FUJIFILM : Integrated Report 2021 Download Entire Report (A3 spread)

IMPROVING THE FUTURE

FUJIFILM Holdings Corporation

INTEGRATED REPORT

2021

At Fujifilm, we are continuously innovating -creating new technologies,

products and services

that inspire and excite people everywhere. Our goal is to empower the potential and expand the horizons of tomorrow's businesses and lifestyles.

Editorial Policy

This integrated report mainly contains financial and non-financial information regarding the Fujifilm Group's corporate activities that is important for shareholders and investors as well as growth strategies and other relevant matters. Beginning this year, we focus on the basic concept of communicating and sharing the Fujifilm Group's vision and ideals with stakeholders. In this report, we have emphasized presenting the Fujifilm Group's efforts toward sustainable growth in conjunction with the Sustainability Report SVP Stories. Photographs presented in this report were taken after sufficient measures were put in place to prevent infection.

Period of Coverage

Financial and non-financial data is aggregated from fiscal 2020 (April 2020 to March 2021). Some activity details on or after April 2021 are also included.

Organizations Covered by the Report

The Fujifilm Group (FUJIFILM Holdings and all consolidated companies) Major consolidated companies are shown on our website.

https://holdings.fujifilm.com/en/about/group

Disclosure Tools

IMPROVING THE FUTURE

FUJIFILM Holdings Corporation

INTEGRATED REPORT

2021

Integrated Report

Sustainability Report	Sustainability Report
SVP Stories	Management Performance

CONTENTS

03 The Fujifilm Group's Commitment

FUJIFILM, from Founding to Now

05 Value Creation Story

07 Evolution of Our Technologies and Businesses

11 Business Portfolio

1. Sources of Corporate Value
2. The Fujifilm Group's Proprietary Technologies
3. Value Created by Technology

Top Management Commitment

1. Reflecting on the VISION2019 Medium- Term Management Plan, and on Fiscal 2020
2. Medium-TermManagement Plan VISION2023

34 Initiatives for "Health" through Business Activities

38 Initiatives for "Daily Life" through Business Activities

42 Initiatives for "Work Style" through Business Activities

45 Initiatives for "Environment" through

73 Management Structure

Financial and Corporate Information

77 Key Financial Data

1. Key Non-Financial Data

1. 11-YearFinancial Summary

1. Consolidated Balance Sheets

1. Consolidated Statements of Income

86	Consolidated Statements of
	Comprehensive Income
87	Consolidated Statements of
	Changes in Equity

Referenced Standards and Guidelines

International Integrated Reporting Council (IIRC): International Integrated Reporting Framework

Global Reporting Initiative (GRI): The GRI Sustainability Reporting Standards

Sustainability Accounting Standards Board (SASB): Sustainability Accounting Standards

Task Force on Climate-related Financial Disclosures (TCFD): TCFD Recommendations Report

Ministry of Economy, Trade and Industry (METI): Guidance for Collaborative Value Creation

METI: TCFD Guidance 2.0

Ministry of the Environment: Environmental Reporting Guidelines 2018

About the Integrated Report Front Cover The FUJIFILM corporate logo features a sharp design in the central portion of the name (between "I" and "F"), expressing the Company's commitment to advanced technology. With this portion as a motif, we layer it with a light shining on the Earth, creating an appeal to our work to resolve social issues through value created by advanced technologies.

FUJIFILM Holdings Corporation Corporate Site

https://holdings.fujifilm.com/en

FUJIFILM Holdings Corporation Sustainability Report

https://holdings.fujifilm.com/en/sustainability/report

17 Message from the CEO

Strategy and Value Creation

23 The Fujifilm Group's Vision and Ideals

25 Opportunities, Risks, Targets and Initiatives in Priority Areas

27 Targets for Achieving SVP2030 and Initiatives in Fiscal 2020

Business Activities

49 Feature 1: Initiatives in Healthcare

54 Feature 2: Efforts to Promote Diversity

Corporate Governance

57 Message from the Chairman of the Board of Directors

59 Corporate Governance Structure

69 Roundtable Discussion with Outside Directors

88	Consolidated Statements of
	Cash Flows
89	Financial Analysis and Review
92	Non-Financial Information
94	Creation of Shareholder Value
95	Corporate Overview
96	Appraisals and Awards

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The Fujifilm Group's Commitment

Our Purpose

Corporate Philosophy	Vision
We will use leading-edge, proprietary technologies	Anchored by an open, fair and clear
to provide top-quality products and services that	corporate culture and with leading-edge,
contribute to the advancement of culture, science,	proprietary technologies, Fujifilm is determined
technology and industry, as well as improved	to remain a leading company by boldly taking up
health and environmental protection in society.	the challenge of developing new products and
Our overarching aim is to help enhance	creating new value.
the quality of life of people worldwide.

Corporate Slogan

How We Act

Charter for Corporate Behavior

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

Code of Conduct

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

1.	A Trusted Company	• Respect for Human Rights
2.	Social Responsibility	• Fair Corporate Activities
3.	Respect for Human Rights	• Protection / Preservation of
4.	Global Environmental Conservation	Corporate Assets and Information
5.	Vibrant Workplaces	• Measures Related to Environmental Issues
6.	Management of Various Crises

How We Will Achieve Our Purpose

CSR Plan

Sustainable Value Plan 2030

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

Medium-Term Management Plan

VISION2023

In April 2021, the Fujifilm Group formulated a specific action plan for achieving the goals set forth in the Sustainable Value Plan 2030.

FUJIFILM, from Founding to Now

05 Value Creation Story

1. Evolution of Our Technologies and Businesses

1. Business Portfolio

1. Sources of Corporate Value
2. The Fujifilm Group's Proprietary Technologies
3. Value Created by Technology

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FUJIFILM, from Founding to Now

Value Creation Story

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

Realization of

The Fujifilm Group has faced and overcome many tough challenges over the years, including the development of technology to manufacture film in Japan, skyrocketing raw material prices at the time of the oil crises and Silver Thursday, and being sued by Eastman Kodak under Section 301 of the U.S. Trade Law. In particular, the photography market, which had been our main business, fell into steep decline beginning in 2000 due to rapid advances in digitization. The Fujifilm Group faced the crisis of losing its core business, but we managed to boldly transform our business structure and expand our business domain by further developing and innovating the technologies we had cultivated. By orienting

ourselves to the future and determining what must be done and what is lacking today, and emphasizing the strengthening of strategies and allocating resources from a pre-arranged backcasting, we have been able to build a resilient business portfolio.

By creating value through innovation, the Fujifilm Group aims to resolve the challenges faced by society through its business activities and take the environment and society into consideration in all

its business processes so as to contribute to the realization of a sustainable society.

For more information, please see "Medium-Term

Management Plan VISION2023" on pages 29-33.

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Resolving Issues in Global Society

CSR Plan: Sustainable Value Plan 2030 (SVP2030)

	Environment	Health	Daily Life	Work Style
	Contribute to resolving	Create a healthy society	Support the tangible and	Promote social change where
	environmental issues through	through the process of	intangible aspects of social	every person is motivated in
	reducing environmental	prevention, diagnosis and	infrastructure through	their workplaces, through
	impacts	treatment in healthcare	various products, services	extending our in-house
			and technologies	work-style reform
	Supply Chain	Governance

Business Activities

Sources of Corporate Value		Business Segments
Technological		Corporate		Healthcare
Capabilities		Culture

Materials

Human	Brand Strength
Resources
	Business
			Innovation
Global Network
	Imaging

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Medium-Term Management Plan

Basic Strategy in the New Medium-Term Management Plan VISION2023

Accelerate business growth in healthcare and advanced materials and build a more resilient business platform to facilitate sustainable growth

	Reinforce business portfolio	Strengthen cash flow management
	management
	Enter into new markets for	Create stronger integrated business
	further growth	synergies through M&A

Corporate Philosophy / Vision

Code of Conduct

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FUJIFILM, from Founding to Now

Evolution of Our Technologies and Businesses

Since its founding, the Fujifilm Group has amassed a wide range of technologies cultivated through its photographic film business and provided products and services valuable to society, continuing to grow as a company. The Group promoted a growth strategy by consistently anticipating the future and centering on technologies such as optics, chemicals and electronics, which are needed to develop and produce photo-related products. Here, we will explain the history of innovation in the Fujifilm Group.

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

STEP 1 toward Transformation

From 1934

Domestic Production of

Film and Establishment of

Sales Network in Japan

From 1960	From 1980
Expansion of Business /	Pursuit of Digitization
Enhancement of	and Acceleration of
Technologies	Globalization

2000-2006 Adapting to changes

Second Foundation-

Creation of a Resilient Business Portfolio

• Established in 1934. Launched domestic film for motion pictures
• Expanded business operations into the medical, graphic systems and related fields by sales of X-ray and graphic arts film
• Established a robust position as a manufacturer of comprehensive photosensitive materials
• Expanded into the lens and optical fields
• Developed Japan's first computer for lens design in 1956

• Commenced development of
  a global network by establishing local overseas subsidiaries and offices
• Established Fuji Xerox, as a joint venture with Rank Xerox
• Pioneered successful research, development and commercialization of high-sensitivity color negative films

• Accelerated globalization by organizing production sites and promoting sales overseas
• Promoted early efforts to digitize the photography, medical and graphic systems fields
• Developed and sold a host of innovative products, including the Fuji Computed Radiography (FCR) system and digital still cameras

In 2000, the photographic film business accounted for roughly 60% of Fujifilm's sales and generated around two- thirds of operating income. With the subsequent rapid rise of digital technology, the photographic film market shrank at a rapid pace. The market fell to less than one-tenth of its historical peak by 2010. In order to overcome the biggest crisis since its founding-losing its core business-Fujifilm undertook a large-scale business restructuring centered on reorganizing its photography-related business. By taking stock of the technologies we had cultivated in the

development and production of photographic film and examining the fields in which these technologies could be applied, we were able to enter the markets of cosmetics and pharmaceuticals, newly identified as future growth areas. After making Fuji Xerox Co., Ltd. (now FUJIFILM Business Innovation Corp.) a consolidated subsidiary in 2001, we established FUJIFILM Holdings Corporation in 2006 to bolster our consolidated management. This also marked our transition to a holding company structure.

Healthcare & Material Solutions

1936	1958	1959	1971	1983			1999
World first
Launch of X-ray film	Launched	Launched Fuji Medical	Launched the	Launched FCR, the world's	Launched the medical-
	FUJITAC	X-Ray Film PX, a film pursuing	endoscope	first digital X-ray diagnostic	use picture archiving and
		non-flammability and high	business	imaging system	communications systems
		sensitivity					(PACS) SYNAPSE

2004			2006
World first
Developed a fully digital double-	Entered into the cosmetics
balloon endoscope	market

Document Solutions

1962	1962
Japan first
Established Fuji Xerox	Launched sales of
	Japan's first plain-paper
	copy machines

Imaging Solutions

1975 Industry first

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

1987 World first

Launched the Zero Printer 100, offering both printing and copying functions

2000	2000	2001	2002
Industry first
Established a "Zero Landfill"	Launched the Color DocuTech 60, the	Fuji Xerox became a consolidated	Launched the Net Print service
system on a nationwide	world's fastest (at that time) full-color	subsidiary of Fuji Photo Film	to retrieve personal documents
scale, achieving a recycling	electronic printing and publishing system	(changed Fuji Photo Film's	from copiers in convenience
rate of 99.97%		investment ratio to 75%)	stores

Successfully transformed the business structure in response to sharp decline in demand for photographic film

1934	1958	1976			1986			1988			1998
World first	World first	World first
Launched positive	Launched general-use	Developed the Fujicolor	Launched the Fujicolor	Developed the FUJIX	Launched the
film for motion	color negative film	F-II 400, the world's	QuickSnap, the world's	DS-1P, a fully digital	instax mini 10
pictures made	color paper	first high-speed color	first one-time-use	still camera	instant camera
domestically in Japan		negative film	recyclable camera

2000 World first

Launched the FinePix 4700Z digital camera equipped with the Honeycomb Super CCD sensor

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