Fujifilm launches Medium-Term Management Plan VISION80 (FY2012-2013)
October 31, 2011
FUJIFILM Holdings Corporation (President and CEO: Shigetaka Komori) has launched the new medium-term management plan, VISION80, toward FY2013.
Fujifilm Holdings has successfully changed the business structure by promoting management reforms under VISION75, starting in 2004, amidst the ongoing digitalization of photography. These initiatives enabled the company to achieve record high revenue and operating income in FY2007. Later, Fujifilm promptly embarked on the structuring of robust corporate constitution in order to withstand the drastic downturn of the business environment caused by the worldwide recession. Fujifilm boldly implemented structural reforms that stretched out to the entire company and to all businesses and strongly promoted growth strategies centering on priority business fields. Currently, the company is further accelerating such growth strategies.
The medium-term management plan VISION80 aims for new growth in the global market by further promoting globalization on the basis of robust corporate constitution, toward FY2013 which marks Fujifilm's 80th anniversary. The company will provide products equipped with good quality but cost-effective which capture market opportunities in priority business fields such as healthcare, highly functional materials, document solutions, graphic arts, optical devices and digital imaging. It will also selectively concentrate management resources into growing emerging markets to realize steady growth. With these measures, Fujifilm is set to achieve 2.5 trillion yen in revenue and 180 billion yen in operating income in FY2013, the final year of the plan. Having this as its minimum target, Fujifilm aims for higher performance.
1. Target vision of Fujifilm Holdings
Further promote globalization on the basis of robust corporate constitution and aim for new growth in the global market.
2. Priority policy of VISION80
- (1) Promotion of growth strategies for priority businesses
- Selectively concentrate management resources into the 6 priority business fields (healthcare, highly functional materials, documents business, graphic systems, optical devices, digital imaging) and realize steady growth.
Realization of substantial growth in the healthcare field
Target revenue for FY2013: 370 billion yen
- [Medical systems]
- - Make a shift in the profit portfolio from material-oriented business centered on X-ray films to network and equipment businesses.
Expand sales by enhancing the development and marketing of new, distinctive products.
- - Expand income by introducing new drugs of Toyama Chemical and proceeding with bio-pharmaceutical CMO (Contract Manufacturing Organization) business.
Realize growth in new distinct drugs such as T-705 and T-817MA
- [Life science]
- - Expand overseas sales of the ASTALIFT cosmetic series.
- - Expand business fields by introducing unique products capitalized on our proprietary technologies.
Further business expansion in the highly functional materials field
Target revenue for FY2013: 330 billion yen
Revenue target for new products: 50 billion yen
- - Continuously introduce new products for the growing market, utilizing the Group's high development capabilities of functional materials.
- - Secure profitability in existing fields, such as films for LCD TVs and monitors, and maintain growth as a core business.
Further growth and improvement of profitability in the document solutions business
Target revenue for FY2013: 1.1 trillion yen
Reinforce and shift to new growth fields and markets, while maintaining and enhancing earning base.
- - In Japan, focus on reinforcing sales power for growth, expanding global service, and accelerating expansion of solution business.
- - Speed up growth by shifting resources to China and other emerging markets.
- - Further enhance product competitiveness in global bases of production business and accelerate the expansion of low-end/quantity business.
Accelerate reform for a new corporate constitution for recovery of growth and profitability.
- [Electronic imaging]
- Achieve revenue growth at an annual rate of more than 10% by expanding the line-ups of high-end models and reinforcing sales promotion
- - Expand the lineup of high-end models, “X” series cameras.
- - Following X100 and X10, launch “X-S1”, the long-zoom model, by the end of this year, Launch a first-class mirror-less digital SLR next spring.
- - Establish a direct sales system in Asia.
- - Strengthen advertising and sales promotion to enhance branding.
- - Expand sales of value-added printing such as Photobook.
- - Expand sales of dry printing systems that match market trends.
- - Aim for the increase of sales in the digital printing market with the core technology of inkjet printheads and ink.
- - Increase market share by launching process-less plates that take the environment into consideration and a system that realizes decrease in wastewater.
- - Make a shift in the core of business from lens units to high-value-added camera modules, while reacting flexibly according to changes in the industrial trend.
- (2) Speeding up globalization
- Inject management resources, such as personnel and funds, viewing emerging markets with expectations for growth, such as BRICs, Turkey and the Middle East, as top-priority areas.
- - Clarify tasks and measures of each country to capture the market.
- - Develop products that match local needs and strengthen the production system.
- - Increase employees to be dispatched to emerging countries and enforce training and utilization of global personnel.
- (3) Investment plans
- Proactively invest a total of approximately 1 trillion yen in the 3 years from FY2011 to FY2013.
Capital Expenditure 100-150 billion yen / year M&A investment 50-100 billion yen / year R&D investment 150-200 billion yen / year
3. Performance target
Target revenue of 2.5 trillion yen and an operating profit of 180 billion yen in FY2013.
Having this as its minimum target, Fujifilm aims for higher performance.
4. Policy on return to shareholders
- The payout ratio target will be set at above 25%, placing value on dividends.
- Buyback will be considered, taking stock prices and the Group's cash flows into account.
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