Fujifilm Announces the Financial Results for the First Half Ended September 30, 2023

TOKYO, November 8, 2023 – FUJIFILM Holdings Corporation (President and CEO, Representative Director: Teiichi Goto) announced today the financial results for the first half, which ended September 30, 2023.

In the first half, revenue increased by 2.9% year-over-year to JPY1,388.5 billion, mainly due to strong sales in the Medical Systems and Imaging businesses and the impact of exchange rates. Thanks to revenue growth in the Imaging segment, operating income amounted to JPY125.5 billion, increased by 3.9% year-over-year, despite the sluggish semiconductor market for the Electronics Materials business. Net income attributable to FUJIFILM Holdings increased by 19.3% year-over-year to JPY113.6 billion due to valuation gains on marketable and investment securities. In light of the strong performance of the Imaging segment and the current economic environment, including the semiconductor market, full-year consolidated forecast for the fiscal year ending March 2024 remains unchanged from the previous forecast with some adjustments between the businesses, at revenue of JPY2,950.0 billion, operating income of JPY290.0 billion, and net income attributable to FUJIFILM Holdings of JPY225.0 billion, aimed to achieve its record highs. The annual dividend forecast for the fiscal year is JPY150 per share, including the 90th anniversary commemorative dividend of JPY10, marking the 14th consecutive annual dividend increase.

“In the first half of the fiscal year ending September 2023, we achieved unprecedented levels of operating income and net income, thanks to the outstanding performance of our Medical Systems and Imaging businesses,” says Teiichi Goto, president and chief executive officer, representative director, FUJIFILM Holdings Corporation. “Additionally, we are excited about the future growth potential of our Electronic Materials business, as we work to realize the synergies gained from the recent acquisition of the semiconductor process chemicals business of Entegris, Inc. in October. With these positive developments, we are confident that we are on track to achieve record results for the full year. This includes record sales for the second consecutive year, record operating income for the third consecutive year, and record net income for the fourth consecutive year.”

• Revenue increased 6.4% year-over-year to JPY448.2 billion due to higher contributions from all sub-segments, while operating income decreased 6.0% year-over-year to JPY41.8 billion mainly attributed to the absence of the income of cancellation charge in the previous fiscal year in the Bio CDMO business, in addition to inventory write-downs in the Bio CDMO and LS Solutions businesses.

• In the Medical Systems business, revenue was driven higher by steady sales of endoscopes and medical IT systems. In the Endoscope business, sales of new products performed well in Japan and overall sales grew mainly in Europe. In the Medical IT business, sales of systems and services, in particular the Picture Archiving and Communication System (PACS) SYNAPSE and the 3D image analysis system SYNAPSE VINCENT, were strong mainly in the U.S. and Europe.

• In the Bio CDMO business, revenue increased due to the solid performance in contract manufacturing of antibody drugs, mainly at the Denmark site, despite the absence of the income of cancellation charge related to the production of vaccine drug substance in the previous fiscal year. Meanwhile, slow orders for gene therapy and other drugs reflecting difficult fundraising climate for biotech venture customers led to write-downs in the first quarter on components and consumables nearing the end of their shelf life.

• In the LS Solutions business, revenue was driven higher mainly by shipment increase, reflecting the easing of the tight supply-demand situation for raw materials to be used in biopharmaceutical cell culture media. Write-downs were recorded in the first quarter on some raw materials of cell culture media and other products for coronavirus vaccine, which had been secured in response to a longer procurement lead time during the COVID-19 pandemic, as their shelf life dates were approaching.

• Revenue decreased 7.9% year-over-year to JPY319.6 billion and operating income decreased 51.5% year-over-year to JPY18.6 billion, mainly hit by the slowdown in the semiconductor market and lower sales for inkjet printheads. 
• In the Electronic Materials business, revenue decreased. However, with the completion of the acquisition of the semiconductor process chemicals business of Entegris, Inc. in October 2023, the company will further expand its business by strengthening its ability to meet customer needs based on a broader product range.
• In the Display Materials business, revenue increased as panel makers' operations recovered from the previous year, when production adjustments were made throughout the supply chain. 
• In the Graphic Communication business, revenue declined mainly due to lower demand for printed materials in the printing plates fields mainly in Europe and the U.S. In the Inkjet business, revenue fell as sales of inkjet printheads for the ceramic market were driven lower by sluggish demand in the Chinese real estate markets.

• Higher revenue from the Business Solution business boosted overall revenue by 0.8% year-over-year to JPY401.5 billion and operating income by 9.6% year-over-year to JPY33.0 billion. 
• In the Office Solutions business, revenue declined as the expansion of new OEMs, worldwide price revisions and other factors were not enough to offset lower exports of devices and consumables to Europe and the U.S. In September 2023, the company launched in India, a new market, compact A3 color/monochrome multifunction printers that offer a high level of security and support different working styles, including working from home.
• In the Business Solutions business, revenue rose mainly due to sales increase to municipalities in Japan and higher sales of solutions related to digital transformation(DX).
• FUJIFILM Business Innovation offers solutions and services to realize CHX (Customer Happy Experience) through customers’ DX activities. As its second CHX solution and service, following the first IT Expert Services, which offers one-stop IT support services tailored to customer needs, spanning from visualization and operation/management of IT assets to environmental improvement support, it has launched FUJIFILM IWpro, a new cloud service mainly for small and medium-sized businesses, in this November. By providing a workspace that facilitates collaboration by connecting to various existing systems and allow easy data sharing with internal and external stakeholders, the company support the transformation of a wide range of business processes and further promote digital transformation for our customers.

• Strong sales of instant photo systems and digital cameras boosted revenue by 19.5% year-over-year to JPY219.2 billion and operating income by 85.5% year-over-year to JPY49.4 billion.
• In the consumer imaging field, steady sales of the INSTAX instant photo systems drove revenue higher. The expansion of INSTAX film production was announced in September 2023, in response to increasing global demand for the INSTAX series. INSTAX Pal™, a palm-top size camera that allows users to take photos anytime and anywhere, was launched in October 2023. The camera is highly regarded in the marketplace for its features that make shooting experiences easier, and can be connected to the INSTAX Link™ smartphone printer series via Bluetooth to produce INSTAX prints out of images taken with it.
• In the Professional Imaging business, revenue increased significantly with the launch of the X-S20 in June 2023 in addition to the X-H2, X-H2S and X-T5, which were launched in the previous fiscal year. The latest addition to the GFX Series, the flagship GFX100 II, was launched in September and offers the highest levels of continuous shooting, AF and video performance.

For more details, please visit the Investor Relations section of Fujifilm website

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