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VISION 2023: Fujifilm’s New Medium-Term Management Plan Gives Up Dreams to Beat SONY and CANON?

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Fujifilm has launched its medium-term management plan called VISION2023.

It’s clear that their focus is on the healthcare business and quite frankly the mention of its imaging division at the very end of the press release you can read below, feels more like a mandatory half-hearted addendum.

That’s totally different compared to their VISION2019 plan that Fujifilm published in 2017 here, where they literally wrote:

we work toward capturing No.1 market share in premium mirrorless market“.

In their VISION2023 they just write one sentence:

Use Fujifilm’s proprietary color reproduction technology to promote the GFX and X series of high-end mirrorless digital cameras, which boast outstanding image quality and portability due to their compact and lightweight design.

Sure, everybody struggles these days, but things are actually not going that bad for Fujifilm in the imaging division at the moment.

Fujifilm is is third in the mirrorless market share, a safe margin ahead of Nikon.

Also, a Fujifilm managers already said that Fujifilm did better in 2020 than other brands, which seems to be confirmed by the BCN Ranking data, where you can see that digital camera sales for Fujifilm, despite the pandemic, decreased only by 8%. That’s much better than the 25,8% decrease of Canon, the 39,2% decrease of Sony, and the 39% decrease of Olympus.

And yet, the disappointement must be quite big to have missed their own target by that much.

But hey, Fujifilm, never give up! You are doing lots of things right.

And now that the Fujifilm GFX100S has made medium format so accessible like never before, all you have to do now is to step on the gas and give us that glorious Fujifilm X-H2.

Press Release

Fujifilm launches a Medium-Term Management Plan, VISION2023

April 15, 2021

-Investing 1.2 trillion yen over three years to accelerate growth mainly in the healthcare and highly-functional material businesses
-Expanding the healthcare business into the largest segment in terms of revenue and operating income

TOKYO, April 15, 2021 – FUJIFILM Holdings Corporation (President: Kenji Sukeno) launched a new medium-term management plan, VISION2023, covering the period of three years from fiscal year ending March 2022 (FY2021) to FY2023. The VISION2023 foresees investments totaling 1.2 trillion yen over the three-year period to accelerate business growth with a focus on healthcare and highly-functional materials businesses. The healthcare business is to be expanded to the largest segment in terms of both revenue and operating income to build a robust business foundation that enables sustainable growth.

In FY2017, Fujifilm drew up the CSR plan, Sustainable Value Plan 2030 (SVP2030), setting out long-term goals to be achieved by the target year of FY2030. The SVP2030 sets out goals for four priority areas, namely “Environment,” “Health,” “Daily Life” and “Work Style,” as well as “Supply Chain” and “Governance,” which provides the base for business activities, from the perspective of “solving social issues through business activities” and “considering society and the environment in business processes” to contribute to establishing a sustainable society. The VISION2023 serves as a concrete action plan for realizing goals listed in the SVP2030.

The VISION2023 has the primary goals of accelerating business growth in healthcare and highly-functional materials and building more resilient business platform to facilitate sustainable growth. To this end, Fujifilm will promote four priority measures, (1) reinforcing business portfolio management, (2) strengthening cash flow management, (3) entering into new markets for further growth, (4) creating stronger integrated business synergies through M&A.

Under the VISION2023, each of the company’s business is positioned to the stages of “new / future potential”, “priority” and “earnings base”. Over the three-year period from FY2021 to FY2023, Fujifilm will make growth investments worth 1.2 trillion yen in total, including investments in R&D investments and capital expenditures in “new / future potential” and “priority” businesses in particular. An approach that emphasizes capital efficiency will be adopted to strengthen the ability to generate cash in order to create an operating cash flow of 1 trillion yen in cumulative total over three years. Fujifilm will continue to invest in categories where its technological strengths can be leveraged and create a synergistic effect through M&A.

These initiatives are to bring the revenue of 2.7 trillion yen in the plan’s final year of FY2023. The plan also foresees record profits, generating 260 billion yen in operating income and 200 billion yen in net income attributable to FUJIFILM Holdings, while developing healthcare into the company’s largest segment in terms of revenue and operating income during the VISION2023 period.

Using its leading-edge, proprietary technologies to provide top-quality products and services, Fujifilm will strive to resolve social issues through business activities and contribute to the realization of a sustainable society.

FY2030 targets set out in the SVP2030:
  • Over 3.5 trillion yen in revenue
  • 45% reduction in CO2 emissions across the entire product lifecycle (compared to the FY2013 level)

1. Financial targets

CCC (Cash Conversion Cycle) = inventory turnover days + operating receivables turnover days – operating payables turnover days, the target figure excludes the impact of M&A.

2. Outlines and priority measures in the plan

The plan calls for securing active growth investments, concentrating management resources to “new / future potential” and “priority” businesses and accelerating / strengthening cash generation and investment cycle in order to accelerate growth in healthcare and highly-functional materials and build more resilient business platform to facilitate sustainable growth. Four priority measures are promoted to this end.

(1) Reinforcing business portfolio management

Reorganize business segments into Healthcare, Materials, Business Innovation and Imaging. Position each business in these segments to the stages of “new / potential”, “priority” and “earnings base”, and implement strategic measures in line with their respective business phases.

  • New / potential business: Position them as next-generation growth fields and invest management resources to this business obtained from priority and earnings base businesses in these fields.
  • Priority business: Invest management resources  intensively to achieve sales growth and improve profitability further.
  • Earnings base business: Emphasize their profitability and efficiency to maximize cash generation.
    Businesses that are positioned as “non-core” based on their strategy compatibility, growth potential and profitability will be either reinforced to be reclassified as earnings base or considered for sell-off or withdrawal.

Over the three-year period from FY2021 to FY2023, Fujifilm will make growth investments worth 1.2 trillion yen in total, including R&D investments and capital expenditures in “new / potential” and “priority” businesses in particular.

(See 3 below for main measures for each of the segments.)

(2) Strengthening cash flow management
  • Strengthen Fujifilm’s total cash output with the aim of increasing revenue / operating income with ROIC / CCC as an index. In particular, from the perspective of effective utilization of invested capital, the Fujifilm places greater emphasis on ROIC, which indicates management efficiency, and set the FY2023 target of 6.1%.
  • Manage business portfolio and make efficient use of management assets to generate cash flow of one trillion yen in cumulative total over the three-year period, and prioritize growth investments in distributing generated cash.
(3) Entering into new markets for further growth

Continue investing in fields where Fujifilm’s technological strengths can be leveraged, such as AI technology, biotechnology and photo regulation materials technology*1, as the company attempts to enter into new markets.

  • *1 Technology that realizes various optical characteristics by controlling light. It is used in polarizing plate protective films (Display materials) that can expand the viewing angle, and color resists for image sensors (Electronic Materials) that achieve high resolution, low noise, and faithful color reproduction.
(4) Creating stronger integrated business synergies through M&A

Generate integration benefits, such as synergy with FUJIFILM Healthcare, which took over Hitachi’s diagnostic imaging-related business, and acceleration of global operational presence and reinforcement of solution & services business by FUJIFILM Business Innovation.

3. Main measures for each segments

(1) Healthcare
Business fields
Medical Systems, Bio CDMO, Life Sciences (including regenerative medicine and drug discovery support such as cell culture media and reagent), Pharmaceutical Products, Consumer Healthcare (cosmetics and supplements)
FY2023 target
860 billion yen in revenue, 103 billion yen in operating income and 12.0% in operating margin
  • Medical Systems business: Offer an end-to-end solution for various needs at the medical frontline by taking advantage of the expanded product lineup, including CT and MRI. Combine these products with Fujifilm’s technological strengths in image processing and AI to provide even greater value-added solutions centered around medical IT.
  • Bio CDMO business: Cater to a strong demand for biopharmaceuticals by using the industry’s top-level production technology and making large-scale capital investments in areas mainly for antibodies. Newly establish a base for process development and bulk drug substance manufacturing of gene therapeutics in Boston area in the United States, home to a number of pharmaceutical companies that carry out cutting-edge R&D. Provide Bio-CDMO services from early development stages to assist clients’ efforts to develop new drugs.
  • Life Sciences business: Focus on areas where Fujifilm’s strengths can be leveraged, such as cells, culture media and reagents, to deploy a comprehensive solutions business in support of drug discovery. Promote contract development and manufacturing of regenerative medicine products, such as cell therapeutics. In the culture media business, which is performing well in sales for biopharmaceutical manufacturers, establish a tri-polar production structure of the United States, Europe and Japan to reinforce supply capacity and customer support capability.
(2) Materials
Business fields
Electronic Materials, Display Materials, Fine Chemical, Industrial Products, Recording Media, Graphic communication, Inkjet
FY2023 target
720 billion yen in revenue, 95 billion yen in operating income and 13.2% in operating margin
  • Electronic Materials business: Offer a wide range of products that can cater to finer and more integrated cutting-edge semiconductors essential for the development of 5G, AI and self-driving technology, in order to accelerate market share expansion and profitability reinforcement. In the sensor category, pioneer a new market with the electromagnetic wave controlling material called WCM (Wave Control Mosaic) for ranging, in addition to supplying materials for image sensors, for which the company already has a large market share.
  • Display Materials business: Make use of far-reaching technological capability that can even cater to next-generation displays, to create new products that accommodate changes in market conditions. More specifically, apply organic EL materials, for which the company already has a strong market share in smartphone applications, to televisions, and introduce products for in-vehicle displays / VR / AR in order to venture into new categories.
  • Graphic Communication business: On July 1 this year, Fujifilm’s Graphic Systems business will integrate with FUJIFILM Business Innovation’s Production Service business to establish the Graphic Communications Business Division. Combine the Graphic Systems business, which has a broad customer base mainly in the categories of commercial and package printing, with the sales capacity and technological / product strength of the Production Service business, whose strength lies in digital printing technology, to offer an end-to-end analogue and digital solutions to drive the industry’s digitization trend.
(3) Business Innovation
Business fields
Office Solutions, Business Solutions
FY2023 target
820 billion yen in revenue, 82 billion yen in operating income and 10% in operating margin
  • Office Solutions business: Introduce Fujifilm-branded new products to activate the market and expand the company’s market share. In global operational presence, pioneer agencies to expand into new markets in Europe or emerging countries. In addition to marketing Fujifilm-branded products, actively offer OEM supplies to expand global sales opportunities.
  • Business Solutions business: Offer solutions services that cater to customers’ challenges to accelerate business growth. More specifically, provide multifunction devices with advanced security features as a gateway to strengthen linkage with document management and cloud services. Also, expand the delivery of comprehensive IT services to SMB* customers who have IT resource issues. Furthermore, provide services such as high-speed and automated conversion of stored hardcopy documents in large quantities into image data and AI-based auto-sorting of documents to contribute to customers’ work process reforms.
  • * Stands for Small and Medium Business.
(4) Imaging
Business fields
Imaging Solutions
FY2023 target
300 billion yen in revenue, 25 billion yen in operating income and 8.3% in operating margin
  • Tap into Fujifilm’s wide-ranging technological assets that cover fields ranging from imaging devices to photo printing systems and services as the base for creating new products and services.
  • For the instax series of instant cameras, introduce a diverse range of new products and apps or collaborate with different industry sectors to advocate fun usages, thereby expanding the user base. Expand environmentally-considerate dry printing systems, such as inkjet and xerography, to cater to active demand for smartphone printing.
  • Use Fujifilm’s proprietary color reproduction technology to promote the GFX and X series of high-end mirrorless digital cameras, which boast outstanding image quality and portability due to their compact and lightweight design. Also promote images / videos solution business in the categories of surveillance / measurement and digital signage.

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  • * Please note that the contents in this website are current as of the date of the press announcement and may be subject to change without prior notice. Information in each release, including the product availability, specification, prices, contacts, are those at the time of publication.
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