FUJIFILM Holdings Corporation
Earnings Presentation for the Third Quarter Ended December 31, 2025
February 5, 2026
Event Summary
[Company Name]
FUJIFILM Holdings Corporation
[Company ID]
4901-QCODE
[Event Language]
JPN
[Event Type]
Earnings Announcement
[Event Name]
Earnings Presentation for the Third Quarter Ended December 31, 2025
[Fiscal Period]
FY2026 Q3
[Date]
February 5, 2026
[Number of Pages]
29
[Time]
15:10 – 16:06
(Total: 56 minutes, Presentation:13 minutes, Q&A: 43 minutes)
[Venue]
Webcast
[Number of Speakers]
6
Teiichi Goto
Masayuki Higuchi
Naoki Hama
Chisato Yoshizawa
Tetsuya Iwasaki
Toshihisa Iida
President, Representative Director and CEO
Director and Corporate Vice President, CFO
Director, FUJIFILM Holdings Corporation,
President, Representative Director & CEO,
FUJIFILM Business Innovation Corp.
Director & Senior Vice President, General
Manager of Corporate Communications
Division and General Manager of ESG
Division
Director, Senior Vice President and General
Manager of Electronic Materials Business
Division of FUJIFILM Corporation
Director and Corporate Vice President,
General Manager of Life Sciences Strategy
Headquarters, General Manager of Bio
CDMO Division of FUJIFILM Corporation
1
Presentation
Moderator: It is now time to begin FUJIFILM Holdings Corporation's earnings presentation for Q3 of the fiscal
year ending March 2026. Thank you for taking the time to join us today.
We are joined today by our management team. First, Teiichi Goto, President, Representative Director and
CEO of FUJIFILM Holdings Corporation.
Goto: Thank you.
Moderator: Next, Masayuki Higuchi, Director and Corporate Vice President, CFO of FUJIFILM Holdings
Corporation.
Higuchi: I am Higuchi. Thank you.
Moderator: Naoki Hama, Director, FUJIFILM Holdings Corporation and President, Representative Director and
CEO, FUJIFILM Business Innovation Corp.
Hama: I am Hama. Thank you.
Moderator: Chisato Yoshizawa, Director and Senior Vice President, General Manager of Corporate
Communications Division and General Manager of ESG Division of FUJIFILM Holdings Corporation.
Yoshizawa: I am Yoshizawa. Thank you.
Moderator: Tetsuya Iwasaki, Director, Senior Vice President and General Manager of Electronic Materials
Business Division of FUJIFILM Corporation.
Iwasaki: I am Iwasaki. Thank you.
Moderator: And Toshihisa Iida, Director and Corporate Vice President, General Manager of Life Sciences
Strategy Headquarters and General Manager of Bio CDMO Division of FUJIFILM Corporation.
Iida: I am Iida. Thank you.
Moderator: I am Nagasawa from the Corporate Communications Division, and I will be moderating today's
briefing.
2
First, Goto will walk you through the highlights of our Q3 financial results. Then Higuchi will present the
consolidated financials, business overview, and our full-year forecast for the fiscal year ending March 2026.
After that, we will move on to the Q&A session.
With that, I would now like to turn it over to our CEO, Goto.
3
Goto: This is Goto. I will begin with an overview of FUJIFILM Holdings’ consolidated results for Q3 of the fiscal
year ending March 2026.
In Q3, revenue was JPY857.4 billion, operating income JPY90.0 billion, and net income attributable to FUJIFILM
Holdings JPY73.1 billion, all marking record highs for a Q3 period.
Revenue increased, driven mainly by the Healthcare segment, supported by the ramp up of new Bio CDMO
facilities; the Electronics segment, where sales of Semiconductor Materials, including copper interconnect
CMP slurry, remained strong; and the Imaging segment, which continued to see solid demand, particularly for
digital cameras.
Operating income also increased. Although we were affected by US tariff policies and higher raw material
costs, the increase in gross profit from higher revenue and favorable foreign exchange effects more than
offset these headwinds.
For the cumulative nine-month period, revenue, operating income, and net income attributable to FUJIFILM
Holdings all reached record highs.
4
Reflecting the strong performance in the Electronics and Imaging segments and our outlook for the remainder
of the year, we have revised our full-year profit forecast upward. We now expect to achieve record highs in
revenue, operating income, and net income attributable to FUJIFILM Holdings for the fiscal year ending March
2026.
As previously announced, we plan to pay an annual dividend of JPY70 per share, marking the 16th consecutive
year of dividend increases.
Higuchi will walk you through the details by segment shortly.
That concludes my presentation.
Moderator: Now, I would like to turn it over to Higuchi.
5
Higuchi: I will now walk you through our results.
As mentioned earlier, Q3 of the fiscal year ending March 2026 saw revenue, operating income, and net income
attributable to FUJIFILM Holdings all reach record highs for both the quarter and the nine-month period.
6
Next slide.
Here you can see an overview of the consolidated revenue and operating income by segment for Q3 of the
fiscal year ending March 2026. The segment details will be explained in the next slides.
7
We will begin with the Healthcare segment.
Revenue was JPY266.1 billion, up 7.7% YoY. Revenue grew in the Medical Systems business, driven by strong
sales of endoscopes, medical IT, and IVD. Growth was also seen in the Bio CDMO business, supported by the
ramp-up of new facilities in Denmark, as well as in LS Solutions, where the market for culture media continued
to recover.
Operating income, in contrast, was down 10.1% YoY to JPY10.3 billion. Although one-time costs in Bio CDMO
decreased from the prior year, foreign exchange and higher raw material costs driven by soaring silver prices,
along with the impact of the US tariff policy, resulted in a YoY decline of JPY1.2 billion for the Healthcare
segment overall.
8
Next, we will turn to the Electronics segment.
Revenue was JPY119.2 billion, up 17% YoY. The Semiconductor Materials business recorded higher revenue,
supported by strong sales of CMP slurry and other advanced-node materials used in generative AI applications.
The AF Materials business also increased, reflecting higher sales of data tape to major IT companies.
Operating income was JPY28.2 billion, up 51.3% YoY. Despite the negative impact of the U.S. tariff policy,
higher revenue in Semiconductor Materials drove a significant increase in profit, resulting in a YoY gain of
JPY9.6 billion for the segment.
9
Turning to the Business Innovation segment.
Revenue was JPY277.8 billion, down 5.6% YoY. The Business Solutions segment continued to perform well,
supported by strong demand for DX-related solutions, resulting in higher revenue. However, revenue in the
Office Solutions business declined, reflecting soft market conditions in the Asia-Pacific region and the
reduction of low-profit product lines. Revenue also declined in the Graphic Communications business, where
the European market for printing plates remained weak.
Operating income was JPY5.4 billion, down 69.2% YoY. Lower gross profit from reduced revenue and structural
reforms in the Asia-Pacific region led to a YoY decline of JPY12.1 billion for the Business Innovation segment.
10
Finally, we will move on to the Imaging segment.
Revenue was JPY194.2 billion, up 14.6% YoY. Both the Consumer Imaging business—supported by strong
instax sales including new products—and the Professional Imaging business—driven by strong digital camera
sales—recorded higher revenues.
Operating income was JPY55.1 billion, up 12.9% YoY. Higher revenues in both businesses contributed to
stronger profitability, resulting in a YoY increase of JPY6.3 billion for the Imaging segment.
11
Let me now explain the cash flow for the nine-month period.
Cash inflow decreased by JPY48.1 billion YoY to JPY266.1 billion, reflecting higher working capital. Cash
outflow shrank by JPY25.5 billion YoY to JPY434.5 billion, mainly because capital expenditures declined. As a
result, adjusted free cash flow excluding business acquisitions was an outflow of JPY164.8 billion.
That concludes the explanation of the Q3 results for the fiscal year ending March 2026.
12
Next, I will explain our forecast for the fiscal year ending March 2026.
As mentioned earlier, we are keeping our full-year revenue forecast unchanged, while revising our profit
forecast upward.
13
Here is the outlook by segment.
For revenue, we have revised Business Innovation downward by JPY35.0 billion, reflecting soft demand in the
Asia-Pacific region for the office solutions business and weak market conditions for printing plates in Europe
within the Graphic Communications business. We have also revised healthcare downward by JPY10.0 billion
to reflect delays in early-stage projects for small-to medium-scale facilities in Bio CDMO.
On the other hand, we have revised Electronics upward by JPY25.0 billion and Imaging upward by JPY20.0
billion, reflecting strong sales of Semiconductor Materials and continued solid performance in Imaging
respectively.
For operating income, we have revised Healthcare downward to reflect the optimization of the production
structure for small-to medium-scale Bio CDMO facilities, and the Business Innovation downward to
incorporate restructuring costs in the Asia-Pacific region.
Meanwhile, we have revised the Electronics and Imaging upward, reflecting higher profits driven by strong
sales.
14
Details of segment revenue can be found on page 24.
15
Let me now discuss the Bio CDMO business forecast for this fiscal year and our outlook for FY2026.
Starting with FY2025, large-scale facilities continue to ramp up smoothly, supported by new capacity added
at our Denmark site at the end of 2024 and steady progress at our new U.S. site, which opened last year. For
small-to medium-scale facilities, however, the market for cell and gene therapies is still in the early stages of
recovery. More recently, delays in securing early-stage projects and production loss have also weighed on
performance.
To ensure efficient operations aligned with current market conditions, we have incorporated additional costs
for optimizing the production structure. As a result, we now expect full-year results to fall below our previous
forecast.
Turning to the FY2026 forecast, demand for large-scale biopharmaceutical production, particularly for
antibody drugs, remains very strong, especially in the U.S. market, and we expect robust market growth to
continue. To meet this demand, we are accelerating the early ramp-up of our new large-scale US facilities.
Although fixed costs will increase ahead of revenue, we expect EBITDA to improve as utilization rises.
Furthermore, in this growing market environment, we expect to enter a profit expansion phase from FY2027
onward, when the new U.S. large-scale facilities begin full-scale operations.
That concludes the outlook for the Bio CDMO business. Further details will be provided by Iida at the business
briefing scheduled for February 19.
16
Finally, let me explain the impact of the U.S. tariff policy.
In Q3, the negative impact was limited to JPY1.9 billion on a consolidated basis, supported by measures such
as pricing actions, supply chain adjustments, and additional cost reductions.
We are maintaining our full-year assumption of a negative JPY6.0 billion impact, which was incorporated into
our forecast at the time of the Q1 results announcement in August. We will continue to monitor developments
closely and take necessary actions.
That concludes my remarks.
Moderator: This concludes our presentation. Thank you for your attention.
17
Question & Answer
Moderator: We will now move on to the Q&A session.
Mr. Shibano from Citigroup Securities, please go ahead.
Shibano [Q]: This is Shibano from Citigroup Securities. My first question is about the Bio CDMO outlook you
presented at the end. I would like to confirm my quantitative understanding.
As I understand it, while no specific operating income target was disclosed for FY2025, the implied loss was
around JPY15.0 billion. Based on the chart, however, it appears that the loss may widen further, possibly to
around JPY25.0 billion. Is that the correct interpretation?
In addition, for FY2026, the loss also seems likely to expand further compared with the latest FY2025 forecast.
Should we be thinking in terms of losses of around JPY30.0-40.0 billion to JPY40.0 billion? Since you have
illustrated this in some detail, I would appreciate some further explanation.
Iida [A]: This is Iida.
Compared with our initial FY2025 outlook, we have revised our forecast downward by approximately JPY10.0
billion. Roughly half of this is attributable to operational factors and the other half to optimization of
production structure. As a result, while we have not disclosed a specific figure, operating income for this fiscal
year is expected to be a loss in the mid-JPY20.0 billion range.
For the next fiscal year, EBITDA is expected to improve. However, depreciation will increase significantly,
mainly at the new site in North America. Accordingly, operating income is currently expected to deteriorate
by roughly another JPY10.0 billion compared with this fiscal year.
Shibano [Q]: Looking ahead to FY2027, I am not expecting the loss to reach around JPY35.0 billion next year.
Even if operations ramp up thereafter, should we assume that achieving operating profitability in FY2027 will
be difficult at this stage? Or could utilization increase sharply, leading to a major improvement and a return
to the trajectory envisioned in your medium-term management plan?
Iida [A]: We plan to provide more detailed explanations at the business briefing scheduled for the 19th of this
month. In broad terms, however, the new North Carolina site has already begun operations. As disclosed, we
have major contracts with Johnson & Johnson and Regeneron, and the site is expected to reach full utilization
at an early stage.
As shown in the middle of the chart in page 17, upfront costs for the early ramp-up of the new U.S. facilities
will increase. We are continuing to hire and are accelerating staffing in order to speed up the ramp-up. As a
result, profitability at the North Carolina large-scale facilities is expected to improve significantly between
FY2026 and FY2027. Normally, large-scale facilities take around two-and-a-half years to reach break-even.
However, supported by these major contracts, we expect to achieve break-even much earlier than initially
anticipated.
While small-to medium-scale facilities are currently facing some operational challenges, the effects of
production structure optimization and streamlining will be realized through FY2026 and FY2027. Accordingly,
we expect a substantial improvement in overall profitability in FY2027. Further details will be provided at the
business briefing later this month.
18
Shibano [Q]: My second question is about the Business Innovation segment.
It appears that profitability slipped further this quarter. As I understand it, the segment includes both the
former Fuji Xerox operations and the Graphic Communications business. Compared with the past two
quarters, where is the significant deterioration in Q3 coming from? Is it mainly from the former Fuji Xerox
side, or is it driven by the Graphic Communications?
And how should we think about the outlook for Q4 and into the next fiscal year?
Hama [A]: This is Hama.
As we mentioned earlier, in Q3 we saw weaker than expected after market print volume in the Asia-Pacific
region, which weighed on results. However, when we look at performance by business, there are significant
differences.
The biggest factor is the Graphic Communications business. This business is in the red and is currently
undergoing restructuring, and losses expanded further in Q3. We are implementing measures including
structural reforms, and the impact was significant this quarter.
Regarding whether the impact comes from the FUJIFILM Group side or the FUJIFILM Business Innovation Corp.
side, the printing plate business for Europe that FUJIFILM Corporation brought in is indeed a major factor. In
addition, some shipments of production printers using xerography, originally expected in Q2 and Q3, have
been partially shifted to Q4, which affected the Q3 results.
From a profitability standpoint, some public sector solution projects have also been shifted to Q4, and this
timing effect weighed on Q3 results.
As for Office Solutions, while there has been some impact from the Asia-Pacific region, this business is
relatively resilient. As we have explained previously, it maintains a profit margin of over 10% for the full-year
guidance.
Shibano [Q]: My third and final question is for Mr. Goto.
Based on the CDMO discussion earlier, as we head into the third year of the medium-term management plan,
if CDMO losses were to widen to around JPY35.0 billion next fiscal year, that would create a gap of roughly
JPY70.0 billion relative to the original plan.
At the same time, the Electronics segment is performing well, and the Imaging segment has delivered
excellent results so far, so it may be possible to offset at least part of that gap. How do you view the situation?
In addition, in some businesses, certain issues are becoming more apparent. Portfolio restructuring was one
of the key themes of the current medium-term management plan. Do you feel a heightened sense of urgency
or concern in this regard? I would appreciate your thoughts.
Goto [A]: Next fiscal year will be the final year of our medium-term management plan. Our targets are revenue
of JPY3,450.0 billion and operating income of JPY360.0 billion, and I have no intention of changing them. We
remain fully committed to achieving these targets.
As you mentioned, the Semiconductor Materials business is expected to remain strong for some time, and
we will continue to introduce new products in the Imaging segment. With these businesses driving our
performance, we believe we can offset the shortfall arising from Bio CDMO and other areas.
19
With regard to cash flow, we have stated that we aim to return to positive free cash flow next fiscal year, and
we are putting the necessary measures in place to achieve this. From the following year onward, we expect
to generate cash that will provide us with greater managerial flexibility.
The next fiscal year represents an important milestone on the path toward VISION2030, under which we aim
to achieve revenue of JPY4,000.0 billion and an operating margin of 15% or higher. I am confident that we can
stay on track toward these goals.
Moderator: We will now take a question from Mr. Wakao of JPMorgan Securities. Please go ahead.
Wakao [Q]: This is Wakao from JPMorgan. My first question is also about slide 17.
It appears that the outlook for small-to medium-scale operations has worsened, which I assume is the main
reason behind the revision. My impression, however, was that weakness in this area would be more of an
issue next fiscal year rather than this year. Why did you revise revenue at this timing?
And regarding the outlook for the next fiscal year and beyond, what can you share at this point? Should we
assume that the environment will remain difficult for some time?
Iida [A]: This is Iida.
The downward revision reflects delays in early-stage projects. Process development for these projects has a
relatively short development cycle, and venture customers often place orders once funding is secured. We
had expected some of these orders to come in this fiscal year, but they did not and have shifted into the next
fiscal year or later.
We also had a cancellation. While cancellation fees compensate for part of the impact, the timing of fee
recognition also shifted. Taking these factors into account, we revised our outlook downward.
In response, we have reviewed capacity and demand and are optimizing our production structure to improve
efficiency.
As for the outlook beyond the next fiscal year, early-stage antibody programs are emerging in the market, and
by securing these projects, we expect temporarily idle capacity to be filled by H2 of FY2026. In the U.S.,
including our Texas site, demand for small-to medium-scale production is also increasing, and we expect this
to contribute from the latter half of the next fiscal year.
By modality, in cell and gene therapy, we are seeing new projects from major pharmaceutical companies as
well. While FY2026 may be early, programs aimed at commercialization are expected to come in between
FY2027 and FY2028. Therefore, we expect orders and utilization for small-to medium-scale operations to
increase from H2 of FY2026 into FY2027.
Wakao [Q]: So, the missed orders and cancellations were due to individual factors, not a sign that market
conditions are deteriorating further?
Iida [A]: Correct. The overall market environment remains solid. These were individual project-specific factors.
Wakao [Q]: Next question. While I understand that the details will be explained at the CDMO briefing, I would
like to confirm this in advance to avoid any additional negative surprises.
Regarding the order situation in Denmark, particularly for the portions that need to be secured for FY2026,
should we assume that these orders have already been fully secured?
20
Iida [A]: We will explain this in greater detail on February 19. In broad terms, the U.S. market remains very
strong, while markets outside the U.S. are feeling some pressure. We will provide a thorough explanation at
the briefing.
Wakao [Q]: So, regarding the remaining FY2026 portion in Denmark, you are not in a position to comment on
whether it has been fully secured at this point?
Iida [A]: We will address that on February 19.
Wakao [Q]: One more question. Based on your explanation on CDMO so far, I believe I understand the JPY10.0
billion downward revision for the Healthcare segment this fiscal year. But how should we think about the
remaining JPY4.0 billion?
Looking at slide 25, it appears to be related to raw material prices. Is it correct to understand that rising silver
prices are hurting profitability in the Medical Systems business, including X-ray film?
Higuchi [A]: The JPY14.0 billion consists of several factors. About JPY5.0 billion relates to production structure
optimization for small-to medium-scale facilities. The impact of higher silver prices in the Medical Systems
business is roughly JPY4.5 billion. Together, these account for about JPY10.0 billion.
The remaining roughly JPY4.0 billion reflects weaker-than-expected demand for X-ray film, mainly in China, as
well as some timing shifts in MRI and CT equipment deals.
Wakao [Q]: Silver prices have been rising for some time. Are you able to pass these increases on through
pricing? What measures are you considering?
21
Goto [A]: This is Goto. Basically, our approach is to pass on increases in silver prices to customers. Silver has
always been a highly volatile metal, and we have adjusted prices accordingly. Of course, the key issue is how
demand responds when prices are raised.
From the beginning, we assumed that film demand would decline over time, which is why we entered the IT
business early with PACS. Today, we hold the number-one global share in PACS, and we will continue to
advance digitalization with that in mind.
Moderator: We will now take a question from Ms. Yoshihara from UBS Securities, please go ahead.
Yoshihara [Q]: This is Yoshihara from UBS Securities. My first question is on the Medical Systems business.
It may be a bit early to talk about next fiscal year, but could you walk us through the key positives and
negatives for this business?
You mentioned earlier the decline in X-ray film demand in China. I am wondering whether there is a risk that
this could last longer than expected, and how you see that risk. Also, domestic hospital capital spending
seemed slow from October to December, but following the revisions, there may be some momentum for
improvement.
If possible, could you summarize the positive and negative factors by business and by region for Q4 and into
the next fiscal year?
Goto [A]: This is Goto.
The biggest issue right now is how far X-ray films will decline. They currently make up about 7% of our Medical
Systems revenue, and they are decreasing.
On the other hand, the rest of the Medical Systems businesses are growing, as seen in the Q3 results. The
strongest growth is in endoscopes. We are expanding our share globally, not just in Japan, and developing
new demand.
Another key area is IVD. Our DRICHEM system continues to see strong global demand, and because it includes
consumables, operating income is performing very well.
Medical IT, including PACS, and related applications are also growing worldwide. These three areas are driving
overall growth.
CT and MRI are not high-growth categories, but they are steadily turning positive. These are large systems
that take time to manufacture and install, but demand for the ECHELON Smart ZeroHelium is extremely strong,
and we currently have a backlog.
Ultrasound will also see new product launches, and we believe this will lead to another growth phase.
Yoshihara [Q]: Just to confirm, excluding foreign exchange effects, Q1 was a bit of a slow start in the Medical
Systems business, and Q2 and Q3 grew only in the low single-digit range, largely because of the negative
impact from X-ray film. Should we expect higher growth for this business next fiscal year?
Goto [A]: As the decline in X-ray film approaches its bottom, we expect the growth of the other businesses to
become more visible.
Yoshihara [Q]: My second question is about Semiconductor Materials and the Electronics segment.
22
The numbers this quarter were very strong. Between Semiconductor Materials and Data Tape, which
contributed more to profit in Q3? And if possible, could you share your outlook? Given the current
environment, I imagine demand for data tape could be quite high, so I would appreciate your view on future
demand.
Goto [A]: This is Goto. In terms of profit growth, Semiconductor Materials were the main driver.
That said, as you mentioned, data storage media, specifically LTO, is also seeing strong global momentum.
One reason is the rise of cold data storage, systems separated from online environments, partly due to
ransomware risks. In China, regulations now require companies to maintain cold data backups.
Another factor is the tight supply of hard disk drives. With HDDs in short supply, companies are turning again
to LTO and other tape formats.
For Semiconductor Materials, I will turn it over to Iwasaki.
Iwasaki [A]: This is Iwasaki.
Demand has been extremely strong since last summer, both for AI-related applications and for back-end
processes, which also support AI. This quarter’s strong performance includes materials for advanced logic and
memory in Taiwan and Korea, but the biggest driver was insulating materials for back-end processes.
Looking ahead, based on joint development with major advanced logic manufacturers and OSATs, we expect
back-end materials to increasingly flow into front-end applications as well. Even if we factor in the risk of an
AI-driven bubble, the underlying market growth is even stronger.
The Chinese market is also expanding. Taking all of this into account, we believe that the semiconductor
market will remain quite strong going forward. The production capacity we have invested in over the past
four years is now entering a phase where it can fully demonstrate its value.
Moderator: We will now take a question from Mr. Nakanomyo of Jefferies Securities. Please go ahead.
Nakanomyo [Q]: I am Nakanomyo from Jefferies Securities.
My first question is about CDMO. How has your EBITDA outlook for FY2025 and FY2026 changed compared
with your previous assumptions?
Iida [A]: This is Iida.
EBITDA and depreciation have remained broadly unchanged. As a result, the operational impact of around
JPY10.0 billion this fiscal year represents the change from our previous guidance.
Nakanomyo [Q]: And in terms of EBITDA margin, what is your outlook for FY2025 and FY2026?
Iida [A]: For FY2025, the EBITDA margin is shown on the slide 27.
Nakanomyo [Q]: Understood. How about FY2026?
Iida [A]: The figures shown on the slide 27 exclude one-time costs, so they differ from the actual results.
However, for FY2026, we expect improvement both in absolute EBITDA and in margin, even including onetime costs.
Nakanomyo [Q]: So, you cannot provide a specific percentage at this stage.
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Iida [A]: We expect to disclose that on February 19.
Nakanomyo [Q]: My second question is one I ask every quarter. Excluding foreign exchange, how did Q3
results compare with your internal plan, and how did they break down by segment?
Higuchi [A]: This is Higuchi. Are you asking about the comparison with our internal plan for Q3?
Focusing on profit, on a company-wide basis, we outperformed our internal plan by around JPY3.0 billion to
JPY4.0 billion.
Excluding foreign exchange and one-time factors, the Healthcare was about JPY10.0 billion below plan in Q3,
Electronics was about JPY10.0 billion above plan, Imaging was about JPY5.0 to JPY6.0 billion above plan, and
Business Innovation was about JPY5.0 billion to JPY6.0 billion below plan.
In Healthcare, as mentioned earlier, weaker utilization at small-to medium-scale CDMO facilities and a fasterthan- expected decline in medical Xray film reduced profit.
In Business Innovation, lower equipment sales and service revenue in the Asia-Pacific region had a major
impact.
Nakanomyo [Q]: Just to confirm, this is for the three-month Q3 period, excluding foreign exchange and silver
prices?
Higuchi [A]: Excluding foreign exchange, silver prices, and one-time factors, profit for the company as a whole
was JPY2.0 billion to JPY3.0billion below plan.
Moderator: We will now take a question from Mr. Okazaki of Nomura Securities, please go ahead.
Okazaki [Q]: This is Okazaki from Nomura Securities. I would like to ask about the impact of silver prices in
more detail.
Based on the figures in the materials, it looks like cost increases in Q4 could exceed JPY10.0 billion. If this
continues, even with your cost-pass-through policy, the risk seems quite significant. Have you already
implemented price increases? And in Q4, how much of the cost increase do you think you can absorb in the
Consumer Imaging business and Healthcare segment?
I would also appreciate your views on inventory levels, pricing lags, and how we should think about these
factors going into the next fiscal year.
Higuchi [A]: Looking at Q4 alone, assuming silver prices of around JPY450,000 to JPY460,000 per kilogram, the
impact will be roughly JPY7.0 billion to JPY8.0 billion.
There is a timing lag in pricing actions, and we need to balance this with demand trends. Our basic policy is to
continue adjusting prices and work to absorb the impact going into the next fiscal year. However, the recent
rise in silver prices has been very sharp, so we need to monitor market conditions carefully.
Okazaki [Q]: Have you already implemented price increases? And are there any differences between the
Consumer Imaging business and Healthcare segment?
Goto [A]: This is Goto.
24
We have already implemented price increases. Typically, there is about a three-month lag between
movements in silver prices and pricing actions. When prices rise sharply, our price increases may not fully
catch up.
The largest volume of silver is used in the Medical Systems business, followed by the Imaging business, which
uses roughly one third of the amount used in the Medical Systems business
In Imaging, the main silver-consuming product is color paper, and we adjust pricing while monitoring demand
and how much we can absorb.
As for instax, we have not yet decided on our response. We need to carefully assess silver price trends and
market acceptance.
Also, while not all of our silver is hedged, a portion is, so we do not bear the full impact of price fluctuations.
Okazaki [Q]: Are you also implementing price increases for medical X-ray film?
Goto [A]: Yes, we have been adjusting prices as needed. We have been doing this for many years. This is not
a recent change. Demand for medical X-ray film has been declining steadily for about 20 years. During that
time, we have maintained production volumes while protecting our market share.
Going forward, we believe that, in addition to implementing price increases, it will be necessary to take other
appropriate measures.
Moderator: We will now take a question from Mr. Shimamoto of Okasan Securities, please go ahead.
Shimamoto [Q]: This is Shimamoto from Okasan Securities. I have just one question.
The Imaging segment has been performing extremely well, and I would like to hear your updated view on the
outlook. Looking at adjusted operating income, Q4 appears significantly lower than the previous year, yet
results so far seem to be coming in above expectations. It feels like you may be taking a conservative stance.
If there are specific risks you are watching for in Q4, I would appreciate your comments. And for the next fiscal
year, given that imaging has been delivering strong profit growth and the bar is rising, how are you thinking
about the outlook?
Higuchi [A]: In Q3, the market demand was very strong, and revenue jumped significantly. As a result, we
concentrated production for Q4 in Q3 and shipped a portion ahead of schedule.
This front-loading is one reason Q4 revenue appears lower. On the profit side, last year’s Q4 included gains
from land sales, which we do not have this year. In addition, this year’s Q4 incorporates higher silver and
memory prices. We will take pricing actions, but compared with Q4 of FY2024, profit will be lower.
Goto [A]: Regarding instax film, we have already announced additional production capacity. Starting in spring
2026, output will increase by about 10% compared with FY2025 for instax mini film. We have been expanding
film production since FY2022. Total investment is JPY11.5 billion, and by FY2026 production volume will have
increased by roughly 50% compared with FY2022. Demand remains strong, so these measures will continue.
The instax mini Evo Cinema, launched in early February, is receiving very strong market feedback, and orders
are coming in steadily. We expect it to grow significantly next fiscal year.
In the Professional Imaging business, our GFX ETERNA cinema camera has been well received globally, and
orders are increasing.
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Therefore, we see growth opportunities in both Consumer and Professional Imaging markets next year.
The main uncertainty lies with color paper, where silver prices may constrain growth. Since silver prices are
unpredictable, this remains a risk factor.
Moderator: That concludes the Q&A session and
today’s FUJIFILM Holdings earnings presentation. Thank you very much for joining us today.
[END]
Document Note
Speaker speech is classified based on whether it [Q] asks a question to the Company and [A] provides an
answer from the Company.
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