing our business by seeing with my own

sells software for digital pathology diagnoses. This marked our

US$700 million (about ¥95 billion). This is our largest

eyes, using my sense of smell and understanding the key

full-scale entry into the digital pathology business.

acquisition deal since I became CEO in 2021. Our decisions to

aspects of our business based on the belief that “the truth lies

In the Life Sciences business (including the Bio CDMO

make these large investments were based on our convictionin the field.” As the COVID-19 pandemic has subsided, I havebusiness), we are expanding production capacity to meetthat the biopharmaceutical and semiconductor markets will

been visiting offices and customers around the world tostrong demand for biopharmaceuticals, with plans togrow faster in the medium to long term than we had assumed

engage in meaningful discussions. Since July 2022, I havecomplete a large-scale facility at our Denmark site by the end

when we formulated VISION2023. These decisions werevisited more than 30 business locations in 17 countries/

of fiscal 2023. We will also introduce new large-scale facilities

made after careful consideration of each market situation andregions. In the process, I have become more confident thanat our North Carolina site in fiscal 2025 and our Denmark site

after identifying winning opportunities to quickly address

ever in our strategy of leveraging the Healthcare andin fiscal 2026. In addition, we are constructing a new facility ingrowing demand and bolster earnings at an early stage. These

Advanced Materials segments to achieve growth of the Group.

Toyama Prefecture with the aim of starting operations at ourare the seeds that I planted for “Creating the future of the

To lay the groundwork for sustainable growth, we havefirst Japanese site.

Fujifilm Group,” my stated mission when I became CEO,which will lead to our next stage of growth.

Positioning of Fiscal 2023

I have focused on evolving and developing our business

Evolving into a “Profitable Company”

by seeing with my own eyes, using my sense of smellin the Lead-up to Fiscal 2030

and understanding the key aspects of our businessbased on the belief that“the truth lies in the field.”

Fiscal 2023, the final year of VISION2023, is also an
important year for formulating our next medium-term
management plan aimed at achieving our long-term CSR plan,
Sustainable Value Plan 2030 (SVP2030), ending in fiscal
2030. In fiscal 2030, we are targeting consolidated revenue ofmore than ¥3.5 trillion, of which the Healthcare business willaccount for ¥1.75 trillion, or roughly half. To achieve theselong-term targets, the Fujifilm Group needs to further improve

9

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

CEO Message

the earning power of each of its businesses. To this end, I willdeveloping and commercializing AI technology to support

manufacturing and supply system without slowing our

focus on further enhancing the “earning power” of each

workflow in the medical field. Using AI technology, forinvestment plans, including for the construction of new plants

business. Specifically, we will create high-value-added

example, we developed software that received Japan’s firstfor cutting-edge semiconductor materials in Taiwan andproducts and services and new business models and work topharmaceutical approval as a medical device to support

Europe.

improve productivity, with the aim of becoming a “profitableendoscopic diagnosis in the upper gastrointestinal tract area,

company” that continues growing and providing value towhich improves the efficiency of testing and the quality ofsociety through its business. In fiscal 2023, the final year

medical care. We will continue creating innovations that helpof VISION2023, we have raised our targets to record-highpeople maintain and improve their health.

figures: revenue of ¥2,950 billion, operating income of ¥290

Through these efforts, in the Medical Systems business we

Sustainability

Thoughts on Realizing SVP2030
to Create a Sustainable Society

billion and net income attributable to FUJIFILM Holdings ofare targeting revenue of ¥1 trillion and an operating margin¥225 billion. By broadly applying the technological capabilities

in the high 10% range in fiscal 2030. To this end, we must

cultivated over the years to all its businesses, the Fujifilm

achieve our interim revenue target of ¥700 billion in fiscal

wide range of issues head-on, such as climate changeGroup will help resolve social issues from various angles. As

2026.

mitigation, resource recycling and biodiversity conservation,a group, we are off to a good start in fiscal 2023 as each

The Bio CDMO business posted year-on-year revenue

To create a sustainable society, companies must tackle awhile emphasizing respect for human rights and responsible

business continues introducing highly competitive andgrowth in fiscal 2022. However, this business was impacted bysupply chain management. To realize SVP2030, with fiscal

differentiated new products and services to the market.

increased costs due to higher-than-expected inflation, which

2030 as the goal, we are advancing our business activities

In the Medical Systems business, we acquired theled to a year-on-year decline in income and thus presents afrom the two angles of “resolving social issues through ourdiagnostic imaging business of Hitachi, Ltd. in March 2021

challenge going forward. Our aim is to grow the Bio CDMO

business activities” and “reducing and considering negativeand relaunched it as FUJIFILM Healthcare. Since then, webusiness into a pillar of our Healthcare business by fiscal 2030.

impacts on society and the environment caused by ourhave taken various measures in rapid succession to maximize

To this end, we will first complete the expansion of API

business activities.” We have identified the Environment,Group synergies. For example, we increased synergies on the

manufacturing facilities and the construction of a new

Health, Daily Life, and Work Style as our four priority areas.

sales side through the integration of local subsidiaries in theformulation manufacturing line at our Denmark site by the end

Going forward, we will promote the growth of both social andUnited States, Asia–Pacific and Europe, and on the productof fiscal 2023 to strengthen our business foundation. We willdevelopment side with the launch of CT and ultrasoundalso aggressively invest in facilities in the United States anddiagnostic systems equipped with functions developed using

Europe to further strengthen our product development

Fujifilm’s AI technology. In fiscal 2023 (third year after theand contract manufacturing systems for various

acquisition) and fiscal 2024, we will reorganize Japanesebiopharmaceuticals, including antibody drugs, gene therapies

Group companies involved in business strategy planning, R&D,

and vaccines, while further accelerating the growth of our Bioand sales and maintenance services, which were previously

CDMO business.

dispersed among domestic Group companies. Our aim is to

In materials, our Electronic Materials business has beenmaximize synergies, accelerate business growth and further

affected by the softening semiconductor market, but weenhance the Group’s comprehensive strengths.

anticipate strong market growth in the medium- to long-term,

Under the REiLI brand utilizing our unique image processing
and AI technologies, we will further expand our business by

including for generative AI applications. To this end, we will
accelerate business growth by strengthening our global

Manufacturing facility under construction in Denmark

INTEGRATED REPORT 2023

10

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

CEO Message

economic value by utilizing digital technology to accomplish

Systems Division before assuming the position of CEO. The

screening center for Fujifilm Group employees, in April 2022.

our tasks. Of these, my top priorities are the Environment and

NURA centers assist with doctors’ diagnoses and provide

The center uses our state-of-the-art endoscopes, medical

Health.

health checkup services by utilizing Fujifilm’s medical

equipment (including for mammograms) and AI-based

With respect to the environment, we aim to achieve aequipment, featuring high-definition diagnostic images andmedical IT systems to provide Fujifilm Group employees withdecarbonized society by reducing CO2 emissions from thediagnostic imaging AI technology. We currently operate three

the opportunity to receive high-quality health checkups. Our

energy we use and from the entire life cycle of our products by

NURA centers in India, serving more than 12,000 people (as ofefforts to provide environments in which employees can work

50% in fiscal 2030 compared with fiscal 2019. For capitalAugust 31, 2023). In September 2023, we opened a NURA

vigorously both mentally and physically have been highly

investments and other decisions, we introduced an “Internal

center in Ulaanbaatar, Mongolia, and plan to open a new

evaluated by external sources. For example, FUJIFILM

Carbon Pricing System*” and achieved a 10% reduction in CO2

center in Hyderabad, India, in November. To expand into

Holdings was selected as a Health and Productivity Stock foremissions from in-house energy use in fiscal 2022 comparedSoutheast Asia, the Middle East and Africa, we will continue

the third consecutive year in a program run jointly by thewith fiscal 2019. Looking ahead, we will accelerate green

forming technology partnership agreements with local

Ministry of Economy, Trade and Industry and the Tokyo Stocktransformation (GX) via the newly established GX Committee,

companies in the countries involved in addition to developing

Exchange.

a subordinate organization of the ESG Committee, which I

our own business. By fiscal 2030, we will expand the number

chair. We will also use internal carbon pricing, which is basedof centers to 100 worldwide, mainly in emerging countries.

on the carbon price of the EU Emissions Trading Scheme

Our aim is to help people maintain and improve their health by(EU-ETS), in important aspects of our business activities, suchspreading the Japanese culture of regular health checkups andas capital investment and M&As. In some cases, investments

prevention measures to other countries.

in M&As and production capacity expansion might lead toCommitted to ending tuberculosis (TB), we are promoting

increased CO2 emissions as the projects are implemented.

the use of compact and lightweight portable X-ray equipment

Nevertheless, we will closely check to ensure that new cashthat enables TB screening in suburban and mountainous areas

generated by these investments can be earned at a level thatwithout electric power infrastructure. By visualizing the global

exceeds our internal standards over the medium- to long-

TB epidemic status using cloud computing based on data

term, even after subtracting the carbon price. At the samefrom TB screening conducted in each region, our vision is totime, we are developing measures that require investment,

help control TB in each country and region. To make thissuch as using electricity from renewable energy sources withhappen, we have started a project in India to combat TB in

an emphasis on scalability and developing innovative

collaboration with the government and academia. We willproduction processes that reduce energy consumption.

continue fulfilling our responsibility by providing distinctive* A system that promotes low-carbon business activities by allowing companies to set theirproducts and services that help eliminate medical disparities

own internal carbon prices, convert CO2 emissions into cost equivalents, quantify the
economic impact of increases or decreases in emissions and reflect this information in theirdecision-making processes.

In the area of health, our aim is to help improve access to

11

and maintain and improve the health of people around theworld.
Protecting the health of employees is another important

healthcare in emerging countries. One project is our NURA

strategic theme for the Fujifilm Group’s development. As part

health screening centers focusing on cancer screening. Iof this effort, we opened the Fujifilm Group Health Insurance

launched the first center as general manager of the Medical

Association’s “FUJIFILM Mediterrace Yokohama,” a health

FUJIFILM Holdings Corporation

The opening ceremony of NURA, held in Ulaanbaatar, Mongolia. (Fromleft to right) Hiroyuki Kobayashi, Ambassador Extraordinary andPlenipotentiary of Japan to Mongolia; Mohinder Pratap Singh,
Ambassador of India to Mongolia; Teiichi Goto; Baatarsaikhan Tsagaach,President of the Tavan Bogd Group; Vellakkat Niaz, FUJIFILM DKH LLP(NURA) Board Director

Please also watch the video introducing
NURA Mongolia(which includes scenes from inside NURA and the opening ceremony):

https://www.youtube.com/watch?v=MEHLoBZJEYU

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

CEO Message

Human and Intellectual Capital

Targeting Further Growth of
Employees and the Fujifilm GroupThe Fujifilm Group has achieved change and growth todate because of the “individual powers” of its highly

conducting various programs to develop DX and AI humancommunication with the community. Our businessresources. Using DX, we will dramatically boost employee

structure has undergone a major shift along with the

productivity while increasing the amount of time theychanging needs and values of society. Nevertheless, we will

spend creating products and services that provide newcontinue emphasizing a spirit of challenge as a company

value to customers and help resolve social issues, whilethat creates change for the better in society.

conducting work-style reforms to improve work efficiency.

motivated employees. Our competitiveness is underpinnedby our diverse technologies, know-how and frontline
capabilities that have continued to generate intellectual
property. We are proud of these attributes. Whenemployees in Japan and overseas share our corporate
philosophy and vision and take pride in their work, thisAt the start of fiscal 2023, I called on our employees to“act with a burning desire.” When trying to accomplish

To Our Stakeholders

Burning Desire:
The Source of Our Execution Capability

something, a “burning desire” provides the power toovercome any difficulties. My “burning desire” is to achieve
the goals of SVP2030. Aggressive investment in growthareas is part of this effort, and we will continue embracing
challenges to make our business blossom. We will continue

creates additional value and helps realize a sustainable

Clean water and air are essential for manufacturing

striving to be a company that always provides value tosociety. As we welcome new employees to the Group

photographic film, which was the starting point of oursociety. We look forward to your continued support of thethrough M&As, we are keenly aware of the needfounding. Because customers cannot test photographic

Fujifilm Group.

to continually improve engagement. The Fujifilm Groupfilm before taking photos, it was a product that customers

Employee Engagement Survey, conducted in December

purchased with “trust.” Therefore, the Fujifilm Group’s2022, received responses from 90% of Group employees

corporate culture is rooted in ESG concepts, such as

worldwide and resulted in an engagement score of 80%

environmental conservation, stakeholder trust and(percentage of positive responses). Analysis of thesurvey results revealed that while our strengths lie in our
employees’ deep understanding and empathy for theGroup’s vision and high awareness of compliance, there isalso room for improvement in promoting productive work
styles and diversity. Based on the results of the survey,
we need to engage in discussion at each workplace andincorporate the results into specific measures to ensurethat employees are highly motivated to work. Accordingly,
we will put a system in place to firmly establish a cycle thatwill foster the further growth of the Fujifilm Group and theemployees who work there.

As the needs and values ofsociety change, we will continue tomake positive changes for society
by transforming our business structure.

To rapidly advance business activities aimed at realizing
a sustainable society, which is our objective, we use datato optimize human resource allocations, in addition to

INTEGRATED REPORT 2023

12

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Evolution of Innovation

Special Feature:
Co-creating Value with Stakeholders

1935

1936

1940

Fuji Photo Film Co., Ltd. is established,taking over the photographic film operationsof Dainippon Celluloid Company Limited.
First shipment of the first domestically
produced film for motion pictures

Fuji Chrome Film

Fuji X-Ray Film

Air cartographic
cameraWe decided to develop a film for motion
pictures on our own. We were forced to supply
raw materials to ourselves because of the war.

Base technologies
Materials
chemistry

Ability to create new materials
that make the impossible
possible by controlling molecular
structures and conditions at will

Corporate Governance

Data Section

From our founding in 1934 to the present, we have continued to develop our proprietary core technologies to continually accumulate a competitive
advantage by leveraging our base technologies. Here, we will explain the history of innovation in the Fujifilm Group, which has promoted a growthstrategy by consistently anticipating the future.

Attempts to Realize theDomestic Production of Film
(Glass Dry Plates to Films)

1934

Sustainability

Research and manufacturing of silver halide emulsions(Silver halides are substances with a highlevel of visible-light photoactivity.)
Research and manufacturing of gelatin(Superior sol-gel property, a property that
evenly disperses silver halides)

1948

Fuji F5 50 cm,
a lens for aerial
photography

After achieving thedomestic production of film
for motion pictures, we
expanded our productportfolio to include generalpurpose film, photographic
print paper, X-ray film
and graphic arts film. We
succeeded in the research
and manufacturing of
optical glass as we strove tomanufacture cameras.

Research and manufacturing of films(As celluloid is highly combustible, we
studied incombustible TAC film and PET film
and began manufacturing them ourselves.)

Attempts at Colorization (Black and White toColor) and Establishment and Systematizationof a Culture of High-Quality Manufacturing

Fuji Color Film

We acquired a multilayer coating
technology because threecolor-developing layers for cyan,
magenta and yellow were necessary.

Fujica Six IA

We developed a camera, an enlarger exposure
unit and a processing machine on our own inpursuit of high technology. We acquired themechanical, electric and optical technologies thatwere necessary for this systematization process.

1964

Analysis of silver halideusing an electronic
microscope (laboratory)

Fuji Enlarger
Type B

We acquired an oil dispersion
technology for evenly dispersing
the coupler in each gelatin layer
to prevent colors mixing.

Base technologies
We possess energy-saving
and environmentally friendly
technologies in addition to our
proprietary technologies that wehave been honing for the handling of high-quality images. These technologies are appliedin the design of hardware in various fields, such as digital cameras and medical equipment.
OpticsXP-1,
Fuji hanger-type
automatic processor

Colorization resulted in a significant increase in the materials we use
and the use of multilayered films. Technologies and processes evolved
in response to the demand for the assurance of high quality andhigh-quality images. In this process, we acquired advanced analysis andimaging technologies for microprobe analysis and microscale analysis.

Base technologies

Color formation is a complicated mechanism, in which
exposed silver halides and developing agents reactwith each other, and the reactant and coupler reactwith each other, thus forming colors. We acquired atechnology for precisely controlling the redox reaction.

Research and manufacturing of sensitizing dyes
Sensitizing dyes are essential for generating
high-fidelity photographic images.

1950

Base technologies

AnalysisImage

Analysis, evaluation and simulation
technologies in the molecular/
atomic level and in the nanometer
range, including analysis andsimulation technologies thatare essential for the functional
design of materials, support thehigh-level material technology
development by Fujifilm, which
operates in various fields.

Technologies for evaluating image
quality, including the characteristics ofphotos such as color and picture quality,
are applied in the analysis and evaluationof many imaging devices, from display
devices to medical equipment.

Core Technologies
Currently Applied

Technology for roll-to-roll coating
manufacturing of photographic materials

13

Grain Formation
Technology
This is a technology for controllingand forming nanosized grains,from photosensitive grains forphotographic films to pigments. It
has enabled a range of products
to have advanced features.

FUJIFILM Holdings Corporation

Functional Polymer
Technology

Functional Molecules
Technology

Film Formation
Technology

This is a technology for designingand synthesizing polymer
materials that fulfill specificfunctions. For example, it
supports products with superior
functionality and quality, such as
microcapsules and microfilters.

This is a technology for designing andsynthesizing organic compounds. For example,
it realizes advanced functions of various
products by synthesizing compounds based onmolecule designs for controlling color and light.
The technology contributes to developing
highly functional chemical products.

This is a technology for forming films insingle-layer/multilayer/3D structures.
Solvent/fusion membrane creation
allows for the creation of diverse
polymer films. The technology is linked
to all processes, from material design
and formula through processing.

High-Precision
Imaging Forming
Technology
This is a technology for the exacttransfer of materials to high-precisionmolds and for hardening them. It isapplied in the design and manufacturingof lenses, medical equipment, cosmetics
containers and other products.

High-Precision
Coating Technology

Nano Dispersion
Technology

Redox Control
Technology

We have a technology for the micrometerlevel, uniform, multilayer coating of films
including advanced materials, and atechnology for casting films while
controlling optical properties and otherfeatures. We stably manufacture a rangeof high-quality functional films.

This is a technology for stably dispersing
nanosized particles stably in a liquid. It
contributes to improving the functionality
and quality of many products, ranging
from coating liquids for functional
materials, for which it ensures stability, todyes, inks and cosmetics.

This is a technology for controlling
continuous organic/inorganic compoundreactions. Instant cameras such as
INSTAX feature our redox control
technologies, which we have developedby leveraging our extensive experiencein photographic technologies.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

The Fujifilm Group has been providing society with a large number of products and solutions that contributeto solving social issues by combining its core technologies and acquiring new technologies.

1970

2000
2001

Converted Fuji Xerox Co., Ltd. to a consolidated
subsidiary (changed our investment ratio to 75%)

1970–1999 Business expansion based on technological capabilities

2006

Established FUJIFILM
Holdings Corporation

2008

Acquired TOYAMA CHEMICAL Co., Ltd.,
made full-fledged entry into thepharmaceuticals business2000s: Period of exploration into growth areas

The photographic film market shrank at a rapid rate. To overcome this crisis—the potential loss of our corebusiness—we restructured our business. Taking stock of the technologies we had cultivated in the development andproduction of photographic film, we entered the cosmetics and pharmaceuticals markets as future growth areas.

Materials
Business Innovation

Imaging lease refer toP
p.16 for ourcurrent base andcore technologies.

Healthcare

Second Foundation—Created a Resilient Business Portfolio

We promoted the digitalization of the photographic film, medicine and printing businesses
ahead of others. Furthermore, we began to establish overseas subsidiaries in the 1960s andstarted to establish overseas production sites and promote overseas sales in the 1980s, thus
accelerating globalization.

Leveraging Our Base and Core Technologies toProvide a Wide Array of Products and Solutions

Efforts at Digitalization and Acceleration of Globalization

1983

World first

Launched FCR, a digital X-ray diagnostic
imaging system

1999

2003

Launched the medical-use picturearchiving and communications
system (PACS) SYNAPSE

Launched a double-balloon endoscope

2004

World first

World first

Launched Sapientia, a fully digitalendoscope

1965

Japan first

1996

Launched the WV (wide view) film

1975

1987

Industry first

1976

World first

Developed the Fujicolor
F-II 400, a high-speed
color negative film

World first

Launched the Zero
Printer 100, offeringboth printing andcopying functions

1986

2007

Launched the F Square
i series of functional
skincare cosmetics(Entered the cosmetics
market)Launched
ASTALIFT
skin-care series
for anti-aging

World first

Launched the SK and
GKN PS plates

Launched the Fuji
Xerox 6500, a
full-color copy machine

2006

World first

Launched the
Fujicolor QuickSnap,a one-time-use
recyclable camera

1988

2000

2002

Launched the Color
DocuTech 60, the world’s
fastest (at that time)
full-color electronic printing
and publishing system

2002

World first

Developed the
FUJIX DS-1P, a fully
digital still camera

Industry first
Launched the netprint service to retrieve personal documentsfrom copiers in convenience stores
Launched the “beat,” a service providing Internet environments
for small and medium-sized enterprises

1998

2000

Launched the INSTAX
mini 10 instant camera

Launched the FinePix 4700Z
digital camera equippedwith the Honeycomb Super
CCD sensor

World first

INTEGRATED REPORT 2023

14

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Evolution of Innovation
2012

2010

Acquired SonoSite, Inc. and enteredinto the ultrasound diagnostics field2011

Acquired MSD Biologics Limited/
Diosynth RTP Inc. and enteredinto the Bio CDMO markets

2017

Acquired Wako Pure
Chemical Industries, Ltd.

2015

Acquired Cellular
Dynamics
International, Inc.

2018

Acquired Irvine Scientific Sales Company
and expanded businesses in the fields oflife sciences (culture media)

2019

Converted Fuji Xerox Co., Ltd.
to a wholly owned subsidiary

2020

2019

Acquired Biogen (Denmark) Manufacturing ApS andaccelerated the growth of the Bio CDMO business2010s: Period of the examination of growth areas2022

Acquired Inspirata, Inc.’s digitalpathology division

2021

Completed the acquisition of FUJIFILM Healthcare Corporation, whichis the successor to the diagnostic imaging business of Hitachi, Ltd.

2020s: Period of growth
Generating Value with a Positive Impact on Society,Leading Markets

Enhanced the Business Portfolio and Accelerated Growth
Anticipating the expansion of the market, we fully entered the Bio CDMO business in 2011
and actively pursued M&A opportunities by examining and identifying areas where we could
demonstrate our competitive advantages.

We are focusing our efforts on generating value to positively impact industries
and society by accelerating the creation of synergies within the Fujifilm Groupand enabling our leading-edge proprietary technologies to evolve.

2011

2016

2018

2021

2023

Made full-fledged entry
into the Bio CDMO
business

Launched the FDR nano, a lightweight,
portable digital X-ray imaging device

Launched cloud services for
medical institutions

Launched the FDR Xair, a mobile
X-ray imaging device

Announced
REiLI, the AI
technology
brand

Launched the
AMULETSOPHINITY digital
mammographysystem

2011

2012

2018

2021

Launched the Jet Press 720

Launched high-capacity
magnetic tapes using barium
ferrite (BaFe) magnetic particles

Launched the “Hibimikke (Crack Finder),”a social infrastructure image diagnostic
service

Launched the FUJIFILM LTO
Ultrium9 Data Cartridge,
which provides safe,
long-term storage ofhigh-volume data at low cost

2009

2011

2020

2021

Launched the ApeosPort-IV Series,
offering environmental impact
reduction services

Launched the Working
Folder cloud service
supporting document
sharing

Launched the
CocoDesk, a personal
workspace service

Launched the Apeos Seriesof Fujifilm-brandmultifunction devices andprinters with enhanced
security features

2015

2019

2019

2021

Launched the INSTAX
mini Link, a printer for
smartphones

Launched the INSTAX
mini Evo hybrid instantcameraWorld first

Launched a broadcast
zoom lens compatible
with 4K cameras

World record *Launched the FUJIFILMGFX100, equipped with alarge-format sensor with
102 million pixels* As of May 2019 for consumer-use mirrorless digital cameras, according to a survey by Fujifilm

15

2021

Changed the company name from Fuji Xerox
Co., Ltd. to FUJIFILM Business Innovation Corp.

FUJIFILM Holdings Corporation

2023

World first
Launched a pressure-bonding tonerwith an adhesive function

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

The Fujifilm Group’s Proprietary Technologies

INSTAX filmCore technology on which it is based

The process of completing a single photograph is made up of a wide variety of advanced,
proprietary technologies. The Fujifilm Group has cultivated technological capabilities witha competitive advantage through the research and development of silver halide photography.

Imaging
Professional
Imaging

Redox
Control

Functional
Molecules

FUJICOLOR
QuickSnap

Redox
Control

Healthcare

SystemDesignEndoscopesystems
IVD and clinicaltesting

Core
Technologies

Grain
Formation

Business Solutions
SystemDesignCT and MRI systems

INSTAX

PhotobookLens-integrated long-range
surveillance cameras

Core technology on which it is based

AMULET SOPHINITY
Digital Mammography
SystemCore technology on which it is based

Digital cameras

INSTAX mini Link 2
INSTAX printer

Main
Products
and Services Medical Systems

Consumer
Imaging

Business projectors

X-ray diagnostic
imaging systems
Film
Formation

ASTALIFT THE SERUM BRIGHTENING
High-Performance Serum Series

Ultrasounddiagnostic
equipmentCore technology on
which it is based
IT solutions

Bio CDMO
High-Precision
Coating

Base
Technologies

Imaging

Bioengineering
Technology

Nanodispersion

Grain
Formation

Redox
Control

Bio CDMO

Examples of Business
Innovation Products

CocoDesk

High-quality
Super EA-Eco tonerDX
DX solutions

Materials
Chemistry

Nanodispersion

Imaging

BiochemistryBusiness Innovation

Core technology on which it is based

Grain
Formation

Data Section

Examples of Healthcare Products

Examples of Imaging Products

High-Precision
Coating

Corporate Governance

Bioengineering

SoftwareAnalysis

Culture media
and reagents
Functional
Molecules

Electrical,
Electronic

Skincare cosmetics andsupplement products

Examples of Materials ProductsElectronic Materials

Wave Control Mosaic
color filter material
for image sensors

MEMS
High-Precision
Forming

Production printers

LS Solutions

Functional
Polymer

Production
SystemSystemDesignDigital color
multifunction devices

Core technology on which it is based

Mechanical
DesignOffice Solutions

Functional
Polymer

Apeos C7070 A3 color
multifunction device

OpticsImaging

Semiconductormaterials

CMP slurry

Core technology on which it is based

Other Advanced
Display Materials
Materials
Graphic
Communication

Data storage
media

Display materials

Materials

Nanodispersion

Functional
Polymer

Functional
Molecules

Samba G3L
inkjet printheadCore technology on
which it is based

Digital printers
CTP plates

SystemDesignMEMS

High-Precision
Coating

INTEGRATED REPORT 2023

16

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Value Creation Process

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

By leveraging its invested capital to create value through innovation, the Fujifilm Group has worked to resolve social issues through its
business activities and consider the environment and society in its business processes. We will continue co-creating value with society andthus help realize a sustainable society.

Realizing a Sustainable Society Value from Innovation

Financial
capitalInvested capital

Long-Term CSR Plan Sustainable Value Plan 2030

Stable financial baseMedium-Term Management Plan

Shareholders’ equity¥2,763.1 billion
Interest-bearing debt
¥376.2 billion■ Standard & Poor’s (S&P) rating
AA-Intellectual
capitalVISION2023■■

Advanced and proprietary technologies
and brand recognition

Priority Areas
Environment

SocialcapitalManufacturing
capitalNaturalcapitalHealthDaily Life

Employees

Shareholders/
other investors

Suppliers

Local
communities

Futuregenerations

Governments/
industry groups

NGOs/NPOs

Work Style

21
Fundamental and core technologies■ Number of patents held
54,791■ Number of designs owned
3,842■ Number of trademarks held
6,662
■ High global brand recognition
95%

Realize a decarbonized society
through business activities
Business activity

4 segments

Number of Group employees
73,878
Number of DX-related training course
participants (total)
Approx. 94,000■ Ratio of overseas employees
48%(compared with FY2019)

Corporate activities(compared with FY2019)

Number of in-house environmentally friendly
226 (cumulative)
certified products (“Green Value Products”)■ Achieving carbon neutrality at multifunction device recycling base in China

Extend healthy life expectancy
through prevention, diagnosis and treatment■

Global network■

Number of consolidated subsidiaries(including sales subsidiaries andmanufacturing subsidiaries)

273

Production capacity to continue togenerate innovation
72
Number of manufacturing subsidiaries■ Capital investment¥288.3 billion

Materials

p.35

p.39

Energy consumption■ Total water intake

FUJIFILM Holdings Corporation

20,875 TJ
41.8 million m3

Imaging

p.41

p.43

Create innovation

Improving access to medical care; Deployment of products/services
using medical AI technology
93 countries and regions■ Bio CDMO tank capacity (production capacity)
180 kL■ Development of AI-based medical checkup services
and initiatives to end tuberculosis in emerging countries■

Stakeholder needs/expectations

Number of companies registered for the “Hibimikke (social infrastructure
image diagnostic)” service (as of June 30, 2023)
More than 1,200■ Providing the “Integrated Disaster Investigation System” and“Residential Damage Assessment App” to speed up the issuanceof disaster victimization certificates by local governments

Improve job satisfaction through business innovation

Financial baseInnovation p.51

Help realize a safe and secure society
through digital technology■

Integrate technologies

Efficient use of resources■

BusinessInnovation

Create new value and resolve social issues■

10% reduction■

Business portfolio optimization

Healthcare

6.9% reduction

Reduction of CO2 emissions
throughout the entire product life cycle■ Reduction of CO2 emissions from in-house energy■■

Note: Actual figures for FY2022 (year-end)

17

Materiality pp.20–22

p.62

Customers■

Global and diverse workforce
Human
capitalCo-creating value with stakeholders

Access to work styles that support
improvement of productivity/creativity■ Bridge DX Library solutions■

Corporate Governance p.87

25.33 million people*
146 types*Revision of calculation logic from FY2022

Corporate Philosophy

VisionNote: Actual figures for FY2022 (year-end)

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Frameworks to Continue to Generate Innovation and Sources of Value
Through constant innovation

Providing thehighest quality

the Fujifilm Group has provided top-

Co-creation with
suppliers

Responding to diverse
customer needs

Achieving asustainable society

The Fujifilm Group
Suppliers

From customers to co-creation partners

Data Section

Customers and partners

Co-creating future value
with stakeholders

quality products and services thatmeet the changing needs of

Co-creation

Co-creation

Co-creationsociety. We are also working withstakeholders, including suppliers and

Healthcare

Materials

Businessinnovation

Creating new value
and resolving social issues

Imaging

partners, to jointly create value forthe future while identifying not onlyTechnologicalability

Technological capabilities
Accumulation of base technologies
In the field of photography, which consists of theaccumulation of a wide variety of advanced andproprietary technologies, we cultivate worldclass technological capabilities and accumulatebase technologies that support each business.
Improvement of core technologies
Based on our base technologies, we arerefining our core technologies to build asustainable competitive advantage.
Fusion of multiple technologies

Value that continues
into the future

Creating innovationby combining technologies

current needs but also potential ones.

Corporate culture

Sources of innovation
Corporate
cultureHuman
resources

Experience value
Globalnetwork

Functional value

Brand

Human resources

Brand

An open, fair and clear
corporate culture

Fostering human resources that seechange as an opportunity for growthBased on our corporate culture of “open,
fair and clear,” we aim to continue tobe a company that is trusted andneeded by society by creating newvalue through brave challenges.
"Open, fair and clear" is the basis for all
activities of the Fujifilm Group, and isan essential element for sustainablegrowth and medium- to long-term
enhancement of corporate value.

We see change as an opportunity for
growth and are focusing on developing
human resources who take on challenges
and create change on a daily basis.

Cultivating the brand throughcontinuous provision of innovative
products and services

By combining base and core technologies,
we provide a variety of innovative
products and services.

High level of employee engagement
We are promoting the creation ofan organization with a high level of
employee engagement that permits
diverse human resources to fully
demonstrate their capabilities. Eachindividual employee supports thegrowth of the Fujifilm Group.

The changing needs of society

The Fujifilm Group has cultivated the
Fujifilm brand by providing innovative
products and services and confrontingsocial issues head-on while evolving theadvanced and proprietary technologies
it has developed in the field ofphotography. Raising the value of the
Fujifilm brand leads to a high level ofrecognition worldwide.

Changing societal needsfrom products to
products and services

Global network
Proactive overseas expansion since our founding
We began exporting in 1938, four years after our
founding. We established a sales company in Brazil
in 1958. Since then, we have actively expanded ourbusiness overseas and grown as a global company.
Strengthening business management functions throughcooperation with regional management companies
We established regional management companies toaccelerate decision-making and enhance business
management functions. This has enabled thecollection of information in each country or region ina timely manner, the planning of strategies adapted
to the local region, and cooperation with local
companies in research and development, production,marketing, sales and other aspects of business.

p.13 Evolution of Innovation

p.5 The Fujifilm Group’s Commitment

p.56 Human Resources Strategy

p.13 Evolution of Innovation

p.23 Overview of Our Businesses

p.16	The Fujifilm Group’s Proprietary
Technologies

p.56 Human Resources Strategy

p.75	Diversity, Job Satisfaction, andOccupational Health and Safetyp.62	Co-Creating Value with
Stakeholders

p.62	Co-Creating Value with
Stakeholders

p.45 R&D Strategies

p.75 	Diversity, Job Satisfaction, andOccupational Health and Safety

p.50 Intellectual Property Strategy

INTEGRATED REPORT 2023

18

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

The Fujifilm Group’s Future VisionRoadmap and Priority Issues (Materiality) for Realizing Our Future Vision
To achieve the goals of Sustainable Value Plan 2030 (SVP2030), we will promote
the priority measures set forth in VISION2023, our medium-term management
plan announced in April 2021, and help realize a sustainable society.

Accelerate growth in healthcare
and advanced materials andbuild a business foundation forsustainable growth

VISION2023
Strengthen our businessportfolio and build a foundation
for the next leap forward

VISION2019
Revenue: ¥2,315.1 billion
Operating income:¥186.6 billion
CO2 emission reduction*1: 25%

Revenue: ¥2,950.0 billion
Operating income:¥290.0 billion
CO2 emission reduction*1: 11%

Help realize a sustainable
society by resolving social
issues through innovativetechnologies, products andservices

SVP2030

Realize a
Sustainable Society

Value from Innovation●D eploy innovation to resolve global
environmental and social issues●Positively impact society throughour business activities●R espond appropriately tosociety’s expectations throughcommunication with stakeholders

Revenue: ¥3,500.0 billion or more
(Healthcare ¥1,750.0 billion)

CO2 emission reduction*1, 2: 50%(compared with FY2019)(compared with FY2019)

The initial target of VISION2023, our medium-term
management plan, was ¥2.7 trillion for revenueand ¥260 billion for operating income. The target
was achieved one year ahead of schedule in
FY2022 and has been revised upward accordingly.

(compared with FY2013)*1 CO2 emission reduction figures apply to energy used by the Company (Scope 1 + 2).
*2 50% reduction compared with FY2019 corresponds to 65% reduction compared with FY2013. CO2 emission reduction target for theentire product life cycle in FY2030: 50% compared with FY2019.

19

FUJIFILM Holdings Corporation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Process for Formulating Priority Issues Materiality
In formulating SVP2030, we conducted a materiality analysis(prioritized evaluation and selection of items) from the perspectiveof “social and environmental issues to be resolved” and “the Fujifilm
Group’s business growth” expected in fiscal 2030. We will review
our priority issues on a regular basis to further resolve social issues
and enhance the Group’s corporate value.

Step
1

SVP2030: Priority Areas/
Priority Issues (Materiality)

Environment

Step
2

Step
3

Step
4

List issues from external perspectives (ISO26000, GRI andother guidelines, SDGs, etc.) and in terms of potential of issue
resolution by all our divisions

Evaluate Materiality
Evaluate materiality via a two-pronged approach:1) Reduce/consider the social and environmental impacts of our business activities
2) Resolve social issues through our business activities

Plan and Plan, Review, Approve
Coordinate with relevant divisions on identified materiality and set
targets; after deliberation and approval by the ESG Committee andreporting to the Board of Directors, promote initiatives as a Group policy

Co-creating value
with stakeholders

Sustainability

p.70

p.62

Consider the environment andsociety in our business processes

SDGs addressed by
the Fujifilm Group2 Promote recycling of resources

3  Address energy issues with the aimof realizing a decarbonized society

4 Ensure product and chemical safety

1 Address unmet medical needs

HealthData Section

1 Address climate change

2 Improve access to medical services
3 Contribute to early detection of disease

4 Promote enhanced health and beauty
5 Promote health management

Identify Social Issues Based on Business Strategy

Corporate Governance

Resolve social issues throughour business activities

Decide Basic Policies
Clearly show our future vision of how we can contribute as a
global company to resolve social issues from a long-term
perspective

Sustainability

Daily
Life

1 Help create a safe and secure society

Work
Style

1  Create environments conducive to job

Innovation

The Fujifilm Group’s Value Creation

Employees

2C ontribute to spiritual enrichment

and human connections

satisfaction (provide solutions and services)2  Develop and utilize diverse human resources

Employees
Employees

Basis of Business Activities
SupplyChain

Strengthen CSR foundations (including the environment,
ethics and human rights) throughout the supply chain

Improve and maintain governance structures by further

Governance disseminating an open, fair and clear corporate culture

Please refer to pp.9-12 of our Sustainability Report 2023 for details. https://holdings.fujifilm.com/en/sustainability/report
INTEGRATED REPORT 2023

20

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Medium- to Long-Term Risks/Opportunities and Materiality
Megatrends
that have an
impact onmateriality

Emerging risks of large-scale natural
disasters and infectious disease pandemics,
changes in the global environment andecosystems due to climate change, anddepletion of energy and resources

Priority issues(Materiality)

EnvironmentAddress climatechange romote recycling ofP
resourcesAddress energy
issues with the aimof realizing adecarbonized society nsure product andEchemical safety

HealthAddress unmet
medical needsImprove accessibility
to medical services
 ontribute to earlyCdetection of disease
Promote enhanced
health and beauty
Promote healthmanagement

21

Unstable political and economic
conditions, heightened geopoliticalrisks due to escalating conflicts,
and widening disparities between
countries and regions

Declining birth rates and aging populations
globally, declining workforces, changes inwork styles and retirement security due
to the advent of the 100-year life era;
growing interest in healthy life expectancy

Corporate Governance

We are working to achieve the goals of SVP2030 by identifying risks andopportunities from megatrends and identifying materialities and KPIs.

Increasing concern about humanrights, diversification of individual
values and emphasis on diversity inorganizations

Opportunities

Risks

Major KPIs

●Growing need for efficient, energysaving, low-cost storage of large
volumes of data in the era of big data●Disruption of supply chains, plant
shutdowns and lack of water
needed for production due toabnormal weather (e.g., heavy
rains, floods, droughts) andnatural disasters caused by risingtemperatures●CO2 emission
reduction rate fromin-house energy●10% reduction in CO2 emissions fromin-house energy use (compared with
FY2019)●CO2 emission
reduction rate overproduct life cycle●6.9% reduction in CO2 emissions in
product life cycles (compared with
FY2019)●Ratio of sales ofenvironmentallyfriendly products/
services to net sales--------------------------------------------●Contribution to CO2emission reduction
in society■Achieved carbon neutrality at
multifunction device recycling sites in
China●Increasing demand for systems,
products and technologies to monitor
and forecast weather conditions
and diagnose deterioration of
infrastructure, including buildings
and water sources, in response toabnormal weather events●Need to incorporate CO2 emission
reduction initiatives (such as useof low power consumption
products and preference forcarbon-free production) into
customers’ procurement criteria●Increasing need to use water-free
products (including process-lessprinting plates) due to growing
concern about water resources●Growing need for IT solutions to
support medical care andimprove operational efficiency
due to the aging population andshortage of medical personnel●Increasing unmet medical
needs, mainly for cancer, rarediseases and gene therapies●Expanding market forbiopharmaceuticals that deliver
high efficacy with few side
effects●Progressive industrialization ofadvanced therapies●Increasing need for vaccines
and therapeutics to combat
infectious disease pandemics

FUJIFILM Holdings Corporation●Shortage of raw materials for
products (pulp for paper,
cellulose for film) due todepletion of forests and plants●Levying a carbon tax on CO₂
generated when fossil fuels areused and the accompanying
cost increases

FY2023 (Targets)■CO2 emission
reduction ratefrom in-houseenergy: 11%(compared with
FY2019)■Started collaboration with Tokyo Gas Co.,
Ltd. and Minamiashigara City to aim forzero carbon models in manufacturing

FY2030 (Targets)

Main related
segments■CO2 emission
reduction rate fromin-house energy:
50% (compared with
FY2019)Healthcare■50% reduction of
CO2 emissions in
product life cycles(compared with
FY2019)Materials

BusinessInnovation

Imaging■Certified as an “A-list company” by the
CDP, the highest evaluation in the twoareas of “climate change” and “water
security”●Strengthened laws andregulations for medical
equipment●No. of countries/
regions where our
medical AI
technology-based
products/services
are deployed●Postponement or suspensionof new drug development bypharmaceutical companies andchanges in the management
environment amid increasing
difficulty of drug discovery●Bio CDMO tankcapacity (production
capacity)●Heightened competition in thebiopharmaceutical processdevelopment and contract
manufacturing market due totechnological innovation

Main achievements in FY2022

Rapid advances in technology, rise of
new lifestyles/businesses due to DX
and rising cyber risks■Introduced internal carbon pricing (ICP)system lease refer to p.73 forPclimate change measures.

●Major changes in healthcare
administration policies due tohealthcare reforms

Data Section●Ratio of Healthcare
sales to total
revenue●No. of countries/regions where our
medical AI technology-based products/
services are deployed: 93●Ratio of Healthcare sales to total revenue: 32.5%●Bio CDMO tank capacity (production
capacity): 180 kL-------------------------------------------■Use IT and AI technologies to deploy productsthat improve workflow at medical sites■Opened a new base (Gurugram, Mumbai) for“NURA,” a health checkup center focusing on
cancer screening in India■Promoted TB control efforts in developing
countries■To expand business in the Asian market
and strengthen the Japanese vaccine
production system, the Company
established its first domestic Bio CDMO
base in Toyama Prefecture■No. of countries/
regions where
our medical AI
technology-based
products/services
are deployed: 100■No. of countries/
regions where
our medical AI
technology-based
products/services
are deployed: 196■Achieve further
growth as thelargest segment■Ratio of Healthcare
sales to total
revenue: 50%(¥1,750.0 billion vs.
total revenue of¥3,500.0 billion)■Bio CDMO
tank capacity(production
capacity): 337 kL■Bio CDMO tankcapacity (production
capacity): 658 kL(FY2026)

Healthcare

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Opportunities

Risks

Major KPIs

Main achievements in FY2022

FY2023 (Targets)

FY2030 (Targets)● Expansion of related markets
including the semiconductor
market through the spread of newtechnologies such as 5G, autonomous
driving and generative AI●Rising raw material costs due tosoaring resource prices●Electronic Materials
business: Growthrate and growthoriented
investments●Growth rate of Electronic Materials
business: 23.1% (YoY)●Ratio of Materials sales to total revenue:
23.9%-------------------------------------------■Announced the introduction of state-ofthe-art equipment to produce CMP
slurries in Kumamoto with the aim ofbuilding a stable semiconductor supply
system■Ratio of Materials
sales to total
revenue: 23.9%*1■Average annual
growth rate ofElectronic Materials
business: More than
10% by FY2030■Achieve ¥500 billion
in Electronic
Materials businesssales (¥250 billion by
FY2024, ¥400 billion
by FY2028)

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Corporate Governance

Data Section

Megatrends
that have an
impact onmateriality

Priority issues(Materiality)

Daily
Life
 elp create a safe andHsecure society ontribute to spiritualC
enrichment andhuman connections●Expanding demand for relatedmaterials due to the growth of
the OLED market●Growing demand for digitalprinting due to increase in
on-demand printing●Growth in the number of images
taken and printing needs due tosmartphone proliferation●Expanding demand for analog products
for the digital native generation●Increasing demand for highperformance lenses due tohigher- resolution images, advanced
IoT technologies and the growing
importance of security monitoring

Work
Style
Create environments
conducive to job
satisfaction (provide
solutions andservices) evelop and utilizeDdiverse humanresources●Need to build and operate IT
infrastructure with enhanced
security/networking against the
backdrop of cyberattack threats
and the spread of remote
working●Growing market for businesssolutions and services thatutilize AI and the cloud for DX
and improving office work
productivity●Raw material procurement risks
and supply chain disruptions
due to increased concerns about
economic security and theformation of economic blocs●Commoditization of digital
devices●Ratio of Materials
sales to total
revenue●Intensifying competition fromalternative materials due tothe commercialization of newtechnologies■Announced the construction of a newplant for color filter materials for image
sensors in South Korea

Main related
segments

Materials

Imaging●Lower-than-expected demandin the offset printing market●Intensifying competition in thehigh-end mirrorless digital
camera market●Shrinking digital camera market
due to improved smartphone
cameras●Decrease in print volumes due
to entrenchment of remote
working and increasing
digitization of businessprocesses●Slowing growth and declining
profitability due to thematuration of the officeequipment market●Provide solutions
and services that
help workers
improveproductivity andexercise theircreativity●Growth rate ofBusiness Solutions
business●Provided 25.33 million*2 people withwork styles that support increased
worker productivity and creativity●Business Solutions business growth rate:
8.5% (YoY)-------------------------------------------■Leveraged the Fujifilm brand to drive
global expansion■Achieve 4%
annual growth(FY2020→
FY2023) in
Business Solutions
sales that
contribute tocustomers’ DX■Acquired MicroChannel Services Pty.
Limited, an Australian IT services
company, and began full-scale overseas
development of core DX business mainly
targeting small and medium-sizedenterprises*1 Based on full-year forecasts (announced on August 9, 2023)■Provide 50 million
people with work
styles that support
improved productivity
and creativity

BusinessInnovation*2 Revision of calculation logic from fiscal 2022

INTEGRATED REPORT 2023

22

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Overview of Our Businesses

Imaging
Various products and services
related to photographs and videos
from shooting to printing●Consumer Imaging
INSTAX, color films, color paper for photo
printing, developing and printing systems,
photo printing services and more
●Professional Imaging
Mirrorless digital cameras featuring high picture
quality enabled by our proprietary color
reproduction technology, TV and cine lenses,
industrial lenses including security lenses andmachine vision lenses, projectors, digital
signage and more

●Office Solutions
Document-related office solutions provided throughmultifunction devices, printers, consumables andmaintenance services●Business Solutions
Solution-oriented document services tailored tovarious industries and operations, including system
integration, cloud services, management ofmultifunction devices and business process
outsourcing

Providing a wide range of businesses in
the fields of prevention, diagnosis andtreatment as a total healthcare company

Professional
Imaging

5.0%

Medical Systems

Consumer
Imaging

21.8%

9.3%

Imaging

p.43¥410.3 billion

14.3%

Life Sciences

Healthcare

Total solutions in the fields of cells, culture media andreagents for drug discovery support

p.35¥928.6 billion

Net sales in FY2022

BusinessInnovation¥2,859.0 billion

Consumer Healthcare

32.5%

Bio CDMO

6.8%

Pharmaceuticals

Process development and manufacturing services fornext-generation drugs and mRNA vaccines

Materials

LS Solutions

3.9%

29.3%

Materials

p.39¥682.0 billion

23.9%

Electronic
Materials

6.3%

Display Materials

19.4%

Functional cosmetics such as the ASTALIFT brand andsupplement products

p.41¥838.1 billion

OfficeSolutions●Medical Systems
Various diagnostic equipment such as X-ray diagnostic
imaging, endoscopes, ultrasound, in vitro diagnostic(IVD), and medical IT systems for centralized
management of diagnostic images and other data
●Bio CDMO
Process development and manufacturing services forhigh-quality biopharmaceuticals, demand for which is
growing, and in the advanced medical fields of celltherapy drugs and gene therapy drugs●LS Solutions

2.5%
Graphic
Communication

12.0%

Industrial Products andFine Chemicals

3.1%

Various advanced materials and graphic communication
solutions for communication equipment, sensors,
next-generation displays and other equipment that
support lifestyles in the era of AI and IoT●Electronic Materials
Various materials (e.g., photoresists, CMP slurries) used
to manufacture semiconductors●Display Materials
Materials for LCD panels, OLED panels and other products●Industrial Products and Fine Chemicals
Industrial Products (e.g., sensor films for touch panels,
recording media) and Fine Chemicals (e.g., advanced
chemicals, reagents for research use)
●Graphic Communication
Graphic communication solutions (e.g., offset printing
equipment, digital printing systems) and inkjet solutions
such as industrial printheads

Note: Figures for revenue in the Non-destructive Inspection business have been reclassified from the Materials segment to the Healthcare segment from fiscal 2023. Information for fiscal 2022 has been restated to reflect this change in classification.

23

FUJIFILM Holdings Corporation

Data Section

Healthcare

Net Sales by Segment

9.9%

Products and solution services thatbring about new changes in work
styles, improving productivity andinspiring creativity

Corporate Governance

The Fujifilm Group’s current business portfolio was established through the evolution of innovation with our leading-edge,
proprietary and advanced technologies honing the photographic film business. We aim to build a portfolio that enables us tocontinue innovating even if our business environment changes.

Business
Solutions

BusinessInnovation

Sustainability

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

The Fujifilm Group around the World (Domestic and Overseas Revenue)

Data Section

Worldwide consolidated subsidiaries

273 companies

Since its founding, the Fujifilm Group has developed its business in global markets. Overseas business is“localization,” in other words, a style of entering the market on one’s own, discovering needs and creating
the market itself. We are working to build a strong network of production, sales and services around the

As of March 31, 2023
Including 56
companies in Japanworld, rooted in local communities.

North America

Europe67 companies

29 companies

Asia and Oceania

114 companies
America

Japan

23.0%

35.9%

¥656.9 billion¥1,026.3 billion

Europe¥430.4 billion

15.1%

Net sales in FY2022¥2,859.0 billion

Middle East andAfrica3 companies

Asia and others¥745.4 billion

Central and SouthAmerica

4 companies

26.0%

INTEGRATED REPORT 2023

24

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Financial Highlights(Billions of yen)

Revenue

2,859.0 billion¥

Operating income

273.1 billion¥(Billions of yen)

2,859.0

3,000

9.6%

300

273.1

200

2,000

219.4 billion

¥

ROE

8.3%

Operating margin

9.6%

Net income
attributable to
FUJIFILM Holdings

(%)

219.4

180

12

8.3 9

120

6

60

3

● ROE (right scale)

0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

547.21

(Yen)

(Yen)

600

547.21 200

450

130

¥

Cash dividend per
share

150

300

100

150

50

130

■N
 et income attributable to
FUJIFILM Holdings (left scale)■ Net income attributable to FUJIFILM
Holdings per share (EPS) (left scale)0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

In fiscal 2022, net income attributable to FUJIFILM Holdings was a record¥219.4 billion (up 3.9% year-on-year), thanks to the contribution of therecord-high operating income.

In fiscal 2022, we posted revenue of ¥2,859.0 billion (up 13.2% year-on-year)
and operating income of ¥273.1 billion (up 18.9% year-on-year), which wereboth record highs. We thus achieved significant increases in revenue andoperating income in strong businesses such as Medical Systems, Electronic
Materials, Business Innovation and Imaging.

Net income
attributable to
FUJIFILM Holdings
per share (EPS)*

¥

100

1,000

■ Revenue (left scale)■ Operating income (right scale)● Operating margin (%)(Billions of yen)240

■ Cash dividend per share (right scale)0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

Net income attributable to FUJIFILM Holdings per share in fiscal 2022 totaled¥547.21 (up 3.8% year-on-year). Cash dividend per share increased for the
13th consecutive year to ¥130, with a dividend payout ratio of 23.8%. The
Company has a policy of shareholder returns that emphasizes cash dividends,
targeting a dividend payout ratio of 30%.

* Net income (loss) attributable to FUJIFILM Holdings per share is calculated based on the
average number of shares of common stock (excluding treasury stock) outstanding for the
year.

R&D expenses

154.1 billion(Billions of yen)

(%)

240

8

¥

Ratio of R&D
expenses torevenue

5.4%

180

5.4

154.1
120

4

60

2

300

¥

288.3 billion

250

Depreciation (onlyproperty, plant andequipment)*

200

78.3 billion¥■ R&D expenses (left scale)● Ratio of R&D expenses torevenue (right scale)6■ Capital expenditures■ Depreciation

0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

The Fujifilm Group does business in a variety of fields. It advances research anddevelopment in priority business areas through product design integrating awide range of fundamental and core technologies, while at the same time
generating new businesses for the future.

(Billions of yen)

Capitalexpenditures*

288.3

4,134.3 billion

Shareholders’equity ratio

66.8%
D/E ratio
78.3

50
0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

We are making aggressive capital investments to ensure that we capture therobust demand in the biopharmaceuticals and semiconductor markets. In fiscal
2022, a total of ¥288.3 billion in capital expenditures was made.

* The figures do not include amounts for rental equipment handled by the Business Innovation
segment, etc.

25

FUJIFILM Holdings Corporation(Billions of yen)

4,800

¥

150
100

Total assets

0.14 times■ Total assets (left scale)● Shareholders’ equity ratio (right scale)● D/E ratio (times)

(%)

80

4,134.3
66.8

3,600

60

2,400

40

1,200

20

0.14
times

0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

In fiscal 2022, total assets were ¥4,134.3 billion (up 4.5% year-on-year), mainlyreflecting increases in property, plant and equipment. The shareholders’ equity
ratio was 66.8% (up 3.5 percentage points year-on-year), maintaining a stable
capital structure.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Non-Financial Highlights(kt-CO2)

Greenhouse gas(GHG) emissions
throughout theentire product life
cycle

4,083 kt-CO

(TJ)

5,200

4,083
3,900

Energyconsumption*1

20,875 TJ(Million m3)

Total Group water
intake28,00020,87521,00041.8 million m

60

3

45

41.8

2

14,0002,600

30■ Heavy oil, etc.*2■ Procurement stage■ Manufacturing stage■ Transportation stage■ Use stage■ Disposal stage

1,300

0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022*■ Vehicle■ Gas*3■ Biogas*4■ Purchased power■ Purchased heat
■ Renewable energy*5

15

7,000
■ Total Group water usage

0 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

To realize a decarbonized society, a target of the Paris Agreement, we have
set CO2 emission reduction targets to achieve by fiscal 2030. We are working
to reduce CO2 emissions throughout product life cycles (in raw material
procurement and in product manufacturing, transportation, use and disposal).
In addition, we are contributing to CO2 emission reductions in society throughour products and services.

In addition to examining measures to maximize energy use efficiency andreduce CO2 emissions in energy procurement across the Group, we areproactively developing these measures within the Group. Our target is toswitch to renewable energy at a rate of 50% of purchased electricity by fiscal
2030 and 100% by 2040, achieving zero CO2 emissions from all the energythat we use.

We have been using a large amount of clean water for the manufacturing of photographic films. Therefore,
we have been taking actions to reduce the water intake amount and to utilize recycled water since
our early days. Our goal is to reduce the Group’s water usage by 30%* by fiscal 2030. In Kumamoto
Prefecture, where Fujifilm operates a factory, we have been making efforts to protect water sources formany years. For example, we have been working with local residents to plant trees and maintain forests
protecting the catchment function of the watershed in the upper reaches of the Shirakawa River.

* The figures are restated after fiscal 2019, the base year for the emission reduction target, byreviewing target products at each stage.

*1 The total might not match the sum of the indicated figures.
*2 Total of heavy oil A, heavy oil C, kerosene, light oil and gasoline*3 Total of natural gas, liquefied natural gas (LNG), city gas, butane and liquefied petroleum gas (LPG)*4 Landfill methane gas*5 Total of electricity generated by in-house power generators and purchased electricity* Compared with fiscal 2013(%)

Percentage ofwomen inmanagerial positions

20

Fujifilm Group*

15

16.5%

Fujifilm Group in Japan

6.9%

(%)

16.5

10

Percentage of
non-Japaneseemployees*1 in key
positions*2

27.8%

30

(%)

27.8

Percentage of
employees withdisabilities*
Fujifilm Group in Japan

20

2.45%

2.7

2.45
2.4

6.9
10

2.1

5
● Fujifilm Group*● Fujifilm Group in Japan

0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022●P ercentage of nonJapanese employees in key
positions0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022● Fujifilm Group in Japan● Fujifilm● FUJIFILM Business Innovation

1.8

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

In the Sustainable Value Plan 2030, the creation of frameworks and workplaces in which diverse
employees can play active roles is a priority issue. To promote the success of women, we have set a
goal of increasing the percentage of women in managerial positions in the Fujifilm Group to 25% by theend of fiscal 2030. Fujifilm and FUJIFILM Business Innovation have each formulated and announced afive-year action plan for promoting the success of women covering the period from April 2021 toMarch 2026 based on the Act on the Promotion of Women’s Active Engagement in Professional LifeTo promote talented non-Japanese employees, we have set the goal ofincreasing the percentage of non-Japanese employees in key positions to 35%
by fiscal 2030. We appoint the right people to be the leaders of our businesses
in each market, regardless of their nationality.

In Japan, the Fujifilm Group has continued to achieve a percentage of employees with disabilities above
the statutory level since fiscal 2016. We aim to maintain a percentage that is higher than the statutory
level. We created operations that people with disabilities can skillfully accomplish by involving an external
specialized institution (Local Vocational Centers for Persons with Disabilities) and helped those people
become engaged in their jobs by working together with supporting organizations. We also continued tocreate workplaces where people with intellectual or mental disabilities can play active roles.

* Executive and management positions are based on the definitions used by each Group
company.

*1 Employees who do not have Japanese citizenship*2 K ey positions: The positions of the presidents of major subsidiaries, general managers of
departments in charge of key businesses and the like are defined as key positions. Looking at theoverall Group from a global perspective, to accelerate the growth of the global business, we havereorganized our structure by adding functions that will become increasingly important as well as
adding key positions in the head office, clarifying them as key positions within the Group.

* Starting in fiscal 2018, we disclose the rate achieved by FUJIFILM Holdings Group companies
to which the special calculation rules for corporate groups apply.

INTEGRATED REPORT 2023

26

Chapter27

FUJIFILM Holdings Corporation

02

Strategy andResource Allocation

02
Chapter

Strategy and Resource Allocation
CONTENTS
29

Review of Past Medium-Term Management Plans

31

Financial Capital Strategy (Message from the CFO)

35	Strategies by Business Segment
35

Healthcare

39

Materials

41

Business Innovation

43

Imaging

45

R&D Strategies

47

DX Strategy

50Intellectual Property Strategy
51	Discussion between General Managers of the Intellectual Property, Medical
System Research & Development and Design Divisions

56

Human Resources Strategy (Message from General Manager of Human Resources Division)

INTEGRATED REPORT 2023

28

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Review of Past Medium-Term Management Plans
VISION2019

VISION2023

Achieve record-high profits and increase ROE bybuilding a business portfolio that can grow stably
over the medium- to long-term while strengthening
shareholder returns.

Further solidify the business portfolio establishedunder the previous medium-term management planby entrenching each business and strengthening M&A
investments and shareholder returns, in order toachieve record-high profits, increase ROE and inspire
new leaps forward.

Accelerate growth in the Healthcare segment and theAdvanced Materials business and build an evenstronger business foundation for sustainable growth,in order to achieve record-high figures for operating
income and net income attributable to FUJIFILM
Holdings.

● Accelerate the growth of core businesses: Increase sales,
market share and profits by expanding sales activities,
launching new products and engaging in M&As, with the
Healthcare, Advancement Materials and Documentbusinesses as growth drivers● Position each business into three stages according to our
growth process—“Improve profitability,” “Further
accelerate growth” and “Invest to create a new future”—
and develop measures to suit the relevant growth process● Strengthen business portfolio management and makegrowth investments of ¥1.2 trillion over three years● Strengthen corporate governance as a foundation andaccelerate global business development● Enter new markets for further growth

VISION2016

Objectives

Priority issues/
Initiatives● Improve profitability in all businesses: Improve profitability
by increasing productivity and efficiency in all businesses
while maintaining business scale and a competitive edge
● Set and disclose targets for ROE and shareholder returns(more than ¥200 billion)

Achievements/
Progress● Deliver total shareholder returns of ¥300 billion● Make total M&A investments of ¥500 billion● Promoted investment in advanced medical fields,
including healthcare (through the acquisition of Texasbased Kalon Biotherapeutics, LLC in the Bio CDMO
business) and regenerative medicine (through theacquisition of Cellular Dynamics International, Inc.)● Healthcare: Made and implemented aggressive
investment decisions, including the acquisition of thediagnostic imaging business of Hitachi, Ltd., a large-scale
capital investment in the Bio CDMO business in Denmarkand the acquisition of Wako Pure Chemical Industries● Advanced Materials: Improved profitability throughincreased sales in the Electronic Materials and Display
Materials businesses● Advanced Materials: Growth in revenue and profit driven
by the Electronic Materials business● Imaging: Achieved significant increases in profitability inboth the Photo Imaging business driven by the growth of
instant photo systems and the Electronic Imaging business,
which is shifting to high-end mirrorless digital cameras● Document: Posted an operating margin above 10% (inthe plan’s final year), sped up decision-making by
making Fuji Xerox a wholly owned subsidiary and built afoundation for further synergies within the Fujifilm Group● Strengthen cash flow management and set/disclose
target values for ROIC and CCC● Create synergies from the businesses strengthened throughM&As in the Healthcare and Business Innovation segments● Establish indicators to show the status of efforts toaddress social issues through our business activities anddisclose target values
Fiscal 2021 to 2022
● Healthcare has grown into the largest segment in bothrevenue and operating income● Following the sale of the radiopharmaceutical business,
we decided to sell the electronic medical records andmedical-receipt systems related business of FUJIFILM
Healthcare (FHC) and promote building an optimalbusiness portfolio● In fiscal 2022, the second year of the medium-term
management plan, the Company posted consecutive
record-high profits of ¥273.1 billion in operating income and¥219.4 billion in net income attributable to FUJIFILM Holdings
Note: Please refer to Financial Capital Strategy (Message from the CFO) on p.31 fordetails of the review of fiscal 2022.

● FY2016: Underachieved revenue and operating incometargets due to yen appreciation

Performancetargetachievementlevel/
Tasks for the
final year29

● Net income attributable to FUJIFILM Holdings reached arecord high of ¥131.5 billion● Delivered around ¥290 billion in shareholder returns(including dividends and share buybacks) over thethree-year period

FUJIFILM Holdings Corporation● Achieved record-high operating income of ¥209.8 billion
in fiscal 2018, but failed to meet the target for fiscal 2019(final year of the plan) due to COVID-19 in the fourth
quarter and the significant impact of foreign exchange
rates in the Asia-Pacific region● Made around ¥700 billion in M&As and other growthoriented investments over the three-year period● Delivered around ¥300 billion in shareholder returns(including dividends and share buybacks) over thethree-year period● Maximize synergies with FHC in Medical Systems andreorganize the functions of domestic Group companies(scheduled to be completed in the summer of 2024)● Pass on cost increases to prices due to higher energy
prices and labor costs in Bio CDMO and complete thefirst phase of ongoing capacity expansion at the Denmarksite● Stabilize the supply and demand of raw materials in Life
Sciences (culture media)● Secure closing of the acquisition of the Semiconductor
Process Chemicals business in Electronic Materials

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

VISION2016(Billions of yen)

Revenue
VISION2016 (result)¥2,322.2 billion

VISION2019

3,000
2,630.0
2,322.2

2,600.0

Special Feature:
Co-creating Value with Stakeholders

VISION2023
2,950.0
2,859.02,700.0
2,525.8

2,315.1¥131.5 billion¥125.0 billion

1,500¥225.0 billion

750

FY2014 FY2015 FY2016 FY2016

FY2017 FY2018 FY2019 FY2019

FY2020 FY2021 FY2022 FY2023 FY2023

Result Plan

Result Plan

Forecast Plan

VISION2016(Billions of yen)

VISION2019

VISION2023
290.0

300

273.1

VISION2016 (result)¥186.6 billion

230.0

220.0

225

VISION2019 (result)

172.3

260.0

¥260.0 billion

211.2 219.4

225.0
200.0

180
150.0
131.5

120.0

125.0

120

60

0

ROE

(%)

FY2017 FY2018 FY2019 FY2019

FY2020 FY2021 FY2022 FY2023 FY2023

Result Plan

Result Plan

Forecast Plan

VISION2016

VISION2019

10.0

VISION2023
9.0
8.3

7.5

VISION2019 (result)

186.6

FY2014 FY2015 FY2016 FY2016

VISION2016 (result)

6.5%

229.7

6.5

8.0

8.4

7.3

7.0
6.3

6.3%

150

VISION2023 (Full-year forecast)

5.0

8.0%

¥290.0 billion
VISION2023 (plan)

240

VISION2023¥200.0 billion
0

VISION2023 (Full-year forecast)

VISION2019

VISION2023 (plan)¥2,700.0 billion¥172.3 billion

VISION2016(Billions of yen)

Data Section

VISION2023 (Full-year forecast)

VISION2023 (plan)

OperatingincomeCorporate Governance

VISION2019 (result)

VISION2023 (Full-year forecast)¥2,950.0 billion

Net income
attributable to
FUJIFILM Holdings
VISION2016 (result)

2,250

VISION2019 (result)¥2,315.1 billion

Sustainability

VISION2023 (plan)

75

0

8.4%

FY2014 FY2015 FY2016 FY2016

FY2017 FY2018 FY2019 FY2019

FY2020 FY2021 FY2022 FY2023 FY2023

Result Plan

Result Plan

Forecast Plan

2.5

0

FY2014 FY2015 FY2016 FY2016

FY2017 FY2018 FY2019 FY2019

FY2020 FY2021 FY2022 FY2023 FY2023

Result Plan

Result Plan

Forecast Plan

INTEGRATED REPORT 2023

30

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Financial Capital Strategy
Q Please give us a review of your medium-term managementbusinesses/segments such as Medical Systems, Businessplan, VISION2023, and tell us about the challenges you faceInnovation and Imaging performed better than expected

in fiscal 2023, the final year of the plan.

because we swiftly addressed the parts procurement issue andIn fiscal 2022, we posted record-high figures for revenue

appropriately reviewed our selling prices.

and operating income, both of which surpassed the final-year

On the other hand, the Bio CDMO business, which could nottargets of VISION2023 one year ahead of schedule. Revenue

absorb sharp increases in fixed costs due to inflation, and theincreased 13.2% year on year, to ¥2,859.0 billion, with all

Life Sciences business, which continued to face a tight supply–

segments achieving year-on-year revenue growth. Operating

demand balance for raw materials, fell short of their targets. In

income rose 18.9% to ¥273.1 billion, mainly due to the revenue

addition, conditions remained difficult for Display Materials andincrease and the impact of foreign exchange rates. This wasother businesses compared to the previous fiscal year, which

despite a decrease in COVID-related special demand in thebenefited from COVID-related demand, but the Company as a

Healthcare and Materials segments compared to the previous

whole achieved favorable results that exceeded its forecasts.

year, as well as higher material and energy costs.

In fiscal 2023, we are targeting revenue of ¥2,950 billion,

We faced a challenging business environment due tooperating income of ¥290 billion and net income attributable

lockdowns in China, soaring energy prices caused by theto FUJIFILM Holdings of ¥225 billion. All of these will be record-

Ukraine situation and other geopolitical factors, and a tighthigh figures surpassing the final-year targets of VISION2023.

supply–demand balance for parts and materials. Nevertheless,

Meanwhile, demand for biopharmaceuticals and●Performance targets
Message from the CFO

We will build a foundation
for future earnings bystrengthening our ability togenerate cash and reinforcing
business portfolio
management.
Masayuki Higuchi
Director and Corporate Vice President
CFO and General Manager of Corporate Planning
Division
FUJIFILM Holdings Corporation(Billions of yen)

FY2021
resultFY2022
resultFY2023
forecast

FY2023
VISION2023

2,525.8

2,859.0

2,950.02,700.0

Operating income

229.7

273.1

290.0

260.0

Income before income taxes

260.4

282.2

295.0

265.0

Net income attributable to FUJIFILM
Holdings

211.2

219.4

225.0

200.0

Net income attributable to FUJIFILM
Holdings per share¥527.33¥547.21¥560.95¥500.27

ROE

9.0%

8.3%

8.0%

8.4%

ROIC

5.6%

6.1%

5.9%

6.1%

CCC (days)

122

125

111

103

Revenue

100%
9.1%

10.3%
8.4%

100%
9.6%
9.9%
7.7%

FY2022 exchange rates: US$1.00=¥136, €1.00=¥141; silver price=¥93,000/kg
Operating income exchange rate sensitivity: US$: ¥0.6 billion, €: ¥0.8 billion
Exchange rate assumptions (VISION2023): US$1.00=¥104, €1.00=¥124; silver price=¥84,000/kg
Exchange rate assumptions (FY2023 forecasts): US$1.00=¥136, €1.00=¥146; silver price=¥106,000/kg

31

FUJIFILM Holdings Corporation

100%
9.8%

10.0%
7.6%

100%
9.6%
9.8%
7.4%

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

semiconductor-related products is stronger than we assumed

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate GovernanceQ How is your progress with respect to return on invested

Data Section

ROIC below WACC (among Medical Systems, Life Sciences,when we formulated VISION2023. For this reason, we havecapital (ROIC)?

Advanced Materials, Graphic Communication, Business

decided to further increase growth-oriented investments,

Our ROIC in fiscal 2022 was 6.1%, up 0.5 percentage point

Innovation and Imaging), we will work to improve ROIC byparticularly in the Bio CDMO and Electronic Materials

year on year, due to an improved operating margin. In fiscal

reducing working capital to improve the cash conversion cycle

businesses, to capture this growth opportunity.

2023, however, we forecast ROIC of 5.9%, down 0.2(CCC) while increasing capital investment efficiency andIn the Bio CDMO business, we are currently expanding thepercentage point. While the operating margin will improve, we

improving profitability.

primary capacity of our tanks in Denmark (FDBD*1), with thehave to make large-scale capital investments exceeding thelarger-capacity production scheduled to start in fiscal 2024.

plan of VISION2023 (¥1,121.4 billion over three years, which is

Accordingly, we expect revenue to remain flat in fiscal 2023.

¥371.4 billion higher than VISION2023) to address strong

With respect to operating income, however, we will improvedemand for biopharmaceuticals and semiconductor materials.

operations amounted to ¥210.5 billion, down ¥113.4 billion

In the Bio CDMO business, we are currently in the large-

from the previous year, mainly due to an increase in year-end

the operating margin by passing on higher costs caused byinflation to our selling prices.
In the Electronic Materials business, we expect the market for

Q How is your cash flow management progressing?

In fiscal 2022 financial results, net cash provided byscale growth-oriented investment phase, which involves

receivables resulting from strong sales in the fourth quarter.

negative cash flow. In the final year of the next medium-term

Net cash used in investing activities totaled ¥323.2 billion,

semiconductor-related materials to begin recovering from the

management plan, however, we expect to generate positiveup ¥169.7 billion from the previous year, mainly due tosecond half of fiscal 2023, which will also benefit our business. In

cash flow, and capital efficiency will improve accordingly.

increased capital expenditures centered on the Bio CDMO

anticipation of significant growth in the semiconductor market,

We are working to make sure that ROIC exceeds thebusiness.

including in the area of generative AI applications, we will work toweighted average cost of capital (WACC), which is the hurdle

CCC for the year was 125 days, meaning we did not reach

expand the Electronic Materials business.

rate we have set, while taking into account global interest rate

the 114-day target set at the beginning of the year. This was

fluctuations and the business environment. For businesses with

due to an increase in inventory days resulting from a temporary

In the Business Innovation segment, print volumes in theoffice market are on a gradual downtrend. Nevertheless, wewill maintain steady sales of office equipment and supplies
through OEM supply partnerships and expansion into newsales regions, while increasing revenue from solutions andservices. As a result, we are targeting an increase in overall●Capital investment (including tangible, software and rental assets)¥1,121.4 billion

Group-wide¥371.4 billion increase●FY2023 cash allocation
We will maximize net cash provided by operating activities by strengthening portfolio management
and maintaining financial soundness while continuing growth investment centered on Healthcare
and Advanced Materials.

Cash In

Cash Out

Closing cash balance as of March 31, 2023

Closing cash balance as of March 31, 2024

segment revenue.
In the Imaging segment, demand for INSTAX instant photo¥268.6 billion

Other+¥15.9 billion

systems remains strong in North America and Europe, as well
as China, Japan, India and other countries. We also expect
demand to remain firm in the future, which will benefit¥750.0 billion

C/F from financing activities

Materials+¥53.6 billion

earnings in this segment.
Our next medium-term management plan will cover theControl working capital requirements by making operational
improvements aimed at shortening the CCC and enhanced cash management

Procurement of interest-bearing debt

¥300.0 billion

Healthcare+¥301.9 billion

three-year period starting in April 2024. At present, we areconducting in-depth Company-wide discussions with a view

C/F from operating activities

to announcing the plan around next spring. Our strategy of

before deducting R&D expenses

positioning Healthcare and Advanced Materials as growth¥550.0 billion*

drivers remains unchanged. Based on this strategy, we will(*Before deducting ¥165.0 billion of R&D expenses)

Approximately ¥200.0 billion

Shareholder returns ¥56.0 billion

M&A, etc.
R&D expenses ¥165.0 billion

Capital investment¥540.0 billion*(* Including tangible, software and rental assets)reiterate our specific management plan and guidance.
*1 FUJIFILM Diosynth Biotechnologies Denmark ApS

3-year total■ Healthcare

VISION2023/3-year total■ Materials■ Business Innovation■ Imaging■ Group-wide

INTEGRATED REPORT 2023

32

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

full-year dividend payout ratio is projected to be 26.7%.

buildup of inventory associated with the procurement ofcash equivalents) at no more than 2 times and receive credit

semiconductors and other parts and materials. Our target

ratings of at least single A (current ratings include long-term

for fiscal 2023 is 111 days. To this end, we will work on

AA– from S&P and long-term AA from R&I). Our current

continue balancing business growth and financial discipline

improvements mainly targeting inventories, including by

EBITDA is approximately ¥400 billion, and interest-bearing

while paying stable and continuous dividends, with a target

building a system to prevent new inventory backlogs anddebt at fiscal year-end was ¥376.2 billion. After taking intopayout ratio of 30%. We will also implement share buybacks

shortening lead times for all aspects of supply, such asaccount additional financing of ¥300 billion and an estimatedflexibly in accordance with changes in our stock price, taking

procurement, production and logistics.

cash and cash equivalents balance of around ¥200 billion (endinto consideration our cash position and cash flow situation atof fiscal 2023), our current net debt/EBITDA ratio is about 1.2

the time. Our total shareholder return (TSR; June 30, 2023

the Bio CDMO and Electronic Materials businesses, we havetimes. Therefore, we expect to be able to borrow up to aroundbasis) has outperformed the TOPIX Index and the TOPIX

factored in cash outflows in fiscal 2023 associated with the¥1 trillion from external sources.

Chemicals Index over the past three, five and 10 years. We

In addition to making large capital investments centered on

Our shareholder return policy remains unchanged. We will

acquisition of the semiconductor process chemical business ofEntegris, Inc., a U.S. semiconductor materials manufacturer(approx. ¥95 billion investment) and the conversion of two Bio

believe that the market recognizes our progress in increasing
Q What is your policy on shareholder returns?

corporate value, with Healthcare and Advanced Materials as
growth drivers, which is also reflected in our stable andIn fiscal 2022, we paid an annual dividend of ¥130 per share

CDMO subsidiaries—FDBU*2 (United States) and FDBK*3(up ¥20 year on year). In fiscal 2023, we plan to declare an annual(United Kingdom)—into wholly owned subsidiaries.

dividend of ¥150 per share, including a ¥10 commemorative

progressive dividend payments.

Under these circumstances, in addition to operating cash

dividend for the 90th anniversary of the Company’s founding,Q How is your business portfolio management progressing?

flow, we will consolidate funds from Group subsidiaries to themarking the 14th consecutive year of dividend increases. The

By strengthening business portfolio management, we willhead office and procure interest-bearing debt (totaling ¥300
billion) for growth-oriented investments in such areas ascapital expenditures, R&D, M&As and shareholder returns.
With respect to our business portfolio, we will leverage theBusiness Innovation and Imaging segments, positioned as
foundations for future earnings as reflected in VISION2023, toensure the stability of the Group’s overall management. Cashgenerated by those businesses will be allocated to the New/
Future Potential and Growth Driver businesses, namely
Healthcare and Advanced Materials, on a priority basis. We willcontinue maximizing operating cash flow by strengthening ourbusiness portfolio management. At the same time, we will work
to increase corporate value through ongoing investments ingrowth, particularly in Healthcare and Advanced Materials,
while maintaining financial soundness.

●TSR (Total Shareholder Return)
1 yearInvestment period

19.1%

FUJIFILM Holdings

3 years

5 years

10 years

Cumulative

Annualized

Cumulative

Annualized

Cumulative

Annualized

92.6%

24.4%

109.3%

15.9%

329.1%

15.7%

TOPIX

25.7%

57.8%

16.4%

49.3%

8.3%

152.4%

9.7%

TOPIX Chemicals Index

21.8%

31.3%

9.5%

24.2%

4.4%

185.7%

11.1%

Notes:· Total shareholder return (TSR): Total return on
investment, including capital gains and dividends· Both indexes include dividends· Annualized figures are geometric averages· Prepared by the Company based on data from
QUICK

●10-year trends
(%)

TOPIX
Chemicals Index

600

TOPIX

500

FUJIFILM
Holdings

400*2 FUJIFILM Diosynth Biotechnologies U.S.A., Inc.
*3 FUJIFILM Diosynth Biotechnologies UK Limited

Q What is your approach to capital structure?

We aim to grow our business while maintaining financial
soundness, without excessive reliance on leverage. Specifically,
we aim to maintain the net debt/EBITDA ratio (net of cash and33

FUJIFILM Holdings Corporation

300
200
100
0 June 2013 June 2014

June 2015

June 2016

June 2017

June 2018

June 2019

June 2020

June 2021

June 2022

June 2023

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governanceat FDBD.

maximize operating cash flow and continue making growth-

Data Section

customers while broadening our manufacturing network in

Meanwhile, we are constantly reviewing and optimizing our

Europe and the United States. We will also acquire our first

portfolio by withdrawing from business within the Healthcare

manufacturing base in Southeast Asia in the semiconductor

In the Medical Systems business, we will create greater

segment deemed to be non-core, as reflected in our decisionmaterials field, thereby further strengthening our global

synergies through the integration of FUJIFILM Healthcare

to sell FHC’s electronic medical record and medical-receipt

manufacturing structure. In addition, it will accelerate the

Corporation (FHC), which took over the diagnostic imaging

systems related business.

growth of our Electronic Materials business. This will allow us

oriented investments, centered on Healthcare and Advanced
Materials, while maintaining financial soundness.

to achieve our revenue targets (¥250 billion for fiscal 2024 andbusiness of Hitachi, Ltd. in March 2021. In addition, we
Q What are the implications of your acquisition of

acquired the digital pathology business of Inspirata, Inc. of the¥400 billion for fiscal 2028), two years ahead of our initial plan.

Entegris’s semiconductor process chemical business?

United States, marking our full-scale entry into that business.

Q What are the results of your dialogue with capitalIn the process, we will accelerate our business strategy withTo accelerate the growth of our Advanced Materials

medical IT at the core. We are aiming for 7% annual growth,business, positioned as a growth area, we will acquire themarket participants?

with revenue targets of ¥700 billion in fiscal 2026 andsemiconductor process chemical business of Entegris, Inc., a

In February 2023, we cancelled 100 million shares of¥1 trillion in fiscal 2030.

U.S. semiconductor materials manufacturer. Specifically,treasury stock, or 19.4% of shares outstanding before

we will acquire CMC Materials KMG Corporation (KMG), an

cancellation. We held treasury stock for the purpose of making

annual growth, with a revenue target of ¥500 billion in fiscal

Entegris Group company that operates a global semiconductor

large-scale M&As and the like. However, as we implement our2030. We will achieve this by making FDBU and FDBK into

process chemical business. This will enable us to expand ourcurrent management plan, which centers on growth-oriented

wholly owned subsidiaries and increasing production capacity

product lineup and strengthen our ability to make proposals toinvestments in capital equipment and R&D, we decided

In the Bio CDMO business, we are aiming for more than 20%

to cancel the treasury stock, judging that there will be no●Business portfolio management

immediate opportunity to utilize it for its initial purpose. We

Planting seeds from a long-term perspective

have received high acclaim from shareholders and other

Drive growth and profitability over the medium-term

investors regarding this matter, as some investors had raisedHigh

Market attractiveness (growth potential)

New/Future Potential■ Medical Systems: AI/IT systems,
new image processing systems■ Bio CDMO: Gene/cell therapies CDMO
■ Graphic Communication: Digital printing, inkjet■ Business Solutionsetc.

Growth Driver■ Medical Systems: E ndoscopes (flexible endoscopes, treatment tools),
IVD (equipment, reagents),
Diagnostic ultrasound systems (POC, stationary),
X-ray equipment, etc. (e.g., CT, MRI, DR)■ Bio CDMO: Antibody drug CDMO
■ Life Sciences: D rug discovery support (cells, culture media, reagents)■ Electronic Materials, Display Materials andOther Advanced Materials: Semiconductor materials, new materials

concerns about dilution.
We also regard price-to-book value ratio (PBR) as one of our
key performance indicators and always strive to close the gap
between corporate value and the demands of the stock
market. Through active dialogue with shareholders and otherinvestors, we will increase their understanding of our mediumto long-term growth strategy and enhance our corporate value.
Specifically, we will promote a growth scenario targeting
revenue of ¥3.5 trillion or more by fiscal 2030, with Healthcare
and Advanced Materials as the pillars. We will also work to help

Non-Core
Judged based on strategic compatibility, growth potential andprofitability

Earnings Base (cash cow)

investors understand that intangible assets, such as human■ Office Solutions

capital and intellectual capital, which have been the driving■ Consumer Imaging

force behind our business structural transformation, are key■ Professional Imaging■ Graphic Communication: Analog printingsources of our corporate value creation. To this end, we willetc.

continue actively engaging in dialogue with stock market
players.

Our profitability

Low■ Healthcare■ Materials■ Business Innovation■ Imaging

The arrows (High) indicate the flow of management resources, including cash.

INTEGRATED REPORT 2023

34

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Data Section

Strategies by Business Segment
Relevantmateriality

Healthcare

Environment

HealthNo. 1

share of the global
market for medical
imaging information
systems*2
Medical-use PACSSYNAPSERisks*1 Abbreviation for Contract Development & Manufacturing Organization.These are companies offering services topharmaceutical companies ranging from cell line development in the early stages of drug development, stability
testing, and development and manufacturing of clinical trial drugs to commercial drug manufacturing.
*2 According to a survey by Signify Research.

Segment results

Capital expenditures, R&D expenses
and depreciation

ROIC
Operating margin
Revenue (left axis)(Billions of yen)

1,000

970.0

Capital expenditures
Depreciation(%)(Billions of yen)

20

400

928.6

●LS Solutions(Life Science, Pharmaceuticals,
Consumer Healthcare and
CRO Business Development
Office)

801.7

49.0

11.5

500

10

●Bio
CDMO

200

20.9%

149.2
45.3

6.3
5.0

Healthcare
Revenue¥928.6 billion

FY2021 FY2022 FY2023(forecast)

0

50.5

nanotechnologies that enable development of pharmaceuticals to
address unmet medical needs
conditions and with superior quality control utilized in the process

56.0

FY2021 FY2022 FY2023(forecast)

Notes:
1. R&D expenses forecasts are not disclosed by segment.
2. ROIC for FY2023 is based on the initial full-year forecast (announced in May 2023).

FUJIFILM Holdings Corporation

diagnosis● Advanced chemical compounds, design capabilities and● High levels of technological capabilities to manufacture under consistent

4.6
103.9

Competitive advantages● Image processing and AI technologies for providing images suitable for

219.9

44.5

Unforeseeable large-scale changes in medical administration policies dueto healthcare system reforms, tighter laws and regulations affecting medical
devices, the postponement or cancellation of new drug development bypharmaceutical companies and changes in the business environment as thedifficulty of drug discovery increases, and intensifying competition in thebiopharmaceutical process development and contract manufacturingmarket because of technological innovation are recognized as risks.

67.0%

12.1%
11.1

35

●Medical
Systems

268.9

12.5

0

Revenue ratio by segment (FY2022)

R&D expenses

385.0

Opportunities
The aging of society is increasing medical expenses, and at the same time, harsh working
conditions in the medical field driven by a shortage of medical personnel are becoming
apparent. In addition, there are many diseases for which effective treatments have yet to beestablished, such as cancer, rare diseases and new infectious diseases. Biopharmaceuticals,
which have few side effects and are expected to be highly effective, have been attracting
attention in recent years as a means of treating and preventing these diseases. They havegrown to account for approximately 30% of the global pharmaceutical market, and themarket size of the CDMO business, which develops production processes and contracts out
manufacturing, continues to expand at an annual rate of approximately 10%.

Business Activities
Our Healthcare segment consists of Medical Systems,
which includes medical IT and equipment, and Life
Sciences, which includes the Bio CDMO business*1, Life
Sciences business, Pharmaceutical business, Consumer
Healthcare business, and the CRO Business Development
Office that was established in April 2023. In the life
sciences field, we have positioned CDMO and drug
discovery support as priority businesses.

Business Environment

development and manufacturing of biopharmaceuticals
Note: From FY2023, the amounts for revenue and operating
income from the non-destructive testing businesshave been reclassified from the Materials segment to
the Healthcare segment. The information for FY2022
has been restated to reflect this reclassification.

● World-leading iPS cell initialization and differentiation induction
technology and culture medium development capabilities

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Medical Systems
Business Strategies

Growth Strategy
Utilizing its proprietary image processing and AI technologies,
Fujifilm is advancing its business in a wide range of areas. These
include X-ray diagnostic imaging, endoscopy, ultrasound, in vitro
diagnostics (IVD) and medical IT solutions. In 2021, FUJIFILM
Healthcare (which took over the Diagnostic Imaging business of
Hitachi, Ltd.), for which the main products include CT and MRI
equipment, joined the Fujifilm Group. With medical IT at thecore of our business, we will continue developing and providing
products and services that meet the needs of the medical fieldby linking our various product groups around SYNAPSE, ourmedical-use picture archiving and communication system(PACS), which boasts the world’s top market share. In theseways, we will foster advances in medical care and help maintainand improve the health of people around the world.
To help resolve the major global issue of eliminating medical
disparities, we will provide our unique solutions, such as NURA,
a health screening business launched in India, and tuberculosis
screening that utilizes a portable X-ray imaging device.
X-ray
imagingdiagnostics

In vitro
diagnostics(IVD)

Ultrasounddiagnostics

CT/MRI

Endoscopy

Create new value and help resolve social issues by combining our industryleading AI/IT technology with our broad product lineup.
● Under the AI technology brand “REiLI,” drive the development of IT and AI technologies thatprovide new value to medical professionals along four axes: high image quality, organ
segmentation, computer-aided diagnosis and improved workflow efficiency● Create synergies in sales and development with FUJIFILM Healthcare● Expand the diagnostic solutions business in the endoscopy business● Engage in full-scale development of “SYNAPSE Creative Space,” a cloud-based AI technology
development support service● Launch the INNOMUSE brand of women’s health solutions to support women facing healthchallenges at various life stages with a broad portfolio of solutions

Field

Diagnostic imaging system

Product

Fluoroscopy
GeneralMobile x-ray DR panels/
Bone
Mammographysystemradioscopy systemsystemCR
densitometry

CT

MRI

Medical IT
UltrasoundsystemEndoscopy

HER/
HIS

PACS

IVD

FUJIFILM
Corporation

FUJIFILM
Healthcare
Corporation

TOPICS×

Medical IT
Solutions

MedicalSystems

Launch of the women’s health solution brand INNOMUSEThe Fujifilm Group is strengthening its solution proposals for breast cancer screening and other breast imaging areas. Here, we
combine a wide range of offerings, including digital radiography systems, medical IT, diagnostic ultrasound systems and MRI systems, tomeet the needs of medical practices. We are also accelerating the development of products that combine the Group’s technologies toprovide higher-value-added solutions. In the future, these efforts will be expanded from the breast imaging area to the area of women’s
healthcare (women’s health), including obstetric and gynecological examinations and bone density testing. We will implement a broadrollout of solutions under the brand name “INNOMUSE” to help maintain and advance women’s health.

INTEGRATED REPORT 2023

36

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Life Sciences
Growth Strategy
We will continue to make capital investments in the Bio CDMO and Life Sciencesbusinesses, which are expected to achieve high growth over the medium- to long-term, andaim to expand our business by providing one-stop value as a company that supports thecreation of cutting-edge biopharmaceutical products.

Business Strategies

Bio CDMO

FUJIFILM Holdings Corporation

Life Sciences(Drug discovery
support, contractdevelopment/
manufacture of celltherapeutic processes)

Contribute to improving medical accessibility and fulfilling unmet
medical needs through the stable supply of high-quality
biopharmaceuticals and the process development and contract
manufacture of cell and gene therapeutics, an advanced medical field.
●F urther expand our contract manufacturing business in cutting-edge
therapeutics by adding gene therapies, which are being strengthened
at our sites in Texas and Boston in the United States and the United
Kingdom, and cell therapeutics, which were launched at our
California site, to the antibody drugs for which production capacity is
being increased at our sites in Europe and the United States.
● Establish FUJIFILM Diosynth Biotechnologies Japan. Expand thecontract development and manufacturing business forbiopharmaceuticals in the growing Japanese and Asian markets
in cooperation with FUJIFILM Diosynth Biotechnologies (FDB),
which has accumulated a large track record of contract
manufacturing mainly in Europe and the United States.
● Achieve differentiation by establishing industry-leading highproductivity technologies in each modality, such as thecommercial continuous production system, which enables
integrated production of antibody drugs from culture topurification, and proprietary plasmid technology to build highly
productive cell lines for bispecific antibodies.
●E stablish “one-stop service offerings” including processdevelopment, drug substance manufacturing, fill/finish, assembly,labeling and packaging, from small-scale to large-scale production.

37

Business Strategies

Pharmaceutical

To support the pharmaceutical industry throughaggressive business development in the biomedical field.
● Drug discovery support: Globally supply and sell cells (mainly
iPS cells), culture media, cytokines and reagents as a set● Cell therapeutics (utilizing iPS cell technology and know-how):
Accelerate the development of therapeutics with alliancepartners and promote contract development and manufacturingservices● Strengthen the supply and customer
support capabilities under a global
production system that includes theUnited States, Europe and Japan

Help further develop the pharmaceutical industry byutilizing our unique Drug Delivery System (DDS)
technology, manufacturing facilities and infrastructure.
● Promote liposomal formulation development using our nanodispersion, analysis and process technologies.
● Use our lipid nanoparticulate manufacturing facilities andinfrastructure to build a process development and contract
manufacturing business for antibiotics such as penicillin andnext-generation nucleic acid drugs and mRNA vaccines.
● The decision to establish Japan’s first Bio CDMO site in Toyama
Prefecture will accelerate business growth by introducing adual-use facility that can produce biopharmaceuticals to meetcustomer needs in normal times and switch to vaccine
production in the event of a pandemic. It will also play a role in
the Japanese government’s initiative to strengthen domestic
vaccine production.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Business Strategies

Consumer
Healthcare(Cosmetics,
supplements)

Offer highly distinctive products that address broader
needs and contribute to people’s beauty and health.
● Cosmetics: Develop highly original and functional products
such as launching the ASTALIFT the Serum series by applying
liposome technology to cosmetics and enhancing the value ofthe ASTALIFT brand to meet a wide range of needs.
● Supplements: Respond to growing needs to maintain andimprove health, focusing on our Metabarrier series of functional
foods.

TOPICS

Full-scale entry into the drug discovery support CRO businessIn recent years, pharmaceutical companies and bio-ventures have increasingly collaborated
with the Contract Research Organization* (CRO), which possesses advanced analyticaltechnologies and expertise from the early stages of research and development, aiming to improve
the probability of success in new drug development and the efficiency of the drug discovery
process. To accelerate business growth in the life sciences field, we have established the CRO
Business Development Office under the Life Sciences Strategy Headquarters, which promotes
overall strategies across the Life Sciences business, and are entering the drug discovery support
CRO business in earnest. The Office will formulate the overall strategy for the drug discovery
support CRO business. We will first develop a drug discovery support CRO businessin Japan by combining the resources of our Group companies, including the Bio Science &Engineering Laboratories, which conducts research and development of biotechnology; FUJIFILM
Toyama Chemical, which has rich knowledge of drug discovery; and FUJIFILM Wako Pure
Chemical, which has a strong domestic sales network built through its reagent business and otherbusiness activities.
Specifically, we provide services for efficacy and safety evaluation and mechanism-of-action
analysis of drug candidate substances by combining human iPS cell-derived differentiated cells
developed and manufactured by FUJIFILM Cellular Dynamics, a leading iPS cell company, and AI(artificial intelligence) technology accumulated through our extensive product development
experience. We will respond to customer needs to reduce the number of animal experiments
using mice and other animals by taking advantage of the ability to reproduce the effects on thehuman body and conduct highly accurate evaluation and analysis. We will also be contracted toprepare samples of gene therapeutic drugs and analyze the molecular structures of those drugs.
In addition, we will provide drug discovery consulting services, drawing on our knowledge ofpharmaceutical research and development, which we have cultivated mainly in the fields of
oncology and infectious diseases.
* An organization that provides services such as drug efficacy evaluation and safety testing to support pharmaceutical research anddevelopment conducted by pharmaceutical companies, bio-ventures and academia.

INTEGRATED REPORT 2023

38

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Relevantmateriality

Materials

Environment

Daily Life

Corporate Governance

Data Section

Business Environment
Opportunities
Demand is growing for display-related materials and materials for LCDs
and OLEDs in applications other than TVs and monitors, such as in-vehicle

Business Activities

devices. In addition, the spread of 5G, autonomous driving and generative
AI is expanding the semiconductor market, leading to increased businessWe provide advanced materials for communication
devices, sensors and next-generation displays that
support people’s lives in the age of AI and IoT, as wellas graphic communication products and services. It
consists of Electronic Materials, Display Materials,
Industrial Products*1, Fine Chemicals, Graphic
Communication and Inkjet.
*1 The Recording Media business was merged with the Industrial Products business in
April 2023.
*2 According to a survey by Fujifilm

opportunities for semiconductor-related materials. Moreover, demand for

No. 1

digital printing is growing due to the increase in on-demand printing.

share of the global
market in protective
film for polarizers*2

Risks
Surging raw material costs due to soaring resource prices, intensifying

No. 1

competition from alternative materials due to the development andshare of the global market in color
resists for image sensors*2

commercialization of new technologies, and lower-than-expected demandin the offset printing market are recognized as risks.

Competitive advantages
Segment results

Capital expenditures, R&D expenses
and depreciation

ROIC
Operating margin
Revenue (left axis)(Billions of yen)

(%)

20

1,000

682.0

Capital expenditures
Depreciation

R&D expenses

26.5%

630.8

¥682.0 billion

10.8
39.9

9.6
500

8.2

9.8

10

50

8.5

32.8

32.4

6.9

44.6

39

FUJIFILM Holdings Corporation●Display
Materials●Industrial Products,
Fine Chemicals

13.1%

0
FY2021 FY2022 FY2023
0 FY2021 FY2022 FY2023(forecast)(forecast)
Notes:
1. R&D expenses forecasts are not disclosed by segment.
2. ROIC for FY2023 is based on the initial full-year forecast (announced in May 2023).

thinness and display size

● Rapid and accurate product formulation capabilities and development

10.3%

35.0

31.7

● Advanced film forming and coating technologies to support advances in● Cost competitiveness and stable supply

Materials
Revenue

68.0

46.4

● Advanced technologies, such as functional molecular technology for
imparting high functionality to film

●Electronic
Materials

91.0

71.6

705.0

●Graphic Communication

50.1%(Billions of yen)

100

Revenue ratio by segment (FY2022)

Note: From FY2023, the amounts for revenue and operating
income from the non-destructive testing business havebeen reclassified from the Materials segment to the
Healthcare segment.The information for FY2022 hasbeen restated to reflect this reclassification.

capabilities, and a global production and supply system adjacent tocustomers

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Growth Strategy
Under the Advanced Materials Strategy Headquarters, which serves a cross-divisional strategybuilding role in the field of advanced materials, we will continue creating new businesses that
foster acceleration of DX in various fields, including by developing 5G and other high-speed
communication networks and enhancing the functionality of our sensors and communication
devices, and by integrating the optical wavelength control and other technologies cultivated in
our various businesses. In addition, we will strengthen collaboration under the new organizationand structure of the Material Manufacturing Headquarters, which was established on July 1,
2023, and FUJIFILM MATERIAL MANUFACTURING, which was established by integrating fivedomestic production subsidiaries, further improving our manufacturing capabilities by utilizing
human resources with a wide range of technologies and skills and application development. In
these ways, we will strive to increase revenue and earnings.
In Graphic Communication, we will combine Fujifilm’s global customer base, mainly in commercial
and package printing, with FUJIFILM Business Innovation’s sales, technology and productcapabilities. This will expand worldwide sales of on-demand digital printers, provide various types of
DX solutions for brand owners and printing companies, and further accelerate improvements toprofitability through sales and production streamlining in the area of printing plate materials.

Business Strategies
Advanced Materials

Electronic
Materials

Display Materials●O ffer total solutions to solve customer issues by combining our technologies with a wide range ofadvanced materials that enable semiconductor miniaturization and higher layering density (e.g.,
photoresist, CMP slurry, polyimide and process chemicals newly added through acquisitions).
●C ontribute to increases in the pixelization, sensitivity and functionality of image sensors throughthe development of Wave Control Mosaic (WCM) materials for controlling wider wavelength light.
●S trengthen our supply system through aggressive capital investment in our global production facilities.
● Maintain a high market share for OLED materials.
● Maintain a strong market position in TAC film for LCD panels.
●D evelop and introduce differentiated products by leveraging our strengths in thin and multilayer coating.
●E xpand our business in materials for new applications, such as in-vehicle displays and smart glasses.

Industrial Products ● Expand sales of storage tape products to support data growth in the 5G/AI era.
(including the Recording
Media)● Increase sales of advanced material products utilizing our proprietary technologies, such as
EXCLEAR sensor film for touch panels.
● Create new businesses (e.g., rechargeable batteries/optical sensors/communication-relatedmaterials)

Fine Chemicals● Create new businesses (high-performance polymers/functional colorants/battery materials,etc.) by focusing on the three high-growth fields of life sciences, electronics, and theenvironment/energy.
● Help reduce environmental impacts by deploying “flow synthesis” and other innovative
manufacturing processes.

Graphic Communication

Graphic
Communication

Inkjet●D
 igital Printing: Accelerate global expansion of digital printing presses mainly in the commercial printing
domain and provide various DX solutions for brand owners and the printing industry by deploying
synergies from the integration of FUJIFILM Corporation and FUJIFILM Business Innovation.
● Analog Printing: Help reduce environmental impacts by shifting from treated to non-treatedoffset printing plates (currently under way).
● Growth markets (commercial printing/packaging): Develop, introduce and expand highprecision, high-productivity inkjet printer heads, food-safe water-based pigment inks, andcustom systems combining heads and inks to meet customer requirements.

TOPICSElectronic Materials business: Acquisition of semiconductor high purity process chemicals business

On May 10, 2023, FUJIFILM Corporation entered into a share purchase agreement*1 to acquire all
outstanding shares of CMC Materials KMG Corporation (Headquartered in Texas, the United States;
hereinafter “KMG”) for $700 million*2, a group company of U.S.-based Entegris, Inc. that operates a
global semiconductor high purity process chemicals (HPPC) business.
HPPCs are used to remove foreign matter in the cleaning and drying processes of semiconductor
manufacturing and to remove metals, oils and grease in the etching process*3 and are key products forthe semiconductor manufacturing process. Today, as semiconductors become more sophisticated,
they are becoming finer and more multilayered, and the manufacturing process is becoming more
complex. Against this backdrop, the use of HPPCs is increasing at an accelerating rate, and the market
for such chemicals is growing at an annual rate of 11%*4.
Through this acquisition, Fujifilm has gained access to KMG’s broad range of semiconductor HPPCs.
We will enhance our ability to make comprehensive proposals with a product lineup that covers a wide
range of semiconductor manufacturing processes to solve customers’ manufacturing process issues. In
addition to expanding our manufacturing bases in Europe and the United States, the acquisition of amanufacturing base in Southeast Asia, a first for Fujifilm in the semiconductor materials field, will
enable us to build an even stronger global manufacturing structure and contribute to the strengtheningof our supply chain. Furthermore, by combining KMG’s advanced purification technology with Fujifilm’s
sophisticated R&D and quality assurance capabilities that enable us to develop and manufacture awide range of semiconductor materials, we will develop and provide semiconductor materials thatmeet the most advanced needs, such as process chemicals for higher purity semiconductors, thereby
facilitating further semiconductor performance gains.
*1 The agreement was concluded between Fujifilm and CMC Materials LLC, a subsidiary of Entegris.
*2 The acquisition price will be determined by taking into account the cash and cash equivalents, interest-bearing debt and working
capital of the target company at the time of completion of the acquisition, and is therefore subject to change. The acquisition is
expected to close by the end of 2023, subject to the satisfaction of customary closing conditions.
*3 A process in which a semiconductor circuit is formed by transferring a circuit onto a silicon wafer using an exposure device and thenusing the corrosive action of chemicals to scrape away unnecessary metal films, oxide films and others.
*4 A
 verage annual growth rate over five years starting in 2021. Based on a semiconductor materials report by the U.S. research company Linx.

INTEGRATED REPORT 2023

40

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Relevantmateriality

Business Innovation

Environment

Work Style

Corporate Governance

Data Section

Business Environment
Opportunities
Increased support is needed for building and operating office and IT

Business Activities
The Business Innovation segment consists of the Office
Solutions business, which provides office equipment andsupplies, such as multifunction devices and printers, andthe Business Solutions business, which helps customers
address their business challenges through DX and workstyle innovation by providing system integration, cloudservices and multifunction device management solutions,along with BPO*1 and ITO*2 for core business processes.
*1 Business Process Outsourcing*2 IT Outsourcing

No. 1

market share by sales
volume for A3 color
multifunction devices in
the Asia-Pacific region*3
Apeos C7070

cyberattack threats and the spread of remote working. Also, there is a
growing market for business solutions and services that utilize AI and thecloud for DX to improve office work productivity.
Risks
A decrease in office print volumes due to the spread of remote working

Total number of DocuWorks document
handling software licenses worldwide*3 A
 ccording to a survey by FUJIFILM
Business Innovation

infrastructure with enhanced security/networking against the backdrop ofMore than 8 million licenses

and the trend toward paperless solutions are recognized as risks.

Competitive advantages● Excellent customer base leveraging a robust direct sales structure in
Japan and the Asia-Pacific region

Segment results

Capital expenditures, R&D expenses
and depreciation

Operating margin
ROIC
Revenue (left axis)

Capital expenditures
Depreciation(Billions of yen)(%)(Billions of yen)

1,000

20

60

838.1

R&D expenses●Business Solutions

33.7%

845.0

759.9

42.2

7.6

8.3
7.8

9.2

10

30

33.2

BusinessInnovation
Revenue

33.1¥838.1billion

7.9
12.0

0

FY2021 FY2022 FY2023(forecast)

0

12.6

FY2021 FY2022 FY2023(forecast)

Notes:
1. R&D expenses forecasts are not disclosed by segment.
2. ROIC for FY2023 is based on the initial full-year forecast (announced in May 2023).

41

FUJIFILM Holdings Corporation

66.3%

42.0

6.8

12.1

●Office Solutions

45.7

45.3
39.0

500

Revenue ratio by segment (FY2022)● Solid sales capabilities for helping customers resolve increasingly
complex and diverse management issues, a lineup of solutions andservices for problem solving, and proprietary document-related
technologies to support these offerings● Familiarity with business processes in various industries developed
through the office solutions business● Strong relationships of trust with a wide range of customers, from major
markets to the SMB*4 market, through our multifunction device andprinter business*4 Small to Medium Size Business

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Growth Strategy
In the Office Solutions business, we will further promote the expansion of new Fujifilm brandproducts and the expansion of global sales, including new OEM supply opportunities. In theBusiness Solutions business, we will accelerate sustainable growth and business portfoliotransformation through the expansion of core DX solutions, BPO services to achieve businessreform, and ITO services to support the construction and operation of IT infrastructure
environments, in addition to expansion of industry and business solutions.

Accelerate growth by strengthening solutions and services.
Value expected by customers
CHX (Customer Happy Experience)DX (Digital Transformation)

Achieve business transformation
through digital technologies

Evolve into an IT service provider(enhancement of existing solutions and services)Strengthen
in-house solutions

These ITO services provide a wide range of support from IT operation and management to improving
usage environments. Service options can be flexibly combined according to the customer IT environments,
and contracts can be made for as little as one PC.

Expand the support of customers’ core businesses
Microsoft Dynamics 365
Based on the concept of “Fit to Standard,” we support business transformations that efficiently and effectively adapt the

Expand into customer core businesssupport (new business development)

Evolve to managed
services for the entire IT
environment through the
integration of MPS and ITO

IT Expert Services

Develop the coresolution businesscustomer’s existing business processes to the system to be introduced. We realize speedy implementation by providing
business process templates packed with know-how in the cloud using a Business Process as a Service approach.
RIPCORD
FUJIFILM RIPCORD utilizes robot technology to digitize large volumes of printed documents at high speed,
and extracts and assigns attribute information to each document using OCR. We also facilitate customer DX
implementation by providing total support for the construction of data utilization environments.

DX (Digitalization)
Improve productivity
through the digitizationof operations

Expand industry/business solutions
Full-scale launch ofsolutions and services
in the Asia-Pacific region

DX (Digitization)
Improve operational
efficiency through thedigitization of information
Utilize MFPs as
office infrastructure

Roll out BPO services toachieve business
transformation

Enhance commercial
products throughstrengthened partnerships

New businessdevelopment(including M&A)

Maintain and expand MPS and print solutions* MPS (Managed Print Service):
Services that optimize the office output environment while maintaining and enhancing cost control, security and governanceITO (IT Outsourcing):
Services that support the development of IT strategies as well as IT environments from introduction to operation and management
BPO (Business Process Outsourcing): Services that provide core business process services on behalf of local governments, public institutions and corporations

TOPICS

Globally expanding our ERP business

On March 1, 2023, FUJIFILM Business Innovation (FB) acquired Australia-based IT company,
MicroChannel Services Pty. Limited. (and its affiliates), and relaunched it under the name FUJIFILM
MicroChannel Services (MicroChannel).
MicroChannel’s main business is sales and implementation support of mission-critical systems, such as
Microsoft Dynamics 365, in the Oceania region. It has a top-class track record in the market for serving
small and medium-sized companies. The acquisition marks the full-scale global expansion of FB’s ERP
business. Going forward, FB will leverage the highly experienced IT personnel and advanced technologicalcapabilities of MicroChannel to expand the value it provides to customers and accelerate the growth of its
solutions business, including through collaboration with the Fujifilm Group’s existing businesses.

Message from the CEO of FUJIFILM MicroChannel Services

We will grow as a business innovation partner by providing one-stop DX services to ourcustomers and achieving “CHX” (Customer Happy Experience) that contributes to theirsuccess beyond DX.
Evolve into an IT Service Provider
Bridge DX Library
We provide packages of solutions to address business issues tailored to six industries including
construction, manufacturing and medical institutions, in addition to issues affecting all industries such ascompliance with the Electronic Book Preservation Act, the invoice system and enhanced security. We

Brett Matthews
FUJIFILM MicroChannel
Services Pty Ltd CEO

Our strategic plan is focused on becoming the core of FB’s Solution
Business and a trusted technology partner for our customers around theworld. To this end, we are actively focusing on management integration
and realizing our DX strategy. Based on the excellent customer
experience built by our group, we will step up the global expansion of ourcore system sales and support business by providing one-stop services,from implementation to operation of diverse solutions, handled bydedicated teams in each solution field.

currently have a lineup of 146 solutions for small and medium-sized companies.

INTEGRATED REPORT 2023

42

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Relevantmateriality

Imaging

Environment

Daily Life

Corporate Governance

Data Section

Business Environment
Opportunities
Demand for events and travel has recovered, and demand for print

Business Activities
The Imaging segment consists of two businesses: Consumer
Imaging and Professional Imaging. In the Consumer Imaging
business, we offer everything from color film and instant photosystems (INSTAX) to printing equipment, color paper and photo
printing services. In the Professional Imaging business, we offer
high-end mirrorless digital cameras (such as the GFX series,
which delivers the ultimate in image quality, and the compact,
lightweight, high image quality X series), broadcast and cinema
lenses, long range surveillance camera and machine visionlenses, projectors and digital signage.

businesses such as instant photo systems and digital cameras is growing

Instant photo system
Cumulative worldwide
sales volume

More thanmillionunits

50

steadily. In addition, business opportunities are expanding due to thegrowth in demand for lenses resulting from the shift to IoT and 4K/8K
video, as well as the growth of the surveillance camera system market due
to heightened awareness of crime prevention and disaster preparedness.
INSTAX mini 12

New development
Equipped with a high-speed
102-megapixel sensor
FUJIFILM GFX100 II
mirrorless digital camera

Risks
Risks identified include an increasingly competitive environment in thehigh-end mirrorless digital camera market, declining demand for digital
cameras due to the improved capabilities of smartphone cameras, tighter
environmental laws and regulations, and confused supply chains due togeopolitical risks.

Segment results

Capital expenditures, R&D expenses
and depreciation

Operating margin
ROIC
Revenue (left axis)(Billions of yen)

Capital expenditures
Depreciation

(%)

500

40
410.3
30.3

R&D expenses●Professional Imaging(Billions of yen)

35.0%

19.1

20

Revenue ratio by segment (FY2022)●Consumer Imaging

65.0%

430.0

14.0 14.1

Imaging Revenue¥410.3 billion

8.5
17.8

18.6

20

10

11.1

9.6
5.5

0

FY2021 FY2022 FY2023(forecast)

0

FY2021 FY2022 FY2023(forecast)

Notes:
1. R&D expenses forecasts are not disclosed by segment.
2. ROIC for FY2023 is based on the initial full-year forecast (announced in May 2023).

43

FUJIFILM Holdings Corporation

distinctive products in pursuit of originality
precision processing and assembly) to support our appealing products

15.0

9.5 14.1
12.0

16.5

● Technological development capabilities to continuously create● Advanced technologies (photosensitive materials, optics, image design,

31.9

333.4

250

Competitive advantages● Product planning capabilities to uncover and anticipate user needs● Comprehensive capabilities to provide services from input (shooting) to
output (printing)● Strong market position as a leading company (global brand power andmarketing and sales capabilities)

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Growth Strategy

Sustainability

TOPICS

Our unique product line, which covers a wide range of imaging areas from input (shooting)to output (printing), has established a strong market position globally. With the INSTAX
instant photo system and the GFX/X series of high-end mirrorless digital cameras, we willcontinue to offer attractive new products backed by cutting-edge technology and create
new business areas by developing smartphone applications and proposing businessapplications. In the print business, including photo printing services, we will steadily respondto the demand for school and wedding photos, which has recovered from the COVID-19
pandemic. At the same time, in collaboration with FUJIFILM Business Innovation, we
will develop and introduce toner-based printers with improved image quality for use inphotography and focus on expanding the dry printing business. In addition, we will help solve
social issues including border surveillance, natural disasters and the remote inspection of
infrastructure facilities by expanding into new B-to-B fields, such as projectors andlong-range multipurpose cameras and the image inspection solution business, such as
Hibimikke (Crack Finder), a social infrastructure image diagnostic service.

Business Strategies

Consumer Imaging● INSTAX instant photo systems: Introduce various new
products and apps and promote cross-industry
cooperation to provide different ways to enjoy INSTAX
and expand its user base.
● Expand environmentally friendly dry systems (e.g.,inkjet, xerography) to meet strong smartphone printing
demand.

Professional Imaging● Roll out the GFX series and the X series of high-end
mirrorless digital cameras that are compact andlightweight and deliver outstanding image quality with
our proprietary color reproduction technology.
● Monitoring, measurement and digital signage: Promote
the image/video solutions business.

Corporate Governance

Data Section

The INSTAX series celebrates its 25th anniversary

The INSTAX instant camera, nicknamed “Cheki” in Japan since its launch in 1998, not only
allows users to capture their precious moments and print them on the spot but also serves as a
new tool for communication and self-expression. Currently, INSTAX cameras are used by many
people, especially the younger generation, in more than 100 countries and regions around theworld, including Europe, the United States, China and Southeast Asia.
We have also expanded the user base by adding hybrid cameras that incorporate digitaltechnology and a lineup of smartphone printers that allows users to easily print smartphone
images on the spot. In fiscal 2022, we launched two smartphone printers, the INSTAX mini Link 2
and INSTAX SQUARE Link. These new products made a significant contribution to theperformance of the Imaging business.
In development, we have worked to accelerate the growth of the overall INSTAX business byshifting from the traditional approach of providing functional value through the sale of goods
to the expansion and optimization of usage value through new products and services and new
business models driven by DX. In addition, our product planning, design and development teams
work together from the initial stages of product planning, which enables us to develop innovative,
unique and high-quality products.
As an entertainment brand that provides unique value, we will continue to create new value by
combining analog printing and digital technology to offer products and services that facilitate
spiritual enrichment and human connections.

A message from an INSTAX mini Link 2 planner“Cheki” prints are characterized by their analog, physical feel and unique texture, and are a popular
tool for unique and real communication particularly among younger generations, including Gen Z.
The INSTAX mini Link 2 smartphone printer can easily make “Cheki” prints from images stored on asmartphone, making it a digital product with an analog feel, which is part of its appeal. As the main
person in charge of the product planning team, I have been responsible for determining the directionof concepts, specifications and functions, as well as advancing the product toward commercialization.
We conducted analyses from various perspectives including market conditions, the features ofcompeting products and the needs of target users, and utilized raw feedback from users to develop asmartphone printer that users canenjoy playing with. We willcontinue to convey the appeal of
our products to satisfy customers.

Kaoruko Mochizuki
Consumer Imaging Group,
Imaging Solutions Division,
FUJIFILM Corporation

INTEGRATED REPORT 2023

44

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

R&D Strategies
R&D Vision
The silver halide photographic system, where the Fujifilm
Group traces its roots, is based on a combination of wideranging technologies, including film-forming technology,
particle-forming technology and precision-coating
technology. Since our founding, we have evolved byrefining and combining these technologies, which has

R&D Policies

Two Strategies: Digital Leverage and Open Innovation

By integrating our business strategies and R&D strategies
under the five research policies listed below, we willcontinue striving to develop robust new businesses that
help improve people’s quality of life and maintain growth inexisting business fields with innovative new products.

enabled us to transform our business structure into what it
In our future R&D activities, however, we are facing anenvironment that is changing continuously and rapidly. To
create value over the medium- to long-term, therefore, weneed to engage in R&D that considers how we can help
resolve social issues related to the Environment, Health, Daily
Life and Work Style, which are the priority areas of ourCreate new value by
integrating multiple
technologies invarious fields

long-term CSR plan, Sustainable Value Plan 2030. Withkeener sensitivity and an open vision, we will engage in R&D
to provide the values needed by society while placing
importance on our broad and expansive “imagination,” whichis inspired by changes in society and people’s behavior.

Fundamental
R&D policies

4
Accelerate
product
development

3
Enhance Groupsynergies

5
Improve thefundamental R&D
capability of eachresearcher andorganization

Our R&D structure consists of two laboratory groups: thefields and organizations with the aim of conducting cutting-edge

Divisional Laboratories, which are under the direct control oftechnology research with an eye to the future. Under the concept ofthe business units and conduct business-directed R&D, and“creating new value through the fusion of knowledge and innovation,”

the Corporate Laboratories, which are responsible for R&D on

our researchers, business managers and designers from various fields

fundamental technologies from a Group-wide perspective.

confront each other and engage in active discussions and projects to

For R&D that the two groups pursue together, members of both groups

45

business areas for many years. Going forward, we will

2. Open innovation
We are collaborating with a variety of partners, including
start-ups and universities, to multiply our core technologies
and thus create new value. The Open Innovation Hub at our
Head Office serves as a co-creation space that we also use
for collaborative activities tailored to market characteristics
in cooperation with our business divisions and researchlaboratories. Since opening in 2014, our Open Innovation
Hub has attracted 26,000 visitors from around 5,000
companies (as of March 31, 2023), resulting in various
forms of collaboration currently in progress.

create new and differentiated technologies and value.
Through this system of close coordination among related divisions

regular forums, involving management and research institute directors,

across the Group, we actively engage in wide-ranging discussions,where they hold technical discussions about future business direction.

from the current business perspective to the resolution of medium-

Furthermore, our Advanced Research Laboratories is an “opento long-term social issues. This enables us to delve deeper into

research space” that breaks down the barriers between technicalissues, examine their value and improve their effectiveness.

FUJIFILM Holdings Corporation

other things. We have also conducted R&D on AI in various

with knowledge accumulated in the cyber domain.

R&D Structure

meet to discuss and collaborate in their respective fields. They also havecomputer and the world’s first fully digital camera, among

Group’s unique strengths cultivated in the physical domain

Deepen and broaden
the Fujifilm Group’s
fundamental
technologies

2

From an early stage, the Fujifilm Group has embraced
the challenge of digitization, developing Japan’s firstfurther advance our R&D by using ICT to link the Fujifilm

1

is today and to continue creating innovations.

1. Digital leverage

Open Innovation Hub in the Tokyo Midtown Head OfficeSpecial Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Based on its corporate philosophy, theFujifilm Group has been developing andaccumulating technologies to decipher valuable
information from large volumes of image datain the fields of medical diagnostics and imaging.
Leveraging our strength in these areas, we aredeveloping AI technologies and deploying themin society while addressing the needs andchallenges of each of our businesses, including
healthcare and advanced materials.
In accordance with the Fujifilm Group AI
Policy, we are committed to creating new value

Combining the Fujifilm Group businesses with AI technology: example cases
The following are examples of how we use AI technology in our businesses.
[AI Imaging]
Using an AI chatbot platform developed in-house, we automate
highly specialized inquiry-related tasks about such matters as
equipment maintenance, which could not be handled by existing AI
systems. This enables us to systematize business knowledge andcentralize management. We are progressively introducing theplatform to enhance our support for digital camera customers.
The introduction of AI chatbots has enabled us to respond to
customers 24 hours a day, 365 days a year, which has led to cost
reductions. It has also enabled us to systematize business knowledge
and achieve uniformity of services, which helps improve bothcustomer experience (CX) and employee experience (EX).

[AI Pharmaceuticals]
Utilizing AI drug discovery technology in the contract research
operation (CRO) business
In April 2023, we launched AI Amino-Acid Mapping (AI-AAM), a
system that can automatically search for and design new candidate
compounds from the structural formula of a drug candidate
compound using our proprietary AI technology, in the form acontract research service. This enables researchers to explore anddesign new candidate compounds using only the structural formulaof the candidate compound, without the need for structural analysisof the target protein (disease-causing protein), which was previously
necessary. It also shortens the time required for new drug
development and improves the probability of success, thus
benefiting our customers’ drug discovery research activities.

[AI Medical Systems]
SYNAPSE Creative Space: Cloud-based AI support service thatassists in the development of diagnostic imaging AI
FUJIFILM Corporation and Japan’s National Cancer Center jointly
developed a research platform that enables physicians andresearchers to develop their own image diagnosis support AI
technology without programming or other specialized knowledge.
The entire AI technology development process, from project
management to the annotation of data with relevant information for
AI training, learning and technology trials, can be performed in thecloud. By also using learning models developed for medical imaging,physicians and researchers can develop AI technology without
programming knowledge.
By providing this service, we hope to encourage the developmentof AI technology to support image diagnosis of rare diseases in the
future. We are also looking to use this service as an educational tool
to improve AI literacy among healthcare professionals. In addition
to creating an environment for AI technology to support medical
practice, we are expanding and optimizing the content of the service
to help medical and research institutions develop AI technologies tosupport image diagnosis.

[AI Business Innovation]
Photo quality optimization by AI
The Revoria Press PC1120 production printer, which produces
commercial prints, is capable of automatically determining the scene
for each photo image to be printed and performing the appropriate
image correction and printing for each photo (e.g., by judging
whether the photo is too dark, too bright, backlit, or includes people
or a blue sky with poor color). It is a great solution for production
printers that require professional results.

implement this policy properly, we areenhancing literacy training for employees whodevelop and use AI while strengthening thedevelopment of AI human resources.

Fujifilm Group AI Policy Framework ccelerating new value creation with theAactive use of AI eveloping and providing products andD
services respecting human rights
Ensuring fair and appropriate use of AI
Ensuring the security of information to be used
 ulfilling accountability and ensuringFtransparency
Developing human resources capable of utilizing
AI in an advanced and appropriate manner+and resolving social issues by providing safe
and secure products and services. To

Data Section+

AI Policy

Corporate Governance+

AI Development and Utilization

Sustainability+

The Fujifilm Groupʼs Value Creation

Automatic
scene
detection foreach photo

People mode

Indoor mode· Human skincorrection· Brightness
correction· Brightness
correction· Texture
correction

Landscape mode

Outdoor mode· Sky color
correction· Noisecorrection· Backlightcorrection· Sharpness

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The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

DX Strategy
Our DX Vision engages all employees and aims to transformthe Fujifilm Group and society
Since 2014, we have worked actively to achieve digitalDX for a Sustainable Society

As stated in the DX Vision, we will target a dramatic

The Fujifilm Group is committed to realizing its long-termtransformation (DX) with the aim of using AI and IoT

increase in employee productivity to give us more time to

CSR plan, Sustainable Value Plan 2030, and its medium-term

technologies to transform the the Fujifilm Group. In 2021, we

create products and services that provide new value to ourmanagement plan, VISION2023, which outlines specific actions.

established the DX Strategy Council, chaired by the CEO andcustomers and help resolve social issues. The basic idea is

Under these plans, we are developing our business from the twovice-chaired by the CDO, as the highest decision-making bodyto establish and accelerate a virtuous cycle by using digital

perspectives of “resolving social issues through our businessfor promoting the DX of the entire Group. Its permanent

technology to drastically change the way we work. The

activities” and “considering society and the environment in our

members engage in discussion with the top management offoundation for realizing this vision consists of three pillars:

business processes.” It is difficult to strike a balance between

each business on how to determine DX-related investment

products/services, operations and human resources, as wellachieving corporate growth (by increasing the output ofpriorities and maximize the effects of strategy implementation.

as the IT infrastructure that supports these pillars.

products and services that help resolve social issues andWe also launched the All-Fujifilm DX Promotion Program,with the CEO as the program director, to spearhead theGroup-wide DX activities. Under the program, all of ourbusinesses formulate and promote DX strategies in theirrespective activities. Corporate departments, such as ICTStrategy, Corporate Planning and Human Resources, provide
cross-business support, and with the cooperation of outside
experts we are working to accelerate the DX of our business.

DX Promotion
Systemincreasing revenue) and reducing environmental impacts (byThe Fujifilm Group’s DX Vision and DX Foundation
Fujifilm’s relentless pursuit of a better world is entrenched in the
Company’s commitment to a more sustainable, healthier andsafer future. We are well prepared for taking on the greatest

support a sustainable society by fiscal 2030. The roadmap isthe connected contributions of every business, every team, andevery individual at Fujifilm.

raise the level of each business, focusing on growth areas.

DX Vision

Business Division

Business Division

Business Division

DX Promotion Team,
Business Division

DX Promotion Team,
Business Division

DX Promotion Team,
Business Division

DX Supervisor,
Business Division

DX Supervisor,
Business Division

DX Supervisor,
Business Division

Person in Charge of DX,
Business Division

Person in Charge of DX,
Business Division

Person in Charge of DX,
Business Division

Person in Charge of Support, Human Resources Division

Person in Charge of Support, ICT Strategy Division

Establish a foundation
supporting asustainable society

Scope and Impact

Create innovative customer experiences and solve social issues

External Experts

divided into three stages, and we are prioritizing investments to

DX Roadmap

President and CEO/DX Promotion Program Director

Person in Charge of Support, Corporate Planning DivisionIT
Development
DivisionDX throughout the Group. The aim of the roadmap is to create
and instill more products and services as the foundation to

Overall society/economic system

Realization of a sustainable society andresolution of social issues through the formation ofa new ecosystem and economic system(environment, health, lifestyles,
Outcome =and working styles)

Create new and highly profitable business models and dramatically improve productivity

DX Foundation

IT
InfrastructureTeamformulated a DX roadmap as a common guideline to promotetechnology, valuable and innovative products and services, andDX Strategy Council

DX Promotion
Program
Officethe effective use of digital technology is crucial. Therefore, we

challenges of our time through the use of advanced and digital

Chair: CEO Vice Chair: CDO

ICT Strategy
Division

reducing CO2 emissions and the like). To strike such a balance,

Products andServicesP rovide high-valueadded services
utilizing AI technologyT ransform business/revenue models

OperationsS hift to create workthrough dramatic
productivity
improvements
Fundamentallyreform work styles

IT Infrastructure

Human ResourcesD evelop and acquire
diverse DX talentOptimize personnel
assignments with adata-driven approach

Secure, flexible and robust infrastructure supporting the Fujifilm Group’s DX

Continuously optimize
usage value

Customers/
industries

Continuously update the valuethat customers gain through theuse of our products =Continuously optimize value
Goods =
through DX
Continuously
provideIn-house(as a Service)functional value
Ongoing sales of goods (products +consumables) (recurring subscriptions)Stage I

Stage II

Stage III
(FY2030)

47

FUJIFILM Holdings Corporation

Stage

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Value Creation Framework of DX Activities
To follow the DX roadmap, we established the DX Activity
Value Creation Framework, which shows what needs to beaccomplished to deliver optimal value to customers
through the use of digital technology from the perspectivesof “management” and “strategy” and with the three
aforementioned DX pillars in mind.

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Strategic perspectives
Sell “products + services” tocontinuously optimize the value ofcustomers’ product usage
Dramatically improve productivity
through digital twin technology

Data Section

Management perspectives
Products and Services DX

Sustained innovation

Operations DX

Create environments thatremove inefficiencies

Human Resources DX

Employee empowerment

Identify and educate DX humanresources

Solving social issues

Utilize X-informatics*

Customers and partners* Deployment of various types of informatics that utilize internal and external data (such as
Material Informatics and Process Informatics) in all aspects of DX

Digital Trust Platform: Supporting the Fujifilm Group’s DX“bucket relay system” for ordering and receipt, to be

reducing excess inventories. It also has the advantage ofTrust Platform, an information platform that will benefit

addressed and correct information to be shared in real

providing users with a sense of security that the Fujifilm

many businesses and operations that are promoting the DX

time. This will help optimize supply chain operations,Group, a provider of products and services, has built and isof their products/services and operations. It serves as anincluding by stabilizing the procurement of parts andoperating its own cloud-based information infrastructure.

The Fujifilm Group is developing and deploying its Digital

information infrastructure that allows the correct digital
information to be used safely and swiftly and in optimal realtime while ensuring trust. In developing the platform, we
introduced blockchain technology to decentralize andInformation coordination centered on the “Digital Trust Platform” (image)

manage transaction histories between companies andindividuals on the network. In 2016, the Informatics
Research Laboratory of FUJIFILM Corporation, which leads

Information

R&D on cutting-edge information science technology andfundamental software technologies in the Fujifilm Group,
started researching the blockchain technology, which

Blockchain

Share information safely and inreal time anytime, anywhere!
Promote collaboration acrossorganizational boundaries!
Transaction history information(distributed ledger)

Company A

provides robust tamper resistance for digital data based on
distributed management and encryption. In 2020, engineers
at FUJIFILM Business Innovation joined the laboratory, andthe synergies that resulted from the collaboration led to theDigital Trust PF

early realization of the Digital Trust Platform.
The platform enables inefficient internal and external
communication of information, such as the conventional

Company B

Company C

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The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Digital Trust Platform Application Examples
DX in supply chain management
To ensure the stable procurement of raw materials and parts, we share various information, such as required
quantities calculated from production plans, accurately and in real time with major suppliers. We are also
conducting demonstration tests in multiple product fields, including digital cameras.
Problems: before DX

Solution: after DX
Swift and reliable exchange
of information through directcommunication between theparties

Confirmation of order

Order entry

Confirmation ofdelivery date

Delivery date
response

Confirmation of
production status

Storage

Material order
Production
Delivery

The Fujifilm Group

Supplier

Production plan/
Logistics schedule

Production
planning study

Confirmation of order
Confirmation ofdelivery date
Confirmation of
production status

Digital Trust PF

Proactive
management

Supplier

Production plan/
Logistics schedule

Pre-shared plans
and appointments

Tight demand
immediately
before delivery

Backup control

Inefficient and uncertain
exchange of information
by bucket relay(e-mail, telephone, fax)

The Fujifilm Group

Evaluation by Outside Director

Order entry
Delivery date
response

Storage

Delivery

While the power of digital is essential for creating new business

Speed up theordering ofmaterials

models, many opportunities are lost due to time-consuming decision-

Increased
delivery date
response rate

resources. With this in mind, the Fujifilm Group established the All-

Material order
Production

Makiko Eda
Chief Representative Officer,
World Economic Forum Japan
Outside Director, Tokyo Electron Ltd.

Improvementof on-time
delivery rate

making or a lack of human resources to make the best use of digital
Fujifilm DX Promotion Program, which enables rapid and decisivedecision-making, including about organizational and process changes,
with President and CEO Goto, who is well versed in digital technology,
serving as program director. We are also actively investing in human

Effective use of the huge amount of data from the health screening center “NURA” for business expansion
We share and analyze huge amounts of health screening data, gathered through our health screening service
business in India, with partner companies in a completely anonymous and secure environment after obtaining theconsent of the examinees and in compliance with the legal systems of each country and region. We are considering
the possibility of linking this to new services, such as data sales, to help improve the health of examinees.

resources, and I highly regard the progress we have made to improve

Distribution of health screening data using the Digital Trust Platform

Sustainable Value Plan 2030. I believe that the Fujifilm Group’s advantage

The Fujifilm Group

Outside the Fujifilm Groupdigital sensitivity and skills throughout the Group.
At the Group, we assume that both the external environment and ourbusiness will always change. Therefore, we have been aggressively
pursuing M&As with an eye on the goals of our long-term CSR plan,lies in its ability to quickly incorporate the strengths of acquiredcompanies by taking advantage of DX-based systems and tools.

Organization
B

Organization
A

Company A

Data sharing

Data sales

NURA

Medical screening
service business

Anonymized screening data

Organization
C
Patient

The world is deeply connected, and improving access to healthcare
around the world is critical to the growth and stability of the global
Company B

January 2023, featured lively discussions on how to achieve zero health

Digital Trust Platform

disparities. Using digital technology is essential to extend the level ofCompany C

Organization
D

Company D

We will continue to promote the development of the Digital Trust Platform as a part of the Group’s “earning power.”

49

FUJIFILM Holdings Corporation

economy. The World Economic Forum’s meeting in Davos, held in

healthcare services enjoyed by developed countries to people aroundthe world. Deploying medical AI technology developed by the Group, I
am confident that we can make a significant contribution to eliminating
health disparities.

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Data Section

Intellectual Property Strategy
The Fujifilm Group’s Intellectual Property Strategy
The Fujifilm Group aims to create new value by integrating advanced and proprietary
technologies and developing distinctive technologies. We will continue making a positive differencein society by providing customers with products and services of the highest quality. Our Intellectual
Property Division focuses on proactive intellectual property activities to ensure that the value
created across our various corporate activities is linked to our competitive advantage andcontributes to our business, including by maximizing earnings.
Management strategy

R&D strategy

Commercialization

Businessstrategy

Shared strategy
Intellectual property strategy● Application/acquisition of rights● Subsidiary governance● IP landscape● Patent office management● Patent measures● Handling of disputes/lawsuits● Utilization of rights● Rewards for invention achievements● Patent search● Decision to maintain or abandon patent rights● Contract review● M&A● Standardization activities● System maintenance/management● Promotion of intellectual property DX

The Fujifilm Group’s intellectual property activities
The Intellectual Property Division works directly under the president to ensure close coordination
with management strategy. Its team consists of people responsible for IP technology, legal andliaison affairs, standardization and IP planning operations. Rather than subdividing tasks and fixing
responsibilities, the division enables each team member to have a broader scope of work. In
addition to having the high level of expertise necessary for the job, we foster a multifaceted
perspective by giving members diverse experiences and the opportunity to create innovation anduse intellectual property to realize business strategies, which also helps improve corporate value.
For more than 10 years, the Fujifilm Group has been actively engaged in (1) formulating IP
landscapes*1 to analyze the relationship with competitors from an IP perspective based ontechnical information, mainly patent documents, to gain a bird’s-eye view of entire markets, and (2)international standardization activities, including participation in formulating international rules at
the International Organization for Standardization (ISO) and the International ElectrotechnicalCommission (IEC)*2. The information we obtain from these activities is shared and utilized as“intelligence” with our business divisions and research laboratories and plays a role in our businessdevelopment activities. In addition, members of the Intellectual Property Division, who haveextensive knowledge of patents, designs and trademarks, are actively involved from the conception
stage of commercialization. This is to ensure that product concepts, our proprietary advanced
technologies, and functions that we want to highlight to customers are quickly and widely patented
from multiple perspectives.

To create intellectual property that will contribute to our operations, our business divisions, the R&D
division and the Intellectual Property Division work together to promote intellectual property
activities. For example, we hold an annual Intellectual Property Strategy Council, where the generalmanagers of business divisions and the R&D division, together with the general manager of theIntellectual Property Division, discuss and reach agreement on intellectual property measures. In
addition, Intellectual Property Division members visit customers together with representatives of ourbusiness divisions and R&D divisions to directly listen to customer requests and help them obtain abetter understanding of the distinctive points of our technology. This in turn helps us create highvalue intellectual property. Our efforts in this area have been highly evaluated in the industry. In theChemical Industry Competitiveness Ranking*3, we have maintained the top position since 2012.
*1 A term coined by combining the terms “intellectual property” and “landscape.” It means analyzing intellectual property information and utilizing
the results in corporate decision-making, including formulation of management and business strategies.
*2 An international standardization organization that develops international standards in the field of electrical and electronic technology.
https://iec.ch/homepage*3 A
 nnual survey by Patent Result Co., Ltd. Shows ranking of companies according to the number of patents they hold that are cited as reasons for the rejection of othercompanies’ patents. Ranks advanced companies possessing numerous innovative technologies that prove to be an impediment for competitors to obtain their own rights.

Key issues in intellectual property activities
In our active pursuit of M&A opportunities in Japan and overseas, we engage in intellectual
property activities across the Group, including at overseas Group companies. To this end, we hold
Global IP Summits (United States in October 2022 and Germany in March 2023), where we closelyshare information and collaborate with intellectual property managers of overseas subsidiaries. In
addition to supporting the intellectual property activities of Group companies in the United States,
Europe and other regions from Japan, we are strengthening collaboration with overseas productdevelopment bases by dispatching local representatives. We will continue reinforcing theintellectual property capabilities of the Fujifilm Group as a whole.

TOPICS

Received IEC’s Thomas A. Edison Award

The International Electrotechnical Commission (IEC)
bestowed its Thomas A. Edison Award to Yoshihiko
Shibahara, an employee of FUJIFILM Holdings. The Thomas A.
Edison Award is a prestigious award given by the IEC, which
establishes international standards for electrical andelectronic matters (IEC standards).
Shibahara, who received the award, has been engaged
in international standardization work in the field of electronic
displays at the IEC since 2007. Making use of his knowledgeof image evaluation cultivated in the photography field, he hashelped formulate international standards for the electronic
display field. The award recognizes his contributions to the IEC’s
operations over the years and his ability to negotiate with othercountries since he became international secretary in 2012.

Dr. Ralph Sporer, IEC Vice-President andChairman of the Standardization
Management Board, presents the Thomas A.
Edison Award to Yoshihiko Shibahara (right).

INTEGRATED REPORT 2023

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Discussion between General Managers of the Intellectual Property,
Medical System Research & Development and Design Divisions

The Fujifilm Group continues to innovate witha solid intellectual property strategy.

51

FUJIFILM Holdings Corporation

Sustainability

Corporate Governance

Data Section

Current Status of Innovation Creation through Three-Way Collaboration

How do the Intellectual Property, Product Development and
Design Divisions work together to develop medical systems?
Nabeta: FUJIFILM Corporation's Medical Systems Research &Development Center aims to help resolve various medical
issues around the world by developing X-ray diagnostic imaging
systems and endoscope systems that improve the quality
and efficiency of medical treatment. Society and markets
are now changing quickly, making product development more
and more difficult. In light of this situation, the Center works
closely with the Intellectual Property Division and the Design
Center from the so-called ground zero of product development.
Together, they focus on improving the accuracy and efficiency
of product development while remaining acutely aware of theappropriate use of intellectual property.
Sakuma: For example, we used AI technology*1 to develop
the CAD EYE endoscopy diagnosis support platform (which
supports the detection of polyps and other lesions duringcolonoscopies and differentiates between tumors*2 andnon-tumors*3). At the time, we closely examined the statusof other companies’ patent applications, particularly for AI
technology. We focused on proactively communicating andsharing analytical information with the product development
side, with two questions in mind: “If we proceed with
development in this direction, will other companies file many
patent applications?” and “If we file a patent application forsuch a technology, will it give us a competitive advantage?”
Nabeta: Investigations by the Intellectual Property Division
have revealed that the products of one of our competitors havecomplex specifications that combine AI technologies from othercompanies. This prompted the Medical Systems Research &Development Center to quickly formulate its product development
policy of “engaging in integrated in-house development ofendoscope technology and AI technology to create simple andeasy-to-use products for medical professionals.”

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

allows us to quickly recognize the existence of othercompanies’ intellectual property that could be an obstacleand discuss countermeasures on the spot, which has
greatly improved the quality and speed of productdevelopment.
Horikiri: I agree. Creating new products, technologies anddesigns is not an easy task and requires a considerable
amount of “thinking time.” By integrating intellectual property
and product development and design at an early stage, we
can avoid unnecessary repeated tasks and thus have moretime to think through the process for a better product.
*1 D eep learning, one artificial intelligence (AI) technology, was used in the design. The performance andaccuracy of the system does not automatically change after implementation.
*2 Polyps that are considered to be early-stage cancer or at the pre-cancer stage (precancerous

Kazuhisa Horikiri
Corporate Vice President and General Manager
of Design Strategy Office responsible for brandmanagement, FUJIFILM Holdings Corporation
Corporate Vice President and General Manager
of Design Center, FUJIFILM Corporation

lesion) and generally need to be resected.
*3 Polyps that are not tumors and are generally considered not to require resection.

Efforts to Strengthen Our Intellectual Property

How is the so-called IP landscape being used inHorikiri: CAD EYE has a function that lights up the outeredge of the endoscopic image displayed on the monitor
near the suspected lesion or frames the target area when alesion such as a polyp is detected. Initially, the Design
Center focused on the design of the display and user
experience of the monitor screens. Based on sound priorinformation provided by the Intellectual Property Division,
however, it shifted the focus to creating a display designthat is easy for medical professionals to understand, while
avoiding patents and designs from other companies.
Nabeta: In our former product development projects, we
had to check with the Intellectual Property Division for any
potential infringements of other companies’ patents andmake corrections if there were any problems after thetechnology or product had reached a certain stage ofdevelopment, which was often inefficient. Now, theIntellectual Property Division and the Design Center engage
in discussions from the early stages of development. This

Corporate Governance

Data Section

and other literature, we aim to increase accuracy by adding
the latest “wet” information obtained from people. This
includes information on industry trends obtained throughthe promotion of standardization activities.
Nabeta: In the product development divisions, we use the IP
landscape as a compass to help us implement the best productdevelopment strategy. It helps us confirm whether competitors
can easily catch up if we further develop a certain technology
or whether we should form a partnership with a venturecompany with superior technologies.
Horikiri: Designers can also use the IP landscape to grasp major
design trends in the market. In this sense, I feel that it functions
as a “reference book” and a “treasure trove of design ideas.”
Nabeta: During our most recent product development
project, the IP landscape served as a “heat map” forunderstanding the technical advantages and disadvantagesof our company and our competitors. It also helped us withproduct differentiation.

the Fujifilm Group?
Sakuma: In addition to patent information, we use publicresources, such as academic presentations, news releases
and papers, to shape our IP landscape. This enables us tocomprehensively analyze our own and other companies’
intellectual property and markets for the benefit of ourbusiness and management strategies. We also disseminate
information based on fixed-point observation, confirmingin advance the perspective needed by the information
recipient and focusing on that perspective. In the caseof medical systems, we try to provide the productdevelopment and business divisions with a bird’s-eye viewof the information they need. This includes the status ofapplications for medical devices awaiting approval from
the Ministry of Health, Labour and Welfare and trends inthe development of next-generation technologies, such as
AI. In addition to “dry” information obtained from patents

Toshiyuki Nabeta
Deputy General Manager, ICT Strategy Division, FUJIFILM Holdings Corporation
Corporate Vice President and General Manager,
Medical Systems Research & Development
Center and IT Solution Division, Medical
Systems Division, FUJIFILM Corporation

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The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

In addition to the so-called “macro” information provided by the
IP landscape, the Fujifilm Group places importance on “micro”
information obtained from actual markets and customers.

Sakuma: While the IP landscape enables us to understandmajor product and technology trends in the market, wemust also consider the importance of understanding andanalyzing micro information, including the real voices ofcustomers. This is because product specifications andperformance requirements change markedly according toregional differences and the like.
Horikiri: In the process of developing FDR nano, an ultralightweight mobile X-ray system for use in emergency
medicine and other applications, members of the Design
Center and the Medical Systems Research & Development
Center visited emergency medicine sites. While closely
observing the actions and workflows of medical personnel,

FDR nano

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FUJIFILM Holdings Corporation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

we identified a problem with existing mobile imaging units,
namely that they are difficult to maneuver on the spot, where
every minute counts, due to their large dimensions andweight. By determining the functions necessary to perform
rapid imaging in crowded environments and drasticallyreducing the number of functions, we achieved a significant
reduction in size and weight compared to existing
equipment. We also incorporated a four-wheel castercart and monitor with an arm, allowing easy movement
and rapid image review through manual operation.
In addition to these product development projects, inrecent years we have emphasized the importance of having
multiple people from the manufacturing side inspect thecustomer’s site to ensure that all parties involved are awareof each other. This includes identifying potential issues thatthe customer might not even be aware of.
Sakuma: Our development members and designers
identify customer needs and product specifications that weneed to achieve and share this information immediately
with the Intellectual Property Division. This is a great help
because it enables us to quickly formulate strategies aimed
at protecting our unique and differentiated technology inthe form of intellectual property.
Horikiri: Incidentally, we also invite members of the Intellectual
Property Division to participate in weekly meetings at the Design
Center to share information on new design projects and ask us
questions. I feel that our intellectual property is getting stronger
given the number of questions they ask.
Nabeta: Some members of the Intellectual Property
Division are stationed in the United States, where wehave a base for developing such products as SYNAPSE, a
medical imaging information system (PACS). The U.S.
market has a major influence on trends in medical systems.
Accordingly, we work with Intellectual Property Division
staff at Group companies in the United States to develop
and implement regionally based intellectual property
strategies, which I find encouraging.

Corporate Governance

Data Section

Sakuma: With multiple R&D and production bases
overseas, we place high priority on advancing high-quality
intellectual property activities on a global level, and we willcontinue strengthening activities based on collaboration
with local product development bases and Intellectual
Property Division personnel.

Naoko Sakuma
General Manager, Intellectual Property Division, FUJIFILM Holdings Corporation
General Manager, Intellectual Property Division, and General Manager,
Intellectual Property Legal Division, FUJIFILM Corporation

Intellectual Property Strategy: Challenges and Prospects

What should the future image of innovation
creation utilizing intellectual property look like?
Nabeta: In the Medical Systems business, we are targeting
revenue of ¥1 trillion by fiscal 2030. To achieve this, we willneed to not only expand individual product groups, such as
X-ray diagnostic imaging systems and endoscope systems,

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Sectionuser, such as “easy to move” and “hard to fall over,” andturned them into intellectual property in the form ofpatents and designs. That was a great outcome.
Horikiri: I think one strength of our intellectual property activities

but also increase the number of IT solutions that support
new approaches, such as building disease-specificsolutions. In this context, creating value by combining theknowledge, technologies and products of Fujifilm Group
companies will become even more important.
Sakuma: I agree. From the users’ perspective, the value we
provide is shifting from “products” to “products plus services.”
To this end, the role of the Intellectual Property Division inlooking at products and services across the board is becoming
more important. Going forward, we will strengthen our focus
on using a combination of in-house technologies and products
to create and protect the “service” aspect of our offerings.
Horikiri: For example, when developing the FDR nano,
we added a four-wheel caster cart to enable smoothmaneuvering in any direction. This, in itself, is not a novel

mechanism. However, to prevent the unit from tipping over
and achieve a lightweight, compact design enabling easy
handling in emergency medical-care settings, we had todevise a technologically advanced combination of solutions.
Nabeta: FDR nano is a compact, lightweight, highly mobile
unit. We developed it by combining our expertise in“ultrahigh-sensitivity systems” to produce clear images
even with small exposure, cultivated over many years
through the development and manufacture of medical
X-ray diagnostic systems, with our specialized medical
image processing and recognition technologies.
Sakuma: Yes, that’s right. If we focus only on the fact that
FDR nano is “smaller” than competing products, nobody
would notice the novelty of the individual technologies
used. By contrast, we focused on values prioritized by thein recent years is our emphasis on combining these technologies.
Nabeta: Let’s take the example of our endoscopic
retrograde cholangiopancreatography (ERCP) solution, aprocedure in which an endoscope is used to deliver contrast
medium into the bile and pancreatic ducts so that X-rays
can be taken to confirm the presence and status of diseases.
The solution evolved from Fujifilm’s endoscope and medical
image 3D analysis technologies and the X-ray moving image
technology of FUJIFILM Healthcare, established in 2021
when we acquired the diagnostic imaging business of
Hitachi, Ltd. I firmly believe that unique combinations likethis will result in even stronger intellectual property.
Horikiri: We are also looking at combining various products andservices of the Fujifilm Group to establish a facility where patientscan receive simple medical treatment and help eliminate regional
disparities in medical care. I believe this is another new innovationthat can be realized through combinations of solutions.
Sakuma: The Intellectual Property Division has connections
with all Fujifilm Group research laboratories, productdevelopment divisions, and business divisions and thus hasaccess to the latest technical information possessed by theGroup. To leverage this strength and accelerate the
combination of technologies and products across businessfields, we will monitor and share Group-wide productdevelopment trends. In so doing, for example, we hope tobuild an “intellectual property information platform” that will
facilitate the flow of intellectual property created in Business A
to the development of Business B. Ideally, we aim to establish
a system that allows us to quickly search for the technologies
we need when developing new products and services.
Horikiri: I like that. I think that viewing things throughthe prism of intellectual property will lead to stronger
horizontal ties within the Fujifilm Group.

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The Fujifilm Groupʼs Value Creation

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Nabeta: It is important to expand horizontal connections
across departments. For example, when performing breast
cancer screening using mammography, we need to capture
images at the same location as the previous screening inorder to accurately assess changes in the patient’s
condition. To assist with this, we developed AMULET
SOPHINITY, a digital mammography system that uses AI
technology*4 to guide the camera to the same positioning
as mammography images taken in the past. Its Positioning

Special Feature:
Co-creating Value with Stakeholders

Sustainability

MAP projection function allows the skinline*5 and nipple
position extracted from the image to be projected onto themonitor screen. To develop this function, our Imaging
Solutions Development Center, which is separate from theMedical Systems Research & Development Center, utilized
its expertise in professional-use projectors. I anticipate thatcollaborations like these will further accelerate as weevolve our intellectual property information into a platform.

Connecting design and IT to build a strategic base for accelerating value creation

Opening of FUJIFILM Creative Village

In May 2023, we opened the FUJIFILM Creative Village, a design and IT development base in Minami Aoyama, Tokyo.
All members of our Design Center worked on the entire design process, from concept creation to the building’s exterior,interior and facilities.
The center consists of two buildings: CLAY, a design development center that captures the potential needs of users
and gives shape to their solutions, and ITs, an IT development center that utilizes AI and ICT to create added value forbusinesses. The center will allow our designers and IT engineers to demonstrate their creativity and maximize theirperformance. By combining the power of both teams to generate innovation, we will create more innovative products andservices and help resolve social issues.

Exterior of FUJIFILM Creative Village (left) and “ITs,” the medical AI researcher floor.

55

FUJIFILM Holdings Corporation

Corporate Governance

Data Section*4 The nipple position detection algorithm is designed using deep learning, an AI technology.
The performance and accuracy of the system does not automatically change after
installation.
*5 The contour of the skin of the breast.

What are your future aspirations for each division?
Nabeta: We will work together with the Intellectual
Property Division and the Design Center to strengthen theGroup’s product development activities and create as
many products and services as possible that address
medical issues, such as regional health disparities, andhave a powerful intellectual property component.
Sakuma: With the advancement of AI technology andthe expansion of product and service offerings throughcollaboration among companies of different nationalities,
the situation for intellectual property has reached a turning
point. With this in mind, the Intellectual Property Division
will continue strengthening cooperation with the productdevelopment, design and other divisions to build a Fujifilm
Group that can provide more innovative value while
protecting and utilizing intellectual property fortechnologies and products with unconventionalfoundations.
Horikiri: Our intellectual property strategy is essential for
the Group to continue to shine as an honest brand trusted
by society. Therefore, we recently opened FUJIFILM
Creative Village, a new facility where designers and IT
engineers can work together on product development. I am
convinced that engaging in design with a sense of sincerity
while including people’s unspoken thoughts, with the
FUJIFILM Creative Village as the starting point, will help us
build a Fujifilm brand that continues to evolve. By
combining people and technologies in this way, we will
create innovative products and services that will become
the “next standard.”

The Fujifilm Groupʼs Value Creation

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Data Section

Human Resources Strategy
Focal Areas for Human Resources Development and Human Resources Strategy
We have achieved transformation and growth byembrace challenges and spearhead businessembracing the challenge of boldly changing our business

transformation.

structure. I attribute this to our employees, who

Message from General Manager of
Human Resources Division

We will foster human resources
and a culture in which each
employee sees changes asopportunities for growth,
embraces challenges andcontinues to create change.
Yasushi Zama
Corporate Vice President and General Manager
of Human Resources Division
FUJIFILM Holdings Corporation

To realize our long-term CSR plan (Sustainable Value

spearheaded the transformation and were not afraid toPlan 2030, SVP2030) targeting fiscal 2030 and ourtake on the challenge of change. I feel that the root of

medium-term management plan, VISION2023, we haveour company’s success lies in a corporate culture that

identified three priority areas of our human resources

continues to drive change. The source of innovation in thestrategy: human resources development, diversity andFujifilm Group is “employee power.” To continue delivering

health management. Under our “open, fair and clear”

sustainable growth in a rapidly changing businesscorporate culture, we are working to increase employee

environment, we need to continue developing humanengagement while creating an upward spiral of individual

resources who see changes as opportunities for growth,and organizational growth.

Fujifilm Group Employee
Development

To become a company that creates change
Realization of Value from Innovation

Improvement of employee engagement
Growth of theorganization

Growth ofemployees

100 people weave the +STORY*1 of their 100 career paths while eachand every diverse employee maximizes their individuality and abilities

Acquire the foundations of work
Problem formulation ability (STPD)*2,
professional expertise, technical skills
Regarding themselves as the main people,
thinking about essential issues beyond their own roles,
involving those around them and taking action

Acquiring the foundation for self-growth (+STORY)(1) Capturing maximum opportunities for growth from the changes they
face, taking on challenges and growing autonomously(2) Through dialogue, immediate managers guide subordinates while
understanding their values and ideas, thereby fostering a willingness
to take on challenges

Business basics (communication skills, logical skills, etc.)/IT literacy skills
Open, fair, clear culture, wide-ranging business fields/technologies*1 Assistance program to acquire the foundation for individual growth*2 Fujifilm Group’s unique management cycle: See-Think-Plan-Do (STPD)INTEGRATED REPORT 2023

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Data Section

Developing Leadership Talent
The Fujifilm Group’s human resources development focusesvariety of businesses and positions to broaden employees’

help employees obtain a solid view of the big picture and aon helping employees build a foundation for work and personal

perspectives through various experiences. Our aim is to help

sense of history. By turning the two wheels of “practice”

growth. Here, we place particular emphasis on employees’

employees, through practice, understand the importance ofand “learning,” we encourage the growth of our employees.

ability to identify essential issues and formulate and implement

continuous personal change and grow as human beings.

Under the system, we select next-generation leaders fromcycle called STPD (See, Think, Plan, Do), which encourages

change, there are many situations where the rules of thumb

employees in their 30s and next-generation management

employees to “look carefully at the facts, think until they

developed in practice do not apply. To make decisions onleaders from managerial personnel in their mid-40s. In theunderstand the essence of an issue clarify the issue and then

their own in wide-ranging situations never experienced

final stage, we have a training program called Management

forge ahead with a concrete implementation plan” as a

before, employees must understand essential matters andSchool for selected personnel from the general manager levelcommon approach to work across all businesses and functions.

principles of things and have a personal foundation on

and higher. In addition to systematically training key human

An indispensable part of developing leadership talent iswhich to base their decisions. To foster future leaders,resources, we prepare them for the future by giving them“practice.” The Fujifilm Group offers job rotations across atherefore, we developed a rigorous liberal arts program todifficult tasks that we call “tough assignments.”

The Fujifilm Group’s unique management cycle
See-Think-Plan-Do (STDP)

Education program system

FUJIFILM Holdings Corporation

DiversityV

Pre-promotion
training

Next generation
leaders

Marketing practice

Advanced
QC Problem Solving

Technology
presentation meeting

Project management
Ability to accomplish agenda<Basics>

Patent education

V promotion training

IV

Coaching+ STORY
design training

Presentation
Facilitation

Practical training in the field

MarketingAccounting
Finance
Management strategy

Training for new employees

III promotion training
II promotion training

Corporate finance
Financial statement analysis"Stage Up”(third year achievement
review) presentations
Step 2 training

IV promotion training

Relationship building and negotiation skills

KT method
Data analysis
Logical thinking
Critical thinking
Information structuring power
Questioning skills

Problem solving
Quality control
Seven quality control tools
Risk prediction
Safety andenvironmental
education

Overseas assignment, cross-cultural understanding, overseas governance

Setting of the reform agenda

Short-term dispatch, trainee, overseas MBAs, etc.

Strategic planning+STORY childcare salon

Development of subordinates

Work-life balance seminar

Next generation ofmanagement leaders

GlobalLanguage ability (self-study, conversation class, judgment of language ability)

Reflection and summary (feedback for next time)+STORY+STORY conversation

Training for newly
appointed managers

ⅢⅡⅠ

DX skills+STORY LIVEManagement school

Development of achievement scenarios
Sticking to it and doing it thoroughly

Technical
skills

Career life
design training

Establishment of objectives and targets
Drafting of concrete implementation measures

Agenda setting
skills+STORY connected workshop

Analysis of information and identification of issues

Business skill

Project management
Ability to accomplish agenda<Practice>

See
Collection of information

Mind+STORY Academy learning content (online)

Do

Selection

Enhancement of data utilization/Self-BI (Advanced)

Plan

Qualifying
roleWhite: All employees

Foundation for self-growth

DX literacy course/Self-BI (Beginner/Intermediate)

Think

Light green: Selected and self-nominatedFoundation for work

Job title

See

Senior Qualification

Another indispensable part is “learning.” When creating

Work steps

57

We also have a system in place for selecting key personnel.

key tasks. The Fujifilm Group has an innovative management

The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

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Co-creating Value with Stakeholders

Sustainability

Transforming Changes into Opportunities for Growth by Valuing Each Person’s “Story”
When developing human resources, we encourage each
employee to view changes as opportunities for growthand embrace challenges. We also ask supervisors toprovide motivation to take on challenges by obtaining athorough understanding of the values and ideas of theirsubordinates. To realize this goal, we offer the “+STORY”
self-development assistance program.
The program has various elements to support employees’
growth in multiple areas. These include “+STORY Dialogue,”in which employees reflect on their experiences over the
past year, gain new insights and knowledge throughdialogue with their supervisors, and foster motivation toembrace further challenges; “+STORY Academy,” a platform
to support and promote independent learning; and “+STORY
Live,” an online platform enabling diverse employees

to share their experiences and knowledge.
We also encourage our employees to grow autonomously
while embracing the “+STORY Challenge Cycle” (see figure
below), which links these measures to the “+STORY” philosophy.
“+STORY Dialogue,” which is the foundation of diversity
management, is separate from interviews aimed at obtaining
feedback on goals and evaluations. With “+STORY Dialogue,” adialogue is held once a year to help supervisors gain a thoroughunderstanding of the values and ideas of their subordinates.
The purpose of this dialogue is to help supervisors understandthe personalities of their subordinates and support the creationof stories for the subordinates’ future challenges based on theirown personalities and characteristics.
In fiscal 2022, “+STORY Dialogue” received positive responses
from 96% of executives and 82% of the general workforce,“+STORY Challenge Cycle” turning change into growth opportunities
Face the task at
hand and become
the main person

Self-improvement/Active learning
Acquire the knowledge, ability
and expertise necessary for the
next challenge. Refine it. Learn
from the experiences of others.

+Story Academy+STORY LIVE+STORY intranet website

Look back on experience
The experience gained throughwork, including encounters withpeople and feelings of joy andregret, is given meaning andused as food for oneself.
Talk with supervisors and get
their attention.

+STORY Dialogue/sheet+STORY design program

Face the task at hand and become
the main person (fostering ownership,

thoughts and passion)

With a vision of what you want to do andhow you want to achieve results in lightof your goals, you will cultivate yourpassion, thoughts and courage for work.

Self-improvement
Active learning
Learning
OFF-JT

Capturethe essence
Practice
OJT

Capture the essence
To make your dreams come true, seriously
think through what you should do, repeat
the reasons, and grasp the essence of it.
(ability to think with one’s own head)

Strengthen problem formulation ability
Challenge, execute and achieve

Look back on
experience

Challenge, executeand achieve(develop ability toaccomplish)

Take a panoramic view of the whole, facereality and change without escaping,
actively involve people around you
without being caught up in the frameworkof roles, etc., and work through to the end.

Strengthen problem formulation ability

Corporate Governance

Data Section

indicating a certain level of satisfaction with the program. We willcontinue working to raise the overall level of the Company whilestrengthening the dialogue skills of executives and employees.
Since March 2021, meanwhile, we have held “+STORY
Live” sessions once a month, with a total viewership of morethan 15,000 and an average of 700 to 800 employees
participating each time. Through these sessions, we foundthat many employees are highly motivated to share theirexperiences and ways of thinking, gain new insights andlearn from employees with various specialties, personalities
and backgrounds. At the same time, we are encouraging
employees to share their own stories to strengthen theirconnections with thelegacy and developmentof the Fujifilm Group’s
corporate culture.

President Goto sometimes
joined “+STORY LIVE” sessions
to encourage speakers.

“+STORY Academy”
Launched in 2023, “+STORY Academy” is a learning
platform with many online programs. It offers more than
2,000 diverse programs, ranging from specialized areas,
centered on business skills and MBA course essentials, topractical areas, such as languages, project management,
specialized technology and programming. In consultation
with their supervisors, employees select the programs
they need to develop their strengths and address areas
requiring improvement, enabling them to strengthen theirskills base to embrace the challenges of change.
Course examples
GLOBIS Unlimited (provided by GLOBIS Corporation)
Udemy Business (provided by Benesse Corporation)

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Strategy and Resource Allocation

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Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Achieving Greater Diversity
We have always valued the diversity of our employees, notreturn to work after childcare leave. Through these steadyof their diverse experiences and skills. In this context, wemeasures, we are solidifying our foundation for employees.

recognize the need to step up efforts to appoint exceptional

All components of the “+STORY” program received
awards for excellence in the Human Resource Development
category at the 12th Japan HR Challenge Awards 2023,
sponsored by the HR Research Institute. Moreover,
FUJIFILM Holdings was awarded the highest honor in the
Corporate HR category of HR Awards 2023, bestowed by
HR Vision Co., Ltd. and hosted by the HR Awards Steering
Committee. We are pleased that our efforts to develop thehelp employees embrace the legacy and corporate culturethat is unique to the Fujifilm Group. Going forward, we will
expand this service to overseas Group companies while
localizing it for each country and region.

Another challenge is the appointment of talented non-non-Japanese employees and promote the advancement ofJapanese employees. The percentage of non-Japanese employees

women in the future. For example, the percentage of womenin major position in the Fujifilm Group was 27.8% in fiscal 2022,

in managerial positions in Japan was 6.9% in fiscal 2022,

compared with our target of 35% in fiscal 2030. We arecompared with our target of 15% in fiscal 2030. To achieve

developing a human resources system that optimally allocates

our target, we need to change our systems and awareness.

and utilizes excellent human resources globally, regardless ofWith this in mind, in November 2022 we established thenationality or gender. We have also started building a system toDiversity, Equity & Inclusion (DE&I) Promotion Group*1 within

systematically identify, train and promote excellent humanthe Human Resources Division. Based on the concept ofresources. In our next medium-term management plan, we aim to“recognizing and supporting each other’s diverse +STORY,” weformulate a succession plan for fiscal 2030 together with theare taking measures to promote the advancement of women,

regional head offices and business managers in each region.

help employees balance work and childcare/nursing care, andThese are important priorities for helping employees

encourage male employees to participate in childcare. In thesemaximize their capabilities on the Fujifilm Group stage.

ways, we are working to transform our culture to ensure that

With this in mind, we plan to establish a DE&I Promotion

efficient work styles produce good outcomes. In fiscal 2022,
we held meetings on the theme of the so-called barrier of first
graders*2. We also held seminars on balancing childcare andhuman resources valued by the Fujifilm Group have beenrecognized, and we believe that continuing these efforts will

work for employees to attend with their supervisors when they

only with respect to gender and nationality but also in terms

Committee, chaired by the CEO, to accelerate DE&I measures.
*1 Reorganized to Diversity, Equity & Inclusion Promotion Office as of October 1, 2023.
*2 Refers to the time when a child graduates from nursery school and enters elementary
school, making it difficult for parents to balance work and childcare due to the difference
between school hours and regular working hours. This requires one parent to either shorten
his/her workdays or have someone take care of the child after school.

Dynamic Human Resources Portfolio
We have been drastically changing our businessGoing forward, we need to appoint human resources speedily

structure since the early 2000s, when the photographic

and appropriately so we can continue operating a dynamic

film market shrank rapidly. Specifically, we have sought

portfolio that aligns with our business strategy. To implement

to change the mindsets of our employees by developing

innovative business measures with an eye on the future, we

human resources capable of responding to our changed

must not only look within our existing organization but also findbusiness strategy. We have also been conducting job

good measures between organizations and formulate androtations across businesses and now believe we have laid

implement them spontaneously. This is one way to build athe foundation for a dynamic human resources portfolio.

dynamic human resources portfolio. Another characteristic of
the Fujifilm Group is that many employees work independently
in multiple organizations to implement future policies.

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The Fujifilm Groupʼs Value Creation

Strategy and Resource Allocation

Special Feature:
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Sustainability

Corporate Governance

Data Section

Health Management Unique to the Fujifilm GroupFor a company to develop, it needs a human resources

In April 2022, we opened the Fujifilm Group HealthSeven healthy behaviors in the Fujifilm Group and performance

Insurance Association’s “FUJIFILM Mediterrace Yokohama,”

92.0With this in mind, the Fujifilm Group engages in healtha health screening center for Fujifilm Group employees. The

88.0

promotion activities by working closely with employee

center uses our state-of-the-art medical equipment andorganizations, companies, the Fujifilm Group Health Insurance

medical IT systems, which incorporate AI technology, to

Association, and occupational health physicians and otherprovide state-of-the-art health checkups to our employees.

medical personnel. We have identified five priority areas

As a result of these efforts, FUJIFILM Holdings was selectedassociated with employee wellness: lifestyle-related diseases,

as a Health and Productivity Stock for the third consecutive

cancer, smoking, mental health and long working hours. We

year and as a Health and Productivity Management Outstanding

also encourage employees to adopt the “Seven Healthy

Organization (White 500) for the seventh consecutive year.

Behaviors in the Fujifilm Group” to develop healthy lifestyle

82.0

84.0
80.0

83.9

85.1

86.5

88.0

89.4

78.5

76.0
72.0

One

Two

Three

Four

Five

Six

Seven

Number of healthy behaviors adopted
Results of responses from 38,006 Fujifilm Group employees in Japan (December 2022)

Seven health behaviors in the Fujifilm Group and work engagement

habits. We check the implementation status of theseengage in more of the seven behaviors have better job
performance. In addition, we are proud of the fact that wehave made endoscopic examination a standard part of our
stomach cancer screening and have set the rate of
FUJIFILM Mediterrace
Yokohama

Work engagement score

4.0

behaviors once a year and have found that employees who

endoscopic examinations as a KPI to facilitate early detection.

Performance (%)

strategy with high importance on employee health.

3.5
3.0

2.8

2.9

3.1

3.2

3.3

3.6

3.4

2.5
2.0

One

Two

Three

Four

Five

Six

Seven

Number of healthy behaviors adopted

Results of responses from 38,006 Fujifilm Group employees in Japan (December 2022)

Targeting Further Growth of Employees and the Company
Understanding our employees’ sense of job satisfaction

consulting firm that helped us conduct the survey, this is a

In a new initiative, we have started “+STORY Connecting

and continuously improving employee engagement are alsohigh score compared to other companies in Japan andWorkshops” in several departments to share stories across our

key priorities of our human resources strategy. In December

overseas. Most important, however, is to convey the surveyorganization. This has led to improvement in the psychological2022, we conducted the Fujifilm Group Employee

results to each workplace, engage

safety of the entire organization, creating a virtuous cycle ofEngagement Survey, which indicates whether our employees

in discussions to create better workplaces, and translateincreased engagement. In our next medium-term management

share the Group’s philosophy and vision and act proactively.

the results into specific measures based on action plans

plan, we will focus on human resources development,

We received responses from 68,485 people, equivalent tofollowing discussions at each company and department. We

organizational development, and corporate culture succession

90% of the Group’s employees worldwide. For

will continue conducting the survey annually to establish aand development, with “+STORY” at the core. To continue driving“Engagement,” which indicates the percentage of positive

cycle of dialogue in the workplace, and thus foster further

change, we will enhance our human resources development

responses, we received a score of 80%. According to thegrowth of the Fujifilm Group and its employees.

system, which will serve as the foundation for change, andfurther enhance the value of the Fujifilm Group.
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Sustainability

Corporate Governance

Data Section

Employee Engagement Survey
Fujifilm Group Employee Engagement Survey 2022: Summary of Results

The Fujifilm Group’s Strengths and Challenges

Purpose of the survey

The results of this Engagement Survey
Understanding of andHigh level ofconfirmed that the Fujifilm Group’s overallalignment with corporate
compliancephilosophy
strengths are a pervasive “understanding
awareness
Communication
and brandof and alignment with corporate
between employees
and management inphilosophy and brand” and a “high level ofeach organization
compliance awareness” among individual
Improving work
employees. The results also strongly
processes for
Promoting diversity
increased productivity
showed that employees are committed toOpportunity for
Opportunity for
valuing the open, fair and clear corporate
improvement
improvement
culture set forth in the Group’s vision. In
other words, they approach their daily work with a strong sense of mission to continue providing
better value to society. These strengths are an expression of each individual’s “pride” and “senseof responsibility,” which are the two wheels that carry their work forward. By developing thesestrengths, we will continue targeting growth as a company that creates positive change in society.
On the other hand, the survey revealed some points that require improvement, namely,
the need to “improve work processes for increased productivity” and to “promote diversity.”
In Japan, we launched our “Work Style Innovation” initiative in 2014 and have since sough toadopt highly productive work styles. In 2022, we launched the “Work Style Innovation × DX”
initiative, through which we use the power of DX to simplify our organization and standardize
processes throughout the Group. To create an environment where diverse employees canremain active through multiple life stages, meanwhile, we are strengthening systems andseminars to help employees balance work and other responsibilities, such as childcare andnursing care. Communication between employees and management of each organization isconducted through the “+STORY” self-development assistance program, as well as the DE&I
initiative, which respects diversity.

Strength!

Realization of Fujifilm’s Vision

The Fujifilm Group aims to create ahighly engaged organization where
employees empathize with its vision
and act willingly and voluntarily, basedon a foundation of physical and mental
health and a high awareness ofcompliance. Through the Engagement
Survey, we will ascertain the current
status of engagement with employees
in Japan and overseas and link thisto measures for the joint growth of
employees and the Fujifilm Group.

Value from Innovation

Through the fusion of diverse “people, knowledge and technology” and flexible ideas,
we will create our own changes and change the world and the future into a better place.

High level of engagement
Growth of individuals and the organization
A state in which employees sympathize with “Fujifilm’s vision” and act with enthusiasm and initiative
Acquire thefoundation for work
Improve the qualityof work by acquiring
STPD, expertise andthe skills necessary
for growth.

Acquire the foundation
for self-growth

See change as an opportunity for
growth, take on challenges and growautonomously.
Through dialogue, immediate managers
train subordinates while understanding
their values and ideas and foster awillingness to take on challenges.

Understanding andempathy for the brandEmployees understandand sympathize with the
Fujifilm brand (the idealform) and feel thesignificance of their work.
A place (brand) that they
can be proud of.

Compliance (open, fair and clear conduct)
Mental and physical health (motivation to work, communication between
individuals and organizations, and psychological safety)

Survey overview

Survey target: Fujifilm Group (the Company and its consolidated subsidiaries; 75,474 employees)
Survey period: December 1– 21, 2022 (3 weeks)
Response rate: 90% for the entire Fujifilm Group
Survey method

As an indicator, we used “Sustainable Engagement,” which quantitatively measures
employees’ empathy with the Fujifilm Group’s philosophy and vision and their willingness tohelp achieve the Group’s goals. The three elements that make up “Sustainable Engagement”
are “Engaged,” “Enabled,” and “Energized,” and companies that score well in all three are said
to be capable of strong performance. Under these indicators, we asked seven questions, andthe percentage of Group employees who gave positive responses (1 or 2 on a 5-point scale)
was cited as our engagement score (indicator of “Sustainable Engagement”).
Overview of survey results

Our engagement score was 80%, regarded as a good overall result. This indicates that many of
our employees share the direction that the Fujifilm Group is heading and are acting proactively.

61

Course examples

Response rate

Number of responses

Engagement score

The Fujifilm Group as a whole(global results)

90%

68,48580%

FUJIFILM Holdings Corporation

Strength!

Future Activities
We will continue conducting the annual survey to identify issues facing the entire Group,
recognize the challenges faced by each Group company’s divisions, and implement measures
based on the action plans discussed through workplace discussions on each company’s
strengths and improvement issues. Through annual discussions, we aim to achieve growthfor both employees and organizations by transforming our work environment into one inwhich employees can work with high levels of motivation and vigor.

03
Chapter

Special Feature: Co-creating
Value with Stakeholders
CONTENTS
63

Meeting Stakeholders’ Expectations

64

Shareholders and Investors

65

Community

68

Government (Local Governments)

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Meeting Stakeholders’ Expectations
The Fujifilm Group discloses information appropriately and checks at every opportunity whether its business activities appropriately meet stakeholders’ requests and expectations.

Stakeholders’expectations and interest

The Group’s activities reflect the results of these checks.
Customers

Employees

Product safety, quality assurance

Ensuring occupational safety
and health

Environmentally conscious
designs
Provision of appropriate
information on products andservices
Increasing customer satisfaction

Developing and utilizing humanresources
Respect for diversity

p.64

Increasing corporate value
Returning profits appropriately
Appropriate disclosure in atimely mannerSocially responsible investing(SRI)

Suppliers

Opportunities to talk withmanagement

Usability evaluation meetings,
monitoring surveys

Contact with the Human
Resources Division, meetings
with the division

Showrooms, trade shows
Holding seminars
Websites, social media

p.65

Compliance, sexual harassment
helpline
Regular meetings between thelabor union and the Company,
the Health and Safety
Committee
Newsletters, the intranet

General meeting of shareholders,financial results briefings,
briefings for investors
IR conferences, meetings withindividual shareholders andinvestors
Integrated reports, shareholder
newsletters
IR page of the website
Contact point for inquiries(Corporate Communications
Division)

Governments, industry
groups, NGOs, NPOs

p.68

Contributions based on our main
business

Compliance with laws andregulations

Promoting CSR activities related
to the environment and humanrights, among other issues, in
supply chains

Respect for cultures andcustoms in individual regions,environmental conservation

Cooperation in implementing
public policies for addressing
social issues, joint research anddevelopment

Prevention of disasters andaccidents at factories
Educational support to future
generations

Customer center (contact point
for inquiries)

Surveys of product purchasers

Local communities,
future generations

Completely fair and transparent
transactions

Customer services and support

Customer satisfaction surveys

Engagement channels

Respect for human rights

Shareholders, Investors

Briefings for suppliers (e.g.,
about CSR procurement,
including green procurement,
and management of contained
chemical substances)
CSR Self-Checks (self-audits)and on-site visits by expert
teams
Dedicated website for suppliers

Meetings to discuss
environmental issues, factory
tours
Local volunteer activities
Regular meetings with local
governments (city halls, mayors,neighborhood community
association leaders, etc.)

Regular meetings with suppliers

Contact points for inquiries (eachbusiness site and each factory)

Contact points for inquiries(procurement functions, sales
functions)

Dispatching lecturers toacademic institutions, endowed
chairsEnvironmental education incollaboration with NGOs/NPOs

Dialogue, cooperation and support
to address social andenvironmental issues
Participation in committees in theindustry
Participation in creation ofguidelines in the industry, etc.
Making public comments throughindustry groups
Joint studies with governments
and industry groups
Proposals for solving social andenvironmental issues
Opinions on Sustainability Reports
Participation in dialogues withstakeholders
Charitable Trust Fujifilm Green FundWorking groups to address manydifferent CSR issues

Results, effects

Support to areas affected by adisaster in cooperation with NPOs

63

Improving products and services
based on voices of customers

FUJIFILM Holdings Corporation

Promoting mutual understandingof occupational health andsafety and comfortable working
environment through dialogues
between management andemployees
Improving workplaces based on
the content of consultations
provided over the helpline

Improving management and IR
activities based on opinions ofshareholders and investors

Improvement of issues based on
the content of inquiries throughdialogues with suppliers

Addressing issues based on
the content of consultations
provided by contact points forinquiries

Changing guidelines andapproaches
Reflecting the results of joint
studies with governments
and industry groups in the
improvement of products andservicesThe Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Shareholders and Investors
Actively promoting shareholder and investor engagement to achievesustainable growth and enhance corporate value in the medium- tolong-term

Sustainability

Corporate Governance

Data Section

With regard to corporate governance, we received many requests in fiscal 2021 to clarify
reasons for the choice of items of the skills matrix for the directors and the process of making
choices while we held a dialogue about the membership of the Board of Directors. We
discussed the issue throughout fiscal 2022. Discussions were held at meetings of the Boardof Directors, and outside officers participated in discussions outside of the Board meetings. A
new skills matrix was disclosed in the notice of ordinary shareholders’ meeting.
Employee engagement attracted a great deal of interest. We conducted an engagement

Expectations of Shareholders and Investors
The Group is constantly working to strengthen trust with domestic and overseas shareholders
and investors through constructive dialogue. Top management actively participate in financial

survey of all employees of the Fujifilm Group working in Japan and overseas in fiscal 2022
in cooperation with external entities. The results were favorable. We will continue to sharepolicies for sustainable engagement with shareholders and investors and run a cycle of issue
setting and improvement to get the Fujifilm Group to grow.

results briefings, road shows overseas and conferences, and meet with individual shareholders
and investors, listening sincerely to useful opinions through interactive communication withshareholders and investors. Major expectations that we have heard through dialogue inrecent years include disclosing the information necessary for investment decisions, including
management strategies, results and shareholder returns, and working to build a managementbase for improving corporate value, including non-financial data related to climate change
adaptation and corporate governance. Continued progress in the Group’s initiatives to achievesustainable growth and enhance corporate value in the medium- to long-term, rather than
improving results in the short-term, is attracting increasing attention.

Message from a Shareholder/Investor
Fujifilm is renowned as a company that has successfully transformed its business. Rather thanthe business transformation, however, I am impressed every time I hold a dialogue with Fujifilm
that the Company’s experience of succeeding in business transformation has reinforced its
foundations, something that might be superficially invisible but has seeds that will emerge.
In the age of VUCA (volatility, uncertainty, complexity and ambiguity), when it is difficult tothink ahead, Fujifilm has clear ideas based on its experience and uses the STPD (see-think-plando) cycle instead of the simpler PDCA (plan-do-check-

Results of Initiatives through Dialogue

adjust) cycle. In this way, Fujifilm is moving forward
carefully and steadily. Fujifilm is always striving to create

We aim to reduce the gap between intrinsic corporate value and market ratings byinnovations to resolve social issues and enhancecontinuing to disclose management strategies and our business plan, thereby enhancing thecorporate value in the medium- to long-term by adding

transparency of management, and incorporating shareholders and investors’ opinions andcreative elements to its competitive advantages, which

proposals into management.

are technology, talents and a corporate culture that

We canceled 0.1 billion shares of treasury stock in fiscal 2022 to optimize the number ofshares issued and eliminate concern about the dilution of shares in the market. Consequently,

encourages employees to boldly take on challenges.
As an investor, I very much hope that companies like

Mr. Megumi Sakuramoto

the Company’s shareholding ratio (based on the number of shares) has decreased fromthis one will continue to do business as companies

22.1% to 2.7%. Shareholders and investors had great expectations for the cancellation ofindispensable for creating a sustainable society. I am also

Executive ESG Analyst

treasury stock, and the cancellation was highly appreciated in our dialogue with them.

curious about Fujifilm’s next move to contribute to that.

Asset Management One Co., Ltd.

Stewardship Group, Investment Div.

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Community

Sustainability

Corporate Governance

Data Section

Solutions

Working to Stop Tuberculosis with

The mobile X-ray imaging devices that we commercialized are compact, lightweight, easy

Mobile X-ray Imaging Devices

to carry and easy to operate, allowing for TB screening tests even in environments without
X-ray rooms. As the built-in battery allows for use even in areas with unstable power
infrastructure, these devices can offer the chance for TB screenings even for people living inmountainous regions, remote islands and other remote areas.
We conducted a TB screening verification test using this device in member countries ofSocial Issues

the Stop TB Partnership*2 in 2020. The device was subsequently recommended as a new

Tuberculosis (TB) is one of the world’s three major infectious diseases, along with malaria
and AIDS, and one of the Sustainable Development Goals (SDGs) adopted by the United
Nations in 2015 is to end the epidemics of AIDS, tuberculosis, malaria and neglected tropicaldiseases by 2030. More than 10 million people worldwide are affected by TB annually, andaround 1.5 million people will die. Around 90% of those affected by TB are from developing
countries, especially in Africa and Southeast Asia. TB can be cured through early detection
and treatment, and the early identification of patients through screening tests is important tocontrol the spread of infection and reduce the risk of serious illness. However, in addition to alack of medical organizations in developing nations, transportation infrastructure and otherservices are often inadequate, making access to screening and treatment difficult, especially

TB screening method through the Stop TB Partnership in 2021, being recognized for its
effectiveness and utility. The World Health Organization (WHO) also issued new guidelines
in 2021, recommending a new TB screening test using chest X-rays in addition to theconventional sputum examination. It also recommends applying AI technology to chest X-ray
images for on-the-spot discovery of lesions in countries with insufficient specialist physiciansand other human resources.
*2 Established in 2000 with the goal of stopping TB, this organization is operated by the United Nations Office for Project Services (UNOPS). The
organization partners with 1,600 organizations, including international organizations, NGOs, governmental organizations and patient groups,
working to stop TB.

Our Mobile X-ray Imaging Device and Related Devices

for people living outside urban areas.
Compact and lightweight, with no power
supply needed.
This mobile X-ray imaging device can betransported and used to take scans anywhere.

Annual TB incidence per 100,000 people by country *1

Incidence per 100,000
population per year

*1 Source: The WHO Global Tuberculosis Report 2022

65

FUJIFILM Holdings Corporation

0<10
10–49
50–99
100–299
300–499≥500
No data
Not applicable

Digital X-ray diagnostic
imaging system (Cassette DR)

Mobile console

Lesion detection
software using AI*3

*3 Uses deep learning, a type of AI technology, in its design. System performance or precision will not be automatically altered after commercial
launch.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Community
Social Impact
We are actively engaged in activities to educate people on TB screening. For example,

Business Opportunities
FUJIFILM India aims to provide screening opportunities to 6 million people throughcases of TB in India account for 26% of the cases worldwide, making addressing TB a

awareness-raising activities and X-ray screenings to more than 30,000 people in India insignificant challenge. In light of the Indian government’s plan to stop TB by 2025, FUJIFILM

2023. If X-ray imaging equipment can be deployed to the primary healthcare centers

India has partnered with local provincial governments, medical institutions, the International

scattered around the world, it will become possible to perform simple medical exams,

Union against Tuberculosis and Lung Disease (The UNION), and the Stop TB Partnership* tofollow-up exams and more on-site. We are also currently developing software to centrally

conduct TB screenings across India using our mobile X-ray imaging devices. In the first phase,manage exams and treatment data, connecting systems across the world through a cloud-which began in 2021, examination cars visited 27 cities, conducting X-ray screenings forbased network. By visualizing the status of TB screening and treatment around the world inaround 12,000 people and leading to the treatment of 125 positive cases at medical

real time, we are aiming for further contributions through keeping tabs on the epidemic

institutions.

situation and quickly delivering medications and other supplies to the areas most in need.

Similar TB screenings were also conducted in Vietnam for around 11,000 people fromFebruary to April 2022, leading to the treatment of 77 positive cases at medical institutions.
* An organization established under the umbrella of the WHO in Geneva, Switzerland, in 2001. A multi-sector partnership (confederation) that works
with various partners to combat TB

Economic Impact on the GroupIn September 2021, we signed a long-term contract with UNOPS*1 for our mobile X-ray
imaging devices and have thus far supplied these devices to 30 countries. We also began
supplying these devices to The Global Fund*2 in March 2022.
*1 An organization of the UN to realize sustainable development through infrastructure construction, procurement and project management

Many residents lined up for a TB screening*2 The Global Fund to Fight AIDS, Tuberculosis and Malaria

Global Effort to Stop TB
FUJIFILM India Never Stop TB Screening :https://www.youtube.com/watch?v=QnJxN7JLRMEIn the second phase, which began in December 2022,
Providing food to patients who tested positive for TB

X-ray imaging

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Community

Sustainability

Corporate Governance

Data Section

Message from an International Organization
The International Union Against Tuberculosis and Lung Disease (The UNION) operates the

Message from an NGO

Corporate TB Pledge*1 office as part of a TB prevention project supported by the United States

Our organization focuses on increasing women’s access to healthcare services,
including reproductive health. We work with local partners in more than 20
countries in Africa, South Asia and the Middle East. In India, we are promoting the

Agency for International Development (USAID) and the Indian government. I am very pleased
that FUJIFILM India has also committed to participate in this initiative, in which more than 300
companies have taken part over the past three years. Thanks to FUJIFILM India’s assistance inscreening TB patients with the innovative CALNEO Xair and its“Never Stop Screening to Reduce Diagnostic Delays” project in collaboration withsupport for collecting transporting sputum, we were able to

FUJIFILM India and with technical support from The UNION. This project is part ofidentify over 500 TB patients under the Pradhan Mantri TB Mukt

the Indian government’s campaign to end tuberculosis (TB) and is being deployed in

Bharat Abhiyaan (PMTBMBA) campaign*2. I hope that Fujifilm

eight high-priority districts in the fight against TB: Assam (six districts), Kerala (oneand FUJIFILM India will continue supporting our efforts to end TB.

district) and Gujarat (one district).
One feature of this initiative is that it utilizes AI along with CALNEO Xair, Fujifilm’s
portable X-ray system. The initiative has been well received by screened patients andthe government for its work across wide-ranging areas in close partnerships with

Dr. Kuldeep Singh Sachdeva

local governments. Subjects who test positive receive treatment through theRegional Director,
The Union South-East Asia
International Union against
Tuberculosis and Lung Disease

government’s healthcare system and receive food donations from Fujifilm.
At the same time, the project faces some challenges (see list below).

*1 A joint initiative between USAID and the Indian government with the goal of
stopping TB by 2025. This initiative provides opportunities for participation by
private companies in TB prevention activities.
*2 A nationwide campaign launched in September 2022 by Ms. Droupadi Murmu(President of India) and the Indian Ministry of Health and Family Welfare. This
campaign aims to eliminate discrimination and prejudice against TB in thecommunity and spread the word that the disease is preventable and treatable. It
also encourages TB patients to receive nutritional support, nutritional
supplements, additional testing and vocational assistance for six months to up to
three years.

Accordingly, we are working with Fujifilm, The UNION and government officials to
study and implement solutions.
	Identifying high-risk regions(particularly in hilly areas where
mapping takes time)	Collecting and managing data	High turnover rate of ground staff

	Lack of trained X-ray technicians inagricultural areas	Lack of facilities for sputum
examinations

Message from an Employee
The population of India is expected to become the world’s largest in 2023, and while experiencing
remarkable economic growth, the country faces many social issues including infrastructure construction
and the healthcare system. In 2021, we began touring around India and conducting examinations using
FDR Xair based on our strong belief that we will contribute to the Indian society through our business.

As anticipation for Fujifilm’s role in the future

We faced many challenges, including the fact that it took around a year to apply and receive approval forincreases, I hope it will consider offering support on a

pharmaceutical affairs in India and our struggles in securing human resources and infrastructure in rural

two- to three-year cycle, rather than on an annual

areas, but the grateful voices of people who have been screened through our partnerships act as a major

basis, for programs like the current initiative that are

driving force for us. We will continue to pushexpected to bring major social benefits. I also hope thatforward with responsibility and pride in playing a

Fujifilm will conduct a social impact assessment of thispart in achieving the Indian government’s goal of

project and share its findings with other likeminded

stopping TB by 2025.

organizations and also provide support that will resultin changes in TB prevention behavior among society andindividuals alike.

67

FUJIFILM Holdings Corporation

Mr. K. Laxmi Rao
Senior Director
PATHFINDER INTERNATIONAL

Koji Wada, Managing Director,
and employees working to stop TB
FUJIFILM India Private Limited

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Government (Local Governments)
Contributing to the Rebuilding of People’s Lives throughEnsuring Quick Issuance of Victim Certificates using ICT

their requests and comments on improvements into consideration in system development.
As the first step in our lineup of victim certificate acceleration solutions, we developed theIntegrated Damage Survey System to handle the planning and progress management ofdamage surveys and a Home Damage Assessment App to support on-site damage severity
surveys using tablets. We began offering this software in June 2023.

Social Issues
There has been an increase in the number of natural disasters occurring in Japan, and theincrease in severity and intensity of torrential rains, earthquakes and other natural disasters due toextreme weather has become an issue in recent years.
Residents whose homes are damaged due to natural disasters can receive assistance forrebuilding their lives by having their local governments issue a victim’s certificate based on thedamages. These local governments are required to prepare for contingencies by establishing asystem for promptly evaluating damage and making appropriate judgments to protect the safety ofresidents and help them put their lives back in order.
However, in past disasters, including major earthquakes, there have been cases where it took
several months before victims were issued certificates. The more serious the damage, the more timeand effort it takes to conduct on-site surveys. The fact that this leads to delays in reconstruction for

Integrated Damage Survey System
We promote the digital transformation of the work process for damage surveys. In
survey planning, the system automatically establishes survey plans including number ofvictims, groupings and survey routes, and simulations can be performed on the system in
response to progress. Efforts in reporting are also reduced as survey progress is converted todata. Also, information needed for on-site surveys is contained within the app on the tablet,
thereby nearly eliminating the advance preparations needed to bring documents on-site.
Home Damage Assessment App
Surveys can be carried out while looking at directions on the tablet even for staff who have little
experience with on-site surveys and survey result data entry, standardizing results. Without apaper survey form, data entry becomes unnecessary, allowing the survey to be completed on-site.

victims due to a delay in the issuance of victim certificates has become an issue.
Comparison before and after introduction of the Integrated Damage Survey System and Home Damage Assessment App

Solutions
While promoting digital transformations in disaster prevention and mitigation, FUJIFILM

STEP-01

BeforeSurvey planning

STEP-02

STEP-03

Advanced preparations

On-site survey/
survey result data entry

System Services, a provider of BPO (Business Process Outsourcing) services for local
governments and companies across Japan, noted that the reason why operations for issuing
victim certificates took so long was that they involved manual processes done by humans
using paper forms.
We have conducted multiple demonstrations with local governments, considering thedigitalization of formulating house damage survey plans and damage certification surveys

After

STEP-01

STEP-02

STEP-03

Automation of survey
planning

Advanced preparations
practically unnecessary

Labor saved for on-site survey/
survey result data entry

to be a particular challenge. Starting in August 2022, we have provided multiple local
governments with free applications to support damage certification surveys and have taken

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Government (Local Governments)
Social Impact
Compared to conventional manual operations, a
reduction in man-hours and length of time of more than
50% can be expected through the introduction of theIntegrated Damage Survey System and the Home Damage

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Messages from Local Governments

From Joint Research to Problem Solving
Hita City has experienced disastrous heavy rain three times in the last decade.
Because of internal transfers and retirements, it was difficult to pass on
employees’ knowledge and experience, and we faced difficulties in handlingthe issuance of victim’s certificates given the limited number of employees.
While engaged in joint research with FUJIFILM System Services that began in

Assessment App, contributing to rapid reconstruction for

2021, we felt that their victim certificate acceleration solutions were truly avictims and a reduction in the burden placed on local

system for on-site support, and we chose to officially implement the system. We

Hita City, Oita

government employees.

hope that the system will continue to be updated to respond to new issues,(From left) Tadashi Hasebe, Disaster Prevention andCrisis Management Section; Seigo Sugawara, Tax
Affairs Section; Takahiro Harada, Tax Affairs Section

Economic Impact on the GroupIn regard to our achievements in digital transformation
solutions for local governments, we now account for about
70% of the market among local governments nationwide interms of integrated family register systems introduced. We
are aiming to have 100 local governments introduce oursystems by the end of fiscal 2026, and we will propose
services that meet the needs of each local government.

including large-scale natural disasters.

Experiencing the Convenience of the System during an Actual Natural Disaster
Komatsu City has been offering employee training and engaging incooperation with neighboring communities to speed up the issuance of victim’s
certificates. In August 2022, immediately after applying for a trial of the Home
Damage Assessment App, our city was hit by torrential rains, and we used boththe app and the Integrated Damage Survey System that FUJIFILM System
Services were developing at the time. Our ideals were incorporated into thesystem as is, and it felt like anyone could use the system after trying it out once.
We hope that these solutions will be further enhanced based on actualcomments from people who have used them during disasters.

Komatsu City, Ishikawa(From left) Yoshie Hara, Tax Affairs Section, Administrative
Management Department; Keita Watanabe, Tax Affairs Section,
Administrative Management Department; Hisao Hayashi, Tax
Affairs Section, Administrative Management Department

Business Opportunities
These solutions have been put into use by Hita City in
Oita Prefecture and Takeo City in Saga Prefecture sinceJune 2023, and in Uwajima City in Ehime Prefecture since
July. We will help support the early reconstruction of
victims’ lives by further strengthening our disasterprevention and mitigation digital transformation initiatives,
including linkage with the J-LIS* cloud-based victim
support system.
* Japan Agency for Local Authority Information Systems

Message from an Employee
Since our company was founded, we have been supporting local governments in reducing
employee workload and improving services for residents. Our disaster prevention andmitigation digital transformations began with a consultation from a local government inTokyo. They are solutions developed in cooperation with many local governments from athorough on-site perspective.
One of our strengths is our ability to offer services that align with the customer’s businessby fully understanding nationwide trends and policies and by utilizing accumulated
business knowledge and high-quality business operational ability. We will continue to offer
innovative services, aiming for a sustainable society.

69

FUJIFILM Holdings Corporation

Minoru Takenaka
General Manager,
Digital Strategy Promotion,
Business Management Group,
FUJIFILM System Services Corp.

04
Chapter

Sustainability
CONTENTS
71

Initiatives for Realizing a Sustainable Society
72

Environment

75

Diversity, Motivated Work Style, and Occupational Health and Safety

78

Human Rights

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The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Initiatives for Realizing a Sustainable Society
We are advancing initiatives throughout the Fujifilm Group that aim to realize a sustainable society in line with Sustainable Value Plan 2030 (SVP2030),
a CSR plan formulated to establish our long-term targets through fiscal 2030.

Basic Policy

Structure of Promotion

In August 2017, the Fujifilm Group established SVP2030, our long-term CSR plan that extends

Under the explicit policy of resolving the challenges faced by society through our business activities, theto fiscal 2030. SVP2030 includes the four priority areas of the Environment, Health, Daily Life andFujifilm Group’s approach of balancing contributions to the development of society with greater growth for theWork Style, as well as the two areas of Supply Chain and Governance, which form the basis of ourCompany’s business is rooted in the foundations of our management and corporate culture. To accelerate ourbusiness activities. Under these six areas, we have set 15 priority issues and promote activities

ESG initiatives, during June 2019 we constructively reorganized our CSR Group, which was originally situatedto achieve these targets as the vision for the entire Group. In addition to the numerical targets inwithin the Corporate Planning Division, and established the ESG Division as an organization directly under theEnvironment (see p.72), SVP2030 lays down numerical targets that serve as KPIs for HealthCEO. The ESG Division incorporates ESG perspectives into the foundations of the Fujifilm Group’s management

and Work Style. Specifically, in Health, we aim to improve access to medical care through theand undertakes the role of instilling ESG-related measures within the Company. At the same time, it discloses

introduction of products and services utilizing medical AI technology to all 196 countries andinformation on Group-wide investigations, proposals and activity results regarding ESG issues outside theregions throughout the world by fiscal 2030. Moreover, in the area of Work Style, we aim to offer

Company, communicates with stakeholders, supports the CSR activities of Group companies and manages the

50 million individuals with work styles that support workers in improving productivity andprogress of these activities. Chaired by the Company’s CEO, the ESG Committee also engages in decision-

demonstrating creativity by providing solutions and services that bring innovation to business. We

making regarding important ESG-related matters for the Fujifilm Group and reports on these decisions to thehave disclosed information regarding these targets and their progress through the Company’s

Board of Directors. The ESG Committee is composed of the Company’s CEO as chair; the executive officers

website, the Integrated Report, the Sustainability Report and other similar means. Moreover,

responsible for ESG, corporate planning and human resources; and the CEOs of the operating companies

we take various opportunities to verify that our business activities satisfy the demands and(Fujifilm and FUJIFILM Business Innovation). Related executive officers and general managers of businessexpectations of our stakeholders, and reflect the results within our overall business activities.

divisions, among others, also participate in the discussions depending on the agenda item.
FUJIFILM Holdings Corporation

Sustainable
society

Creating new value
Corporate Slogan

Resolving social issues
Considering society and thethrough our business activities environment in our business processes● ESG Committee Secretariat

ESG Committee
Deliberation and decisions on important mattersrelating to the ESG activities of the Fujifilm Group
Chairperson: CEO of FUJIFILM Holdings
Secretariat: ESG Division of FUJIFILM Holdings

Operatingcompanies
FUJIFILM Corporation

FUJIFILM Business
Innovation Corp.

Sustainable Value Plan 2030
Ethical conduct based on the Charter for Corporate Behavior
Corporate Philosophy

71

FUJIFILM Holdings Corporation

Function of the ESG Division of FUJIFILM Holdings● Activity promotion across the Fujifilm Group· Develop and manage progress of policies,
strategies, priority issues and measuresdetermined by the ESG Committee· Promote compliance and risk management· Support the Fujifilm Group’s CSR activities (collectinformation and conduct analysis and evaluation)· Promote public information disclosure anddialogue with stakeholders● Consultation Offices for the entire Fujifilm Group

Function of the ESG department of each operating company● Formulate and implement a CSR activity plan
● Ensure thorough compliance and conduct risk

ESG department of each operating company(including our shared service companies)

management● Promote communication with stakeholders● Report CSR measures to FUJIFILM Holdings’ ESG

Committee

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Environment
In terms of climate-related initiatives,

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Metrics and Targets● Target for contributing to CO2 emission reductions in society
through products and services

The Fujifilm Group aims to achieve practically zero CO2 emissions
from energy consumed by the Company*1 by fiscal 2040 (carbon zero),qualifications for participating in global

by maximizing energy use efficiency and promoting the introduction ofbusiness, we have moved up our targets

renewable energy. In addition to promoting energy conservation andfor decarbonization and are promoting a

introducing renewable energy, we will continue to contribute to the

new environmental strategy that aims to

reduction of CO2 emissions in society by operating the Green Value

achieve zero CO2 emissions from energy

Products system, which internally certifies products and services that

consumed by the Company in 2040.

excel in reducing environmental impact.
In addition, of the energy requirements in the supply chain, fuel andAddress climate change
Promote recycling of resources
 ddress energy issues with the aimAof realizing a decarbonized society
Ensure product and chemical safety

Data Section

Addressing Climate Change (Information Disclosure Based on the TCFD Recommendations)

under the concept of meeting the

Sustainable Value Plan
2030 Initiatives

Corporate Governanceelectricity use is highest in the upstream materials and chemicals

Contribute to a cumulative reduction of 90 million tons of CO2
emissions in society by FY2030*1 Direct emissions from the Company during the product manufacturing stage (Scope 1) and indirectemissions from the use of electricity and steam supplied by other companies (Scope 2).

Risk Management and GovernanceAs part of risk management, the Fujifilm Group has introduced a system tomonitor environmental performance related to climate change on a global basis anduses this system to identify risks by monitoring emissions of CO2, fluorocarbons andother greenhouse gases, as well as energy consumption volumes, at each businessindustry. We are committed to fulfilling our responsibilities as acompany in the materials and chemicals industry by balancing businessgrowth with CO2 emission reductions.

site. The Energy Strategy Promotion Committee analyzes factors involved in theidentified risks and reports on these to the ESG Committee before we make● CO2 emission reduction target throughout the product life cycle

decisions regarding a response. To assess the risks of climate change, we utilize the● CO2 emission reduction target for energy used by the Company

and future responses. Moreover, we apply scenario analyses based on the TCFD

● Target for the introduction of renewable energies

factors. The ESG Committee discusses and makes decisions on issues and targets

Reduce CO2 emissions by 50% by the end of FY2030 (compared with FY2019)
Reduce CO2 emissions by 50% by the end of FY2030 (compared with FY2019)
Convert 50% of purchased electricity to electricity derived from renewable energy sources by FY2030

Provide products and services with significant CO2 emission reduction effects in society
1CO2 emissions from energy used by
the Company (Scope 1 + 2*2)

2

Achievement of net zero emissions by FY2040(50% reduction in FY2030 compared with FY2019)

Entire productlife cycle

Manufacturing(Scope 1 + 2)

50% reduction in FY2030 compared with FY2019

recommendations to implement countermeasures against risks caused by external
regarding climate change and reports on these to the Board of Directors.
Energy requirements in the supply chain

Heat(fuel)

Advanced materials in
the materials segment arelocated upstream

Electric power

50% reduction compared with FY2019

Upstream:
Materials and chemicals

Midstream:
Components and parts

Downstream:
End productsProtective films forpolarizers (Fujifilm product)

Liquid crystal panels

LCDs(Scope 1 + 2)
Achieve net zero
emissions by FY2040

Procurement,
transportation,
use and disposal
FY2019Reduction of CO2 emissions
throughout the product life cycle

internal carbon pricing (ICP) system to investigate the assumed financial impacts

FY2030FY2040To retailers
andconsumers*2 Scope 1: Greenhouse gas emitted directly by the business itself (fuel combustion, industrial processes); Scope 2: Indirect emissions from the use of electricity, heat and steam supplied by other companies

INTEGRATED REPORT 2023

72

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Strategies: Risks and Opportunities by Analysis Based on Scenario
For scenario analysis based on the TCFD recommendations, we have set and evaluated two types of climate-related scenarios—1.5°C and 4°C—in reference to low-carbon 2°C scenario based on the Representative
Concentration Pathways (RCP) 2.6 through 8.5 described in the report of the Intergovernmental Panel on Climate Change (IPCC) and Energy Technology Perspectives (ETPs) of the International Energy Agency (IEA).
One is the 1.5°C scenario in which more rigorous measures are implemented to build a decarbonized society and effectively keep the rise in temperatures by the year 2100 to 1.5°C compared with the level during theIndustrial Revolution. The other is the 4°C scenario in which the temperature rises by 3.2°C to 5°C over the Industrial Revolution level as a result of failing to implement measures that surpass those currently in place.

4°C
Scenario

Measures surpassing those in place at present are not implemented,
resulting in the average temperature rising by the year 2100 by 3.2°C
to 5°C over the level during the Industrial Revolution. Natural disasters
will increase in intensity and irreversible ecological changes will occur.

Business Risks

Physical Risks

1.5°C
Scenario

Rigorous measures are implemented to build a decarbonized society, keeping
temperature rises by the year 2100 down to 1.5°C in comparison with the level
during the Industrial Revolution.

Transition risk

Impact on production facilities due to extreme weather conditions, suspension of supply ofLaws and regulations for carbon pricing systems will be introduced in each country/region, which will be

raw materials for products and factory shutdowns due to power outages

a cost-increasing factor. Assuming that the Fujifilm Group itself emitted 980,000 tons of Scope 1 + 2 CO2[Countermeasures] Promote measures such as the decentralization of production bases and raw material
suppliers by formulating business continuity plans (BCP) and securing a stable power supply.
Instability and soaring prices of plant-derived raw materials due to ecological changes
caused by climate change

in FY2022 and that the carbon tax per ton of CO2 emitted was ¥12,000, the financial risk is estimated tobe approximately ¥11.7 billion.
[Countermeasures] Accelerate capital investment for decarbonization by utilizing an internal carbon pricing
system.

[Countermeasures] Reduce the amount of raw materials used by producing thinner films made from plantderived raw materials and promoting the recycling (reuse) of multifunction devices in the area of business innovation.
Developing resilience of social infrastructure against disasters● Highly sensitive camera products that can monitor rivers and sea surfaces at night and instormy weather

Business Opportunities● Deterioration diagnosis technology for bridges, levees, etc., using high-precision image

73

analysis and AI technology● Digitalization of local governments’ disaster response processes to help residents quickly
rebuild their lives after a disaster
Securing drinking water and water for agriculture● Desalination of brine and seawater using ion exchange membranes and other filtration
technologies
 educing the burden on healthcare professionals and improving access to healthcareR● Global deployment of medical IT, medical diagnostic imaging and AI technologies that help
reduce the workload on healthcare professionals and contribute to remote diagnosis

FUJIFILM Holdings Corporation

Help solve energy issues and achieve a decentralized society based on fundamental and core technologies
Energy conservation
 ata archive storage systems using high-capacity magnetic●D
tape to reduce CO2 emissions during data storage●M ultifunction devices with enhanced powersaving performance
Energy creation● Technology that enables inspection and diagnosis ofoperating wind turbine blades even in harsh environments
such as windy coastal and offshore areas by combining ahigh-performance anti-vibration and ultra-telephoto camerathat utilizes imaging and precision molding technologies
with high-precision image analysis and AI technologies
Energy storage
 evelopment of semi-solid batteries with lower cost and higher●D
capacity compared to conventional liquid lithium-ion batteries
by utilizing dispersion/coating and material technologies

CO2 capture and fixation● Bioproduction of useful substances fromCO2 using bioengineering technology
 olutions and services adapted to aS
decentralized society●S olutions that support lifestyles andbusiness activities in a decentralized society
by promoting digitization, automation andpaperless business processes●S olutions and services to support
healthcare professionals and improveaccess to healthcare through the use ofhealthcare IT and AI technologies

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Resource Recycling Initiatives

Ensure Product and Chemical Safety

Response to Water Risks: Working Together with Stakeholders

Management of Chemical Substances

The Fujifilm Group is actively advancing resource recycling through an approach to the entire

The Fujifilm Group not only complies with current chemical substance regulations but also looks to the future

product life cycle, including reducing the use of water in production, recycling water, recoveringand manages chemical substances for which significant hazards or social concerns have been identified byand reusing silver resources, and establishing a recycling system for multifunction devices.

voluntarily restricting their use in advance of legal requirements. We are working to reduce risks by substituting

In regard to water resources, as we use a large amount of clean water for the manufacturing oftarget substances with safer chemicals, reducing their use or developing new process technologies. To guarantee

photographic film, since our foundation we have long strived to reduce water usage and recycle

the safety of chemical substances developed in-house, the Fujifilm Group has owned safety testing facilities since

water. We also engage in environmental protection efforts in conjunction with local residents,

1975 to evaluate their safety in relation to the global environment and human health. Under “Environment,” aNGOs and other stakeholders, and make every effort to conserve water resources.

priority area in our SVP2030 long-term CSR plan, we aim to help solve various social issues according to five goalsof the SDGs. Specifically, we are developing low-risk, sustainable materials and manufacturing processes based on

Long-term target

Reduce water intake by the Group by 30% by FY2030 (compared with FY2013)*1

Medium-term targets

Reduce water intake by the Group by 20% by FY2025 (compared with FY2013)*1

Short-term target

Reduce water intake by the Group by 1% by the end of FY2022 (compared with FY2021)*

the safety data, chemical substance libraries and core technologies we have developed to date. Moreover, from theperspective of animal welfare*2 in the safety evaluation of material development, we are focusing on the use of1*1 Progress: 3% reduction by the end of FY2022 (compared with FY2021)/17% reduction by the end of FY2022 (compared with FY2013)

alternatives to animal testing. The products offered by the Fujifilm Group span the entire supply chain fromupstream to downstream, including fine chemicals, advanced materials, optical devices, multifunction devices andmedical equipment. We therefore aim to contribute to proper chemical substance management in the supply chain
through the dissemination of knowledge and mechanisms for the safe handling of chemical substances.

Contributing to Reducing CO2 Emissions in Society
Design for Environment (Product Stewardship)
The Fujifilm Group is engaged in Design forand improved products under the Fujifilm Group Greendevelopment stage, we quantitatively and objectively
assess the environmental impact across the entire
product life cycle, from raw material procurement toproduction, transport, use and disposal, in an effort todesign products with lower environmental impacts. Since

Biodiversity Conservation

Fujifilm Group
Green Value Products

Environment (product stewardship) for all new products
Policy (environmental policy). During the product*2 The 3Rs of animal welfare (Replacement: use of alternatives to animal testing, Reduction: reduction in the number of animals used, Refinement:
minimization of animal suffering)

DiamondGold

For the preservation and maintenance of biodiversity, the Fujifilm Group has established the Fujifilm Group Basic Concepts
Products and services that contributeto a significant reduction inenvironmental impact throughinnovative technologies in the industry
Industry-leading products
and services that reduce
environmental impact

SilverStandard Environmentally
Friendly Products

Products and services
that reduce environmental
impact beyond industry
standard levels

and Action Guidelines for Biodiversity Conservation, under which we assess the risks our business activities present forbiodiversity and promote efforts to minimize these. As a result of our risk assessments, we have designated paper procurement
standards as an area that presents a high risk of affecting forest ecosystems and are therefore expanding paper procurement
initiatives that consider ecosystems, biodiversity and the human rights of local residents. During product development,
we incorporate the perspective of biodiversity conservation into Design for the Environment and conduct a biodiversity
assessment as part of every process involved in the product development cycle. We also established guidelines for the
procurement of plant-derived materials and manage these to ensure they avoid any involvement in environmental destruction
and human rights violations. We also engage in activities on an individual business site basis to minimize environmental impact.

fiscal 2018, we have managed the Green Value Products certification system for products and services thatAs an example of environmental protection in local communities, FUJIFILM MATERIAL MANUFACTURING Kyushu Areasatisfy certain standards for environmental consciousness, and in fiscal 2022 achieved 30% for the ratio of(formerly FUJIFILM Kyusyu) has helped secure water resources by cooperating in activities to replenish groundwater levels inGroup-wide net sales accounted for by Green Value Products, compared with our target of 60% for fiscal 2030.

Minami-Aso Village and by planting trees on the upper reaches of the Shirakawa River.

INTEGRATED REPORT 2023

74

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Diversity,
Motivated Work Style,and Occupational
Health and Safety
Promoting the creation of systems thatallow each and every diverse employee todemonstrate their individuality and abilities,
we aim to remain a strong organization thatboldly takes on the challenges of innovationand creates value for society even in a
rapidly changing business environment.

Sustainable Value Plan
2030 Initiatives
 reate environmentsC
conducive to job satisfaction
 evelop and utilize diverseDhuman resources

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Diversity and Equal Opportunities

Corporate Governance

Data Section

Accelerating DE&I Across the Fujifilm GroupAs the DE&I Promotion Group, we are committed to supporting the

Basic Policy
The Fujifilm Group upholds “respect for and promotion of diversity”
and “prohibition of discrimination” in its Code of Conduct. We believe inthe diversity of people, prohibit discrimination, and respect, accept andstimulate each other’s personality and individuality. In doing so, we
strive to create new value and become a robust organization that cancontribute to the prosperity of society.
We also provide an environment that allows for flexible work styles
and a smooth return to the workplace during life events, such as
childcare or nursing care. We support each individual in leveraging theirdiversity to contribute to the organization without missing growth
opportunities through their work.

growth of employees through various programs, including a seminaron Balancing Work and Childcare and +STORY Childcare Salon for thechild-rearing generation. In July 2023, we held the Tokyo Midtown Head
Office Family Day 2023, with approximately 550 employees and theirfamilies in attendance. The event aimed to encourage interaction
among participants as they experienced products from each business,participated in workshops and visited workplaces where their families
work. The atmosphere was lively, filled with cheerful laughter and smiles.
This event was organized under the principle that the Fujifilm Groupsupports the active participation of each diverse employee and is acompany that grows with its employees and their families. To accelerate
DE&I throughout the Fujifilm Group in Japan and overseas, we will launcha DE&I Promotion Committee chaired by our CEO to discuss a wide range
of issues and implement specific measures, including the promotion of

Promotion System and Structure
In our long-term CSR plan, SVP2030, we have identified “the creation offrameworks and workplaces in which diverse employees can play active roles” as
one of the priority issues in the area of Work Style. Specifically, we set thefollowing targets to promote the transformation of work styles and diversity:
Promote talented non-Japanese employees in key positions in the Fujifilm Group;
Promote women in leadership roles;
Continue exceeding the legally stipulated percentage of employees withdisabilities (in Japan); andAchieve zero retirement of employees due to childcare or nursing care (in Japan).
The Fujifilm Group clearly states the respect for diversity and the elimination of

women in leadership roles, the participation of men in childcare andsupporting the balance between work and family life. We will continue tocreate an environment that allows each and every diverse employee tofully demonstrate their individuality and abilities
as well as foster a corporate culture that highly
motivates diverse employees, striving for thegrowth of the Fujifilm Group.
Mai Yamaguchi
Group Manager
DE&I Promotion Group*, Human Resources Division,
FUJIFILM Holdings Corporation* Reorganized into the Diversity, Equity and Inclusion Office as of October 1, 2023

discrimination in the Fujifilm Group Charter for Corporate Behavior and Code of
Conduct, which are available to our employees in 24 languages and throughe-learning to promote their understanding.
In November 2022, the Diversity, Equity & Inclusion (DE&I) Promotion Group

FUJIFILM Holdings Corporation

seminar on Balancing Work and Childcare for employees returning from childcare

was established within the Human Resources Division with the aim of “recognizing

leave and their superiors, as well as +STORY Childcare Salon as a platform forand supporting each other’s STORY among our diverse employees.” The group

networking and interaction among employees, all aimed at deepening theirimplements initiatives focused mainly on promoting women employees inunderstanding of DE&I and fostering a corporate culture that promotes diversity.

leadership roles, supporting the balance between work and childcare/nursing

75

care, and encouraging men to participate in childcare. These initiatives include a

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Initiatives and Progress
The Fujifilm Group has established long-term targets for fiscal 2030 for various indicators representing“active participation of diverse employees.”
As a Group-wide initiative, we promote the advancement of outstanding female employees to managerial
positions and are stepping up the recruitment of women who can potentially take on leadership positions. We

Message from a Childcare Leave Taker“I aspire to a more flexible work style with a better balance.”
Childcare Leave Period: December 29, 2021, to March 31, 2022

also organize seminars for employees who have returned to work after maternity or childcare leave and their

I took childcare leave from the first to the fourth month after mysupervisors and invite external speakers to provide guidance on key aspects of balancing work and childcare,child was born. One positive aspect was that my wife and I were ableemphasizing the importance of support in the workspace. Panel discussions involving employees andto organize our daily rhythm, discussing and sharing housework andsupervisors are also organized. All of these efforts are aimed at facilitating a smooth return to work afterchildcare responsibilities. My wife said, “I felt at ease both physicallymaternity or childcare leave and providing career support for employees. In addition, to provide a platform forand mentally.” We could also witness and share the growth of our

networking and mutual consultation, we organize gatherings every three months where employees balancing

child every day, bringing us great joy. As I had been selected as the leader of product development, I

childcare responsibilities can connect and share experiences.

handed over my responsibilities while leading the team just before my leave. Juggling childcare

In Japan, the Fujifilm Group has continued to achieve a percentage of employment of people withwhile fulfilling my role presented its challenges. However, the support and encouragement from mydisabilities above the statutory level since fiscal 2016. We aim to maintain a percentage that is higher than the

supervisor and colleagues made me feel strong. Currently, I am striving tostatutory level.

balance work and childcare, collaborating with my wife, who has also

For childcare support, we promote and raise awareness of our various systems available, including Stock

returned to work, by utilizing a flextime system and finding ways to

Leave (accumulated paid leave), to encourage men to take childcare leave and facilitate the balance

appropriately hand over my duties to other members in case my childbetween childcare and work. For nursing care support, we have enhanced our nursing care consultation

suddenly becomes ill. I look forward to further improvements in the work

service and organize seminars by specialists to prevent caregiver turnover. In fiscal 2022, we expanded ourenvironment that enable a more flexible work style with a better balance.

telecommuting system and work-life balance support system to enable diverse employees to successfully

Takashi Kojima

balance work and life stages, fostering a greater sense of motivation and proactivity in their work.

DX Division, Graphic Communication Division, FUJIFILM Business Innovation Corp.

Measurement of Effectiveness (KPIs)

Message from the Supervisor

Indicators illustrating the “active participation of diverse employees” are as follows:

Percentage of non-Japaneseemployees in key positions
Percentage of womenin managerial positions
Percentage of employees withdisabilities

FY2022

FY2030 target

Fujifilm Group

27.8%

35%

Fujifilm Group*1

16.5%

25%

Fujifilm Group in Japan

6.9%

15%

2.45%

2.35%*

Fujifilm Group in Japan“We support childcare leave! — Hoping for an expansion of support
systems for team members taking over responsibilities.”
In our division, it has become a natural atmosphere for both male and female team members to takechildcare leave, although the duration might vary. However, beyond individual readiness,understanding and cooperation from colleagues and superiors in taking over tasks are essential.
Despite everyone being busy, the team covers for each other to ensure smooth operations. I believethat expanding the support system for team members taking over the tasks of those on childcare

2

leave could further lower psychological barriers. Upon returning from childcare leave, everyone comesback to the office with a sense of fulfillment, which also brings me a sense of happiness and joy. We*1 Classification of management is based on definitions at each overseas subsidiary.
*2 In Japan, the Fujifilm Group has continued to achieve a percentage of employment of people with disabilities above the statutory level since fiscal
2016. We aim to maintain a percentage that is higher than the statutory level.

will continue to support employees of both genders in taking childcare leave, with the hope that they

Please refer to p.109 for the retention rate after returning to work from childcare and nursing

Takahide Abe DX Division, Graphic Communication Division, FUJIFILM Business Innovation Corp.

will share the challenges of childcare with their spouses and enjoy the experience to the fullest.

care, rate of male workers taking childcare leave, etc., in fiscal 2022.

INTEGRATED REPORT 2023

76

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

the health promotion departments of various Group companies and focus on formulating and promoting

Employee Safety and HealthGroup-wide wellness promotion initiatives. We ensure widespread awareness of the Fujifilm Group
Employee Health and Wellness Declaration across all Group companies, proactively promoting initiatives
tailored to the cultures and customs of each country and region. In April 2022, the Fujifilm Group Health

Basic Policy

Insurance Association opened FUJIFILM Mediterrace Yokohama, a health screening facility for Fujifilm
Group employees that provides health screenings using our state-of-the-art medical equipment.

The Fujifilm Group clearly states in its Code of Conduct that it is committed to adhering toapplicable laws and rules regarding occupational health and safety, and aims to maintain andenhance a safe and comfortable workplace environment, considering the physical and mental
well-being of its employees. The maintenance and enhancement of the wellness of employees
is one of our top management’s priorities as it forms the basis for practicing our Corporate
Philosophy and Vision. In September 2019, we established the Fujifilm Group Employee Wellness
Declaration to vigorously promote (health management).

Occupational Health and Safety Initiatives

Priority areas

Results

KPI

Lifestyle-RelatedDisease Control

Employees with BMI

Smoking Control

Employees who smoke

FY2022Medium-term targets
for FY2025

26.8%

21%

25

Employees with HbA1c

6.0%

7.9%

6%

18.3%

12%

In fiscal 2020, we established our new occupational health and safety regulations that comply

Lungs

99.3%

100%

with ISO 45001:2018, an international safety standard, and commenced their operation across all

Stomach

80.0%

100%

of our sites, including those overseas. We have clarified the safety management structure andactivity goals for the entire Group, aiming to strengthen governance in occupational safety. These
efforts include labor-management consultations on health and safety, checklist-based workplaceinspections, and the identification of sources of danger and countermeasures in risk assessments

KPIs for Occupational Health and Safety
As our Company-wide goals for occupational health and safety initiatives, we have set targets to achieve
zero serious work-related accidents and to reduce the workplace accident rate to 0.1 or less by fiscal 2030.
FY2022
Chemical industry
average in parenthesis*4
Workplace
accident rate*1

Fujifilm Group in Japan

0.36 (0.34)

Fujifilm Group (Overseas)

1.94

Workplace
accident severity*2

Fujifilm Group in Japan

0.007 (0.01)

Fujifilm Group (Overseas)

0.031

TRIR*3

Fujifilm Group

2.70

64.1%

90%+

89.6%

100%

80.1%

90%+

Cervical

67.2%

90%+

Number of employees involved in workplace accidents
Gross number of hours worked*2 Workplace accident severity =Number of workdays lost
Gross number of hours worked

Shedding Light on the Health of Fujifilm Group Employees at FUJIFILM Mediterrace Yokohama
The Fujifilm Health Management Center has long been
deeply committed to protecting the health of Fujifilm Group
employees, with a specific focus on cancer screenings. Opened*1 Workplace accident rate (LTIR) =×1,000,000

in April 2022, the center features the Fujifilm Group’s state-ofthe-art medical equipment and AI-based medical IT systems,

×1,000*3 T otal recordable incident rate (TRIR) is the number of
injuries per million working hours (accidents without lostwork time + accidents involving lost time and deaths)*4 S ource for chemical industry average: 2022 Survey on
Industrial Accidents (Ministry of Health, Labour and Welfare)

Health Promotion Initiatives
Under the leadership of the General Manager of Human Resources Division, who is the Fujifilm Group
Health Management Officer, we have established the Employee Wellness Promotion Group to consolidate

FUJIFILM Holdings Corporation

Cancer Control

Employees(Of which) Endoscopy rate
who received
Large intestines
screening
Breasts

Note: Target: Domestic employees in the Fujifilm Group (screening rate of gastric and colon cancer examination of those 40 years old and older)when introducing new operations or changing work methods.

77

Measurement of Effectiveness (KPIs) on Health Promotion
Fujifilm Group KPIs in health issues, medium-term targets and results

which are operated by skilled medical professionals to help
manage the health of employees. The entire team at FUJIFILM
Mediterrace Yokohama hopes to be a beacon of light for thehealthy and fulfilling lives of our employees. We envision ourcenter as a hub that brings together all of the insights that the
Fujifilm Group possesses, aiming to contribute to the spreadand development of improved healthcare for the future.

Masami Ogawa
Fujifilm Group Health
Insurance Association
Director, Fujifilm HealthManagement Center,
FUJIFILM Mediterrace Yokohama

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Human Rights
We declare our respect for humanSpecial Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Structure

Human Rights

1. Human Rights Due Diligence Process
The Fujifilm Group has established and implemented a human rights
due diligence process. Specifically, this involves identifying actual andBasic Policy

potential risks, determining where these risks occur in the Company’s

The Fujifilm Group considers respect for human rights to be its corporate

rights in our daily business

responsibility. The Fujifilm Group Charter for Corporate Behavior and Codeactivities based on our Humanof Conduct, which are available in 24 languages, express our fundamental

Rights Statement and its

approach and support international principles on human rights. We havefoundation, the Fujifilm Groupalso established the Fujifilm Group Human Rights Statement, which

Charter for Corporate Behavior

declares that we will take the necessary measures to assess and reduce theand Code of Conduct.

risk of human rights violations in our business activities.

activities and the value chain of the Group’s business, identifying theindividuals who could be negatively impacted and how, evaluating risks
based on the likelihood and severity of occurrence, examining andimplementing preventive and mitigating measures, engaging withstakeholders and disclosing information. We assess the impact onhuman rights using risk mapping and regularly review the assessments.

In step with the expansion of our healthcare business, in July 2020

2. Impact Assessment of Priority Human Rights Issues for the Fujifilm Group

we established the Fujifilm Group Global Healthcare Code of Conduct tocontinued to address the following priority issues:and ensuring appropriateness and transparency in our interactions with

Inappropriate working environments and labor practices at suppliers;

healthcare professionals. In April 2023, we revised the Guidelines for theLong working hours, discrimination and harassment of our

Global Healthcare Code of Conduct.

employees; andWe also adopted the Fujifilm Group AI Policy in December 2020 as theViolations of the rights of participants in clinical trials in ourbasis for our active utilization of AI technology. We recognize ethical andhealthcare business.

other risks that might arise from the emerging technology of AI and strive
to promote business activities that respect basic human rights.
Human rights due diligence process

1

Identification andassessment of negative
human rights
impacts2

Prevention andmitigation ofnegative
impacts

Impact assessment of potential human rights issues (risk mapping in existing businesses)
SevereCorrection
and grievancehandlingmechanisms

Human
Rights Due
Diligence

4

Information
disclosure

3

Monitoring

Stakeholder
engagement

Violations of the rights of participants inclinical trials in our healthcare businessAnti-Corruption

Severity (scale/scope) trengthen CSR foundations
S(including the environment,
ethics and human rights)
throughout the supply chain

In fiscal 2019, we identified potential human rights issues and haveclarify our basic principles, such as respecting the human rights of patients

Human Rights Statement

Sustainable Value Plan
2030 Initiatives

Data Section

Inappropriate working environments
and labor practices at suppliers

Protecting Privacy
Information

Conflict Minerals

Human Rights of Patients
Environmental
Conservation

Workplace Safety
Long Working Hours

Protecting Privacy Information
Discrimination
Suppliers
Our Employees

Product Safety

Freedom of Association

Long Working Hours

Discrimination
Harassment

Discrimination
Harassment

Long working hours, discriminationand harassment of our employees

Community

Low

Social Security

Workplace Safety

Consumers

Mild

Forced Labor
Child Labor

LikelihoodHigh

INTEGRATED REPORT 2023

78

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Initiatives Related to Priority Human Rights Issues(1) Inappropriate working environments and labor practices at suppliers
In fiscal 2022, we continued to conduct risk assessments through self-checks in China andother Asian countries—priority regions where many of our manufacturing sites are located.
In addition, our expert team visits suppliers to conduct risk assessments and provide support

Sustainability

Corporate Governance

Data Section

Dialogue with External Stakeholders on Human Rights Activities●P articipation in the Stakeholder Engagement Program by the Caux Round Table (CRT) Japan

In fiscal 2022, the Caux Round Table (CRT) Japan held eight Stakeholder Engagement Program
sessions from May 19 to July 14, in which three representatives from our company participated.
During these sessions, participating companies, NGOs/NPOs, scholars and other experts

for improvements as a part of our on-site assessment program. For suppliers identified as

discussed the execution of human rights due diligence. The conversations included group work

having issues in labor practices, the team encourages them to improve and implementswith other companies to review human rights issues that should be focused on in each industry.

corrective measures from the perspective of human rights. In fiscal 2022, we discovered issues,
such as inaccuracies in employee handbooks (not updated in accordance with changes in labor
regulations, discrepancies between actual operations and documented leave-related policies)
and lack of regular inspections regarding the quality of the drinking water from the water●P articipation in the Business and Human Rights Academy organized by the United Nations

Development Programme (UNDP)
We participated in the second session of the Business and Human Rights Academy held in

dispensers in employee dormitories. We asked these suppliers to implement improvements.

Tokyo on February 27–28, 2023. We learned about legal frameworks, trends andWe have confirmed that all of the suppliers subject to on-site assessment by our expert team

implementation methods related to human rights due diligence from leading experts andhad made improvements in key areas by the end of the fiscal year.

specialists in the field of business and human rights in Japan and abroad. In addition, discussions
with other participating companies allowed us to reflect on our own initiatives. We will

(2) Long working hours, discrimination and harassment of our employees

incorporate insights from this experience into the Group’s human rights due diligence efforts.

In fiscal 2022, 68 organizations within the Fujifilm Group identified long working hours anddiscrimination against or harassment of employees as priority issues. They developed andimplemented prevention and mitigation measures at their companies.
In response to the emerging human rights issues concerning non-Japanese employees in● I ncorporation of the opinions of external experts on life sciences (Life Science Ethics Review

Committee)
We have established the Life Science Ethics Review Committee that includes external experts

Japan, the Fujifilm Group initiated a survey in fiscal 2019 to assess the situation of non-to comprehensively evaluate the appropriateness of implementation in consideration of privacy,

Japanese employees directly employed by its major operating companies in Japan. As of the

ethics, science and other aspects. The scope of the committee’s reviews includes researchend of fiscal 2022, there were 232 individuals from 20 countries/regions in our employ, and no

involving human-derived tissues for genetic analysis, epidemiological studies, clinical research

reports of issues regarding labor conditions or practices were identified. We will continue toand the handling of individual genetic information and related tasks. For instance, to ensure thatmonitor the working environment for non-Japanese employees.

participants in clinical trials are not disadvantaged in any way, external experts review our clinical

We have also confirmed that no child labor is being used within the Fujifilm Group in fiscal
2022.
(3) Violations of the rights of participants in clinical trials our healthcare businessWe have established a Life Science Ethics Review Committee to ensure that clinical trial

trial plans on behalf of the participants.
In fiscal 2022, we conducted 29 life science ethics reviews, including expedited reviews.
● Dialogue with local communities

As a member of the local community, the Fujifilm Group discloses information about its

participants are not disadvantaged in any way. We identified no violations of the Global

environmental conservation activities and continues to gather the opinions of local residents

Healthcare Code of Conduct in fiscal 2022.

through activities such as environmental dialogue meetings. We will further strengthen
environmental initiatives at our business sites and actively disclose and disseminate information
outside the Company on an ongoing basis.
Please refer to our Sustainability Report 2023 for details.
https://holdings.fujifilm.com/en/sustainability/report

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FUJIFILM Holdings Corporation

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Sustainability

Corporate Governance

Data Section

Responsible Supply Chain Management
Basic Policy

Sustainable Procurement Initiatives

formulated guidelines for the procurement of plant-derived

The Fujifilm Group pursues the optimization of production

The Fujifilm Group has positioned its series of activities

materials. These guidelines set procurement standards forand procurement processes in all its businesses to provide

to promote sustainable procurement as its Sustainable

better products and services at appropriate prices. As a specific

Procurement Promotion Program, which consists of the

procurement strategy, we emphasize three aspects:

four-step cycle shown in the figure below.

(1) Quality, (2) Cost Reduction and (3) Stable Procurement

We conduct CSR risk assessments and self-checks (human(Delivery). Each year, we establish targets and develop plans torights, labor, environment, health and safety, ethics, suppliercontinuously enhance our procurement processes.

management/BCP) for critical suppliers and suppliers in

Proportion of Procurement Amount by Region
Asia and others 7％

suppliers identified as high risk, we conduct individual on-site
Particularly for suppliers in China and other Asian countries,
our expert team conducts on-site assessments to verify theirprogress and provide guidance for improvement.

Japan 47％

Americas
13％

Basic Approach to Sustainable Procurement
The Fujifilm Group categorizes each supplier into one ofthree levels that determine the measures applied to them.
Level 1
Level 2
Level 3

Dissemination of the Fujifilm Group’s approach to CSR(all suppliers)

considerations. This ensures compliance with sustainableprocurement principles throughout the supply chain, avoiding
involvement in environmental destruction and human rights
violations.

Measurement of Effectiveness (KPIs)
We conducted self-checks for critical suppliers in Japan andoverseas. As a result of the expansion of the targets, self-check
results were collected from 774 companies (1,262 bases),
approximately double the number in the previous fiscal year
(response rate of 92%). The results of the self-check

Sustainable Procurement Activity Cycle

China 24％

forest resources prioritizing environmental and human rights

high-risk areas, such as in China and other Asian countries. For
inspections, request improvements and provide support.

Europe 9％

pulp, palm oil and paper sourced from responsibly managed

1

Dissemination of the Fujifilm Group’s approach to CSR

2

Supplier assessments

assessments in fiscal 2022 showed no significant risks related
to child labor, forced labor or freedom of association. Startingfrom fiscal 2022, we initiated an information security survey(self-check) targeting critical suppliers in Japan and overseas.

Sustainability self-check conformance rate

3

Request/support for supplier’s improvement activities

4

Improvement activities by suppliers

In addition, as part of our environmental initiatives in the

Self-assessment by suppliers(critical suppliers)

supply chain, we collaborate with our suppliers under the key

On-site assessment(high-risk suppliers/most critical suppliers)p.74), “Responsible procurement of paper” and “Responsible

themes of “Sharing information on chemical substances” (seeprocurement of plant-derived materials.” In fiscal 2021, we

Conformance
rate

Evaluation

Ratio ofresponding
companies

90% orabove

Almost satisfy the requirementsof our Code of Conduct70%

80%–89%Need improvement regardingsome issues

20%Less than80%

Need our support for
improvement10%

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Sustainability

Responsible Mineral Procurement
Basic Policy
The Fujifilm Group recognizes that tantalum, tungsten, tin,gold (3TG) and other minerals in its supply chain, especiallyfrom conflict-affected or high-risk areas in the world, could
become a source of funding for organizations involved inhuman rights abuses including child labor, environmental

Measurement of Effectiveness (KPIs)
Each of the Fujifilm Group’s businesses responds to requests
from customers to trace the origins of minerals.
In the Business Innovation segment, we are strengthening
initiatives for responsible mineral procurement.
99.8% of the surveyed suppliers. The survey identified 337

issues related to these minerals are of social significance. We

smelters/refiners recognized by the Responsible Minerals

clearly declare that we have no intention to use minerals

Initiatives (RMI), of which 220 were Responsible Businessinvolved in such human rights violations or that have any otherAlliance (RBA) Conformant (as of May 2023). Responding tonegative impact. To ensure responsible procurement acrossincreasing customer requests, we added cobalt to our existing

our supply chain, we manage our operations in accordance

3TG origin survey starting in fiscal 2021. In fiscal 2022, wewith the OECD Due Diligence Guidance for Responsible Supply

collected responses from 99.6% of the surveyed suppliers. The

Chains of Minerals from Conflict-Affected and High-Risk Areas,

survey identified 70 smelters/refiners recognized by the RMI,

following its five-step framework.

of which 35 were RMAP Conformant (as of May 2023). Basedon the responses from these suppliers, we requested them toOECD’s Five-Step Framework1

Establishment of a robust planning andmanagement system

2

Identification and assessment of risks in the
supply chain

3

Development and implementation of strategies
to address identified risks

4

Audit by an independent third party to assessthe due diligence practices of smelters/refiners

5

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chain

FUJIFILM Holdings Corporation

Data Section

Collaboration Initiatives in
the Supply Chain Area
To meet evolving global demand in production andprocurement and to deliver products and services that
customers find reassuring, the Fujifilm Group participates invarious initiatives to keep abreast of global trends in a timely
and accurate manner.

For the 3TG origin survey, we obtained responses fromdestruction or inhumane acts involving armed forces, and that

Initiatives

Corporate Governance

Joint Article Management
Promotion-consortium (JAMP)UN Global Compact(UNGC)

Fujifilm is a member of JAMP, whichaims to promote a system for theappropriate management of information
on chemical substances and the smooth
disclosure and communication of thisinformation throughout the supply chain.

FUJIFILM Business Innovation signed the
UNGC in 2002. Since June 2020,
FUJIFILM Holdings has been a signatory
and participant.

switch to RMAP Conformant smelters and avoid using high-risk
smelters. We will continue to expand the scope of our survey
Responsible Minerals
Initiatives (RMI)

as we advance our efforts toward responsible mineralprocurement.
Japan Electronics andInformation Technology
Industries Association (JEITA)
Fujifilm and FUJIFILM Business Innovation
are members of the JEITA Responsible
Minerals Trade Working Group.

Responsible Business
Alliance (RBA)
FUJIFILM Business Innovation is amember of the RBA, which establishes
standards related to occupational safety,
the treatment of workers andenvironmental considerations inelectronics industry supply chains.

FUJIFILM Business Innovation
participates and partners with the
RMI and JEITA to strengthen its
commitment to responsible mineralprocurement.

Japan Business Machine andInformation System Industries
Association (JBMIA)
FUJIFILM Business Innovation participatesin the activities of the JBMIA as a memberof the Responsible Corporate Behavior
Committee, established in April 2022.

05
Chapter

Corporate Governance
CONTENTS
83

Discussion on Governance86

Messages from Outside Directors

87

98

Corporate Governance96

Risk Management

97

Stakeholder Engagement

Management Structure

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Corporate Governance

Data Section

Discussion on Governance

Aiming for an even higher level of corporate
governance to carry on the corporate culture

How should we pass down our corporate culture to the next generation? The Chairman of the Board and an outside director
discuss the roles that the Board of Directors should play.

Establishing a corporate governance system— What are your views on initiatives to improve

corporate governance (“Governance”)?

Sukeno: At the very least, we need to establish a solid
governance system and get it to work effectively for a
global company to operate globally. Taking action tocontribute to creating a decarbonized society is also one of
the global market participation requirements. Considering
these requirements, since I became Chairman of the Board(“Chairman”), we have worked to improve the Company’s
governance system and have built the present governancesystem. In the course of building the present governance83

FUJIFILM Holdings Corporation

system, the Board of Directors has naturally played a key
role. I believe that the roles of the Board of Directors areformulating basic management policies and strategies,
making important decisions about business execution, andeffectively supervising execution to make sure that thepolicies and strategies are implemented properly.
I do not believe that we can establish a governancesystem in the true sense of the term if the Chairman is
involved in execution. We have now decided that we
do not specify who shall be Chairman in the Articles ofIncorporation. The Board of Directors selects the Chairman
and has designated that I, as Chairman, shall not be
Representative Director. In this way, we have made it clearthat the Chairman is not involved in execution. The Boardof Directors now consists of 10 members, of whom fivemembers are inside directors who engage in execution at
operating companies. Four members are outside directors.
I believe that given that as Chairman I am not involved in
execution, I can monitor the executive directors andoutside directors from a neutral position. As a result, we
can build a stronger governance system, and thetransparency of the Board of Directors will increase.
Kitamura: I realize that Chairman Sukeno has been
pursuing initiatives to improve governance at the Company
with a clear intention. The initiatives include a review of theskills matrix and a revision through discussions at Board
meetings. In the process of reviewing the skills matrix,
we did not simply choose skill items that are generally
considered to be required in corporate management, suchas legal affairs and accounting. We first chose business,function and region as three priority areas that will
deepen discussions at Board meetings and then intensively
discussed particularly important elements. Before
discussions at Board of Directors meetings, the Chairman
and outside officers discussed the skills matrix anddeepened the understanding of each other’s views. This
process enabled us to reconsider what we should primarily
discuss at Board meetings and was very meaningful.
Sukeno: What is important in reviewing the skills matrix is
identifying areas where each director has expertise in lightof the roles of the Board of Directors. Inside directors are
required to have full knowledge of the assets, including
technologies and human resources, that have supported
the growth of the Company and to make the optimum
business decisions. The main role of outside directors is,
I would say, monitoring the direction of execution todetermine whether it deviates from common values andcommon sense. Under these assumptions, the skills matrix
should show how the members of the Board of Directors
can contribute to deepening discussions at Board
meetings.

The Fujifilm Group’s Value Creation

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Data Section

Discussion on Governance

Passing down corporate culture—A new skill item, “Human resources strategies andcorporate culture,” has been added. Why did you add it?

Kitamura: When we discussed the skills matrix, many
Board members said that it is important for us to develop
genes, or characteristics, that we have inherited, which
made possible a significant change in the business structure
as the photographic film market rapidly contracted. To
achieve the sustainable growth of the Company, we needto maintain and develop our flexibility and resilience, whichis part of our corporate culture. Corporate culture is acompany’s values and code of conduct. It is created by
employees’ awareness and actions. It is therefore closely
related to human resources strategies. However good ourmanagement policies are, we cannot achieve our goals if we
do not have a corporate culture in which employees, who
implement the policies, have a good understanding of theCompany’s values and have pride in what they do.
Sukeno: In addition to the transformation of the business,
I would like to give attention to predecessors’ efforts
to overcome difficult challenges and start domestic
production and commercialization of photographic film.
We will be marking our 90th year in business. We need toremember our predecessors’ extraordinary efforts and the

Kunitaro
Kitamura
Outside Director and the
Chairman of the Nomination
and Remuneration Advisory
Committee
Special Advisor, Sumitomo Mitsui
Trust Bank, Limited
Outside Director, ASAGAMICORPORATION
Outside Audit & Supervisory
Board Member, OHBA CO., LTD.

assets they left behind, including the desire to take onchallenges, speed and teamwork, and pass these down toyounger employees. It is these foundations laid by ourpredecessors that have enabled us to transform ourbusiness in the 2000s. As times change, values in societychange. It is important for the Board of Directors tomonitor what should not be changed and what shouldchange.
The basic principle of corporate management is helping
employees perform to the best of their ability. Investment
in human resources, including investment in employee
education and health and productivity management, is
indispensable for ensuring the continuity of companies.
Developing future management personnel is a particularly
important issue. That is a theme that we should discuss
more deeply at Board meetings. The addition of humanresources strategies and corporate culture as a new skill
item reflects this thought. The skill item is embodied in ourmanagement policy emphasizing human capital.
—What are your views on changes in the external
environment surrounding human resources?

Kitamura: The decline in the nation’s workforce is an
important change. The turnover rate is increasing, and thelifetime employment system, which was an assumption
for career plans, is ceasing to function. In this environment,
recruitment and human resources development arebecoming increasingly important in human resources
strategies. We need to have a process for attracting
excellent human resources, while paying attention toevaluation and assignments, cultivating and evaluating
them, and developing human resources who will become
responsible for management. The key to this process
is corporate culture. The turnover rate is low among
employees who align with the Company’s philosophy. They
perform well even in adverse circumstances and continue
to be motivated to come up with innovations.
When we discuss themes related to human resources strategies

Kenji Sukeno
Chairman and
Chairman of theBoard of Directors

at Board meetings, I think about how executives, including top
management, should communicate and explain the corporate
culture to employees. Some voices of employees that we hearthrough the employee engagement survey and others incorporate
the essence of the corporate culture, and outside directors pay
attention to these voices. If there are any discrepancies between
employees’ voices and management’s understanding, it isimportant to eliminate those discrepancies steadily.
Sukeno: I believe that the CEO’s most important role is tomake sure to explain the corporate culture to employees
who join the Group through M&A. If the CEO shows the
direction to the head of each business, and the head ofeach business educates the management of companies
that join the Group, the Company’s corporate culture andgenes will be made known throughout the entire Group.
Improving the effectiveness of the Board of Directors—In the evaluation of the effectiveness of theBoard of Directors, a range of opinions were expressed
about the members of the Board of Directors.
Sukeno: The key points of what we should do to raise
the effectiveness of the Board of Directors are to sharenecessary and adequate information among the directors
and have lively discussions. This is what the members of

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Corporate Governance

Data Section

Discussion on Governancethe Board of Directors should do. I think that arguments
about governance put a little too much emphasis on thesocial attributes of the directors, such as nationality andgender, and the level of independence. The genders andnationalities of directors and whether they are inside oroutside directors do not matter. If the appointment ofoutside directors who have expertise in certain areas raises
the effectiveness of the Company’s Board of Directors, weshould appoint them, even if outside directors accountfor a majority of the members as a result. It is importantto think about appropriate members according to theCompany’s management policy instead of having
superficial discussions.
Kitamura: I too have put emphasis on qualities rather
than social attributes when I choose directors. I believe that
we should further explain about our policy of choosing
directors based on the qualities of the candidates,
irrespective of whether the members of the Board of
Directors meet the standards of the Corporate GovernanceCode. We have, of course, made steady progress in thedevelopment of non-Japanese employees. I have heardthat some non-Japanese employees have come close tobeing promoted to management. I think Chairman Sukeno
is considering the participation of non-Japanese employees
in discussions at Board meetings this fiscal year. I hope that
we will deepen discussions.
—Outside Officers are having more opportunities
to exchange opinions with CEO Goto.
Kitamura: In addition to discussions at Board meetings, weare able to have casual discussions with CEO Goto. These
discussions are very meaningful because we get to knowwhat the CEO is paying particular attention to. Exchanging
opinions freely on informal occasions will result in more
lively discussions at Board meetings. We often noticesomething in casual conversations. I hope we will have more
opportunities to speak with executives other than the CEO.

85

FUJIFILM Holdings Corporation

Accomplishing the management plan
—What roles will the Board of Directors play indeveloping the next medium-term management plan?
Sukeno: We have two points to keep in mind when wedevelop the next medium-term management plan. First, weneed to determine what we have been able to do and what
we have not been able to do in the current medium-term
management plan. We also need to accurately identify risk
factors that block us from achieving our targets. We might
not be able to achieve results as planned in somebusinesses. In those cases, we need to thoroughly analyze
the factors for changes in the assumptions that we madewhen we developed the plan and check whether solutions
to the problems are included in the next medium-term
management plan. I have requested the corporate
executives to do these things.
The second point is return on investment. In the period of
the current medium-term management plan, we have madedecisions on active capital investment and M&A, particularly ingrowth areas, including the Healthcare and Advanced Materials
segments. We will deepen discussions at Board meetings onwhether the return on investment is in line with the initial plan,
what the risks are and whether we will hedge the risks.
Kitamura: We have had meaningful discussions at Boardof Directors meetings on evaluations in the capital markets,
including our stock price. We will concentrate ourmanagement resources in growth areas while generating
management resources by establishing a revenue base inother businesses. In this way, the Company will achieve
growth in the medium- to long-term. Our story is clear. To
communicate the story to the market in a way that is easy tounderstand, we should devise better ways of disclosing
information. For example, we could present supporting data.
We have announced our policy of selling cross-shareholdings
if there is no rationality in holding them. We have already madea noticeable reduction in our cross-shareholdings, and I expect
us to earn high marks for that from investors.

CEO succession—Please describe the concrete process of CEO
succession in the Nomination and Remuneration
Advisory Committee.

Kitamura: Since the Nomination and Remuneration Advisory
Committee was established in 2018, we have been holding
discussions every year about whether the CEO should stay inthe position and about a list of successor candidates createdin consideration of whether they have the qualities required of
the CEO, listening to the opinions of the inside directors who
are members of the committee. CEO Goto was appointed
in 2021 based on ongoing discussions according to our
succession plan. The list of successor candidates is updated
each year. CEO Goto had been included in the list. We makesure to implement this procedure to facilitate succession.
In this way, we ensure a process that those outside of theCompany consider to be objective and transparent.
Sukeno: We revised the CEO succession plan after I becamea member of the committee. Now we have two succession
plans: a plan in case of a sudden replacement of the CEO
due to a contingency and a plan for succession after the CEO
has been in the position for a certain period. Under the latter
plan, we discuss what kinds of experience we should give thecandidates opportunities to gain and how we should broaden
their expertise for their personal development. We havebeen updating the list of successor candidates. What are theimportant qualities that the CEO should possess? The CEOshould have an overall picture of the Company, which has
multiple businesses. As I said at the beginning, the CEOshould also be able to pass down the corporate culture. The
most important quality is that the CEO should have a deep
understanding of the Company’s corporate culture, enabling
corporate executives to pass it down to the next generation.
Through these efforts, the Company will help employees
perform to the best of their potential and continue to strive tocreate innovations and enhance corporate value over the mediumto long-term. As Chairman, I pledge to take the lead in discussions
at Board meetings and pursue a higher level of governance.

The Fujifilm Group’s Value Creation

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Data Section

Messages from Outside Directors
Makiko Eda

Tsuyoshi Nagano

Chief Representative Officer ofWorld Economic Forum Japan
Outside Director of Tokyo
Electron Ltd.

Chairman (Director) of Tokio Marine
Holdings, Inc.
Outside Director of Central Japan Railway
Company

Ikuro Sugawara
Former Vice-Minister of Ministry of
Economy, Trade and Industry
Outside Director of TOYOTA MOTORCORPORATION
Outside Director of Hitachi, Ltd.

I will actively contribute to management’s
discussions to help create a sustainable world.

I will do my best to contribute to the establishment of sustainable management throughdiscussions of medium- to long-term strategies, including human resources strategies.

I argue with the corporate executives about many issues,
including geopolitical issues and the advent of new technologies.

I realize that the Company’s business portfolio,
which reflects its strategies, is growing strongly. Everytime we make a decision about M&A activities orother issues, we discuss a range of matters. Because
we internally share common long-term goals, theCompany’s direction does not change. In addition
to the latest financial results, I am impressed by theCompany’s global contributions to the qualitative
improvement of healthcare and society and therestoration of the environment through innovation andcontinued efforts to help create a sustainable world.
The Board of Directors holds open and lively
discussions to enable the Company to contribute to
the world through its business growth and continue
to foster an organizational culture that enables theCompany to invest in a range of activities and develop
human resources. The COVID-19 pandemic has
subsided, and there are now more opportunities
to communicate with management. We are facing
an unstable geopolitical situation, technology suchas AI that develops at an exponential rate andenvironmental crises that could cause unrecoverable
losses. The Company needs to make decisions tominimize risk and contribute to the creation of a moresustainable world and implement these decisions. Asa director, I will continue to actively contribute to
management discussions.

In the past year, we faced many difficulties, including
geopolitical division such as the Russia-Ukraine conflict andthe confrontations between the United States and China, thedisruption of supply chains and worldwide price increases.
However, I strongly feel that the Company has been producing
results steadily by implementing a correct growth cycle startingwith highly motivated people who understand the Company’s
culture and the purposes of its businesses.
I think the main strength of the Company’s culture is its
desire to NEVER STOP working to solve social issues throughbusiness and to transform itself to that end.

This is already my second year as an Outside Director of
the Company. Looking back on the past year, I realize thatthe meetings of the Company’s Board of Directors giveoutside directors exciting and challenging opportunities. We
engaged in frank exchanges of views with the corporate
executives about many different issues, including large
investments, Group company governance, human resources
strategies and technological development strategies.
To achieve sustainable growth, the Company needs toenhance the competitiveness it has been developing in its
businesses, including Business Innovation and Imaging. In
Healthcare and Materials, the Company needs to continue
taking on bold challenges to reach the top of these industries.
The increasing number of elements in the business environment,
based on which we make important decisions, are becoming
difficult to predict. This adds to the difficulties we face.
In addition to geopolitical issues and large natural disasters,
I am particularly concerned about the rapid progress oftechnology beyond expectations. Up until the fall of last year,
we were only talking about generative AI. Now, generative AI isconsidered to be a tool that could change society and businessand could lead to fundamental changes in employment. The useof generative AI is increasing rapidly in certain business areas. I
feel that we are entering into an age when we need to pay more
attention than ever to the advent of new technologies that canbe said to be game changers, beyond generative AI. They could
significantly impact the Company’s businesses.

In terms of health, which is one of the core businesses, forexample, initiatives have been promoted leveraging the desire to
improve the health of as many people as possible and enable themto have a sense of security, particularly in emerging and developing
countries, such as India, through biopharmaceuticals and products
and services in the medical systems business using medical AI
technology. The Company is starting to implement mission-driven
growth cycles where solutions to social issues are always being
innovated and expanded for sustainable growth in all businessareas, even areas outside health. These initiatives increase
employee motivation and accelerate growth cycles. This is obviously
reflected in the high engagement scores of the Group’s employees.
I will continue to do what I can to contribute to establishing moresustainable management through frank exchanges of opinionswith top management and discussions of medium- to long-term
strategies, including human resources strategies, at Board meetings.

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Corporate Governance

Data Section

Corporate Governance
The Fujifilm Group positions governance as one area of materiality and tirelessly endeavors to improve our governance structure on the basis of
an open, fair and clear corporate culture.

Board ofDirectors● Established the Nomination and Remuneration Advisory Committee as
an arbitrary advisory body to the Board of Directors● Set the number of directors at 12 or less, of which at least one-third
shall be independent outside directors (currently 10 directors, including
four independent outside directors)● Separated the roles of the Chairman of the Board of Directors and CEO
and strengthened the supervision function● Set the terms of office of directors at one year to further clarify the
mission and responsibilities of directors

Audit &
Supervisory
Board

Nomination andRemuneration
Advisory
Committee● Set the number of Audit & Supervisory Board members at five or less,of which at least half shall be independent outside Audit & Supervisory
Board members (currently four Audit & Supervisory Board members,
including two independent outside Audit & Supervisory Board members)● Established an Audit & Supervisory Board Office (a staff department for
Audit & Supervisory Board members) to enhance the audit functions ofAudit & Supervisory Board members● Set the composition of the committee to be three or more members
appointed by resolution of the Board of Directors, with at least halfbeing independent outside directors (currently comprising threemembers, including two independent outside directors, one of which isthe chairman)● The chairman shall be an independent outside director

From FY2006● Adopted a system with an Audit & Supervisory Board

From FY2015

Institutional
DesignInitiatives to strengthen governance2006	Transition to a holding company structure
Appointment of an outside director
2007	Introduction of a stock option system
2009	Abolition of retirement benefit system for directors and Audit &Supervisory Board members
2014	Increased to 2 outside directors
2015	Establishment of the Corporate Governance Guidelines
Commencement of the evaluation of the effectiveness of theBoard of Directors
2017	Increased to 3 outside directors, at least 1/3 of total directors
2018	Establishment of voluntary Nomination and Remuneration
Advisory Committee
Increased to 4 outside directors
Appointment of a female director (outside)2019	Commencement of the evaluation of the effectiveness of theBoard of Directors using an external organization
2020	Publication of the Skills Matrix

From FY2020

Corporate governance structure and features

2021	Separation of CEO/Chairman of the Board of Directors roles
Introduction of share-based remuneration plan, including
restricted stock compensation and medium-term performancelinked share-based remuneration (abolishment of the stock
option system)
Commencement of the evaluation of the effectiveness of the
Audit & Supervisory Board
2022	Increased the number of female directors (internal)
Addition of an ESG indicator as a KPI for medium-term
performance-linked share-based remuneration
Commencement of the exchange of opinions between outside
directors and Audit & Supervisory Board members
2023	Validation of the Skills Matrix

87

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Roles and activities of major meetings and committees
Board of Directors

Management Council

The Company has positioned the Board of Directors as theorganization for determining basic Group management policies andstrategies and other important matters relating to business execution
as well as supervising the implementation of business affairs. The
Board’s regular meetings are held, in principle, once a month, withextraordinary Board meetings held on an as-required basis.
取締役会 10名中

Outsidedirectors
4/10 persons（40.0％）

Femaledirectors
2/10 persons（20.0％）

Nomination and Remuneration Advisory Committee
As an advisory body to the Board of Directors, the Nomination andRemuneration Advisory Committee was voluntarily established forthe purpose of ensuring objectivity and transparency regarding the
CEO succession plan and the procedures for director remunerationplans and related matters. Please refer to p.90 for activity details.
指名報酬委員会 3名中
Outsidedirectors
2/3 persons（66.7％）DX Strategy Committee

2/4 persons（50.0％）The Company established the DX Strategy Committee as thehighest decision-making body involved in promoting DX throughout
the Fujifilm Group. The CEO serves as chairman and the CDO as
vice-chairman.

The ESG Committee deliberates and decides on important ESG-related
matters for the Fujifilm Group. The committee also conducts reviews
and promotes basic policy development and appropriate measuresfrom a Group-wide perspective with regard to important risks facing
each Group company. The committee is chaired by the President andvice-chaired by the director responsible for ESG Division.

Corporate governance structure

Nomination and Remuneration
Advisory Committee

General Meeting of Shareholders

Board of Directors● Determination of Group management
policies and strategies● Decisions on important mattersrelating to business execution●S upervision of business execution

Audit & Supervisory
Board

Chairman of the Board of Directors(Director and Board Chairman)

We have chosen to become a company with an Audit & Supervisory
Board system. Each Audit & Supervisory Board member audits
the Directors’ overall execution of their duties in accordance withauditing policies, auditing plans, etc., based on the auditing
standards for Audit & Supervisory Board members established by
the Audit & Supervisory Board. Please refer to p.94 for details.

Outside Audit &Supervisory Board
members

The M&A Investment Committee selects M&A projects that alignwith Group-wide management strategy and business strategy,
and holds discussions to ensure M&As are conducted through theproper processes with appropriate schemes and at an appropriate
price. The committee also checks on the progress of post-merger
integration (PMI) after the M&A. The committee is chaired by
the President and vice-chaired by the director responsible for the
Corporate Planning Division.

ESG Committee

Audit & Supervisory Board

社外監査役 4名中

M&A Investment Committee

The Management Council deliberates on important matters andGroup-wide topics based on the basic policies, plans and strategies
decided by the Board of Directors. In addition, the Company has
adopted the corporate vice president system to facilitate speedy
business execution. Corporate Vice Presidents are responsible forbusiness execution in accordance with the basic policy determinedby the Board of Directors. The Company currently has 10 Corporate
Vice Presidents, three of whom are concurrently serving as Board
members. The Corporate Vice Presidents have a one-year term ofoffice, the same as the Company’s directors.

監査役 4名中Female Audit &Supervisory Board
members

1/4 persons（25.0％）

Business Execution

Audit & Supervisory Board Office(Staff Department for Audit &Supervisory Board Members)

President and CEO,
Representative Director

ESG Committee Including Compliance & Risk Management

Corporate Vice Presidents

M&A Investment Committee

Management Council

Corporate
Planning Division

Independent Auditor

DX Strategy Committee

ICT Strategy
Division

Corporate
Communications Division

Accounting and
Finance Division

Human Resources
Division

Legal
DivisionIntellectual
Property Division

ESG
Division

Global Audit
Division

FUJIFILM Corporation, FUJIFILM Business Innovation Corp., other Group companies

INTEGRATED REPORT 2023

88

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Board of Directors and Audit & Supervisory Board Skills Matrix● Skills Matrix
Meeting attendance in FY2022*1

Expertise and experience sought*3

Years in
office*2

Global management

Knowledge and expertise in corebusinesses and related industries

Name and position

GenderBoard of Directors’
meetings

Kenji Sukeno

Chairman, Representative Director & Board Chairman

Male

13 of 14

10●●

Teiichi Goto

President, Representative Director & Chief Executive Officer

Male

14 of 145●●

Masayuki Higuchi Director, Corporate Vice President & Chief Financial Officer

Male

14 of 14

2

●

●

●

●

Naoki HamaMale

11 of 111

Chisato Yoshizawa Director, Corporate Vice President

DirectorFemale11 of 111

Yoji Ito

Male(New appointee)

Kunitaro Kitamura Director (Outside)Male

14 of 14

6●

Makiko Eda

Director (Outside)

Female13 of 145●Tsuyoshi Nagano Director (Outside)Male

10 of 111●

Ikuro Sugawara Director (Outside)Male

11 of 111●

Nobuo Hanada Full-time Audit & Supervisory Board MemberMale

14 of 143

Motoko Kawasaki Full-time Audit & Supervisory Board Member

Female14 of 142

Masataka Mitsuhashi Audit & Supervisory Board Member (Outside)Male

14 of 14

4

Tatsuya Inagawa Audit & Supervisory Board Member (Outside)Male

14 of 14

3

Director●

Innovation/technology

Finance and accounting/capital policy

Legal affairs/risk management/
governance●●

Sustainability

●

●
●

●

●

●
●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Human resources strategy andcorporate culture

●

●
●
●

●
●

●

●

●
●

●

*1 For Mr. Naoki Hama, Ms. Chisato Yoshizawa, Mr. Tsuyoshi Nagano and Mr. Ikuro Sugawara, attendance is for Board of Directors meetings held after June 29, 2022, when they assumed office as Directors of the Company.
*2 As of elections at the 127th Ordinary General Meeting of Shareholders held June 29, 2023
*3 A maximum of five sought-after items are indicated for each individual. The table is not indicative of all the expertise and experience possessed by each individual.

● Reasons for selection of skills
Skill

89

Reason for selection

Globalmanagement

We aspire to accelerate business growth while resolving environmental and social issues globallyin looking to attain the Company’s future vision of realizing a sustainable society. To such ends,
we seek experience in global corporate management and overseas business management, as
well as knowledge and expertise related to the global business environment.

Knowledge andexpertise in corebusinesses andrelated industries

We aspire to accelerate growth in the healthcare and advanced materials domains, which serve as
growth drivers of the Company. We furthermore aspire to achieve sustainable growth and to build amore resilient business platform. To such ends, we seek experience in leading operations in businesssegments being pursued by the Company (Healthcare, Materials, Business Innovation and Imaging)and furthermore seek knowledge and expertise related to such businesses and related industries.

Innovation/technology

In achieving sustainable innovation, it is important that we provide the world with innovative products
and solutions that contribute to resolving environmental and social issues enlisting the tangible andintangible technological assets we have created by using our base technologies cultivated through thedevelopment of new business models and photographic film, combined with our core technologies
and production technologies for building sustainable competitive advantage. To such ends, we seek
experience in transforming business models as well as knowledge and expertise in technology.

Finance andaccounting/capital
policyWe aspire to build a robust business portfolio to increase our corporate value over the medium
to long term. To such ends, we seek experience in M&As; cash (flow/allocation) management
achieved through operational streamlining, fundraising and dialogue with capital markets; andknowledge and expertise related to finance, accounting and capital policy.

FUJIFILM Holdings Corporation

Skill

Reason for selection

Legal affairs/riskmanagement/
governance

We aspire to create a framework for sustainable growth and medium- to long-term
improvement in corporate value under an open, fair and clear corporate culture. To such ends,
we seek experience in business risk management as well as knowledge and expertise related togovernance, which we position as the foundation of our business activities particularly in termsof long-term CSR plans and medium-term management plans.

Sustainability

We aspire to achieve objectives particularly with respect to long-term CSR and medium-term
management plans. We also aspire to assess whether our trajectory and outcomes align withsocial trends and the medium- to long-term value sought by society in order to improve ourcorporate value. To such ends, we seek experience in striking a balance between economic value
and social/environmental value, as well as knowledge and expertise related to sustainability.

Human resources
strategy andcorporate culture

When it comes to human resources, which serve as our source of innovation, we aspire to build
a robust business portfolio by speedily implementing a human resources strategy centered on
securing and training human resources in new fields, utilizing diverse employees, supporting their
growth and improving engagement. In addition, it is important that we perpetuate and develop
the corporate culture, which has given rise to innovation in order to sustain the growth of theCompany. To such ends, we seek experience in making decisions related to human resources froma management perspective as well as knowledge and expertise in human capital management.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation● Skills Matrix creation philosophy and process
Approach to skills matrix preparation· The Company aims to achieve sustainable growth and increase thecorporate value of the Fujifilm Group while contributing to the sustainable
development of society by conducting sincere and fair business activities,
underpinned by its Corporate Philosophy*1 and Vision*2.
· We position corporate governance as an important management
priority to achieve this aim. In taking on such challenges, we mustensure the effectiveness of our Board of Directors, to which end webelieve it is necessary to articulate the skills we seek from individual
Directors by periodically assessing the functions of the Board of
Directors and the skills matrix.
· As a company with an Audit & Supervisory Board, the Company
enlists its Board of Directors in making decisions on basic policies
of management, strategies and key matters pertaining to businessexecution, and supervising business execution. We deem that theBoard of Directors must assume a dual role in this regard. First,
the Board of Directors must assume the role of making decisions
enlisting its familiarity with technology, human resources and otherassets along with its substantial knowledge regarding the respective
businesses, which has facilitated the Company’s business growththus far. Second, the Board of Directors must assume the roleof ensuring that the trajectory of business execution aligns with themedium- to long-term value sought by society in striking a balance
between economic value and social value toward achieving asustainable society.
· With the Board of Directors effectively assuming its dual role,
we have selected categories of skills necessary for enabling theCompany to achieve sustainable growth and increase corporate
value over the medium to long term, in part by achieving objectivesof long-term CSR plans and medium- to long-term management
plans. Specifically, we are prioritizing businesses, functions andregions in terms of our internal environment from among thethemes that should be addressed by the Board of Directors. Whenit comes to functions in particular, we identify key functions forsupporting the primary functions of the manufacturing industry. In
addition, we have selected categories of skills taking into accountperspectives that the Company prioritizes as well as the interestsof external stakeholders in order to prompt more extensive
discussions among the Board of Directors while also considering
the external environment. The reasons for the selection of eachskill category are provided in the table on p.89.

Special Feature:
Co-creating Value with Stakeholders

Sustainability· The skills matrix applied to Audit & Supervisory Board Members is thesame as that used for Directors in order to confirm their skills in the
categories of “finance and accounting/capital policy” and “legal affairs/risk management/governance,” which are particularly important in termsof auditing the execution of duties assumed by the Board of Directors.
Process of skills matrix preparation· With respect to overhauling the skill items, the Board of Directors
passes resolutions in that regard upon having held discussions withoutside directors and outside Audit & Supervisory Board members
regarding the skills sought with respect to Directors of the Company,
taking into account the roles and responsibilities of the Company’s
Board of Directors on the matter. In addition, when preparing theskills matrix, we identify skills that are particularly desirable withrespect to candidates for Director and Audit & Supervisory Board
Member*3 based on their backgrounds and other such factors. The
Board of Directors then pass resolutions in that regard.
*1 Corporate Philosophy: We will use leading-edge, proprietary technologies to provide
top-quality products and services that contribute to the advancement of culture, science,technology and industry, as well as improved health and environmental protection in society.
Our overarching aim is to help enhance the quality of life of people worldwide.
*2 Vision: Anchored by an open, fair and clear corporate culture and with leading-edge,
proprietary technologies, Fujifilm is determined to remain a leading company by boldly
taking up the challenge of developing new products and creating new value.
*3 This includes Audit & Supervisory Board Members not subject to reelection.

CEO Succession Plan
The Company selects candidates for director, Audit & Supervisory
Board member, CEO and Corporate Vice President at the Board of
Directors in consideration of the criteria stipulated in the Company’s
Corporate Governance Guidelines.
In regard to selecting CEO candidates, we comprehensively
consider the qualifications deliberated at the Nomination andRemuneration Committee, an advisory body for the Board of
Directors. Since establishing the Nomination and Remuneration
Advisory Committee in 2018, each year the Committee hasdeliberated on whether to maintain the current CEO, as well as
updated the list of candidates for succession, which was createdtaking into consideration the qualities required for the CEO.
When Mr. Shigetaka Komori, the previous CEO, resigned in June
2021 and Mr. Teiichi Goto, the current CEO, was appointed as his

Corporate Governance

Data Section

successor, procedures were taken in line with the above process.
At the meeting held in February 2021, the Committee deliberated
on the nomination of Mr. Teiichi Goto as President and CEO,
Representative Director. He had been continuously on the list of
candidates to succeed Mr. Shigetaka Komori, who had requested
to resign from his position as President and CEO, Representative
Director. The Committee then submitted a report regarding thesedeliberations to the Board of Directors meeting held in March 2021.
Note that the current succession plan assumes two patterns. One
is when the CEO must step down suddenly due to unforeseen
circumstances, and the other is when the CEO is succeeded after
serving for a certain period of time.

Activities of the Nomination andRemuneration Advisory Committee
The Nomination and Remuneration Advisory Committee, an advisory body to
the Board of Directors, convenes at least once a year, in principle, to deliberateon the CEO succession plan and the basic policies and procedures for director
remuneration. The committee reports on its deliberations to the Board of
Directors (BoD). The committee consists of three or more members appointed
by resolution of the BoD, and the chairman is selected from the independent
outside directors in order to strengthen objectivity and transparency.
The committee currently has three members as follows:
Chairman

Kunitaro Kitamura (Outside Director)

Committee
memberTsuyoshi Nagano (Outside Director), Kenji Sukeno(Director)

Note: As of June 29, 2022, Mr. Kunitaro Kitamura assumed the post of chairman and Mr.
Tsuyoshi Nagano assumed the post of committee member.

In fiscal 2022, the Committee met three times, in May andDecember 2022 and March 2023, to deliberate on the following
matters related to nomination and remuneration. All committee
members attended each session.
Details of deliberation and reporting· Deliberations on maintaining the CEO· Deliberations on the CEO succession plan
· Report on evaluation results for executive bonuses in fiscal 2021
· Report on the allocation of share-based remuneration under theshare-based remuneration plan
· Deliberation on executive remuneration (evaluation method andamount) in fiscal 2022

INTEGRATED REPORT 2023

90

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Remuneration to directors and Audit & Supervisory Board members●Director remuneration
1 Fixed remuneration
Fixed remuneration is determined according to position andresponsibilities and is paid on a regular basis.
2 Short-term performance-linked remuneration
Short-term performance-linked remuneration is paid for a specificperiod each year as the employee portion of bonuses for directors
who concurrently serve as Corporate Vice Presidents. Short-term
performance-linked remuneration is paid in an amount calculated
based on performance-linked indicators. Here, consolidated revenue
and consolidated operating income, which are the numerical targets
for the Company’s short-term business management, are used as
single-year performance-linked indicators, where the amount paid
varies based on the achievement level of these indicators and incomparison with the previous fiscal year’s performance within therange of 0% to 150% of a reference value.
These indicators were chosen under the assumption thatthey will serve as an incentive for achieving the short-term
performance targets and that they will help improve mediumto long-term corporate value.
The target values and actual values for these indicators infiscal 2022 are as follows.

Financial
indicator

Evaluation
index

Target value forfiscal 2022

Results for fiscal
2022

Consolidated
revenue¥2,650.0 billion¥2,859.0 billion

Consolidated
operating income¥245.0 billion¥273.1 billion

 edium-term performance-linked share-basedM
remuneration (performance share unit)
Medium-term performance-linked share-based remuneration ispaid to directors, other than outside directors (hereinafter, “Eligible
Directors”), with adjustments made in a range of 0% to 150%
relative to the base paid shares according to the level of achievementof indicators in the Company’s medium-term management plan,such as consolidated revenue, consolidated operating income, ROIC
and ESG indicators. A number of shares equivalent to 50% of theadjusted number of shares is paid as medium-term performancelinked share-based remuneration. In addition, cash equivalent to theshare price times 50% of the adjusted number of shares is also paid.
The number of base paid shares by position, as determined by the
Board of Directors, is listed in the regulations for medium-term
performance-linked share-based remuneration. This form of
remuneration shall be granted after performance is finalized.
These indicators were selected under the assumption that they will
help better encourage Eligible Directors to contribute to share pricegrowth, improved corporate value and enhanced performance over the
medium term. These indicators cover the period from fiscal 2021 to
fiscal 2023 of the Medium-Term Management Plan “VISION2023.” Thetarget values for fiscal 2023, the final year of the plan, are as follows.
3

Evaluation index

VISION2023 target
values (fiscal 2023)

Financial
indicator

Consolidated revenue¥2,700.0 billion

Consolidated operating income¥260.0 billion

ESG
indicators

Reduction rate for CO2 emissions
stemming from energy consumed by theCompany (Scope 1 + 2)*

ROIC

8.4%
11% reduction(compared withfiscal 2019)●Audit & Supervisory Board member remuneration
The remuneration for Audit & Supervisory Board members
consists of only fixed remuneration in consideration of their roleand independence, and the amount of remuneration paid toeach Audit & Supervisory Board member is determined basedon deliberations among Audit & Supervisory Board members.
Please refer to the Securities Report for the remuneration ofindividual Directors, the total amount of remuneration for eachcategory of Directors, the total amount for each type of
remuneration and the number of eligible Directors.
https://data.swcms.net/file/ir-fujifilm/dam/jcr:cd594df2-f7e44467-8c68-f60c3c43b8fa/S100R9YB.pdf (Japanese only)Composition of director remuneration (Excluding outside directors)

Restricted Share-Based Remuneration Plan
The Company will issue or dispose of restricted shares by
granting monetary remuneration receivables to the Eligible
Directors for the purpose of allotting restricted shares, inprinciple, every fiscal year, and have the Eligible Directors holdthese shares by having them contribute all of these monetary
remuneration receivables in kind. The aforementioned monetary
remuneration receivables shall be paid on the condition that
the Eligible Directors agree to said contribution in kind and that
the Company and the Eligible Directors have concluded anallotment agreement for transfer restricted shares.
In this plan, to enhance the motivation of Eligible Directors
toward sustainable growth in corporate value over the medium tolong term and to further encourage management from theshareholders’ perspective, the Company imposes share transfer
restrictions from the day the allotment was received until the dayon which the Eligible Director loses the position of director, Audit& Supervisory Board member, corporate vice president, fellow,
etc., or employee of the Company or its consolidated subsidiary.
4

Performance-linked remuneration

1

approx. 55%

2

approx.
10%3

approx.
5%

4

approx. 30%

The above shall be guidelines, with exact percentages determined according to the position of each director and other elements. Remuneration for outside directors
consists of fixed remuneration only from the perspective of their role and independence.

91

FUJIFILM Holdings Corporation* Added to evaluation indices on April 1, 2022. Reduce CO2 emissions to virtually zero(carbon zero) by fiscal 2040.

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Activities of the Board of Directors● Operation status and results of the Board of Directors
The Board of Directors makes decisions on basic
management policies, strategies and important matters related
to the execution of business, and supervises the execution ofbusiness. In addition, the Board of Directors formulates basic
policies on sustainability initiatives.
In fiscal 2022, the Board of Directors and the Audit &Supervisory Board held multiple discussions and exchangesof opinions on items related to decision-making on businessexecution, such as M&As and large-scale capital expenditures
projects in Healthcare and Advanced Materials, which
are priority areas of the Medium-Term Management Plan
“VISION2023,” as well as on medium- to long-term issues suchas decarbonization, DX-based strategies and economic
security.

Distribution of agenda items by theme (January to December 2022)● Provision of information to outside directors and Outside
Audit & Supervisory Board members
The Company distributes materials and provides informationin advance to outside directors and outside Audit & Supervisory
Board members regarding proposals to be submitted to theBoard of Directors and provides explanations in advance.
Furthermore, in addition to programs that contribute tounderstanding of the Group, such as business briefings and toursof showrooms, factories, research laboratories, subsidiaries, etc.,
where technologies are introduced, we hold briefings on
initiatives related to human resources development, IT strategies
and ESG promotion, which are important for the Company’ssustainable growth. In fiscal 2022, we held briefings on ourbusinesses in the growth areas of Healthcare and Advanced
Materials. In addition, outside officers visit several business sites,
including our endoscopy factory and the Design Center, to gain adeeper understanding of the Company’s management andbusiness operations through exposure to on-site information.

■ Governance and sustainability

The roles and responsibilities the Fujifilm Group’s Board of
Directors are to make decisions on basic management policies,
strategies and key matters pertaining to business execution, as
well as to ensure the effectiveness of supervision of businessexecution. Each year, therefore, we conduct evaluations andhear opinions from each director and Audit & Supervisory
Board member. The Board of Directors then deliberates on theanalyses, evaluations and improvement measures anddisclosures a summary of those deliberations.
● Evaluation Process· For the purpose of securing the transparency and objectivity ofthe evaluation, we engaged a third-party organization to establish
evaluation items and create questionnaire items. Based on changes in
the management structure in June 2021 and subsequent initiatives toimprove the BoD, the evaluation criteria and questionnaire items were
given a comprehensive reexamination. In this process, the third-party
organization reviewed documents such as the Board Meeting
minutes, the rules related to the BoD, and related items.
· The third-party organization conducted analysis of the questionnaire
responses from each Director and Audit & Supervisory Board Member.
Based on the analysis, the BoD Office conducted individual interviews
with the Directors and Audit & Supervisory Board Members.

■ Internal control and risk management■ Decisions on important business operations■ Financial results

15％

Time spent on
deliberation by the
Board of Directors

44％

Data Section

Evaluating the effectiveness of the Board of Directors■ Medium- to long-term strategies (Company-wide policies)

15％

Corporate Governance

17％

Visit to Sano Factory, FUJIFILM Healthcare Manufacturing Corporation·T he effectiveness of the BoD was evaluated based on analysisof the document reviews, questionnaire responses andinterview results. Furthermore, the status of initiatives toaddress issues identified in the previous evaluation wasclarified and future issues were identified.
Evaluation Overview

9％Visit to Omiya Office, FUJIFILM Corporation

Subject ofEvaluation

Board Meetings of our company held in CY2022 (all 15that were held)

Evaluators

Our company’s Directors and Audit & Supervisory Board
Members (15 persons in total)

Evaluation
Items

Roles that the BoD should fulfill, composition of the BoD,
quality of discussions, deliberations by the Nomination andRemuneration Advisory Committee, support system for
Outside Officers, constructive dialogue with stakeholders, etc.

INTEGRATED REPORT 2023

92

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section● Evaluation results and policies for 2023
2022
Challenges
Increase opportunities to exchange
opinions and discuss medium- to longterm issues such as sustainability,
measures to improve value in society,
Roles to be
performed by the DX strategies and human resources
Board of Directors strategies.

Initiatives
Agenda items such as decarbonization,
DX strategy and economic security
were presented to the Board of
Directors for discussion and exchangeof views.

Compositionof the Board of
Directors

Evaluation points● To further improve Board of Directors
deliberations, we will further enhance
the provision of information on the
background projects of proposals andthe process of internal discussions.

Quality of the
discussion● For the Board of Directors to fulfill
their expected roles and functions, theCompany will provide opportunities
for the Board of Directors and Audit& Supervisory Board members toacquire the necessary knowledge anddisseminate their insights.
● Through the effective use of theonline conference system, theCompany will further improve andenhance the efficiency of Board of
Directors operations by holding Boardof Directors meetings flexibly andholding briefing sessions, as well as
by providing effective explanations ofproposals.

Constructive
dialogue withstakeholders● When explaining proposals to
outside officers in advance, explain indetail the aim of the business/project
and the related background.
● In relation to investment projects, explain
the risks and details of each project.
●F or proposals that have undergone
deliberations in the Management
Council, M&A Investment Committee,
or by the boards of directors of business
operating subsidiaries, a summary ofthe deliberations will be reported to theBoard of Directors of the Company.
●F urther enhance explanations at thetime of newly appointing officers,
conduct tours of the Company’s Open
Innovation Hub and offer businessbriefings and SR briefing sessions.

Evaluation results

Future issues

The number of agenda items on mediumto long-term issues has increased, anddiscussions have been active.

●W e will further enhance the agenda (mediumto long-term strategies, governance andsustainability-related) in line with one of theBoard of Directors’ roles, which is to “ensurethat we are in line with the medium- to longterm values demanded by society.”

There are ongoing efforts to improveagenda setting.

The composition is appropriate in terms ofthe number of members, the ratio of inside/outside directors and the combination ofknowledge, experience and expertise.
● The Board of Directors is engaged
in in-depth discussions through the
management by the Chairman and theactive statements by outside officers.

●W e will make greater use of the knowledge andexpertise of outside officers when discussing
medium- to long-term themes and strategies.
Continue to examine the possibilityof improving effectiveness by further
diversifying the Board of Directors
membership.
Enhance dialogue between outside officers
and the Chairman of the Board of Directors
and CEO.

2023
Action policy●W e will present agenda items related to theCompany-wide business portfolio, strategy,
human capital and risk to the Board of Directors.
● To further improve the quality of discussions
in the Board of Directors, we will increase
opportunities for free discussion andexchange of opinions on medium- to longterm strategic themes not only among
directors but also among executives.
To improve the quality of discussions in the
Board of Directors, the participation of foreign
executives in strategically important projects
will be diversified.
The Company regularly provides opportunities
for outside officers to exchange opinions with
the Chairman of the Board of Directors andCEO on the following themes.
● The Chairman’s view on the positioning of
the Board of Directors, future direction and
expectations for outside officers● The Company has established anenvironment in which outside officers
understand the Company’s business,
culture, etc., and fulfill their expectedroles by providing opportunities for
explanation of proposals, briefing
sessions, inspection of businesssites and exchange of opinions withexecutive officers.

● The CEO’s medium- to long-term strategies
and recognition of issues● Resume inspection of businesssites* by outside officers, which had
been suspended due to COVID-19.
Help outside officers deepen theirunderstanding of the Company’sbusiness, including by continuing tohold business briefings.
● Utilize online meetings in order toflexibly provide briefing sessionsin advance to temporary Board of
Directors and outside officers.
The system of sharing with directors
the evaluations and expectations ofshareholders and investors for theCompany through analyst reports, etc., isin place.

Increase opportunities to report theopinions and requests of shareholders
and investors to the Board of Directors
and opportunities for outside directors toparticipate in dialogue with shareholders
and investors.

● Report the opinions and requests ofinvestors in IR reports and briefings,
evaluations by the stock market, etc., to theBoard of Directors as appropriate.
●S elect appropriate themes and create
opportunities for outside directors to participate
in dialogue with shareholders and investors.

Note: Sites inspected in 2022: FUJIFILM Corporation Omiya Office (Imaging Solutions business), FUJIFILM Corporation Design Center CLAY Studio, FUJIFILM Business Innovation Center Office in Toyosu, FUJIFILM Healthcare Manufacturing Corporation Sano Factory (Endoscopy business)

93

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Activities of the Audit & Supervisory Board Members and Audit & Supervisory Board● Audit & Supervisory Board Members, Audit & Supervisory Board
The Company has adopted an Audit & Supervisory Board system. As an independent organization with wideranging investigative authority, Audit & Supervisory Board members audit the overall execution of duties by directors,
including the development and operation of the internal control system. Currently, the Audit & Supervisory Board
consists of four Audit & Supervisory Board members, two of whom are outside members. A full-time Audit &Supervisory Board member, Mr. Nobuo Hanada, serves as the chairperson. In principle, Audit & Supervisory Board
meetings are held once a month to share the details of audits. In addition, the Audit & Supervisory Board Office (Staff
Department for Audit & Supervisory Board members) has been established under the direct jurisdiction of the Audit& Supervisory Board to enhance the auditing function of Audit & Supervisory Board members.
● Activities of Audit & Supervisory Board members
Activities of members Each Audit & Supervisory Board member audits the overall execution of duties by Directors
in accordance with auditing policies, auditing plans, and other measures in line with the auditing standards for Audit& Supervisory Board members established by the Audit & Supervisory Board, based on the recognition that it is anindependent organization that plays a role in corporate governance. All Audit & Supervisory Board members attend
Board of Directors’ meetings, and full-time members regularly attend Management Council meetings. In addition,
full-time Audit & Supervisory Board members regularly exchange opinions with representative directors and conduct
meetings with directors, executive officers, department heads and other key personnel. They also inspect important
approval documents and conduct audits of Group company offices in Japan and overseas. In this way, they conduct
audits of all aspects of business execution. The results of these audits are shared with outside Audit & Supervisory
Board members. In fiscal 2022, in addition to web-based remote audits, full-time Audit & Supervisory Board
members resumed Group company audits of subsidiaries in America, Europe and Asia.
Cooperation between the internal audit division and the independent auditor Full-time Audit & Supervisory
Board members hold regular monthly meetings with the Global Audit Division, our internal audit division, to confirm
internal auditing plans, the status of implementation and other matters. Regular monthly meetings are held with
the ESG Division CP & RM Group, our compliance and risk management division, to confirm the occurrence andstatus of responses to risk cases, whistleblowing cases and other matters in the Group. In addition, the Audit &Supervisory Board members exchange opinions with KPMG AZSA LLC, an independent auditor, including on topics
related to accounting audits at regular monthly meetings and cooperate with each other. The auditing plans andimplementation reports of the internal audit division and independent auditor are also reported to outside Audit &Supervisory Board members at Audit & Supervisory Board meetings and opinions are exchanged.
Cooperation with Group Companies’ Audit & Supervisory Board members To strengthen cooperation
between the domestic group companies’ Audit & Supervisory Board members, the Company holds the Domestic
and Group Companies Audit & Supervisory Board Members Liaison Meeting twice a year. The Company’s full-time
Audit & Supervisory Board members regularly receive reports on the implementation of audits from each groupcompany’s Audit & Supervisory Board members, and individual interviews are conducted as appropriate.

Sustainability

Corporate Governance

Data Section● Activities in the Audit & Supervisory Board
A total of 17 Audit & Supervisory Board meetings were held in fiscal 2022.
Attendance at Audit & Supervisory Board meetings in fiscal 2022
Nobuo Hanada

Full-time Audit & Supervisory Board Member

Motoko Kawasaki

Full-time Audit & Supervisory Board Member

17 of 17 (100%)
17 of 17 (100%)

Masataka Mitsuhashi

Outside Audit & Supervisory Board Member

17 of 17 (100%)

Tatsuya Inagawa

Outside Audit & Supervisory Board Member

17 of 17 (100%)Contents of reviews and reports he following resolutions and consultations stipulated by laws and regulations, the Company’s Articles ofT
Incorporation and the Regulations of the Audit & Supervisory Board
The Audit & Supervisory Board’s audit policy, audit plan and division of duties
Preparation of audit reports
Evaluation of, appointment/dismissal of and agreement on remuneration for the independent auditor● 
Reports on the implementation of audits (e.g., at Group companies), reports on the results of inspection ofimportant requests for approval by full-time Audit and Supervisory Board members● Reports on audits by Audit & Supervisory Board members of major subsidiaries● 
Reports on Independent Auditors’ audit plan, quarterly review and results of audits, and discussion on the “Key
Audit Matters (KAM)”● Reports on the audit activity plan and audit implementation by the internal audit department● 
Exchange opinions with the Company’s Representative Directors on medium-term management plan issues andrisks, strengthening of governance, and other matters● 
Reports and exchanges of opinions from relevant executive officers and the presidents of major subsidiaries
according to audit themes● D iscussions on important management issues and risks of the entire Group based on audits by Audit & Supervisory Board members●● Evaluation of the effectiveness of the Audit & Supervisory Board

To further improve its roles and functions as an independent organization that plays a role in corporate

governance, the Company evaluated the effectiveness of the Company’s Audit & Supervisory Board in fiscal 2022
based on the answers to open-ended questions in a questionnaire by each Audit & Supervisory Board member.
As a result of discussions among all Audit & Supervisory Board members, it was evaluated that the Company’s
Audit & Supervisory Board is effective. The evaluation results are also reported to the Board of Directors.
Summary of effectiveness evaluation results
Measures to Improve Effectiveness in Fiscal 2022
● 
Review of the content of Audit & Supervisory Board reviews
and discussions (review of audit results reports of individualcompanies; meetings with representative directors,
directors and executive officers in line with audit priorities)● 
Expansion of reporting to the Board of Directors● 
Establishment of opportunities to exchange opinions withoutside directors● 
Examination of the specific flow of responses by Audit &Supervisory Board members in the event of an emergency● 
Improvement and clarification of processes forappointment and dismissal of Audit & Supervisory Board
members

Issues Identified in the Fiscal 2022 Effectiveness Evaluation● 
Further strengthen cooperation with outside officers
by exchanging opinions on management risks
Strengthen the ability to make recommendations● 
to management by encouraging active discussions
among the Audit & Supervisory Board members on
important issues and risks to the entire GroupThe issues identified in fiscal 2022 will be reflected in the fiscal 2023 audit plan to further improve effectiveness.

INTEGRATED REPORT 2023

94

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate GovernanceApproach to cross-shareholdings

Basic approach to compliance and risk management

The Fujifilm Group can hold cross-shareholdings after verifying their economic rationality
and only when there is a recognized need for business purposes, such as to maintain or expand
transactions, or a recognized contribution to the medium- to long-term development of theCompany. Each year, the Company verifies whether cross-shareholdings have a valid purpose froma medium- to long-term perspective, and whether the benefits and risks associated with theseholdings are commensurate with the cost of capital and other factors. The results of theseverifications are presented to the Board of Directors. As a result of verification, we will sell any
shares for which holdings are deemed unreasonable. We also reported the results of theseverifications for fiscal 2022 at the Board of Directors meeting held in May 2023 in line with thispolicy.

The Fujifilm Group defines compliance as “not only the act of not violating the law but also of
acting in accordance with common sense and ethics.” Because a lack of compliance awarenessamong employees can lead to risks for the Company, we consider compliance and risk to be twosides of the same coin and promote compliance and risk management.

[Specific voting rights execution criteria]
As for voting rights related to cross-shareholdings, we will, in principle, exercise these rights in allagenda items in the appropriate use of our shareholder authority. When exercising voting rights, we
judge the pros and cons following an individual investigation into whether doing so is in agreementwith the purpose of the cross-shareholding, and whether doing so will help maintain or increase
the corporate value of the cross-held company and its stock value.

● Cross-shareholdings* and ratio to net assets（%）(Millions of yen)
160,000

120,000

8

142,451
5.9■ Balance●

121,563 121,783
5.4

4.1

96,868

3.3

74,406

4.4

3.7

4

Director

ReportApprove, Direct

ReportFUJIFILM Holdings ESG Division(ESG Committee Secretariat)

60,1642.2

40,000● The Fujifilm Group Compliance and Risk Management System

ESG Committee(Chairman: President, Vice Chairman: Director responsible for ESG)

83,675
3.3

The Company has established the ESG Committee, which is chaired by the President of
FUJIFILM Holdings and vice-chaired by the executive officer in charge of ESG-related matters. The
Committee deliberates and makes decisions on important matters related to risk management.
ESG Committee activities are regularly reported to the Board of Directors, and the Board of
Directors ensures the effectiveness of Group-wide risk management activities. Audits are also
conducted by the Audit & Supervisory Board to ensure that internal controls are functioning
properly. Each Fujifilm Group operating company appoints officers in charge of compliance and risk
management and implements a variety of measures to instill the spirit of an “open, fair and clear”
corporate culture throughout the Group.

Board of Directors
674,97480,000Compliance and risk management promotion system

FUJIFILM Holdings

Net asset ratio

5.4
91,474

2

Approve, Direct

ReportEach Group Company

0

FY2014FY2015FY2016FY2017* Total cross-shareholdings of the Company and FUJIFILM Corporation

95

Data Section

FUJIFILM Holdings Corporation

FY2018FY2019FY2020

FY2021

FY2022President
Risk manager

Supervise

Audit &
Supervisory
Board

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Data Section

Risk management
 ased on the Risk Management Regulations stipulated by the Group-wide basic policy on risk management and risk management structure,B
the Fujifilm Group identifies issues for preventing the various risks that encompass the Group’s business and implements an appropriate response in the event of a crisis.

● Priority risks determination process● Priority risk issues for fiscal 2023

The Fujifilm Group has identified 60 risk items that could have a significant impact on its
business operations. These risk items are classified into five categories: strategic risk, financial
and tax risk, operational risk, natural disasters and infectious diseases, and climate change.
All risk items are quantitatively evaluated by multiplying the degree of influence by the
likelihood of occurrence, and the “priority risks” and the measures to be taken against theserisks are decided by the ESG Committee.
The priority risks determined by the ESG Committee and the status of responses to theserisks are reported to the Board of Directors semiannually.
Company-wide priority risk issues surrounding our businesses are set after ESG Committee
deliberation and approval annually. When these issues are reviewed, they are also checkedfrom the perspective of human rights and economic security.

Please refer to the 127th Annual Securities Report for details on the risk issues besides those listed
below. [Business risks, etc.] (Japanese only).

Risk Extraction

Risk Assessment

Identification of risks that could affect

Quantitative evaluation based

the Group (5 categories, 60 items)on the degree of influence and likelihood

Failure of new businesses andLargecapital expenditures

Degree ofinfluence(1) Strategic riskof occurrence of each risk item

Changes in market needs(5) Climate change
Climate change physical risks
Climate change transition risk

Priority risk

Small
Low

Likelihood

High

Promotion of risk management

Determination of priority risks and responses

Promotion of responses to priority
risks in each organization inaccordance with response policies

ESG Committee determines theGroup’s priority risks and response
policies

Reporting to the Board of Directors and supervision by the Board of Directors

Risk items

Reason for selection

Information security (cyberattacks,
leakage of confidential information,
leakage of personal information)

Completed the introduction of sensors to monitor the behavior of PCs and servers and theconstruction of a global security monitoring center, and in the process of strengthening
resistance to cyberattacks.

Rising prices and shortages ofraw materials and supplies

Promote the procurement of raw materials and supplies for our Growth Driver business andproducts from multiple regions.

Geopolitical risk

The Group’s production, development, sales bases and suppliers are located throughout theworld. Gather up-to-date information, and in the risk management system, decide on thesafety of employees, the protection of assets and the direction of economic activities, andpromptly communicate them to minimize damage.

Large-scale natural disasters

Risk assessment, monitoring and BCP formulation for each business site and supply chain.

Climate change risk

Promote low-carbon investment by reducing CO2 emissions in product life cycles, promoting production
activities with low environmental impact and implementing internal carbon pricing systems.

Strengthening of chemical
substance regulations

Increased regulation might result in the unavailability of existing raw materials. Consider the
PFAS regulation as a priority issue, and minimize the impact by developing and substituting
alternative materials.

Corruption and bribery

Legal regulations and permits for healthcare projects are strict, and there is a high riskof corruption. Strengthen measures centered on employee education and monitoring ofintermediaries using external vendors.

Pandemic of infectious
diseases

To avoid the business impact of the spread of infectious diseases, formulate a BCP for eachorganization and take thorough measures to prevent internal infections.

Fires and accidents

Utilize knowledge and technology related to the handling of chemical substances andequipment safety, and consider and implement fire and explosion prevention measures.

Product liability and productdefects

In the healthcare business, there is a risk that defects in product quality could lead to healthproblems for customers. Prevent accidents in product design and quality assurance.

Misconduct by officers andemployees

Control fraud by appropriately developing and operating internal controls. Early detection
and deterrence will be realized through monitoring activities.

Tax complianceIn accordance with the Fujifilm Group Tax Policy, the Fujifilm Group makes payment of all required
taxes by all specified dates in all countries in which it operates and strives to maintain and improvegovernance on tax affairs. The Group does not have any serious issue concerning tax-related risks at thistime. Please refer to p.30 of our Sustainability Report 2023 for details on the Fujifilm Group Tax Policy.
https://holdings.fujifilm.com/en/sustainability/report

INTEGRATED REPORT 2023

96

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Stakeholder engagement● Dialogue with shareholders and investors● Major IR activities (Fiscal 2022)

At FUJIFILM Holdings, top management is actively involved in investor relations (IR) activities,
enhancing these activities in an effort to strengthen trust relationships with investors. In addition,
we are working to reduce the gap between intrinsic corporate value and market ratings bycontinuously expounding the Company’s management policy and utilizing management to assist
the capital markets in forming their opinions. Specifically, members of top management attend
events such as financial results briefings and business briefings, participate in conferences
including large meetings with the CEO, hold small meetings with the CEO and CFO, and holdindividual meetings to strengthen communication with investors in Japan and overseas.
In addition, through ongoing dialogue with those in charge of exercising voting rights and ESG
analysts, we update our management policies and governance system, receive appropriate advice
on the Company’s management and strive to build a relationship of mutual trust.
To benefit overseas investors, we post English-language information on our website in atimely manner, and we are working to enhance our IR activities worldwide, including throughcommunication from IR members at our bases in North America and Europe. In fiscal 2022,
we resumed our international road shows, and the CEO and CFO visited North America, Europe,
Singapore and Australia to strengthen face-to-face communication with our international investors.
From Japan, we also conduct many individual meetings online and via teleconferencing.
For individual investors, we consistently post easy-to-understand information about the Fujifilm
Group’s businesses on the IR section of our website and through shareholder newsletters issued
twice a year. In fiscal 2022, we also participated in IR events for individual investors hosted
by securities companies, providing an opportunity for individual investors to deepen theirunderstanding of our management policies and business online.

●Financial results briefings

97

FUJIFILM Holdings Corporation●Shareholder newsletters (Japanese only)

Activity

Numberof times

Overview

Financial results briefings

4

Quarterly meetings for analysts and institutional investors

Business briefings

5

Briefings on environmental strategies (April), Electronic Materials
business (June), Bio CDMO and LS Solutions businesses (December),and DX strategies (March)

Small meetings

4

Held small meetings for analysts and institutional investors with theCEO, CFO and business managers

Conferences hosted by
securities companies

14

The CEO gave a speech at a healthcare conference held in North
America, and the CFO and the executive officer in charge of IR held
individual interviews with institutional investors at each conference

Individual meetings withinstitutional investors

376

Individual online and face-to-face interviews

Overseas IR

4

The CEO, CFO and executive officer in charge of IR conducted roadshows in Europe (September), Singapore (October), North America(November) and Australia (February)Company briefings forindividual investors

1

Online participation in IR events for individual investors hosted by
securities companies (February)

Please refer to the IR Materials page on our website for details.
https://ir.fujifilm.com/en/investors/ir-materials.html●DX Strategy briefing●IR Materials page on the Company’s website

The Fujifilm Group’s Value Creation

Management
Structure(As of September 29, 2023)

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Directors
Kenji Sukeno

Teiichi Goto

Masayuki Higuchi

Chairman,
Director and Board
ChairmanPresident and CEO,
Representative Director

Director, CFO

Career Summary

Career Summary

Career Summary

1977 Joined the Company*
2002	CFO, FUJIFILM Holdings America Corporation2012	Corporate Vice President and General Manager,
Corporate Planning Division of the Company
Director, FUJIFILM Corporation2013	Director of the Company
2016	President and COO, Representative Director of the Company
President and COO, Representative Director, FUJIFILM Corporation
2021	Chairman, Representative Director and Board Chairman of
the Company (to present)
Chairman, Director and Board Chairman, FUJIFILM Corporation(to present)
2023	Chairman, Director and Board Chairman of the Company(to present)

1983	Joined the Company
2008	President, FUJIFILM Medical Systems (Shanghai) Co., Ltd.
2013	General Manager, Medical Systems Business Division,
FUJIFILM Corporation2014	Corporate Vice President, FUJIFILM Corporation
2016	Director, FUJIFILM Corporation2018	Director of the Company
2021	President and CEO, Representative Director of the Company(to present)
President and CEO, Representative Director, FUJIFILM Corporation(to present)

1987	Joined the Company
2009	CFO, FUJIFILM Holdings America Corporation
2015	President and CEO, FUJIFILM Sonosite, Inc.
2018	Corporate Vice President of the Company
Director, Corporate Vice President and General Manager ofCorporate Planning Headquarters, FUJIFILM Corporation
2021	Director, Corporate Vice President, CFO and General Manager ofCorporate Planning Division of the Company (to present)
Director, Senior Vice President, CFO and General Manager ofCorporate Planning Division, FUJIFILM Corporation (to present)

Significant Concurrent Positions
Chairman, Director and Board Chairman, FUJIFILM Corporation
Director, FUJIFILM Business Innovation Corp.

Significant Concurrent Positions
President and CEO, Representative Director, FUJIFILM Corporation
Director, FUJIFILM Business Innovation Corp.

Significant Concurrent Positions
Director, Senior Vice President, CFO and General Manager of Corporate
Planning Division, FUJIFILM Corporation
Audit & Supervisory Board Member of FUJIFILM Business Innovation Corp.

Naoki Hama

Chisato Yoshizawa

Yoji Ito

Director

Director

Director

Career Summary

Career Summary

Career Summary

1986	Joined the Company
2017	Corporate Vice President, General Manager of Display Materials
Business Division and Deputy General Manager of Highly Functional
Materials Business Development Headquarters of FUJIFILM Corporation2018	Director, Corporate Vice President and General Manager of Highly Functional
Materials Business Development Headquarters of FUJIFILM Corporation
2019	Director, Corporate Vice President and General Manager of Inkjet
Business Division of FUJIFILM Corporation
2021	Corporate Vice President and General Manager of Inkjet Business
Division of FUJIFILM Corporation (to present)
Director, Executive Vice President of FUJIFILM Business Innovation Corp.
2022	President & Representative Director, CEO of FUJIFILM Business
Innovation Corp. (to present)
Director of the Company (to present)

1986	Joined the Company
2017	Corporate Vice President, General Manager of Corporate
Communication Office of Corporate Planning Division of the Company
Corporate Vice President, General Manager of Corporate
Communications Division of FUJIFILM Corporation2018	Director, Corporate Vice President and General Manager ofCorporate Communications Division of FUJIFILM Corporation
2021	Corporate Vice President, General Manager of Corporate
Communications Division and ESG Division of the Company(to present)
Director, Senior Vice President, General Manager of Corporate
Communications Division and ESG Division of FUJIFILM
Corporation (to present)
2022	Director, Corporate Vice President of the Company (to present)

Significant Concurrent Positions
President & Representative Director, CEO of FUJIFILM Business Innovation Corp.
Corporate Vice President, FUJIFILM Corporation

Significant Concurrent Positions
Director, Senior Vice President, General Manager of Corporate
Communications Division and ESG Division of FUJIFILM Corporation

1990	Joined the Company
2012	General Manager of Flat Panel Display Materials Laboratories of
R&D Management Headquarters, FUJIFILM Corporation2017	General Manager of Display Materials Research Laboratories andGeneral Manager of Highly Functional Materials ResearchLaboratories of R&D Management Headquarters, FUJIFILM
Corporation
2019	Corporate Vice President of FUJIFILM Corporation
2021	Director & Corporate Vice President, General Manager of Display
Materials Research Laboratories, and General Manager of Highly
Functional Materials Research Laboratories, FUJIFILM Corporation
2022	Director, Corporate Vice President and General Manager ofAdvanced Materials Strategy Headquarters, FUJIFILM Corporation(to present)
2023	Director of the Company (to present)
Significant Concurrent Positions
Director, Corporate Vice President, FUJIFILM Corporation
General Manager of Advanced Materials Strategy Headquarters* The Company refers to FUJIFILM Holdings Corporation and Fuji Photo Film Co., Ltd., prior to its renaming.
INTEGRATED REPORT 2023

98

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Directors

Corporate Governance

Data Section

Audit & Supervisory Board Members
Kunitaro Kitamura

Makiko Eda

Nobuo Hanada

Motoko Kawasaki

Director (Outside)

Director (Outside)

Audit & Supervisory
Board Member

Audit & Supervisory
Board Member

Career Summary

99

Sustainability

Career Summary

Career Summary

2012	Representative Director and President of Sumitomo Mitsui TrustHoldings, Inc.
Chairman (Representative Director) of Sumitomo Mitsui Trust
Bank, Limited2017	Representative Director of Sumitomo Mitsui Trust Holdings, Inc.
Chairman (Director) of Sumitomo Mitsui Trust Bank, Limited
Director of Sumitomo Mitsui Trust Holdings, Inc.
Outside Director of the Company (to present)2013	Representative Director and President of Intel K.K.
2018	Chief Representative Officer of World Economic Forum Japan(to present)
Outside Director of the Company (to present)

Career Summary

1983	Joined the Company
2006	Senior Operations Manager of Accounting and Finance Division,
FUJIFILM Corporation2013	General Manager of Audit Division of the Company
General Manager of Audit Division, FUJIFILM Corporation2017	General Manager of Global Audit Division of the Company
2020	Audit & Supervisory Board Member of the Company (to present)
Audit & Supervisory Board Member of FUJIFILM Corporation(to present)

1983	Joined the Company
2016	General Manager of CSR Group, Corporate Planning Division of
the Company
General Manager of CSR Division, FUJIFILM Corporation
2019	Corporate Vice President, General Manager of ESG Division andGeneral Manager of Corporate General Administration Division of
the Company
Corporate Vice President, General Manager of ESG Division,
FUJIFILM Corporation
2021	Audit & Supervisory Board Member of the Company (to present)
Audit & Supervisory Board Member of FUJIFILM Corporation(to present)

Significant Concurrent Positions
Outside Director of ASAGAMI CORPORATION
Outside Audit & Supervisory Board Member of OHBA CO., LTD.

Significant Concurrent Positions
Chief Representative Officer of World Economic Forum Japan
Outside Director of Tokyo Electron Ltd.

Significant Concurrent Positions
Audit & Supervisory Board Member of FUJIFILM Corporation

Significant Concurrent Positions
Audit & Supervisory Board Member of FUJIFILM Corporation

Tsuyoshi Nagano

Ikuro Sugawara

Masataka Mitsuhashi

Tatsuya Inagawa

Director (Outside)

Director (Outside)

Audit & Supervisory
Board Member (Outside)

Audit & Supervisory
Board Member (Outside)

Career Summary

Career Summary

Career Summary

Career Summary2013	President & Chief Executive Officer (Representative Director) of
Tokio Marine Holdings, Inc.
President & Chief Executive Officer (Representative Director) of
Tokio Marine & Nichido Fire Insurance Co., Ltd.
2016	Chairman (Representative Director) of Tokio Marine & Nichido
Fire Insurance Co., Ltd.
2019	Chairman (Director) of Tokio Marine Holdings, Inc. (to present)
2022	Outside Director of the Company (to present)

1981	Joined Ministry of International Trade and Industry(currently Ministry of Economy, Trade and Industry)
2010	Director-General of Industrial Science and Technology Policy andEnvironment Bureau of Ministry of Economy, Trade and Industry
2012	Director-General of Manufacturing Industries Bureau of Ministryof Economy, Trade and Industry
2013	Director-General of Economic and Industrial Policy Bureau of
Ministry of Economy, Trade and Industry
2015	Vice-Minister of Ministry of Economy, Trade and Industry
2017	Special Advisor to the Cabinet
2022	Outside Director of the Company (to present)

1983	Registered as Certified Public Accountant
2004	Representative Director of Chuo Aoyama PwC Transaction
Services Corporation (current PwC Advisory LLC)
2008	Partner of Aarata (current PricewaterhouseCoopers Aarata LLC)
2010	Representative Director and Deputy President ofPricewaterhouseCoopers Co., Ltd.
2012	Representative Director and President ofPricewaterhouseCoopers Aarata Sustainability Certification Co.,
Ltd. (current PricewaterhouseCoopers Sustainability LLC)
2018	Executive Adviser of PricewaterhouseCoopers Aarata LLC
Chairman of PricewaterhouseCoopers Sustainability LLC
2019	Outside Audit & Supervisory Board Member of the Company(to present)

1983	Public Prosecutor of Tokyo District Public Prosecutors Office2016	Director-General of the Public Security Department of Supreme
Public Prosecutors Office2017	Superintending Public Prosecutor of Takamatsu High Public
Prosecutors Office2018	Superintending Public Prosecutor of Hiroshima High Public
Prosecutors Office2019	Retired from Public Prosecutor
Registered as Attorney at Law
Attorney at Takahashi Sogo Law Office (to present)
2020	Outside Audit & Supervisory Board Member of the Company(to present)

Significant Concurrent Positions
Chairman (Director) of Tokio Marine Holdings, Inc.
Outside Director of Central Japan Railway Company

Significant Concurrent Positions
Outside Director of TOYOTA MOTOR CORPORATION
Outside Director of Hitachi, Ltd.

Significant Concurrent Positions
Outside Director of Nippon Paint Holdings Co., Ltd.
External Director of Skymark Airlines Inc.
Outside Audit & Supervisory Board Member of Integral Corporation

Significant Concurrent Positions
Attorney at Takahashi Sogo Law OfficeOutside Director of Sumitomo Osaka Cement Co., Ltd.

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Corporate Vice Presidents
Teiichi Goto
President and CEOGroup Chief Executive Officer

Masayuki Higuchi

Chisato Yoshizawa

Corporate Vice President & CFO

Corporate Vice President

Chief Financial Officer
General Manager of Corporate Planning Division
Responsible for Accounting and Finance Division,
Fujifilm Way Management Innovation, Logistics

General Manager of Corporate Communications
Division and ESG Division
Responsible for Global Audit Division

Kazuhisa Horikiri

Seigo Sugimoto

Naoto Yanagihara

Yasushi Zama

Corporate Vice
President

Corporate Vice
President & CDO

Corporate Vice
President

Corporate Vice
President

General Manager of
Design Strategy Office
Responsible for Brand
Management

Chief Digital Officer
General Manager of ICTStrategy Division

Responsible forIntellectual Property
Division

General Manager of
Human Resources
Division
Corporate General
Administration Division

Shuzo Takada

Atsushi Sakurai

Yasuhisa Tazawa

Corporate Vice
President

Corporate Vice
President

Corporate Vice
President

General Manager ofGovernment Relations
Division

General Manager ofLegal Division

General Manager ofProcurement &Equipment
Manufacturing Division

INTEGRATED REPORT 2023

100

06
Chapter

Data Section
CONTENTS

101

FUJIFILM Holdings Corporation

102

Financial Analysis and Review

103

Consolidated Financial Statements, etc.

107

11-Year Financial Summary

109

Non-Financial Data for Past 5 Years

110

Appraisals and Awards

111

Corporate Overview

112

Independent Assurance/Assurance by the Officer in Charge

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Data Section

Financial Analysis and Review
Overview of Consolidated Business Performance and Results
Revenue(Billions of yen)

+40.6

300

Revenue increased in all segments and rose
13.2% year on year to ¥2,859.0 billion.

Operating income
Operating income rose 18.9% year on
year to reach ¥273.1 billion, a record
high, due to the increase in profit
accompanying the increase in sales andthe impact of foreign exchange rates.

-4.0

250

229.7

+21.7

-18.1
-15.9

-3.9
In one-time cost
●Healthcare: Difference
Newly acquired companies (CDMO)-5.8
Newly acquired companies (Medical) +3.1
Pharmaceuticals
+4.6
Other
-0.3
●Materials: Difference
Graphic/inkjet asset reductions+11.6●Business Innovation: Difference
Structure strengthening expenses+0.3
Rebranding expenses+3.9●Imaging: Difference
Structure strengthening expenses, etc. +3.6
●Corporate: Difference
+1.2

+17.8

200

Total:+22.2

0FY2021

Healthcare Materials¥113/US$ ¥131/€

BusinessInnovation

Imaging

Group-wide/ Difference ofconsolidation
one-timeadjustments profit and loss

FX

Raw material Others
priceOperating Income: ＋43.4 billion

Total assets increased by ¥179.0
billion to ¥4,134.3 billion, mainly
due to an increase in property,
plant and equipment.

Liabilities
Liabilities decreased by ¥84.0
billion from the end of theprevious fiscal year to ¥1,346.4
billion.

EquityEquity increased by ¥263.0 billion
from the end of the previous fiscal
year to ¥2,787.9 billion.

(Billions of yen)

¥136/US$ ¥141/€

FY2020

FY2021

FY2022

YoYchange-217.7

Cash and cash equivalents

394.8

486.3

268.6

605.7

598.6

633.1

34.5

Inventories

417.7

504.5

567.3

62.8

Other current assets

89.2

135.3

162.1

26.8

Total current assets

1,507.4

1,724.7

1,631.1-93.6

Property, plant and equipment

635.3

736.8

976.1

239.3

Goodwill, net

804.2

824.0

858.3

34.3

Investment securities and other

602.3

669.8

668.8

-1.0

Total non-current assets

2,041.8

2,230.6

2,503.2

272.6

Total assets

3,549.2

3,955.3

4,134.3

179.0

503.0

447.2

376.2

-71.0

Notes and accounts payable

239.9

303.2

320.4

17.2

Other liabilities

584.1

680.0

649.8

-30.2

Total liabilities

1,327.0

1,430.4

1,346.4-84.0

Total FUJIFILM Holdings shareholders’ equity 2,204.6

2,502.7

2,763.1

260.4

Non-controlling interests

FY2021

FY2022

Revenue

2,525.8

2,859.0333.2

2,950.0

91.0

229.7

273.1

43.4

290.0

16.9

Operating margin

9.1%

9.6%

0.5pt

9.8%

0.2pt

Income before Income taxes

260.4

282.2

21.8

295.0

12.8

Net income attributable to
FUJIFILM Holdings

211.2

219.4

8.2

225.0

5.6

Net income attributable to
FUJIFILM Holdings per share (Yen)¥527.33¥547.21¥19.88¥560.95¥13.74

ROE

9.0%

8.3%

-0.7pt8.0%-0.3pt

ROIC

5.6%

6.1%

0.5pt

5.9%

-0.2ptCCC

122 days

125 days

3 days111 days-14 days

Exchange rate (¥/US$)

¥113

¥136

-¥23

¥136

―

Exchange rate (¥/€)

¥131

¥141

-¥10

¥146

-¥5

Analysis of Consolidated Cash Flow

Notes and accounts receivable

Short-term and long-term debt

FY2022

Change fromFY2023
Change fromprevious year (Forecast)* previous year

(Billions of yen)

Operating income

Analysis of Consolidated Balance Sheet
Total assets

273.1

+22.2

Net income attributable to
FUJIFILM Holdings
Net income attributable to FUJIFILM
Holdings rose to a record high of ¥219.4
billion, up 3.9% year on year, due to thesame factors as for operating income.

-17.0

17.6

22.2

24.8

2.6

Total equity

2,222.2

2,524.9

2,787.9

263.0

Total liabilities and equity

3,549.2

3,955.3

4,134.3

179.0

C/F from operating
activities
Net cash provided by operating
activities totaled ¥210.5 billion,
down ¥113.4 billion year on year,
mainly due to an increase in notes
and accounts receivable.

C/F from investing
activities
Net cash used in investing activities
amounted to ¥323.2 billion, mainly
due to capital expenditures.

Free cash flow
As a result of the above, free cash
flow resulted in cash outflows of¥112.7 billion. Free cash flow
excluding business acquisitions
and others resulted in cash
outflows of ¥119.0 billion.

■ Cash flows from operating activities■ Cash flows from investing activities■ Free cash flow
● Free cash flows without acquisitions of businesses and others(Billions of yen)
500

400

420.9
290.4

300

200

141.5

323.9
168.8
170.4

210.5

100

0
-100

-300

-400

-112.7-153.5-200-119.0-279.4FY2020

FY2021-323.2
FY2022

INTEGRATED REPORT 2023

102

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Consolidated Financial Statements, etc.
Consolidated Statements of Income(Millions of yen)

FY2020

FY2021

FY2022

Revenue

2,192,519

2,525,773

2,859,041

Amounts per share of common stock

Cost of sales

1,322,828

1,492,549

1,721,113

Gross profit

869,691

1,033,224

1,137,928

Cash dividend declared

Operating expenses:

FY2020

FY2021

Net income attributable to FUJIFILM Holdings: Basic

453.28527.33547.21

Diluted451.75526.11546.41100.00110.00130.00(Yen)

FY2022

Selling, general and administrative

552,068

652,995

710,702

Research and development

152,150

150,527

154,147

Consolidated Statements ofComprehensive Income

704,218

803,522864,849(Millions of yen)

FY2020

FY2021

FY2022

165,473

229,702

273,079

Net income

183,457

216,445

221,674

Operating income

Other comprehensive income (loss), net of tax:
Other income (expenses):

12

26

(27)

Interest and dividend income

3,884

4,646

7,670

Foreign currency translation adjustments

80,635

117,466

85,528Interest expense(2,578)(2,316)(5,006)

Pension liability adjustments

31,786

13,3812,801

Foreign exchange gains (losses), net(2,593)4,437(3,563)

Unrealized gains (losses) on derivatives

336

(182)

74

Gains (losses) on equity securities, net

48,778

4,453

(662)

112,769

130,691

88,376

Others, net

22,906

19,524

10,706296,226

347,136

310,050

Income before income taxes

Unrealized gains (losses) on securities

70,39730,7449,145

235,870

260,446

282,224

Income taxes:
Current

47,973

48,615

79,168Deferred

7,638

8,514

(13,962)

55,611

57,12965,206Equity in net earnings of affiliated companies
Net income
Less: Net loss attributable to noncontrolling interests
Net income attributable to FUJIFILM Holdings

103

FUJIFILM Holdings Corporation

3,198

13,1284,656

183,457

216,445

221,674(2,252)(5,265)(2,252)

181,205

211,180

219,422

Other comprehensive income (loss)
Comprehensive income (loss)
Less: Comprehensive loss attributable to noncontrolling interests(3,757)(7,127)(2,801)

Comprehensive income attributable to FUJIFILM Holdings

292,469

340,009307,249

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Consolidated Financial Statements, etc.

Consolidated Balance Sheets(Millions of yen)

FY2021

FY2022486,328

268,608

246,093

51,86872,713(18,193)

Affiliated companies

1,396

1,603

567,302

Accrued income taxes

21,45339,214

135,300

162,146

Accrued liabilities

226,830

234,8091,724,729

1,631,107

Short-term operating lease liabilities

31,49431,031Other current liabilities

196,520

158,766

979,575

890,322Long-term debt

247,101

270,060

Accrued pension and severance costs

27,927

21,909Long-term operating lease liabilities

56,86655,400

Deferred income taxes

54,035

49,150

Other non-current liabilities

64,836

59,610450,765

456,129

1,430,340

1,346,451

40,36340,363

2,561(20,144)504,467

Investments and long-term receivables

Total current liabilities

Investments in and advances to affiliated companies

43,46742,921

Investment securities

105,32970,745Long-term finance and other receivables

85,261

77,590Allowance for doubtful receivables(3,010)(2,351)

231,047

188,905

Total investments and long-term receivables
Property, plant and equipment
Land
Buildings and structures

104,718

105,923739,525

770,926

1,497,457

1,505,008

145,084

345,253

Less: Accumulated depreciation

2,486,784(1,749,945)

2,727,110(1,750,999)

Net property, plant and equipment

736,839

976,111

Machinery, equipment and otherConstruction in progress

106,093249,919

648,683

2,354

Prepaid expenses and other

200,095

Trade616,424

Total current assets

Short-term debt

Construction

Trade and financeAffiliated companies
Inventories

FY2022

Notes and accounts payable:

Notes and accounts receivable:

Allowance for doubtful receivables

FY2021

Current liabilities

Current assets
Cash and cash equivalents(Millions of yen)

LIABILITIESASSETS

Non-current liabilities

Total non-current liabilities
Total liabilities

EQUITY

FUJIFILM Holdings shareholders’ equity
Common stock
Common stock, without par value
Authorized: 800,000,000 shares
Issued: 514,625,728 shares

Other assets

Additional paid-in capital

Operating lease right-of-use assets

83,38982,276

Retained earnings

Goodwill, net

824,003858,311

Accumulated other comprehensive income (loss)

Other intangible assets, net

152,691

144,258

Treasury stock, to cost:

Deferred income taxes

24,21030,125

Others178,372

223,218

Total other assets

1,262,665

1,338,188

Total assets

3,955,280

4,134,311――

2,867,848

2,616,191

75,993

163,820

As of March 31, 2021: 114,823,247 shares(481,547)(57,229)

Total FUJIFILM Holdings shareholders’ equity
Noncontrolling interests

As of March 31, 2022: 113,834,546 shares

2,502,657
22,283

2,763,145
24,715

Total equity

2,524,940

2,787,860

Total liabilities and equity

3,955,280

4,134,311

INTEGRATED REPORT 2023

104

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Consolidated Statements of Changes in Equity(Millions of yen)
Balance as of March 31, 2020

Commonstock

Additional
paid-in
capital40,363Retainedearnings

Accumulated
other comprehensive
income (loss)

2,563,091(164,100) (486,102) 1,953,252

Treasurystock

FUJIFILM Holdings
Noncontrollingshareholders’interests
equityTotalequity40,505 1,993,757

Net income

181,205

181,205

Changes in unrealized
gains (losses) on securities

1212

Foreign currency translation
adjustments

79,174

79,174

Pension liability adjustments

31,742

31,742

Changes in unrealized gains(losses) on derivatives

336

336

(32)

Dividends paid to FUJIFILM
Holdings shareholders(39,979)

FUJIFILM Holdings
Noncontrolling
Total
shareholders’interests
equityequity(481,547) 2,502,657
22,283 2,524,940

Treasury
stock

1,525

80,635

Foreign currency translation
adjustments

84,19384,193

1,335

85,52844

31,786

Pension liability adjustments

3,587

3,587

(786)

2,801

336

Changes in unrealized gains(losses) on derivatives

74

74
2,801

310,050(20)

Purchases of stock for treasury

369

Sales of stock from treasury(39,979)(39,979)

3,757(1,314)
485(25,357)(27,367)

17,591 2,222,157

211,180

211,180

5,265

216,445

Changes in unrealized
gains (losses) on securities

26

26

Foreign currency translation
adjustments

115,727

115,727

1,739

117,466

Pension liability adjustments

13,25813,258123

13,381

Changes in unrealized gains(losses) on derivatives

(182)

(182)
7,127

347,136

Net comprehensive income

340,009

Purchases of stock for treasury
Sales of stock from treasury(42)

Dividends paid to FUJIFILM
Holdings shareholders(44,086)

26

(182)

(32)

(32)

(32)

4,206

4,164

4,164

(44,086)(44,086)

Dividends paid tononcontrolling interests(783)

Stock acquisition rights(1,922)

Transfer from retained earnings
to additional paid-in capital

1,964

Equity transactions with
noncontrolling interests and other(42)
40,363(1,922)(783)(1,922)(1,964)(42)
2,867,848

317

Elimination of stock from treasury(423,030)

Dividends paid to FUJIFILM
Holdings shareholders

75,993(481,547) 2,502,657(1,652)(1,694)

22,283 2,524,940

(27)

74

(20)

(20)

(20)

1,308

1,625

1,625

(48,131)(48,131)423,030(48,131)

Dividends paid tononcontrolling interests

(382)
(235)

Transfer from retained earnings
to additional paid-in capital

422,948

(235)

(235)

(57,229) 2,763,145

24,715 2,787,860

13
40,363(382)(422,948)

Equity transactions with
noncontrolling interests and other
Balance as of March 31, 2023

Comprehensive income (loss):
Net income

307,249

Stock acquisition rights(1,525)(2,010)221,674

1,461

369

(52,836) (485,721) 2,204,566

2,252

12

485

2,702,760

219,422(27)

401(2,010)40,363

219,422(27)

296,226

485

Equity transactions with
noncontrolling interests and other

FUJIFILM Holdings Corporation

40,363

Accumulated
other comprehensive
income (loss)
2,867,848
75,993Retainedearnings

Changes in unrealized
gains (losses) on securities(1,314)

Transfer from retained earnings
to additional paid-in capital

105

Additional
paid-in
capital

Net income(20)

Dividends paid tononcontrolling interests
Stock acquisition rights

183,457(20)

292,469

Sales of stock from treasury

2,252

Net comprehensive income

Net comprehensive income
Purchases of stock for treasury

Balance as of March 31, 2022

Balance as of March 31, 2022

Commonstock

Comprehensive income (loss):

Comprehensive income (loss):

Balance as of March 31, 2021

(Millions of yen)

2,616,191

163,820

13

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Data Section

Consolidated Financial Statements, etc.

Consolidated Statements of Cash Flows(Millions of yen)

FY2020

FY2021

FY2022

Net income(Millions of yen)

183,457

216,445

221,674

Adjustments to reconcile net income to
net cash provided by operating activities:
123,423

132,999

142,215(Gains) losses on equity securities, net(48,778)(4,453)

662

Deferred income taxes

7,638

8,514

(13,962)

Equity in net (gains) losses of affiliated companies, net of dividends received(2,571)(12,194)(3,994)

Changes in operating assets and liabilities:
20,57634,741(17,052)(Increase) decrease in inventories

9,215(68,273)(51,545)

4,073

2,079

120,000(78,650)(61,929)(192,360)

(625)

2,364

(1,538)―――Proceeds from short-term debt with maturities longer than three months
Payments of short-term debt with maturities longer than three months(50,000)――

Cash dividends paid to shareholders(37,975)(43,032)(46,109)

Cash dividends paid to noncontrolling interests(1,314)

(783)

(382)

(20)

(31)

(20)

Capital transactions with noncontrolling interests and otherNet cash used in financing activities(Decrease) increase in notes and accounts payable—trade(9,713)21,007(9,221)

Increase (decrease) in prepaid expenses and other current assets

64,071(30,766)(14,349)

Effect of exchange rate changes on cash and cash equivalents

Increase (decrease) in accrued income taxes and other liabilities

46,09928,794(51,712)Net increase (decrease) in cash and cash equivalents

27,444(2,880)7,736

420,861

323,934

210,452

Purchases of property, plant and equipment(100,063)(126,054)(269,844)

Purchases of software(25,544)(39,853)(53,628)

Proceeds from sales and maturities of marketable and investment securities

26,23915,11938,890Purchase of marketable and investment securities(1,685)(2,860)(3,880)(Increase) decrease in time deposits, net(3,090)(4,959)2,711(Increase) decrease in investments in and advances toaffiliated companies and other advances, net(2,945)

(459)

(853)

(173,515)(10,714)(28,653)―

24,480―Investing activities

Acquisition of businesses, net of cash acquired
Sales of businesses, net of cash disposed ofProceeds from sale of subsidiaries

14,707――

Others(13,485)(8,242)(7,968)(279,381)(153,542)(323,225)

Net cash used in investing activities

FY2022

Repayments of long-term debt

Net purchases of stock for treasury

Decrease (increase) in notes and accounts receivable

Net cash provided by operating activities

FY2021

Proceeds from long-term debt

Increase (decrease) in short-term debt, net

Depreciation and amortization

Others

FY2020Investing activities

Operating activities

1,418(3,852)(3,286)(163,093)(105,184)(123,695)

20,31726,32518,748(1,296)

91,533(217,720)

Cash and cash equivalents at beginning of year

396,091

394,795

486,328

Cash and cash equivalents at end of year

394,795

486,328

268,608

Interest

3,112

2,519

5,093

Income taxes

51,841

61,78071,954

Supplemental disclosures
Cash paid for interest:

INTEGRATED REPORT 2023

106

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

11-Year Financial Summary(Millions of yen)

FY2012FY2013

FY2014FY2015FY2016FY2017*FY2018FY2019FY2020

FY2021

FY2022

991,426

1,025,256

1,006,533

983,703

962,711

1,006,512

1,006,536

1,004,076

927,910

991,885

1,026,295

Overseas

1,208,114

1,392,839

1,456,854

1,476,680

1,359,452

1,426,853

1,424,953

1,311,065

1,264,609

1,533,888

1,832,746

Total

2,199,540

2,418,095

2,463,387

2,460,383

2,322,163

2,433,365

2,431,489

2,315,141

2,192,519

2,525,773

2,859,041

108,384

128,461

164,415

180,626

172,281

123,329

209,827

186,570

165,473

229,702

273,079

Interest and dividend income

4,764

6,219

5,858

6,206

5,404

6,262

4,787

5,183

3,884

4,646

7,670

Interest expense(4,934)(4,183)(4,569)(4,376)(4,795)(4,570)(3,314)(2,316)(2,578)(2,316)(5,006)

Income before income taxes

112,883

144,740

188,966

182,242

194,775

197,807

212,762

173,071

235,870

260,446

282,224

Net income attributable to FUJIFILM Holdings

50,84771,558110,940

116,402

131,506

140,694

138,106

124,987

181,205

211,180

219,422

Capital expenditures*1

76,66067,004

56,127

74,14371,80567,48375,372

85,692

100,883

155,230

288,306

Depreciation*1

93,54990,95065,294

65,831

58,87066,52670,86868,61969,15274,58378,253R&D expenses

168,160

165,245

160,281

163,027

160,232

167,940

156,132

157,880

152,150

150,527

154,147

C/F from operating activities

202,099

296,589

267,778

223,479

288,619

261,152

249,343

255,667

420,861

323,934

210,452

C/F from investing activities(143,582)(129,535)(124,555)(157,320)(116,439)(111,786)(208,585)(244,850)(279,381)(153,542)(323,225)

Free cash flow

58,517167,054

143,223

66,159172,180

149,366

40,758

10,817

141,480

170,392(112,773)

Cash dividends paid

19,271

24,09728,92929,73730,84532,52633,40338,432

39,97944,08652,1426

23

62

150,050

50,02250,024

100,018

51,62420

32

20

3,035,901

3,191,847

3,501,950

3,311,970

3,533,189

3,492,940

3,414,692

3,321,692

3,549,203

3,955,280

4,134,311

358,272

359,699

349,689

365,693558,842454,178

524,112624,169

503,080

447,196376,153

1,850,723

1,990,986

2,195,539

2,014,826

2,043,559

2,079,134

2,036,963

1,953,252

2,204,566

2,502,657

2,763,145

2

RevenueJapan

Operating income

Purchases of stock for treasury

Financial condition (Millions of yen)
Total assets
Long-term/Short-term debt
FUJIFILM Holdings shareholders’ equity*1 The figures do not include amounts for rental equipment handled by the Business Innovation segment, and other segments*2 Changes in classification for the presentation of net periodic pension cost and net periodic post-retirement benefit cost are applied retroactively in fiscal 2017 in accordance with changes in U.S. generally accepted accounting principles (US GAAP).

107

FUJIFILM Holdings Corporation

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

FY2012

Special Feature:
Co-creating Value with Stakeholders

FY2013

FY2014

Sustainability

FY2015FY2016

Corporate Governance

FY2017Y2018

FY2019

Data Section

FY2020

FY2021

FY2022Per Share Data (Yen)
Net income attributable to FUJIFILM
Holdings per share*3
Cash dividend per share*4
FUJIFILM Holdings shareholders’ equity per share*5

105.55148.49230.14250.03296.27322.62326.81306.18453.28527.33547.21

40.00

50.00

60.00

65.00

70.00

75.00

80.00

95.00

100.00110.00130.003,840.79

4,130.91

4,552.91

4,472.45

4,668.26

4,832.62

4,976.88

4,886.66

5,514.14

6,244.29

6,888.96

Price ratios/Profitability ratios
Operating income margin to net sales

(%)

4.9

5.3

6.7

7.3

7.4

5.1

8.6

8.1

7.5

9.1

9.6

Ratio of R&D expenses to revenue

(%)

7.6

6.8

6.5

6.6

6.9

6.9

6.4

6.8

6.9

6.0

5.4

Shareholders’ equity ratio

(%)

61.0

62.4

62.7

60.8

57.8

59.5

59.7

58.8

62.1

63.3

66.8

Return on equity (ROE)

(%)

2.9

3.7

5.3

5.5

6.5

6.8

6.7

6.3

8.7

9.0

8.3

ROIC

(%)

—

—

—

—

—

—

—

—

4.3

5.6

6.1

(Times)

0.19

0.18

0.16

0.18

0.27

0.22

0.26

0.32

0.23

0.18

0.14

Dividend payout ratio

(%)

37.9

33.7

26.1

26.0

23.6

23.2

24.5

31.0

22.1

20.9

23.8

Total return ratio

(%)

37.9

33.7

26.1

154.5

61.5

58.7

96.6

72.1

22.1

20.9

23.8

(Yen)

1,836

2,771

4,277

4,451

4,348

4,245

5,034

5,439

6,571

7,502

6,698

Price-to-book value ratio (PBR)*6(Times)

0.48

0.67

0.94

1.00

0.93

0.88

1.01

1.11

1.19

1.20

0.97

Price-to-earnings ratio (PER)*(Times)

17.39

18.66

18.58

17.80

14.67

13.16

15.40

17.80

14.50

14.23

12.24

D/E ratio

Stock price at year-end

6*3 Net income (loss) attributable to FUJIFILM Holdings per share is calculated based on the weighted average number of shares of common stock (excluding treasury stock) outstanding for the year.
*4 Cash dividend per share represents the amount declared per share for each period.
*5 FUJIFILM Holdings shareholders’ equity per share is calculated based on the number of shares (excluding treasury stock) outstanding at the end of each period.
*6 The price-to-book value ratio (PBR) and price-to-earnings ratio (PER) are calculated based on the stock price as of the end of each fiscal year.

INTEGRATED REPORT 2023

108

The Fujifilm Group’s Value Creation

Special Feature:
Co-creating Value with Stakeholders

Strategy and Resource Allocation

Sustainability

Corporate Governance

Please refer to our Sustainability Report 2023 for details.

Non-Financial Data for Past 5 Years
Units

FY2018FY2019FY2020https://holdings.fujifilm.com/en/sustainability/report
FY2021

kt-CO2e

4,648

4,498

3,663

4,216

4,083

Total direct GHG emissions (Scope 1)

kt-CO2e

672

633

603

633

Total indirect GHG emissions (Scope 2),
market-based

kt-CO2e

510

451

409

420

Total GHG emissions (Scope 3)

kt-CO2e

FY2019FY2020

FY2021

FY2022

72,33273,90673,27575,47473,878

—

27.8

28.5

30.0

30.0

%

—

26.0

27.1

27.7

27.8

%

13.9

14.5

15.4

16.1

16.5

Yen

9,974,684

10,028,486

9,701,348

10,170,102

10,326,556

%

—

—

—

—

%

—

—

—

—

%

2.32

2.42

2.48

2.47

580

Percentage of non-Japaneseemployees in key positions

400

Percentage of women in managerial positions
Average annual salary*5
Wage differences between men andwomen in regular employment

—

—

—

3,473

4,085

24,20623,014

21,601

22,531

20,875MW/h

94,741

94,65894,038108,290

119,606

Atmospheric emissions (NOx)t/year

326

325

268

269

302

Atmospheric emissions (SOx)t/year

22

11

15

15

18

t

707

735

675

754

645

Total water intake

Million m3

43.2

42.7

41.3

43.3

41.8

Water intake intensity

kt/100
million yen

1.77

1.84

1.92

1.67

1.46

Total waste generated volume*2t95,00096,00088,70092,500109,300

Total waste used, recycled or soldt

74,10072,40066,70072,40091,700Recycling index*3

7.2

6.8

6.8

7.8

7.7

Valuables conversion index*4

0.65

0.64

0.59

0.61

0.49

*8 Retention rate three years = Number of regular employees who have been retained until the end of the fiscal year among those who have returned to work from a leave of absence in the fiscal year before lastafter returning to work 
Number of employees returning to work from a leave of absence in the fiscal year before last
*9 U nder the “accumulated paid leave (child healthcare),” “child healthcare (half or full day)” and “child nursing care leave” programs
As a program equivalent to childcare leave, special leave (of five days at most) is granted in addition to the above when an employee’s spouse gives
birth to a child, and the number of employees who used this program is shown.
*10 Volunteer work leave shows the number of employees who took “accumulated paid leave (volunteer activity)” and the number of days spent for such activities.
*11 T urnover rate = (Attrition + Compulsory retiree + Voluntary retirement + Retiree through the early retirement program) / Annual average number ofregular employees at Fujifilm on March 31 of the previous fiscal year
*12 T
 urnover rate = (Attrition + Voluntary) / Number of regular employees at Fujifilm on March 31 of the previous fiscal year (Not counting compulsory
retiree or retiree through the early retirement program)*13 T urnover rate = (Attrition + Voluntary) / Number of regular employees at Fujifilm on March 31 of the previous fiscal year + Number of retirees(Numerator not counting compulsory retiree, transferee to other Group companies or retiree through the early retirement program)*14 T urnover rate = (Attrition + Voluntary) / Number of regular employees at FUJIFILM Business Innovation on March 31 of the previous fiscal year +Number of retirees (Numerator not counting compulsory retiree, transferee to other Group companies or retiree through the early retirement program)*15 T urnover rate = Voluntary retirement / Number of regular employees at FUJIFILM Corporation on March 31 of the previous fiscal year + Number ofretirees (Numerator not counting compulsory retiree, transferee to other Group companies or retiree through the early retirement program)*16 T urnover rate = Voluntary retirement / Number of employees at FUJIFILM Business Innovation on March 31 of the fiscal year + Number of retirees from April 1,
2022 to March 30, 2023 (Numerator not counting compulsory retiree, transferee to other Group companies or retiree through the early retirement program)*17 T otal Recordable Incident Rate (TRIR): Number of injuries per million working hours (accidents not associated with lost work time + accidents
involving lost time and deaths)*18 F
 or FY2021, the reported figure is the total spending for the programs rolled out by Fujifilm and for the programs led by our lines of business. For
FY2020 and before, we reported the spending for the programs rolled out by Fujifilm only.
*19 On May 1, 2021, the absorption-type split of the domestic sales functions of the former Fuji Xerox was completed and the functions were integrated
into FUJIFILM Business Innovation Japan.

FUJIFILM Holdings Corporation

Persons%*1 P
 roduct life cycle refers to procurement of raw materials and the manufacturing, transportation, use and disposal of products.
Base fiscal year for emission reduction targets through review of target products at each stage*2 Processed by external service providers and simple incineration or landfill disposal on Fujifilm sites*3 Recycling index = (Recycled volume + Valuable-converted volume) / Simple disposal volume*4 Valuables conversion index = Valuable-converted volume / Recycled volume. Valuable-converted waste is the volume of valuable resources sold to a third party.
*5 The average annual salary includes bonuses and extra wages. The figures are on a non-consolidated basis of Fujifilm.
*6 Number of employees who began a leave period during the relevant fiscal year (from April to the following March)*7 Under the “accumulated paid leave (nursing care for family members),” “nursing care for family members (half or full day)” and “one-day nursing care leave” programs

109

Number of employees
Percentage of female employees

TJ

Volatile organic compounds (VOC) emissions

FY2018Social (S)Amount of GHG emissions throughout theentire product life cycle*1

Renewable energy-derived power
consumption

Units

FY2022

Environment (E) Note: Data for the overall Group

Energy consumption

Data Section

Fujifilm
	FUJIFILM Business Innovation
Percentage of employees withdisabilities
Number of employees taking nursing care leave*

101.1 (Managerial
position)

79.6 (Regular)

98.8 (Managerial
position)

82.1 (Regular)
2.45

6

Fujifilm
	FUJIFILM Business Innovation*7

Persons

25
38
28
30
42
(male 22, female 3) (male 24, female 14) (male 18, female 10) (male 24, female 6) (male 30, female 12)

Persons

85
98
70*19 5959(male 69, female 16) (male 82, female 16) (male 55, female 15) (male 47, female 12) (male 52, female 7)

Retention rate three years after returning towork from nursing care leave *8
Fujifilm
	FUJIFILM Business Innovation

%

—

—

100 (4/4)

100 (2/2)

100 (1/1)%——

20.0 (1/5)

100 (5/5)

100 (1/1)

Number of employees taking childcare leave*6
Fujifilm
	FUJIFILM Business Innovation*9

Persons

18
24
21
73
52
(male 10, female 8) (male 18, female 6) (male 16, female 5) (male 48, female 25) (male 35, female 17)

Persons

382
503
396
*19 298272(male 241, female 141) (male 332, female 171) (male 244, female 152) (male 202, female 96) (male 241, female 31)

Retention rate three years after
returning to work from childcare leave *6
Fujifilm
	FUJIFILM Business Innovation

%

—

—

90.5(38/42)

95.1(39/41)

89.4(42/47)

%

—

—

91.3(73/80)

86.0(92/107)

70.3(78/111)

%

—

—

—

—

52.0

%

—

—

—

—

82.2

Male workers taking childcare leave
Fujifilm
	FUJIFILM Business Innovation
Number of employees taking
volunteer work leave*6
Fujifilm
	FUJIFILM Business Innovation*10

Persons 1 (male 1, female 0) 1 (male 1, female 0) 0 (male 0, female 0) 2 (male 1, female 1) 0 (male 0, female 0)
Persons8212
20(male 6, female 2) (male 12, female 9) (male 1, female 1) (male 1, female 1) (male 0, female 0)

Turnover rate
Fujifilm
	FUJIFILM Business Innovation%*11 2.63*12 1.22*13 1.42*13 1.72*15 1.81%——*14 3.49*14,19 3.55

*16 4.89

—

2.10

2.34

2.07

2.70

TRIR*17
Training expenses

Yen

—

—

Approx. 550 million Approx. 1.7 billion Approx. 3.1 billion

Training expenses per employee*18

Yen

—

—

7,552 Approx. 20,000 Approx. 37,000

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Appraisals and Awards
Credit ratings (As of September 29, 2023)
Credit rating agency
Moody’sStandard & Poor’s
Rating and Investment
Information (R&I)

Appraisals from external organizations
Credit rating

Long-term rating

A2 stable

Short-term rating—

Long-term ratingAA-

Short-term rating

A-1+

Long-term ratingAA

Short-term rating

a-1+

CDP Climate Change
CDP Water Security
A ListCDP Supplier Engagement Leader

JPX Nikkei Index 400 for 2023

2023 Health and Productivity Stock

Health and Productivity Management
Outstanding Organization 2023

Digital Transformation Certification

Sompo Sustainability Index

S&P Global Sustainability Yearbook
Member 2023

Five Stars, Nikkei Smart WorkManagement Survey 2023

Nikkei Smart Work Award 2023
Cultivation category

Nikkei SDGs Management Survey
2022

Sports Yell Company 2023

Note: “ — ” indicates no credit rating available.

Adoption of socially responsible investment (SRI)FTSE4Good Global Index

FTSE Blossom Japan Sector
Relative Index

MSCI Japan ESG
Select Leaders Index

FTSE Blossom Japan Index

S&P/JPX Carbon Efficient Index

MSCI Japan Empowering Women
Index (WIN)Please refer to our website for an explanation of each recognition.
https://holdings.fujifilm.com/en/sustainability/evaluation

INTEGRATED REPORT 2023

110

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Corporate Overview
Corporate overview (As of March 31, 2023)

Stock information (As of March 31, 2023)

Company name:●Stock exchange listing

FUJIFILM Holdings Corporation

Head office:7-3, Akasaka 9-chome, Minato-ku,
Tokyo 107-0052, Japan

Date ofestablishment:

January 20, 1934

Capital:¥40,363 million

Number of consolidated
273
subsidiaries:

Website:●Share registrar●Major shareholders

Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-8233, Japan

Corporate Communications Division,
FUJIFILM Holdings Corporation
7-3, Akasaka 9-chome, Minato-ku,
Tokyo 107-0052, Japan
TEL: +81-3-6271-1111 (Reception)
https://holdings.fujifilm.com/en

Number of shareholders

146,849

Number of shares outstanding

414,625,728

The Master Trust Bank of Japan, Ltd.
(Trust account)

19.2%

Custody Bank of Japan, Ltd. (Trust account)

7.1%

Nippon Life Insurance Company

3.7%

Sumitomo Mitsui Banking Corporation

2.0%

Securities companies

Treasury stock

11,977 (Thousand shares)(2.9%)

13,528 (Thousand shares)(3.3%)

STATE STREET BANK WEST CLIENT TREATY 505234

1.8%

Financial institutions

SSBTC CLIENT OMNIBUS ACCOUNT

1.6%

Daicel Corporation

1.4%

Mitsui Sumitomo Insurance Company, Limited

1.4%

GOVERNMENT OF NORWAY

1.2%

JP MORGAN CHASE BANK 385781

1.1%

Other corporations(general companies)

160,840

22,225(Thousand shares)(Thousand shares)(38.8%)(5.3%)

Individuals andothersForeigncorporations

58,158147,895(Thousand shares)(Thousand shares)(14.0%)

Notes: 1. The Company holds 13,528,181 shares of treasury stock.
2. The shareholding ratio is calculated by deducting the number of treasury shares fromthe total number of issued shares (401,097,547 shares).
3. The numbers of shares and the shareholding ratio are rounded off to the nearest
whole number of the units being used.

(35.7%)

Fujifilm Group organization overview
Holding company

FUJIFILM Holdings Corporation

Operating companies

Shared services company

100%

100%

100%

100%

100%

FUJIFILM Corporation

FUJIFILM Business Innovation
Corp.

FUJIFILM Business Expert
Corporation

FUJIFILM Systems Corporation

FUJIFILM Intellectual Property
Research Co., Ltd.

Subsidiaries

Subsidiaries

Please refer to our website for details on each consolidated subsidiary.

111

Percentages ofissued shares

Name●Distribution of shareholders and shares

Consolidated number
73,878of employees:

Inquiries about IR:Tokyo

FUJIFILM Holdings Corporation

https://holdings.fujifilm.com/en/about/group

The Fujifilm Group’s Value Creation

Strategy and Resource Allocation

Independent Assurance
To improve the objectiveness and accuracy of theinformation disclosed through the Integrated Report
2023, FUJIFILM Holdings Corporation has obtained
SGS Japan Inc.’s independent assurance of thefollowing reported information.

Information subject to independent assurance
Environmental Data
●Scope 1, 2
Energy-related CO2 emissions and energy consumption(pp.26, 73 and 109)
●Scope 1
Non-energy-related CO2 emissions, HFCs and PFCs
(pp.26, 73 and 109)
●Scope 3
Categories 1 and 11 (p.109)●Water intake (pp.17, 26 and 109)
●Waste generated (p.109)●Direct VOC emissions (p.109)

Social Data
●Regular employees: Employee structure (pp.17, 109 and 111)
●Percentage of non-Japanese employees in key positions(pp.26, 76 and 109)
●Percentage of women in managerial positions (pp.26,
76 and 109)
●Percentage of employees with disabilities (pp.26, 76 and 109)●Retention rate after returning to work from childcare/nursing care leave (p.109)

Please refer to the Independent Assurance Report for
FUJIFILM Holdings Corporation’s Sustainability Report2023.

https://holdings.fujifilm.com/
en/sustainability/evaluation

Special Feature:
Co-creating Value with Stakeholders

Sustainability

Corporate Governance

Data Section

Assurance by the Officer in Charge
Publication of Integrated Report 2023
In the Sustainable Value Plan 2030 (SVP2030), our long-term CSR
plan that targets fiscal 2030, we have set targets in each of the fourpriority areas of environment, health, daily life and work style, and areworking to resolve social issues through our businesses. In previous
integrated reports, we introduced our efforts in each priority area
to improve corporate value over the medium to long term for our
stakeholders, including our shareholders and investors. We are working
to continually improve the integrated report by sincerely considering
the opinions that we receive from readers after each year’s publication
and reflecting them in the planning and production of new issues.
In this integrated report, we have focused on explaining the Fujifilm
Group’s mechanism for continuing to generate innovation by further
developing the “story of innovation-based value creation” that wecovered last year. Through explanations of the sources of innovation,such as human resources and technological capabilities, as well as
strategies, resource allocation and specific initiatives, we clarified theCompany’s vision under SVP2030 and the road map for achieving
future growth. We introduced the results of our value creation
initiatives from the perspectives of shareholders and investors, external
partner companies and organizations, and local governments in a
special feature.
As General Manager of the Corporate Communications Division
who is responsible for overseeing production of the integrated report,
I wish to clearly state that this report was created through a legitimate
process and its contents are accurate. I hope that this integrated
report will help all our stakeholders, including our shareholders,investors, customers and employees, have a better understanding of
the Fujifilm Group. We would like to enhance the content of this reportand increase its understandability, as we attach significant value todialogue with our stakeholders. Therefore, we would appreciate yourfrank opinions.

Director and Corporate Vice
President
General Manager of Corporate
Communications Division
and ESG Division
FUJIFILM Holdings Corporation

Chisato Yoshizawa

INTEGRATED REPORT 2023

112

General Disclaimer
The information contained in this integrated report concerning businessperformance and results forecasts, excluding statements of objective fact,

FUJIFILM Holdings Corporation

are based on management’s views that have been made in accordance with

Corporate Communications Division

involve risks and uncertainties. Actual results might differ materially from those

7-3, Akasaka 9-chome, Minato-ku,
Tokyo 107-0052, Japan
Tel: +81-3-6271-1111
https://holdings.fujifilm.com/en

information available at the time of issue. These forward-looking statements
discussed in these forward-looking statements due to a variety of factors,
including trends in economic conditions and markets in which the Company
operates as well as fluctuations in foreign currency exchange rates. The
contents of amendments to earnings releases for prior fiscal years, which wereannounced in 2017, have been retroactively adjusted for fiscal 2012 to fiscal

Published: November 2023

2015. Unless otherwise specified in this integrated report, the information©2023 FUJIFILM Holdings Corporation

herein is as of March 31, 2023.