CEO Message

As CEO, my priority is to ensure that the business growth we have achieved translates into sustained enhancement of corporate value.

In fiscal 2025, the second year of our “VISION2030” medium-term management plan, we positioned our Group Purpose, “Giving our world more smiles,” as our common foundation and achieved record highs in revenue for the fourth consecutive year, operating income for the fifth consecutive year, and net income attributable to FUJIFILM Holdings for the sixth consecutive year. The Company-wide operating margin reached 10.4%, showing that the earnings power the Fujifilm Group has strengthened over the years is steadily producing results. Despite facing numerous changes in the business environment, including additional U.S. tariffs and soaring raw material prices, the initiatives that each of our business segments-Healthcare, Electronics, Business Innovation and Imaging-advanced by leveraging its respective strengths contributed to improved performance.

What I would like to explain to our investors, however, is how we will enhance corporate value going forward. I regard the “evolution of our business portfolio,” centered on growth areas such as Healthcare and Semiconductor Materials, as our foremost priority for enhancing corporate value. Fiscal 2026 is a crucial year in which we must turn the results of the growth investments we have made into profit and cash generation and demonstrate our ability to execute. I will face these issues head-on, steadily achieve the fiscal 2026 targets set out in VISION2030, and more clearly present our path to enhancing corporate value by delivering an operating margin of 15% or higher in fiscal 2030 and improving capital efficiency.

The global business environment is changing at an unprecedented pace, with rising geopolitical risks, the restructuring of supply chains, responses to climate change, and technological innovation, including generative AI. Because we live in an era in which the future is difficult to predict, it is important to set the direction we should take from a long-term perspective and to have the ability to steadily execute our strategies while flexibly revising our measures in response to circumstances. Even in challenging situations in the short term, we must remain attuned to developments in society and markets, determine what needs to be done, and move forward with conviction. I believe that consistently doing so will enable us to sustainably enhance corporate value.

I believe that a business portfolio is never complete. As market conditions and competitive structures change, it is management’s responsibility to assess the growth potential, competitiveness, and capital efficiency of each business and to continuously evolve the portfolio to maximize corporate value.

For approximately 20 years, the Fujifilm Group has transformed its business structure. Building on technologies cultivated in the photographic film business, we have expanded our business domains into Healthcare, Electronics, Business Innovation, Imaging, and other fields, creating a business portfolio that is resilient to changes in economic and market conditions.

We currently classify our businesses into four categories-“Earnings Base,” “Growth Driver,” “New/Future Potential” and “Value Reconstruction”-and allocate management resources based on assessments of market attractiveness and profitability. We reinvest the cash generated by Earnings Base businesses in Growth Driver and New/Future Potential businesses, while implementing measures to improve profitability and maximize business value in Value Reconstruction businesses. By maintaining this cycle, we will strengthen the quality and resilience of our overall portfolio. (See the figure below).

Having diverse businesses is also a competitive advantage unique to the Fujifilm Group. For example, we apply compound synthesis and design technologies and quality control technologies cultivated in the manufacture of photographic film to the Electronics segment. We also deploy image processing technologies and AI in healthcare, printing, manufacturing, and business processes. In addition, we leverage our brand, design, human resources, and intellectual property across businesses. By combining management resources accumulated in different business fields, we create value that could not be achieved by any single business alone.

At the same time, we must not assume that the business portfolio we have built should remain unchanged. Precisely because the Fujifilm Group itself broke away from its dependence on the photographic film business and transformed its business structure without being bound by past successes, I believe we must keep questioning the significance of owning each business and pursue the form best suited to the future.

A concrete management decision reflecting this thinking was our announcement in August 2026 that we had begun considering strategic options, including a “partial spin-off” of the Business Innovation segment. A partial spin-off involves making a subsidiary independent while the parent company retains a portion of its shares. We will proceed with a detailed review with a view to execution in two to three years.

Since Fuji Xerox became a wholly owned subsidiary in 2019, the Business Innovation segment has advanced structural reforms and a shift to solutions businesses under integrated Group management, enhancing its earnings power and competitiveness. Exchanges of human resources and technologies have also increased, generating tangible Group synergies.

With the rapid advance of digitalization and AI, however, the competitive environment surrounding the business has reached a major turning point. The industry as a whole is shifting its focus from businesses centered on sales of multifunction devices and printers to IT services, DX support, and even AI utilization, while moves toward industry realignment and collaboration have also begun. To capture these changes as opportunities for further growth, we concluded that the business needs faster, more agile decision-making and a new management model that goes beyond a continuation of the status quo. Rather than responding passively to changes in the market environment, I believe that now, while the business is competitive and profitable, is precisely the time to consider our next move with an eye to the future.

What I prioritized was not simply separating the business. While the Business Innovation segment possesses strong cash generation capability, technological strengths and a solid customer base, the Fujifilm Group’s shared brand, human resources, technologies and expertise will continue to serve as important strengths supporting the growth of both. That is why we aimed to achieve both “greater management autonomy and agility” and “preserving Group synergies.” We are considering a partial spin-off rather than a complete separation to achieve these two goals at the same time.

Rather than preserving existing structures in the face of a changing environment, we will transform ourselves into the form best suited for future growth. This is what defines the Fujifilm Group’s ability to transform. We will continue pursuing the optimal structures so that both the Business Innovation segment and the Group as a whole can achieve further growth
and maximize corporate value.

To enhance corporate value, we must further improve capital efficiency.

The Fujifilm Group has made proactive, forward-looking investments, mainly in Healthcare and Semiconductor Materials. In the Bio CDMO business in particular, we are strengthening our production capacity and quality assurance systems through large-scale capital investments. While these investments are essential for medium- to long-term growth, they place pressure on return on invested capital (ROIC) and free cash flow (FCF) during the up-front investment phase.

In fiscal 2025, Company-wide ROIC declined 0.4 percentage point year on year to 5.5%, due to continued up-front investments and delays in improving the profitability of the Bio CDMO business. Regarding the delay in the Bio CDMO business’s contribution to earnings, in particular, we intend to address investors’ concerns by strengthening the business’s management structure and providing a clearer roadmap to improved profitability. Going forward, we will realize the benefits of our investments to date by ensuring the stable operation and higher productivity of large-scale facilities, including our new North Carolina site, and by expanding orders for early-stage projects at small and medium-sized facilities. On a Company-wide basis, we expect FCF to turn positive in fiscal 2026 as planned. Furthermore, we aim to achieve return on equity (ROE) of 10% or higher in fiscal 2030 and a sustained improvement in the price-to-book ratio (PBR).

In addition, we will reduce cross-shareholdings and optimize our cash conversion cycle (CCC) to enhance capital efficiency and cash generation capability. Shareholder returns are also an important element of capital allocation. While prioritizing investment for future growth, we will pursue shareholder returns flexibly, taking into account FCF generation, capital efficiency, and financial soundness. The share buyback resolved in March 2026 and completed in May 2026, our first in six years, also demonstrates our management approach of taking into account the cost of capital and our share price.

I aim to evolve the Fujifilm Group into an organization that steadily generates profit and cash commensurate with its invested capital, with those results appropriately valued by the capital markets. While we will continue making necessary investments, we will ensure that they are subject to clear discipline. By maintaining rigorous discipline around the cost of capital, we will translate growth into corporate value.

Guided by my long-held belief that “everything begins on the front lines,” I have devoted myself to evolving our businesses by seeing firsthand what is happening on the front lines, trusting my instincts, and identifying future possibilities. Through 17 years of overseas assignments and more than 10 years in the Medical Systems business, I learned firsthand that a genuine commitment to solving the challenges facing society and our customers is what creates new business opportunities.

The seeds we have sown with an eye to the future are steadily bearing fruit in various forms, including the diagnostic imaging business acquired from Hitachi, Ltd., and NURA, a health screening service focused on cancer screening. By repeatedly identifying issues on the front lines and offering solutions that combine the Group’s technologies and expertise, we have created and grown new businesses.

Since becoming President in June 2021, I have consistently focused on developing the Healthcare and Semiconductor Materials segments into pillars of future growth. Both segments are directly linked to addressing social issues, where markets are expected to expand over the medium to long term and where we can leverage the Group’s technologies, intellectual property, and global business capabilities. Our aim is not simply entering growth markets. Our strategy is to flexibly deploy the necessary management resources, strengthen “economic moats” that other companies cannot easily imitate-such as strong brands, high market shares, and long-term relationships of trust with customers-and build sustainable competitive advantages.

In Healthcare, we are expanding our business with a focus on Bio CDMO, Life Sciences, endoscopes, and medical IT. In addition to globally expanding our endoscope business, we provide integrated solutions centered on medical AI that combines medical devices, technologies, and know-how, including AI-based diagnostic imaging support, NURA, and greater operational efficiency in clinical settings. By providing comprehensive solutions to the challenges surrounding diagnosis and treatment, we will help improve the quality of healthcare while differentiating ourselves.

In the Bio CDMO business, we have established a framework for the stable supply of high-quality biopharmaceuticals by leveraging advanced production technologies, quality assurance capabilities, and regulatory compliance capabilities, together with state-of-the-art manufacturing facilities in the U.S. and Europe. In 2027, one of Japan’s largest biopharmaceutical CDMO plants, currently under construction in Toyama Prefecture, is scheduled to begin operation. Providing one-stop services from drug substance manufacturing to formulation and packaging of antibody drugs, we will consistently support a wide range of  customers-including pharmaceutical companies, biotech ventures, and academia-from the early stages of drug development through to commercial production. We will also accelerate efforts to ensure the stable operation of our large-scale manufacturing facilities, launch customer projects, and expand orders to fulfill our role as a trusted partner.

The Semiconductor Materials business is also seeing significant growth opportunities, supported by advances in generative AI, data centers, autonomous driving, IoT, and other fields. The Group provides materials used across a wide range of semiconductor manufacturing processes and offers one-stop solutions that address customer challenges. Our competitiveness is underpinned by a global business structure based on the concept of “local production for local consumption with local support.” By integrating R&D, production, and technical support in each region, we respond quickly and flexibly to customer needs, even in markets where technological innovation is rapid. We will also strengthen our presence in promising markets, including India. By establishing locally rooted supply and support systems, we will steadily capture future demand. Furthermore, we will foster the sustainable development of the semiconductor industry by developing next-generation materials, including environmentally friendly offerings, and strengthening our supply systems.

What Healthcare and Semiconductor Materials have in common is that they leverage the Group’s technologies and transformative capability to address the challenges facing society and customers, providing value that is indispensable to people’s lives and to industry. We will continue strengthening the economic moats of each business to enhance our competitiveness in the market and the value we provide to society.

The Fujifilm Group’s competitive advantage is supported not only by tangible assets. Intangible assets-including human capital and intellectual capital, represented by technologies, intellectual property, brand, design, and AI-are the very source of value creation.

The Group has applied technologies developed through the photographic film business, including chemistry, materials, imaging, and precision processing, across a wide range of businesses. The intellectual capital accumulated in this process, together with the people who leverage it, constitutes a unique management asset that has enabled the Group to continually transform its business structure.

AI and DX form an important management foundation for accelerating value creation. AI has the power to transform the competitiveness of our businesses through more advanced R&D, optimized manufacturing processes, stronger supply chains, more efficient administrative operations, and more sophisticated decision-making. From fiscal 2026 onward, we will further promote the use of generative AI in each business and in functions-including development, procurement, manufacturing, and marketing-improving the speed and quality of decision-making. In this way, we will seek to capture new business opportunities, improve productivity, and enhance capital efficiency. Our DX strategy and initiatives, which are closely aligned with our management strategy, have been highly regarded, earning us selection as a “DX Stock” for the second consecutive year.

At the same time, it is people who unlock the full value of AI. It is essential to create an environment in which each employee can make effective use of AI, hone their expertise, and take on new challenges.

In the Employee Engagement Survey conducted in fiscal 2025, our engagement score remained at a high level of 82%, consistent with the previous survey, and scores related to “internalizing the Purpose,” “innovation,” and “communication and collaboration” also improved. Through the survey, we reflect employees’ voices in management while gaining greater visibility into the state of our organizations. By promoting constructive dialogue and improvements in each workplace, we are creating a vibrant work environment.

We are also focusing on further developing a corporate culture in which our approximately 74,000 employees worldwide respect one another and can each demonstrate their individual strengths. We have deployed a self-development assistance program globally to help employees see change as an opportunity and keep taking on challenges, supporting their growth in a variety of ways. In addition, based on the belief that “the growth of the Fujifilm Group goes hand in hand with the smiles of our employees and their families,” we hold Family Days at our sites, while enhancing childcare support programs, providing opportunities to deepen nursing care literacy, and expanding nursing care support programs. Creating an environment enabling employees to maximize their abilities in line with changes in their life stages is an important initiative that leads to stronger human capital.

Furthermore, the physical and mental well-being of our employees is essential to the Company’s continued growth, and we actively invest in maintaining and promoting employee health. In 2019, we established the Fujifilm Group Health Management Declaration and have since promoted health management globally under a promotion framework led by the CEO as the Chief Health Management Officer and the General Manager of the Human Resources Division as a Senior Health Management Officer. At the Fujifilm Group Health Insurance Association’s “FUJIFILM Mediterrace Yokohama,” a health screening center for Fujifilm Group employees, we have introduced state-of-the-art medical equipment and medical IT systems incorporating AI technology provided by our Medical Systems business. From fiscal 2026, we also began offering a “pancreatic cancer screening program” aimed at the early detection of pancreatic cancer, which is difficult to treat. In recognition of these initiatives, we have been selected as a Health and Productivity Stock for six consecutive years since 2020.

Why is the Fujifilm Group able to keep transforming itself? The answer lies in the strength of our people. And what unites us and draws out that strength is our Group Purpose, “Giving our world more smiles.”

Since establishing our Purpose in January 2024 to mark our 90th anniversary, I have visited various sites in Japan and overseas and engaged in direct dialogue with employees. What I convey repeatedly on these occasions is that “the starting point for creating value that addresses social issues and brings smiles to people lies in each individual’s aspiration, or personal sense of purpose.” What do I want to achieve? To whom, and what kind of value, do I want to deliver through my work? By reflecting on such questions, our Purpose becomes more than a philosophy-it comes alive in our daily decisions and actions. Through these dialogues over the past two years, I have felt firsthand that employees around the world are reexamining the meaning of their work and taking action.

One symbolic example is our initiative in Indonesia. In May 2026, I visited an orphanage participating in the “First-Ever Family Photograph” project run by our local subsidiary PT. FUJIFILM INDONESIA (FFID). Through this activity, children who have lost their parents or cannot live with them are photographed with instax cameras to create a record of their growth. What began as a small social contribution activity by FFID volunteers resonated both within and outside the company and developed into the production and sale of the “instaxnesia” art book in collaboration with a major Indonesian publisher. By using the proceeds to support orphanages, the initiative has evolved to both create social value and sustain the activity over time.

When I saw the children at the orphanage talking and smiling while holding their “family photos” with their friends, I was deeply moved. Photographs spark connections between people and spread smiles. That scene symbolized the power of photography and the value that the Fujifilm Group’s products and technologies bring to society.

Commemorative photos taken with an instax camera during a visit to an orphanage in Indonesia

At the request of Indonesia’s Ministry of Health and Ministry of Education, this initiative has further expanded into a national campaign, “One Letter, a Million Smiles,” in which students photograph elderly people with instax cameras and deliver the photos along with letters. An initiative born from the commitment of employees on the front lines has gained widespread support and grown into a force for positive social change. This is one form of the value creation that the Fujifilm Group aspires to achieve.

Technology and facilities alone do not create innovation. Technologies and businesses can create new value only when employees take the challenges facing society and customers personally and have a strong determination to “see it through.” Our Purpose is the unifying principle that brings out each individualʼs aspirations and channels them into new value creation and stronger business competitiveness. I will continue to visit sites around the world and value dialogue with employees. By bringing together diverse aspirations and wisdom, we will further strengthen a corporate culture that is unafraid of change and forges its own future.

Dialogue with employees from various countries who participated in the regional trainer development program for cultivating “Group Purpose Ambassadors”

The business environment is becoming increasingly complex amid geopolitical risks and issues involving climate change, human rights, supply chains, and information security. At the same time, responding to social issues-such as restructuring semiconductor supply chains, improving access to healthcare, and transitioning to a decarbonized society-also presents opportunities to leverage the Group’s technologies and businesses. Beyond preventing risks from materializing, we anticipate changes in society and markets and create new products, services, and business models. I believe that delivering both social and economic value enhances long-term corporate value.

To advance decarbonization, for example, we have begun using city gas made from overseas-produced biomethane. This is the first such initiative in Japan’s chemical industry* and represents a meaningful step toward achieving carbon neutrality in fuel use in our manufacturing processes.

Behind this thinking lie the values we have inherited since our founding. Photographic film, our founding business, required clean water and air for its manufacture, and because customers could not verify its quality before taking a photograph, it was a product they purchased on the strength of their trust in us. That is why respect for the natural environment and an emphasis on quality and trust have been deeply embedded in our corporate culture since our founding.

For the Fujifilm Group, sustainability lies at the core of management. In our long-term CSR plan, “Sustainable Value Plan 2030 (SVP2030),” we have defined the environment, health, daily life, work style, supply chain, and governance as priority areas (materiality) and are advancing initiatives in an integrated manner with our business strategies. We create business opportunities starting from the resolution of social issues and reinvest the results in four areas: businesses, human resources development and workplace improvement, ESG initiatives, and shareholder returns. Keeping this cycle in motion is the essence of the Group’s approach to sustainability management. At the same time, we are also enhancing our risk management system. By preventing risks from materializing and minimizing their impact when they do, we will strengthen the resilience of our management and earn the trust of our stakeholders.

* An initiative to supply city gas made from overseas-produced biomethane to manufacturing sites in the chemical industry; based on publicly available information (as surveyed by Tokyo Gas)

To remain a company that society needs, it is essential that we anticipate the changes of the times and continue creating value for the future. My conviction to keep taking on challenges, no matter how the environment changes, remains unchanged. When we face challenges, rather than standing still, we think things through, make the best decision, and act swiftly. These efforts, sustained over time, will create new value and open up further growth opportunities.

Each of the Fujifilm Group’s approximately 74,000 employees has different experiences, expertise, and aspirations. When these diverse aspirations and wisdom intersect, new ideas and innovation are born. This is the driving force that will shape the future of the Fujifilm Group.

My aspiration is to “leave a lasting positive legacy for the next 100 years.” To realize this, the Group is currently examining its “Vision for 2040,” looking beyond SVP2030. As technological innovation and changes in social structures accelerate, what kind of value should the Group provide to society, and what kind of company should it continue to be? We are holding discussions from a long-term perspective, including on our materiality, business portfolio, technologies, and human resources.

Achieving our targets for 2030 is important. “2030” is not a goal but rather a deadline or milestone. Our mission is to keep transforming ourselves and taking on new challenges so that we remain needed by society well beyond 2030. Fiscal 2026 is an important execution phase for achieving the targets of VISION2030 and, at the same time, a turning point toward the next stage of growth.

United by our Purpose, “Giving our world more smiles,” we will steadily convert business growth into corporate value, meet the expectations of our stakeholders, and achieve sustainable value creation.

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