Record-high results for the third consecutive year with Healthcare segment sales surpassing ¥1 trillion
In fiscal 2024, the first year of our “VISION2030” medium-term management plan, we were guided by the Group Purpose we announced in January 2024 to mark our 90th anniversary: “Giving our world more smiles.” With the entire Company aligned under this purpose, we achieved record high figures for consolidated revenue (third consecutive year), operating income (fourth consecutive year) and net income attributable to FUJIFILM Holdings (fifth consecutive year). All business segments achieved revenue growth, with sales in the Healthcare segment surpassing ¥1 trillion for the first time. In addition, the Company’s operating margin exceeded 10%, providing strong momentum for the first year of VISION2030. Despite rising uncertainties, such as geopolitical risks and the increasing frequency of natural disasters, we remain attuned to changes in society while advancing management that emphasizes both profitability and capital efficiency and strengthening the competitive advantages of the Fujifilm Group. Leveraging our strengthened earnings power, we are firmly committed to realizing sustainable enhancement of corporate value.
Since its founding in 1934, the Fujifilm Group has continuously embraced challenges and made dedicated efforts to deliver innovative value to society. When faced with the crisis of our core business disappearing due to the rapid contraction of the photographic film market, we transformed this challenge into our greatest opportunity for new growth by rebuilding our business portfolio. This was made possible by Fujifilm’s unique transformative capability to persistently address challenges through the fusion and advancement of diverse people, knowledge, and technologies.
Since then, we have pursued sustainable growth by continuously evolving our business portfolio, and as CEO I have endeavored to make management decisions with an emphasis on speed and dynamism. In fiscal 2024, we actively pursued growth investments. In our Bio CDMO (biopharmaceutical contract development and manufacturing) business, we are capturing strong demand and continuing large-scale facility investments at our sites in North Carolina and Denmark. To further expand our Semiconductor Materials business, we plan to invest more than ¥170 billion in R&D and capital expenditures over three years (fiscal 2024‒2026). Meanwhile, we are working to build a stronger business portfolio, including through the sale of our medical media business in the Life Sciences (LS) business of the Healthcare segment.
Strengthening our “economic moats” to establish a pattern of winning
In fiscal 2025, the second year of VISION2030, we expect to achieve record highs again in revenue, operating income, and net income attributable to FUJIFILM Holdings. That said, our operating income target of ¥331 billion will not be easy to achieve, particularly when considering foreign exchange effects and the impact of U.S. tariffs. To achieve our goals, we will closely monitor the current uncertainties of the global economy and, with a long-term perspective, remain agile in anticipating change and responding proactively under any circumstances. By harnessing the resilience and problem-solving capabilities cultivated by each of our employees, we will steadily advance our growth strategy and achieve record-high results.
In these initiatives, I will focus on capturing strong positions in growth markets where the Fujifilm Group can leverage its competitive advantages. By combining our market development capabilities, R&D strength, and bold capital investment approach, we aim to rapidly establish a leading market position and build “economic moats” with a robust brand, high market share and superior capabilities that competitors cannot easily surpass. By leveraging our proprietary technologies to deliver unique value, we will deepen and broaden these moats and establish a winning pattern. For example, our businesses with economic moats are steadily growing, including the instax instant photo system, our PACS*1 medical imaging information system and other AI-based technologies, WCM (Wave Control Mosaic) color filter materials for image sensors and negative developer*2. By reinforcing the moats we have built and enhancing the competitive advantages of each business, we will step up investments to create a strong virtuous cycle that helps increase the value we deliver to society and enhance corporate value.
*1 Picture Archiving and Communication System: A system that di gitizes medical images, such as X-rays, CT scans and MRI images to enable their management, distribution and operation over a network
*2 A negative-type development process in which unexposed ar eas after exposure are removed with developer to create circuits
Deepening and broadening our economic moats to accelerate business growth
In our Bio CDMO and Semiconductor Materials businesses, earmarked as growth areas, we will accelerate growth by broadening and deepening our economic moats.
In the Bio CDMO business, we will drive further growth by reliably delivering high-quality products through state-of-the-art manufacturing facilities featuring high production capacity and close proximity to our customers. To lead the industry, advanced production technologies and trust are indispensable. Our Denmark site, the Group’s core manufacturing facility in the Bio CDMO business, delivers highly fficient and stable production. It has earned strong recognition for its track record of contracts with pharmaceutical companies, together with certifications from regulatory authorities, such as the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA). The new facility at our North Carolina site has adopted the “kojoX” approach, which applies the same design, equipment and processes as our Denmark site. This enables us to ensure a stable supply chain and smooth technology transfers within a short timeframe. It has also differentiated us, resulting in orders for new projects even before the facility began operation. In April 2025, we concluded a biopharmaceutical manufacturing contract worth more than US$3 billion with Regeneron Pharmaceuticals, Inc., a leading global biopharmaceutical company. We also entered into long-term contracts and basic agreements with several major pharmaceutical companies, creating a virtuous cycle of growth.
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- Expanding globally with shared design, equipment and processes established at our Denmark site
In June 2025, we rebranded FUJIFILM Diosynth Biotechnologies, which engages in the Bio CDMO business, to FUJIFILM Biotechnologies, and FUJIFILM Irvine Scientific, which promotes the cell culture media business within the LS Solutions business, to FUJIFILM Biosciences. These changes are intended to further expand Group synergies and strengthen the Fujifilm brand in the life sciences market. Under the tagline, “Partners for Life,” we provide end-to-end solutions that support every stage, from early drug research to commercial production. Our aim is to be a “trusted and true partner” for pharmaceutical companies worldwide and for the many people eagerly awaiting new medicines.
In the Semiconductor Materials business, we provide stable supply to customers through a robust supply chain built on three strengths: “one-stop solutions” backed by a wide product lineup used across various semiconductor manufacturing processes, “local production for local consumption” supported by 20 manufacturing sites and six R&D centers worldwide, and “local support” to provide rapid on-site assistance. By understanding diverse customer needs and challenges and sharing technologies and information across sites, we ensure global customer responsiveness and the supply of high-quality products. Amid rising geopolitical risks, we are also meeting growing demand to establish supply chain systems close to customer sites. We feel that our past growth investments are now starting to bear fruit. The Indian semiconductor market is expected to expand to around ¥15 trillion by fiscal 2030. With this in mind, we are supporting Tata Electronics Private Limited, a leading Indian electronics manufacturer, to establish semiconductor materials ecosystem in India. We are also looking to establish a semiconductor materials manufacturing site in Gujarat, earmarked to become a hub for the semiconductor industry. Through this initiative, we intend to make a full-scale entry into the Indian market.
In July 2025, we established the Global Supply Chain Management (SCM) and Global Quality Assurance (QA) Group to address the stringent quality requirements of major customers with increasingly multi-site operations. The new group is overseen by Brian O’Donnelly, President & CEO of FUJIFILM Electronic Materials U.S.A., who has led our U.S. semiconductor materials operations and was appointed Corporate Vice President of FUJIFILM Corporation in June 2025. In these ways, we will further strengthen our supply framework.
Furthermore, leveraging our unique technologies, cultivated through the development of photographic film and semiconductor materials, we developed a process that enables the formation of fine circuit patterns without using per- and polyfluoroalkyl substances (PFAS)*3, which pose concerns for the environment and ecosystems. This process, using a negative ArF immersion resist*4, makes such advanced patterning possible. In collaboration with imec, a leading international research institute for advanced semiconductors, we field-tested the high-yield formation of fine metal wiring for the 28 nm generation*5, which is widely used in automotive, industrial semiconductors and other applications. Our work has attracted strong interest from semiconductor device manufacturers, and the product samples are currently being evaluated at customers' sites with the aim of launching sales at an early stage. We will continue deepening relationships with customers, working together to address challenges and fostering the advancement of the semiconductor industry.
*3 A collective term for perfluoroalkyl and polyfluoroalkyl compounds and their salts. Specifically, it refers to the substances defined in the OECD’s 2021 publication, “Reconciling Terminology of the Universe of Per- and Polyfluoroalkyl Substances: Recommendations and Practical Guidance.”
*4 A lithography method that uses ArF (argon fluoride) excimer laser light with a wavelength of 193 nm, currently the most widely adopted advanced lithography technology
*5 The final generation of technology that can be manufactured using single-patterning ArF immersion lithography
Making AI a driving force in shaping the Fujifilm Group’s future
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- At the award ceremony, I conceded that I used Fujifilm AIChat to “bounce ideas around” when drafting my congratulatory address.
The Fujifilm Group is accelerating the use of AI in both products and services, as well as in daily operations. AI is now becoming a key driver of our growth. We are pursuing Group-wide digital transformation (DX) through the use of AI, making it a key element of our management strategy to strengthen business competitiveness, transform business models, provide social value and enhance corporate value. We are also advancing value creation that fosters new growth and enhanced competitiveness through the use of generative AI in our Healthcare segment and other businesses, as well as functions such as development, procurement, production and marketing.
In addition, all of our employees are utilizing generative AI and other cutting-edge digital technologies to engage in initiatives to enhance productivity. At my initiative, we held the “All-Fujifilm Generative AI Contest” in March 2025. Using Fujifilm AIChat, the Group’s chat-based generative AI platform, we invited submissions under the theme of “ideas to increase smiles.” We received numerous creative proposals from employees in Japan and overseas, which we shared internally, and I was once again impressed by their enthusiasm and proactive approach to the latest technologies.
Because our DX strategy is closely aligned with our management strategy and supported by a series of strong initiatives, we were selected as a “DX Stock 2025” company.
Innovation through shared aspirations
Now in the second year since we established our Group Purpose, “Giving our world more smiles,” we are expanding a wide range of Purpose-driven actions around the world. By the end of September 2025, the executive team, including myself, had engaged in dialogues with 41,900 employees through town hall meetings held in Japan and overseas. Through these dialogues, I feel that we have already moved beyond the stage of “understanding and empathy” and are beginning to translate the Purpose into action. Here, the key will be to share aspirations with colleagues and turn them into action by bringing together diverse ideas as a team. In advancing these initiatives, the strong determination of each individual―an inner drive to “see it through”―is vital to realizing our aspirations. So-called switched-on employees who carry this strong determination share a clear sense of purpose, combine ideas and actions, and generate significant results as a team. They are the source of our innovation and transformation.
For example, NURA, a health screening center business we operate in emerging countries like India, has continued to grow. NURA originated from the aspiration of a young employee who wanted to address healthcare disparities in such regions. At NURA centers, we leverage our medical equipment, which include CT and mammography systems, along with AI technologies that support physicians’ diagnoses, to provide high-quality health screenings with physician feedback on the results, all completed in about 120 minutes. This value we provide has been well received. In just two years since its launch, NURA has expanded to 10 sites across India, Mongolia and Vietnam, with further expansion into Africa planned within fiscal 2025. To drive continued growth of the health screening services business, we established the NURA Global Innovation Center in December 2024. In addition to being a hub for health screening services, the center serves as a training facility for physicians, technologists and nurses working at NURA, as well as a centralized reading center for remotely interpreting medical images taken at NURA facilities in India. While fostering advances in global healthcare and people’s health, these efforts are steadily leading to the creation of economic value.
We co-hosted the opening ceremony of the NURA Global Innovation Center with Dr. Kutty’s Healthcare, a major healthcare company in India and an important partner in our health screening services business. At the ceremony, I shared that NURA was born from the shared aspirations of our young employee and Dr. Kutty’s sons.
Another Purpose-driven action that moved me deeply is an initiative in Indonesia. At an orphanage there, children were given their “first-ever family photograph,” captured with an instax camera. Employees of our Group company in Indonesia have been visiting orphanages to take and present instax photos―portraits of the children themselves to mark their growth, as well as group shots with their fellow residents as treasured family photographs. This initiative resonated widely within and outside the Company, ultimately leading to the publication of the “instaxnesia” art book in collaboration with local creators and a major publishing house. Proceeds from nationwide book sales have been directed to supporting seven orphanages across Indonesia, providing a powerful example of how our employees’ aspirations can bring smiles and inspiration to society.
Innovation cannot be achieved by one person alone. It takes many people with aspirations coming together, sharing their ideas and passions, and transforming those efforts into a powerful movement. To continue creating value that contributes to society, I will also lead the Fujifilm Group while valuing communication in the field.
The “first family photograph” was a small activity started voluntarily by members of PT. FUJIFILM INDONESIA in 2022, but the circle of empathy spread within and outside the company and developed into a broader initiative.
Clarifying issues based on the results of the Employee Engagement Survey to create a vibrant workplace environment
In the fiscal 2024 Employee Engagement Survey, conducted following the establishment of our Purpose, our engagement score*6 was a strong 81%, maintaining the high level achieved in the previous year. The survey also showed high scores for empathy with and understanding of our Purpose. However, because results vary across organizations, we focus on analyzing the survey findings to identify issues, encouraging constructive dialogue within each organization and building a more dynamic workplace environment.
We are also dedicated to fostering a workplace where our approximately 73,000 employees worldwide respect one another and are empowered to realize their individual potential. To harness diverse knowledge, experiences, and aspirations as a source of corporate vitality, the Fujifilm Group has articulated the vision of “Respecting Diverse Stories.” As a concrete action, in October 2024 we held a forum that transcended gender, nationality, and business frameworks to recognize diversity, aiming to foster a culture in which each employee’s diverse story is respected. We have also globally deployed a self development assistance program to help employees see change as an opportunity and keep challenging themselves, thereby providing comprehensive support for their growth.
For the company to grow, it is also important for employees to be healthy both physically and mentally. With this in mind, in 2019 we established the Fujifilm Group Health Management Declaration and built a promotion framework with the CEO as the Chief Health Management Officer and the General Manager of the Human Resources Division as a Senior Health Management Officer. Under this framework, we are promoting health management globally. At the Fujifilm Group Health Insurance Association’s “FUJIFILM Mediterrace Yokohama,” a health screening center for the 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. In January 2024, we started offering CT examinations, and in May 2025 will begin MRI scans, thereby providing employees with high quality health checkups and comprehensive medical screening. Our health promotion initiatives have been highly recognized, earning us Health and Productivity Stock certification for five consecutive years since 2020.
*6 This represents the percentage of respondents who chose a positive response (the top two options on a 5-point scale) to each question. A higher percentage indicates stronger employee initiative and a greater willingness to contribute.
Initiatives to improve capital efficiency
In addition to making growth investments, improving capital efficiency is a key priority in the Group’s quest to maximize corporate value. Our aspiration for 2030 is as follows: “By practicing management that prioritizes profitability and capital efficiency, we aim to further enhance the corporate value of the Fujifilm Group.” To achieve this, we are focusing on four key areas: “Invest in growth and emphasize profitability,” “Improve capital efficiency,” “Practice R&D management” and “Generate steady investment returns.”
Our recent return on invested capital (ROIC) has remained above the assumed WACC level (5%‒6% range). However, with significant up front investments in some businesses, such as the Bio CDMO business and the Semiconductor Materials business, invested capital has been rising ahead of returns, indicating further room for improvement in the future. To address this, we will leverage the timing of capital investment in the Bio CDMO business, which is expected to peak in fiscal 2024 and decline from fiscal 2025. Our plan is to turn company wide free cash flow positive in fiscal 2026. By generating consistent investment returns in each business and increasing profitability, we aim to achieve our fiscal 2030 targets: ROIC of 9% or more and ROE of 10% or more.
Enhancing the overall strength of our business portfolio
In managing our business portfolio, we classify our businesses into four categories: “Earnings Base,” “Growth Driver,” “New/Future Potential” and “Value Reconstruction.” We leverage the strong competitiveness of our Earnings Base businesses to generate cash, which we allocate to Growth Driver businesses that will drive medium-term expansion and New/Future Potential businesses with promising growth potential. For those classified as Value Reconstruction businesses based on their growth potential and profitability, we are formulating and implementing strategies to improve earnings and enhance their value, with the goal of transitioning them into Earnings Base businesses. By continuing this cycle from a mediumto long-term perspective, we will strive to achieve sustainable cash generation and improved corporate value.
Commitment to sustainability since our foundation
Clear water and air are essential for manufacturing photographic film, which was the starting point of our founding. In addition, because quality cannot be verified prior to shooting, photographic film is a product that customers purchase with trust. While we benefit from the natural environment in our business activities, therefore, we deeply acknowledge that such activities also have an impact on the natural environment. This is why sustainability―encompassing environmental protection and stakeholder trust―has been deeply embedded in our corporate culture since our founding.
To help realize a decarbonized society, the Fujifilm Group has committed to cutting GHG emissions by 50% by fiscal 2030 compared with fiscal 2019. This target applies across the entire product life cycle, from raw materials procurement and manufacturing to transportation, use, and disposal. By also maximizing energy use efficiency and introducing renewable energy, we aim to achieve net zero GHG emissions from energy used by the Company*7 by fiscal 2040. As part of these efforts, in May 2025 we installed the Group’s first electric boiler system powered entirely by renewable energy at the FUJIFILM Manufacturing Europe B.V. site in the Netherlands, which produces photographic color paper and culture media. In fiscal 2025, we expect energy-related GHG emissions at the site to decline by approximately 26% compared with fiscal 2024, marking a significant step toward the decarbonized society we are striving to achieve.
*7 Direct emissions from our own operations during product manufacturing (Scope 1) and indirect emissions from the use of purchased electricity and steam (Scope 2)
Delivering future-creating value and giving our world more smiles
For the Fujifilm Group to remain an essential company in every era, we believe our foremost responsibility is to deliver future-creating value that helps realize a sustainable society. Corporate management cannot rely on capability alone as it is also greatly influenced by shifts in society and business conditions. Reflecting on the past 20 years of our history, we are keenly reminded of this reality. However, no matter what kind of changes we might confront, it is necessary for each employee, including myself, to have aspirations and a strong determination to “see it through”―making the effort to forge ahead even by small steps. See change as an opportunity for growth and rise to the challenge. Confront daily issues without fear and think them through to reach the best decision. Then take swift action based on that decision. By repeating this cycle, we can turn the currents of society to our favor and attract new opportunities and good fortune. Together with stakeholders both within and externally, the Fujifilm Group is committed to driving innovation and changing the world step by step. As CEO, I will continue pursuing bold, forward-looking management and take full responsibility for delivering on that commitment. We will also allocate the profits earned from delivering valuable products and services to society to four key areas: businesses reinvestments, human resources development and workplace improvement, ESG initiatives and shareholder returns―thereby steadily enhancing corporate value.
My aspiration is to leave behind something beneficial for the future 100 years from now. By combining the aspirations of the Fujifilm Group’s 73,000 employees to create a chemical reaction, we will give birth to new innovation. With this in mind, we will strive to give our world more smiles from both social and economic value perspectives.
