Fujifilm Announces the Financial Results of Fiscal Year Ended March 2023
TOKYO, May 10, 2023 – FUJIFILM Holdings Corporation (President and CEO, Representative Director: Teiichi Goto) announced results today for the fiscal year ended March 31, 2023.
In the fiscal year ended March 31, 2023, revenue rose in all business segments, increased by 13.2% year-over-year to JPY2,859.0 billion. Despite a decline in special demand related to COVID-19 from the previous year in the Healthcare and Materials segments and higher costs for material and energy, operating income amounted to JPY273.1 billion, increased by 18.9% year-over-year, thanks to higher revenue and the impact of exchange rates. Net income attributable to FUJIFILM Holdings increased by 3.9% year-over-year to JPY219.4 billion with contribution from record high operating income.
Revenue reached a record high for the first time since the fiscal year ended March 2008. Operating income and net income attributable to FUJIFILM Holdings also reached record highs for the second and third consecutive years, respectively. For the three months of the fourth quarter, revenue, operating income and net income attributable to FUJIFILM Holdings all exceeded the forecast announced on February 8, reaching record highs for the fourth quarter.
Fujifilm achieved the targets of revenue and income for the final year of the medium term management plan VISION2023 one year ahead of schedule. For the fiscal year ending March 31 2024, the final year of VISION2023, the targets have been revised upward to the highest levels, with revenue of JPY2,950.0 billion, operating income of JPY290.0 billion, and net income attributable to FUJIFILM Holdings of JPY225.0 billion.
“In the fiscal year ended March 2023, sales, operating profit, and net income all reached record highs, and the Healthcare segment kept the largest share in sales and operating income,” says Teiichi Goto, president and chief executive officer, representative director, FUJIFILM Holdings Corporation. “Our direction of the Healthcare and Materials segments driving growth in the medium to long term remains unchanged, but the Imaging segment achieved remarkable results, doubling its operating income compared to the previous year, thanks to the strong performance of INSTAX and digital cameras. I am confident that our Imaging business will continue to underpin our business performance.”
Based on these strong financial results, the annual dividends for the fiscal year ended March 2023 are planned to be JPY130 per share, which is JPY10 higher than the previous annual forecast of JPY120. To celebrate the 90th anniversary of Fujifilm’s founding in January 2024 and to thank its shareholders for their continued support, the annual dividend forecast for the fiscal year ending March 2024 is JPY150 per share, marking the 14th consecutive annual dividend increase, consisting of a commemorative dividend of JPY10 per share and the ordinary dividend, which increased by JPY10 per share.
Highlights by business segments
Healthcare:
- Revenue rose to JPY917.9 billion, up 14.5% year-over-year, due to higher revenue at the Medical Systems and Bio CDMO businesses.
- Although the Medical Systems business reported higher profit, operating income for the segment remained flat from the previous year at JPY100.5 billion, due to lower profit at the Bio CDMO and Life Sciences businesses where COVID-19-related demands from the previous fiscal year have decreased.
- In the Medical Systems business, revenue was driven higher by steady sales of endoscopes, medical IT and ultrasound diagnostic systems. In the Medical IT business, sales of systems and services, in particular the Picture Archiving and Communication System (PACS) SYNAPSE and the 3D image analysis system SYNAPSE VINCENT, were strong. In addition, the acquisition of the digital pathology business of Inspirata, Inc., which develops and sells digital pathology software for use in diagnosis, also contributed to higher revenue.
- In the Bio CDMO business, revenue rose mainly due to steady growth in contract manufacturing at the Denmark site and the impact of exchange rates. In March 2023, Fujifilm decided to turn the business subsidiaries in the U.S. and the U.K. into wholly owned subsidiaries. The company will strengthen the business foundation of the Bio CDMO business to further accelerate growth of the biopharmaceutical contract development and manufacturing business.
- In the LS Solutions business, revenue declined due to lower sales in the Pharmaceuticals business resulting from the sale of the radiopharmaceutical business, which was completed in March 2022.
Materials:
- Revenue increased by 9.8% year-over-year to JPY692.7 billion due to higher sales from the Electronic Materials and Graphic Communication businesses, but operating income fell 1.0% year-over-year to JPY67.7 billion, due to lower profit at the Display Materials business, which was severely impacted by the decline in demand for devices, although the Electronic Materials and Graphic Communication businesses reported higher profits.
- In the Electronic Materials, revenue rose as sales of products, such as CMP slurries, post CMP cleaners and polyimide, in particular for advanced semiconductors, performed well.
- In the Display Materials business, revenue declined, hit by a reactionary drop in demand for monitors, tablets and TVs, which increased in the previous fiscal year due to the COVID-19 pandemic, and the impact of production adjustments across the entire supply chain.
- In the Graphic Communication business, revenue climbed as sales prices for printing plates were revised to reflect rising raw material costs, and the digital printing field grew in line with a recovery in shipments of production printers to the U.S. and Europe.
- In the Inkjet business, revenue was driven higher by growth in sales of industrial inkjet printheads for the label market.
Business Innovation:
- Revenue and operating income increased by 10.3% year-over-year to JPY838.1 billion and by 20.0% year-over-year to JPY69.5 billion, respectively, as both the Office Solutions and Business Solutions businesses boosted sales.
- The Office Solutions business was affected by the lockdowns in China particularly in the first quarter, but revenue rose as domestic sales in Japan and exports to the U.S. and Europe performed well and the market recovered in Southeast Asia.
- In the Business Solutions business, revenue increased mainly attributable to the sales growth of solutions, services to Japanese local governments, and the overseas BPO (business process outsourcing) business.
- In March 2023, the lineup of the Bridge DX Library, consisting of solutions that support small and midsize companies in resolving DX issues, increased from 103 types for 4 industries to 146 types for 6 industries in Japan.
- FUJIFILM Business Innovation Corp. acquired the Australian IT services company MicroChannel Services Pty. Limited to further accelerate growth in the ERP system sales and implementation support business, primarily Microsoft Dynamics 365.
Imaging:
- Strong sales of instant photo systems and digital cameras boosted overall revenue by 23.1% year-over-year to JPY410.3 billion and operating income by 97.1% year-over-year to JPY72.9 billion.
- In the Consumer Imaging business, revenues increased due to strong sales of instant photo systems, color photographic paper, dry minilabs and their materials.
- In March 2023, Fujifilm launched INSTAX mini 12, the latest entry model of the INSTAX instant photo system. It also started offering the smartphone app INSTAX UP! that allows users to enjoy the digitized INSTAX photos on their smartphones.
- In the Professional Imaging business, revenue increased as sales of new products from the X Series digital cameras, X-H2S, X-H2 and X-T5 which come with the latest, fifth-generation devices, performed well.
For more details, please visit the Investor Relations section of Fujifilm website
https://ir.fujifilm.com/en/investors/ir-materials/earnings-presentations.html
