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