Growth Strategies Priority Business Fields

X-ray Examinations

Fujifilm is expanding sales of systems including imagers, centered on FCR (Fuji Computed Radiography) digital X-ray imaging and diagnostic systems, amid the ongoing digitization of the market. Furthermore, amid the trend toward networks at medical facilities, we are expanding our network service business, centered on SYNAPSE, a medical‐use picture archiving and communications system (PACS) for which demand is growing steadily.

Nuclear Medicine Examination

In October 2006, Fujifilm acquired all of the issued shares of Daiichi Radioisotope Laboratories, Ltd. (currently FUJIFILM RI Pharma Co., Ltd.), a leading manufacturer of radiopharmaceuticals.

Nuclear medicine examination, which utilizes radiopharmaceuticals, is a safe examination method that enables functional and other variations caused by disease in internal organs to be detected before changes in morphology occur. It plays a major role in the diagnosis of various brain diseases, heart diseases, and tumors.

Having made Daiichi Radioisotope Laboratories a subsidiary, we are expanding our business fields into nuclear medicine diagnostic imaging pharmaceuticals and therapeutic radiopharmaceuticals.

Endoscopic Examination

In the field of endoscopy, we are further strengthening the infrastructure for domestic and overseas sales and services, and are leveraging such differentiated products as Transnasal Endoscopes to increase our market share. In March 2007, FUJINON Corporation signed a strategic agreement with Given Imaging Ltd. of Israel, the global leader in capsule endoscopy.

The agreement covers the sale of capsule endoscopes, the supply of components, and research and development relating to next-generation endoscope systems.

In September 2006, Fujifilm entered the healthcare field by launching functional cosmetics and internal care products.

We possess a broad spectrum of core technologies accumulated over many years of research and development of photosensitive materials. These technologies play a vital part in people's lives, and we have effectively applied them and commercialized them in the healthcare field.

As the digitization of the printing industry advances, computer-to-plate (CTP) systems–digital printing systems–are likely to achieve further diffusion and sales growth around the world.

Fujifilm plans to further strengthen its production systems, which are located in four regional centers around the world.

In the Chinese market, where demand is expanding rapidly, a new factory operated by FUJIFILM Printing Plate (Suzhou) Co., Ltd., which became our second pre-sensitized (PS) plate and CTP plate manufacturing plant in China, entered full–scale operation in March 2007.

As a result of the implementation of the Japanese SOX Act (Sarbanes-Oxley Act), requirements have grown for transferring information stored on paper documents to electronic form and for systems that can centralize the management and control of electronic documents.

This is leading to increasing demands for the conversion of paper documents into an electronic form and for integrated management of information.

Along with the growth in demand for camera phones and the need for high-definition lenses, the quality of our megapixel-class lens units has been widely recognized, and sales of these lens units are expanding. To respond to the expansion in demand for high-precision lens units, we are expanding our production capacity, principally at our plants in Shenzhen and Tianjin, which are centers for volume production of these units, and working to strengthen our market position.

FPD Materials underpinned by burgeoning demand for liquid-crystal displays(LCDs), including LCD televisions, FUJITAC, which is indispensable in LCDs, and WV Film, which enables wider viewing angles, have achieved steady sales growth. The Group is actively boosting production capacity in anticipation of further growth in demand.

In addition, we have decided to build a new plant (scheduled to commence operations in April 2008) that will conduct R&D relating to FPD materials at the Ashigara site of the Kanagawa Factory. The new plant will develop and produce ultra-wide FUJITAC that will enable it to respond to the trend toward larger LCD panels by efficiently manufacturing materials for LCD televisions with 40–inch and larger screens.

Thus far, in the field of electronic materials, we have focused on production and sales of photoresists needed for the production of semiconductors. In recent years, however, along with the trend in semiconductor manufacturing toward finer design rules and multilayering, we have arrived at the stage where our high functional materials technologies are required. Accordingly, we are strengthening our global production and marketing capabilities and systems.

In the consumer and industrial inkjet business, demand is continuing to expand. Fujifilm is growing its operations by aggressively engaging in M&As involving marking technology in the key printer head and ink–related fields. We acquired U.S.–based Dimatix, Inc. in the fiscal year ended March 2007.