Positioning of Imaging Solutions
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Business Presentation for Imaging Solutions Businesses FUJIFILM Holdings Corporation Mar. 22, 2018 FORWARD-LOOKING STATEMENTS Forward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are management’s current assumptions and beliefs based on currently available information. Such forward-looking statements are subject to a number of risks, uncertainties, and other factors. Accordingly, actual results may differ materially from those projected due to various factors. 1 Positioning of Imaging Solutions 2 Imaging Solutions Business Overview 3 History of Imaging Solutions 4 Total World Demand Trend of Color Film 5 Responding to Changes in the Business Environment 6 Producing New Value 7 Changes in the Imaging Solutions Business Large improvements in profitability across the Imaging Solutions business as a whole (Billions of yen) 391.6 374.9 373.6 380.0 360.3 346.0 352.9 341.8 14% 10.8% 9.1% 5.6% 54.0 36.8 1.0% 20.3 32.0 3.6 -0.2% -8.4 -0.8 -12.9 -2.2% -3.3% FY2011/3 FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 Revenue Operation Operation (forecast) income income margin 8 Imaging Solutions Medium-Term Management Plan “VISION2016” 9 Expand the Instant Photo System Business Globally Digital Instant Printing Lens Camera Camera 10 Expand the Instant Photo System Business Globally Instant Digital Printing Lens Camera Camera 11 Expand the Printing Business Instant Digital Printing Lens Camera Camera 12 Expand the Printing Business Fujifilm shipment basis in Japan, Fujifilm shipment basis in Japan, Instant Digital North America and Europe North America and Europe Printing Lens Cmaera Camera 13 Digital Cameras : Focusing on High-end models Reading future market needs to focus on high-end models, achieving a recovery in sales revenue and profitability 億円 (Billions of yen) Sales trend of digital cameras 140 Reduced market for 120 low-priced cameras → Focus on high-end models 100 80 Spread of 60 smartphones 40 20 0 FY2010/3 FY2011/3 FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 (forecast) Instant Digital Printing Lens Camera Camera 14 Optical Devices : Expanding the Business in High-value-added Growth Areas Improving profitability by focusing on lenses for various industrial applications where high-quality optical technology is required such as broadcasting, cinematography and security (Billions of 億yen)円 Sales trend of optical devices 80 Reduction in the market for 70 low-priced camera modules for smart phones 60 → Expand business in high- value-added growth areas 50 40 30 20 10 0 FY2010/3 FY2011/3 FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 (forecast) Instant Digital Printing Lens Camera Camera 15 Medium-Term Management Plan “VISION2019” 16 At Last 17 Business Presentation for Photo Imaging Business Mar.22, 2018 18 Contents Chapter 1 Photo Imaging Business Overview Chapter 2 Expand the Instant Photo System Business Chapter 3 Expand the Printing Business 19 Chapter 1 Photo Imaging Business Overview Expand the Instant Photo System Photo Imaging Business Overview Expand the Printing Business Business 20 Photo Imaging Business Overview Product revenue ratios 21 Photo Imaging Business Overview Revenue trend Aiming to maintain 5% annual growth in sales and strong operating profit ratio (Billions of yen) Mid-term plan brought 249.92,499 forward by one year 2,406240.6 2,500250 235.62,356 215.72,157 Instant Photo System 2,000200 Photographing Materials 1,500150 1,000100 Printing Business/Business Products 50500 0 2013FY2014/3実績 2014FY2015/3実績 FY2016/32015実績 FY2017/32016実績 2017FY2018/3(予) 2018FY2019/3中期計画 FY2019/32018(予) Med-term plan (forecast) (forecast) 22 Photo Imaging Business Overview Expanded business opportunities 77.5% of people in Japan now own a smartphone, with 2.6 billion smartphone owners worldwide Ownership rates for smartphones and tablets in Japan smartphones tablets FY2011/3 FY2012/3 FY2013/3 FY2014/3 FY2015/3 FY2016/3 FY2017/3 FY2018/3 (Japan) June 2017 Hakuhodo DY Survey (Global) e-marketer projections 23 Photo Imaging Business Overview Expanded business opportunities Spread of smartphones has led to an increasing number of photographs taken reaching 1 trillion shots worldwide Number of shots taken in Japan ( 1 billion shots) 60 Smartphone Digital/mirrorless SLR 50 Compact digital camera Film camera 40 30 20 10 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(year) Research by Fujifilm: estimated based on “Photo life” survey data 24 Photo Imaging Business Overview Shift in the value and positioning of photographic images Facebook/Instagram user numbers: http://www.uniad.co.jp/260204 Facebook is a registered trademark of Facebook, Inc. Instagram is a registered trademark of Instagram 25 Chapter 2 Expand the Instant Photo System Business Expand the Instant Photo System Photo Imaging Business Overview Expand the Printing Business Business 26 Expand the Instant Photo System Business Instant photo system “instax” The official name of the product is “instax,” being used around the world. In Japan it is known by its nickname “Cheki.” 27 Expand the Instant Photo System Business About instant photo system “instax” 28 Expand the Instant Photo System Business Global sales are increasing steadily 29 Expand the Instant Photo System Business Development of products that meet targets 目標 30 Expand the Instant Photo System Business Shift in the value and positioning of photographs Photographs have become a more familiar, integral part of our daily lives 31 Expand the Instant Photo System Business The spread of smart phones and SNS and perceptions of “instax” 32 Expand the Instant Photo System Business The spread of smart phones and SNS and product development of “instax” Commercialization of products designed to take advantage of the spread of smartphones and wider use of social media 33 Expand the Instant Photo System Business New products launched in fiscal year 2017 New format “square format” Designed for millennials with artistic sensitivity and desire to express themselves Responding to the popularity of the square format on SNS and other platforms 34 Expand the Instant Photo System Business New products launched in fiscal year 2017 New format “square format” Image from a smartphone can also be printed on square format “instax” film Highly artistic square format supports smartphone user’s self-expression 35 Expand the Instant Photo System Business New products launched in fiscal year 2017 New “instax SQUARE” format 36 Expand the Instant Photo System Business New products launched in fiscal year 2017 New “instax” proposal for smartphone users Developed game-like smartphone applications Scheduled for global launch 37 Expand the Instant Photo System Business 1.Development of products that meet targets Collaborative product development Raising the profile of “instax” and widening the customer base through collaborations with popular characters in Japan and overseas 38 Expand the Instant Photo System Business 1.Development of products that meet targets A diverse range of design films Development of highly artistic film targeting users with high sensitivity to fashion and art 39 Expand the Instant Photo System Business 1.Development of products that meet targets Wide variety of film lineup Colorful designs and collaborations with popular characters a diverse range of films are launched for sale 40 Expand the Instant Photo System Business 2.Global development 41 Expand the Instant Photo System Business 2.Global development “instax” market situation by region “instax” ownership rates high instax early adopting regions instax growth regions instax emerging regions low 42 Expand the Instant Photo System Business 2.Global development “instax” market situation by region “instax” ownership rates high Penetration of various product lineup Value spread by actual users’ experience instax early adopting Increase base of “instax” fans regions instax Awarenessgrowth regions of the instax brand and basic concepts instax emerging regions Expansion of purchase channel low 43 Expand the Instant Photo System Business 2.Global development “instax” market situation by region “instax” ownership rates high instax early adopting regions instax growth regions instax emerging regions low 44 Expand the Instant Photo System Business 2.Global development “instax” market situation by region “instax” ownership rates high instax instax instax early adopting growth regions emerging regions regions instax early adopting regions instax growth regions instax emerging regions low 45 Expand the Instant Photo System Business 2.Global development In-store promotions “instax” in early-adopting regions U. K. Japan Canada Oceania 46 Expand the Instant Photo System Business 2.Global development In-store promotions “instax” in growth regions U.S.A. Germany 47 Expand the Instant Photo System Business 2.Global development In-store promotions “instax” in emerging regions China Mexico Malaysia Thailand 48 Expand the Instant Photo System Business 2.Global development Utilizing the Internet and SNS Based on real examples from users the value provided by instax is spreading globally 49 Expand the Instant Photo System Business 3.Concept for future development Fujifilm continues to develop products that generate new value 50 Expand the Instant Photo System Business 3.Concept for future development 51 Expand the Instant Photo System Business 3.Concept for future development Expanding the range of use and enjoyment 52 Expand the Instant Photo System Business 3.Concept for future development Use of diverse print formats “instax mini” “instax SQUARE” “instax WIDE” Expanding the range of self-expression 53 Expand the Instant Photo System Business 3.Concept for future development Provide products that give users a more “real” texture, promoting the further expansion of the service 54 Chapter 3 Expand the Printing Business Expand the Instant Photo System Photo Imaging Business Overview Expand the Printing Business Business 55 Expand the Printing Business Product revenue ratios 56 Expand the Printing Business Printing Business Overview The industry’s only total solution provider The names of each company listed are trademarks or registered trademarks.