FUJIFILM Holdings Corporation
Earnings Presentation for the Fiscal Year Ended March 2026
May 12, 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 Fiscal Year Ended March 2026
[Fiscal Period]
FY2026 Q4
[Date]
May 12, 2026
[Number of Pages]
35
[Time]
15:10 - 16:12
(Total: 63 minutes, Presentation: 19 minutes, Q&A: 44 minutes)
[Venue]
Webcast
[Number of Speakers]
7
Teiichi Goto
Masayuki Higuchi
Naoki Hama
Masato Yamamoto
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 and Senior Executive Vice President,
General Manager of Imaging Business
Division, FUJIFILM Corporation
Director and Corporate Vice President,
General Manager of Corporate
Communications Division and General
Manager of ESG Division
Director, Corporate Vice President and
General Manager of Electronic Materials
Business Division, FUJIFILM Corporation
Director and Corporate Vice President,
General Manager of Bio CDMO Division,
FUJIFILM Corporation
1
Presentation
Moderator: It is now time to begin the earnings presentation for FUJIFILM Holdings Corporation for the fiscal
year ended March 2026. Thank you very much for taking the time to join us today.
I would like to introduce today's speakers. First, Teiichi Goto, President, Representative Director, and CEO of
FUJIFILM Holdings Corporation.
Goto: Thank you.
Moderator: Next, Masayuki Higuchi, Director, Corporate Vice President, and CFO of FUJIFILM Holdings
Corporation.
Higuchi: This is Higuchi. Thank you.
Moderator: Naoki Hama, Director of FUJIFILM Holdings Corporation and President, Representative Director,
and CEO of FUJIFILM Business Innovation Corp.
Hama: I am Hama. Thank you.
Moderator: Masato Yamamoto, Director and Senior Executive Vice President, as well as General Manager of
the Imaging Solutions Division of FUJIFILM Corporation.
Yamamoto: This is Yamamoto. Thank you.
Moderator: Chisato Yoshizawa, Director, Corporate Vice President and General Manager of the Corporate
Communications Division, and General Manager of the ESG Division of FUJIFILM Holdings Corporation.
Yoshizawa: I am Yoshizawa. Thank you.
Moderator: Tetsuya Iwasaki, Director, Corporate Senior Vice President and General Manager of the 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 Bio CDMO Division
of FUJIFILM Corporation.
Iida: I am Iida. Thank you.
Moderator: I am Nagasawa from the Corporate Communications Division, and I will serve as today's
moderator.
2
First, Goto will provide an overview of the results highlights. Higuchi will then explain the consolidated results,
business overview, and consolidated forecast for the fiscal year ending March 2027. After that, we will move
to the Q&A session.
With that, I would now like to turn it over to Goto.
3
Goto: This is Goto. I would like to provide an overview of the consolidated results of FUJIFILM Holdings
Corporation for the fiscal year ended March 2026.
Revenue for FY2025 was JPY3,357.0 billion. Operating income was JPY350.2 billion, and net income
attributable to FUJIFILM Holdings was JPY276.7 billion, with all three delivering record highs for the full year.
Revenue increased, driven by strong performance in the Healthcare segment, supported by the launch of new
Bio CDMO manufacturing facilities in Denmark; the Electronics segment, where sales of Semiconductor
Materials such as CMP slurry remained strong; and the Imaging segment, where strong sales centered on
digital cameras continued.
Operating income increased despite the impact of higher raw material costs, including U.S, tariffs and rising
silver prices, supported by higher gross profit associated with increased sales. In Q4, operating income
declined YoY due mainly to the absence of one-time gains from asset sales recorded in the previous fiscal year.
However, revenue and net income attributable to FUJIFILM Holdings both reached record highs for a quarter.
4
Let me now turn to our consolidated forecast for the fiscal year ending March 2027.
We are targeting revenue of JPY3,470.0 billion, up 3.4% YoY, driven by the expansion of large-scale Bio CDMO
facilities and continued growth in Semiconductor Materials sales.
For operating income, we will work across each business to mitigate the impact of rising raw-material prices,
including semiconductor memory and silver, through pricing measures and other initiatives. Reflecting
continued strong performance in the Electronics and Imaging segments, we aim to achieve another record
high.
We also aim to achieve a record high in net income attributable to FUJIFILM Holdings for the seventh
consecutive year.
In addition, we plan to increase the annual dividend to JPY75.0 per share, marking the 17th consecutive year
of dividend increases.
Please note that this forecast does not factor in potential fluctuations in raw material and energy costs
associated with the escalating situation in the Middle East, as visibility remains limited. Higuchi will provide
further details later.
5
Let me now explain the progress toward the FY2026 targets under our medium-term management plan,
VISION2030.
For revenue, operating income, and net income attributable to FUJIFILM Holdings, we aim to achieve FY2026
targets set under VISION2030.
For ROE and ROIC, we will improve profitability through the launch of new large-scale Bio CDMO facilities and
enhance capital efficiency.
In FY2026, we will further strengthen the earnings power of each business and accelerate growth toward
FY2030.
6
Next, let me touch on shareholder returns.
For FY2025, we plan to pay an annual dividend of JPY70.0 per share, marking the 16th consecutive year of
dividend increases.
On March 30, 2026, we announced a share buyback program with an upper limit of JPY30.0 billion, our first
since 2020, along with the cancellation of all repurchased shares. We completed the share buyback on April
30 upon reaching the upper limit.
For FY2026, as mentioned earlier, we plan to increase the annual dividend by JPY5.0 to JPY75.0 per share,
marking the 17th consecutive year of dividend increases.
That concludes my presentation.
Moderator: Now, I would like to turn it over to Higuchi.
7
Higuchi: This is Higuchi. I will now explain the consolidated results and business overview.
As Goto mentioned earlier, operating income in Q4 of FY2025 declined YoY due to the absence of one-time
gains from asset sales recorded in the previous year and the impact of higher raw-material prices.
Nevertheless, both revenue and net income attributable to FUJIFILM Holdings reached record highs for Q4.
For the full year, revenue, operating income, and net income attributable to FUJIFILM Holdings all reached
record highs.
8
Revenue and operating income by segment are shown here.
As explained earlier, operating income in Q4 declined YoY due to the absence of one-time gains recorded in
the previous year and the impact of higher raw-material prices. However, excluding these special factors, all
segments posted higher operating income.
9
Let me now walk you through the Healthcare segment.
Revenue increased 5.4% YoY to JPY333.6 billion.
In the Medical Systems, endoscope sales remained strong in major markets, including the U.S. and Europe. In
addition, deliveries of several large orders were concentrated, resulting in roughly a 30% increase in sales and
overall revenue growth. The Bio CDMO also recorded higher revenue, supported by the launch of new Bio
CDMO facilities in Denmark. The LS Solutions also recorded higher revenue as market conditions for culture
media continued to recover.
Operating income declined 34.7% YoY to JPY29.7 billion. This reflected the absence of last year's asset-sale
gain, the impact of higher silver prices, and production optimization measures in the Bio CDMO. Excluding
these one-time factors, operating income increased 15.6% YoY on an operational basis.
10
Next is the Electronics segment.
Revenue increased 27.4% YoY to JPY127.5 billion. The Semiconductor Materials posted higher revenue, driven
by strong sales of advanced-node materials for generative AI applications, including CMP slurry. The AF
Materials also recorded higher revenue, supported by increased data-tape sales to major IT companies.
Operating income increased 74% YoY to JPY30.7 billion. Higher revenue in both businesses contributed to a
JPY13.0 billion increase in operating income for the segment as a whole.
11
Next is the Business Innovation segment.
Revenue decreased 3.5% YoY to JPY324.8 billion. The Business Solutions continued to perform well, supported
by strong sales of DX-related solutions, resulting in higher revenue.
On the other hand, revenue declined in the Office Solutions due to weak market conditions in the Asia-Pacific
region and efforts to streamline low-profit products. In graphic communications, sales of xerographic
machines increased in new markets, but demand for printing plates in Europe declined due to weak market
conditions, resulting in revenue that was generally flat.
Operating income decreased 15.4% YoY to JPY27.0 billion. Although the business solutions posted higher sales,
the absence of last year's asset-sale gain and an increase in structure strengthening expenses resulted in lower
earnings. Excluding these one-time factors, operating income increased 6.6% YoY on an operational basis.
12
Finally, the Imaging segment.
Revenue increased 22.6% YoY to JPY141.4 billion. Both the Consumer Imaging, supported by strong instax
sales including new products, and the Professional Imaging, supported by strong digital-camera sales, posted
higher revenue.
Operating income increased 1.1% YoY to JPY24.5 billion. Despite the absence of last year's asset-sale gain and
the impact of higher silver prices, these factors were offset by higher gross profit associated with increased
sales in both businesses, as well as favorable foreign-exchange effects. As a result, operating income for the
segment increased by JPY0.3 billion.
13
Let me now explain the full-year cash flow.
Cash inflow decreased by JPY55.5 billion YoY to JPY439.7 billion, mainly due to an increase in working capital.
Cash outflow decreased by JPY23.0 billion YoY to JPY588.1 billion, mainly reflecting lower capital expenditures
and other factors.
As a result, adjusted free cash flow excluding business acquisitions was negative JPY142.3 billion.
14
Next, let me explain the impact of U.S. tariff policy.
In Q4, the negative impact was limited to JPY1.9 billion companywide through pricing measures, supply-chain
optimization, and additional cost reductions.
For the full fiscal year, the impact was negative JPY5.8 billion.
That concludes my explanation for FY2025.
15
Let me now explain the forecast for FY2026.
As mentioned earlier, we aim to achieve record highs in revenue, operating income, and net income
attributable to FUJIFILM Holdings.
We will work across each business to mitigate the impact of rising prices, including semiconductor memory
and silver, through pricing measures and other initiatives.
On the other hand, we have not factored in potential increases in raw-material and energy costs related to
the situation in the Middle East.
16
Let me now walk you through the forecast by segment.
For revenue, the Business Innovation segment is expected to remain flat. However, we expect growth in the
Bio CDMO driven by the expansion of new Bio CDMO facilities, as well as continued strength in the
Semiconductor Materials and Imaging. Based on these factors, we are targeting revenue of JPY3,470.0 billion.
For operating income, we have incorporated additional costs associated with the early launch of second-phase
Bio CDMO facilities in the U.S. Even so, the Healthcare segment is expected to offset these costs through
higher gross profit driven by increased sales in the Medical Systems and LS Solutions segments. The Electronics
and Imaging segments are also expected to post profit growth supported by higher sales. In the Business
Innovation segment, structural strengthening expenses are expected to be covered through optimization of
non-core assets and other measures. As a result, we expect higher operating income across all businesses,
reaching JPY365.0 billion.
17
Let me now explain the impact of rising raw-material prices and the situation in the Middle East.
For semiconductor memory, we have already secured most of the required volume for this fiscal year. We will
continue taking timely measures, including pricing actions, to limit the negative impact of recent price
increases. For FY2026, we have incorporated a raw-material cost impact of JPY11.0 billion.
As for energy prices and related raw-material and packaging-material costs associated with the situation in
the Middle East, the outlook remains highly uncertain. Therefore, we have not incorporated these potential
impacts into our forecast.
As a risk scenario, if crude oil remains at USD100 per barrel, the negative impact on earnings would be
approximately JPY3.0 billion to JPY4.0 billion per quarter. At this point, the direct impact on sales in the region
remains limited, and we have not factored it into our forecast.
We will continue to monitor developments closely and take flexible measures as needed, including pricing
actions, cost reductions, and supply-chain adjustments, to minimize the impact on our performance.
18
Let me now turn to ROIC.
For FY2025, ROIC was 5.5%, down 0.4 percentage points YoY. This reflected continued growth investments in
the Healthcare and delay in profitability improvement.
For FY2026, we plan to improve ROIC to 5.6%, up 0.1 percentage points YoY. We will continue growth
investments mainly in the Bio CDMO and Electronics while improving profitability across the Company.
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Finally, let me explain cash allocation for FY2026.
Growth-related capital investment in the Healthcare segment, centered on Bio CDMO, peaked in the FY2024.
For FY2026, we expect investment to decrease by approximately JPY180.0 billion from the previous year.
In FY2026, we plan to continue growth investments of slightly more than JPY400.0 billion, mainly in the
Healthcare and Semiconductor Materials. At the same time, stronger cash generation from the semiconductor
materials and imaging is expected to contribute to positive free cash flow generation for the Company as a
whole.
20
Let me now explain how we implement management that is conscious of cost of capital and stock price.
To further improve PBR, we recognize that enhancing capital efficiency is essential. By improving ROIC across
all businesses, we aim to achieve a ROE of 10% or higher in FY2030.
To support this improvement, we are working not only to strengthen profitability, but also to optimize noncore assets, including potential divestitures, and improve our CCC. In March 2026, we carried out a share
buyback. This reflected the increased visibility of positive free cash flow generation in FY2026, as well as the
recent share-price level relative to our medium- and long-term earnings growth outlook.
We will continue managing the business with a clear focus on capital cost and share price, while further
improving profitability and capital efficiency.
21
Next, let me touch on shareholder returns.
As Mr. Goto mentioned earlier, we plan to pay an annual dividend of JPY70.0 per share for FY2025 and JPY75.0
per share for FY2026.
Going forward, we will continue providing stable and sustainable dividends while targeting a payout ratio of
30%, maintaining a balance between business growth and financial discipline. Regarding a share buyback, we
will continue to evaluate them flexibly, taking into account cash flow, market conditions, and share-price
levels.
That concludes my explanation.
Moderator: That concludes our presentation.
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Question & Answer
Moderator: We will now move on to the Q&A session.
Mr. Shibano from Citigroup Global Markets, please go ahead.
Shibano [Q]: This is Shibano from Citigroup Global Markets.
First, regarding the outlook for Bio CDMO in FY2027, I did not see any guidance shown on the slides this time.
Could you share what you can regarding the outlook?
Also, how are you viewing free cash flow in the new fiscal year plan?
Iida [A]: Let me address your first question regarding the CDMO outlook.
As we explained at the previous earnings presentation and at the business briefing held on February 19, we
presented a waterfall showing the changes from FY2025 results to FY2026. For FY2026, our assumptions
remain broadly unchanged from those explained at that time.
In North Carolina, fixed costs will come ahead of revenue contributions, so EBITDA is expected to improve
compared with FY2025, while operating income after depreciation is expected to decline versus FY2025. That
remains our current assumption.
Higuchi [A]: Net income is expected to increase from this fiscal year. Depreciation will also increase as Bio
CDMO facilities ramp up operations, which will support cash flow generation. As shown in the supplementary
materials, capital expenditures are expected to decrease by approximately JPY180.0 billion from this fiscal
year.
Based on these assumptions, we expect free cash flow to be around JPY90.0 billion to JPY100.0 billion.
Shibano [Q]: So, just to confirm, the CDMO outlook remains unchanged from what you presented in February?
Iida [A]: Yes, that is correct.
Shibano [Q]: My second question is about the share buyback you announced at the end of March and
executed in April, your first in five years. The share price did rise temporarily, but it still remains in the low
JPY3,000 range, which still appears quite low to me.
Given this situation, I would like to ask how you, Mr. Goto, view the current share price level. From a mediumto long-term growth perspective, you have continued making aggressive investments in both Bio CDMO and
Semiconductor Materials. Although profit generation in the Bio CDMO is running about two years behind the
original plan, the overall growth scenario itself does not appear to have changed significantly. Even so, the
market does not seem to be fully recognizing that value. Mr. Goto, could you share your thoughts on the
current share price level?
Goto [A]: We are now in the final year of our current medium-term plan. In VISION2030, which we announced
in April 2024, we stated that we would actively invest in growth areas centered on the Bio CDMO and
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Semiconductor Materials, while maintaining financial discipline and working to improve capital efficiency and
enhance shareholder returns.
This time, we determined that we would be able to reliably secure the cash required for growth investments,
and that visibility on funding had improved. In addition, considering the current share price level, which as
you pointed out remains low relative to our medium- and long-term earnings outlook, we decided to carry
out a share buyback. All repurchased shares will be cancelled.
From a management perspective, we fully recognize that a PBR of around 1x is a very important issue.
However, in my view, this is not something that can be addressed solely through short-term measures. We
believe it requires medium- to long-term improvement in corporate value through enhancing earnings power,
generating sustainable cash flow, and maintaining appropriate capital allocation.
For us, steadily executing our business strategies and improving capital efficiency are essential. We believe
these efforts will ultimately lead to a higher market valuation. As you mentioned, firmly putting the Bio CDMO
on a growth trajectory is the most important point.
Shibano [Q]: My third question. Beginning next fiscal year, you will move into the next medium-term plan
period. Looking at page 33, I see that you are planning additional structural strengthening expenses,
particularly in the Business Innovation. If we view this fiscal year as a preparation phase for the next mediumterm plan, what initiatives do you see as necessary as you move toward the next phase? I would appreciate
hearing your thoughts, Mr. Goto, or those of anyone involved, on how you are approaching this going forward.
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Goto [A]: As we execute our business strategies, we are focused on strengthening the competitiveness of
each business. This includes exiting or separating low-profit businesses and taking various measures to
strengthen the overall portfolio. Steadily carrying out these initiatives is one of our core management
approaches.
In addition, from a management perspective, we continuously review our portfolio from both the acquisition
and divestiture sides. While we do pursue acquisitions, we also divest businesses when appropriate. For
example, we transferred our radioisotope business to PeptiDream and Japan Tissue Engineering to Teijin.
Through these portfolio adjustments, we aim to maintain an optimal business structure and ensure
sustainable growth. That is our consistent approach to portfolio management.
Moderator [M]: Mr. Wakao from JPMorgan Securities, please go ahead.
Wakao [Q]: This is Wakao from JPMorgan.
I would like to ask about Healthcare, specifically your assessment of the quarter that just ended and your
outlook for the current fiscal year. Regarding the Bio CDMO, I believe the explanation provided at the February
briefing remains unchanged, so my questions are mainly about the Medical Systems and LS Solutions.
For the Medical Systems, I would like to understand what assumptions you are making regarding the weakness
in medical consumables that affected performance last fiscal year.
For the LS Solutions, performance over the past three months appeared quite strong. Until recently, demand
recovery for culture media had been relatively slow, but the outlook now seems to be improving. I would
appreciate your thoughts on this point.
Goto [A]: Let me start with the Medical Systems segment. Before discussing X-ray film, I should note that
endoscopes continue to perform very well. Medical IT, including PACS, is also performing strongly. In addition,
IVD (in vitro diagnostics), which includes blood testing and related diagnostic systems, is seeing strong global
demand.
As for film materials, we are being impacted by rising silver prices. With silver prices at around JPY400,000 per
kilogram, the negative impact on the medical consumables business is approximately JPY21.0 billion. To
address this, we have already implemented several price increases.
We also have dry thermal film products that do not use silver. Globally, only Fujifilm and Lucky Film
Corporation in China possess this technology. Agfa also has a similar product, but it still uses silver. By
expanding sales of products that are not directly affected by rising silver prices, we are working to absorb the
impact of higher silver costs.
As a result, after being impacted by film, we believe the Medical Systems business as a whole has moved off
the bottom and is returning to a growth trajectory.
Regarding the LS solutions, as you pointed out, orders for culture media have increased significantly over the
past three months. One factor is additional orders from major customers, and another is progress in new
customer development. Inventory levels in the market had temporarily increased, but those inventories have
now largely cleared following the end of COVID-19 pandemic. This is one reason performance is improving,
and we expect the business to continue moving in a positive direction.
25
Wakao [Q]: My second question is regarding the JPY24.0 billion raw-material impact in the Healthcare shown
on page 33, as well as the JPY6.0 billion in one-time factors for this fiscal year. From Mr. Goto's earlier
explanation, I understood that approximately JPY21.0 billion of the raw-material impact is related to silver
prices. Could you clarify the breakdown?
Higuchi [A]: This is Higuchi.
Yes, JPY21.0 billion is related to silver, while JPY3.0 billion is related to semiconductor memory. Those two
items make up the JPY24.0 billion.
Wakao [Q]: And the JPY6.0 billion refers to the one-time factors?
Higuchi [A]: The JPY6.0 billion includes asset sales and other measures aimed at improving balance sheet
efficiency.
Wakao [Q]: Which part of the Healthcare business are those allocated to?
Higuchi [A]: It is allocated across the Healthcare segment as a whole.
Wakao [Q]: Lastly, just to confirm, depreciation for this fiscal year is JPY210 .0 billion, whereas at the time of
the mid-term plan announcement it was projected at JPY232.0 billion, so it is roughly JPY20.0 billion lower.
What is driving this difference?
Higuchi [A]: The biggest factor is the timing of depreciation related to Bio CDMO facilities. When we prepared
the medium-term plan, we assumed depreciation would begin earlier. In reality, depreciation is being
recognized later than originally assumed.
Wakao [Q]: So, is that mainly because the second-phase facility in Denmark came onstream later than
expected? Or is it unrelated?
Higuchi [A]: Denmark is one factor. In addition, market conditions for small and mid-sized customers have
remained weak, and as a result we have delayed some capital investments. As a result, the timing has differed
from the assumptions we made when preparing the medium-term plan.
Moderator [M]: Mr. Nakanomyo from Jefferies. Please go ahead.
Nakanomyo [Q]: This is Nakanomyo from Jefferies.
My first question is about operating income analysis on page 33. In the Healthcare, the operational positive
impact is JPY8.4 billion. However, for the Bio CDMO, operating income appears likely to deteriorate by around
JPY10.0 billion, or possibly more. Even excluding one-time factors, my impression is that the operational
impact would still be around negative JPY26.0 billion. Please correct me if my understanding is wrong but is it
really possible to absorb that and still achieve a positive JPY8.4 billion overall?
Higuchi [A]: Your understanding of CDMO is generally correct. We expect profit to decline by around JPY10.0
billion, even excluding one-time factors.
On the other hand, as mentioned earlier, we believe the negative impact from Medical Sysyem’s film has now
bottomed out. Endoscopes continue to perform strongly, IVD is also performing well, and we believe we can
absorb the impact of higher silver prices while still achieving profit growth.
26
In addition, demand for culture media in the Life Sciences has become very strong, and we expect profit
growth there as well.
So, while Bio CDMO will continue to face one more year of upfront cost burden, including fixed costs coming
ahead of revenue in North Carolina, we expect positive contributions from the other Healthcare businesses
to more than offset this. As a result, we expect the Healthcare segment as a whole to achieve profit growth.
Nakanomyo [Q]: My second question is about page 20. It states that if the current situation in the Middle East
were to continue through the end of Q1, the negative impact would be JPY3.0 billion to JPY4.0 billion in Q1.
Should we understand that if the situation continues through Q2, another JPY3.0 billion to JPY4.0 billion would
be added, and if it continues throughout the full year, the impact would effectively be about four times that
amount?
Higuchi [A]: In terms of the calculation, that is correct. However, this assumes that we take no
countermeasures, such as pricing actions.
Last year as well, while we did see a gross profit impact from the U.S. tariff policy, we were able to absorb it
through pricing measures. We expect to take similar actions this time.
Nakanomyo [Q]: And the tariff refunds are not included in the current earnings forecast, correct?
Higuchi [A]: Yes. We have already started filing some tariff refund applications, but we have not incorporated
any related impact into the forecast. In addition, depending on the relationship with previous pricing actions,
there may be cases where we pass some of the benefit back to customers. For those reasons, nothing has
been factored in at this stage.
Nakanomyo [Q]: Lastly, regarding the JPY11.0 billion impact from semiconductor memory prices, what
assumptions are behind that figure? Is the assumption that current price levels will continue from Q2 onward?
Higuchi [A]: Yes. The assumption is that current price levels will continue. The calculation includes not only
memory itself, but also equipment using memory, such as PCs and consoles used in medical applications.
Moderator [M]: Mr. Okazaki from Nomura Securities, please go ahead.
Okazaki [Q]: This is Okazaki from Nomura.
As a follow-up to the previous question, I would like to understand the breakdown by segment of the impact
related to semiconductor memory prices and the impact associated with the Middle East situation.
Higuchi [A]: Regarding the JPY11.0 billion impact related to semiconductor memory, the impact on the
Healthcare segment is expected to be JPY3.0 billion, the Business Innovation JPY2.0 billion, and the Imaging
JPY6.0 billion.
Regarding the Middle East-related impact, which is mainly associated with energy and fuel costs, the impact
on the Healthcare is expected to be approximately JPY0.5 billion, the Electronics around JPY1.2 billion to
JPY1.3 billion, the Business Innovation roughly JPY1.5 billion, and the Imaging about JPY0.3 billion.
Okazaki [Q]: My second question is about the Imaging. The segment again performed very strongly in the
January-March quarter, and performance on an operational basis was much stronger than your previous
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assumptions. I do not believe the overall camera market itself is particularly strong, so I would appreciate your
explanation of what is driving this performance.
My impression is that while the full-frame segment appears somewhat weaker, entry-level models and
compact cameras are performing well, which may be benefiting Fujifilm. At the same time, how do you view
the risk of competitors strengthening their presence in this area and intensifying competition?
Yamamoto [A]: This is Yamamoto from the Imaging business.
As you pointed out, the digital camera market remains strong. The ways consumers enjoy photography and
video continue to diversify, and this trend is supporting market expansion.
One of our key strengths has been our long-standing focus on the APS-C (Advanced Photo System type-C)
format, which enables compact and lightweight camera bodies, along with our film simulation technology
that delivers distinctive color reproduction and our lens technology. These strengths differentiate us in the
market, and demand for our products is growing at a pace that exceeds overall market growth. As a result,
our market positioning and presence continue to strengthen.
Regarding your question about competitors potentially pursuing similar strategies, this is not simply a matter
of making products smaller or more compact. What we offer in terms of product design and color
reproduction reflects more than a decade of brand building and product value development. These are
strengths that cannot easily be replicated in a short period of time. We also place significant emphasis on
communication with users. We host many events and create numerous customer touchpoints, and I also
regularly visit overseas markets myself. We believe we are providing experiential value to our customers.
For these reasons, we believe we can continue strengthening our unique positioning as the market expands
and demand for premium products continues to grow.
Okazaki [Q]: My third question is about the Semiconductor Materials. The January-March quarter was
extremely strong and given the solid demand for AI semiconductors and memory, it did not appear to be a
temporary spike. However, the outlook for the new fiscal year seems conservative compared with the level
achieved in Q4. Could you explain what risks or assumptions are reflected in the forecast?
Iwasaki [A]: This is Iwasaki, responsible for the Semiconductor Materials.
In FY2025, earnings increased by 18% YoY for the full year, while Q4 alone increased by 29% YoY, so
performance was very strong.
The environment has been highly favorable for us technologically. In logic semiconductors, miniaturization
continues to advance, while in memory we are seeing increasing planarization requirements, both of which
are strong tailwinds for our business. In Q4 specifically, there was some temporary demand from China, but
we also saw a fairly strong recovery in advanced-logic demand in Korea and the U.S. So overall, Q4 was a very
favorable quarter for us.
We believe this environment has continued into the current fiscal year as well. Even so, our forecast is
intentionally somewhat conservative. As in the previous year, we generally base our assumptions on wafer
shipment area forecasts published by SEMI, which currently indicate around 5% YoY growth from FY2025 to
FY2026. That serves as the baseline for our sales assumptions.
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Within that framework, we do not view the current strong demand trend as temporary at all. We expect
demand to remain very strong in H1. For H2, while we are not assuming any major deterioration, we are taking
a fairly cautious approach in our assumptions. That is why our outlook for FY2026 may appear somewhat
conservative.
Moderator [M]: Ms. Yoshihara from UBS Securities, please go ahead.
Yoshihara [Q]: This is Yoshihara from UBS Securities.
Looking at the operating income analysis for FY2026 on page 33, you already addressed the Healthcare
segment earlier, but the item labeled "optimization of non-core assets" appears across all segments and
seems to total roughly JPY20.0 billion. Should we think of this primarily as gains related to non-core asset
sales?
Also, if possible, could you comment on the timing, specifically whether these effects are expected to be
recognized in H1 or H2?
Higuchi [A]: This is Higuchi.
We have several approaches under consideration regarding the optimization of non-core assets, and we are
currently reviewing how best to optimize the balance sheet. The specific items are still under review, but in
terms of timing, we expect most of the impact to be recognized in H2, particularly in Q3 and Q4. Only a limited
portion is expected to be recognized in H1.
Yoshihara [Q]: My second question is about the Semiconductor Materials. The segment has been extremely
strong, and as discussed earlier, the profit margin improved significantly in H2 of FY2025. Is it correct to
understand that this improvement has been driven mainly by strength in CMP slurry and advanced packaging
applications?
And if this environment continues over the next six months, should we assume that both revenue and
profitability can remain at elevated levels for some time?
Iwasaki [A]: This is Iwasaki, responsible for the Semiconductor Materials.
To answer directly, your understanding is essentially correct.
We have strong growth drivers in both front-end and back-end semiconductor processes, but on the frontend side, CMP slurry has been particularly strong. In fact, within the CMP slurry category, we believe we likely
achieved the leading market share in FY2025. On the back-end side, polyimide is increasingly being adopted
for interposers and certain build-up applications, and demand in those areas has also grown significantly.
Given these factors, we do not expect the current trend to weaken over the next six months.
Yoshihara [Q]: My final question is about Bio CDMO. I understand it may not be appropriate to comment on
individual companies, but regarding Daiichi Sankyo, there have been reports that parts of its ADC strategy
were reviewed, and from the outside the impact appeared somewhat larger than the market had expected.
Of course, I do not think the situation at a single company changes the overall market, but it does seem
possible that some programs previously viewed positively may now face greater uncertainty. You are also
building a new ADC facility in Toyama Prefecture.
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Since your February disclosure, have there been any changes in your assumptions?
Iida [A]: This is Iida, responsible for the Bio CDMO.
I would prefer not to comment on individual companies.
Regarding ADC, there has been no change from what we explained in February. If anything, inquiries from
customers in Japan and across Asia have been increasing. As you know, ADCs involve extremely complex
supply chains. Because of that complexity, many customers are looking to simplify their supply chains. Our
Toyama site, as part of the Fujifilm group, can provide integrated support across the entire process, from
linker and payload through to drug product manufacturing. This capability has been very well received by
customers and has led to an increase in inquiries. Our ADC strategy remains unchanged, and we continue to
move forward in line with our original direction.
Moderator [M]: Mr. Shimamoto from Okasan Securities, please go ahead.
Shimamoto [Q]: This is Shimamoto from Okasan Securities.
I would like to ask about the Business Innovation. The external environment appears extremely challenging,
with rising DRAM prices and the impact of the Middle East situation adding further cost pressure. Given this
backdrop, could you explain how the Company views the potential for industry consolidation or broader
industry partnerships going forward? I would also like to ask whether your sense of urgency regarding the
need for additional actions has changed in any way.
Hama [A]: This is Hama, responsible for the Business Innovation.
It is true that the business environment remains challenging. Demand has been soft, and material costs have
increased. We are addressing these issues through appropriate pricing measures and ongoing cost reductions,
and we believe we are managing the situation appropriately.
Regarding industry consolidation, the office equipment industry is clearly entering a mature phase. As a result,
we believe that partnerships among competitors and broader industry restructuring are likely to continue,
and our view on this has not changed.
At the same time, we are strengthening our business structure so that we can maintain competitiveness as a
standalone business. We are steadily implementing structural reforms planned for FY2026 to strengthen our
independent operating capabilities. We also continue to collaborate with Konica Minolta, and there has been
no change in that relationship.
If new developments arise in the future, we will respond appropriately. At this stage, nothing specific has been
decided, but we believe industry restructuring and collaboration will continue going forward.
Shimamoto [Q]: My second question is about the earnings pattern between the halves. Based on your
explanations so far, it seems that gains related to non-core asset optimization are expected mainly in H2, and
as a result operating profit may be weighted more toward H2 than H1. Is that the correct understanding?
Higuchi [A]: That's correct. Structural strengthening costs will begin to be recorded in H1, while the related
benefits are expected to emerge mainly in H2. In addition, most of the balance-sheet optimization effects are
also expected to be recognized in H2. For these reasons, we expect earnings to be weighted more toward H2
this fiscal year compared with the usual seasonal pattern.
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Moderator [M]: Mr. Tokumoto from SMBC Nikko Securities, please go ahead.
Tokumoto [Q]: This is Tokumoto from SMBC Nikko Securities.
As this is the final year of your current medium-term plan, it seems clear that you are strongly committed to
achieving its profitability targets despite rising material prices and other cost pressures.
My first question relates to the company-wide impact. Earlier, you mentioned a negative impact of JPY11.0
billion from semiconductor memory and JPY25.0 billion from silver prices. My understanding is that these
figures already reflect your pricing measures and sourcing alternatives. If possible, could you give us a sense
of how much of the impact is expected to be offset by those measures?
Higuchi [A]: As shown on this slide, the direct impact from silver and semiconductor memory totals JPY36.0
billion.
Against that, we expect to offset approximately JPY31.0 billion through operational measures. This includes
not only pricing actions but also sales growth. It is difficult to quantify exactly how much of the raw-material
impact is being offset specifically through pricing measures alone.
However, as indicated on the slide, when we face this kind of raw-material pressure, we generally implement
a range of operational measures to absorb a substantial portion of the impact.
Tokumoto [Q]: My second question is about the Medical Systems. In particular, endoscopes performed very
strongly in the January-March quarter, and both the ELUXEO 8000 and the EG-840T appear to be doing well.
I also understand that a new endoscope may be launched in June.
Based on the strong growth achieved last year, what level of growth are you assuming for this fiscal year?
And if there are any regional differences in your outlook, could you comment on those as well?
Goto [A]: In our endoscopy business, we continue to see strong growth globally, excluding China, and we are
continuing to achieve double-digit growth overall. In terms of market share, a major competitor remains very
strong, but we now hold around 30% share in Japan, and there are already countries where our share has
surpassed theirs.
In addition, we are focusing on gaining share in the U.S., which is the largest endoscopy market in the world.
The launch of new products, particularly the EG-840TP therapeutic upper GI scope, has been very successful.
This product has enabled us to penetrate major hospitals that had not previously adopted our systems, and
we are now seeing new account wins at those institutions.
Higuchi [A]: For next fiscal year, we expect the strongest growth in the U.S., followed by Europe, and then
Japan. As Goto mentioned earlier, we expect growth to continue in a relatively well-balanced manner across
regions.
Moderator [M]: Ms. Yamazaki from Morgan Stanley MUFG Securities, please go ahead.
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Yamazaki [Q]: This is Yamazaki from Morgan Stanley MUFG Securities.
I have one question regarding the Bio CDMO business, specifically performance in FY2025 and the outlook for
FY2026. Looking at page 31 of the presentation materials, EBITDA margin in the small- and mid-scale facilities
for the fiscal year ended March 2026 appears to have deteriorated somewhat compared with the mid-singledigit negative margin indicated at the Q3 results briefing three months ago. Could you explain what caused
this change?
You also mentioned earlier that the outlook for this fiscal year remains unchanged. If there are any updates
regarding initiatives to improve profitability in the small- and mid-scale facilities, I would appreciate it if you
could share them.
Iida [A]: This is Iida, responsible for the Bio CDMO.
The overall structure of the small-, mid-, and large-scale facilities remains unchanged from what we explained
previously. The slight fluctuation in the small- and mid-scale business was mainly due to timing mismatches
in planned batch production, which affected operations temporarily.
For this fiscal year, there has been no change from the outlook we presented in February. Regarding
profitability improvement in the small- and mid-scale facilities, in the antibody area we currently have some
temporary unused capacity due to project cancellations, but new programs are steadily coming in. Capacity
utilization is unlikely to be fully recovered in H1, but we expect utilization to improve toward H2 as these
programs ramp up.
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In CGT (Cell and Gene Therapy), particularly in the VGT (Viral Gene Therapy) area, which has been weighing
on profitability, we are receiving orders mainly at our Texas site, including projects from major pharmaceutical
companies. Some programs are beginning to move into late-stage and commercial production, and we expect
utilization to improve accordingly.
In addition, structural reform measures implemented last fiscal year to optimize small- and mid-scale capacity
are also expected to contribute. Taking all these factors together, we expect profitability in the small- and
mid-scale business to improve in FY2025.
Moderator [M]: This concludes today's Q&A session and brings the FUJIFILM Holdings earnings presentation
to a close. 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, or [A] provides an answer
from the Company.
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