Commitment From the Top

Value from Innovation
—Creating new value and contributing to solving social issues as a global corporation—

Shigetaka Komori
Chairman and Chief Executive Officer

[Photo] Shigetaka Komori

Never stopping the progress in business reform

Japan ’s real economic growth in FY2013 stood at 2.3%, rising far above the 0.7% recorded in the previous fiscal year. I believe this is the result of the joint efforts between the government and industry in implementing the structural reform of Japan gradually being felt in various areas. The Japanese government is about to compile its growth strategy consisting of a “Big-Boned Policy,” “Japan Revitalization Strategy” and “Regulatory Reform Implementation Plan,” which the industrial sector must actively apply and work even harder to restore Japan to a course of growth.

At the same time, the growth and stability of Japan has become closely linked to growth and stability in other countries with advances in economic globalization. Japan can no longer focus its attention only on its own prosperity. Once there is stagnation in economic activity or strife in an emerging nation, it immediately impacts the economic and political situation in various industrialized nations. Natural disasters or environmental pollution in one country will impose a heavy burden on all neighboring nations. In the course of the development and growth of a business corporation, region or nation, it is important to shed a self-centered focus only on one ’s own organization or nation and to replace it with a broad perspective extending to the region and to the world and with an awareness to promote coexistence and co-prosperity.

Today, Fujifilm operates in many different parts of the world, and the ratio of our overseas business has reached 57.5% (for FY2013) of consolidated sales. In order to survive the intense global competition and to continue to maintain our status as an “excellent company,” we must pursue continual business reform and embrace change from new perspectives, unconfined by existing approaches and practices, and ultimately engender change itself.

Triggering innovation and creating value

Fujifilm celebrated its 80th anniversary in January 2014. From its birthplace in Minami-ashigara, Kanagawa Prefecture, the company aspired to manufacture photographic films domestically. Since then, it has been promoting business growth as a company trusted by and progressing with society. Founded on its strengths in technology, product development and marketing and on its trusted brand name cultivated through photo film development, Fujifilm is operating in the six business fields of “Healthcare” covering medical equipment, pharmaceuticals, cosmetic products, etc., “Graphic Systems” for printing equipment and materials; “Highly Functional Materials” that include optical film for LCD panels and touch panel parts and materials, “Optical Devices” including TV lenses and optical parts for satellites; “Digital Imaging” featuring digital cameras and photo books; and “Document Solutions” representing Fuji Xerox multifunction devices and solution ervices. Fujifilm has become a corporate group reporting consolidated sales of ¥2.44 trillion, possessing a workforce of 79,000 and with 273 subsidiaries in 40 countries (as of the end of March 2014). We are indebted to the strong support and patronage of our many stakeholders.

In marking our 80th anniversary, we have engaged in exhaustive deliberations into the ideal image for the Fujifilm Group in order to achieve further growth and have decided to express our unified will

in the new corporate slogan: “Value from Innovation.”

Supporting this corporate slogan is our brand statement which pledges our commitment to continuous innovation— creating new technologies, products and services that inspire and excite people everywhere. Our goal is to empower the potential and expand the horizons of tomorrow’s businesses and lifestyles. At the same time, it is a declaration that we ourselves will assemble knowledge and technology both within and outside our Group to create innovation.

Promoting Corporate Social Responsibility (CSR) from a new perspective

In May 2014, Fujifilm compiled and published our mediumrange CSR plan, the “Sustainable Value Plan 2016 (SVP 2016).” Under this plan, we commit to implementing CSR activities from the new perspectives of creating value for society and contributing to resolving social issues through products, services and technology as expressed in the new corporate slogan, “Value from Innovation.”

In the areas of environment, health, everyday living and work style, we plan to place priority on 11 social issues, including measures against global warming, greater access to medical services, building a safe and secure society and promoting diversity. By examining our products, services and technologies and daily business operations from the standpoints of creating value for society and contributing to resolving social issues, we believe that we will be able to identify what we can and what we must do to fulfill our mission in society.

Needless to say, we will continue to direct our energies into reducing our impact on the environment and society, and comprehensive implementation of compliance at the same time. Especially in reducing CO2 emissions, Fujifilm had announced in 2010 its long-term target to reduce CO2 emissions in the product lifecycle by 30% of the 2005 level by the year 2020, and we are continuing to work in concert in our activities to reduce emissions. In FY2013, emissions were reduced by 171,000 tons (3.5%) over 2012, achieving a reduction of 310,000 tons (6.2%) vis-a-vis the 2005 level. This is the result of groupwide efforts to achieve a reduction in CO2 emissions and in costs through the development and promotion of products with a lower environmental impact, reductions in CO2 emissions in our factories and offices, recycling raw materials and products, greater distribution efficiency, and other measures.

These activities will be promoted further to achieve our 2020 goal.

Contributing to building a sustainable society

According to a report recently published by the Intergovernmental Panel on Climate Change (IPCC), “there is no doubt that the climate system is warming.” We can no longer afford to wait to implement measures to resolve global warming. In order to achieve the sustainable development that is the desire of all mankind, people and organizations must make their own efforts from their respective standpoints.

As a manufacturing business, Fujifilm’s role is to address these issues with innovative products, services and technologies. SVP 2016 expresses our resolve to have all employees uphold the perspective of resolving social issues to create innovation.

The demands of society toward business enterprises change with time. We are now under scrutiny not only for our financial figures on sales, profits, etc., but also on how products and services that our business delivers are creating value to society and contributing to resolving social issues. We do not intend to be satisfied with the status quo but will pay careful attention to global conditions, the awareness and ways of thinking of people and the changes in global trends. We will create innovation continually in all our business processes, including R&D, manufacturing and sales and staff operations to create new value for our customers and society and contribute to building a sustainable society.

August 2014