FUJIFILM : Financial and Corporate Information

Financial and Corporate Information

Key Financial Data

* See pages 81-82 for numerical data for fiscal 2010 to fiscal 2020.

FUJIFILM, from		Top Management		Strategy and		Corporate Governance		Financial and
Founding to Now		Commitment		Value Creation			Corporate Information

Revenue

JPY 2,192.5billion

Operating income JPY 165.5billion

Operating margin

7.5%

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

3,000													300
												7.5%
2,000											2,192.5	200
											165.5
1,000													100
0	10	11	12	13	14	15	16	17	18	19	20	(FY)	0

R&D expenses

JPY 152.2billion

Ratio of R&D expenses to revenue

6.9%

(Billions of yen) ■ R&D expenses (left scale)		Ratio of R&D expenses to revenue (right scale)	(%)

200													12.0
											152.2
150													9.0
												6.9%
100													6.0
50													3.0
0	10	11	12	13	14	15	16	17	18	19	20	(FY)	0

In fiscal 2020, the Fujifilm Group recorded JPY 2,192.5 billion in consolidated revenue (down 5.3% year-over-year), reflecting such factors as a decrease in sales in the photo imaging business, the optical device and electronic imaging businesses, and the document business, although sales increased in areas such as the bio CDMO business, the pharmaceutical business, and the electronic materials business. Operating income was JPY 165.5 billion (down 11.3%), and the operating margin was 7.5% (down 0.6 percentage points).

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

Net income	(Billions of yen)	■ Net income attributable to FUJIFILM Holdings (left scale)			ROE (right scale)							(%)
		181.2	Recordhigh
attributable to
200																						12.0
FUJIFILM Holdings	150																												9.0
JPY 181.2billion
ROE																										8.7%
8.7%	100																												6.0
	50																												3.0
	0	10	11		12	13		14	15	16		17	18	19			20 (FY)	0

Capital expenditures JPY 100.9billion

Depreciation

(only property, plant and equipment)*

JPY 69.2billion

(Billions of yen) ■ Capital expenditures	■ Depreciation
120											100.9
80												69.2
40
0	10	11	12	13	14	15	16	17	18	19	20	(FY)

Consolidated net income attributable to FUJIFILM Holdings for fiscal 2020 reached a record high of JPY 181.2 billion (up 45.0% year-over- year). Return on equity (ROE) was 8.7% (up 2.4 percentage points), achieving our target of at least 8%. In addition to steady recovery in business performance, there were contributions from areas such as improved losses attributable to noncontrolling interests due to converting Fuji Xerox (current FUJIFILM Business Innovation) into a wholly owned subsidiary, as well as from gains on the sale and valuation of investment securities.

Capital expenditures amounted to JPY 100.9 billion for fiscal 2020, mainly for the purpose of increasing production capacity of high-growth products, rationalizing and labor saving of manufacturing facilities, and environmental conservation.

* These figures only include property, plant and equipment excluding rental equipment in the Document Solutions and others.

Total assets

JPY 3,549.2billion

Shareholders΄ equity ratio

62.1%

(Billions of yen) ■ Total assets (left scale)		Shareholders' equity ratio (right scale)	(%)

4,000											3,549.2	80.0
3,000												62.1%	60.0
2,000													40.0
1,000													20.0
0	10	11	12	13	14	15	16	17	18	19	20	(FY)	0

Net cash provided by operating activities JPY 420.9billion

Net cash used in investing activities JPY 279.4billion

Free cash flows* JPY 141.5billion

(Billions of yen) ■ Net cash provided by operating activities ■ Net cash used in investing activities		Free cash flows

500											420.9
250											141.5
0
-250											-279.4
-500	10	11	12	13	14	15	16	17	18	19	20	(FY)

Total assets as of the end of fiscal 2020 were JPY 3,549.2 billion (up 6.8% year-over-year) due to an increase in receivables. The shareholders΄ equity ratio was 62.1% (up 3.3 percentage points) as we maintained a sound capital structure.

During fiscal 2020, net cash provided by operating activities amounted to JPY 420.9 billion, mainly due to a decrease in prepaid expenses and other current assets. Net cash used in investing activities amounted to JPY 279.4 billion, mainly due to acquisitions of businesses. As a result, free cash flows were JPY 141.5 billion (up JPY 130.7 billion year-over-year).

* Free cash flows = Net cash provided by operating activities + Net cash used in investing activities

77 FUJIFILM Holdings Corporation

INTEGRATED REPORT 2021 78

Financial and Corporate Information

Key Non-Financial Data

FUJIFILM, from		Top Management		Strategy and		Corporate Governance		Financial and
Founding to Now		Commitment		Value Creation			Corporate Information

Amount of	(kt-CO)
CO2 emissions	6,000
throughout the entire
product life cycle

2,896kt-CO2	4,500
	3,000
	1,500
	0

■ Disposal stage	■ Use stage	■ Transportation stage	■ Manufacturing stage
■ Procurement stage	■ Emission

							Down
							15.2% YoY
							2,896	2,713
13	14	15	16	17	18	19	20	30	(FY)
								(Target)

Amount of waste	(kt/year) ■ Final waste disposal ■ Recycled volume
generated*1	100

77.7kt/year									77.7	Down
									8.4% YoY
Final waste disposal*2	75								15.6
15.6kt/year	50
Recycled volume									62.1
25
62.1kt/year
	0	13	14	15	16	17	18	19	20	(FY)

In order 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 to this, we are also contributing to CO2 emission reductions in society by providing our products and services.

Energy consumption*1		■ Overseas: renewable energy*2 ■ Overseas: gas*3	■ Overseas: heavy oil, etc.*4
30,000	■ Overseas: electric power, purchased heat energy	■ Japan: renewable energy
20,514TJ	■ Japan: gas*3 ■ Japan: heavy oil, etc.*4 ■ Japan: electric power, purchased heat energy
	(TJ)

20,514 Down

6.2% YoY

20,000

10,000
0	13	14	15	16	17	18	19	20	(FY)

In addition to examining measures to maximize energy use efficiency and reduce CO2 emissions in energy procurement across the Group, we are proactively developing these measures within the Group. In 2019, we formulated goals for the implementation of renewable energy. Our target is to switch to renewable energy at a rate of 50% of purchased electricity by fiscal 2030, and at a rate of 100% by 2050, achieving zero CO2 emissions from all energy we use.

*1 Per unit calorific value is based on the Energy Conservation Act.

*2 FUJIFILM Manufacturing Europe B.V. classified its energy usage as renewable energy because the supply of wind-generated power has been 100% since fiscal 2015.

*3 Total of natural gas, liquefied natural gas (LNG), city gas, butane and liquefied petroleum gas (LPG) *4 Total of heavy oil A, heavy oil C, kerosene, light oil and gasoline

We are taking group-wide measures to reduce the amount of waste generated by 30% by fiscal 2030*3, such as reducing waste through process improvements and reusing plastic materials. Since fiscal 2016, the final disposal volume has increased due to the expansion of new businesses and the difficulties involved in recycling plastics due to tightening of international import restrictions. However, our design and manufacturing divisions have been working together to promote waste reduction activities and improve the quality of waste conversion to valuable resources and recycling, including in offices and distribution warehouses. These efforts resulted in a reduction of waste generated in fiscal 2020.

*1	Processed by external service providers and simple incineration or landfill disposal on Fujifilm sites
*2	Simple incineration or landfill disposal by external service providers or on sites *3 Comparison vs. fiscal 2013

Ratio of women in	(%)		Fujifilm Group		Fujifilm				FUJIFILM Business Innovation
												Up
							15.4
managerial positions																		0.9 pts YoY
16.0
Fujifilm Group
15.4%
12.0
																8.2		Up
Fujifilm																	0.8 pts YoY
8.0
4.6%															4.6		0.6 pts YoY
																				Up
FUJIFILM Business Innovation	4.0
8.2%
0	10	11	12	13	14	15	16	17	18	19	20	(FY)

In Sustainable Value Plan 2030 (SVP2030), the creation of frameworks and workplaces in which diverse employees can play active roles is a priority issue under the area of "Work Style."

One of these efforts involves promoting the success of women, where we have set a goal increasing the ratio of women in executive and management positions in the Fujifilm Group to 25% by the end of fiscal 2030. Fujifilm and FUJIFILM Business Innovation have each formulated and announced a five-year action plan for promoting the success of women covering the period from April 2021 to March 2026 based on the Act on the Promotion of Female Participation and Career Advancement in the Workplace.

Total Group water usage 42.0million t/year

Total Group water discharge*1

38.7million t/year

Recycle rate

137%

• Total Group water usage (left scale) ■ Total Group water discharge*1 (right scale)

(Million t/year)		Recycle rate*2 (right scale)	(vs. water usage: %)

60										240
								42.0	Down
45								1.2% YoY
									180
									137	Down
									10.5% YoY
30										120
									38.7	Down
									6.5% YoY
15										60
0	13	14	15	16	17	18	19	20	(FY)	0

Utilization of paid leave	(%)		Fujifilm		FUJIFILM Business Innovation
Fujifilm	80
			67.2	Down
67.2%
			4.9 pts YoY
60
		55.3	Down
FUJIFILM Business Innovation				11.3 pts YoY
55.3%
40
	20

To secure clean water, an indispensable element in the production of photographic film, we have been	Water	Discharge
taking action to reduce water usage and to utilize recycled water since our founding. Our goal is to reduce	usage
the Group΄s water usage by 30%*2 by fiscal 2030. In Kumamoto Prefecture, where Fujifilm operates a plant,		Use
we have been making efforts to protect water sources for many years. For example, we have been working		Recycling
with local residents to plant trees and maintain forests protecting the catchment function of the watershed
in the upper reaches of the Shirakawa River.
*1 Including water, rainwater, etc., used in business activities *2 Comparison vs. fiscal 2013

79 FUJIFILM Holdings Corporation

0

10

11

12

13

14

15

16

17

18

19

20

(FY)

We are taking action to improve work environments so that each and every one of our diverse employees, with their own strengths, can demonstrate their abilities to the fullest extent and deliver results through efficient work styles, working with stakeholders inside and outside the Group. In implementing our leave systems, we strive to consider the work-life balance of employees. In fiscal 2020, the paid leave utilization rate decreased due to temporary furloughs caused by the spread of COVID-19. However, we will continue to strive to improve the utilization rate by systematically granting paid leave and establishing days where employees are encouraged to take paid leave.

INTEGRATED REPORT 2021 80

Financial and Corporate Information									FUJIFILM, from		Top Management			Strategy and		Corporate Governance			Financial and
									Founding to Now		Commitment		Value Creation						Corporate Information
11-Year Financial Summary
																										(Millions of yen)
		FY2010		FY2011		FY2012		FY2013		FY2014		FY2015		FY2016	FY2017*9		FY2018		FY2019			FY2020
Revenue:
Japan	¥	1,024,839	¥	1,001,814	¥	991,426	¥	1,025,256	¥	1,006,533	¥	983,703	¥	962,711	¥	1,006,512	¥	1,006,536	¥	1,004,076		¥	927,910
Overseas		1,182,431		1,179,182		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
Total		2,207,270		2,180,996		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
Cost of sales		1,306,338		1,316,237		1,353,835		1,503,046		1,511,744		1,491,758		1,391,519		1,464,269		1,433,973		1,360,648			1,322,828
Operating expenses:
Selling, general and administrative		572,156		582,114		569,161		621,343		626,947		624,972		598,131		677,827		631,557			610,043			552,068
Research and development		165,306		173,385		168,160		165,245		160,281		163,027		160,232		167,940		156,132			157,880			152,150
Operating income before restructuring and other charges		163,470		-		-			-		-		-			-		-		-				―			―
Restructuring and other charges		31,715		-		-			-		-		-			-		-		-				―			―
Operating income*1		131,755		109,260		108,384		128,461		164,415		180,626		172,281		123,329		209,827			186,570			165,473
Interest and dividend income		5,148		5,042		4,764		6,219		5,858		6,206		5,404		6,262		4,787			5,183			3,884
Interest expense		(5,435)		(3,991)		(4,934)		(4,183)		(4,569)		(4,376)		(4,795)		(4,570)		(3,314)			(2,316)		(2,578)
Income before income taxes		115,121		85,849		112,883		144,740		188,966		182,242		194,775		197,807		212,762			173,071			235,870
Net income attributable to FUJIFILM Holdings		64,638		42,762		50,847		71,558		110,940		116,402		131,506		140,694		138,106			124,987			181,205
Capital expenditures*2	¥	89,932	¥	90,946	¥	76,660	¥	67,004	¥	56,127	¥	74,143	¥	71,805	¥	67,483	¥	75,372	¥		85,692		¥	100,883
Depreciation*2		106,755		96,580		93,549		90,950		65,294		65,831		58,870		66,526		70,868			68,619			69,152
Net cash provided by operating activities		200,505		137,309		202,099		296,589		267,778		223,479		288,619		261,152		249,343			255,667			420,861
Average number of shares outstanding (Thousands)		486,297		481,699		481,715		481,915		482,050		465,556		443,874		436,098		422,591			408,215			399,763
Financial condition
Total assets	¥	2,698,004	¥	2,734,328	¥	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
Long-term debt		118,176		20,334		317,592		314,968		313,045		310,388		434,843		412,502		353,533			503,171			439,351
Total FUJIFILM Holdings shareholders΄ equity		1,711,329		1,708,937		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
Number of regular employees (consolidated) (Persons)		78,862		81,691		80,322		78,595		79,235		78,150		78,501		77,739		72,332			73,906			73,275
Per share of common stock (Yen)
Net income (loss) attributable to FUJIFILM Holdings*3	¥	132.92	¥	88.77	¥	105.55	¥	148.49	¥	230.14	¥	250.03	¥	296.27	¥	322.62	¥	326.81	¥		306.18		¥	453.28
Cash dividends*4		30.00		35.00		40.00		50.00		60.00		65.00		70.00		75.00		80.00			95.00			100.00
FUJIFILM Holdings shareholders΄ equity*5		3,552.79		3,547.68		3,840.79		4,130.91		4,552.91		4,472.45		4,668.26		4,832.62		4,976.88			4,886.66			5,514.14
Stock price at year-end		2,576		1,941		1,836		2,771		4,277		4,451		4,348		4,245		5,034			5,439			6,571
Price ratios / Profitability ratios
Price-to-book-value ratio (PBR) (Times)*6		0.73		0.55		0.48		0.67		0.94		1.00		0.93		0.88		1.01			1.11			1.19
Price-to-earnings ratio (PER) (Times)*6		19.38		21.87		17.39		18.66		18.58		17.80		14.67		13.16		15.40			17.80			14.50
Return on equity (ROE) (%)		3.7		2.5		2.9		3.7		5.3		5.5		6.5		6.8		6.7			6.3			8.7
Return on assets (ROA) (%)		2.3		1.6		1.8		2.3		3.3		3.4		3.8		4.0		4.0			3.7			5.3
Environmental information*7
Amount of CO2 emissions throughout the entire product life cycle (kt-CO2)*8		5,047		5,362		5,017		4,932		5,021		4,620		4,461		4,157		3,810			3,413			2,896
Water usage per unit (input) (input amount / revenue) (1,000m3 / ¥100 million)		2.41		2.50		2.40		2.05		1.98		1.95		1.96		1.81		1.76			1.84			1.92

*1 Operating income for fiscal 2010 as presented in the table above is operating income after recognition of restructuring and other charges.

*2 Figures do not include amounts for rental equipment handled by the Document Solutions segment, etc.

*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 dividends per share represent 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.

*7 For the environmental data, there are slight variations in the figures as a result of changing the CO2 conversion coefficient or calculation methods and so on.

*8 CO2 emission amounts represent those from not only direct in-house activities but also from the entire product life cycle (from raw material procurement to product manufacturing, shipping, use and eventual disposal).

*9 Changes in classification for 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).

81 FUJIFILM Holdings Corporation

INTEGRATED REPORT 2021 82

Financial and Corporate Information

Consolidated Balance Sheets

				(Millions of yen)
		FY2019		FY2020
ASSETS
Current assets
Cash and cash equivalents	¥	396,091	¥	394,795
Notes and accounts receivable:
Trade and finance		579,539		625,963
Affiliated companies		2,640		2,462
Allowance for doubtful receivables		(23,761)		(22,707)
Inventories		380,911		417,662
Prepaid expenses and other		153,783		89,201
Total current assets		1,489,203		1,507,376
Investments and long-term receivables
Investments in and advances to affiliated companies		27,770		31,849
Investment securities		87,209		111,650
Long-term finance and other receivables		92,221		87,494
Allowance for doubtful receivables		(4,067)		(3,167)
Total investments and long-term receivables		203,133		227,826
Property, plant and equipment
Land		96,776		105,764
Buildings and structures		732,716		718,513
Machinery, equipment and other		1,478,270		1,474,840
Construction in progress		47,481		63,913
		2,355,243		2,363,030
Less: Accumulated depreciation		(1,754,696)		(1,727,779)
Net property, plant and equipment		600,547		635,251
Other assets
Operating lease right-of-use assets		75,261		78,203
Goodwill, net		687,155		804,199
Other intangible assets, net		142,071		128,496
Deferred income taxes		37,811		33,179
Other		86,511		134,673
Total other assets		1,028,809		1,178,750
Total assets	¥	3,321,692	¥	3,549,203

FUJIFILM, from		Top Management		Strategy and		Corporate Governance		Financial and
Founding to Now		Commitment		Value Creation			Corporate Information

				(Millions of yen)
		FY2019		FY2020
LIABILITIES
Current liabilities
Short-term debt	¥	120,998	¥	63,729
Notes and accounts payable:
Trade		195,214		217,308
Construction		25,360		21,157
Affiliated companies		1,724		1,455
Accrued income taxes		24,893		24,527
Accrued liabilities		171,989		197,519
Short-term operating lease liabilities		25,696		28,938
Other current liabilities		94,133		161,651
Total current liabilities		660,007		716,284
Non-current liabilities
Long-term debt		503,171		439,351
Accrued pension and severance costs		33,818		30,090
Long-term operating lease liabilities		52,652		54,946
Deferred income taxes		21,558		32,240
Other non-current liabilities		56,729		54,135
Total non-current liabilities		667,928		610,762
Total liabilities		1,327,935		1,327,046
EQUITY
FUJIFILM Holdings shareholders΄ equity
Common stock		40,363		40,363
Common stock, without par value:
Authorized: 800,000,000 shares
Issued: 514,625,728 shares
Additional paid-in capital		―		―
Retained earnings		2,563,091		2,702,760
Accumulated other comprehensive income (loss)		(164,100)		(52,836)
Treasury stock, to cost:
(114,914,288 shares in FY2020,
114,823,247 shares in FY2021)		(486,102)		(485,721)
Total FUJIFILM Holdings shareholders΄ equity		1,953,252		2,204,566
Noncontrolling interests		40,505		17,591
Total equity		1,993,757		2,222,157
Total liabilities and equity	¥	3,321,692	¥	3,549,203

83 FUJIFILM Holdings Corporation

INTEGRATED REPORT 2021 84

Financial and Corporate Information

Consolidated Statements of Income

						(Millions of yen)
		FY2018		FY2019
				FY2020
Revenue	¥	2,431,489	¥	2,315,141	¥	2,192,519
Cost of sales		1,433,973		1,360,648		1,322,828
Gross profit		997,516		954,493		869,691
Operating expenses:
Selling, general and administrative		631,557		610,043		552,068
Research and development		156,132		157,880		152,150
		787,689		767,923		704,218
Operating income		209,827		186,570		165,473
Other income (expenses):
Interest and dividend income		4,787		5,183		3,884
Interest expense		(3,314)		(2,316)		(2,578)
Foreign exchange gains (losses), net		(2,919)		(2,133)		(2,593)
Gains (losses) on equity securities, net		(244)		(22,084)		48,778
Others, net		4,625		7,851		22,906
		2,935		(13,499)		70,397
Income before income taxes		212,762		173,071		235,870
Income taxes:
Current		43,697		42,822		47,973
Deferred		12,359		(6,708)		7,638
		56,056		36,114		55,611
Equity in net earnings of affiliated companies		418		1,341		3,198
Net income		157,124		138,298		183,457
Less: Net loss attributable to noncontrolling interests		(19,018)		(13,311)		(2,252)
Net income attributable to FUJIFILM Holdings	¥	138,106	¥	124,987	¥	181,205
						(Yen)
		FY2018		FY2019		FY2020
Amounts per share of common stock
Net income attributable to FUJIFILM Holdings: Basic	¥	326.81	¥	306.18	¥	453.28
Diluted		325.82		305.22		451.75
Cash dividends declared		80.00		95.00		100.00

FUJIFILM, from		Top Management		Strategy and		Corporate Governance		Financial and
Founding to Now		Commitment		Value Creation			Corporate Information

Consolidated Statements of Comprehensive Income

			(Millions of yen)
	FY2018	FY2019	FY2020
Net income	¥ 157,124	¥ 138,298	¥ 183,457
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities	(2)	(9)	12
Foreign currency translation adjustments	6,322	(50,279)	80,635
Pension liability adjustments	885	142	31,786
Unrealized gains (losses) on derivatives	188	137	336
Other comprehensive income (loss)	7,393	(50,009)	112,769
Comprehensive income (loss)	164,517	88,289	296,226
Less: Comprehensive loss attributable to	(20,245)	(8,800)	(3,757)
noncontrolling interests
Comprehensive income attributable to	¥ 144,272	¥ 79,489	¥ 292,469
FUJIFILM Holdings

85 FUJIFILM Holdings Corporation

INTEGRATED REPORT 2021 86