Fiscal Year 2005 Earnings Ended March 31, 2005 · Fiscal Year 2005 Earnings Ended March 31, ... operations by strengthening its marketing capabilities in Japan and ... Fiscal Year

Fiscal Year 2005 EarningsFiscal Year 2005 EarningsEnded March 31, 2005Ended March 31, 2005

FUJI PHOTO FILM CO., LTD.FUJI PHOTO FILM CO., LTD.April 28, 2005April 28, 2005

FORWARD-LOOKING STATEMENTSThis document contains projections of performance and other projections, which are made based on judgments regarding currently available information and which encompass potential risks and uncertainties. Accordingly, please be aware that diverse factors may cause actual results to differ materially from projected results.

11

Operating Results Operating Results

RevenueRevenue ((1.5)1.5)((39.4)39.4)2,566.72,566.7100.0%100.0%2,527.32,527.3100.0%100.0%

DomesticDomesticOverseasOverseas

%%

ChangeChange

82.382.3164.9164.9

184.9184.9

1,336.01,336.01,230.71,230.7

¥¥113113¥¥132132

3.2%3.2%6.4%6.4%

7.2%7.2%

52.1%52.1%47.9%47.9%

FY2004FY2004

((1.8)1.8)(1.2)(1.2)

((24.2)24.2)(15.2)(15.2)

1,311.81,311.81,215.51,215.5

51.9%51.9%48.1%48.1%

((11.1)11.1)((20.5)20.5)164.4164.46.5%6.5%Operating Operating IncomeIncome

++2.72.7((1.6)1.6)

((¥¥5)5)++¥¥33

++2.22.2((2.6)2.6)

AmountAmount

84.584.5162.3162.3

3.3%3.3%Net IncomeNet Income

¥¥108108¥¥135135

Exchange RatesExchange RatesUS$US$EuroEuro

6.4%6.4%Income before Income before Income TaxesIncome Taxes

FY2005FY2005

Performance SummaryPerformance Summary

Billions of yenBillions of yen

22

815.5 743.0

43.5

-7.1

-80.0

320.0

720.0

1,120.0

-10.0

40.0

90.0

140.0

Revenue Operating income

*After elimination ofintersegment transaction

5.3%5.3%

YoYYoY: : --

YoYYoY: : --8.9%8.9%

--1.0%1.0%

((Left scale) Left scale) (Right scale)(Right scale)


Breakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating IncomeImaging SolutionsImaging Solutions

Operating Segments Operating Segments

YoYYoY: : --23%23%

YoYYoY: : --3%3%YoYYoY: : --6%6%

YoYYoY: : --3%3%

Color Filmsand Others:

21%

Electronic Imaging:

25%Color Paper

and Chemicals:17%

PhotofinishingEquipment:

12%

Labs andFDi services:

21%YoYYoY: : --3%3%

FY2004 FY2005

33

Color Films and OthersColor Films and OthersRatio of Revenue:21%Ratio of Revenue:21%YoYYoY: : --23%23%

The sales volume was down 27% YoY in Japan and 20% overseas.While demand for films declined, sales of QuickSnap continued to be robust in North America.

The sales volume was down 27% YoY in Japan and 20% overseas.While demand for films declined, sales of QuickSnap continued to be robust in North America.

Electronic ImagingElectronic Imaging Ratio of Revenue: 25%Ratio of Revenue: 25%YoYYoY: : --3%3%

The digital camera sales volume in FY 2005 was approximately 6.1 million units.Slowing market growth and intensified price competition caused by excessive supply hascreated a harsh operating environment.The FinePix F10 and A345/350 models were launched in the 4th quarter, and a new seriesof the Z1 is scheduled to be launched in Japan in May 2005.The FinePix F10 has been highly evaluated for its superior level of sensitivity and image qualityand its sales are having a good start.

The digital camera sales volume in FY 2005 was approximately 6.1 million units.Slowing market growth and intensified price competition caused by excessive supply hascreated a harsh operating environment.The FinePix F10 and A345/350 models were launched in the 4th quarter, and a new seriesof the Z1 is scheduled to be launched in Japan in May 2005.The FinePix F10 has been highly evaluated for its superior level of sensitivity and image qualityand its sales are having a good start.


FinePix FinePix F10F10FinePix FinePix A350A350FinePix FinePix A345A345 FinePix FinePix Z1Z1

44

Color Paper and ChemicalsColor Paper and ChemicalsThe sales volume decreased approximately 11% YoY in Japan, but the increasing diffusionof digital minilabs and other factors supported an approximate rise of 3% overseas.For domestic photo processing shops equipped with Frontier digital minilabs, the share ofdigital photo prints among all photo prints has surpassed 25%, and the digital photo printshare is also steadily rising in North America and Europe.

The sales volume decreased approximately 11% YoY in Japan, but the increasing diffusionof digital minilabs and other factors supported an approximate rise of 3% overseas.For domestic photo processing shops equipped with Frontier digital minilabs, the share ofdigital photo prints among all photo prints has surpassed 25%, and the digital photo printshare is also steadily rising in North America and Europe.

Ratio of Revenue:17%Ratio of Revenue:17%YoYYoY: : --6%6%

Photofinishing EquipmentPhotofinishing EquipmentDigital minilab shipments amounted to 7,800 units in FY 2005.Fujifilm is to launch its Frontier 550 during the 1st quarter of FY 2006, which featuressuper high-speed processing capabilities and is less expensive than the Frontier 570.

Digital minilab shipments amounted to 7,800 units in FY 2005.Fujifilm is to launch its Frontier 550 during the 1st quarter of FY 2006, which featuressuper high-speed processing capabilities and is less expensive than the Frontier 570.

Ratio of Revenue: 12%Ratio of Revenue: 12%YoYYoY: : --3%3%


Frontier 550Frontier 550

The Frontier 550, completing one order in The Frontier 550, completing one order in only 2 minutes and 47 seconds.*only 2 minutes and 47 seconds.*

* * This figure represents the time required from This figure represents the time required from the start of printing through the output of 24 large the start of printing through the output of 24 large format prints.format prints.

55

768.6755.1

76.4 71.1

0.0

400.0

800.0

1,200.0

FY2004 FY20050.0

50.0

100.0

150.0

Revenue Operating Income

Information SolutionsInformation Solutions

10.0%10.0% YoYYoY: : --6.9%6.9%

YoYYoY: +1.8%: +1.8%

9.2%9.2%



Breakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating Income

YoYYoY: : --3%3%YoYYoY: +40%: +40%

YoYYoY: : --11%11%

YoYYoY: : --3%3%

Graphic Arts:29%

Medical Imaging:

27%

Flat PanelDisplay Materials:

13%

Office & Industry:12%

RecordingMedia: 14%

YoYYoY: +2%: +2%



66

Medical Imaging ProductsMedical Imaging Products Ratio of Revenue: 27%Ratio of Revenue: 27%YoYYoY: +2%: +2%

Sales of FCR (Fuji Computed Radiography), films for dry imagers, and other medical imaging equipmentand materials have risen steadily.A steadily growing number of medical facilities have installed the Synapse picture archiving andcommunication system.Double-digit growth was achieved in endoscope sales. Fujifilm is expanding its endoscope-relatedoperations by strengthening its marketing capabilities in Japan and overseas.

Sales of FCR (Fuji Computed Radiography), films for dry imagers, and other medical imaging equipmentand materials have risen steadily.A steadily growing number of medical facilities have installed the Synapse picture archiving andcommunication system.Double-digit growth was achieved in endoscope sales. Fujifilm is expanding its endoscope-relatedoperations by strengthening its marketing capabilities in Japan and overseas.

Graphic Arts System ProductsGraphic Arts System Products Ratio of Revenue: 29%Ratio of Revenue: 29%YoYYoY: : --3%3%

The use of CTP plates has surpassed approximately 40% of the industry in Japan and 60% overseas, and sales ofFujifilm's CTP products have remained robust.Surging aluminum prices boosted the cost of raw materials for manufacturing printing plates.Fujifilm's acquisition of Sericol Group, Limited, was completed at the end of February 2005, and that companybegan operating under the name of FUJIFILM Sericol from March 2005. Fujifilm is seeking to expand its operationsin screen printing and other areas of industrial printing.In response to strong demand for CTP, Fujifilm continues to expand its manufacturing capabilities.As part of Fujifilm’s effort to supply total solutions that respond to rapidly growing needs in Chinese market,a new marketing subsidiary began marketing printing system products in Shanghai on April 1, 2005.

The use of CTP plates has surpassed approximately 40% of the industry in Japan and 60% overseas, and sales ofFujifilm's CTP products have remained robust.Surging aluminum prices boosted the cost of raw materials for manufacturing printing plates.Fujifilm's acquisition of Sericol Group, Limited, was completed at the end of February 2005, and that companybegan operating under the name of FUJIFILM Sericol from March 2005. Fujifilm is seeking to expand its operationsin screen printing and other areas of industrial printing.In response to strong demand for CTP, Fujifilm continues to expand its manufacturing capabilities.As part of Fujifilm’s effort to supply total solutions that respond to rapidly growing needs in Chinese market,a new marketing subsidiary began marketing printing system products in Shanghai on April 1, 2005.


Begins manufacturing Thermal CTP plates in The NetherlandsFebruary2005

The Second factory in China to manufacture PS/CTP plates begins operation in SuzhouMarch2007

2004 Begins manufacturing thermal CTP plates in ChinaApril

Begins manufacturing photopolymer CTP plates in USAAugust

Begins manufacturing Thermal CTP plates in USANovember

Begins manufacturing photopolymer CTP plates in ChinaOctoberThe Company is rapidlyThe Company is rapidlyincreasing its manufacturingincreasing its manufacturingcapacity.capacity.

77

Flat Panel Display MaterialsFlat Panel Display Materials Ratio of Revenue: 13%Ratio of Revenue: 13%YoYYoY: +40%: +40%

Sales of FUJITAC and WV Film continued to be robust.FUJITAC manufacturing capabilities were increased in FY 2005. In August 2004,the inauguration of the second factory of Fujifilm Optomaterials Co., Ltd., boosted the annualFUJITAC manufacturing capacity from 150 million m2 to 180 million m2.Fujifilm has established Kumamoto Prefecture-based Fujifilm Kyushu Co., Ltd.Approximately ¥40 billion is to be invested in the first construction stage for the new company'sfactory, which will initially have two FUJITAC manufacturing lines.To augment WV Film manufacturing capacity, the Company is proceeding with the constructionof 3 additional factories.

Sales of FUJITAC and WV Film continued to be robust.FUJITAC manufacturing capabilities were increased in FY 2005. In August 2004,the inauguration of the second factory of Fujifilm Optomaterials Co., Ltd., boosted the annualFUJITAC manufacturing capacity from 150 million m2 to 180 million m2.Fujifilm has established Kumamoto Prefecture-based Fujifilm Kyushu Co., Ltd.Approximately ¥40 billion is to be invested in the first construction stage for the new company'sfactory, which will initially have two FUJITAC manufacturing lines.To augment WV Film manufacturing capacity, the Company is proceeding with the constructionof 3 additional factories.


180230

280330

380

0

200

400

'04.Aug. '05.Sept. '05.Dec. '06.Dec. '07.Apr.

FUJITAC Manufacturing Capacity

50

70

90

0

50

100

'05.Apr. '05.Aug. '06.Jun.

WV Film Manufacturing Capacity((million mmillion m22))((million mmillion m22))

88

Recording MediaRecording Media Ratio of Revenue: 14%Ratio of Revenue: 14%YoYYoY: : --11%11%

Despite a continued rise in the sales volume of DVD media products and data cartridges,falling prices had a large impact on related sales revenues.Fujifilm sustained robust performance in the sales of data cartridge products forIBM TotalStorage® Enterprise Tape Drive 3592.

Despite a continued rise in the sales volume of DVD media products and data cartridges,falling prices had a large impact on related sales revenues.Fujifilm sustained robust performance in the sales of data cartridge products forIBM TotalStorage® Enterprise Tape Drive 3592.

Office & IndustryOffice & IndustryA large rise in the sales of lens units for camera phones boosted the overall sales oflens businesses.Sales of TV camera lenses grew, reflecting the positive effects of a rise in demand associatedwith the Athens Olympic Games.Fujifilm's acquisition of the microelectronic materials division of Arch Chemicals, Inc., contributedto a rise in its electronics materials sales.

A large rise in the sales of lens units for camera phones boosted the overall sales oflens businesses.Sales of TV camera lenses grew, reflecting the positive effects of a rise in demand associatedwith the Athens Olympic Games.Fujifilm's acquisition of the microelectronic materials division of Arch Chemicals, Inc., contributedto a rise in its electronics materials sales.

Ratio of Revenue: 12%Ratio of Revenue: 12%YoYYoY: : --3%3%


The DIGI POW ER101The DIGI POW ER101——the world's top zoom lens in the world's top zoom lens in terms of telephoto capabilitiesterms of telephoto capabilities

The DIGI POW ER13The DIGI POW ER13——the world's top zoom lens in the world's top zoom lens in terms of wideterms of wide--angle capabilitiesangle capabilities

*TotalStorage is a trademark of IBM in the United States and other countries or both.

99

1,015.7996.1

100.4

65.1

0.0

400.0

800.0

1,200.0

FY2004 FY20050.0

50.0

100.0

150.0


6.5%6.5%

9.8%9.8%YoYYoY: +54.2%: +54.2%

YoYYoY: +2.0%: +2.0%



Document SolutionsDocument SolutionsBreakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating Income

YoYYoY: slightly decreased: slightly decreased

Office Products:53%YoYYoY: +9%: +9%

Office Printers:16%

YoYYoY: same level: same level

Production Services:

10%

YoYYoY: +30%: +30%

Office Services:6%



1010

Office ProductsOffice Products Ratio of Revenue: 53%Ratio of Revenue: 53%YoYYoY: slightly decreased: slightly decreased

Sales of color multifunction machines were robust in Japan, Asia, and Oceania. On a unit volume basis, sales were up 35% YoY in Japan and 20% worldwide. ApeosPort series of digital color multifunction machines were launched in January, which arecompatible with the main information systems of enterprises.Fuji Xerox comprehensively strengthened its lineup of monochrome multifunction machines—from low-speed models to high-speed models—and promoted a shift to next-generation

products.

Sales of color multifunction machines were robust in Japan, Asia, and Oceania. On a unit volume basis, sales were up 35% YoY in Japan and 20% worldwide. ApeosPort series of digital color multifunction machines were launched in January, which arecompatible with the main information systems of enterprises.Fuji Xerox comprehensively strengthened its lineup of monochrome multifunction machines—from low-speed models to high-speed models—and promoted a shift to next-generation

products.

Office PrintersOffice PrintersOverseas sales of both monochrome and color printers were robust. In particular, exportsto North America and Europe increased by 300% YoY on a volume basis.In Japan, the lineup was strengthened with the simultaneous launch of four new color printers.

Overseas sales of both monochrome and color printers were robust. In particular, exportsto North America and Europe increased by 300% YoY on a volume basis.In Japan, the lineup was strengthened with the simultaneous launch of four new color printers.

Ratio of Revenue: 16%Ratio of Revenue: 16%YoYYoY: +9%: +9%


ApeosPort 750 I/650 I/550 IMonocrome Multifunction Machine

ApeosPort C6550 I/C5540 IColor multifunction Machine

DocuPrint C3140/C3540 DocuPrint C525ANewly launched printers

1111

Xerox iGen3 Digital Production Press

Production ServicesProduction ServicesRatio of Revenue: 10%Ratio of Revenue: 10%YoYYoY: same level: same level

Office ServicesOffice Services Ratio of Revenue: 6%Ratio of Revenue: 6%YoYYoY: +30%: +30%

A total of 24 Xerox iGen3 units have been introduced to create the monthly statements forcredit cards issued by Sumitomo Mitsui Card Company."epicenter ", digital print innovation support centers have been established in 4 cities inAsia Pacific region —Tokyo, Sydney, Singapore, and Shanghai.Having begun marketing the Fuji Xerox FreeFlow digital printing support service, Fuji Xerox isexpanding its advanced operational support business.

A total of 24 Xerox iGen3 units have been introduced to create the monthly statements forcredit cards issued by Sumitomo Mitsui Card Company."epicenter ", digital print innovation support centers have been established in 4 cities inAsia Pacific region —Tokyo, Sydney, Singapore, and Shanghai.Having begun marketing the Fuji Xerox FreeFlow digital printing support service, Fuji Xerox isexpanding its advanced operational support business.

DocuColor 8000 Digital Press

Document outsourcing business is increasing.Sales of Internet-based " beat " services for medium and small sized business offices were up.Sales have been strong of a new electronic document management system for theadministration of the family register.

Document outsourcing business is increasing.Sales of Internet-based " beat " services for medium and small sized business offices were up.Sales have been strong of a new electronic document management system for theadministration of the family register.


1212

Performance in FY 2005The Fujifilm Group has integrated its domestic marketing functions in the imaging field.The Group also has internalized the domestic Fujifilm product marketing operations of four major distributors.Fujifilm Imaging Co., Ltd., was established in October 2004 and started a direct marketing system forimaging products in Japan.

Plans from FY 2006Fujifilm is proceeding with steps to strengthen its capabilities for product proposal and marketing activitiesas well as to reduce costs by increasing operational efficiency, restructuring distribution operations, andstreamlining staffing.Expected cost reduction from the restructuring measures in FY 2006: approximately ¥8.0 billion.

Performance in FY 2005The Fujifilm Group has integrated its domestic marketing functions in the imaging field.The Group also has internalized the domestic Fujifilm product marketing operations of four major distributors.Fujifilm Imaging Co., Ltd., was established in October 2004 and started a direct marketing system forimaging products in Japan.

Plans from FY 2006Fujifilm is proceeding with steps to strengthen its capabilities for product proposal and marketing activitiesas well as to reduce costs by increasing operational efficiency, restructuring distribution operations, andstreamlining staffing.Expected cost reduction from the restructuring measures in FY 2006: approximately ¥8.0 billion.

Comprehensive Structural Reforms Throughout OperationsComprehensive Structural Reforms Throughout Operations

Restructuring of film processing laboratories

Performance in FY 2005Certain unprofitable domestic film processing laboratories have been dissolved, and their businesses havebeen shifted to Fujifilm Imaging Co., Ltd.

The number of the Group's domestic film processing laboratories fellfrom 31 companies at March 31, 2004, to 22 companies at March 31, 2005.

Plans from FY 2006Moves to restructure and increase the efficiency of overseas film processing laboratories will be implemented.

Performance in FY 2005Certain unprofitable domestic film processing laboratories have been dissolved, and their businesses havebeen shifted to Fujifilm Imaging Co., Ltd.

The number of the Group's domestic film processing laboratories fellfrom 31 companies at March 31, 2004, to 22 companies at March 31, 2005.

Plans from FY 2006Moves to restructure and increase the efficiency of overseas film processing laboratories will be implemented.

Structural reform of domestic distribution and marketing operations in the Imaging field

Implementation of VISION 75 (1)Implementation of VISION 75 (1)

1313


Measures to realize cost reductionPerformance in FY 2005

Increased efficiency by reducing costs through the shift of the mass manufacturing operations to bases inChina(Shenzhen and Shanghai), increased the use of standardized components, and reduce procurement costsCost reduction generated by this measure in FY 2005: approximately ¥9.0 billion.

Plans from FY 2006Approximately 90% of manufacturing functions is expected to be shifted to China by the end ofFY 2006. (High-end products and consumables will continue to be manufactured in Japan.) Cooperation with external mold manufacturers to promote the internalization of mold manufacturing isexpected to enable a more than 75% reduction in development lead times—Expected cumulative cost reduction in FY 2006: approximately ¥22.0 billion.

Measures to realize cost reductionPerformance in FY 2005

Increased efficiency by reducing costs through the shift of the mass manufacturing operations to bases inChina(Shenzhen and Shanghai), increased the use of standardized components, and reduce procurement costsCost reduction generated by this measure in FY 2005: approximately ¥9.0 billion.

Plans from FY 2006Approximately 90% of manufacturing functions is expected to be shifted to China by the end ofFY 2006. (High-end products and consumables will continue to be manufactured in Japan.) Cooperation with external mold manufacturers to promote the internalization of mold manufacturing isexpected to enable a more than 75% reduction in development lead times—Expected cumulative cost reduction in FY 2006: approximately ¥22.0 billion.

Organizational and Staffing Reforms Performance in FY 2005

The reform of pension and retirement allowance systems and the introduction of a career changesupport system were implemented.The organizational structure was flattened through a shift to a business division system and a 40%reduction in the number of organizational units.

Plans from FY 2006Sustained personnel system reforms, the introduction of new retirement systems, and measures toimprove the ratio of direct to indirect staffing are expected to increase in personnel expense productivity.The programs to shift personnel to Group companies and to promote career change will be rebuilt.Expected cumulative personnel expense reduction in FY 2006: approximately ¥12.0 billion.

Organizational and Staffing Reforms Performance in FY 2005

The reform of pension and retirement allowance systems and the introduction of a career changesupport system were implemented.The organizational structure was flattened through a shift to a business division system and a 40%reduction in the number of organizational units.

Plans from FY 2006Sustained personnel system reforms, the introduction of new retirement systems, and measures toimprove the ratio of direct to indirect staffing are expected to increase in personnel expense productivity.The programs to shift personnel to Group companies and to promote career change will be rebuilt.Expected cumulative personnel expense reduction in FY 2006: approximately ¥12.0 billion.

Fuji Xerox’s Structural Reforms

1414


Reforms in information processDuring the first half of FY 2006, new main information systems will be introduced atFuji Xerox's headquarters and domestic marketing companies to handle marketing andperformance administration processes.

The integration of marketing and performance administration processes will enablethe establishment of a unified administrative platform. Reductions are expected to be achieved in SG&A expenses, largely owing to inventoryreductions.

The inauguration of the new information system leads to an additional software amortizationexpense (projected to be ¥9.0 billion in FY 2006).In FY 2006, the system's cost reduction effect is expected to be offset by initial start-up costs.

Reforms in information processDuring the first half of FY 2006, new main information systems will be introduced atFuji Xerox's headquarters and domestic marketing companies to handle marketing andperformance administration processes.

The integration of marketing and performance administration processes will enablethe establishment of a unified administrative platform. Reductions are expected to be achieved in SG&A expenses, largely owing to inventoryreductions.

The inauguration of the new information system leads to an additional software amortizationexpense (projected to be ¥9.0 billion in FY 2006).In FY 2006, the system's cost reduction effect is expected to be offset by initial start-up costs.

Fuji Xerox’s Structural Reforms

1515

Acquisition of Hanimex Australasia, a distributor in the Oceania regionInvestments in Vitex Systems, which has strengths in the field of OEL displaymaterials, and TeraRecon, which has strengths in the field of image processingEstablishment of the Fujifilm Business Development Fund, with a total budget of¥20 billionAcquisition of the microelectronic materials division of Arch Chemicals, Inc.,which focuses on semiconductor related process materialsAcquisition of Sericol Group, Limited, which has strengths in the fields ofscreen-printing inks and other UV inkjet inks

Acquisition of Hanimex Australasia, a distributor in the Oceania regionInvestments in Vitex Systems, which has strengths in the field of OEL displaymaterials, and TeraRecon, which has strengths in the field of image processingEstablishment of the Fujifilm Business Development Fund, with a total budget of¥20 billionAcquisition of the microelectronic materials division of Arch Chemicals, Inc.,which focuses on semiconductor related process materialsAcquisition of Sericol Group, Limited, which has strengths in the fields ofscreen-printing inks and other UV inkjet inks

Establishment of "Corporate Laboratories"Development of life sciences operations: commercialization of QuickGene-800automated nucleic acid isolation systemDevelopment of manufacturing-use digital imaging operations: developmentof digital light exposure system for circuit boards for printingDevelopment of optical transmission systems operations: launch of OpticalDVI Link SystemFoundation of Advanced Core Technology Laboratories facility (expected to becompleted by spring 2006)

Establishment of "Corporate Laboratories"Development of life sciences operations: commercialization of QuickGene-800automated nucleic acid isolation systemDevelopment of manufacturing-use digital imaging operations: developmentof digital light exposure system for circuit boards for printingDevelopment of optical transmission systems operations: launch of OpticalDVI Link SystemFoundation of Advanced Core Technology Laboratories facility (expected to becompleted by spring 2006)

M&

A Activities and Corporate A

lliancesM

&A Activities and

Corporate Alliances

R&

D Efforts and Results

R&

D Efforts and Results

Building New G

rowth strategies

Creating New B

usinesses Expected to Become

the Pillars ofFujifilm’s

Future Operations

Building New G

rowth strategies

Building New G

rowth strategies

Creating New B


Creating New B


the Pillars ofthe Pillars ofFujifilm

Fujifilm’’ss

Future Operations

Future Operations

Introduction of consolidated management systems focused on EVAIntroduction of cash management system

Introduction of consolidated management systems focused on EVAIntroduction of cash management system

Strengthening Consolidated Management

Strengthening Strengthening Consolidated Consolidated ManagementManagement

Share buy-back during the period from February 1, 2005 to March 18, 2005= 3,857,000 shares purchased for a total price of ¥14,970,869 thousand

Share buy-back during the period from February 1, 2005 to March 18, 2005= 3,857,000 shares purchased for a total price of ¥14,970,869 thousand

Increasing capital utilization efficiency

Increasing capital Increasing capital utilization utilization efficiencyefficiency


VISION75 Review in FY 2005VISION75 Review in FY 2005

1616

((¥¥3)3)--

¥¥108108¥¥135135

¥¥105105¥¥135135

Exchange Exchange RatesRates

USUS$$EuroEuro

%%

ChangeChange

84.584.5162.3162.3

164.4164.4

2,527.32,527.3

3.3%3.3%6.4%6.4%

6.5%6.5%

100.0%100.0%

FY 2005FY 2005ResultResult

+6.8+6.8+172.7+172.72,700.02,700.0100.0%100.0%RevenueRevenue

++3.43.4++5.65.6170.0170.06.3%6.3%Operating Operating IncomeIncome

+0.6+0.6++1.01.0

+0.5+0.5+1.7+1.7

AmountAmount

85.085.0164.0164.0

3.1%3.1%Net IncomeNet Income6.1%6.1%

Income before Income before Income TaxesIncome Taxes

FY 2006FY 2006OutlookOutlook

Outlook for FY 2006Outlook for FY 2006

Outlook for FY2006 ending March 31, 2006Outlook for FY2006 ending March 31, 2006Billions of yenBillions of yen

1717

100.0

150.0

200.0

250.0 Billions of YenBillions of Yen

Decrease in manufacturingDecrease in manufacturingcost by structural reformscost by structural reforms+13.0+13.0

164.4164.4170.0170.0

Decrease in restructuringDecrease in restructuringrelated expense inrelated expense in

comparison with FY 2005comparison with FY 2005+20.0+20.0

FY2005FY2005 FY2006FY2006

Decrease in SG&ADecrease in SG&Aby structural reformsby structural reforms

+21.5+21.5

Transfer related gainTransfer related gainin FY 2005*in FY 2005*--28.028.0

Increase in expense forIncrease in expense forStrengtheningStrengthening

IT & IP operationIT & IP operation--10.010.0

Increase in R&DIncrease in R&D--22.022.0

Foreign exchangeForeign exchange--4.04.0

OthersOthers+15.0+15.0

Change in Operating Income between FY 2005 and 2006Change in Operating Income between FY 2005 and 2006

Outlook for FY 2006Outlook for FY 2006

YoYYoY: +5.6 : +5.6

**Fuji Xerox recorded one time gain from the transfer ofFuji Xerox recorded one time gain from the transfer ofsubstitutionalsubstitutional portion of Fuji Xeroxportion of Fuji Xerox’’s employee pension fund liab ilities.s employee pension fund liab ilities.

1818

2,200.0

2,400.0

2,600.0

2,800.0

Volumes andVolumes andnew consolidationnew consolidation

+85.0+85.0

ForeignForeignexchangeexchange

--22.022.0

Product mix andProduct mix andprice changesprice changes

--102.0102.02,566.72,566.7

2,527.32,527.3　　　　

Change in RevenueChange in Revenue

FY2004FY2004 FY2005FY2005


Reference DataReference Data

YoYYoY: : --39.4 39.4

1919

0.0

100.0

200.0

300.0 Decrease inDecrease inSG&A & R&DSG&A & R&D

+21.5+21.5　　Volumes andVolumes andnew consolidationnew consolidation

+53.0+53.0 ForeignForeignexchangeexchange

--7.07.0

Product mix andProduct mix andprice changesprice changes

--102.0102.0

OthersOthers+14.0+14.0　　

164.4164.4184.9184.9


Change in Operating IncomeChange in Operating Income

FY2004FY2004 FY2005FY2005


YoYYoY: : --20.520.5

2020

197.6 147.4

-4.9 -20.8

-180.0

-120.0

-60.0

0.0

60.0

120.0

180.0

240.0

300.0

-30.0

-20.0

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

Revenue Operating income


--2.5%2.5%YoYYoY: : --

YoYYoY: : --25.4%25.4%

--14.1%14.1%



Breakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating IncomeImaging Solutions Imaging Solutions (3 months ended March 31, 2005)(3 months ended March 31, 2005)

YoYYoY: : --38%38%

YoYYoY: : --30%30%

YoYYoY: : --15%15%

YoYYoY: : --15%15%

Color Filmsand Others:

20%

Electronic Imaging:

22%Color Paperand Chemicals:

18%

PhotofinishingEquipment:

14%

Labs andFDi services:

22%YoYYoY: : --11%11%


FY2004-4Q FY2005-4Q

2121

205.5190.8

21.7 19.1

0.0

60.0

120.0

180.0

240.0

300.0

FY2004-4Q FY2005-4Q0.0

10.0

20.0

30.0

40.0

50.0


Information Solutions Information Solutions (3 months ended March 31, 2005)(3 months ended March 31, 2005)

11.3%11.3%YoYYoY: : --12.2%12.2%

YoYYoY: +7.7%: +7.7%

9.2%9.2%



Breakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating Income

YoYYoY: : --2%2%YoYYoY: +30%: +30%

YoYYoY: : --10%10%

YoYYoY:slightly increased:slightly increased

Graphic Arts:28%

Medical Imaging:

29%

Flat PanelDisplay Materials:

13%

Office & Industry:12%

RecordingMedia: 12%




2222

281.5275.8

21.121.5

0.0

60.0

120.0

180.0

240.0

300.0

FY2004-4Q FY2005-4Q0.0

10.0

20.0

30.0

40.0

50.0


7.7%7.7% 7.4%7.4%YoYYoY: : --2.0%2.0%

YoYYoY: +2.1%: +2.1%



Document Solutions Document Solutions (3 months ended March 31, 2005)(3 months ended March 31, 2005)Breakdown of RevenueBreakdown of RevenueRevenueRevenue* * /Operating Income/Operating Income

Office Products:51%YoYYoY: +13%: +13%

Office Printers:16%


Production Services:

10%

YoYYoY: +11%: +11%

Office Services:7%



YoYYoY: : --3%3%

2323

Capital Expenditure, Depreciation, and R&D ExpensesCapital Expenditure, Depreciation, and R&D Expenses



41.641.66.6%6.6%

36.436.4

50.650.6

16.316.316.916.917.417.4

56.056.0

11.411.433.133.111.511.5

44QQ

FY 2005FY 2005

190.0190.07.0%7.0%

140.0140.0

--

------

210.0210.0

------

ForecastForecast

FY2006FY2006

173.3173.36.7%6.7%

124.6124.6

172.6172.6

59.459.454.954.958.358.3

160.7160.7

49.149.182.782.728.928.9

44.044.06.6%6.6%

32.532.5

44.744.7

14.514.514.614.615.615.6

50.550.5

13.413.423.123.114.014.0

44QQ

FY 2004FY 2004

168.0168.06.6%6.6%

130.4130.4

182.3182.3

62.962.959.659.659.859.8

157.4157.4

42.042.083.283.232.232.2

DepreciationDepreciation

Imaging SolutionsImaging SolutionsInformation SolutionsInformation SolutionsDocument SolutionsDocument Solutions

Depreciation and AmortizationDepreciation and Amortization

Imaging SolutionsImaging SolutionsInformation SolutionsInformation SolutionsDocument SolutionsDocument Solutions

Capital ExpenditureCapital Expenditure

R&D ExpensesR&D ExpensesRatio of R&D Expenses to RevenueRatio of R&D Expenses to Revenue

Note: Figures do not include amounts for rental equipment handleNote: Figures do not include amounts for rental equipment handled by the Document Solutions segment.d by the Document Solutions segment.

((Note)Note)

((Note)Note)

2424

40.1%

38.2%

10.7%

9.1%

44.2%

48.7%

0.9%

0.4%

4.1%

3.6%

Mar. 2004

Mar. 2005Financial InstitutionsSecurities CompaniesOther CorporationsIndividuals & OthersGovernment & Local Public BodiesForeign Corporations

73,16473,164

9,3639,363

As ofAs ofMar. 31, 2004Mar. 31, 2004

75,63875,638

8,9148,914

As ofAs ofMar. 31, 2005Mar. 31, 2005

As ofAs ofSep. 30, 2004Sep. 30, 2004

74,87074,870

9,3599,359

ConsolidatedConsolidated

NonNon--ConsolidatedConsolidated

Exchange RatesExchange Rates


Number of EmployeesNumber of Employees

113113108108109109118118119119108108104104106106110110110110105105US$US$

133133

22QQ

137137

44QQ

137137

33QQ

134134

22QQ

132132

11QQFY2005FY2005

135135

FY2006FY2006

132132133133

44QQ

130130

33QQ

133133

11QQFY2004FY2004

135135EuroEuro

ShareholdersShareholders

Unit: YenUnit: Yen

FUJI PHOTO FILM CO., LTD.IR OFFICE, CORPORATE COM M UNICATIONS DIV.

http://home.fujifilm.com/

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