We Will Seize the Opportunity to Provide Value that is Truly Valuable
Chairman and Chief Executive Officer
In fiscal 2014, the Japanese economy was improved despite the increase in the consumption tax. This improvement was supported by measures implemented by the government and the Bank of Japan. Against this backdrop, efforts by companies to significantly expand their revenues were successful. For fiscal 2015,we must maintain this trend by making use of the expertise of the public and private sectors.
Outside of Japan, the U.S. economy has been stable while the EU is facing uncertainties, and the growth of emerging economies has slowed down. China in particular, which has been leading global economic growth, is showing a decrease in its economic growth rate and we must pay attention to the effects of this movement.
Due to the rapid advancement of information technologies,the Japanese economy and the global economy are now influencing each other more rapidly and have unquestionably become inseparably connected.
The Fujifilm Group operates across the world and has bases in 40 countries, with overseas sales accounting for about 60% of the total. Consequently,we need to monitor both the Japanese economy and the global economy, keep check on the influence they have on each other, and incorporate the findings in our business management rapidly.
In contrast to economic globalization and standardization,people's lifestyles and values are becoming more diversified. The key to understanding diversified market needs and creating new businesses and new value is the astute abilities of onsite employees working locally in each region. To ensure the steady growth of business amid dramatic changes in the economy and society, we need to think globally and make use of the abilities of individual employees working locally in each region.
The Fujifilm Group celebrated the 80th anniversary of its founding last year and made a fresh start under its new corporate slogan, “Value from Innovation” to contribute to the development of a sustainable society by creating new value that will meet real customer needs and by resolving social issues. In VISION 2016,our new Medium-Term Management Plan, we set the following business targets: sales of 2.630 trillion yen,an operating income of 220 billion yen, net income of 120 billion yen, and ROE of 7%.
To achieve these targets, we have positioned “Healthcare,” “Highly Functional Materials,” and “Document Solutions” as our core businesses to drive growth in the Group, and have been proactive in promoting sales, creating new products, and investing in these businesses. We are working to boost profitability in all our businesses, and in fiscal 2014, the first year of our Plan, we achieved consolidated sales of 2.492 trillion yen (a year on year increased 2.2%), an operating income of 172.4 billion yen (an increased of 22.4%),and a net income of 118.6 billion yen (an increased of 46.4%), thus making a favorable start to the plan.
We are expanding our “G-up” activities to increase the capabilities of individual employees working onsite,and making the entire Group more competitive.
The business environment is constantly changing,but we will make concerted efforts across the Group to achieve VISION 2016, capitalizing on the abilities of our onsite employees.
Last year, prior to the start of VISION 2016, we launched our Sustainable Value Plan 2016 (SVP 2016),our Medium-Term CSR Plan. In SVP 2016, we made a commitment to implementing new CSR activities in addition to giving consideration to the environment and society in our business processes, including creating value for society and contributing to resolving social issues. We are involved in a range of activities and working to create new businesses based on this Plan.
For global warming, which is a major priority for the international community, we are proactively reducing CO2 emissions by promoting sales of anti-global warming, highly durable photovoltaic backsheets,generating our own electricity on our business sites,and implementing energy-saving measures in our offices and factories.
In the healthcare field, we are strongly committed to the regenerative medicine business to meet unmet medical needs. In fiscal 2014, FUJIFILM Corporation released materials necessary for cell cultivation for regenerative medicine onto the market as a reagent for research use. We also made Japan Tissue Engineering Co., Ltd., the only Japanese company to have obtained government approval for regenerative medicine products, and announced our intention to acquire Cellular Dynamics International, Inc., a world leader in iPS cell technology. By combining these companies'technologies with the findings on collagen and engineering technologies we have accumulated over our many years engaged in the field of photography, we will further expand our business in the field of regenerative medicine. We will continue to make use of the wide range of technologies possessed by our Group and encourage collaboration with a range of organizations and companies to develop and spread products that are valuable to society as we steadily implement SVP2016.
The year 2015 is the deadline year for the eight U.N. Millennium Development Goals (MDGs), which include the eradication of extreme poverty and hunger. In September this year the United Nations will announce the new Sustainable Development Goals (SDGs) to be reached by 2030. Also in December 2015, the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) will be held for the parties to discuss and make agreements on their new greenhouse gas reduction targets for 2020 onwards. All peoples, organizations and companies in the world need to make increasingly swift efforts in their respective capacities to solve the problems of our societies, which are becoming more serious every year.
At the start of this fiscal year, I sent a message to employees to encourage them to reduce lead times by half. It is critical to take prompt action in this constantly changing economic environment and in the face of a variety of interwoven social problems. There is no time to lose if we want to solve global warming and other issues. We must become the first runner keep providing society with new value without delay that we have created through innovation. This is what the Group aims to do through its “Value from Innovation” initiative.
“Sustainable development” is a shared hope of humankind, and companies also need to struggle towards it as going concerns. In the Fujifilm Group we will foster constant innovation in every process of our business activities and provide society with propitious new value without delay in pursuit of sustainable development.