Positioning of Imaging Solutions

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

History of Imaging Solutions

4 Total World Demand Trend of Color Film

Responding to Changes in the Business Environment

6 Producing New Value

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”

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

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

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

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

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

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

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.”

Expand the Instant Photo System Business

About instant photo system “instax”

28 Expand the Instant Photo System Business

Global sales are increasing steadily

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

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

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

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

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

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. 57

Expand the Printing Business

Expanded business opportunities

Consumers are taking an increasing number of photographs due to the spread of smartphones This creates larger printing business opportunities

Ownership rates of smartphones and tablets in Japan Number of images taken in Japan

1 billion shots （） smartphones digital/mirrorless SLR 60 100% compact digital film cameras cameras

smartphones 77.5% 80% tablets 69.2% 70.7%

59.1% 40 60%

45.0% 38.8% 41.0% 40% 31.0% 27.5% 20 20.9% 16.5% 20% 16.2% 9.8% 11.6% 7.4% 0.0% 0% 0 2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Japan) June 2017 Hakuhodo DY Survey Fujifilm research: Estimated from “Photo life” survey data (Global) e-marketer projections

58 Expand the Printing Business

Expanded business opportunities

Average number of photographs saved on smartphone Timing/objectives/application of image Average number of photographs users want to print printing

（photos） Average number of To keep memories in a tangible form 67.1% photographs saved on 700 641 smartphone 81.0% of users have Average number of photographs they To organize and sort photographs 37.1% photographs users want to 569 600 would print like to print To give as a present 36.4% 500 447 The average number of 402 photographs users would like to To decorate the room 26.5% 400 print is 254 To create an album 26.1% 300 254 To keep a real non-digital photograph 18.7% (for records / storage) 171 200 144 133 To make New Year’s cards 12.9% 100 To submit to photo contests 2.2% 0 Others 1.7% 2014 2015 2016 2017 （year） 0.0% 25.0% 50.0% 75.0% Fujifilm research Research by Japan Photo Imaging AssociationｘMMD Research Institute

81% of users want to print images, and the number of images they want to print is growing. In addition to conventional usages, users now use their prints in various new ways including gifts, displays, and albums. 59

Expand the Printing Business

Expanded business opportunities

Total worldwide market for value-added prints

（MillionMil USD USD） 8,000 6,827 6,485 6,675 7,000 6,285

6,000

5,000 WALLWall Décor DECOR 4,000 カード/カレンダーCard / 3,000 フォトブックcalendar Photobook 2,000

1,000

0 FY2017 FY2018 FY2019 FY2020（fiscal year）（Source）InfoTrends + Fujifilm projections The market for value-added prints such as Photo book and WALL DECOR as larger numbers of people make more use of new print

applications 60 Expand the Printing Business

Expanded business opportunities

Harnessing the increased use of print services and spread of smartphones as a business opportunity to expand value added print services

Expand the Printing Business

1. Development of value-added print services

Based on the concept of “more photographs in your life to enrich your life,” Fujifilm proposes value-added print products and services to cope with the expanded demand for using prints in an increasing number of ways 62 Expand the Printing Business

Make albums easily through automatic photo selection This innovative service has been available since 2013. It allows users to lay out an album in as little as five minutes 63

Expand the Printing Business

Many smartphone photographs capturing various persons can be brought together in a single cute layout: This print service is particularly popular among girls and women in their teens and 20s 64 Expand the Printing Business

The WALL DECOR print service is ideal for those who want to use photographs as part of their home’s stylish interior design 65

Expand the Printing Business

These photo books have been well received, with users providing comments such as “it looks stylish like a magazine” and “I can express myself artistically” A new design is to be released in June 2018. 66 Expand the Printing Business

1. Development of value-added print services

Added value print services are growing steadily, capturing new demand. Fujifilm will continue to offer attractive added value print products and services, driving further growth of the market. 67

Expand the Printing Business

2.Expand smartphone based print infrastructure

Average number of photographs saved on smartphone Timing/objectives/application of image printing Average number of photographs users want to print

（photos）

Average number of photographs （％） 750 saved on smartphone 75 641 Average number of photographs 81.0% of users have 20代20s users want to print photographs they would 600 569 like to print 30代30s 40代40s 447 The average number of 50 50代 450 402 photographs users would 50s like to print is 254 60代60s

300 254 25 171 133 144 150

0 0 2006 2008 2010 2012 2014 2016 2014 2015 2016 2017

Fujifilm research Research from the Hakuhodo Institute of Live and Living, the Biennial Survey of the Japanese people In addition to the increase in the number of photographs taken on smartphones smartphones are increasingly being used as a portal for online shopping 68 Expand the Printing Business

2.Expand smartphone based print infrastructure

In addition to existing print infrastructure (such as stores and PCs), Fujifilm is focusing on the expansion of infrastructure and development of solutions for smartphones 69

Expand the Printing Business

2.Expand smartphone based print infrastructure

Fujifilm Online Print Services

Available for smartphone since 2016 Users can order a diverse range of value-added print products and services from their smartphone

The same products and services can be ordered from a store, a PC or a smartphone Fujifilm plans to expand the range of EC functionality that

leverages digital marketing 70 Expand the Printing Business

Ongoing development of unique, appealing applications Expand infrastructure that allows simple ordering of a diverse range of print

products and services 71

Expand the Printing Business

2.Expand smartphone based print infrastructure

Fujifilm is looking to engage in further tie-ups with other companies Preparing print infrastructure that allows prints to be ordered at anytime and anywhere The names of each company listed are trademarks or registered trademarks. 72 Expand the Printing Business

3.Expand promotions and customer touch points

“Intangible value proposal” Promotion for communicating customer feedback and photo usage ideas Powerful communication on the strength and value of images

Expand the Printing Business

3.Expand promotions and customer touch points

"Photo Is" A photo exhibition of 50,000 people One of Japan's largest participatory photo exhibitions, bringing together those who enjoy looking at photos with those who took them From 2017, the exhibition will feature 50,000 people's photos

From FY2017 onwards, Fujifilm will be organizing participatory photo exhibitions that people from overseas can also join The expansion to include overseas participation will take place through venues

such as “Photokina,” the industry's largest exhibition 74 Expand the Printing Business

3.Expand promotions and customer touch points

Wonder Photo Shop opened in Harajuku, Tokyo in February, 2014, as a forum for communication with customers in the "smartphone generation". From Fujifilm's directly- It's more fun to display your photos! operated store

Developing new products and services from communication with customers Creating demand for new print services through our directly-operated store

Expand the Printing Business

3.Expand promotions and customer touch points

Wonder Photo Shop, stores operated by Fujifilm, now operate in 25*countries around the world, introducing people around the world to new ways of enjoying photographs *As of February 2018: the total includes concept shots 76 Expand the Printing Business

3.Expand promotions and customer touch points

Collaborations with major retailers Revamping the image of photo shops around the world The names of each company listed are trademarks or registered trademarks. 77

Expand the Printing Business

As the Industry's Only Total Solution Provider, Fujifilm is proposing new ways of enjoying photographs and developing infrastructure that will allow users to print photographs anytime, anywhere, while also expanding the printing business.

78 Business Presentation for Digital Camera Business

Mar. 22, 2018

Optical Device & Electronic Imaging Products Sales Ratios By fusing our world-leading optical device technology with digital image processing technology that achieves the highest quality,

By fusing our world-leading optical device technology with digital image processing technology that achieves the highest quality,

Fujifilm develops, produces and sells imaging equipment that provides an emotional impact, reliability and convenience, responding speedily, acting innovatively, and continually evolving, polishing the Fujinon and Fujifilm brands, to continue providing customers with superior products and services. World-Leading Optical Device Technology

Received Emmy Award from The Academy of World leader in magnification; 4K lens for broadcast applications Television Arts & Sciences with × 107 zoom

By fusing our world-leading optical device technology with digital image processing technology that achieves the highest quality,

Interchangeable lens Camera Interchangeable lenses Olympus, 6, 11% Fujifilm, 10, Olympus, 12, 18% 13% Fujifilm, 21, 24%

Nikon, 10, 19%

Nikon, 20, 22%

Sony, 9, 17%

Sony, 20 , 22% Canon, 19, Canon, 16, 35% 18%

Digital Camera Market Trends Overall Digital Camera Demand (CIPA Shipments) (Million Units)

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

交換式Interchangeable コンパクトCompact lens camera digital camera

iPhone 4 (June, 2010)

5 million pixels, LED flash Trend of デジタルカメラ総需トレンドOverall Digital Camera Demand CIPA工業会出荷 (Million Units) (CIPA Shipments)

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 交換式Interchangeable コンパクトCompact lens camera digital camera

Interchangeable交換式カメラ・ミラーレス比率 lens Camera / Mirrorless Camera Ratios (Billions of yen) CIPA(CIPA工業会出荷 Shipments) 8,000800 45%

7,000700 40%

35% 6,000600 30% 5,000 500 25% 4,000 400 20% 3,000300 15%

2,000200 10%

1,000100 5%

0 0% 2012 2013 2014 2015 2016 2017 2018 1-210 January,月 February ミラーレスMirrorless 一眼レフSLR ミラーレス比率Mirrorless camera camera cameras ratio Mirrorless Cameraミラーレス・当社シェア / Fujifilm Market Share (CIPACIPA 工業会出荷Shipments) (Billions of yen) 2,500250 25.0%

2,000200 20.0%

1,500150 15.0%

1,000100 10.0%

50050 5.0%

0 0.0% 2012 2013 2014 2015 2016 2017 2018 1-210 January,月 February ミラーレス総需Overall Mirrorless 当社シェアFujifilm market camera demand share

Manufacturers (Camera/Imaging Division) FY 2017 1Q-3Q Sales Revenue (YoY) 45%

40%

35%

30%

25%

20%

15%

10%

0% Fujifilm Canon Nikon Sony Olympus -5%

-10% Why sales of Fujifilm's Mirrorless Cameras are increasing

Evolution of digital devices ＆ Differentiation by analog / responsive performance

Moving Away from Compact Digital Cameras, Selecting and Focusing on High-end Models

Game Change

Breaking away from 100 years of 35mm film and 70 years of SLR cameras

Mirror Less Less is More

Less is More

Compact, lightweight cameras applicable in various scenes without overwhelming the subject Quiet shutter without mirror shock, maintaining the relationship with the subject

High image quality unaffected by shock from the mirror

Precise focus control directly adjusted by the image sensor

High performance, compact lightweight lenses through short flange back and back focus Electronic viewfinder allowing prior image check before shooting, and displaying the subject brightly even in dark environments Reduced image failure rate due to various image recognition technologies to reduce failure such as face detection autofocus and automatic scene detection mode User’s Needs by Shooting Scene / Subject

User’s Needs by Shooting Scene / Subject Evolution of Devices

デバイスの進化

Evolution of Speed and Maneuverability

2012 2015 2017

X-E1 X-E2S X-E3

Startup time Sec 1.00 0.92 0.40

EVF display lag Sec 0.05 0.005 0.005 AF (focusing speed) Sec 0.10 0.06 0.05 AF (moving subject) % 100 167 233 focusing rate AF method Single AF-Zone New Tracking

AF number of points points 49 49 325

Burst shot speed fps 5.6 7.0 8.0

Burst shot number pcs 19 32 100

Black out (at 3fps) ms No Live View 260ms 130ms

Movie performance fps HD24p HD60p 4K30p Examples of Functionality Evolution EVF Black Out

Example of Functionality Evolution AF Speed 0.05 seconds Differentiation by analog / responsive performance

写真の原点を呼び起こすカメラ

Interchangeable lenses lineup (X Series)

interchangeable lenses User’s Needs by Shooting Scene / Subject 1.7×

Interchangeable lenses lineup (GF Series)

interchangeable lenses Evaluation from the Market (Billions of yen) Digital Camera Business Sales Performance 1401,400 Compact Launch of X100 XXシリーズ series コンパクト digital camera 1201,200

Entry into mirrorless camera 1001,000 market with X-Pro1

Launch of double flagship models, X- X-T1 became a hit Pro2, X-T2 800 mirrorless camera Launch of GFX 80 Number of interchangeable lenses exceeded 10

60600

40400

20200

0 2009 2010 2011 2012 2013 2014 2015 2016 2017

Shipment of Fujifilm Interchangeable Lenses 本数億円 1,000,000 350

900,000 300 800,000

700,000 250

600,000 200 500,000 150 400,000

300,000 100

200,000 50 100,000

0 0 20122012年 20132013年 20142014年 20152015年 20162016年 20172017年

Shipment出荷数量 quantity 出荷金額Shipment amount Future Growth Strategies

Invest and strengthen all areas : development, production, brand marketing, and services

Development: Development of attractive lens products by Fujifilm's proprietary device technology (sensors, processors) and 4K/8K lens technology

Production: Strengthen interchangeable lens capacities (e.g. expansion of the floor area of the Yamato Plant) and improve productivity (e.g. increased use of automated production)

Marketing: Promoting the use of direct marketing (e.g: within the new Fujifilm Imaging Plaza in Marunouchi)

Services: FPS (Fujifilm Professional Service) etc.

Preparing for the 2020 Tokyo Olympics

Keep Innovating with Passion for Photography.