Fujifilm Group Releases Financial Report for Fiscal Year 2023

SHANGHAI, May 14, 2024 /PRNewswire/ -- On May 9, 2024, Fujifilm Holdings Co., Ltd. ("Fujifilm Group") announced its financial results for fiscal year 2023.

According to the data, as of March 31, 2024, the Group's sales revenue increased by 3.6% year-on-year to 2,960.9 billion yen, thanks to the strong sales performance of the medical system and imaging businesses, as well as the impact of exchange rate fluctuations. Operating profit increased by 1.3% year-on-year to 276.7 billion yen, driven by overall sales growth and currency effects. Net income attributable to Fujifilm Holdings increased by 11.0% year-on-year to JPY 243.5 billion due to higher operating profit and valuation gains on marketable securities and investment securities.

Yoshiichi Goto, Representative Director and CEO of Fujifilm Holdings Corporation, said, "I am very proud of the impressive results we achieved in FY2023, with record sales revenue, operating profit, and net profit. The achievement of these achievements shows that the profitability of our enterprise has been further improved. In line with our new medium-term management plan, we will strengthen the corporate value VISION2030 of the Fujifilm Group by prioritizing profitability and capital efficiency in our management policy. At the same time, as expressed in our group mission "More smiles for the world", we aim to be a company that brings smiles to different stakeholders by reinvesting the value we create into society. "

As stated in the new medium-term management plan "VISION2030" announced on April 17, 2024, the company aims to achieve sales revenue of 3.1 trillion yen and operating profit of 300 billion yen by fiscal 2024 ending March 31, 2025, which is expected to reach another record high. The company also plans to invest 757 billion yen in the next few years to achieve further growth, primarily in the Bio CDMO and semiconductor materials businesses, which is higher than in the fiscal year ending March 31, 2024.

Highlights of each business area Healthcare:

• Sales revenue was 975.1 billion yen, up 5.0% year-on-year, mainly due to the increase in sales revenue from the medical system business and the Bio CDMO business. Operating profit was 97.4 billion yen, down 5.2% year-on-year, mainly due to the lack of one-time gains in the prior fiscal year in the pharmaceutical business and the impact of inventory impairment in the Bio CDMO and Life Sciences Solutions businesses.
• In its Medical Systems business, revenue increased due to steady sales of endoscopy, CT, MRI and other products. In the endoscopy segment, sales growth was mainly concentrated in Japan, the United States, Europe and China, while CT and MRI sales growth was mainly in Central and South America, the Middle East and India.
• The increase in revenue of its Bio CDMO business was mainly due to the solid contract production performance of antibody drugs in Denmark and the improvement of production efficiency. At the same time, a slowdown in orders for gene therapy and other drugs indicated a difficult financing environment for biotech customers, resulting in inventory impairments for raw materials and consumables approaching their expiration dates in the first and third quarters.
• In its life science solutions business, the sales revenue of the pharmaceutical business declined due to the lack of one-time revenue from the transfer of the radiopharmaceutical business last year; Sales revenue in the Life Sciences business increased, primarily due to licensing fee income from BlueRock Therapeutics' iPS cell technology for the treatment of ocular diseases, as well as a rebound in sales of culture media used in the production of antibody drugs.

High-performance materials:

• Sales revenue increased by 1.2% year-on-year to JPY 690.0 billion, and operating profit decreased by 34.5% year-on-year to JPY 42.9 billion, due to the increase in one-time expenses related to mergers and acquisitions.
• In its Electronic Materials business, sales revenue increased by 10.6% year-on-year, thanks to the contribution of the semiconductor process chemicals business acquired from Entegris, Inc. in October 2023, despite the stagnation of the semiconductor market.
• In its display materials business, the entire supply chain experienced production adjustments in the previous year, and as the business of panel manufacturers recovered compared to last year, sales revenue increased.
• Its graphic communication business was affected by the decline in demand for printing materials in the printing plate field in Europe and the United States, and the business sales revenue declined; In its inkjet business, due to the lack of demand in the Chinese real estate market, the sales of inkjet printheads used in the ceramic market declined, and the overall sales revenue decreased.

Image:

• Strong sales of primary imaging systems and digital cameras drove a 14.5% year-on-year increase in sales revenue to JPY 469.7 billion, while operating profit increased by 39.9% year-on-year to JPY 101.9 billion.
• The stable sales of INSTEX's primary imaging system in its consumer imaging business contributed to the increase in sales revenue. One year ahead of schedule, INSTAX's sales target of 150 billion yen in FY2025 was achieved.
• In its professional imaging business, sales revenue increased with strong sales of the X-S20 launched in June 2023 and the GFX100 II launched in September 2023, following the launch of the X-H2, X-H2S and X-T5 digital cameras in the previous fiscal year. In February 2024, the company unveiled the X100VI high-end portable digital camera with a back-illuminated 40.2-million-pixel sensor and Fujifilm's latest processor.

Business Innovation:

• Overall sales were 826.1 billion yen, down 1.4% year-on-year, but operating profit was 70.8 billion yen, up 1.8% year-on-year, thanks to global selling price adjustments and other favorable factors
• In the Office Solutions business, sales declined due to new OEM customers, global price adjustments and other factors that were not enough to offset lower exports of equipment and consumables to the U.S. and Europe; In April of this year, the Apeos series of MFPs/printers began to be fully sold in the European region through professional and excellent distributors.
• In the Enterprise Solutions business, sales increased, mainly due to the initial integration of the FUJIFILM MicroChannel and the sale of Digital Transformation (DX) solutions.