Fujifilm s s R&D Initiatives for Medium to Long-term Growth
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1 Fujifilm s s R&D Initiatives for Medium to Long-term Growth March 29, 2016 FORWARD-LOOKING STATEMENTS Forward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are management s current assumptions and beliefs based on currently available information. Such forward-looking statements are subject to a number of risks, uncertainties, and other factors. Accordingly, actual results may differ materially from those projected due to various factors. 1 Contents 1. R&D Reforms in the Business Restructuring 2. Technological Advantages of Fujifilm 3. Selecting R&D Themes and Creating New Businesses 4. Controlling Efficiencies in R&D 2
2 1. R&D Reforms in the Business Restructuring Structural Reforms in the Second Foundation Coexisting of both Breaking away from silver halide photographs and Utilizing photo related technologies Breaking away from silver halide photographs Business driven development system Smooth transfer of staffs within the Company / Carrier pass Utilizing photo related technologies Cross functional corporate system (Strengthening fundamental and core technologies, promoting new business themes) 3 1. R&D Reforms in the Business Restructuring Actual R&D system Consolidated management by R&D Management Headquarters through clarifying the functions and roles Administration Div. R&D Management HQ Frontier Core-technology Lab. As of March 2016 Synthetic Organic Lab. CEO COO Corporate Lab. Seeking for new products Establishment of fundamental technologies Advanced Research Lab. Advanced Marking Research Lab. Analysis Center Engineering & Development Center Imaging Center Graphic s Business Div. Industrial Products Div. Divisional Lab. Seeking for the developments directly connect to business Highly s Research Lab. Pharmaceutical & Healthcare Research Lab. Regenerative Medicine Research Lab. Highly s Business Development HQ Life Science, Pharmaceuticals Business Div. Regenerative Medicine Development Office Medical s R&D Center Medical s Business Div. Intellectual Property Div. Corporate Planning HQ Intellectual Property Div., Legal Div., International Standards Promotion Office Innovation & Strategy Planning Div. 4
3 1. R&D Reforms in the Business Restructuring R&D policies of FUJIFILM Advanced Research Laboratories Creation of new value through Intellectual Fusion and Innovation : Promoting new business themes Intellectual Fusion Interaction and fusion of diverse areas and technologies Innovation Creation of new differentiating technologies Value Creation Achieving concrete results that will contribute to future societies Opened in April Technological Advantages of Fujifilm and Core Technologies Grain Formation Nano Dispersion Film Formation Imaging Molecules Polymer Core Technologies MEMS Redox Control Coating Forming Bioengineering Imaging Optics Analysis Core Technologies = Resources to win in businesses Technologie s =Physical strength to keep 6
4 2. Technological Advantages of Fujifilm Forming Coating Polymer Molecules Cameras (eyes) Imaging Catching optical information (Mechatronics) Silver halide photographs is an accumulation of various technologies Molecules Film Formation Redox Control Forming Redox Control Nano Dispersion Photographic film (sensor) Recording optical information (Highly functional materials) Molecules Grain Formation Albums (storage) Storing output image (Archiving) Photo prints (printing) Coating Minilabs (development) Converting optical information to image information (Image processing) Outputting image information (Highly functional materials, image processing) 7 2. Technological Advantages of Fujifilm Examples of expansion of core technology (1) Imaging Sensors Mirrorless digital cameras Automotive lenses Security lenses Machine vision camera lenses Endoscopies TV camera lenses Cameras The well-controlled image sensor and optical system producing high-quality images. Providing a total solution, including analysis of the captured image. Imaging Optics Analysis 8
5 2. Technological Advantages of Fujifilm Examples of expansion of core technology (2) Nano Dispersion Nano silver pavement Magnetic materials (Tapes for archiving) Pharmaceuticals (Drug Delivery ) 50nm 20nm Cosmetics, Supplements G B Nano pigment ink Photo emulsion R G Nano-dispersion of about 100 substances that have separate functions, such as to capture light, produce color, and sharpen images, etc. Imaging Optics Analysis 9 2. Technological Advantages of Fujifilm Examples of expansion of core technology (3) Film Formation, Coating CO 2 separation membrane Sensor film for touch panels (EXCLEAR) Film to control specific wavelength light Film for FPD Gas barrier film Photographic film Polarizer 偏光板 WV (on TAC) LCD 液晶セル cells Coating about 20 photosensitive layers on the 180 micron base film uniformly and precisely with the thickness of about 20 microns. (Simultaneous multilayered coating technology) Imaging Optics Analysis 10
6 2. Technological Advantages of Fujifilm Examples of expansion of core technology (4) Bioengineering Toyama Chemical Diosynth Bio. Development/volume production of pharmaceuticals CMO of biopharmaceuticals FUJIFILM RI Pharma CDI Recombinant Peptides (RCP) Gelatin for photo film J-TEC Regenerative medicine Photographic film Research of gelatin for photographic film enabled the manufacturing of gelatin with high quality and high productivity. Autologous cultured epidermis Imaging Optics Analysis Technological Advantages of Fujifilm Medical IT systems In-vitro diagnosis systems (IMMUNO AG1) Examples of expansion of core technology (5) Digital inkjet press (Jet Press) Tera Medica Ultrasound diagnosis systems X-ray diagnostic imaging systems (FCR) Value added printing Dymatix Sonosite Mini lab Image Intelligence TM Instant photo system The technological assets of image processing technologies cultivated through image analysis, evaluation, and digital imaging. Imaging Optics Analysis 12
7 2. Technological Advantages of Fujifilm Healthcare Cosmetic Nutritional supplement DDS Pharmaceuticals Emulsion Micro-capsules RI antibody Recombinant peptide Medical systems X-ray detector Digital X-ray image diagnosis system Laser endoscope system 3D image analysis system Medical imaging network Semi-conductive laser (Frontier) Development Nano Dispersion Cleaner for semiconductor/slurry Bioengineering Digital image processing TV Lens Redox Control Plastic lens (QuickSnap) Optical devices Heat barrier film AgX particle Grain Formation Forming X series digital camera Film Formation Core technologies Optics Analysis Film formation TAC/PET Imaging technologies Imaging CCD X-Trans CMOS Digital imaging Coating Highly functional thin TAC for FPD Photosensitive material coating Polymer Micro Electro s Highly functional PET Molecules Magnetic material coating Polymer for photosensitive materials Color material Jet Press Highly functional materials Barrier film Transparent conductive film Photoresist/ArF photoresist Inkjet ink WV film Backup tape PS plate and CTP material Graphic systems UV ink Selecting R&D Themes and Creating New Businesses KFS for R&D in the 2 nd Foundation Selection and concentration, Appropriate usage of people, things, money Selection and concentration Creating a system for selecting themes ( Stock-taking of technologies and four-quadrant matrix, two-way theme settings, discussion of research plans) Linkage by corporate function (Innovation & Strategy Planning Div.) Appropriate usage of people, things, money Efficient resource allocation (Control by ratio of R&D expenses to revenue, relocation of researchers) 14
8 3. Selecting R&D Themes and Creating New Businesses for selecting themes Stock-taking of technologies four quadrant - New Technologies Existing Technologies Existing Markets New Markets Is it a growing market? Keys to Determine Priority Businesses Do we have the technology to be applied in this area? Can we stay competitive in this area? Selecting R&D Themes and Creating New Businesses Establishment of Innovation & Strategy Planning Div. <Before> R&D Management Headquarters Strategic Corporate Planning Div. Positioning the function of strategy development in R&D Div. <Actual from August 2015 > Corporate Planning Headquarters Strategy group R&D Management Headquarters Ex. Strategic Corporate Planning Div. Innovation & Strategy Planning Div. Deciding resource allocation from management perspective. Subcontracting R&D depending on themes 16
9 3. Selecting R&D Themes and Creating New Businesses Highly s Business Development Headquarters Accelerating creation of new products and businesses in highly functional materials field Established in June 2013 Small project teams mobilizing necessary resources Key words: Small, speedy, less investment, and numerous Continuously creating highly profitable products and businesses Takashi Iwasaki Corporate Vice President, General Manager of Highly s Business Development Headquarters Innovation & Strategy Planning Div. Accelerating development of new businesses in medium-to-long term Established in August 2015 Gathered function of business strategy and technology strategy in the Corporate Planning Headquarters Key word: Open Innovation Global activities Naoto Yanagihara Corporate Vice President, General Manager of Innovation & Strategy Planning Division Selecting R&D Themes and Creating New Businesses Open Innovation Hub: Providing places by five concepts Co-creation with business partners Introducing our fundamental/core technologies and products and technologies under development Combining potential needs and our technologies Proposing innovative technologies, products, and services Fostering innovation 18
10 3. Selecting R&D Themes and Creating New Businesses Achievements of Open Innovation Hub (Jan. 2014~) Over 650 companies visited in two years since its opening 10% of them connected to collaboration (sample works, NDA, sales, etc) Effective for presence improvement (mass media, governments, universities, public institutions, VIPs from overseas, etc) Useful for employee education (about 2,000 employees visited) Global expansion (June 2015: U.S., Jan. 2016: Europe ) Selecting R&D Themes and Creating New Businesses Initiatives for medium to long-term R&D themes Creating total solutions business by Fujifilm s unique value creation through combining wide range of technologies 粒子形成技術 機能性分子 機能性ポリマー 酸化還元制御技術 Seizing issues / needs by backcasting ナノ分散技術 コア Core 精密塗布技術 /Core 製膜技術精密成形技術 technologies Five important issues set by Japanese Cabinet Office (Strategic innovation program) 撮像技術 基盤 システム設計 MEMS 技術 バイオエンジニアリング 材料化学画像光学解析 生化学機械設計生産システムソフト電気 電子 Open Innovation Social issues / needs Healthy life expectancy Secure and robust infrastructure Safe and comfortable movement Environment and energy Food and agriculture Advanced technologies outside of the Company Resolution of issues totally not by individual material/ component but by wider approach 20
11 3. Selecting R&D Themes and Creating New Businesses Examples of medium to long-term R&D themes Fujifilm s unique total solutions in healthcare business field Ex., Field of infectious diseases In-vitro diagnosis systems (IMMUNO AG1) Diagnosis Antibacterial coating solution (Hydro Ag) Infectious disease Prevention Treatment Antimicrobials (Small-molecule pharmaceuticals) Controlling Efficiencies in R&D KFS for R&D in the 2 nd Foundation Selection and concentration, Appropriate usage of people, things, money Selection and concentration Creating a system for selecting themes ( Stock-taking of technologies and four-quadrant matrix, two-way theme settings, discussion of research plans) Linkage by corporate function (Innovation & Strategy Planning Div.) Appropriate usage of people, things, money Efficient resource allocation (Control by ratio of R&D expenses to revenue, relocation of researchers) 22
12 4. Controlling Efficiencies in R&D R&D activities focus on efficiencies Implementing selected R&D themes based on management perspective speedily, utilizing recourses properly - Effective resource allocation Concentrate resources of people, things, money into growth fields - Open Innovation Introducing most-advanced technologies from outside globally while utilizing in-house technologies Implementing open innovation which matches regional characteristics Implementing the open/close strategies of technologies Strengthening management perspective through Innovation & Strategy Planning Division 23
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