Earnings of Q1 FY2021
August 13, 2021
Forward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are managementʼs current assumptions and beliefs based on currently available information. Such forward-looking statements are subject to a number of risks, uncertainties, and other factors. Accordingly, actual results may differ materially from those projected due to various factors.
Highlights of Performance for Q1 FY2021
Consolidated Performance for Q1 FY2021(Billions of yen)
Actual | Change | Change | |||
from FY20 Q1 | from FY19 Q1 | ||||
Revenue | 582.7 | +27.7% | +8.8% | ||
Operating Income | 56.3 | 2.8 times | +51.7% | ||
Net Income | |||||
Record | 57.3 | 2.1 times | 3.9 times | ||
Attributable to | |||||
high | |||||
FUJIFILM Holdings | |||||
- Revenue and profits increased in all business segments. Steady recovery from the previous fiscal year when performance was affected by COVID-19.
- Highest ever Q1 net income attributable to FUJIFILM holdings. In addition to favorable performance, major contribution was from valuation gains on marketable and investment securities resulting from the IPO of an advanced medical company in which we had invested.
■ Full-year Forecast for FY2021
(Billions of yen)
Previous | Current | Change | ||
forecast | forecast | |||
Revenue | 2,440.0 | 2,500.0 | +60.0 | |
Operating Income | 180.0 | 200.0 | +20.0 |
Net Income
Attributable to130.0 160.0 +30.0
FUJIFILM Holdings
Full-year forecast has been revised upward reflecting strong Q1 performance.
1
Key Points of Performance for Q1 FY2021
Bio CDMO Business
Manufacturing capacity expansion plan*
•Decided to make large-scale capital |
investment in the U.S. and Europe sites |
Investment of approx. ¥90.0 billion; |
operations planned to start in H2 2023 |
•Drug substance manufacturing capacity for |
recombinant vaccines will be doubled in the |
U.S. to meet the growing demand for |
COVID-19 vaccines. |
•In addition to expanded manufacturing |
capacity, we will capitalize on industryʼs top- |
class productivity to meet the growing |
demand for biopharmaceuticals and |
contribute to steady supply of high quality |
*Manufacturing capacity at fiscal year-end
■Denmark site20㎘ x 6 units Operation to start in fall 2023
337 | |
67 | |
(Unit: ㎘) |
180 | |
39 | 270 |
141 |
■U.S. site20㎘ x 8 units Operation to start in spring
4972025
67
430
drugs. |
FY21FY23FY25
Make aggressive capital investment to achieve FY2024 revenue target of ¥200.0 billion and CAGR of 20% in and after FY2025.
Key Points of Performance for Q1 FY2021
Life Sciences Business (Regenerative Medicine)
- Century Therapeutics, Inc., which U.S. subsidiary FCDI invested in and established with the aim of developing next-generation cancer immunotherapeutic drugs using allogeneic iPS cells, made IPO on the U.S. NASDAQ market. As a result, valuation gains on marketable and investment securities of ¥17.6 billion were recorded.
- A strategic R&D alliance agreement* was reached with BlueRock Therapeutics LP, a subsidiary of Germany- based Bayer AG, regarding iPS cell therapies for ocular diseases. An upfront payment of US$30 million has been received and up to US$40 million funding for R&D and part of investigational agent manufacturing is planned to be received for the development of the three retinal disease therapy programs.
iPS cell related
technology,
manufacturing
facilities, human
resources etc.
Strengthen alliance with partner companies
・Joint R&D
・Supply therapeutic iPS cells
・iPS cell-related patent licensing
・Contract process development / manufacturing of regenerative medicine products (CDMO)
・Development / sales milestone and royalty payments
Pharmaceutic al companies Bio ventures
Strengthen alliance with partner companies and promote industrialization of cell therapy in the regenerative medicine field by leveraging our iPS cell technology and manufacturing facilities
*Tri-party agreement between FUJIFILM Cellular Dynamics, Inc. (FCDI), Opsis Therapeutics, LLC, (both Fujifilm group companies) and BlueRock Therapeutics LP, which is a subsidiary of major pharmaceutical company Bayer AG
2
Consolidated Performance for Q1 FY2021
(April 2021- June 2021)
(Billions of yen)
Q1 | |||||||||
FY2020 | FY2021 | Change | Impact of | Constant- | |||||
exchange rate | currency basis | ||||||||
Revenue | 456.3 | 582.7 | 126.4 | 19.7 | 106.7 | ||||
100.0% | 100.0% | +27.7% | +23.4% | ||||||
Operating Income | 20.4 | 56.3 | 35.9 | 4.0 | 31.9 | ||||
4.5% | 9.7% | 2.8 times | 2.6 times | ||||||
Income before | 42.2 | 77.8 | 35.6 | 5.1 | 30.5 | ||||
highRecord | |||||||||
Income Taxes | 9.2% | 13.3% | +84.3% | +72.3% | |||||
Net Income Attributable to | 27.5 | highRecord | 57.3 | 29.8 | 3.5 | 26.3 | |||
FUJIFILM Holdings | 6.0% | 9.8% | 2.1 times | +95.6% | |||||
Net Income Attributable to | ¥68.80 | ¥143.34 | ¥74.54 | Other change factors (YoY): | |||||
FUJIFILM Holdings per Share | Impact of raw materials prices on | ||||||||
¥1 | operating income: -¥5.3 billion | ||||||||
Exchange US$/¥ | ¥108 | ¥109 | |||||||
Rates | €/¥ | ¥119 | ¥132 | ¥13 |
Consolidated Revenue and Operating Income by Operating Segment
(Billions of yen)
Revenue | Q1 | Change | Constant-currency | ||||
FY2020 | FY2021 | basis | |||||
Healthcare | 110.2 | 174.2 | 64.0 | (+58.0%) | 58.8 | (+53.3%) | |
Materials | 127.4 | 149.8 | 22.4 | (+17.7%) | 17.9 | (+14.2%) | |
Business Innovation | 168.9 | 186.1 | 17.2 | (+10.2%) | 11.0 | (+6.5%) | |
Imaging | 49.8 | 72.6 | 22.8 | (+45.6%) | 19.0 | (+38.0%) | |
Total | 456.3 | 582.7 | 126.4 | (+27.7%) | 106.7 | (+23.4%) | |
Note: After elimination of | intersegment transactions | ||||||
(Billions of yen) | |||||||
Q1 | Constant-currency | ||||||
Operating Income | Change | ||||||
FY2020 | FY2021 | basis | |||||
Healthcare | 4.4 | 20.7 | 16.3 | (4.7 times) | 15.5 | (4.6 times) | |
Materials | 13.1 | 21.3 | 8.2 | (+62.9%) | 7.6 | (+58.4%) | |
Business Innovation | 13.4 | 14.0 | 0.6 | (+4.5%) | (0.2) | (-1.3%) | |
Imaging | (3.0) | 8.0 | 11.0 | Turned to | 9.1 | Turned to | |
the black | the black | ||||||
Corporate Expenses & | (7.5) | (7.7) | (0.2) | - | (0.1) | - | |
Eliminations | |||||||
Total | 20.4 | 56.3 | 35.9 | (2.8 times) | 31.9 | (2.6 times) |
3
Summary by Operating Segment: Healthcare
- In addition to organic growth in all sub-segments, consolidation of FUJIFILM Healthcare in the medical systems business contributed to a sharp year-over-year increase of 58% in revenue and a 4.7 times increase in operating income.
(Billions of yen) | 174.2 | Medical systems: Revenue ¥114.2 billion (up 67.1% YoY) | ||||||
180.0 | 40.0 | • In addition to turning FUJIFILM Healthcare into a consolidated | ||||||
160.0 | subsidiary, the steady demand for ultraportable digital X-ray | |||||||
35.0 | imaging systems and ultrasound diagnostic devices, both useful | |||||||
140.0 | 30.0 | for pneumonia diagnosis, contributed to a surge in revenue. | ||||||
Bio CDMO: Revenue ¥33.9 billion (up 72.5% YoY) | ||||||||
120.0 | 110.2 | 114.2 | ||||||
25.0 | • Favorable performance of contract process development and | |||||||
100.0 | 20.0 | manufacturing of biopharmaceuticals and manufacture of drug | ||||||
substances for COVID-19 vaccine candidates at the U.S. site | ||||||||
80.0 | 68.4 | 15.0 | resulted in a surge in revenue. | |||||
60.0 | Life sciences*: Revenue ¥26.1 billion (up 17.5% YoY) | |||||||
20.7 | 10.0 | |||||||
40.0 | 19.6 | 33.9 | • In the life sciences business, solid sales of cell culture media for | |||||
(11.9%) | ||||||||
20.0 | 4.4 | 5.0 | biopharmaceutical manufacturing led to a surge in revenue. | |||||
22.2 | (3.9%) | 26.1 | • In the consumer healthcare business, favorable sales of | |||||
0.0 | 0.0 | Metabarrier EX and other supplements and steady sales of new | ||||||
Q1 FY20 | Q1 FY21 | cosmetic products contributed to higher revenue. | ||||||
Medical systems Bio CDMO | Life sciences | *Life sciences: Disclosure segment consisting of life sciences business | ||||||
(cells, culture media, reagents), pharmaceutical business, and |
Operating income (margin) | consumer healthcare business (cosmetics, supplements) |
Summary by Operating Segment: Materials
- Significant year-over-year increases of 17.7% in revenue and 62.9% in operating income led by steady recovery from the COVID-19 pandemic as well as growth in the electronic materials business in tandem with the increasing demand for semiconductors.
(Billions of yen) | Electronic materials: Revenue ¥33.7 billion (up 16.1% YoY) | ||||||||
• | Revenue rose on favorable sales of wide ranging products, | ||||||||
160.0 | 149.8 | 40.0 | including CMP slurries and polyimide, reflecting a rise in | ||||||
semiconductor demand. | |||||||||
140.0 | 127.4 | 33.7 | 35.0 | Display materials: Revenue ¥24.8 billion (up 19.6% YoY) | |||||
120.0 | 30.0 | • | Revenue rose on strong sales of various high-functioning film, | ||||||
29.0 | |||||||||
driven by the steady demand for smartphones as well as a rise | |||||||||
100.0 | 24.8 | 25.0 | in demand for monitors, tablets and TVs amid the COVID-19 | ||||||
20.7 | pandemic. | ||||||||
80.0 | 23.8 | 20.0 | Other high-functioning materials*: Revenue ¥23.8 billion | ||||||
60.0 | 20.7 | 15.0 | (up15.6% YoY) | ||||||
• | In the recording media business, revenue increased due to a | ||||||||
40.0 | 67.5 | 21.3 | 10.0 | gradual recovery in demand for tapes, which had fallen amid | |||||
57.0 | 13.1 | (14.2%) | the COVID-19 pandemic. | ||||||
20.0 | 5.0 | Graphic communication: Revenue ¥67.5 billion (up 18.5% YoY) | |||||||
(10.3%) | • | Revenue rose as active implementation of online negotiations | |||||||
0.0 | 0.0 | ||||||||
led to higher sales. | |||||||||
Q1 FY20 | Q1 FY21 | ||||||||
• | In the inkjet business, revenue increased on steady sales of | ||||||||
industrial inkjet printheads, reflecting the growing demand in | |||||||||
Electronic materials | Display materials Other high-functioning materials | the ceramics markets in China and Europe. | |||||||
Graphic communication | Operating income (margin) | *Other high-functioning materials: Disclosure segment consisting of | |||||||
industrial products business, fine chemicals business, and recording |
media business.
4
Summary by Operating Segment: Business
Innovation
- Revenue and operating income increased 10.2% and 4.5% year-over- year respectively as the business recovered from the COVID-19 pandemic.
- Started to launch new products under the FUJIFILM brand. We will further accelerate global expansion including new OEM supplies.
(Billions of yen) | Office solutions: Revenue ¥127.6 billion (up 9.5% YoY) | ||||||||
200.0 | 186.1 | 40.0 | |||||||
• | In the office products field, unit sales increased year-over-year | ||||||||
180.0 | 168.9 | 35.0 | in Japan, China, and the Asia-Pacific region,and also for exports | ||||||
to Europe and the U.S. After-sales revenue also rose sharply, | |||||||||
160.0 | |||||||||
30.0 | driven by the recovery from the COVID-19 pandemic. | ||||||||
140.0 | • | For global expansion under the FUJIFILM brand, new models of | |||||||
120.0 | 127.6 | 25.0 | Apeos series, digital color multifunction devices / printers with a | ||||||
116.4 | 20.0 | totally new design and stronger security features, were | |||||||
100.0 | released in April 2021. | ||||||||
80.0 | 15.0 | Business solutions: Revenue ¥58.5 billion (up 11.5% YoY) | |||||||
60.0 | 10.0 | ||||||||
40.0 | • | Revenue climbed due to acquisition of system orders from | |||||||
13.4 | 58.5 14.0(7.5%)5.0 | domestic municipalities and a sales increase in the BPO | |||||||
20.0 | 52.5 | ||||||||
(7.9%) | (Business Process Outsourcing) business mainly overseas. | ||||||||
0.0 | 0.0 | • | Of total revenue, the "industrial solution field" centering on the | ||||||
Q1 FY20 | Q1 FY21 | BPO business that offers document digitalization accounts for | |||||||
60%, and "DX solution field" centering on IT outsourcing that | |||||||||
provides IT infrastructure for the SMB market accounts for | |||||||||
Office solutions | Business | (OperOperating Margin) | 40%. Aim to accelerate growth by strengthening both fields | ||||||
solutions | income | further. |
(margin)
Summary by Operating Segment: Imaging
- Performance recovered sharply as revenue surged 45.6% YoY and operating income returned to the black year-over-year, due to strong sales of instant photo systems.
72.6
49.8
44.9
27.8
22.027.7 8.0
(11.0%)
Q1 FY20 | -3.0 | Q1 FY21 |
(-6.0%) |
Operating income (margin)
Consumer imaging: Revenue ¥44.9 billion (up 61.0% YoY)
- In addition to the recovery from the COVID-19 pandemic, revenues soared year-over-year on solid sales of instant photo systems and dry minilabs / materials for retailers in the U.S.
- As an entry model of instant photo systems, the instax mini 40 compatible with mini format film was released in April 2021. It was rated highly in the market for its classic camera design that never goes out of style, and achieved firm sales in Japan and overseas.
Professional imaging: Revenue ¥27.7 billion (up 26.1% YoY)
- FUJIFILM GFX100S, a mirrorless digital camera which has gained a high reputation worldwide for its superior image quality using a large format sensor despite its compact body, increased its user base and continued to boost sales.
- Revenue climbed as sales of broadcast and cinema lenses, which had been hit by a drop in demand due to the COVID-19 pandemic, began to pick up. Sales in the monitoring / measurement field, including long-range surveillance cameras and machine vision lenses, also fared well.
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Fujifilm Holdings Corporation published this content on 13 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 August 2021 06:10:07 UTC.