Fujifilm : Medium-term Management Plan VISION2023

再配布禁止

FY2024-2030Medium-term Management Plan

VISION2030

April 17, 2024

Forward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are management's 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.

01 Recap of Medium-term Management Plan "VISION2023″

	New Medium-term Management Plan "VISION2030″
Agenda	2-1 Overview
2-2 Towards a Sustainable Society
02
2-3 Portfolio Management
	2-4 Targets and KPI
	2-5 Financial Capital Strategy
	2-6 Strategy by Business

FUJIFILM Holdings Corporation 3

01 Recap of Medium-term Management Plan "VISION2023″

	New Medium-term Management Plan "VISION2030″
Agenda	2-1 Overview
2-2 Towards a Sustainable Society
02
2-3 Portfolio Management
	2-4 Targets and KPI
	2-5 Financial Capital Strategy
	2-6 Strategy by Business

FUJIFILM Holdings Corporation 4

FY2021-FY2023Medium-term Management Plan

1-1 | Recap of VISION2023

Achieved target of VISION2023 in Revenue and Operating income one year ahead of schedule. FY2023 is also expected to achieve a record high.

• KPIs for Capital Efficiency were not achieved, due to large capital expenditure in Bio-CDMO and Electronic Materials which were not in the original plan as well as ensuring enough inventory to prioritize stable supply under COVID-19.

VISION2023

A

A-B

B

FY2020

FY2021

FY2022

FY2023

2024年3月期

FY2023

(Billions of yen)

Actual

Actual

Actual

Forecast

vs Original

Original plan

As of 2024/4/17

As of 2021/4/15

Revenue

2,192.5

2,525.8

2,859.0

Record High

2,960.0

+9.6%

2,700.0

100%

100%

100%

100%

100%

Profitability

Operating Income

165.5

229.7

273.1

Record High

277.0

+6.5%

260.0

7.5%

9.1%

9.6%

9.4%

-0.2pt

9.6%

Income before Income Taxes

235.9

260.4

282.2

Record High

310.0

+55.0%

200.0

10.8%

10.3%

9.9%

10.5%

+3.1pt

7.4%

Net Income Arttribute to

181.2

211.2

219.4

Record High

240.0

+20.0%

200.0

FUJIFILM Holdings

8.3%

8.4%

7.7%

8.1%

+0.7pt

7.4%

EPS

453.28yen

527.33yen

547.21yen

597.99yen

+97.72yen

500.27yen

Capital efficiency

ROE

8.7％

9.0％

8.3％

8.2％

-0.2pt

8.4％

ROIC

4.3％

5.6％

6.1％

5.6％

-0.5pt

6.1％

CCC

123days

122days

125days

122days

19days

103days

Financial soundness

Shareholders' equity ratio

62.1％

63.3％

66.8％

65.8％

-

D/E ratio

0.23

0.18

0.14

0.16

-

Exchange(Average)

USD

106 yen

113 yen

136 yen

145 yen

+41 yen

104 yen

EUR

124 yen

131 yen

141 yen

157 yen

+33 yen

124 yen

FUJIFILM Holdings Corporation 5

FY2021-FY2023Medium-term Management Plan

1-2 | Recap of VISION2023: By Segment

Achieved steady development in Healthcare and Electronic Materials and set Imaging on a growth path,

while the challenge lies in improving resilience to volatility and enhancing profitability in each business field.

						A	A-B	B
						FY2023	2024年3月期	FY2023
				(Billions of yen)		Forecast	vs Original	Original plan
						As of 2024/4/17		As of 2021/4/15
				Healthcare	Revenue	975.0	+13.4%	860.0
					Operating Income	97.0	-5.8%	103.0
					Operating Margin	9.9%	-2.1pt	12.0%
				Materials	Revenue	687.0	-4.6%	720.0
					Operating Income	43.0	-54.7%	95.0
					Operating Margin	6.3%	-6.9pt	13.2%
				Business Innovation	Revenue	830.0	+1.2%	820.0
					Operating Income	71.0	-13.4%	82.0
					Operating Margin	8.6%	-1.4pt	10.0%
				Imaging	Revenue	468.0	+56.0%	300.0
					Operating Income	102.0	+4.1times	25.0
					Operating Margin	21.8%	+13.5pt	8.3%
				Corporate Expenses	Revenue	-	-	-
				& Eliminations	Operating Income	-36.0	+9.0	-45.0
			Total	Revenue	2,960.0	+9.6%	2,700.0
					Operating Income	277.0	+6.5%	260.0
					Operating Margin	9.4%	-0.2pt	9.6%

• • Medical Systems:Steady growth with IT and AI
  • Bio-CDMO:Decision of investments for future growth.
• Challenge • Reinforcement of Small-scale manufacturing in Bio-CDMO, and Cell Culture media business in LS Solutions which are affected by biotech venture funding stagnation.⃞ Outcome

• • Electronic Materials:Large M&As and aggressive investments
  • Establishment of High Functional Materials Strategic HQ
• Challenge • Delayed recovery from COVID-19 impact (demand decrease in Graphics business, raw material price hikes, etc.)⃞ Outcome

• • Smooth transition to new company and structure
  • Steady growth in Business Solutions (M&A, new services)
• Challenge • Maintain profitability of Office Solutions, which is experiencing a gradual decline in Print Volume
• • Improve profitability of Business Solutions⃞ Outcome

• • Build on INSTAX's stable market base and dominant brand
  • Two-line(X and GFX) strategy for digital cameras
• Challenge • Sustain silver halide photography (CLP and film)
• • Develop new businesses (safety monitoring, inspection, etc.)⃞ Outcome

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*DE&I : Diversity, Equity & Inclusion

FY2021-FY2023Medium-term Management Plan

1-3 | Recap of VISION2023: Sustainability (non-financial)

Toward sustainable growth and enhancement of corporate value over the medium to long term, We have worked to build a framework to continue to generate innovation and sources of value.

Environment

Human Resource

Corporate Governance

Diversity, Employee Satisfaction

and Human Rights

Co-creating value with

stakeholders

(Shareholders,Investors,Communit

ies)

• Expect to reduce GHG emissions from own energy (Scope 1 + 2) by 11% (compared to FY 2019).
• Introduction of Internal Carbon Pricing (ICP) schemes.
• Recognized by CDP as an 'A-list company' for the second year in a row, the highest rating in the field of 'climate change'.
• Develop human talent that continues to create change by the concept of "STPD" and "+Story"
• Realization of a dynamic human resource portfolio through job rotation across businesses.
• Acceleration of diversity led by the "DE&I* Promotion Office" and establishment of the "DE&I Committee"

chaired by the CEO.

• Separation of the Board Chair and CEO for clarification of "supervisory" and "executive" roles on the Board.
• Ensure diversity on the Board (review of the skills matrix, increase in the number of female directors).
• Introduced "Restricted share-based remuneration" and "Medium-termperformance-linkedshare-based remuneration" for Directors.
• Establish a Group-wide DE&I vision.
• Implementation of measures to support work-family balance and establishment of health check-up facilities for employees.
• Revision of Guidelines for Global Healthcare Code of Conduct.
• Organize business briefing hosted by the Company and participate in conferences hosted by securities firms.
• Strengthen timely, fair and impartial disclosure of information with simultaneous interpretation, transcripts, etc.
• Educational activities on tuberculosis screening, ICT to expedite issuance of disaster certificates.

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01 Recap of Medium-term Management Plan "VISION2023″

	New Medium-term Management Plan "VISION2030″
Agenda	2-1 Overview
2-2 Towards a Sustainable Society
02
2-3 Portfolio Management
	2-4 Targets and KPI
	2-5 Financial Capital Strategy
	2-6 Strategy by Business

FUJIFILM Holdings Corporation 8

New Medium-term02Management Plan "VISION2030"-1

Overview

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2-1-1 | What Should We Be in 2030

Enhance corporate value with focusing on Profitability and Capital Efficiency.

As a collection of global top-tier businesses, we will change the world step-by-step and create value (more smiles)

for various stakeholders.

01

Focus on Growth Investment and Profitability

• Investment focus on growth areas
• Achieve an operating profit margin above 10% in all businesses by focusing on profitability

02

Improvement of Capital Efficiency

• Improve efficiency of invested capital using ROIC as a KPI and combine capital policy to increase ROE

03

R&D Management

• Increase resources for research themes in areas which closely relate to our businesses
• In fundamental research, select themes that will lead to the creation of new business opportunities, to enhance speed and to ensure certainty of commercialization

04

Ensuring Investment Returns

• Improve profitability of the acquired Medical Systems business, and separately create synergies from acquired process chemical in Semiconductor Materials
• Ensuring a solid return on investments in Bio-CDMO and Semiconductor Materials

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