Fujifilm data monitor

COMPANY PROFILE

FUJIFILM HoldingsCorporation

REFERENCE CODE: 97964757-DE3E-4BCE-BFED-23DACD7688F3PUBLICATION DATE: 17 May 2012www.marketline.comCOPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED.

TABLE OF CONTENTS

Company Overview..............................................................................................3

Key Facts...............................................................................................................3

Business Description...........................................................................................4

History...................................................................................................................5

Key Employees...................................................................................................10

Key Employee Biographies................................................................................11

Major Products and Services............................................................................15

Revenue Analysis...............................................................................................16

SWOT Analysis...................................................................................................17

Top Competitors.................................................................................................23

Company View.....................................................................................................24

Locations and Subsidiaries...............................................................................27

FUJIFILM Holdings Corporation Page 2© MarketLine

FUJIFILM Holdings CorporationTABLE OF CONTENTS

COMPANY OVERVIEW

FUJIFILM Holdings Corporation (FUJIFILM or 'the company'), formerly known as Fuji Photo Film,is a Japan-based company mainly engaged in providing imaging, information and document solutions.The company operates in Asia. It is headquartered in Tokyo, Japan and employs about 78,862people.

The company recorded revenues of JPY2,217,084 million ($25,939.9 million) during the financialyear ended March 2011 (FY2011), an increase of 1.6% over FY2010. The operating profit of thecompany was JPY136,356 million ($1,595.4 million) in FY2011, as compared to an operating lossof JPY42,112 million ($492.7 million) in FY2010.The net profit was JPY63,852 million ($747.1 million)in FY2011, as compared to a net loss of JPY38,441 million ($449.8 million) in FY2010.

KEY FACTS

FUJIFILM Holdings CorporationHead Office7-3 Akasaka 9-ChomeMinato-kuTokyo 107-0052JPN

81 3 6271 1111Phone

Fax

http://www.fujifilmholdings.comWeb Address

2,217,084.0Revenue / turnover(JPY Mn)

MarchFinancial Year End

78,862Employees

4901Tokyo Ticker


FUJIFILM Holdings CorporationCompany Overview

BUSINESS DESCRIPTION

FUJIFILM Holdings (FUJIFILM or 'the company') is one of the world's largest imaging and photographicequipment producers. It also operates in various other business fields, such as medical imagingsystems, graphic arts systems, flat panel display materials, recording media and office equipment.The company operates across the globe through its subsidiaries and other affiliated companies thatundertake research and development, manufacturing and service activities.

The company operates through three reportable business segments: document solutions, informationsolutions and imaging solutions.

The document solutions segment develops, manufactures, markets and services office copymachines/multifunction devices, printers, production systems and services, office services, paper,consumables and other related products primarily for commercial enterprises.The segment includesFuji Xerox, a subsidiary in which FUJIFILM holds about 75% interest. The segment offers both,original equipment manufacturers services and Fuji Xerox banded products in Japan.

The information solutions segment offers equipment and materials for medical systems and lifesciences, pharmaceuticals, equipment and materials for graphic arts, flat panel display materials,recording media, optical devices, electronic materials, inkjet materials and related products, primarilyfor commercial enterprises.

The imaging solutions segment manufactures, develops, markets and services color films, digitalcameras, photofinishing equipment, color paper, chemicals and related products, primarily forindividual consumers.


FUJIFILM Holdings CorporationBusiness Description

HISTORY

Fuji was established in 1934 with the aim of manufacturing photo film for the domestic market inJapan. In the same year, the company began its operations at the Ashigara Factory and subsequentlyentered into photographic film, printing paper, dryplate, and other photographic sensitive materialmarkets. With the construction of the Odawara Factory, in 1938, the company advanced into photosensitive materials such as caustic silver, dyes and other chemical products.

The company acquired Enomoto Kogaku Seiki Manufacturing in 1944, and changed its name to FujiPhoto Optical. In 1946, the company established the Natural Color Photography (currently FujicolorImaging Service a subsidiary).

Fuji entered into a joint venture with Rank Xerox to form Fuji Xerox Company in 1962.The companycompleted the construction of the Fujinomiya Factory in 1963, to manufacture printing baryta paper.Fuji established Fujicolor Trading and Fuji Photo Film USA in 1965. In the following year, the companyexpanded its operations in Europe by establishing Fuji Photo Film (Europe) in Germany.The companyconstructed its Yoshida-Minami Factory in 1973, to manufacture offset printing materials such asPS aluminum plates. In 1982, the company established Fuji Photo Film in Holland and Fuji Magneticsin Germany in 1987.

The company established Fuji Ohoto Film in South Carolina, US, in 1988 and Fujifilm Microdevicesand FUJIX (currently Fujifilm Photonix) in 1990. Fuji purchased a 51% stake in Chiyoda Medical in1993 and entered into medical equipment manufacturing.

Fuji established Fujifilm Imaging Systems in Jiangsu, in 1995.The company established Hong KongFuji Photo Logistics in Hong Kong and Fujifilm Electronics Imaging in the UK in 1996. At the end of1997, the company acquired Eurocolor Photofinishing in Germany.

In 2001, the company purchased an additional 25% stake in Fuji Xerox, increasing its stake to 75%and the company established Enovation Graphic Systems in the US at the end of 2001. Fuji tookover Jusphoto in 2002.

The company acquired Process Shizai in 2003 and renamed it as Fujifilm Graphic Systems. Fujientered into a collaboration agreement with Sysmex, for the Fuji Dri-Chem System (dry-chemistrytesting system) in China, in 2004. In the same year, the company entered into an agreement withEastman Kodak Company and Konica Minolta Photo Imaging to jointly develop a set of open standards'Picture Archiving and Sharing Standard', to enable digital file compatibility with future playbackdevices.

In early 2005, the company acquired UK-based ink manufacturer Serical Group, a leading player inthe production of inks for screen printing and wide format digital industrial inkjets. The companyestablished Fuji Photo Film Printing Plate in Suzhou, China in the same year. During the later part


FUJIFILM Holdings CorporationHistory

of 2005, Fuji purchased 50% stake in the US based Planar Solutions and entered into semiconductorslurry business.

The company acquired TSR Holding, a French medical equipment service and maintenance firm,in 2006. Subsequently, FUJIFILM, Konica Minolta Photo Imaging and Eastman Kodak introducedthe EVERPLAY standard, which ensured compatibility of digital photos and motion images withconsumer electronic products, like computers. Also in 2006, the company purchased a 22% equitystake in Perseus Proteomics, a Tokyo-based biopharmaceutical venture firm, and entered intoantibody-based therapeutics. Later in the year, it constructed two new liquid crystal displays (LCD)manufacturing facilities in Japan, and acquired Dimatix, a US-based manufacturer of industrial inkjetprint heads.

During the same year, it concluded an agreement with a major Chinese home appliance and electroniccomponents company SVA Electron and established a joint venture company called SVA-FujifilmOpto-Electronic Materials to manufacture color filters for TFT LCDs in Shanghai, China. Subsequently,FUJIFILM Corporation took over the business operations of the former Fuji Photo Film Companyunder the FUJIFILM Group holding company, FUJIFILM Holdings (FUJIFILM). In the same year,the company acquired equipment and consumables sales and technical support divisions of thegraphic arts systems distributor, Graphic Systems Australasia.

In 2007, FUJIFILM entered the industrial inkjet printer market. The company's subsidiary FujinonCorporation formed a strategic co-operation agreement with Given Imaging in sale, parts supply andresearch and development in the field of gastroenterological endoscope during the same year.FUJIFILM entered into joint development agreement with the US-based Cangen to developrevolutionary anti-cancer Drug Delivery System in 2007. In the same year, the company announcedits plans to establish FUJIFILM Business Expert as a shared services company to improve theefficiency of consolidated group management, enhance operational quality and to develop specializedhuman resources.

Later that year, FUJIFILM and Mitsubishi Paper Mills entered into a basic agreement to establishpartnership in the photographic business. In the same year, FUJIFILM was fined by EuropeanCommission (EU) for on-site investigation initiated by EU in 2002 on suspicion of violating EUcompetition law in relation to the professional Betacam videotape market in Europe.

In 2008, FUJIFILM acquired 100% of the stocks of IP Labs, a German photo service software provider,through its European subsidiary FUJIFILM Europe. In the same year, FUJIFILM announced a decisionto establish FUJIFILM India, an overseas subsidiary in India, to further expand the company'sbusiness in the market. Subsequently, FUJIFILM, Taisho Pharmaceutical and Toyama Chemicalconcluded a basic agreement to enter into a strategic capital and business alliance aimed atstrengthening the Pharmaceutical Business of Toyama Chemical, by subscribing to a third partyallocation of new shares. It also announced, in 2008, to invest JPY6.5 billion ($0.07 billion) to constructa new WV Film factory within FUJIFILM Opto Materials as a means to accelerate the response togrowing global LCD demand.



In the same year, Fuji Xerox unveiled the new corporate identity (logo) as a symbol of customer-centricapproach to address customers' business issues.The company made a full-scale entry into China'smedical IT system market by acquiring shares of the China's medical IT system company, TianjianMedi Tech, in 2008. Later that year, FUJIFILM acquired, through its US sales subsidiary, FUJIFILMMedical Systems USA, all issued shares of the US manufacturer of radiology information systems,Empiric Systems.

In 2009, FUJIFILM, through its European local corporation, FUJIFILM Europe, acquired all sharesin FUJIFILM-RU, a Russian independent distributor of its medical and imaging products fromMarubeni. In the same year, the company developed a new transparent conductive film, EXCLEAR,for use in displays and touch-panels. In 2009, FUJIFILM entered into a strategic alliance agreementwith GE Healthcare, a unit of General Electric. Under the terms of agreement, FUJIFILM woulddevelop, manufacture and supply advanced biomolecular imaging systems to GE Healthcare. Thecompany established Fujifilm Drug Discovery Research Laboratories in Kaisei Town, KanagawaPrefecture, to further develop its pharmaceuticals business, in 2009.

In 2010, FUJIFILM established FUJIFILM Pharma, to further enhance its focus in the field of clinicaldevelopment and sales of pharmaceutical products. In the same year, Toyama Chemical, a subsidiaryof FUJIFILM, started the Phase 2 clinical trial of novel anti-influenza drug T-705 in the US. Thecompany acquired 100% stake in NDT Comercial, Brazil-based medical product sales agency, in2010.Through this acquisition, Fujifilm established a direct-sales mechanism for its medical productsin Brazil. In the same month, the company announced the absorption of its wholly-owned subsidiary,Fujinon.

In 2010, the company signed a five-year joint research and development agreement onendoscopy-related products with Fox Chase Cancer Center. In the same year, Perseus Proteomicsand FUJIFILM RI Pharma, FUJIFILM group companies, presented their development of a newradiolabeled antibody for treating lung cancer. Also, Fuji Xerox established Fuji Xerox Vietnam, asales company, to provide high value-added products and solutions. Subsequently, FUJIFILMintroduced 'FUJIFILM 3D Print System', which offers an instant printout of high-quality and natural3D photographs.

The company announced its plan to build three additional production lines at the Ashigara Site ofits Kanagawa Factory as well as at FUJIFILM Kyushu, in 2010. In the same year, Fuji Xerox Australiaacquired Upstream Print Solutions, Australia's largest independent managed print services provider.Also, the company entered into a capital partnership with Japan Tissue Engineering. Under theagreement, FUJIFILM is expected to have 41% equity in the company. Subsequently, FUJIFILMintroduced the ASTALIFT series of skincare products to the Chinese market.

During 2010, the company announced the development of the new FinePix X100, a high-gradedigital compact camera featuring an APS-C CMOS sensor. In the same year, FUJIFILM establishedFUJIFILM Middle East FZE, its local subsidiary in Dubai, UAE, to accelerate business expansion inthe Middle East and African markets. At the end of 2010, the company through its semiconductormaterial manufacturing and marketing subsidiary FUJIFILM Electronic Materials, acquired 50%membership interests in dedicated CMP slurry manufacturer Planar Solutions.



The company announced to manufacture 5TB Tape Cartridge for Oracle's StorageTek T10000CDrive, in February 2011. In the same month, FUJIFILM released the new FinePix X100, a high-gradedigital camera featuring an APS-C CMOS sensor (12.3 megapixel), a Fujinon 23mm fixed focallength F2 lens and a newly developed Hybrid Viewfinder. Also, FUJIFILM entered into a definitiveagreement with Merck, to acquire Merck BioManufacturing Network, a leading provider of contractmanufacturing and development services for the biopharmaceutical industry. In February 2011, FujiXerox announced to establish a new company, Fuji Xerox Service Creative, to realign and consolidatesales administration and call center functions.

In March 2011, the company acquired 100% equity in Turkey's sales agency for endoscopy products,FILMED TIBBI CIHAZLAR PAZARLAMA VE TICARET, through its European subsidiary FUJIFILMEurope. In the same month, FUJIFILM won patent infringement case in the US Court of Appealsbrought by St. Clair Intellectual Property Consultants. In the following month, the company beganoperations of its new plant for 'Ultra-wide FUJITAC' in the Ashigara Site of its Kanagawa Factory.In May 2011, Fuji Xerox announced to release DocuPrint P300 d, an A4 monochrome laser printer.

FUJIFILM announced to invest JPY16 billion ($0.2 billion) in its main production base for flat paneldisplay materials, FUJIFILM Kyushu, to set up a new production line for 'Ultra-wide FUJITAC', inJune 2011. In the same month, the company entered into a partnership with Mitsubishi, in the contractmanufacturing for biopharmaceuticals. The following month, Fuji Xerox developed a full-color inkjetprinting system, 2800 Inkjet Color Continuous Feed Printing System. In July 2011, FUJIFILM signeda Memorandum of Understanding with Dr. Reddy's Laboratories, to enter into an exclusive partnershipin the generic drugs business for the Japanese market and to establish a joint venture in Japan.

In September 2011, FUJIFILM established a subsidiary FUJIFILM MEDICAL SYSTEMS VIETNAM,to further expand its medical business in Vietnam. In the same month, the company establishedFUJIFILM UKRAINE, a local subsidiary in Ukraine, to expand its digital camera business in Ukraine.In October 2011, the company established subsidiaries in South Korea and Indonesia, to expandthe digital camera business in Asia.

During November 2011, FUJIFILM and Kyowa Hakko Kirin signed an agreement to establish a jointventure in the spring of 2012 to develop highly reliable, high-quality and competitive products in thefast-growing biosimilars market. In the same month, FUJIFILM Electronic Materials, a subsidiary ofFUJIFILM established a semiconductor material manufacturing company in South Korea to expandthe sales of electronic materials in South Korea's semiconductor market. At the end of 2011, thecompany established a new CTP plate production line incorporating cutting edge technology andenergy saving facilities, to address the growing demand of CTP plates for offset printing.

In March 2012, the company completed the acquisition of SonoSite, a pioneer and leader in bedsideand point-of-care ultrasound technology. This acquisition accelerates Fujifilm's entry into thefast-growing hand-carried ultrasound equipment market and positions ultrasonography as a strategicpillar for the future growth of its medical systems business. In the same month, Fuji Xerox establishedregional headquarters over six areas in Japan to reinforce its community-based sales force. In thefollowing month, FUJIFILM announced plans to establish a direct selling system and launch sales



operations in to be managed by the subsidiary FUJIFILM VIETNAM, to accelerate the expansion ofits digital camera business in the fast-growing Vietnam market.

During May 2012, FUJIFILM established FUJIFILM South Africa and a representative office inCasablanca, Morocco to accelerate business expansion in the fast-growing African region.



KEY EMPLOYEES

BoardJob TitleName

Executive BoardPresident and Chief Executive Officer,Representative Director

Shigetaka Komori

Executive BoardExecutive Vice President and RepresentativeDirector

Shigehiro Nakajima

Executive BoardCorporate Vice President and DirectorToru Takahashi

Executive BoardCorporate Vice President and DirectorToshiaki Suzuki

Executive BoardCorporate Vice President and DirectorNobuaki Inoue

Executive BoardCorporate Vice President and DirectorKouichi Tamai

Non Executive BoardDirectorToshio Takahashi

Non Executive BoardDirectorYuzo Toda

Non Executive BoardDirectorTadahito Yamamoto

Non Executive BoardDirectorTakeshi Higuchi

Non Executive BoardDirectorKeiji Mihayashi

Non Executive BoardDirectorTeisuke Kitayama

Senior ManagementCorporate Vice PresidentHaruhiko Yoshida

Senior ManagementCorporate Vice PresidentNobuyuki Watabe

Senior ManagementCorporate Vice PresidentMakio Watanabe

Senior ManagementCorporate Vice PresidentKouichi Suematsu

Senior ManagementCorporate Vice PresidentKazuhiko Furuya

Senior ManagementCorporate Vice PresidentKazuhito Yamamura


FUJIFILM Holdings CorporationKey Employees

KEY EMPLOYEE BIOGRAPHIES

Shigetaka Komori

Board: Executive BoardJob Title: President and Chief Executive Officer, Representative DirectorSince: 2006

Mr. Shigetaka has been the President, Chief Executive Officer and Representative Director atFUJIFILM since 2006. He has also been the President, Representative Director and Chief ExecutiveOfficer at Fuji Photo Film since 2003. Mr. Shigetaka joined Fuji Photo Film in 1963 and was appointeda Director in 1995. He also served as the Director and Managing Director at Fuji Photo Film (Europe)in 1996.

Shigehiro Nakajima

Board: Executive BoardJob Title: Executive Vice President and Representative DirectorSince: 2011

Mr. Shigehiro has been the Executive Vice President and Representative Director at FUJIFILM since2011. He joined Fuji Photo Film Company in 1973 and was appointed Corporate Vice President andPresident at Fuji Photo Film B.V. in 2005. Mr. Shigehiro also served as the Director, Senior VicePresident and General Manager of the Emerging Countries Business Development Office at FUJIFILM.

Toru Takahashi

Board: Executive BoardJob Title: Corporate Vice President and Director

Mr. Toru serves as the Corporate Vice President at FUJIFILM. He also serves as a Director of thecompany since 2010. Mr.Toru joined Fuji Photo Film Company in 1975 and was appointed CorporateVice President and General Manager of the Recording Media Products Division at FUJIFILM in2007. He also served as the Director, Corporate Vice President and General Manager of the CorporatePlanning Headquarters at the company in 2008.

Toshiaki Suzuki

Board: Executive BoardJob Title: Corporate Vice President and DirectorSince: 2011


FUJIFILM Holdings CorporationKey Employee Biographies

Mr.Toshiaki has been the Corporate Vice President and Director at FUJIFILM since 2011. He joinedFuji Photo Film Company in 1974 and was appointed Corporate Vice President and General Managerof the Medical Systems Research & Development Center in 2006. Mr. Toshiaki is also the Director,Corporate Vice President and General Manager of the Intellectual Property Division at FUJIFILM.

Nobuaki Inoue


Mr. Nobuaki serves as the Corporate Vice President at FUJIFILM. He also serves as a Director ofthe company since 2009. Mr. Nobuaki joined Fuji Photo Film Company in 1974 and was appointedCorporate Vice President and General Manager of the Graphic Systems Business Division in 2006.He was the Director, Corporate Vice President and General Manager of the Graphic SystemsBusiness Division and General Manager of the Advanced Marking Business Division at FUJIFILM2008.

Kouichi Tamai


Mr.Tamai is the Corporate Vice President at FUJIFILM. He also serves as a Director of the companysince 2010. Mr. Tamai joined Fuji Photo Film Company in 2003 and was appointed Fellow in 2005.He was the Corporate Vice President and Deputy General Manager of the Corporate PlanningHeadquarters in 2006. Mr. Tamai also served as the Director, Corporate Vice President and DeputyGeneral Manager of the Production Engineering and Development Center at FUJIFILM 2008.

Toshio Takahashi

Board: Non Executive BoardJob Title: DirectorSince: 2011

Mr. Toshio has been a Director at FUJIFILM since 2011. He joined Fuji Photo Film Co. in 1965, andwas appointed Corporate Vice President and General Manager of the Graphic Arts Systems Divisionin 2000. Mr. Toshio also served as the Director, Senior Vice President and General Manager of theCorporate Planning Division at the company in 2003. He was the Representative Director, ExecutiveVice President and Chief Financial Officer at Fuji Photo Film Company, and Representative Director,Executive Vice President and Chief Financial Officer at FUJIFILM.

Yuzo Toda




Mr.Yuzo has been a Director at FUJIFILM since 2009. He joined Fuji Photo Film Company in 1973and was appointed Corporate Vice President and General Manager of the Life Science ResearchLaboratories in 2004. Mr.Yuzo also served as the Director, Corporate Vice President and GeneralManager of the Life Science Products Division at the company in 2006.

Tadahito Yamamoto


Mr.Yamamoto has been a Director at FUJIFILM since 2007. He joined Fuji Xerox Company in 1968and has been a Director since 1994. Mr.Yamamoto held several positions at the company includingSenior Vice President and Director in 1996, Executive Vice President and Representative Directorin 2002, and the President and Representative Director in 2007.

Takeshi Higuchi


Mr. Takeshi has been a Director at FUJIFILM since 2010. He joined Fuji Photo Optical Co. in 1967and was appointed President and Representative Director at FUJINON in 2000. Mr. Takeshi alsoserved as the Corporate Vice President and General Manager of the Optical Device Business Divisionat Fuji Photo Film Company in 2005. He was the Director, Senior Vice President and GeneralManager of the Electronic Imaging Products Division at FUJIFILM in 2008.

Keiji Mihayashi


Mr. Keiji has been a Director at FUJIFILM since 2011. He joined Fuji Photo Film Company in 1978and was appointed Corporate Vice President and General Manager of the Flat Panel Display MaterialsResearch Laboratories at FUJIFILM in 2009. Mr. Keiji is also the Director, Corporate Vice Presidentand General Manager of the Flat Panel Display Materials Division.



Teisuke Kitayama


Mr. Kitayama has been a Director at FUJIFILM since 2006. He joined Mitsui Bank in 1969. Mr.Kitayama was the President and Representative Director at Sumitomo Mitsui Financial Group, andthe Chairman of the Board and Representative Director at Sumitomo Mitsui Banking in 2005. Currently,he serves as the Chairman of the Board at Sumitomo Mitsui Banking.



MAJOR PRODUCTS AND SERVICES

FUJIFILM Holdings (FUJIFILM or 'the company'), formerly known as Fuji Photo Film, is a Japan-based company mainly engaged in providing imaging, information and document solutions.The company's key products and services include the following:

Document solutions:

Office copy machines/multifunction devices Printers Production systems and services Paper Consumables Office services

Imaging solutions:

Color films and others Digital cameras Color paper and chemicals Photofinishing equipment

Information solutions:

Medical systems/life sciences Graphic arts Flat panel display materials Recording media Optical devices Electronic materials Inkjet materials


FUJIFILM Holdings CorporationMajor Products and Services

REVENUE ANALYSIS

FUJIFILM Holdings Corporation

FUJIFILM recorded revenues of JPY2,217,084 million ($25,939.9 million) during FY2011, an increaseof 1.6% over FY2010. In FY2011, Japan, the company's largest geographic market, accounted for46.7% of the total revenues.

The company generates revenues through three business segments: document solutions (43.9%of the total revenues during FY2011), information solutions (41.4%) and imaging solutions (14.7%).

Revenues by segment

In FY2011, the document solutions division recorded revenues of JPY973,889 million ($11,394.5million), an increase of 4.1% over FY2010.

The information solutions division recorded revenues of JPY917,391 million ($10,733.5 million) inFY2011, an increase of 1.8% over FY2010.

The imaging solutions division recorded revenues of JPY325,804 million ($3,811.9 million) in FY2011,a decrease of 5.7% over FY2010.

Revenues by geography

Japan, FUJIFILM 's largest geographical market, accounted for 46.7% of the total revenues inFY2011. Revenues from Japan reached JPY1,034,806 million ($12,107.2 million) in FY2011, adecrease of 2.3% over FY2010.

Asia and others accounted for 25% of the total revenues in FY2011. Revenues from Asia and othersreached JPY553,522 million ($6,476.2 million) in FY2011, an increase of 10.8% over FY2010.

The Americas accounted for 16.6% of the total revenues in FY2011. Revenues from The Americasreached JPY368,213 million ($4,308.1 million) in FY2011, an increase of 4% over FY2010.

Europe accounted for 11.8% of the total revenues in FY2011. Revenues from Europe reachedJPY260,543 million ($3,048.4 million) in FY2011, a decrease of 3% over FY2010.


FUJIFILM Holdings CorporationRevenue Analysis

SWOT ANALYSIS

FUJIFILM Holdings Corporation (FUJIFILM or 'the company'), formerly known as Fuji Photo Film,is a Japan-based company mainly engaged in providing imaging, information and document solutions.The company has a wide product portfolio which enables it to cater to needs of multiple individualas well as enterprise customers and also broadens its market coverage, which in turn helps in thetopline growth of the company. However, intense competition may erode the company's marketshare and reduce its profitability.

WeaknessesStrengths

Relatively weak brand imageWide product portfolioUnfunded employee post retirement benefitsFocus on research and development

Strong presence in core markets

ThreatsOpportunities

Intense competitionStrategic initiatives to expand geographicpresence Wide adoption of alternative technologiesAcquisition of SonoSite Exchange rate fluctuations may affect the

financial resultsGrowing Asia-Pacific office services andsupplies market

Strengths

Wide product portfolio

FUJIFILM has a wide product portfolio.The company operates in the field of medical imaging systems,graphic arts systems, flat panel display materials, recording media and office equipment.The companymanufactures and sells a wide range of products under its document solutions, information solutionsand imaging solutions segments.

In the document solutions segment, the company offers office copy machines/multifunction devices,printers, production systems and services, paper, consumables, office services and other relatedproducts. Its information solutions segment offers equipment and materials for medical systems andlife sciences, equipment and materials for graphic arts, flat panel display materials, recording media,optical devices, electronic materials, inkjet materials and related products. Furthermore, the imagingsolutions segment offers color films, digital cameras, photofinishing equipment, color paper, chemicalsand related products.


FUJIFILM Holdings CorporationSWOT Analysis

A wide product portfolio enables FUJIFILM to cater to needs of multiple individual as well as enterprisecustomers and also broadens its market coverage, which in turn helps in the topline growth of thecompany.

Focus on research and development

The company has strong research and developments (R&D) capabilities. The company has beenregularly strengthening its R&D function. The company devotes significant resources and attentionto product development and consumer insight research to develop consumer-preferred products.This is evident from the fact that the company incurred JPY165,302 million ($1,934 million) on directresearch activities relating to the development of new products or the maintenance and improvementof existing products.

Further, the company established Fujifilm Drug Discovery Research Laboratories in Kaisei Town,Kanagawa Prefecture, to further develop its pharmaceuticals business. The new laboratories willserve as a new research unit to identify drug candidates in oncology and regenerative medicine.The company also signed a five-year joint research and development agreement on endoscopy-relatedproducts with Fox Chase Cancer Center.

Such focus on R&D has helped the company in incorporating newer features to its existing rangeof products and also in bringing out latest technologies in the varied areas. For instance, in FY2011,FUJIFILM introduced 'FUJIFILM 3D Print System', which offers an instant printout of high-qualityand natural 3D photographs. The company also announced the development of the new FinePixX100, a high-grade digital compact camera featuring an APS-C CMOS sensor. FUJIFILM releasedthe new FinePix X100, a high-grade digital camera featuring an APS-C CMOS sensor (12.3megapixel), a Fujinon 23mm fixed focal length F2 lens and a newly developed Hybrid Viewfinder.In addition, in May 2011, Fuji Xerox announced to release DocuPrint P300 d, an A4 monochromelaser printer. In July 2011, Fuji Xerox developed a full-color inkjet printing system, 2800 Inkjet ColorContinuous Feed Printing System.

Strong focus on R&D helps FUJIFILM to innovate and introduce new products in line with changingconsumer preferences, which in turn allows the company to maintain a competitive advantage overits peers.

Strong presence in core markets

FUJIFILM has a strong market position in various market in which it operates. In the LCD market,the company's protective film (FUJITAC) commands approximately 70% market share, while in theWV film market it holds a monopolistic position worldwide. FUJIFILM has a leading position in opticaldevices market.The company commands a high global market share for lens units with 8.0 megapixeland higher pixel counts. In addition, the company has a leading market position in the computedradiography field. In the market for television camera lenses the company occupies 50% of the globalmarket share. The company's strong market position in combination with other initiates allows it torecord steady growth as compared to its peer companies.



Weaknesses

Relatively weak brand image

The company has a relatively weak brand image compared to its competitors.The company competeswith various players offering products like digital still cameras, digital imaging related products andservices, audio video/optical media, and printers and copiers, among others. Its major competitorsinclude companies like Canon, Hewlett-Packard and Sony, among others, who have a strong brandimage.

For example, the company was not along with its domestic competitors like Sony and Canon on thelist of the top 100 'Best Global Brands' 2011 ranking, in a recent survey. Further, the company wasneither with its competitors including Canon and Sony on the list of first hundred list of the AsiaPacific's 2011 Top 1000 Brands, according to another ranking survey study. The relatively weakbrand image may result in lower customer recall towards the company's products and hence limitthe company's market penetration initiatives.

Unfunded employee post retirement benefits

The company has significant unfunded pension obligations. FUJIFILM provides retirement benefitsfor most of their employees, either directly or by contributing to independently administered funds.In FY2011, the company's pension benefit obligations stood at JPY621,266 million ($7,268.8 million)as compared to the planned assets of JPY546,789 million ($6,397.4 million), resulting into anunfunded status of JPY74,477 million ($871.4 million).

Volatility in financial markets (equity and debt) led to decline in pension fund asset values. Unfundedpension obligations will force the company to make regular cash contributions to bridge the gapbetween pension assets and liabilities, pressurizing the liquidity position of the company.

Opportunities

Strategic initiatives to expand geographic presence

FUJIFILM has taken several initiatives to expand its geographic presence across the world in therecent past. For instance, During May 2012, FUJIFILM established FUJIFILM South Africa and arepresentative office in Casablanca, Morocco to accelerate business expansion in the fast-growingAfrican region. In March 2012, Fuji Xerox established regional headquarters over six areas in Japanto reinforce its community-based sales force. In the following month, FUJIFILM announced plans toestablish a direct selling system and launch sales operations in early May to be managed by thesubsidiary FUJIFILM VIETNAM, to accelerate the expansion of its digital camera business in thefast-growing Vietnam market.



Also, in November 2011, FUJIFILM Electronic Materials, a subsidiary of FUJIFILM established asemiconductor material manufacturing company in South Korea to expand the sales of electronicmaterials in South Korea's semiconductor market. In October 2011, the company establishedsubsidiaries in South Korea and Indonesia, to expand the digital camera business in Asia. In addition,in September 2011, FUJIFILM established a subsidiary FUJIFILM MEDICAL SYSTEMS VIETNAM,to further expand its medical business in Vietnam. In the same month, the company establishedFUJIFILM UKRAINE, a local subsidiary in Ukraine, to expand its digital camera business in Ukraine.

Such strategic initiatives may boost the company’s revenues in the near future and also provideopportunities for FUJIFILM to fully exploit the growth prospects present in diversified markets.

Acquisition of SonoSite

The company’s acquisition of SonoSite accelerates Fujifilm's entry into the fast-growing hand-carriedultrasound equipment market. In December 2011, the company entered into a definitive agreementto acquire SonoSite. SonoSite is a world leader in point-of-care ultrasound products (POCU) andspecializes in the development of ultra portable and robust devices that are used in more than 20clinical specialties.This acquisition brings together complementary strengths of Fujifilm’s high-qualityimaging technologies and SonoSite’s pioneering point-of-care expertise and miniaturizationcapabilities, amplifying the business’ leadership within the growing POCU sector. Also, the combinedentity will be well positioned to develop and produce industry-leading and price-competitive productsfor both point-of-care and traditional diagnostic markets’, utilizing Fujifilm and SonoSite’s innovativemanufacturing technologies.This acquisition also drives the geographic expansion of POCU devicesby deploying a worldwide sales infrastructure and distribution channels on a reciprocal basis.

In addition, it also accelerates the development and commercialization of next generation compact,easy-to-use and high-quality medical imaging devices resulting from the combination of Fujifilm’sproprietary imaging and laser technology and SonoSite’s advanced ASIC technology, cutting edgehigh-frequency ultrasound and transducer technology and its photoacoustic imaging technology.

This acquisition further enhances the company’s technological expertise to develop medical imagingdevices that contribute to the improvement of medical diagnostics and care quality for patientsworldwide.

Growing Asia-Pacific office services and supplies market

The Asia-Pacific office services and supplies market has been growing at a rapid pace since pastfew years. According to Marketline, the Asia-Pacific office services and supplies market generatedtotal revenues of $39.2 billion in 2010, representing a compound annual growth rate (CAGR) of 2.3%between 2006 and 2010.The performance of the market is forecast to accelerate, with an anticipatedCAGR of 3.3% for the five year period 2010-15, which is expected to drive the market to a value of$46.1 billion by the end of 2015.

FUJIFILM has a strong presence in the Asia-Pacific office services and supplies market.The companyoffers a wide range of office copy machines/multifunction devices, printers, production systems and



services, paper, consumables, office services and other related products in this market. The growthin the office services and supplies market will provide the company an opportunity to tap the demandin a significant way and increase its overall sales.

Threats

Intense competition

FUJIFILM operates in a highly competitive environment. The company competes against large andwell-established national and global companies, as well as regional and local companies. Its primecompetitor includes Canon, Eastman Kodak, Hewlett-Packard, Konica Minolta Holdings, Ricoh,Seiko Epson, and Sony.The intensification of competition with these companies may lead to declinesin the selling prices of products, shorter product lifecycles and the emergence of alternative products.These phenomena force the company to increase its expenses in R&D to develop productsincorporating new technologies and on the marketing and advertisement to support the sales of suchproducts. Substantial R&D and promotional expenditures would result in higher operating costs,which would affect the company's profit margin.

Intense competition may erode the company's market share and reduce its profitability.

Wide adoption of alternative technologies

Alternative technologies have emerged over the years affecting the company's operations. Forinstance, the emergence of digital photo cameras and e-mail has affected the company's photo filmand document solution businesses, respectively. Further, in the enterprise storage market,technologies like solid state derives (SSDs) have gained advantage over conventional storage likehard disk drives (HDDs) and tape drives. SSDs/flash storage products are commonly used for storinglarge volumes of data in small form factor (size) in environments characterized by high levels ofshock, vibration or temperature fluctuation. These factors have also resulted in growing interest foruse in enterprise storage solutions and notebook PCs. Moreover, the trend in the semiconductormarkets is also resulting in declining prices of SSDs, which was once a setback for the adoption ofSSDs compared to HDDs and tape drives. Wide adoption of alternative technologies would affectthe operating performance of the company in coming years.

Exchange rate fluctuations may affect the financial results

FUJIFILM is sensitive to the fluctuations in foreign currency exchange rates and is principally exposedto fluctuations in the value of the British pound sterling, Canadian dollar, Euro, Australian dollar, andthe US dollar. The company's consolidated financial statements, which are presented in Japaneseyen, are affected by foreign currency exchange fluctuations.

FUJIFILM provides products and services in diverse markets throughout the world, and the shareof consolidated sales accounted for by overseas sales was approximately 53.3% in FY2011. If the



yen strengthens relative to local currencies, the reported revenue, gross profit and net income willlikely be reduced.The strengthening of the yen against the other local currencies may have a materialadverse effect on company's reported operating results, which may in turn affect the valuation ofthe company.



TOP COMPETITORS

The following companies are the major competitors of FUJIFILM Holdings Corporation

Canon Inc.Eastman Kodak CompanyHewlett-Packard CompanySony CorporationSeiko Epson CorporationKonica Minolta Holdings, Inc.Ricoh Company, Ltd.


FUJIFILM Holdings CorporationTop Competitors

COMPANY VIEW

A statement by Shigetaka Komori, the President and Chief Executive Officer at FUJIFILM Holdingsis given below. The statement has been taken from the company's 2011 annual report.

Building a Corporate Constitution that is Capable of Generating a Steady Profit Stream through aTwo-Year Process of Structural Reforms

Emerging countries including those throughout the Asia region continue to exhibit economic growth.Business conditions in the United States are showing signs of a modest recovery due largely toimproved consumption and employment. Europe is witnessing an overall positive turnaround despitecontinued weakness in certain regions. Turning to the domestic economy, Japan remains shroudedin a cloud of uncertainty. Despite this uncertainty, which is mainly attributable to the yen’s appreciation,the sharp surge in raw material prices and the Great East Japan Earthquake that occurred in March2011, there are expectations of a recovery from the summer through to autumn.

Under these circumstances, the Fujifilm Group (“the Group”) has undertaken over a two-year periodto build a robust corporate constitution that is able to steadily generate profit while sustaining growtheven when facing harsh business environments. In specific terms, we have adhered strictly to aprocess of structural reforms and resolutely executed measures to reduce costs and expensesthroughout the entire Group and in all businesses, without excluding any business fields from thescope of these measures.

As a result of these endeavors, FUJIFILM Holdings Corporation (“Fujifilm” or “the Company”) recordedconsolidated revenue of ¥2,217.1 billion for the fiscal year ended March 31, 2011. This representeda 1.6% increase compared with the previous fiscal year and a 4.8% year-on-year improvement afterexcluding the impact of foreign exchange fluctuations. While appreciation in the value of the yenhad the effect of reducing revenue by ¥68.9 billion, the ¥35.4 billion increase in consolidated revenuereflected the release of new products and successful efforts to promote sales in response to growthin emerging countries’ markets. Operating income before restructuring and other charges wasnegatively impacted by such factors as the strong yen, a surge in raw material prices and a declinein sales attributable to the Great East Japan Earthquake. This was more than offset by the upswingin sales, the implementation of structural reforms as well as cost reduction measures. Accordingly,operating income before restructuring and other charges jumped 65.4% compared with the previousfiscal year to ¥168.1 billion. Using the same exchange rates and raw materials prices when theGroup last reported record high earnings in the fiscal year ended March 31, 2008, results in thefiscal year ended March 31, 2011 were at the same level. On this basis, the Fujifilm Group has insubstantive terms achieved a historic high in operating income. Progressive improvement in theGroup’s corporate constitution supported an increase in the ratio of operating income beforerestructuring and other charges to consolidated revenue to 7.6%. Restructuring and other chargesin the fiscal year under review amounted to ¥31.7 billion. As a result, operating income beforerestructuring and other charges totaled ¥136.4 billion.


FUJIFILM Holdings CorporationCompany View

Focusing on Expanding Sales by Bolstering Activities in Priority Business Fields and IncreasingMarket Share in Emerging Countries

Over the past two years, we have undertaken wide-ranging structural reforms aimed at building acorporate constitution that is able to steadily generate profits. In addition to achieving objectivesestablished at the beginning of the period, the fruits of our efforts can be seen in the substantialimprovement in operating results. Looking ahead, we will focus on expanding sales. To this end, wewill resolutely pursue growth strategies on the world stage including newly emerging markets fromfiscal 2012.

A major pillar of our growth strategies entails bolstering activities in priority business fields. We willselectively allocate management resources across six priority business fields that allow us todifferentiate our products using proprietary technologies. Each field is further characterized by itssignificant scale and growth potential, and represents a market in which we maintain competitiveadvantage. In specific terms, we have identified medical systems/life sciences, graphic arts, documentsolutions, optical devices, highly functional materials and digital imaging as our drivers of futuregrowth. We are committed to strengthening our lineup of high-quality products that boast superiorcost performance and accommodate market needs, and to secure a leading position in each of thedeveloped and emerging countries in which we operate.

Complementing this commitment, we will work diligently to expand sales in emerging countries,distinguished by their outstanding growth, as well as markets in which our share is low. In order toestablish a firm presence and acceptance of the FUJIFILM brand, while at the same time expandingmarket share, we will adopt a focused approach to the allocation of management resources includingpersonnel, deliver products with a quality and features that best fit the requirements of each regionat an affordable price and reinforce our sales network.

In addition, we recognize that new businesses are essential to growth.The scale of the photographicfilm market has rapidly contracted by more than 90% over the ten years since hitting its peak in2000.We have continued to drastically transform our business structure by creating new businesses.Harnessing the strengths of our technological prowess, we plan to release a constant stream of highvalue-added products in fields that can be expected to experience significant growth including organiclight emitting displays and solar cells.

In the Aftermath of Disaster, it is Imperative that We Return to Our Roots to Fulfill Our Role in Serviceto Society

We have received numerous inquiries from shareholders and investors about the impact on theCompany of the Great East Japan Earthquake that occurred in March.

There were no injuries to Group employees as a result of the earthquake. We did, however, incurequipment damage at certain manufacturing facilities while confronting difficulties in the procurementof components. Every effort was made to ensure a prompt resumption of full-scale operations.Together with the shift to backup facilities, the impact on manufacturing activities was held to aminimum. Utilizing internal electric generators installed at each of our plants, we are overcoming



subsequent shortages in the supply of electric power. We have also been quick to implementcountermeasures with respect to the procurement of components and raw materials.

On a personal note, I am convinced that recent events provide the opportunity to again clarify theFujifilm Group’s role in society. Of equal importance is the need for us to fulfill our role in the globalcommunity, namely to consistently deliver value through our products and services irrespective ofour surrounding environment.To the very best of our abilities, we will work toward growth hand-in-handwith all stakeholders. Our goal is to provide the underlying strength and platform required for renewedeconomic growth in Japan.



LOCATIONS AND SUBSIDIARIESHead Office

FUJIFILM Holdings Corporation7-3 Akasaka 9-ChomeMinato-kuTokyo 107-0052JPNP:81 3 6271 1111http://www.fujifilmholdings.com

Other Locations and Subsidiaries

FUJIFILM Canada Inc.FUJIFILM North America Corporation600 Suffolk Court200 Summit Lake DriveMississaugaValhallaOntario L5R 4G4New York 10595-1356CANUSA

FUJIFILM MIDDLE EAST FZEFUJIFILM do Brasil Ltda.The Galleries Building #3Avenida Vereador Jose Diniz 3400Floor#08Campo BeloOffice#09Sao Paulo, CEP 04604-901Downtown Jebel AliBRADubaiARE

FUJIFILM IRELANDFUJIFILM Europe GmbHUnit 78AHeesenstrasse 31Lagan Road40549 DusseldorfDublin Industrial EstateDEUGlasnevinDublin 11IRL

FUJIFILM (China) Investment Co., LtdFUJIFILM UK Ltd.28F, ONE LUJIAZUIUnit 10A St. Martins Business CenterNo.68 YinCheng Zhong RoadSt. Martins WayPudong New AreaBedford MK42 0LFShanghai 200120GBRCHN


FUJIFILM Holdings CorporationLocations and Subsidiaries

FUJIFILM India Private LimitedFUJIFILM Australia Pty Ltd.Vatika Business Park, 7th Floor114 Old Pittwater RoadBlock-One, Sohna RoadBrookvaleSector-49, GurgaonNew South Wales 2100Haryana-122001AUSIND


FUJIFILM Holdings CorporationLocations and Subsidiaries

MARKETLINE | 119 FARRINGDON ROAD | LONDON, UNITED KINGDOM, EC1R 3DAT: +44 161 238 4040 | F: +44 870 134 4371 | E: [email protected] | W: www.marketline.com

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Fujifilm data monitor