New Management Structure for Fujifilm Group Starts on October 1
with a new holding company “FUJIFILM Holdings Corporation” at the core
September 19, 2006
The Fujifilm Group is actively implementing a full spectrum of policies and measures based on its midterm management plan, VISION75 (2006), which articulates three fundamental strategies: “Implementing comprehensive structural reforms,” “Building new growth strategies,” and “Enhancing consolidated management.” The drastic structural reforms being implemented in the Imaging Solutions segment since last fiscal year for the purpose of preserving and nurturing the culture of photography have been progressing favorably at a pace that surpasses the original plan, and are gradually leading to improvements in the revenue structure. Aiming toward “building new growth strategies,” Fujifilm Group is now making further headway toward new growth strategies. It annually invests approximately 200 billion yen in R&D, approximately 200 billion yen goes into capital investment, approximately 100 billion yen into M&A and approximately 65 billion yen into environmental investment in such key growth business fields as medical and life sciences, documents, graphic arts, highly-functional materials and optical devices. Furthermore, vigorous implementation of measures for “enhancing consolidated management” has also been undertaken. These measures include consolidation of subsidiaries involved in sales, equipment manufacture and logistics, as well as Sankyo Chemical and Fujinon becoming wholly owned subsidiaries and implementation of the CMS (cash management system) on a consolidated accounting basis. Steps on an even larger scale to dynamically “enhance consolidated management” will be considered for the Fujifilm Group with the transition to the new management structure on October 1.
Fujifilm Holdings will provide 1) ”management strategy functions” which formulate business/ functional strategies for the entire Group, and promote growth strategies and structural reforms with the operating companies, 2) “technical strategy functions” for the management of technology and intellectual strategies to realize a more advanced fusion of various proprietary technologies owned by the Fujifilm Group companies, and 3) “corporate support functions” to promote the enhancement of communications with stakeholders and oversee corporate social responsibility (CSR). Through the implementation of these functions, the Fujifilm Group aims to further advance its business through the pursuit of the overall optimization of the group. Furthermore, to enhance governance of the group management, Fujifilm Holdings will deliberate on critical agendas for the operating companies from a standpoint that is concerned with optimization for the entire group. A “CSR Committee” will also be established to make decisions on group policies, thereby raising the synergistic effect between the CSR activities of Fujifilm and Fuji Xerox, which are being aggressively implemented by both companies. With Fujifilm Holdings at its core, the Fujifilm group will work to maximize the synergistic effect by “increasing areas of synergy among group companies,” “realizing lean and solid management organization” and “"cultivation and effective utilization of personnel" thus enhancing strategic management for the entire group.
With the positive impact of structural reforms, further expansion of businesses in the Information Solutions segment and rapid growth in the Document Solutions segment, as well as the consolidated power of the group through the new management structure, the Fujifilm Group anticipates a V-shaped recovery for FY2007. It aims to achieve a record-high operating profit of 200 billion yen in fiscal 2007. Furthermore, it aims to achieve revenue of over 3,150 billion and an operating profit of over 250 billion yen by fiscal 2009, which marks the year for the completion of the midterm management plan and the 75th anniversary of the founding of the company.
This 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.
Fuji Photo Film Co., Ltd.
Public Relations Division
Japanese : http://fujifilm.jp/
English : http://www.fujifilm.com/