2a:I[566771,["/_next/static/immutable/chunks/07b8ue4-gexxm.js","/_next/static/immutable/chunks/12z8-thcbzkt8.js","/_next/static/immutable/chunks/408um0f5kb-_e.js","/_next/static/immutable/chunks/1o0ma613q5ory.js","/_next/static/immutable/chunks/0l6gnzlx3wphi.js","/_next/static/immutable/chunks/1f-i91mpc5xnr.js","/_next/static/immutable/chunks/26aq22fxm4y05.js","/_next/static/immutable/chunks/348k0frvx_j1d.js","/_next/static/immutable/chunks/3sxpspxzc8esg.js","/_next/static/immutable/chunks/2xt9e7rq5-7sh.js","/_next/static/immutable/chunks/2wby2fkqhmaxq.js","/_next/static/immutable/chunks/1f03k49_sdi1z.js","/_next/static/immutable/chunks/0vljqs-5m9fz0.js","/_next/static/immutable/chunks/3x2u5vtyq4pe4.js","/_next/static/immutable/chunks/0_v__yil9i2bb.js","/_next/static/immutable/chunks/31z1asu9u1h9n.js","/_next/static/immutable/chunks/042sw2asyhpwb.js","/_next/static/immutable/chunks/135nok3wxlv3n.js","/_next/static/immutable/chunks/17qohmd84ly75.js","/_next/static/immutable/chunks/384qbnyq0q7k5.js","/_next/static/immutable/chunks/0sm5neguadrpt.js","/_next/static/immutable/chunks/15o0cnfhk-7qz.js","/_next/static/immutable/chunks/1vm-wh-g67j6m.js","/_next/static/immutable/chunks/2pb6rnwavnpky.js","/_next/static/immutable/chunks/3bkwrp8h1tb9_.js","/_next/static/immutable/chunks/3_wzmqceay9yd.js","/_next/static/immutable/chunks/0oqn364m9froo.js","/_next/static/immutable/chunks/1sr25o4yo3puk.js","/_next/static/immutable/chunks/13zki0xsw8b9e.js","/_next/static/immutable/chunks/146d5y1zli9ah.js","/_next/static/immutable/chunks/3pd3urbi6uvh8.js","/_next/static/immutable/chunks/40uarj5gr5gen.js","/_next/static/immutable/chunks/31-9kpvfwt-xt.js","/_next/static/immutable/chunks/1mvukyujm2es0.js","/_next/static/immutable/chunks/3yi49tzehcwp5.js"],"ProfileTrackerWrapper"] 2b:I[411527,["/_next/static/immutable/chunks/07b8ue4-gexxm.js","/_next/static/immutable/chunks/12z8-thcbzkt8.js","/_next/static/immutable/chunks/408um0f5kb-_e.js","/_next/static/immutable/chunks/1o0ma613q5ory.js","/_next/static/immutable/chunks/0l6gnzlx3wphi.js","/_next/static/immutable/chunks/1f-i91mpc5xnr.js","/_next/static/immutable/chunks/26aq22fxm4y05.js","/_next/static/immutable/chunks/348k0frvx_j1d.js","/_next/static/immutable/chunks/3sxpspxzc8esg.js","/_next/static/immutable/chunks/2xt9e7rq5-7sh.js","/_next/static/immutable/chunks/2wby2fkqhmaxq.js","/_next/static/immutable/chunks/1f03k49_sdi1z.js","/_next/static/immutable/chunks/0vljqs-5m9fz0.js","/_next/static/immutable/chunks/3x2u5vtyq4pe4.js","/_next/static/immutable/chunks/0_v__yil9i2bb.js","/_next/static/immutable/chunks/31z1asu9u1h9n.js","/_next/static/immutable/chunks/042sw2asyhpwb.js","/_next/static/immutable/chunks/135nok3wxlv3n.js","/_next/static/immutable/chunks/17qohmd84ly75.js","/_next/static/immutable/chunks/384qbnyq0q7k5.js","/_next/static/immutable/chunks/0sm5neguadrpt.js","/_next/static/immutable/chunks/15o0cnfhk-7qz.js","/_next/static/immutable/chunks/1vm-wh-g67j6m.js","/_next/static/immutable/chunks/2pb6rnwavnpky.js","/_next/static/immutable/chunks/3bkwrp8h1tb9_.js","/_next/static/immutable/chunks/3_wzmqceay9yd.js","/_next/static/immutable/chunks/0oqn364m9froo.js","/_next/static/immutable/chunks/1sr25o4yo3puk.js","/_next/static/immutable/chunks/13zki0xsw8b9e.js","/_next/static/immutable/chunks/146d5y1zli9ah.js","/_next/static/immutable/chunks/3pd3urbi6uvh8.js","/_next/static/immutable/chunks/40uarj5gr5gen.js","/_next/static/immutable/chunks/31-9kpvfwt-xt.js","/_next/static/immutable/chunks/1mvukyujm2es0.js","/_next/static/immutable/chunks/3yi49tzehcwp5.js"],"default"] 2c:T1178,Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Gemeinsamen Verschmelzungsplans vom 14.02.2011 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung und der Gesellschafterversammlung des übertragenden Rechtsträgers vom selben Tage mit der Fujifilm España, S.A.U. mit Sitz in Barcelona/Spanien (Handelsregister Barcelona/Spanien, Registro Mercantil de Barcelona, Band 704, Blatt 78, Buch 241, Eintrag 1) verschmolzen. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Gemeinsamen Verschmelzungsplans vom 29.07.2011 sowie der Zustimmungsbeschlüsse ihrer und der Gesellschafterversammlung des übertragenden Rechtsträgers vom selben Tage mit der FUJIFILM Portugal, Lda. mit Sitz in Vila Nova de Gaia/Portugal (Handelsregisterbehörde Vila Nova de Gaia/Portugal, Conservatória do Registo Comercial de Vila Nova de Gaia, Nr. 500.134.936) verschmolzen. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Verschmelzungsvertrages vom 23.07.2012 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung und der Gesellschafterversammlung des übertragenden Rechtsträgers vom selben Tage mit der Graphischer Dienst DIEMER & KOCH GmbH mit Sitz in Bielefeld (AG Bielefeld, HRB 35620) verschmolzen. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Verschmelzungsplans vom 08.12.2014 sowie des Zustimmungsbeschlusses ihrer Gesellschafterversammlung vom 08.12.2014 und der Generalversammlung des übertragenden Rechtsträgers vom 08.12.2014 mit der Fujifilm Sericol Austria Ges.m.b.H. mit Sitz in Wien/Österreich (Firmenbuch des Handelsgerichts Wien unter FN 122895 d) verschmolzen. Die Voraussetzungen der Verschmelzung nach deutschem Recht liegen vor. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Verschmelzungsplans vom 24.11.2015 sowie der Zustimmungsbeschlüsse ihrer und der Gesellschafterversammlung des übertragenden Rechtsträgers vom selben Tage mit der Fujifilm Seriol Espana, S.L mit Sitz in in Barcelona/Spanien (Handelsregister Barcelona Bd. 42, 152, Bl. 183, Seite B-122,860) verschmolzen. Die Voraussetzungen der Verschmelzung nach deutschem Recht liegen vor. Die Gesellschaft hat nach Maßgabe des Spaltungs- und Übernahmevertrages vom 19.11.2020 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung vom 19.11.2020 und der Gesellschafterversammlung des übertragenden Rechtsträgers vom 19.11.2020 Teile des Vermögens der FUJIFILM medwork GmbH mit Sitz in Höchstadt a.d. Aisch (Amtsgericht Fürth, HRB 8407), nämlich den Betriebsteil "Vertrieb Deutschland", als Gesamtheit im Wege der Umwandlung durch Abspaltung übernommen. Die Gesellschaft hat nach Maßgabe des Spaltungs- und Übernahmevertrages vom 26.09.2023 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung und der Gesellschafterversammlung der FUJIFILM Healthcare Europe GmbH vom selben Tage einen Teil ihres Vermögens, nämlich das europäische Medizin-Geschäft, als Gesamtheit im Wege der Umwandlung durch Abspaltung auf die FUJIFILM Healthcare Europe GmbH mit Sitz in Ratingen (AG Düsseldorf, HRB 98806) als übernehmenden Rechtsträger übertragen. Die Gesellschaft hat nach Maßgabe des Spaltungs- und Übernahmevertrages vom 01.10.2024 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung vom 01.10.2024 und der Gesellschafterversammlung des übernehmenden Rechtsträgers vom 01.10.2024 Teile ihres Vermögens, nämlich den Geschäftsbereich "German Medical" / "Betriebsteil DX", als Gesamtheit im Wege der Umwandlung durch Abspaltung auf die FUJIFILM Healthcare Deutschland GmbH mit Sitz in Ratingen (Amtsgericht Düsseldorf, HRB 106021) als übernehmenden Rechtsträger übertragen. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Verschmelzungsvertrages vom 07.07.2011 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung vom 07.07.2011 und der Gesellschafterversammlung des übertragenden Rechtsträgers vom 07.07.2011 mit der Fujinon (Europe) GmbH mit Sitz in Willich (AG Krefeld, HRB 5328) verschmolzen. Die Gesellschaft ist als übernehmender Rechtsträger nach Maßgabe des Verschmelzungsvertrages vom 28.11.2013 sowie der Zustimmungsbeschlüsse ihrer Gesellschafterversammlung vom 18.11.2013 und der Gesellschafterversammlung des übertragenden Rechtsträgers vom 28.11.2013 mit der FUJIFILM Sericol Deutschland GmbH mit Sitz in Köln (AG Köln, HRB 67835) verschmolzen.2d:T6cca2,

FUJIFILM Europe GmbH

Ratingen

Befreiender Konzernabschluss gem. § 292 HGB
zum Geschäftsjahr vom 01.04.2020 bis zum 31.03.2021

FUJIFILM Holdings Corporation

Tokio/Japan

This document is a translation of the Consolidated Financial Statements in the "YUKASHOKEN HOKOKUSHO" originally issued in Japanese.

Consolidated Financial Statements

FUJIFILM Holdings Corporation and Subsidiaries

March 31, 2021
with Report of Independent Auditors

[English Translation of the Independent Auditor's Report Originally Issued in Japanese Language]

Independent Auditor's Report on the Consolidated Financial Statements

June 30, 2021

The Board of Directors of FUJIFILM Holdings Corporation

KPMG AZSA LLC

Tokyo Office, Japan

Hiroto Kaneko(Seal)

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

Tomoyasu Sugisaki(Seal)

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

Yusuke Matsumoto(Seal)

Designated Limited Liability Partner Engagement Partner

Certified Public Accountant

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of FUJIFILM Holdings Corporation ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") provided in the "Financial Information" section in the company's Annual Report, which comprise the consolidated balance sheet as at March 31, 2021 and the consolidated statement of income, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes to the consolidated financial statements, and supplementary schedules, in accordance with Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2021, and its consolidated financial performance and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America pursuant to Paragraph 3 of the Supplementary Provisions of the Cabinet Office Ordinance for Partial Amendment of the Regulations for Terminology, Forms and Preparation Methods of Consolidated Financial Statements (the Cabinet Office Ordinance No.11 of 2002).

Basis for Opinion

We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Appropriateness of the Company's judgment as to whether an impairment loss should be recognized on the goodwill allocated to the Healthcare & Material Solutions business
The key audit matter	How the matter was addressed in our audit

In the consolidated balance sheet for the fiscal year ended March 31, 2021, FUJIFILM Holdings Corporation recognized goodwill of ¥568,094 million related to the Healthcare & Material Solutions business, which represented approximately 16.0% of total assets in the consolidated financial statements. As described in Note 2 (10), "Goodwill and Other Intangible Assets" to the consolidated financial statements, for goodwill, the Company assesses whether it is impaired (impairment test) as of January 1 each year, in addition to when objective facts or changes in circumstances indicate that its fair value may fall below the carrying amount. The fair value is measured based on discounted present value of future cash flows. Future cash flows are estimated based on the medium-term management plan approved by the Board of Directors. The medium-term management plan has been formulated to reflect not only the sales plan, which has been based on information by external research organizations on market growth rates, and the market environment by product category, but also the changes in manufacturing cost and selling, general and administrative on the basis of that plan. In the medium-term management plan, the medical systems related business and the bio CDMO related business are expected to lead the growth of sales in the healthcare field and develop this field. In addition, the materials field is expected to further expand sales by maintaining the competitive advantage of existing businesses, and moreover harnessing unique technological prowess and releasing highly profitable products that meet market needs in a timely manner. Future sales forecasts in the plan involve high uncertainties in market growth in the healthcare field, intensifying competition with competing companies in the materials field and others, and require significant judgments by management. In addition, selecting appropriate models and input data for estimating the discount rate used to calculate the fair value requires a high degree of expertise in valuation. We, therefore, determined that our assessment of the appropriateness of the Company's judgment as to whether an impairment loss should be recognized on goodwill allocated to the Healthcare & Material Solutions business was one of the most significant in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter. In the consolidated balance sheet for the fiscal year ended March 31, 2021, FUJIFILM Holdings Corporation recognized goodwill of ¥236,105 million related to the Document Solutions business, which represented approximately 6.7% of total assets in the consolidated financial statements. As described in Note 2 (10) "Goodwill and Other Intangible Assets" to the consolidated financial statements, for goodwill, the Company assesses whether it is impaired (impairment test) as of January 1 each year, in addition to when objective facts or changes in circumstances indicate that its fair value may fall below the carrying amount. The fair value is measured based on discounted present value of future cash flows. Future cash flows are estimated based on the medium-term management plan approved by the Board of Directors. The medium-term management plan has been formulated to reflect not only the sales plan, which has been based on information by external research organizations on market growth rates, and the market environment by product category, but also the changes in manufacturing cost and selling, general and administrative, on the basis of that plan. In the medium-term management plan, the Company aims for sales growth by maintaining its competitive advantage through enhancing the product lineup providing solutions for challenges at office, promoting research and development of unique technologies in the document field that supports it, developing collaboration with IT service companies, and other means. Future sales forecasts in the plan involve high uncertainties in major changes in the market environment due to a decline in demand for office printing resulting from digitalization of customer companies' operation processes and spread of remote work to prevent infection of COVID-19, and fiercer competition in the office equipment market, and require significant judgments by management. In addition, selecting appropriate models and input data for estimating the discount rate used to calculate the fair value requires a high degree of expertise in valuation. We, therefore, determined that our assessment of the appropriateness of the Company's judgment as to whether an impairment loss should be recognized on goodwill allocated to the Document Solutions business was one of the most significant in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.	The primary audit procedures we performed to assess whether the Company's judgment with respect to the recognition of an impairment loss on goodwill allocated to the Healthcare & Material Solutions business was appropriate included the following: (1) Internal control testing We evaluated the effectiveness of design and operation of key internal controls related to estimate of fair value for the Healthcare & Material Solutions business in impairment test of goodwill, especially focusing on controls related to estimate of future cash flows of the Healthcare & Material Solutions business (including formulation of the medium-term management underlying the estimate). (2) Assessment of the reasonableness of the estimated fair value To evaluate significant assumptions in the formulation of the medium-term management plan for the Healthcare & Material Solutions business underlying the estimate of future cash flows, we mainly performed the following audit procedures: • We made inquiries to management as to grounds for significant assumptions used in the formulation of the medium-term management plan for the Healthcare & Material Solutions business and how risks were reflected in the medium-term management plan based on the market environment by product category, and inspected relevant documents. • As for market growth rates used for future sales forecasts in the medium-term management plan for the Healthcare & Material Solutions business, we carefully examined the management's assumptions for each of the healthcare and material segments by checking consistency with data on forecasts of market growth released by external organizations. • Based on the results of our assessment of the reasonableness of major assumptions and the causes of the differences between the actual achievements and planned figures in the past business plans, we independently estimated future cash flows by incorporating certain uncertainties into the medium-term management plan and compared them with those estimated by management. • We compared the total fair value of each reporting unit with the market capitalization of the Company. Furthermore, we performed the following procedures by engaging valuation specialists within our domestic network firms to assist our evaluation of the discount rate: • As for the calculation method for the discount rate, we assessed its appropriateness based on the inputs and requirements of the applicable accounting standards and others. • As for input data associated with the Healthcare & Material Solutions business used to calculate the discount rate, we assessed the reasonableness by checking the input data against valuation reports that the Company obtained from external organizations and the data that valuation specialists independently obtained. The primary audit procedures we performed to assess whether the Company's judgment with respect to the recognition of an impairment loss on goodwill allocated to the Document Solutions business was appropriate included the following: (1) Internal control testing We evaluated the effectiveness of design and operation of key internal controls related to estimate of fair value for the Document Solutions business in impairment test of goodwill, especially focusing on controls related to estimate of future cash flows of the Document Solutions business (including formulation of the medium-term management plan underlying the estimate). (2) Assessment of the reasonableness of the estimated fair value To evaluate significant assumptions in the formulation of the medium-term management plan for the Document Solutions business underlying the estimate of future cash flows, we mainly performed the following audit procedures: • We made inquiries to management as to grounds for significant assumptions used in the formulation of the medium-term management plan for the Document Solutions business and how risks were reflected in the medium-term management plan based on the market environment by product category, and inspected relevant documents. • As for demand for printing, growth rates of the office equipment market and other factors used for future sales forecasts in the medium-term management plan for the Document Solutions business, we carefully examined the management's assumptions by checking consistency with data on forecasts of market growth released by external organizations. • Based on the results of our assessment of the reasonableness of major assumptions and the causes of the differences between the actual achievements and planned figures in the past business plans, we independently estimated future cash flows by incorporating certain uncertainties into the medium-term management plan, and compared them with those estimated by management. • We compared the total fair value of each reporting unit with the market capitalization of the Company. Furthermore, we performed the following procedures by engaging valuation specialists within our domestic network firms to assist our evaluation of the discount rate: • As for the calculation method for the discount rate, we assessed its appropriateness based on the inputs and requirements of the applicable accounting standards and others. • As for input data associated with the Document Solutions business used to calculate the discount rate, we assessed the reasonableness by checking the input data against valuation reports that the Company obtained from external organizations and the data that valuation specialists independently obtained.

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern in accordance with accounting principles generally accepted in the United States of America.

Corporate auditors and the board of corporate auditors are responsible for overseeing the directors' performance of their duties including the implementation and maintenance of the Group's financial reporting process.

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process to perform the following:

―	Identify and assess the risks of material misstatement, whether due to fraud or error, design and perform audit procedures responsive to those risks. The procedures selected depend on our judgement, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
―	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.
―	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
―	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
―	Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with accounting principles generally accepted in the United States of America, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
―	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with corporate auditors and the board of corporate auditors regarding, among other matters, the planned scope and timing of the audit, significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide corporate auditors and the board of corporate auditors with a statement that we have complied with relevant ethical requirements in Japan regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards in order to eliminate or reduce obstruction factors.

From the matters communicated with corporate auditors and the board of corporate auditors, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Interest in the company

Our firm and its designated engagement partners do not have any interest in the Group which are required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the reader of audit report:

The Independent Auditor's Report herein is the English translation of the Independent Auditor's Report on the Consolidated Financial Statements as required by the Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan ("the FIEAJ") and does not include the English translation of the Independent Auditor's Report on the internal control audits as required by the Article 193-2, Paragraph 2 of the FIEAJ.

FUJI FUJIFILM Holdings Corporation states that internal control over financial reporting was effective as at March 31, 2021 in the Internal Control Report

Consolidated Balance Sheets

	March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Assets
Current assets:
Cash and cash equivalents	¥ 394,795	¥ 396,091	$ 3,556,712
Notes and accounts receivable:
Trade (Note 22)	574,319	524,120	5,174,045
Lease receivables (Notes 5 and 21)	51,644	55,419	465,261
Affiliated companies	2,462	2,640	22,180
Allowance for doubtful receivables (Notes 5 and 21)	(22,707)	(23,761)	(204,568)
Inventories (Note 7)	417,662	380,911	3,762,721
Prepaid expenses and other (Notes 18, 19 20 and 22)	89,201	153,783	803,613
Total current assets	1,507,376	1,489,203	13,579,964
Investments and long-term receivables:
Investments in and advances to affiliated companies (Note 8)	31,849	27,770	286,928
Investment securities (Notes 4 and 20)	111,650	87,209	1,005,856
Long-term lease receivables (Notes 5 and 21)	62,068	61,724	559,171
Other long-term receivables (Notes 18, 19 and 20)	25,426	30,497	229,063
Allowance for doubtful receivables (Notes 5 and 21)	(3,167)	(4,067)	(28,532)
Total investments and long-term receivables	227,826	203,133	2,052,486
Property, plant and equipment (Notes 2, 6 and 20):
Land	105,764	96,776	952,829
Buildings and structures	718,513	732,716	6,473,090
Machinery, equipment and other	1,474,840	1,478,270	13,286,847
Construction in progress	63,913	47,481	575,793
Subtotal	2,363,030	2,355,243	21,288,559
Less accumulated depreciation	(1,727,779)	(1,754,696)	(15,565,577)
Total property, plant and equipment	635,251	600,547	5,722,982
Other assets:
Operating lease right-of-use assets (Note 6)	78,203	75,261	704,532
Goodwill, net (Notes 9 and 23)	804,199	687,155	7,245,036
Other intangible assets, net (Notes 9 and 20)	128,496	142,071	1,157,622
Deferred income taxes (Note 12)	33,179	37,811	298,910
Other (Notes 2, 9, 11 and 22)	134,673	86,511	1,213,270
Total other assets	1,178,750	1,028,809	10,619,370
Total assets	¥3,549,203	¥3,321,692	$31,974,802
Liabilities and equity
Current liabilities:
Short-term debt (Notes 6, 10 and 19)	¥ 63,729	¥ 120,998	$ 574,135
Notes and accounts payable:
Trade	217,308	195,214	1,957,730
Construction	21,157	25,360	190,604
Affiliated companies	1,455	1,724	13,108
Accrued income taxes (Note 12)	24,527	24,893	220,964
Accrued liabilities (Notes 11 and 24)	197,519	171,989	1,779,450
Short-term operating lease liabilities (Note 6)	28,938	25,696	260,703
Other current liabilities (Notes 15, 18, 19, 20 and 22)	161,651	94,133	1,456,315
Total current liabilities Non-current liabilities:	716,284	660,007	6,453,009
Long-term debt (Notes 6, 10 and 19)	439,351	503,171	3,958,117
Accrued pension and severance costs (Note 11)	30,090	33,818	271,081
Long-term operating lease liabilities (Note 6)	54,946	52,652	495,009
Deferred income taxes (Note 12)	32,240	21,558	290,450
Other non-current liabilities
(Notes 12, 18, 19, 20 and 22)	54,135	56,729	487,703
Total non-current liabilities	610,762	667,928	5,502,360
Total liabilities	1,327,046	1,327,935	11,955,369
Commitments and contingent liabilities (Note 15)
Equity (Note 13):
FUJIFILM Holdings shareholders' equity:
Common stock, without par value:
Authorized: 800,000,000 shares
Issued: 514,625,728 shares	40,363	40,363	363,631
Retained earnings	2,702,760	2,563,091	24,349,189
Accumulated other comprehensive income (loss) (Notes 2, 11, 14 and 18)	(52,836)	(164,100)	(476,000)
Treasury stock, at cost (114,823,247 shares in 2021; 114,914,288 shares in 2020)	(485,721)	(486,102)	(4,375,865)
Total FUJIFILM Holdings shareholders' equity	2,204,566	1,953,252	19,860,955
Noncontrolling interests	17,591	40,505	158,478
Total equity	2,222,157	1,993,757	20,019,433
Total liabilities and equity	¥3,549,203	¥3,321,692	$31,974,802

Consolidated Statements of Income

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Revenue (Notes 2, 5 and 22)	¥2,192,519	¥2,315,141	$19,752,423
Cost of sales (Notes 6, 20 and 24)	1,322,828	1,360,648	11,917,369
Gross profit	869,691	954,493	7,835,054
Operating expenses:
Selling, general and administrative (Notes 2, 6, 9, 17, 20, 23 and 24)	552,068	610,043	4,973,585
Research and development	152,150	157,880	1,370,721
	704,218	767,923	6,344,306
Operating income	165,473	186,570	1,490,748
Other income (expenses):
Interest and dividend income	3,884	5,183	34,991
Interest expense (Notes 14 and 18)	(2,578)	(2,316)	(23,225)
Foreign exchange gains (losses), net (Notes 14 and 18)	(2,593)	(2,133)	(23,360)
Gains (losses) on equity securities, net (Notes 4 and 14)	48,778	(22,084)	439,441
Other, net (Notes 14 and 18)	22,906	7,851	206,360
	70,397	(13,499)	634,207
Income before income taxes	235,870	173,071	2,124,955
Income taxes (Note 12):
Current	47,973	42,822	432,189
Deferred	7,638	(6,708)	68,811
	55,611	36,114	501,000
Equity in net income (loss) of affiliated companies	3,198	1,341	28,811
Net income	183,457	138,298	1,652,766
Less: Net income attributable to noncontrolling interests	(2,252)	(13,311)	(20,288)
Net income attributable to FUJIFILM Holdings	¥ 181,205	¥ 124,987	$ 1,632,478

	(Yen)		(U.S. dollars) (Note 3)
Amounts per share of common stock:
Net income attributable to FUJIFILM Holdings (Note 16):
Basic	¥453.28	¥306.18	$4.08
Diluted	451.75	305.22	4.07
Cash dividends declared	100.00	95.00	0.90

Consolidated Statements of Comprehensive Income

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Net income	¥183,457	¥138,298	$1,652,766
Other comprehensive income (loss), net of tax (Note 14):
Net unrealized gains (losses) on securities	12	(9)	108
Foreign currency translation adjustments	80,635	(50,279)	726,442
Pension liability adjustments	31,786	142	286,360
Net unrealized gains (losses) on derivatives	336	137	3,027
Total	112,769	(50,009)	1,015,937
Comprehensive income	296,226	88,289	2,668,703
Less: Comprehensive income attributable to noncontrolling interests	(3,757)	(8,800)	(33,847)
Comprehensive income attributable to FUJIFILM Holdings	¥292,469	¥ 79,489	$2,634,856

Consolidated Statements of Changes in Equity

	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock	FUJIFILM Holdings shareholders' equity
				(Millions of yen)
Balance as of April 1, 2019	¥40,363	¥24,494	¥2,507,719	¥(100,593)	¥(435,020)	¥2,036,963
Comprehensive income (loss):
Net income	-	-	124,987	-	-	124,987
Net unrealized gains (losses) on securities (Note 14)	-	-	-	(9)	-	(9)
Foreign currency translation adjustments (Note 14)	-	-	-	(45,489)	-	(45,489)
Pension liability adjustments (Note 14)	-	-	-	(122)	-	(122)
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	122	-	122
Comprehensive income						79,489
Purchases of treasury stock	-	-	-	-	(51,624)	(51,624)
Sales of treasury stock	-	-	(113)	-	542	429
Dividends paid to FUJIFILM Holdings shareholders	-	-	(38,432)	-	-	(38,432)
Dividends paid to noncontrolling interests	-	-	-	-	-	-
Stock acquisition rights	-	452	-	-	-	452
Transfer from retained earnings to additional paid-in capital	-	31,070	(31,070)	-	-	-
Equity transactions with noncontrolling interests and other	-	(56,016)	-	(18,009)	-	(74,025)
Balance as of March 31, 2020	¥40,363	¥ -	¥2,563,091	¥(164,100)	¥(486,102)	¥1,953,252
Comprehensive income (loss):
Net income	-	-	181,205	-	-	181,205
Net unrealized gains (losses) on securities (Note 14)	-	-	-	12	-	12
Foreign currency translation adjustments (Note 14)	-	-	-	79,174	-	79,174
Pension liability adjustments (Note 14)	-	-	-	31,742	-	31,742
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	336	-	336
Comprehensive income						292,469
Purchases of treasury stock	-	-	-	-	(20)	(20)
Sales of treasury stock	-	-	(32)	-	401	369
Dividends paid to FUJIFILM Holdings shareholders	-	-	(39,979)	-	-	(39,979)
Dividends paid to noncontrolling interests	-	-	-	-	-	-
Stock acquisition rights	-	485	-	-	-	485
Transfer from retained earnings to additional paid-in capital	-	1,525	(1,525)	-	-	-
Equity transactions with noncontrolling interests and other	-	(2,010)	-	-	-	(2,010)
Balance as of March 31, 2021	¥40,363	¥ -	¥2,702,760	¥ (52,836)	¥(485,721)	¥2,204,566
Balance as of March 31, 2020	$363,631	$ -	$23,090,910	$(1,478,378)	$(4,379,298)	$17,596,865
Comprehensive income (loss):
Net income	-	-	1,632,478	-	-	1,632,478
Net unrealized gains (losses) on securities (Note 14)	-	-	-	108	-	108
Foreign currency translation adjustments (Note 14)	-	-	-	713,279	-	713,279
Pension liability adjustments (Note 14)	-	-	-	285,964	-	285,964
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	3,027	-	3,027
Comprehensive income						2,634,856
Purchases of treasury stock	-	-	-	-	(180)	(180)
Sales of treasury stock	-	-	(289)	-	3,613	3,324
Dividends paid to FUJIFILM Holdings shareholders	-	-	(360,171)	-	-	(360,171)
Dividends paid to noncontrolling interests	-	-	-	-	-	-
Stock acquisition rights	-	4,369	-	-	-	4,369
Transfer from retained earnings to additional paid-in capital	-	13,739	(13,739)	-	-	-
Equity transactions with noncontrolling interests and other	-	(18,108)	-	-	-	(18,108)
Balance as of March 31, 2021	$363,631	$ -	$24,349,189	$ (476,000)	$(4,375,865)	$19,860,955

	Noncontrolling interests	Total equity
Balance as of April 1, 2019	¥207,878	¥2,244,841
Comprehensive income (loss):
Net income	13,311	138,298
Net unrealized gains (losses) on securities (Note 14)	-	(9)
Foreign currency translation adjustments (Note 14)	(4,790)	(50,279)
Pension liability adjustments (Note 14)	264	142
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	15	137
Comprehensive income	8,800	88,289
Purchases of treasury stock	-	(51,624)
Sales of treasury stock	-	429
Dividends paid to FUJIFILM Holdings shareholders	-	(38,432)
Dividends paid to noncontrolling interests	(9,813)	(9,813)
Stock acquisition rights	-	452
Transfer from retained earnings to additional paid-in capital	-	-
Equity transactions with noncontrolling interests and other	(166,360)	(240,385)
Balance as of March 31, 2020	¥ 40,505	¥1,993,757
Comprehensive income (loss):
Net income	2,252	183,457
Net unrealized gains (losses) on securities (Note 14)	-	12
Foreign currency translation adjustments (Note 14)	1,461	80,635
Pension liability adjustments (Note 14)	44	31,786
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	336
Comprehensive income	3,757	296,226
Purchases of treasury stock	-	(20)
Sales of treasury stock	-	369
Dividends paid to FUJIFILM Holdings shareholders	-	(39,979)
Dividends paid to noncontrolling interests	(1,314)	(1,314)
Stock acquisition rights	-	485
Transfer from retained earnings to additional paid-in capital	-	-
Equity transactions with noncontrolling interests and other	(25,357)	(27,367)
Balance as of March 31, 2021	¥ 17,591	¥2,222,157
Balance as of March 31, 2020	$364,910	$17,961,775
Comprehensive income (loss):
Net income	20,288	1,652,766
Net unrealized gains (losses) on securities (Note 14)	-	108
Foreign currency translation adjustments (Note 14)	13,163	726,442
Pension liability adjustments (Note 14)	396	286,360
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	3,027
Comprehensive income	33,847	2,668,703
Purchases of treasury stock	-	(180)
Sales of treasury stock	-	3,324
Dividends paid to FUJIFILM Holdings shareholders	-	(360,171)
Dividends paid to noncontrolling interests	(11,838)	(11,838)
Stock acquisition rights	-	4,369
Transfer from retained earnings to additional paid-in capital	-	-
Equity transactions with noncontrolling interests and other	(228,441)	(246,549)
Balance as of March 31, 2021	$158,478	$20,019,433

Consolidated Statements of Cash Flows

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Operating activities
Net income	¥ 183,457	¥ 138,298	$ 1,652,766
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	123,423	122,653	1,111,919
(Gains) losses on equity securities, net	(48,778)	22,085	(439,441)
Deferred income taxes	7,638	(6,708)	68,811
Equity in net (gains) losses of affiliated companies, net of dividends received	(2,571)	(13)	(23,162)
Changes in operating assets and liabilities:
Decrease in notes and accounts receivable	20,576	53,277	185,369
(Increase) decrease in inventories	9,215	(11,505)	83,018
Decrease in notes and accounts payable - trade	(9,713)	(10,558)	(87,504)
(Increase) decrease in prepaid expenses and other current assets	64,071	(66,944)	577,216
Increase (decrease) in accrued income taxes and other liabilities	46,099	(10,572)	415,306
Other	27,444	25,654	247,243
Net cash provided by operating activities	420,861	255,667	3,791,541
Investing activities
Purchases of property, plant and equipment	(100,063)	(84,677)	(901,468)
Purchases of software	(25,544)	(25,047)	(230,126)
Proceeds from sales and maturities of investment securities	26,239	151	236,387
Purchases of investment securities	(1,685)	(3,230)	(15,180)
Increase in time deposits, net	(3,090)	(10)	(27,838)
Increase in investments in and advances to affiliated companies and other advances	(2,945)	(1,501)	(26,532)
Acquisitions of businesses, net of cash and cash equivalents acquired (Note 23)	(173,515)	(121,789)	(1,563,198)
Proceeds from sale of subsidiaries, net of cash and cash equivalents disposed of (Note 23)	14,707	-	132,495
Other	(13,485)	(8,747)	(121,486)
Net cash used in investing activities	(279,381)	(244,850)	(2,516,946)
Financing activities
Proceeds from long-term debt	4,073	200,669	36,694
Repayments of long-term debt	(78,650)	(163,541)	(708,559)
Increase (decrease) in short-term debt with maturities of three months or less, net	(625)	390	(5,631)
Proceeds from short-term debt with maturities longer than three months	-	150,000	-
Repayments of short-term debt with maturities longer than three months	(50,000)	(100,000)	(450,450)
Cash dividends paid to shareholders	(37,975)	(35,817)	(342,117)
Cash dividends paid to noncontrolling interests	(1,314)	(9,813)	(11,838)
Net purchases of treasury stock	(20)	(51,624)	(180)
Equity transactions with noncontrolling interests and other	1,418	(241,207)	12,775
Net cash used in financing activities	(163,093)	(250,943)	(1,469,306)
Effect of exchange rate changes on cash and cash equivalents	20,317	(18,530)	183,035
Net decrease in cash and cash equivalents	(1,296)	(258,656)	(11,676)
Cash and cash equivalents at beginning of year	396,091	654,747	3,568,388
Cash and cash equivalents at end of year	¥ 394,795	¥ 396,091	$ 3,556,712
Supplemental disclosures
Cash paid for interest	¥ 3,112	¥ 2,893	$ 28,036
Cash paid for income taxes	¥51,841	¥106,929	$467,036

Notes to Consolidated Financial Statements

March 31, 2021

1. Nature of Operations

FUJIFILM Holdings Corporation (the "Company") is engaged in imaging, healthcare & material, and document solutions businesses. "Imaging Solutions" develops, manufactures, markets and provides services of color films, digital cameras, color paper, services and equipment for photofinishing, instant photo systems, optical devices, and other related products. "Healthcare & Material Solutions" develops, manufactures, markets and provides services of equipment and materials for medical systems, cosmetics and supplements, pharmaceuticals, contract development and manufacturing organization of biopharmaceuticals, regenerative medicine, fine chemicals, equipment and materials for graphic arts, inks and industrial inkjet printheads, display materials, recording media, electronic materials, and other related products. "Document Solutions" develops, manufactures, markets and provides services of digital MFPs, publishing systems, document management software and related solution services, and other related products. The Company operates throughout the world, and the overseas revenue consists of approximately 58% of its Company's total revenue, predominantly in North America, Europe and Asia. The Company's principal manufacturing operations are located in Japan, the United States, China, the Netherlands and Vietnam.

2. Summary of Significant Accounting Policies

The accompanying consolidated financial statements are presented in accordance with generally accepted accounting principles in the United States of America ("US GAAP") (the Accounting Standards Codification ("ASC") issued by the Financial Accounting Standards Board ("FASB")).

The Company has prepared its consolidated financial statements in pursuant to US GAAP according to the agreement concerning the issuance of Euro-dollar denominated bonds in 1970. The Company's listing of American Depositary Receipts listed on the NASDAQ since 1971 were abolished on July 31, 2009. Nevertheless, the Company continues to prepare and disclose its consolidated financial statements in accordance with US GAAP.

The main differences between the principles and procedures of the presentation methodology between the generally accepted accounting principles in Japan and US GAAP are summarized as follows:

(1) In accordance with ASC 715, net periodic benefit costs are recorded based on actuarial calculations. Using the corridor approach, actuarial gains and losses are amortized over the average remaining years of service of the employee.

(2) In accordance with ASC 350, goodwill and other indefinite lived intangible assets are not amortized. Instead, they are tested annually for impairment and impaired if necessary.

(3) In accordance with ASC 842, operating lease right-of-use assets and liabilities are recorded using the present value of the lease payments over the lease term. A lease cost is recognized on a straight-line basis over the lease term.

Principles of Consolidation and Accounting for Investments in Affiliated Companies

The consolidated financial statements include the accounts of the Company and entities that the Company directly or indirectly controls. All significant intercompany transactions and accounts have been eliminated.

The Company's investments in affiliated companies (generally 20% to 50% owned companies), in which the ability to exercise significant influence exists, are accounted for by the equity method. Consolidated net income includes the Company's equity in the current net earnings or losses of such companies after the elimination of unrealized intercompany profits.

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and notes.

Significant items subject to such assumptions and estimates include the valuation of notes and accounts receivable, inventories, investment securities and deferred income tax assets; the valuation (including impairment) and determination of useful lives and depreciation or amortization method for property, plant and equipment and intangible assets; uncertain tax positions; assumptions related to the estimation of actuarially determined employee benefit obligations and accruals; or contingent liabilities for environmental remediation, litigation and regulatory investigations. Actual results could differ from those estimates.

As the timing of the end of COVID-19 is still unknown, it is extremely difficult to predict the future impact of the pandemic on the Company's results of operations. The Company assumes that although economic recovery is expected to occur in the next fiscal year with the support of expansionary fiscal policies and accommodative monetary policies that are being actively implemented in various countries, considering the risk that demand will not fully recover to pre-COVID-19 levels in the businesses that have been significantly affected in the fiscal year under review, and the risk of prolongation of the spread of infection due to new COVID-19 variants, the Company believes that the effects of COVID-19 may continue for a certain period of time for some businesses. The Company has used these assumptions to perform its best accounting estimates.

The impact of COVID-19 on the economic activity is highly uncertain. Any changes in the above assumptions may, in no small degree, have an impact on the Company's financial position and results of operations.

Foreign Currency Translations

The Company's foreign subsidiaries generally use the local currency as their functional currency. Accordingly, assets and liabilities are translated into the reporting currency using exchange rates prevailing at the balance sheet date and income and expenses are translated using average exchange rates prevailing during the year. Gains and losses resulting from translation are included and presented in "Accumulated other comprehensive income (loss)", a separate component of equity, as foreign currency translation adjustments.

Assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency using exchange rates in effect at the respective balance sheet dates with the resulting gains or losses included in earnings.

Cash Equivalents

The Company considers all highly liquid investments which are readily convertible into cash and that have original maturities of three months or less to be cash equivalents.

Certain debt securities with original maturities of three months or less are included in "Cash and cash equivalents" in the consolidated balance sheets and the consolidated statements of cash flows. There are no such securities as of March 31, 2021 and 2020.

Investment Securities

Of investment securities, equity securities are measured at fair value and unrealized gains or losses before tax effect are included and presented in "Gains (losses) on equity securities, net" in consolidated statements of income. Certain non-marketable equity securities without readily determinable fair value are measured at cost, minus impairment, if any, in principle. If any observable price changes in orderly transactions for the identical or similar investment of the same issuer are identified, the equity security is measured at fair value as of the date that the observable transaction occurred. Regarding debt securities in investment securities, the Company separates an impairment loss for debt securities into the amount related to credit loss, which is recognized in earnings, and the amount related to all other factors, which is included and presented in "Accumulated other comprehensive income (loss)" when a decline in the value is deemed to be other-than-temporary. In determining whether such decline of debt securities is other-than-temporary, the Company also evaluates various factors including the Company's intent to sell the securities, the available evidence to assess whether it is more likely than not that the Company will be required to sell the security as well as the available evidence to assess whether the entire amortized cost basis of the security will be recovered. The cost of investment securities sold is based on the moving-average-cost method. Dividends are included in "Interest and dividend income" in the consolidated statements of income.

Allowance for Doubtful Receivables

Allowances for doubtful trade, lease and other receivables are determined based on a combination of historical experience, aging analysis and any specific factors affecting customer accounts. Uncollectible receivables are charged-off when legal actions have been taken to collect the receivable, and it becomes clear that the receivables will be uncollectable according to a decision of court.

Inventories

Inventories are valued at the lower of cost or market with cost being determined principally by the moving-average method. The Company reviews inventories for obsolete, slow-moving or excess amounts and if required, provides an allowance to recognize their estimated net realizable values.

Property, Plant and Equipment and Depreciation

Property, plant and equipment are carried at cost. Depreciation is computed primarily using the straight-line method.

Estimated useful lives for buildings and structures are primarily 15 to 50 years and for machinery, equipment and other are 2 to 15 years.

Machinery, equipment and other includes machines rented to customers under operating leases with a cost and accumulated depreciation of ¥92,875 million ($836,712 thousand) and ¥53,023 million ($477,685 thousand) as of March 31, 2021 and ¥56,065 million and ¥32,356 million as of March 31, 2020, respectively.

Net gains on sales of property, plant and equipment were ¥3,425 million ($30,856 thousand) and ¥323 million for the years ended March 31, 2021 and 2020, respectively.

Leases

As for lessor accounting, the Company provides leasing arrangements primarily for the sales of printing and copying machines and other office equipment. At the inception date of each contract, the Company determines whether a contract is, or contains, a lease. Sales-type lease and operating lease income is recorded, and presented and included in "Revenue" in the consolidated statements of income. Revenue from the sales of equipment under sales-type leases is recognized at the commencement of leases. Interest income equivalent on the sales-type leases is recognized using the effective interest method with the allocation based on the net investment in outstanding leases. Leases not qualifying as sales-type leases are accounted for as operating leases and related revenue is recognized ratably over the respective lease term. For contracts bundling equipment leases with maintenance and other services, the Company has applied the practical expedients permitted under ASC 842 and these contracts are all accounted for as lease components in accordance with ASC 842. Normally, these contracts combine the minimum usage fees and variable charges according to print runs. Some of the contracts include options to terminate the lease before the end of the lease term by giving notice to the lessor before a certain period.

As for lessee accounting, the Company has finance and operating leases for assets including office buildings and vehicles. At the inception date of each contract, the Company determines whether a contract is, or contains, a lease, and recognizes right-of-use assets and lease liabilities on the commencement date of the lease. Some of the lease contracts include options to extend the lease term or terminate the lease. The Company takes into accounts the respective period of such options to determine the lease term when it is reasonably certain that it will exercise these options. The Company has lease contracts with lease and non-lease components, which are normally accounted for separately. Since most of the Company's leases do not provide a rate implicit, the Company normally uses incremental borrowing rate based on the information available at the lease commencement to determine the present value of total lease payments. For short-term leases with a lease term of 12 months or less, the Company elects not to recognize right-of-use assets and lease liabilities. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired. Other intangible assets principally consist of costs allocated to technology-based intangibles and customer-related intangibles.

Under ASC 350, goodwill and other indefinite lived intangible assets are tested annually for impairment. Impairment tests for goodwill are performed based on the fair value of estimated future cash flows of each reporting unit. The discount rate used is based on the reporting unit's weighted average cost of capital. In addition to the annual impairment test, which the Company performs as of January 1, an interim test for goodwill impairment would be performed if events occur or circumstances indicate that the carrying amounts may not be recoverable.

Intangible assets other than those with an indefinite life are amortized on a straight-line basis over their estimated useful lives.

Capitalized Software Costs

The Company capitalizes certain costs incurred in connection with developing and obtaining internal use software in accordance with ASC 350-40. These costs consist primarily of payments made to third parties and salaries of employees working on such software development. In connection with developing internal use software, costs incurred at the application development stage or later are capitalized. In addition, the Company develops or obtains certain software to be sold, leased, or otherwise marketed where related costs incurred after establishment of technological feasibility are capitalized in accordance with ASC 985. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software of 3 to 5 years. Costs and accumulated amortization of total capitalized software amounted to ¥160,445 million ($1,445,450 thousand) and ¥94,568 million ($851,964 thousand), respectively, as of March 31, 2021 and ¥153,515 million and ¥95,400 million, respectively, as of March 31, 2020. Costs and accumulated amortization of capitalized software to be sold, included in the above, amounted to ¥33,789 million ($304,405 thousand) and ¥20,835 million ($187,703 thousand), respectively, as of March 31, 2021 and ¥31,860 million and ¥20,696 million, respectively, as of March 31, 2020. Capitalized software costs are included in "Other" of "Other assets" in the consolidated balance sheets.

Impairment of Long-lived Assets

The Company reviews long-lived assets, excluding goodwill and other indefinite lived intangible assets, for impairment whenever events or changes in business circumstances indicate the carrying amount of the assets may not be fully recoverable. If there is any indication of impairment, the estimated undiscounted future cash flows associated with the assets would be compared to the assets' carrying amount to determine if a write-down is required. If this evaluation indicates that the carrying amounts of the asset exceeds the sum of the undiscounted future cash flows, the carrying amounts of the assets would be reduced to their estimated fair value. In determining the fair value, the Company uses quoted market prices in active markets or other valuation methods. If quoted market prices are unavailable, the Company primarily uses the discounted cash flow method based on the estimated discounted future cash flows expected to result from the use of the assets and their eventual disposition, the relief from royalty method or the excess earnings method.

Long-lived assets to be disposed of by sale are recorded at the lower of carrying amount or fair value less cost to sell.

Revenue Recognition

In accordance with ASC 606, the Company recognizes revenue in the amount of consideration to which it expects to be entitled in exchange for the specified good or service transferred using the five step approach as follows.

Step 1: Identify the contract

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations

Step 5: Recognize revenue when (or as) performance obligations are satisfied

Product Warranties

The Company provides product warranties for certain of its products. These warranties generally extend for a period of one year from the date of sale. A liability for expected warranty costs is accrued at the time that the related revenue is recognized. In estimating the warranty liability, historical experience is considered.

Shipping and Handling Costs

Shipping and handling costs are included in "Selling, general and administrative" in the consolidated statements of income. Shipping and handling costs amounted to ¥54,370 million ($489,820 thousand) and ¥56,433 million for the years ended March 31, 2021 and 2020, respectively.

Advertising Costs

Advertising costs are expensed as incurred and included in "Selling, general and administrative" in the consolidated statements of income. Advertising costs amounted to ¥13,705 million ($123,468 thousand) and ¥23,121 million for the years ended March 31, 2021 and 2020, respectively.

Income Taxes

Income taxes have been provided using the asset and liability method in accordance with ASC 740.

Deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws which will be in effect when the differences are expected to reverse. A valuation allowance is recognized to reduce the deferred tax assets to the amount that is considered more likely than not to be realized.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities in accordance with ASC 740. Recognized tax positions are measured at the largest amount of benefit which is more likely than not to be realized upon ultimate settlement with the taxing authority.

Consumption Taxes

Revenues, costs and expenses in the consolidated statements of income do not include consumption taxes.

Derivative Financial Instruments

The Company recognizes all derivative financial instruments, such as forward foreign exchange contracts, currency swaps, cross currency interest rate swaps and interest rate swaps in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in earnings along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in other comprehensive income (loss), net of deferred taxes and reclassified to earnings in the period when the gain or loss associated with the hedged item was recorded. Changes in fair values of derivatives, which are not designated or qualified as hedges, are reported in earnings, immediately.

Net Income Attributable to FUJIFILM Holdings per Share

Basic net income attributable to FUJIFILM Holdings per share is calculated based on the weighted average number of shares of common stock outstanding during the year.

Diluted net income attributable to FUJIFILM Holdings per share is adjusted for the effect of dilutive common stocks to be additionally issued when stock options are exercised.

Stock-Based Compensation

The Company measures stock-based compensation cost based on fair value of the options on the grant date and recognizes stock-based compensation cost in accordance with ASC 718.

Subsequent Events

The Company evaluated all subsequent events through June 30, 2021, the date on which the financial statements are available to be issued in accordance with ASC 855.

Reclassifications

Certain reclassifications to the prior year's consolidated financial statements and related footnote amounts have been made to conform with current year presentation.

New Accounting Standards to be Adopted

In June 2016, FASB issued Accounting Standard Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires the use of the expected credit loss model instead of the incurred loss impairment model when assessing the impairment of financial instruments. In the expected credit loss model, an estimate of uncollectible contractual cash flow is recorded as an allowance. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, including interim periods within that reporting period, and earlier adoption is permitted. The Company will adopt ASU 2016-13 in the year beginning April 1, 2023. The Company is evaluating the impact that the adoption of ASU 2016-13 will have on its financial position and results of operations.

3. U.S. Dollar Amounts

Solely for the convenience of the reader and as a matter of arithmetical computation only, the 2021 amounts in the consolidated financial statements have been translated from Japanese yen into U.S. dollars at the rate of ¥111 = U.S.$1.00, the approximate exchange rate prevailing on March 31, 2021. The amounts shown in U.S. dollars are not intended to be computed in accordance with US GAAP for the translation of foreign currency amounts. The translation should not be construed as a representation that Japanese yen could be converted into U.S. dollars at this or any other rate.

4. Investments in Debt and Equity Securities

The cost, gross unrealized gains, gross unrealized losses and estimated fair value of the debt securities categorized as available-for-sale by security type as of March 31, 2021 and 2020 are summarized as follows. Certain debt securities with original maturities of three months or less are included in "Cash and cash equivalents" in the consolidated balance sheets. There are no such securities as of March 31, 2021 and 2020.

	2021
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Millions of yen)
Investment securities:
Corporate bonds	¥585	¥2	¥-	¥587
Total	¥585	¥2	¥-	¥587

	2020
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Millions of yen)
Investment securities:
Corporate bonds	¥517	¥-	¥(16)	¥501
Total	¥517	¥-	¥(16)	¥501

	20		21
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Thousands of U.S. dollars) (Note 3)
Investment securities:
Corporate bonds	$5,270	$18	$-	$5,288
Total	$5,270	$18	$-	$5,288

The cost and estimated fair value of the debt securities categorized by maturity as of March 31, 2021 are summarized as follows:

	Cost	Estimated fair value	Cost	Estimated fair value
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
After one year through five years	¥585	¥587	$5,270	$5,288
Total	¥585	¥587	$5,270	$5,288

Realized and unrealized gains or losses of equity securities included in investment securities on the consolidated balance sheets as of March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Total gains (losses) of equity securities	¥48,778	¥(22,084)	$439,442
Less: Realized gains (losses) on equity securities sold during the period	(23,081)	194	(207,937)
Unrealized gains (losses) on equity securities held at end of year	¥25,697	¥(21,890)	$231,505

Certain non-marketable equity securities without readily determinable fair value are measured at cost, minus impairment, if any, in principle. If an entity identifies observables price changes in orderly transactions for the identical or similar investment of the same issuer, it shall measure the equity security at fair value as of the date that the observable transaction occurred. The carrying amounts of these investments were ¥7,623 million ($68,676 thousand) and ¥8,688 million as of March 31, 2021 and 2020, respectively. The Company did not record significant impairment or other adjustments for the years ended March 31, 2021 and 2020.

5. Lease Accounting for Lessor

Lease income information as lessor for the years ended March 31, 2021 and 2020 is as follows. Lease income is included and presented in "Revenue" in the consolidated statements of income.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Sales-type lease income
Income (loss) recognized on the commencement date	¥13,710	¥14,192	$123,514
Interest income from lease receivables	8,897	9,127	80,153
Total	22,607	23,319	203,667
Operating lease income	18,616	9,962	167,712
Variable lease income	23,471	18,465	211,450

Lease receivables mainly consist of the sales-type lease receivables on the Company's printing and copying machines and other office equipment. The current portion of lease receivables and the portion due after one year are recorded in "Lease receivables" and "Long-term lease receivables" in the consolidated balance sheets, respectively. The components of lease receivables as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Lease receivables, gross	¥127,546	¥131,490	$1,149,063
Unearned income	(13,834)	(14,347)	(124,630)
Allowance for doubtful receivables	(8,423)	(10,007)	(75,883)
Lease receivables, net	¥105,289	¥107,136	$ 948,550

The minimum lease payments receivable under the sales-type leases and operating leases for the next five years and thereafter as of March 31, 2021 are summarized as follows:

	Sales-type leases	Operating leases
	(Millions of yen)
Year ending March 31
2022	¥ 57,778	¥14,750
2023	33,166	6,488
2024	21,533	4,395
2025	11,372	2,690
2026	3,584	954
2027 and thereafter	113	14
Total minimum lease payments receivable	¥127,546	¥29,291

	Sales-type leases	Operating leases
	(Thousands of U.S. dollars) (Note 3)
Year ending March 31
2022	$ 520,523	$132,883
2023	298,793	58,450
2024	193,991	39,595
2025	102,450	24,234
2026	32,288	8,595
2027 and thereafter	1,018	126
Total minimum lease payments receivable	$1,149,063	$263,883

6. Lease Accounting for Lessee

Consolidated statements of income information related to leases is as follows. Lease cost is included in "Cost of sales" and "Selling, general and administrative" in the consolidated statements of income.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Operating lease cost	¥ 33,156	¥ 32,928	$ 298,703
Short-term lease cost	3,616	3,636	32,577

Supplemental balance sheet information related to leases is as follows.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Finance lease right-of-use assets
Property, plant and equipment (cost)	¥ 11,868	¥ 10,834	$ 106,919
Accumulated depreciation	(5,623)	(4,318)	(50,658)
Property, plant and equipment (carrying amount)	6,245	6,516	56,261
Finance lease liabilities
Short-term debt	2,619	2,190	23,595
Long-term debt	6,721	7,057	60,549
Total finance lease liabilities	9,340	9,247	84,144

Operating cash flows from operating leases for the years ended March 31, 2021 and 2020 amounted to ¥32,083 million ($289,036 thousand) and ¥32,235 million, respectively. Operating lease right-of-use assets acquired in exchange for lease liabilities amounted to ¥33,067 million ($297,901 thousand) and ¥25,611 million for the years ended March 31, 2021 and 2020, respectively.

Other information related to leases is as follows.

	2021	2020
Weighted average remaining lease term
Finance leases	7 years	8 years
Operating leases	4 years	4 years
Weighted average discount rate
Finance leases	1.84%	2.06%
Operating leases	0.41%	0.48%

Future minimum lease payments payable under finance leases and operating leases by fiscal year as of March 31, 2021 are summarized as follows:

	Finance leases	Operating leases
	(Millions of yen)
Year ending March 31
2022	¥ 2,765	¥ 29,024
2023	2,117	20,729
2024	1,330	14,245
2025	985	10,251
2026	612	3,971
2027 and thereafter	2,920	5,927
Total lease payments	10,729	84,147
Less: Imputed interest	(1,389)	(263)
Total	¥ 9,340	¥ 83,884

	Finance leases	Operating leases
	(Thousands of U.S. dollars) (Note 3)
Year ending March 31
2022	$ 24,910	$ 261,478
2023	19,072	186,748
2024	11,982	128,333
2025	8,874	92,351
2026	5,514	35,775
2027 and thereafter	26,306	53,396
Total lease payments	96,658	758,081
Less: Imputed interest	(12,514)	(2,369)
Total	$ 84,144	$ 755,712

7. Inventories

Inventories as of March 31, 2021 and 2020 consisted of the following:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Finished goods	¥219,118	¥221,607	$1,974,036
Work in process	62,668	48,188	564,577
Raw materials and supplies	135,876	111,116	1,224,108
Total	¥417,662	¥380,911	$3,762,721

8. Investments in Affiliated Companies

Investments in affiliated companies accounted for by the equity method amounted to ¥23,443 million ($211,198 thousand) and ¥23,938 million as of March 31, 2021 and 2020, respectively. The difference between the carrying amounts of the investments in affiliated companies and the Company's equity in the underlying net assets of such affiliated companies was not material. These affiliated companies primarily operate in the Imaging Solutions, Healthcare & Material Solutions and Document Solutions businesses.

Some affiliated companies are listed on the stock market. The carrying amounts and market values of these affiliated companies as of March 31, 2021 were ¥6,514 million ($58,685 thousand) and ¥7,214 million ($64,991 thousand), respectively. As of March 31, 2020, they amounted to ¥8,232 million and ¥5,085 million, respectively.

The combined financial position of the Company's affiliated companies accounted for by the equity method as of March 31, 2021 and 2020 are summarized as follows. There were no individually material affiliated companies for the years ended March 31, 2021 and 2020.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Current assets	¥ 87,578	¥ 75,813	$ 788,991
Non-current assets	55,185	63,349	497,162
Total assets	¥142,763	¥139,162	$1,286,153
Current liabilities	¥ 33,105	¥ 31,248	$ 298,243
Non-current liabilities	82,847	81,183	746,369
Equity	26,811	26,731	241,541
Total liabilities and equity	¥142,763	¥139,162	$1,286,153

The combined results of operations of the Company's affiliated companies accounted for by the equity method for the years ended March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Revenue	¥117,876	¥145,504	$1,061,946
Net income	9,143	1,646	82,369

Transactions with affiliated companies for the years ended March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Revenue	¥12,108	¥16,273	$109,081
Purchases	7,708	8,966	69,441
Dividends received	627	1,328	5,649

9. Goodwill and Other Intangible Assets

The changes in goodwill by operating segment for the years ended March 31, 2021 and 2020 are as follows.

	Healthcare & Material Solutions	Document Solutions	Total
	(Millions of yen)
As of March 31, 2019	¥433,447	¥222,061	¥655,508
Acquired	31,864	12,002	43,866
Other	(6,107)	(6,112)	(12,219)
As of March 31, 2020	459,204	227,951	687,155
Acquired	107,090	-	107,090
Other	1,800	8,154	9,954
As of March 31, 2021	¥568,094	¥236,105	¥804,199

	Healthcare & Material Solutions	Document Solutions	Total
	(Thousands of U.S. dollars) (Note 3)
As of March 31, 2020	$4,136,973	$2,053,613	$6,190,586
Acquired	964,775	-	964,775
Other	16,216	73,459	89,675
As of March 31, 2021	$5,117,964	$2,127,072	$7,245,036

Other includes a decrease resulting from sales and foreign currency translation adjustments. There was no goodwill recognized in the Imaging Solutions segment for the years ended March 31, 2021 and 2020.

Other intangible assets subject to amortization as of March 31, 2021 and 2020 are as follows:

	2021
	Gross carrying amount	Accumulated amortization	Net carrying amount
	(Millions of yen)
Technology-based	¥ 67,875	¥40,004	¥ 27,871
Customer-related	107,840	25,598	82,242
Other	25,689	11,441	14,248
Total	¥201,404	¥77,043	¥124,361

	2020
	Gross carrying amount	Accumulated amortization	Net carrying amount
	(Millions of yen)
Technology-based	¥ 86,435	¥45,282	¥ 41,153
Customer-related	96,948	23,153	73,795
Other	30,934	10,050	20,884
Total	¥214,317	¥78,485	¥135,832

	2021
	Gross carrying	Accumulated	Net carrying
	amount	amortization	amount
	(Thousands of U.S. dollars) (Note 3)
Technology-based	$ 611,486	$360,396	$ 251,090
Customer-related	971,532	230,613	740,919
Other	231,432	103,072	128,360
Total	$1,814,450	$694,081	$1,120,369

For the fiscal year ended March 31, 2021, the Company measured the fair value of intangible assets mainly held by the Healthcare & Material Solutions segment by using the discounted cash flow method based on the estimated future cash flows and other unobservable inputs. As a result, the Company recognized an impairment loss of ¥12,689 million ($114,315 thousand) as the carrying amount was not deemed recoverable. The impairment loss is mainly included in "Selling, general and administrative" in the consolidated statements of income.

The aggregate amortization expenses for other intangible assets for the years ended March 31, 2021 and 2020 were ¥14,554 million ($131,117 thousand) and ¥13,659 million, respectively.

Other intangible assets not subjected to amortization were not material as of March 31, 2021 and 2020, respectively.

The estimated aggregate amortization expenses for other intangible assets subject to amortization for the next five years are as follows:

	(Millions of yen)	(Thousands of U.S. dollars) (Note 3)
Year ending March 31
2022	¥13,346	$120,234
2023	13,140	118,378
2024	11,025	99,324
2025	10,787	97,180
2026	9,873	88,946

10. Short-term and Long-term Debt

Short-term debt

Short-term debt as of March 31, 2021 and 2020 were ¥5,826 million ($52,486 thousand) and ¥56,134 million, respectively, and the weighted average interest rates per annum on short-term debt outstanding as of March 31, 2021 and 2020 were 4.39% and 0.18%, respectively. Short-term debt is unsecured.

Short-term debt as of March 31, 2021 and 2020 consisted of the following:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Short-term debt	¥ 5,826	¥ 56,134	$ 52,486
Current portion of long-term debt	57,903	64,864	521,649
Total	¥63,729	¥120,998	$574,135

Long-term debt

Long-term debt as of March 31, 2021 and 2020 consisted of the following:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Unsecured loans, principally from banks and insurance companies:
Due from the year ending March 31, 2023 to the year ending March 31, 2034 with interest rates ranging from (0.591)% to 4.000% as of March 31, 2021 Due from the year ended March 31, 2021 to the year ending March 31, 2034 with interest rates ranging from (0.591)% to 6.000% as of March 31, 2020	¥109,969	¥165,701	$990,712

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Unsecured Japanese yen bonds:
0.030% yen bonds, due the year ended March 31, 2021	¥ -	¥ 15,000	$ -
0.050% yen bonds, due the year ending March 31, 2022	25,000	25,000	225,225
0.080% yen bonds, due the year ending March 31, 2022	30,000	30,000	270,270
0.020% yen bonds, due the year ending March 31, 2023	20,000	20,000	180,180
0.882% yen bonds, due the year ending March 31, 2023	40,000	40,000	360,361
0.060% yen bonds, due the year ending March 31, 2023	100,000	100,000	900,901
0.110% yen bonds, due the year ending March 31, 2024	35,000	35,000	315,315
0.180% yen bonds, due the year ending March 31, 2024	10,000	10,000	90,090
0.080% yen bonds, due the year ending March 31, 2025	30,000	30,000	270,270
0.120% yen bonds, due the year ending March 31, 2025	50,000	50,000	450,451
0.240% yen bonds, due the year ending March 31, 2026	25,000	25,000	225,225
0.250% yen bonds, due the year ending March 31, 2027	10,000	10,000	90,090
Other	12,285	12,334	110,676
	497,254	568,035	4,479,766
Less: Portion due within one year	(57,903)	(64,864)	(521,649)
Balance	¥439,351	¥503,171	$3,958,117

The aggregate annual maturities of long-term debt for the next five years are as follows:

	(Millions of yen)	(Thousands of U.S. dollars) (Note 3)
Year ending March 31
2022	¥ 57,903	$ 521,649
2023	192,474	1,734,000
2024	96,881	872,802
2025	81,119	730,802
2026	25,745	231,937

Certain bank loans are made under general agreements which provide that security and guarantees for present and future indebtedness will be provided upon request of the bank, and that the bank shall have the right to offset cash deposits against obligations that have become due or, in the event of default, against all obligations due to the bank. Certain long-term debt agreements with lenders other than banks also stipulate that the Company shall provide additional security upon request of the lender.

11. Pension and Severance Plans

Most employees of domestic subsidiaries of the Company who terminate their employment are entitled, under most circumstances, to lump-sum payments and/or pension payments calculated by reference to points earned during their service period.

Certain subsidiaries have funded non-contributory defined benefit pension plans whose assets are maintained at trust banks and insurance companies. The funding policy for defined benefit pension plans is to make actuarially determined contributions to provide the plans with sufficient assets to meet future benefit payment requirements. Also, certain subsidiaries have defined contribution pension plans. The funding policy for such plans is to contribute annually an amount equal to a certain percentage of the participants' annual salary.

The amounts of net periodic benefit cost for the defined contribution pension plans were ¥14,371 million ($129,468 thousand) and ¥13,433 million for the years ended March 31, 2021 and 2020, respectively.

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost for the defined benefit pension plans for the years ended March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Components of net periodic benefit cost:
Service cost	¥ 17,546	¥ 18,771	$ 158,072
Interest cost	6,809	6,412	61,342
Expected return on plan assets	(19,654)	(20,852)	(177,063)
Amortization of net actuarial loss	9,428	10,158	84,937
Amortization of prior service credit	(2,342)	(3,042)	(21,099)
Settlement (gain) loss	-	(138)	-
Net periodic benefit cost	¥ 11,787	¥ 11,309	$ 106,189

Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income (loss) for the years ended March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Current year actuarial (gain) loss	¥(39,676)	¥ 7,552	$(357,441)
Amortization of actuarial loss	(9,428)	(10,158)	(84,937)
Prior service credit due to amendments	42	149	378
Amortization of prior service credit	2,342	3,042	21,099
Total	¥(46,720)	¥ 585	$(420,901)

Obligations and Funded Status

Reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of the plan assets and the funded status of the defined benefit pension plans for the years ended March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year	¥811,590	¥846,072	$7,311,622
Service cost	17,546	18,771	158,072
Interest cost	6,809	6,412	61,342
Plan participants' contributions	365	317	3,288
Actuarial (gain) loss	16,938	(12,363)	152,595
Benefits paid	(34,352)	(37,872)	(309,478)
Plan amendments	42	149	378
Increase due to acquisitions	26,964	-	242,919
Settlement paid	-	(138)	-
Foreign currency translation	18,169	(9,758)	163,685
Projected benefit obligation at end of year	864,071	811,590	7,784,423
Changes in plan assets:
Fair value of plan assets at beginning of year	793,891	822,083	7,152,171
Actual return on plan assets	76,268	937	687,099
Employers' contributions	15,817	17,655	142,495
Plan participants' contributions	365	317	3,288
Benefits paid	(33,044)	(36,285)	(297,694)
Increase due to acquisitions	19,684	-	177,334
Foreign currency translation	18,818	(10,816)	169,532
Fair value of plan assets at end of year	891,799	793,891	8,034,225
Funded status	¥ 27,728	¥ (17,699)	$ 249,802

Amounts recognized in the consolidated balance sheets related to the defined benefit pension plans as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Other assets	¥ 59,115	¥ 17,240	$532,568
Accrued liabilities	(1,297)	(1,121)	(11,685)
Accrued pension and severance costs	(30,090)	(33,818)	(271,081)
Net amount recognized	¥ 27,728	¥(17,699)	$249,802

Amounts recognized in accumulated other comprehensive income (loss) related to the defined benefit pension plans as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Net actuarial loss	¥161,763	¥210,867	$1,457,325
Prior service credit	(15,291)	(17,675)	(137,757)
Total	¥146,472	¥193,192	$1,319,568

The accumulated benefit obligation for the defined benefit pension plans amounted to ¥858,372 million ($7,733,081 thousand) and ¥804,538 million as of March 31, 2021 and 2020, respectively.

The aggregate projected benefit obligation and aggregate fair value of plan assets for the pension plans where the projected benefit obligation exceeded the plan assets, and the aggregate accumulated benefit obligation and aggregate fair value of plan assets where accumulated benefit obligation exceeded plan assets as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	¥130,324	¥729,756	$1,174,090
Fair value of plan assets	94,782	696,924	853,892
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation	108,892	722,609	981,009
Fair value of plan assets	76,397	694,785	688,261

Assumptions

The weighted average assumptions used to determine the benefit obligation as of March 31, 2021 and 2020 are as follows: Rate of compensation increase is not presented because most of the retirement benefit plans' benefit formulas are not based on compensation levels and therefore the rate of compensation increase does not materially impact the calculation of the benefit obligation.

	2021	2020
Discount rate	0.85%	0.74%
Interest crediting rate for cash balance plans and other plans	2.20%	2.21%

The weighted average assumptions used to determine the net periodic benefit cost for the years ended March 31, 2021 and 2020 are as follows: Rate of compensation increase is not presented because most of the retirement benefit plans' benefit formulas are not based on compensation levels and therefore the rate of compensation increase does not materially impact the calculation of the net periodic benefit cost.

	2021	2020
Discount rate	0.74%	0.74%
Expected long-term rate of return on plan assets	2.46%	2.48%
Interest crediting rate for cash balance plans and other plans	2.21%	2.21%

The expected long-term rate of return on plan assets is based on the expected long-term return by asset category and historical performance by portfolio.

Plan Assets

The Company's investment objectives are to earn sufficient long-term returns with an acceptable level of risk, while maintaining adequate funding levels for pension payments and/or lump sum payments.

The fundamental principle of the Company's investment policy is to pursue efficient returns while minimizing risks through diversified investment. The Company designs a basic asset allocation model to provide a mix of assets best suited for mid and long-term returns and verifies that model periodically for effectiveness. When conditions have changed from when the model was initially designed, the Company reconsiders the basic asset allocation, if necessary. On the operational side, the Company conducts discretionary investment within the scope of the predetermined range of tolerance, considering short-term market conditions.

Targeted allocation ratios for equity securities, debt securities, general accounts of life insurance companies and alternative investments are 21% (5% domestic and 16% foreign), 31% (5% domestic and 26% foreign), 24% and 24%, respectively. Alternative investments primarily consist of hedge funds and real estate.

Equity securities consist principally of stocks that are listed on securities exchanges and have been selected based on thorough analysis of investees' businesses, their potential for future growth and other appropriate factors while ensuring that industries in which the investees operate are appropriately diversified. Debt securities consist principally of government and other public debt, and corporate debt which have been selected based on thorough analysis of issuers and the terms and conditions of those securities including investment grades, interest rates, maturity dates, financial position of issuers and other factors so that maturity dates and issuers are appropriately diversified. Pooled funds have been selected for investment using the same strategies as those for equity and debt securities described above. The Company has selected general accounts of life insurance companies, for which life insurance companies have guaranteed anticipated interest rates and return of capital, based on thorough analysis of issuers' investment grades and other factors so that the investments are appropriately diversified. Regarding foreign investments, the Company has selected the countries and currencies in which the Company invests in based on thorough analysis of the political and economic stability in those countries, the market characteristics, such as settlement systems and taxation systems, and other factors so that the investments are appropriately diversified. Alternative investments consist principally of hedge funds and real estate, which were intended to hedge the risk of traditional assets and establish ongoing returns that are less sensitive to market trends. The Company has selected alternative investments based on thorough analysis of the nature of risks and returns which are completely different from those of traditional assets so that the investment techniques and asset management companies are appropriately diversified.

The fair value hierarchy that prioritizes the inputs used in valuation techniques is described in Note 20 "Fair Value Measurement". The fair value hierarchy of plan assets as of March 31, 2021 and 2020 are as follows:

	2021
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Millions of yen)
Cash and cash equivalents, and Short-term receivables (Note 2)	¥ 3,873	¥ 5,579	¥ -	¥ -	¥ 9,452
Equity securities
Domestic companies securities	12,245	571	-	-	12,816
Foreign companies securities	17,933	21,258	-	-	39,191
Securities investment trust	416	3,282	-	-	3,698
Pooled funds (Note 3)	-	351	-	184,202	184,553
Debt securities
Government bonds (Note 4)	9,655	6,884	-	-	16,539
Corporate bonds (Note 5)	-	42,583	-	-	42,583
Public and corporate bonds investment trust (Note 6)	-	5,601	-	-	5,601
Pooled funds (Note 7)	-	11,653	-	218,133	229,786
General accounts of life insurance companies	-	200,027	-	-	200,027
Alternative investments
Equity securities funds (Note 8)	-	-	8	3,001	3,009
Debt securities funds (Note 9)	3,755	-	-	7,205	10,960
Other funds (Note 10)	6,182	3,498	8,848	75,132	93,660
Real estate (Note 11)	-	-	1,610	38,314	39,924
Total	¥54,059	¥301,287	¥10,466	¥525,987	¥891,799

	2020
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Millions of yen)
Cash and cash equivalents, and Short-term receivables (Note 2)	¥ 3,934	¥ 4,609	¥ -	¥ -	¥ 8,543
Equity securities
Domestic companies securities	8,906	424	-	-	9,330
Foreign companies securities	13,860	19,536	-	-	33,396
Securities investment trust	239	-	-	-	239
Pooled funds (Note 3)	-	637	-	136,734	137,371
Debt securities
Government bonds (Note 4)	12,844	5,358	-	-	18,202
Corporate bonds (Note 5)	-	40,987	-	-	40,987
Pooled funds (Note 7)	-	6,926	-	198,281	205,207
General accounts of life insurance companies	-	190,577	-	-	190,577
Alternative investments
Equity securities funds (Note 8)	-	-	-	2,976	2,976
Debt securities funds (Note 9)	3,850	-	-	6,592	10,442
Other funds (Note 10)	4,080	3,067	2,121	95,519	104,787
Real estate (Note 11)	-	-	330	31,504	31,834
Total	¥47,713	¥272,121	¥2,451	¥471,606	¥793,891

	2021
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Thousands of U.S. dollars) (Note 3)
Cash and cash equivalents, and Short-term receivables (Note 2)	$ 34,892	$ 50,261	$ -	$ -	$ 85,153
Equity securities
Domestic companies securities	110,315	5,144	-	-	115,459
Foreign companies securities	161,559	191,513	-	-	353,072
Securities investment trust	3,747	29,568	-	-	33,315
Pooled funds (Note 3)	-	3,162	-	1,659,478	1,662,640
Debt securities
Government bonds (Note 4)	86,982	62,018	-	-	149,000
Corporate bonds (Note 5)	-	383,631	-	-	383,631
Public and corporate bonds investment trust (Note 6)	-	50,459	-	-	50,459
Pooled funds (Note 7)	-	104,982	-	1,965,162	2,070,144
General accounts of life insurance companies	-	1,802,045	-	-	1,802,045
Alternative investments
Equity securities funds (Note 8)	-	-	72	27,036	27,108
Debt securities funds (Note 9)	33,829	-	-	64,910	98,739
Other funds (Note 10)	55,694	31,514	79,711	676,865	843,784
Real estate (Note 11)	-	-	14,505	345,171	359,676
Total	$487,018	$2,714,297	$94,288	$4,738,622	$8,034,225

^{(Note 1)} Certain assets that are measured at fair value using net asset value ("NAV") per share applied by practical expedient, have not been classified in the fair value hierarchy.
^{(Note 2)} Short-term receivables include cash at bank held in the loan account of pooled funds, negotiable certificates of deposit and call loans, which are classified as Level 2.
^{(Note 3)} Pooled funds of equity securities consist of 19% and 27% domestic companies and 81% and 73% foreign companies as of March 31, 2021 and 2020, respectively.
^{(Note 4)} This category consists of 68% and 80% Japanese government bonds and 32% and 20% foreign government bonds as of March 31, 2021 and 2020, respectively.
^{(Note 5)} This category consists of 2% and 14% domestic corporate bonds and 98% and 86% foreign corporate bonds as of March 31, 2021 and 2020, respectively.
^{(Note 6)} The public and corporate bonds investment trusts invest principally in foreign government bonds.
^{(Note 7)} Pooled funds of bonds consist of 9% and 10% Japanese government bonds, government agency and municipal securities, 62% and 62% foreign government bonds, 1% and 0% domestic corporate bonds and 28% and 28% foreign corporate bonds as of March 31, 2021 and 2020, respectively.
^{(Note 8)} Equity securities funds invest principally in domestic companies securities.
^{(Note 9)} Debt securities funds invest principally in foreign government bonds and foreign currencies.
^{(Note 10)} Other funds include managed futures which principally invest in listed futures and fund of hedge funds whose investments are diversified with a combination of various products and investment techniques.
^{(Note 11)} Real estate includes principally domestic real estate funds whose investment policy is to generate stable rental income and capital gains from sales on real estate.

Plan assets classified as Level 1 include principally cash and cash equivalents, government bonds and listed stocks, which were valued using unadjusted quoted prices in active markets for identical assets. Plan assets classified as Level 2 include principally government agency securities, municipal bonds, corporate bonds, pooled funds of equity and debt securities, general accounts of life insurance companies and certain alternative investments. Government agency securities, municipal bonds and corporate bonds were valued using directly or indirectly observable inputs in non-active markets. Pooled funds and certain alternative investments were valued using inputs that were corroborated by observable market data obtained from financial institutions or third parties. General accounts of life insurance companies were valued at conversion value. Plan assets classified as Level 3 include principally alternative investments, consisting of hedge funds and real estate, which were valued using unobservable inputs that were significant to the measurement of their value.

Reconciliation of the beginning and ending balances for assets classified as Level 3 for the years ended March 31, 2021 and 2020 is as follows:

	2021
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sales	Currency translation	Business combination	Balance at end of year
	(Millions of yen)
Alternative investments
Equity securities funds	¥ -	¥ -	¥ -	¥ -	¥ 8	¥ 8
Other funds	2,121	306	5,339	207	875	8,848
Real estate	330	45	1,160	52	23	1,610
Total	¥2,451	¥351	¥6,499	¥259	¥906	¥10,466

	2020
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sales	Currency translation	Business combination	Balance at end of year
	(Millions of yen)
Alternative investments
Other funds	¥2,241	¥(20)	¥83	¥(183)	¥-	¥2,121
Real estate	393	(60)	-	(3)	-	330
Total	¥2,634	¥(80)	¥83	¥(186)	¥-	¥2,451

	2021
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sales	Currency translation	Business combination	Balance at end of year
	(Thousands of U.S. dollars) (Note 3)
Alternative investments
Equity securities funds	$ -	$ -	$ -	$ -	$ 72	$ 72
Other funds	19,108	2,756	48,099	1,865	7,883	79,711
Real estate	2,973	406	10,451	468	207	14,505
Total	$22,081	$3,162	$58,550	$2,333	$8,162	$94,288

Contribution

The Company expects to contribute approximately ¥16,639 million ($149,901 thousand) to the defined benefit pension plans for the year ending March 31, 2022.

Estimated Future Benefit Payments

The expected benefit payments, which reflect estimated future service, are summarized as follows:

	(Millions of yen)	(Thousands of U.S. dollars) (Note 3)
Year ending March 31
2022	¥ 35,212	$ 317,225
2023	35,515	319,955
2024	36,778	331,333
2025	37,856	341,045
2026	38,412	346,054
2027 through 2031	191,973	1,729,486

12. Income Taxes

Income taxes applicable to the Company and its domestic subsidiaries comprise corporation, inhabitant and enterprise taxes which, in the aggregate, resulted in a statutory tax rate of 30.6% for the years ended March 31, 2021 and 2020.

Reconciliation of the differences between the statutory tax rates and the effective tax rates reflected in the consolidated statements of income for the years ended March 31, 2021 and 2020 is as follows:

	2021 (%)	2020 (%)
Statutory tax rates	30.6	30.6
Increase (decrease) in income taxes resulting from:
Differences other than temporary differences, etc.	(2.3)	(7.6)
Difference in statutory tax rates of other countries	(3.2)	(4.5)
Deferred tax liabilities on undistributed earnings	(0.6)	0.4
Research and development credits	(3.3)	(1.9)
Net change in valuation allowances	1.5	2.9
Adjustment for unrecognized tax benefits	(0.1)	(0.1)
Difference in effective tax rates of domestic
subsidiaries	0.3	0.5
Investor taxes on equity income from foreign
subsidiaries	0.6	0.1
Other	0.1	0.5
Effective tax rates	23.6	20.9

Income before income taxes by tax jurisdictions for the years ended March 31, 2021 and 2020 is as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Income before income taxes:
Domestic	¥174,983	¥104,796	$1,576,423
Foreign	60,887	68,275	548,532
Total	¥235,870	¥173,071	$2,124,955

The components of income taxes for the years ended March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Current:
Domestic	¥35,044	¥23,625	$315,712
Foreign	12,929	19,197	116,477
Total current	47,973	42,822	432,189
Deferred:
Domestic	8,873	(6,447)	79,937
Foreign	(1,235)	(261)	(11,126)
Total deferred	7,638	(6,708)	68,811
Total	¥55,611	¥36,114	$501,000

The major components of deferred tax assets and liabilities as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Deferred tax assets:
Inventories	¥ 18,488	¥ 14,669	$ 166,559
Depreciation	36,229	23,691	326,387
Accrued expenses	35,892	31,473	323,351
Accrued pension and severance costs	3,210	12,123	28,919
Accrued enterprise taxes	2,131	2,368	19,198
Tax loss carryforwards	33,480	37,323	301,622
Losses on investment securities	1,646	2,892	14,829
Allowance for doubtful receivables	4,982	6,446	44,883
Operating lease liabilities	23,448	21,007	211,243
Other	34,569	35,083	311,432
	194,075	187,075	1,748,423
Less: Valuation allowances	(37,349)	(30,456)	(336,477)
Total deferred tax assets	156,726	156,619	1,411,946
Deferred tax liabilities:
Depreciation	17,264	15,037	155,532
Lease receivables	11,854	9,187	106,793
Taxes on undistributed earnings	26,800	27,092	241,441
Unrealized gains on available-for-sale securities	7,507	2,364	67,631
Goodwill	15,372	14,048	138,486
Accrued pension and severance costs	9,248	3,790	83,315
Other intangible assets	33,166	35,884	298,793
Operating lease right-of-use assets	22,238	20,531	200,342
Other	12,338	12,433	111,153
Total deferred tax liabilities	155,787	140,366	1,403,486
Net deferred tax assets	¥ 939	¥ 16,253	$ 8,460

The valuation allowances relate primarily to the deferred tax assets of certain subsidiaries which have net operating loss carryforwards for tax purposes. The valuation allowances increased by ¥6,893 million ($62,099 thousand) and ¥4,318 million for the years ended March 31, 2021 and 2020, respectively.

Deferred tax assets and liabilities as of March 31, 2021 and 2020 are included in the consolidated balance sheets as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Deferred income taxes (other assets)	¥ 33,179	¥ 37,811	$298,910
Deferred income taxes (non-current liabilities)	(32,240)	(21,558)	(290,450)
Net deferred tax assets	¥ 939	¥ 16,253	$ 8,460

As of March 31, 2021, certain subsidiaries have net operating loss carryforwards for income tax purposes of ¥116,738 million ($1,051,694 thousand), of which ¥85,991 million ($774,694 thousand) will be carried forward indefinitely, and the remainder of ¥30,747 million ($277,000 thousand) will, at the latest, expire through the year ending March 31, 2036. These net operating loss carryforwards are available to offset future taxable income of the subsidiaries.

Deferred tax liabilities have not been recognized on undistributed earnings of its domestic subsidiaries as such earnings, if distributed in the form of dividends, are not taxable under present tax laws.

The Company recognizes tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities.

Reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Balance, as of April 1	¥1,338	¥1,536	$ 12,054
Additions for tax positions of the current year	-	77	-
Additions for tax positions of prior years	49	-	441
Reductions for tax positions of prior years	-	(195)	-
Settlements with tax authorities	(258)	(80)	(2,324)
Balance, as of March 31	¥1,129	¥1,338	$ 10,171

The total amounts of unrecognized tax benefits that would reduce the effective tax rate, if recognized, are ¥1,129 million ($10,171 thousand) and ¥1,338 million for the years ended March 31, 2021 and 2020, respectively.

Although the Company believes its estimates and assumptions of unrecognized tax benefits are reasonable, uncertainty regarding the final determination of tax audit settlements could affect the effective tax rate in the future period. Based on each of the items of which the Company is aware as of March 31, 2021, no significant changes to the unrecognized tax benefits are expected within the next twelve months.

Both interest and penalties accrued as of March 31, 2021 and 2020 in the consolidated balance sheets and included in income taxes for the years ended March 31, 2021 and 2020 in the consolidated statements of income were not material.

In Japan, tax examinations of the Company and major domestic subsidiaries by the tax authorities for the year ended March 31, 2017 and before have been completed. Tax examinations related to transfer pricing by the tax authorities for the year ended March 31, 2017 and before have been completed.

In foreign tax jurisdictions, tax examinations of major foreign subsidiaries for the year ended March 31, 2012 and before have been completed.

13. Equity

The Companies Act of Japan (the "Act") provides that an amount equal to 10% of a distribution of earnings be appropriated to the additional paid-in capital or legal reserve. The Act also provides to the extent that the sum of the additional paid-in capital account and the legal reserve account exceed 25% of the common stock account, then the amount of the excess (if any) is available for appropriations by resolution of the shareholders.

Retained earnings available for dividends under the Act are based on the amount presented in the Company's non-consolidated financial statements, which are prepared in accordance with accounting principles and practices generally accepted in Japan. Under the Act, retained earnings available for dividends as of March 31, 2021 amounted to ¥1,117,515 million ($10,067,703 thousand).

The appropriation of retained earnings for the year ended March 31, 2021 has been reflected in the consolidated financial statements, including the amount approved at the 125 ^th Ordinary General Meeting of Shareholders held on June 29, 2021.

14. Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss) for the years ended March 31, 2021 and 2020 are as follows:

	Unrealized gains (losses) on securities	Foreign currency translation adjustments	Pension liability adjustments	Unrealized gains (losses) on derivatives	Total
	(Millions of yen)
As of April 1, 2019	¥ (2)	¥ 2,112	¥(102,463)	¥ (240)	¥(100,593)
Change in accumulated other comprehensive income (loss)	(9)	(45,489)	(4,036)	665	(48,869)
Reclassification to net income	-	-	3,914	(543)	3,371
Other comprehensive income (loss)	(9)	(45,489)	(122)	122	(45,498)
Equity transactions with noncontrolling interests and other	-	(2,824)	(15,195)	10	(18,009)
As of March 31, 2020	¥(11)	¥(46,201)	¥(117,780)	¥ (108)	¥(164,100)
Change in accumulated other comprehensive income (loss)	12	79,114	27,376	(1,146)	105,356
Reclassification to net income	-	60	4,366	1,482	5,908
Other comprehensive income (loss)	12	79,174	31,742	336	111,264
Equity transactions with noncontrolling interests and other	-	-	-	-	-
As of March 31, 2021	¥ 1	¥ 32,973	¥ (86,038)	¥ 228	¥ (52,836)

	Unrealized gains (losses) on securities	Foreign currency translation adjustments	Pension liability adjustments	Unrealized gains (losses) on derivatives	Total
	(Thousands of U.S. dollars) (Note 3)
As of March 31, 2020	$(99)	$(416,225)	$(1,061,081)	$ (973)	$(1,478,378)
Change in accumulated other comprehensive income (loss)	108	712,738	246,631	(10,324)	949,153
Reclassification to net income	-	541	39,333	13,351	53,225
Other comprehensive income (loss)	108	713,279	285,964	3,027	1,002,378
Equity transactions with noncontrolling interests and other	-	-	-	-	-
As of March 31, 2021	$ 9	$ 297,054	$ (775,117)	$ 2,054	$ (476,000)

The amounts reclassified out of each component of accumulated other comprehensive income (loss) to net income for the years ended March 31, 2021 and 2020 are as follows:

Affected line item in the consolidated statements of income	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Foreign currency translation adjustments
Other, net	¥ (60)	¥ -	$ (541)
Net income attributable to FUJIFILM Holdings	(60)	-	(541)
Pension liability adjustments
Other, net	(7,086)	(7,116)	(63,838)
Income taxes	2,764	2,757	24,901
Net income attributable to noncontrolling interests	(44)	445	(396)
Net income attributable to FUJIFILM Holdings	(4,366)	(3,914)	(39,333)
Unrealized gains (losses) on derivatives
Foreign exchange gains (losses), net	(1,917)	1,412	(17,270)
Interest expense	(225)	-	(2,027)
Other, net	-	(356)	-
Income taxes	660	(316)	5,946
Net income attributable to noncontrolling interests	-	(197)	-
Net income attributable to FUJIFILM Holdings	(1,482)	543	(13,351)
Total	¥(5,908)	¥(3,371)	$(53,225)

The related tax effects allocated to each component of other comprehensive income (loss), including amounts attributable to noncontrolling interests, for the years ended March 31, 2021 and 2020 are as follows:

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Millions of yen)
2021
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	¥ 17	¥ (5)	¥ 12
Reclassification to net income	-	-	-
Net change in unrealized gains (losses)	17	(5)	12
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	80,575	-	80,575
Reclassification to net income	60	-	60
Net change in foreign currency translation adjustments	80,635	-	80,635
Pension liability adjustments:
Change in pension liability adjustments	39,634	(12,170)	27,464
Reclassification to net income	7,086	(2,764)	4,322
Net change in pension liability adjustments	46,720	(14,934)	31,786
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	(1,654)	508	(1,146)
Reclassification to net income	2,142	(660)	1,482
Net change in unrealized gains (losses)	488	(152)	336
Total	¥127,860	¥(15,091)	¥112,769

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Millions of yen)
2020
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	¥ (12)	¥ 3	¥ (9)
Reclassification to net income	-	-	-
Net change in unrealized gains (losses)	(12)	3	(9)
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	(50,279)	-	(50,279)
Reclassification to net income
Net change in foreign currency translation adjustments	(50,279)	-	(50,279)
Pension liability adjustments:
Change in pension liability adjustments	(7,701)	3,484	(4,217)
Reclassification to net income	7,116	(2,757)	4,359
Net change in pension liability adjustments	(585)	727	142
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	1,263	(386)	877
Reclassification to net income	(1,056)	316	(740)
Net change in unrealized gains (losses)	207	(70)	137
Total	¥(50,669)	¥ 660	¥(50,009)

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Thousands of U.S. dollars) (Note 3)
2021
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	$ 153	$ (45)	$ 108
Reclassification to net income	-	-	-
Net change in unrealized gains (losses)	153	(45)	108
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	725,901	-	725,901
Reclassification to net income	541	-	541
Net change in foreign currency translation adjustments	726,442	-	726,442
Pension liability adjustments:
Change in pension liability adjustments	357,063	(109,640)	247,423
Reclassification to net income	63,838	(24,901)	38,937
Net change in pension liability adjustments	420,901	(134,541)	286,360
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	(14,901)	4,577	(10,324)
Reclassification to net income	19,297	(5,946)	13,351
Net change in unrealized gains (losses)	4,396	(1,369)	3,027
Total	$1,151,892	$(135,955)	$1,015,937

15. Commitments and Contingent Liabilities

Guarantees

The Company guarantees certain indebtedness of others and other obligations. As of March 31, 2021, the maximum potential amount of future payments (undiscounted) the Company could be required to make under such guarantees was ¥2,886 million ($26,000 thousand), of which ¥1,450 million ($13,063 thousand) were guarantees of employee mortgage loans to financial institutions. In the event of an employee's insolvency, certain subsidiaries of the Company will need to pay the default mortgage on behalf of the employee. The guarantees are partly secured by the employees' property in the amount of ¥1,450 million ($13,063 thousand). The terms of the mortgage loan guarantees are from 1 to 16 years. The Company has not made any significant payments under such guarantees in the past, and as of March 31, 2021, the carrying amount of the liability for the Company's obligations under such guarantees was not material.

Purchase Commitments, Other Commitments and Contingencies

Commitments outstanding as of March 31, 2021, principally for the construction and purchase of property, plant and equipment, amounted to ¥43,159 million ($388,820 thousand). As of March 31, 2021, the Company was contingently liable for discounted notes receivable on a full recourse basis with banks of ¥1,512 million ($13,622 thousand).

Due to the nature of its business, the Company is subject to various threatened or filed legal actions and regulatory investigations. The Company has provided the necessary accruals, if any, for environmental remediation, litigation and regulatory investigations, for which occurrence of the future events is probable and the amount of loss can be reasonably estimated. Although the amount of the ultimate exposure, if any, cannot be determined at this time, the Company does not expect the final outcome of those matters to have a material adverse effect on the financial position, operating results and cash flows of the Company.

Product Warranties

The Company provides a warranty for certain of its products. These warranties generally extend for a period of one year from the date of sale. The changes in the Company's warranty liability balance are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Balance, as of April 1	¥ 8,593	¥ 9,447	$ 77,414
Warranties issued during the current period	6,813	6,570	61,379
Settlements made during the current period	(6,500)	(7,034)	(58,559)
Other, including changes in liability for pre-existing warranties during the current period	1,032	(390)	9,298
Balance, as of March 31	¥ 9,938	¥ 8,593	$ 89,532

16. Net Income Attributable to FUJIFILM Holdings per Share

A calculation of the basic and diluted net income attributable to FUJIFILM Holdings per share for the years ended March 31, 2021 and 2020 is as follows:

	2021	2020	2021
	(Millions of Yen)		(Thousands of U.S. dollars) (Note 3)
Net income attributable to FUJIFILM Holdings	¥181,205	¥124,987	$1,632,478

	2021	2020
	(Shares)
Weighted average common shares outstanding-Basic	399,762,945	408,215,110
Effect of dilutive securities: Stock options	1,357,797	1,289,413
Weighted average common shares outstanding-Diluted	401,120,742	409,504,523

	2021	2020	2021
	(Yen)		(U.S. dollars) (Note 3)
Net income attributable to FUJIFILM Holdings per share:
Basic	¥453.28	¥306.18	$4.08
Diluted	451.75	305.22	4.07

The number of common stocks to be issued when stock options are exercised in the future, which had no dilutive effect and were excluded from the calculation of diluted net income attributable to FUJIFILM Holdings per share, were 26,900 and 23,500 shares as of March 31, 2021 and 2020, respectively.

17. Stock-Based Compensation Plan

The Company has stock-based compensation plans for Directors, Executive Officers, and important employees of the Company as well as Directors, Executive Officers, Fellows, and important employees of its certain consolidated subsidiaries. Under the stock-based compensation plans, one stock acquisition right represents one option to purchase 100 shares of the Company's common stock.

General terms of contracts are as follows. It is presented in numbers of shares on grant dates.

Stock acquisition rights	Number of shares	Exercise price (Yen)	Grant date	Period for exercising stock acquisition rights
No. 3-1	255,300	1	September 1, 2009	September 2, 2009 ~ September 1, 2039 (Note 1)
No. 4-1	277,800	1	January 31, 2011	February 1, 2011 ~ January 31, 2041 (Note 1)
No. 4-2	196,200	2,965	January 31, 2011	December 25, 2012 ~ December 24, 2020
No. 5-1	386,000	1	April 2, 2012	April 3, 2012~ April 2, 2042 (Note 2)
No. 5-2	23,100	2,012	April 2, 2012	March 3, 2014 ~ March 2, 2022
No. 6-1	370,400	1	April 1, 2013	April 2, 2013 ~ April 1, 2043 (Note 2)
No. 6-2	23,500	1,842	April 1, 2013	February 27, 2015 ~ February 26, 2023
No. 7-1	227,100	1	April 1, 2014	April 2, 2014 ~ April 1, 2044 (Note 2)
No. 7-2	23,200	2,803	April 1, 2014	February 28, 2016 ~ February 27, 2024
No. 8-1	182,100	1	April 1, 2015	April 2, 2015 ~ April 1, 2045 (Note 2)
No. 8-2	22,500	4,205	April 1, 2015	February 27, 2017 ~ February 26, 2025
No. 9-1	174,800	1	June 1, 2016	June 2, 2016 ~ June 1, 2046 (Note 2)
No. 9-2	25,100	4,495	June 1, 2016	April 28, 2018 ~ April 27, 2026
No. 10-1	163,300	1	June 1, 2017	June 2, 2017 ~ June 1, 2047 (Note 3)
No. 10-2	23,500	4,146	June 1, 2017	April 28, 2019 ~ April 27, 2027
No. 11-1	174,000	1	June 1, 2018	June 2, 2018 ~ June 1, 2048 (Note 3)
No. 11-2	24,100	4,241	June 1, 2018	May 11, 2020 ~ May 10, 2028
No. 12-1	136,300	1	June 1, 2019	June 2, 2019 ~ June 1, 2049 (Note 3)
No. 12-2	23,500	5,238	June 1, 2019	May 9, 2021 ~ May 8, 2029
No. 13-1	151,600	1	June 1, 2020	June 2, 2020 ~ June 1, 2050 (Note 3)
No. 13-2	26,900	5,043	June 1, 2020	May 14, 2022 ~ May 13, 2030

The Company recognized stock-based compensation cost of ¥738 million ($6,649 thousand) and ¥694 million as "Selling, general and administrative" in the consolidated statements of income for the years ended March 31, 2021 and 2020, respectively, and the cost was measured as the fair value of the options estimated using the Black-Scholes pricing model. The deferred income tax benefit related to the cost was ¥100 million ($901 thousand) and ¥205 million for the years ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was no unrecognized stock-based compensation cost. There were 946 stock acquisition rights exercised during the year ended March 31, 2021. The weighted average grant date fair values of stock acquisition rights granted during the years ended March 31, 2021 and 2020 were ¥4,135 ($37.25) and ¥4,346, respectively. The total fair values of shares vested during the years ended March 31, 2021 and 2020 were ¥736 million ($6,631 thousand) and ¥692 million, respectively. Cash received from the exercise of stock options for the year ended March 31, 2021, was ¥116 million ($1,045 thousand).

A summary of the status of stock acquisition rights during the years ended March 31, 2021 and 2020 is as follows:

2021	Number of shares	Weighted average exercise price (Yen)	Weighted average remaining contractual term (Years)	Aggregate intrinsic value (Millions of yen)
Outstanding as of April 1, 2020	1,427,100	¥ 349
Granted	178,500	761
Exercised	(94,600)	1,230
Forfeited or expired	(8,600)	2,965
Outstanding as of March 31, 2021	1,502,400	327	22.9	¥9,381
Exercisable as of March 31, 2021	1,475,500	241	23.2	9,340

2020	Number of shares	Weighted average exercise price (Yen)	Weighted average remaining contractual term (Years)	Aggregate intrinsic value (Millions of yen)
Outstanding as of April 1, 2019	1,407,800	¥ 418
Granted	159,800	771
Exercised	(130,900)	1,424
Forfeited or expired	(9,600)	2,828
Outstanding as of March 31, 2020	1,427,100	349	23.0	¥7,264
Exercisable as of March 31, 2020	1,403,600	267	23.2	7,260

2021	Weighted average exercise price (U.S. dollar)	Aggregate intrinsic value (Thousands of U.S. dollars) (Note 3)
Outstanding as of April 1, 2020	$ 3.14
Granted	6.86
Exercised	11.08
Forfeited or expired	26.71
Outstanding as of March 31, 2021	2.95	$84,514
Exercisable as of March 31, 2021	2.17	84,144

The aggregate intrinsic value of shares exercised under the stock acquisition rights plan was ¥505 million ($4,550 thousand) and ¥526 million for the years ended March 31, 2021 and 2020, respectively.

The fair value of the stock acquisition rights as of the grant date was estimated using the Black-Scholes pricing model with the following assumptions:

Stock acquisition rights	Expected volatility	Expected remaining life	Expected dividend (Yen)	Risk-free interest rate
No. 3-1	58.623%	1 year	30	0.170%
No. 4-1	23.274%	1 year	27.5	0.145%
No. 4-2	34.205%	6 years	27.5	0.584%
No. 5-1	28.548%	1 year	32.5	0.105%
No. 5-2	38.826%	6 years	32.5	0.459%
No. 6-1	28.682%	1 year	37.5	0.055%
No. 6-2	36.549%	6 years	37.5	0.180%
No. 7-1	36.312%	1 year	40	0.070%
No. 7-2	37.091%	6 years	40	0.252%
No. 8-1	24.178%	1 year	55	0.020%
No. 8-2	29.772%	6 years	55	0.123%
No. 9-1	32.900%	1 year	67.5	(0.265%)
No. 9-2	29.840%	6 years	67.5	(0.256%)
No. 10-1	28.736%	2 years	67.5	(0.165%)
No. 10-2	29.426%	6 years	67.5	(0.092%)
No. 11-1	27.457%	3 years	72.5	(0.131%)
No. 11-2	28.715%	6 years	72.5	(0.071%)
No. 12-1	23.632%	3 years	77.5	(0.197%)
No. 12-2	26.672%	6 years	77.5	(0.203%)
No. 13-1	28.112%	3 years	87.5	(0.195%)
No. 13-2	27.601%	6 years	87.5	(0.134%)

The expected volatility is determined based on the historical volatility of the Company's common stock price over the most recent period corresponding with the estimated expected remaining life of the Company's stock acquisition rights. The expected remaining life of No. 3-1 Stock Acquisition Rights, No. 4-1 Stock Acquisition Rights, No. 5-1 Stock Acquisition Rights, No. 6-1 Stock Acquisition Rights, No. 7-1 Stock Acquisition Rights, No. 8-1 Stock Acquisition Rights and No. 9-1 Stock Acquisition Rights was determined as one year based on the minimum term of Directors and Executive Officers of the Company and FUJIFILM Corporation. The expected remaining life of No. 10-1 Stock Acquisition Rights, No. 11-1 Stock Acquisition Rights, No. 12-1 Stock Acquisition Rights and No. 13-1 Stock Acquisition Rights was determined as the years reflecting the actual term of the year before the grant date. The expected remaining life of No. 4-2 Stock Acquisition Rights, No. 5-2 Stock Acquisition Rights, No. 6-2 Stock Acquisition Rights, No. 7-2 Stock Acquisition Rights, No. 8-2 Stock Acquisition Rights, No. 9-2 Stock Acquisition Rights, No. 10-2 Stock Acquisition Rights, No. 11-2 Stock Acquisition Rights, No. 12-2 Stock Acquisition Rights and No. 13-2 Stock Acquisition Rights was determined as 6 years based on the midpoint of the period for exercising the stock acquisition rights.

18. Derivatives

The Company operates internationally, and is exposed to market risks arising from fluctuations in foreign currencies, interest rates and certain commodity prices. The Company utilizes derivative financial instruments solely to reduce these risks.

The Company has established risk management policies for approval, reporting and monitoring of derivative financial instruments. The risk management policies prohibit the Company from holding or issuing derivative financial instruments for trading purposes. The following is a summary of the Company's risk management policies and impact on these strategies on the Company's consolidated financial statements.

Cash Flow Hedges

The Company has entered into interest rate swap contracts to reduce the risks of fluctuations in interest rates pertaining to variable interest rate loans, and cross currency interest rate swap contracts to reduce the risks of fluctuations in interest rates and foreign currency exchange rates pertaining to loans denominated in foreign currencies. In addition, certain subsidiaries of the Company have entered into forward currency exchange contracts to reduce the risks of fluctuations in foreign currencies pertaining to forecasted import purchases and export sales from/to third parties and group companies, and related receivables and payables denominated in foreign currencies. If the Japanese yen weakens significantly against foreign currencies (primarily the U.S. dollar), the increase in the cash flows caused by increases of value in future foreign currency is offset by gains or losses in the value of the forward exchange contracts designated as hedges. Conversely, if the Japanese yen strengthens, the decrease in the cash flows caused by decreases of value in future foreign currency is offset by gains or losses in the value of the forward contracts designated as hedges.

Changes in the fair value of those derivative instruments designated or qualified as cash flow hedges are reported in "Accumulated other comprehensive income (loss)", net of applicable taxes, in the consolidated balance sheets. These amounts are reclassified into earnings in the same period during which the hedged items affect earnings.

As of March 31, 2021, the Company expects to reclassify ¥301 million ($2,712 thousand) of unrealized losses on derivatives (before tax effect) from accumulated other comprehensive income (loss) to earnings during the next twelve months.

Derivatives Not Designated as Hedges

Certain subsidiaries of the Company have entered into forward currency exchange contracts or currency swap contracts to reduce the risks of fluctuations in foreign currency exchange pertaining to forecasted transactions, and related receivables and payables denominated in foreign currencies. In addition, certain subsidiaries of the Company have entered into interest rate swap contracts to reduce the risks of fluctuations in interest rate of variable interest rate liabilities, and cross currency interest rate swap contracts to reduce the risks of fluctuations in interest and foreign currency exchange rates pertaining to loans denominated in foreign currencies. Although these derivatives are effective as hedges from an economic perspective, certain subsidiaries of the Company do not designate these contracts as hedges as required in order to apply hedge accounting. As a result, changes in the fair value of these derivatives are recorded in earnings immediately.

Volume of Derivative Activities

Notional amounts of forward currency exchange contracts, currency swaps, cross currency interest rate swaps, interest rate swaps and other contracts as of March 31, 2021 and 2020 are summarized as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Forward currency exchange contracts (short)	¥19,634	¥75,797	$176,883
Forward currency exchange contracts (long)	21,580	42,319	194,414
Currency swaps	33,338	29,870	300,342
Cross currency interest rate swaps	13,551	13,321	122,081
Interest rate swaps	31,548	88,550	284,216
Other	26,538	30,903	239,081

Impacts on the Consolidated Financial Statements

The locations and amounts of fair values of derivatives in the consolidated balance sheets as of March 31, 2021 and 2020 are summarized as follows:

	Derivative assets
	Balance sheet location	Fair value
		2021	2020	2021
		(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Derivatives designated as hedging instruments
Forward currency exchange contracts	Prepaid expenses and other	¥ 720	¥ 1,235	$ 6,487
Cross currency interest rate swaps	Other long-term receivables	672	446	6,054
Total		1,392	1,681	12,541
Derivatives not designated as hedging instruments
Forward currency exchange contracts	Prepaid expenses and other	26	544	233
Currency swaps	Prepaid expenses and other	-	4,344	-
Other	Prepaid expenses and other	4,718	1	42,505
Other	Other long-term receivables	2,019	-	18,189
Total		6,763	4,889	60,927
Total derivative assets		¥ 8,155	¥ 6,570	$ 73,468

	Derivative liabilities
	Balance sheet location	Fair value
		2021	2020	2021
		(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Derivatives designated as hedging instruments
Forward currency exchange contracts	Other current liabilities	¥ 381	¥ 254	$ 3,433
Interest rate swaps	Other current liabilities	-	254	-
Interest rate swaps	Other non-current liabilities	347	582	3,126
Total		728	1,090	6,559
Derivatives not designated as hedging instruments
Forward currency exchange contracts	Other current liabilities	90	43	810
Forward currency exchange contracts	Other non-current liabilities	-	75	-
Currency swaps	Other current liabilities	2,772	24	24,973
Currency swaps	Other non-current liabilities	1,332	54	12,000
Interest rate swaps	Other current liabilities	11	26	99
Interest rate swaps	Other non-current liabilities	-	331	-
Other	Other current liabilities	-	1,679	-
Other	Other non-current liabilities	-	1,903	-
Total		4,205	4,135	37,882
Total derivative liabilities		¥4,933	¥5,225	$44,441

The location and amounts of gains and losses related to derivatives recorded in the consolidated statements of income for the years ended March 31, 2021 and 2020 are summarized as follows:

Cash Flow Hedges	2021
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Millions of yen)
Forward currency exchange contracts	¥(1,647)	Foreign exchange gains (losses), net	¥(1,917)
Cross currency interest rate swaps	(7)	-	-
Interest rate swaps	-	Interest expense	(225)
Total	¥(1,654)		¥(2,142)

Cash Flow Hedges	2020
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Millions of yen)
Forward currency exchange contracts	¥1,370	Foreign exchange gains (losses), net	¥1,412
Cross currency interest rate swaps	(107)	-	-
Interest rate swaps	-	Other, net	(356)
Total	¥1,263		¥1,056

Cash Flow Hedges	2021
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Thousands of U.S. dollars) (Note 3)
Forward currency exchange contracts	$(14,838)	Foreign exchange gains (losses), net	$(17,270)
Cross currency interest rate swaps	(63)	-	-
Interest rate swaps	-	Interest expense	(2,027)
Total	$(14,901)		$(19,297)

Derivatives Not Designated as Hedges	Statements of income location	Amount
		2021	2020	2021
		(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Forward currency exchange contracts	Foreign exchange gains (losses), net	¥ 194	¥ (240)	$ 1,748
Currency swaps	Foreign exchange gains (losses), net	(7,082)	8,026	(63,802)
Interest rate swaps	Other, net	64	84	576
Other	Other, net	13,304	(4,059)	119,856
Total		¥6,480	¥3,811	$58,378

19. Fair Value of Financial Instruments and Concentration of Credit Risk

Fair Value of Financial Instruments

The fair value of financial instruments has been determined using available market information or other appropriate valuation methodologies. Although management uses its best judgment in estimating the fair value of such instruments, the methodologies and assumptions for the estimate of fair value are inherently subjective. Consequently, the estimated amounts are not necessarily indicative of the amounts which could be realized or would be paid in a current market exchange. The following methodologies and assumptions are used in estimating the fair value of its financial instruments:

Cash and cash equivalents, Notes and accounts receivable, Short-term debt, Notes and accounts payable: The carrying amounts approximate the fair values because of the short maturity of these instruments.

Investment securities: The fair values of stocks with active markets are estimated based on quoted market prices. Debt securities with inactive markets are measured by using observable inputs, either directly or indirectly.

Long-term debt: The fair value of long-term debt is estimated based on quoted market prices or using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements. The fair values and the corresponding carrying amounts of long-term debt, including the current portion, were ¥498,543 million ($4,491,378 thousand) and ¥497,254 million ($4,479,766 thousand), respectively, as of March 31, 2021 and ¥568,821 million and ¥568,035 million, respectively, as of March 31, 2020.

The fair values of long-term debt as of March 31, 2021 and 2020 were classified as Level 2. The fair value hierarchy that prioritizes the inputs used in valuation techniques is described in Note 20 "Fair Value Measurement".

Derivative financial instruments: The fair values of forward currency exchange contracts, currency swaps, cross currency interest rate swaps and interest rate swaps are estimated based on the market prices obtained from financial institutions or third parties, which are measured by observable inputs. The fair values and the carrying amounts of these derivative assets were ¥8,155 million ($73,468 thousand) and ¥6,570 million, and those of derivative liabilities were ¥4,933 million ($44,441 thousand) and ¥5,225 million, as of March 31, 2021 and 2020, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents, investment securities, trade accounts receivable and lease receivables, and derivatives.

The Company maintains cash and cash equivalents with various financial institutions. The Company's policy is to not concentrate risks with any one financial institution. The Company periodically performs credit evaluations of those financial institutions.

Investment securities are exposed to risks such as fluctuations in market prices, but the Company periodically reviews market values and the financial positions of the issuers and performs ongoing evaluations of holdings.

Trade receivables and lease receivables are exposed to credit risks because they include the trade receivables and lease receivables from certain major customers. However, the Company manages this risk by maintenance of customer's guarantee deposits and ongoing performance of credit evaluations. An allowance for doubtful accounts is maintained at a level which the Company believes is sufficient to cover potential losses.

Regarding derivatives, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The Company conducts such derivative transactions with high credit quality financial institutions to reduce risks.

20. Fair Value Measurement

ASC 820 "Fair value measurement" defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, establishes a fair value hierarchy that prioritizes the inputs used in valuation techniques into the following three levels, depending on the observability of those inputs:

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Observable inputs other than those classified as Level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (inactive markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3: Unobservable inputs to the valuation techniques which are significant to the measurement of fair value of assets or liabilities.

Assets and liabilities that the Company measures at fair value on a recurring basis include investment securities, derivative assets and liabilities, and contingent consideration. The fair value hierarchy as of March 31, 2021 and 2020 is as follows:

	2021
	Level 1	Level 2	Level 3	Total
	(Millions of yen)
Assets:
Investment securities
Corporate bonds	¥ -	¥ 587	¥ -	¥ 587
Stocks	97,680	-	-	97,680
Investment trusts, etc.	-	-	5,760	5,760
Short-term derivative assets
Forward currency exchange contracts	-	746	-	746
Other	-	4,718	-	4,718
Long-term derivative assets
Cross currency interest rate swaps	-	672	-	672
Other	-	2,019	-	2,019
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	471	-	471
Currency swaps	-	2,772	-	2,772
Interest rate swaps	-	11	-	11
Long-term derivative liabilities
Currency swaps	-	1,332	-	1,332
Interest rate swaps	-	347	-	347

	2020
	Level 1	Level 2	Level 3	Total
	(Millions of yen)
Assets:
Investment securities
Corporate bonds	¥ -	¥501	¥ -	¥501
Stocks	74,069	-	-	74,069
Investment trusts, etc.	-	-	3,951	3,951
Short-term derivative assets
Forward currency exchange contracts	-	1,779	-	1,779
Currency swaps	-	4,344	-	4,344
Other	-	1	-	1
Long-term derivative assets
Cross currency interest rate swaps	-	446	-	446
Other long-term receivables
Contingent consideration	-	-	2,982	2,982
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	297	-	297
Currency swaps	-	24	-	24
Interest rate swaps	-	280	-	280
Other	-	1,679	-	1,679
Long-term derivative liabilities
Forward currency exchange contracts	-	75	-	75
Currency swaps	-	54	-	54
Interest rate swaps	-	913	-	913
Other	-	1,903	-	1,903
Other non-current liabilities
Contingent consideration	-	-	3,223	3,223

	2021
	Level 1	Level 2	Level 3	Total
	(Thousands of U.S. dollars)
	(Note 3)
Assets:
Investment securities
Corporate bonds	$ -	$ 5,288	$ -	$ 5,288
Stocks	880,000	-	-	880,000
Investment trusts, etc.	-	-	51,892	51,892
Short-term derivative assets
Forward currency exchange contracts	-	6,721	-	6,721
Other	-	42,505	-	42,505
Long-term derivative assets
Cross currency interest rate swaps	-	6,054	-	6,054
Other	-	18,189	-	18,189
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	4,243	-	4,243
Currency swaps	-	24,973	-	24,973
Interest rate swaps	-	99	-	99
Long-term derivative liabilities
Currency swaps	-	12,000	-	12,000
Interest rate swaps	-	3,126	-	3,126

Assets classified as Level 1 include principally listed stocks, which were valued using unadjusted quoted prices in active markets for identical assets. Assets and liabilities classified as Level 2 include principally derivatives. Derivative assets and liabilities were classified as Level 2 because they were valued based on market approach using inputs that were corroborated by observable market data obtained from financial institutions or third parties. Assets and liabilities classified as Level 3 include principally investment funds and assets and liabilities for contingent consideration, which were valued using unobservable inputs that were significant to the measurement of their value.

Changes in assets and liabilities classified as the fair value hierarchy Level 3 for the years ended March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Assets
Balance, as of April 1	¥6,933	¥3,274	$62,459
Gains or losses
Net income (Note 1)	(1,460)	(614)	(13,153)
Purchases	1,072	594	9,658
Disposal and settlements	(785)	(462)	(7,072)
Business combinations (Note 2)	-	4,141	-
Balance, as of March 31	¥5,760	¥6,933	$51,892
Liabilities
Balance, as of April 1	¥3,223	¥ -	$29,036
Gains or losses
Net income (Note 1)	(3,223)	(809)	(29,036)
Business combinations (Note 2)	-	4,032	-
Balance, as of March 31	¥ -	¥3,223	$ -

^{(Note 1)} Gains or losses recognized in net income are mainly presented in "Selling, general and administrative" or "Other, net" in the consolidated statements of income. Those gains or losses related to assets and liabilities held by the Company at the end of year were ¥1,763 million ($15,883 thousand) and ¥195 million for the years ended March 31, 2021 and 2020, respectively.
^{(Note 2)} The figures are assets and liabilities recognized by setting contingent consideration as part of the consideration for a business combination.

For the year ended March 31, 2021, assets measured at fair value on a nonrecurring basis consisted of property, plant and equipment and intangible assets for which impairment losses were recognized. The Company measured the fair values of property, plant and equipment and intangible assets mainly held by the Healthcare & Material Solutions segment by using the discounted cash flow method based on the estimated future cash flows and other unobservable inputs. As a result, the Company recognized impairment losses of ¥28,448 million ($256,288 thousand) on the property, plant and equipment and of ¥12,689 million ($114,315 thousand) on the intangible assets as their carrying amounts were not deemed recoverable. The impairment losses are mainly included in "Cost of sales" and "Selling, general and administrative" in the consolidated statements of income. Those property, plant and equipment and intangible assets were classified as Level 3 because they were valued using unobservable inputs, and their balances as of March 31, 2021 were ¥10,808 million ($97,369 thousand) and ¥1,356 million ($12,216 thousand), respectively.

21. Finance Receivables

Finance Receivables and Allowance for Doubtful Finance Receivables

Finance receivables are evaluated individually or collectively, based on the financial positions of its customers and delays in payment. For collectively evaluated financing receivables, the allowance is determined by using percentages based on historical losses, whereas for individually evaluated financing receivables, the allowance is determined by using percentages based on the financial positions of individual customer. The credit quality of finance receivables is reviewed every quarter based on the financial positions of customers and delays in payment. Where the Company estimates that the credit quality of a particular receivable has decreased significantly, an allowance is individually recorded. Finance receivables are charged-off when it becomes clear that the finance receivables will be uncollectable according to a decision of court.

The following table provides the roll-forward of allowance for doubtful finance receivable (excluding trade accounts receivable due within one year) for the years ended March 31, 2021 and 2020, and the breakdown of balances as of March 31, 2021 and 2020.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Allowance for doubtful finance receivables:
Balance, as of April 1	¥(10,007)	¥(10,735)	$(90,153)
Charge-offs	3,059	2,036	27,559
Provisions	(1,069)	(1,807)	(9,631)
Other	(406)	499	(3,658)
Balance, as of March 31	¥(8,423)	¥(10,007)	$(75,883)
Ending balance: individually evaluated for impairment	(4,722)	(7,562)	(42,541)
Ending balance: collectively evaluated for impairment	(3,701)	(2,445)	(33,342)

Information about finance receivables, excluding trade accounts receivable due within one year, as of March 31, 2021 and 2020 is as follows:

Finance Receivables and Allowance for Doubtful Finance Receivables (continued)

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Finance receivables:
Balance, as of March 31	¥113,712	¥117,143	$1,024,432
Ending balance: individually evaluated for impairment	4,789	7,562	43,144
Ending balance: collectively evaluated for impairment	108,923	109,581	981,288

There were no significant purchases or sales in finance receivables occurred during the year ended March 31, 2021.

Past Due Finance Receivables

Past due finance receivables, excluding trade accounts receivable due within one year, as of March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
31-90 days	¥ 993	¥1,173	$ 8,946
Greater than 90 days	5,097	6,176	45,919
Total	¥6,090	¥7,349	$54,865

22. Revenue

If a contract with a customer includes multiple performance obligations, the transaction price of multiple contracts will be allocated based on the standalone selling price of each individually sold product (if the standalone selling price is not directly observable, then it will be based on an assumed selling price when sold individually).

Costs incurred by the Company in connection with sales incentives related to purchase or promotion of the Company's products are classified as reduction of revenue. Such costs include the estimated cost of promotional discounts, dealer volume rebates and discounts for certain cash transactions. These costs are mainly based on claims from customers / dealers or amount calculated in accordance with agreements to the extent that there is likely to be no significant reversal of cumulative revenue recognized.

Contracts that are expected, at the start of contracts, to be fulfilled within one year from when the Company transfers the promised goods or services to the customer to the time at which the customer issues payment for these goods or services do not include the effect of the time value of money in the promised compensation.

Revenue Recognized from Contracts with Customers and Other Sources

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Revenue recognized from contracts with customers	¥2,116,173	¥2,252,614	$19,064,621
Revenue recognized from other sources	76,346	62,527	687,802
Total	¥2,192,519	¥2,315,141	$19,752,423

Revenue recognized from other sources is revenue recognized from lease commitments.

Association between disaggregated revenue, segment revenue and timing of satisfaction of performance obligations

The disaggregated revenue by geographic segment, attributed to the locations of the external customers, is as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Japan	¥ 927,910	¥1,004,076	$ 8,359,550
The Americas	416,341	424,257	3,750,820
Europe	267,902	296,623	2,413,531
Asia and others	580,366	590,185	5,228,522
Revenue total	¥2,192,519	¥2,315,141	$19,752,423

The disaggregated revenue by business segment is as follows:

2021	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Imaging Solutions:
Photo Imaging	¥ 195,789	¥ 228,903	$ 1,763,864
Electronic Imaging	68,180	72,005	614,234
Optical Devices	21,267	31,695	191,595
Healthcare & Material Solutions:
Healthcare	567,752	504,134	5,114,883
Display Materials	94,884	85,500	854,811
Industrial Products/Electronic Materials/Fine Chemicals	191,333	177,888	1,723,721
Recording Media	26,249	41,865	236,477
Graphic Systems/Inkjet	171,145	213,569	1,541,847
Other	1,230	1,253	11,081
Document Solutions:
Office Products & Printers	474,477	532,124	4,274,568
Production Services	96,948	116,045	873,405
Solution & Services	249,566	273,527	2,248,342
Other	33,699	36,633	303,595
Revenue total	¥2,192,519	¥2,315,141	$19,752,423

The performance obligations of the Company are divided into three major categories: consumer products and industrial products, equipment requiring installation, and services.

The Company's association with each segment is as follows:

The Company sells color films, digital cameras, color paper for photo printing, and instant photo systems in "Imaging Solutions" and materials for medical systems such as X-ray films, pharmaceuticals, materials for graphic systems such as CTP plates, display materials such as protective films for polarizers, recording media such as magnetic tapes for computers, and electronic materials such as semiconductor processing materials in "Healthcare & Material Solutions". The Company sells these products as consumer products and industrial products. Revenue from these products is recognized when goods are delivered or shipped to customers, depending on the timing of title and risk transfer.

The Company mainly sells certain equipment which requires customer acceptance including materials and equipment for medical systems such as digital endoscopes and ultrasound imaging and diagnostic system, and inkjet equipment such as Inkjet Digital Presses in "Healthcare & Material Solutions", digital multifunction devices, on-demand publishing systems, and computer printing systems in "Document Solutions". Revenue from these products is recognized when equipment is installed and customer acceptance is obtained.

The Company mainly provides services for photo printing in "Imaging Solutions", maintenance services for materials and equipment for medical systems in "Healthcare & Material Solutions", and managed print services and business process outsourcing in "Document Solutions". The Company provides these offerings as services. Revenue from these services is recognized when the services are provided to customers.

Contract Balance

The breakdown of contract balances as of March 31, 2021 and 2020 is as follows.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Receivables from contracts with customers	¥522,990	¥463,747	$4,711,622
Contract liabilities	97,245	48,393	876,081
Contract assets	10,941	7,920	98,568

Revenue recognized from the satisfaction (or partial satisfaction) of performance obligations in past periods was not material for the years ended March 31, 2021 and 2020.

Primary changes in contract liabilities for the years ended March 31, 2021 and 2020 are as follows:

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Revenue recognized that was included in contract liability balance at beginning of year	¥23,377	¥30,523	$210,604
Increase due to receipt of cash, excluding revenue recognized during year	63,703	37,506	573,901

Transaction price allocated to remaining performance obligations

As of March 31, 2021, the transaction price allocated to unsatisfied performance obligations for contracts with an individual estimated contract period exceeding one year is ¥178,750 million ($1,610,360 thousand). This transaction price primarily relates to maintenance service contracts for equipment sold to customers. This transaction price is expected to be recognized as revenue over a period of approximately one to five years. In addition, the relevant disclosure is omitted for contracts with an individual estimated contract period of less than one year.

Assets recognized from the costs to obtain or fulfill a contract with a customer

The Company identifies the portion which is expected to be recoverable of the incremental cost to obtain a contract with a customer and fulfillment cost directly related to the contract as an acquired asset and recognizes it in "Prepaid expenses and other" of "Current assets" and "Other" of "Other assets" in the consolidated balance sheets.

The costs to fulfill contracts capitalized by the Company include expenses for surveys performed to optimize overall print environments of printer devices for offices which are conducted before providing outsourcing services, including maintenance, for printing devices within offices in the Document Solutions business. These assets are amortized equally over a period of one to ten years based on the estimated contract period. In addition, when the amortization period of the asset to be identified is within one year, practical expedients are applied and the incremental cost of the contract is expensed as incurred.

	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Assets recognized from the costs to obtain contracts	¥ 7	¥ 11	$ 63
Assets recognized from the costs to fulfill contracts	2,511	2,925	22,622
Total	¥2,518	¥2,936	$22,685

Aggregate amortization expenses for identifiable assets acquired from the cost of contract for the years ended March 31, 2021 and 2020 were ¥1,428 million ($12,865 thousand) and ¥1,471 million, respectively.

23. Acquisitions and Sale of Subsidiary Shares

Acquisition of diagnostic imaging-related business of Hitachi, Ltd.

FUJIFILM Corporation, a wholly owned subsidiary of the Company, acquired diagnostic imaging-related business (the "Business") from Hitachi, Ltd. in order to further expand its healthcare business. For this acquisition, all the shares of FUJIFILM Healthcare Corporation, which was established by Hitachi, Ltd. to succeed the Business, were acquired with cash to make this company a wholly owned subsidiary. The Business was succeeded to FUJIFILM Corporation on March 31, 2021.

The purchase price amounted to ¥185,349 million ($1,669,811 thousand). As the allocation of purchase price was not completed as of the filing date of the annual securities report, the acquisition was accounted for provisionally. Assets acquired and liabilities assumed are summarized as follows:

	FUJIFILM Healthcare Corporation
	(Millions of yen)	(Thousands of U.S. dollars) (Note 3)
Current assets	¥ 91,444	$ 823,820
Property, plant and equipment	18,763	169,036
Goodwill and other intangible assets	112,466	1,013,207
Investments and other assets	14,615	131,667
Current liabilities	41,634	375,081
Non-current liabilities	10,194	91,838
Noncontrolling interests	111	1,000
Net assets acquired	¥185,349	$1,669,811

Technology-based intangible assets and other intangible assets were recognized at ¥231 million ($2,081 thousand) and ¥5,145 million ($46,351 thousand), and will be amortized over 4 to 8 years and 2 to 19 years, respectively. The goodwill allocated to the Healthcare & Material Solutions segment is attributable primarily to expected future growth and synergies with existing businesses, of which ¥66,688 million ($600,793 thousand) are deductible for tax purposes.

The acquisition related costs are recorded in "Selling, general and administrative" in the consolidated statements of income. The amounts are not significant.

Assuming that the Business was included in the Company's consolidated financial statements as of April 1, 2019, pro forma revenue (unaudited) for the years ended March 31, 2021 and 2020 would be ¥2,321,708 million ($20,916,288 thousand) and ¥2,450,820 million, respectively. Pro forma information regarding net income attributable to FUJIFILM Holdings is omitted because the effect on the Company's consolidated financial statements would be insignificant.

Sale of shares of Japan Tissue Engineering Co., Ltd.

FUJIFILM Corporation, a wholly owned subsidiary of the Company, entered into an agreement with TEIJIN LIMITED ("TEIJIN") on January 29, 2021, under which FUJIFILM Corporation agreed to tender its entire holding of common shares in Japan Tissue Engineering Co., Ltd. ("J-TEC"), a consolidated subsidiary of the Company, for a tender offer (the "Tender Offer") carried out by TEIJIN for the common shares of J-TEC. On completion of the Tender Offer, J-TEC was excluded from the scope of consolidation of the Group on March 9, 2021.

Due to a loss of control of J-TEC, a gain on sale of shares of a subsidiary of ¥29,334 million ($264,270 thousand) was recognized in "Selling, general and administrative" in the consolidated statements of income.

24. Structural Reform Expenses

As the market environment surrounding Fuji Xerox Co., Ltd., the Company's subsidiary, has grown increasingly severe, the Group has implemented a structural reform in order to win out through the competition going forward and realize further business growth.

In the Document Solutions business, a special outside career change support program was implemented to pay allowances for supporting the employees who applied for outside career change, arising from the change in the working environment due to the organization restructuring. As a result, early retirement incentive allowance expenses are recorded. Also, expenses from the accelerated depreciation of plant, property and equipment, etc., for existing locations are recorded.

The structural reform expenses incurred in the year ended March 31, 2021 amounting to ¥6,027 million ($54,297 thousand) are recorded in "Cost of sales", "Selling, general and administrative" and "Research and development" in the consolidated statements of income.

The structural reform expenses incurred in the years ended March 31, 2018, 2019 and 2020 consist of personnel related expenses of ¥46,241 million and non-current assets related expenses of ¥1,841 million. They are recorded in "Cost of sales", "Selling, general and administrative" and "Research and development" in the consolidated statements of income.

Expenses and liabilities for the years ended March 31, 2021 and 2020 are as follows:

	2021 and 2020
	Personnel related expenses	Non-current assets related expenses	Total
	(Millions of yen)
Liabilities as of April 1, 2019	¥ 3,890	¥ -	¥ 3,890
Total expenses	3,575	163	3,738
Non-cash expenses	-	(163)	(163)
Payments	(7,449)	-	(7,449)
Liabilities as of March 31, 2020	¥ 16	¥ -	¥ 16
Total expenses	5,781	246	6,027
Non-cash expenses	-	(246)	(246)
Payments	(3,559)	-	(3,559)
Foreign currency translation adjustments	10	-	10
Liabilities as of March 31, 2021	¥ 2,248	¥ -	¥ 2,248

	2021
	Personnel related expenses	Non-current assets related expenses	Total
	(Thousands of U.S. dollars) (Note 3)
Liabilities as of March 31, 2020	$ 144	$ -	$ 144
Total expenses	52,081	2,216	54,297
Non-cash expenses	-	(2,216)	(2,216)
Payments	(32,063)	-	(32,063)
Foreign currency translation adjustments	90	-	90
Liabilities as of March 31, 2021	$ 20,252	$ -	$ 20,252

25. Segment Information

Operating Segments

The Company has three operating segments. The Company's operating segments reflect how management reviews operating results and makes decisions about allocation of resources, and are determined based upon similarity in manufacturing technology, manufacturing processes, distribution methods and markets. "Imaging Solutions" develops, manufactures, sells and provides services of color films, digital cameras, color paper, services and equipment for photofinishing, instant photo systems, optical devices, and other related products, primarily for individual consumers. "Healthcare & Material Solutions" develops, manufactures, sells and provides services of materials and equipment for medical systems, cosmetics and supplement products, pharmaceuticals, entrusted biopharmaceutical manufacturing and development services, regenerative medicines, chemical products, materials and equipment for graphic systems, inject materials and equipment, display materials, recording media, electronic materials, and other related products, primarily for commercial enterprises. "Document Solutions" develops, manufactures, sells and provides services of digital multifunction devices, publishing systems, document management software and related solution services, and other related products, primarily for commercial enterprises.

a. Revenue

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Imaging Solutions:
External customers	¥ 285,236	¥ 332,603	$ 2,569,693
Intersegment	1,878	2,202	16,919
Total	287,114	334,805	2,586,612
Healthcare & Material Solutions:
External customers	1,052,593	1,024,209	9,482,820
Intersegment	1,428	1,891	12,865
Total	1,054,021	1,026,100	9,495,685
Document Solutions:
External customers	854,690	958,329	7,699,910
Intersegment	6,405	11,679	57,703
Total	861,095	970,008	7,757,613
Eliminations	(9,711)	(15,772)	(87,487)
Consolidated total	¥2,192,519	¥2,315,141	$19,752,423

b. Segment profit or loss

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Operating income:
Imaging Solutions	¥ 15,591	¥ 25,076	$ 140,459
Healthcare & Material Solutions	107,507	92,402	968,532
Document Solutions	73,284	105,045	660,216
Total	196,382	222,523	1,769,207
Corporate expenses and eliminations	(30,909)	(35,953)	(278,459)
Consolidated operating income	165,473	186,570	1,490,748
Other income (expenses)	70,397	(13,499)	634,207
Consolidated income before income taxes	¥235,870	¥173,071	$2,124,955

c. Total assets

	March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Total assets:
Imaging Solutions	¥ 278,232	¥ 294,243	$ 2,506,595
Healthcare & Material Solutions	2,123,041	1,775,913	19,126,495
Document Solutions	990,487	991,861	8,923,306
Total	3,391,760	3,062,017	30,556,396
Eliminations	(3,530)	(4,090)	(31,802)
Corporate assets	160,973	263,765	1,450,208
Consolidated total	¥3,549,203	¥3,321,692	$31,974,802

d. Other significant items

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Depreciation and amortization:
Imaging Solutions	¥ 14,946	¥ 14,592	$ 134,649
Healthcare & Material Solutions	66,183	63,881	596,243
Document Solutions	39,578	41,750	356,558
Total	120,707	120,223	1,087,450
Corporate expenses	2,716	2,430	24,469
Consolidated total	¥123,423	¥122,653	$1,111,919
Capital expenditures:
Imaging Solutions	¥ 7,213	¥12,496	$ 64,982
Healthcare & Material Solutions	74,109	58,223	667,649
Document Solutions	18,330	13,406	165,135
Total	99,652	84,125	897,766
Corporate expenses	1,231	1,567	11,090
Consolidated total	¥100,883	¥85,692	$ 908,856

Transfers between operating segments are generally based on market price. Corporate expenses in "b. Segment profit or loss", are those expenses related to the Corporate Division of the Company. Corporate assets in "c. Total assets", consist primarily of cash and cash equivalents as well as investment securities held for general corporate-wide purposes. Corporate expenses, in the "d. Other significant items", relate to facilities and equipment held by the Company for company-wide purposes. Capital expenditures in the above table represent the purchase amount of property, plant and equipment (on goods-receipt basis) by each segment.

In formulating a medium-term management plan VISION 2023 starting from the year ending March 31, 2022, the Company decided to change its operating segments as follows:

―	"Healthcare & Material Solutions" is divided into "Healthcare" and "Materials" in order to clearly present the operating results of the healthcare business, which will be a medium to long-term growth driver of the Company.
―	"Document Solutions" is renamed "Business Innovation" in order to indicate that this segment will expand into a wide range of business fields beyond office printing and provide solution services that spur business innovation.
―	Production services previously included in "Document Solutions" and graphic systems previously included in "Healthcare & Material Solutions" are merged into graphic communications in "Materials" in order to accelerate the creation of synergies inside the Group and provide even more value to the printing industry on a global scale.

The information on amounts of sales, segment profit or loss, total assets, and other major items by the operating segment for the current fiscal year in the case of application of the new segment categories are currently in the process of being calculated.

Geographic Segments Information

a. Revenue

Revenue from external customers, which are attributed to the location of the customers, for the years ended March 31, 2021 and 2020 are as follows:

	Year ended March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Japan	¥ 927,910	¥1,004,076	$ 8,359,550
The Americas	416,341	424,257	3,750,820
Europe	267,902	296,623	2,413,531
Asia and others	580,366	590,185	5,228,522
Consolidated total	¥2,192,519	¥2,315,141	$19,752,423

Revenue of The Americas is primarily related to operations in the United States.

b. Long-lived assets

Long-lived assets as of March 31, 2021 and 2020 are as follows:

	March 31
	2021	2020	2021
	(Millions of yen)		(Thousands of U.S. dollars) (Note 3)
Japan	¥367,660	¥375,783	$3,312,252
The Americas	90,885	73,922	818,784
Europe	122,356	103,964	1,102,306
Asia and others	54,350	46,878	489,640
Consolidated total	¥635,251	¥600,547	$5,722,982

Long-lived assets of The Americas are primarily related to operations in the United States.

Major Customers and Other Information

No single customer of the Company accounted for more than 10% of consolidated revenue for each of the years ended March 31, 2021 and 2020.

The Company through its Document Solutions segment acquired all shares of Fuji Xerox Co., Ltd. owned by Xerox Corporation and its subsidiary with the purchase price of ¥239,633 million and made it a wholly owned subsidiary as of November 8, 2019. Consequently, this company is no longer a noncontrolling interest as of such date.

For transactions performed during the period in which this company was a noncontrolling interest in the year ended March 31, 2020, the sales amount of copying machines for offices, other equipment and consumable supplies was ¥81,467 million and the purchase amount of inventories was ¥2,056 million. In addition, certain expenses which primarily relate to royalty and research expenses, amounting to ¥7,182 million were recorded for the year ended March 31, 2020 in conjunction with a license agreement and other arrangements.

26. Subsequent Event

The Company resolved, at its meeting of the Board of Directors held on June 29, 2021, to conduct large-scale capital investment at the Europe and North American bases of FUJIFILM Diosynth Biotechnologies, a core company of the biopharmaceutical CDMO, in order to further expand development and manufacturing contracts for biopharmaceuticals. The purpose of this investment is to vastly expand the production capability for drug substances for various biopharmaceuticals, including vaccines for COVID-19, which is continuing to spread, and genetic therapeutics and monoclonal antibodies, for which demand is expanding, and the Company plans to allocate a total amount of approximately ¥90 billion for this investment.

2e:T23b2b,

FUJIFILM Europe GmbH

Ratingen

Jahresabschluss zum Geschäftsjahr vom 01.04.2023 bis zum 31.03.2024

Registergericht: AG Düsseldorf, HRB 10639

Bilanz zum 31. März 2024

Aktiva		31.03.2024	31.03.2024	31.03.2023
		€	€	€
A.	Anlagevermögen
I.	Immaterielle Vermögensgegenstände
1.	Entgeltlich erworbene Konzessionen, gewerbliche
	Schutzrechte und ähnliche Rechte und Werte	58.524,20		167.346,79
2.	Geschäfts- oder Firmenwert	485.848,00		550.209,00
			544.372,20	717.555,79
II.	Sachanlagen
1.	Grundstücke und Bauten	3.788.255,08		4.111.930,98
2.	Technische Anlagen und Maschinen	2.702.324,60		4.651.018,93
3.	Andere Anlagen, Betriebs- und Geschäftsausstattung	4.210.552,02		3.443.313,27
4.	Geleistete Anzahlungen und Anlagen im Bau	123.749,46		749.597,85
			10.824.881,16	12.955.861,03
III.	Finanzanlagen
1.	Anteile an verbundenen Unternehmen	22.737.075,84		5.472.210,27
2.	Wertpapiere des Anlagevermögens	0,00		1.500,00
			22.737.075,84	5.473.710,27
			34.106.329,20	19.147.127,09
B.	Umlaufvermögen
I.	Vorräte
	Unfertige Erzeugnisse		1.053.953,83	990.718,69
II.	Forderungen und sonstige Vermögensgegenstände
1.	Forderungen aus Lieferungen und Leistungen	31.137.112,48		38.862.128,07
	davon mit einer Restlaufzeit von mehr als einem Jahr
	T€ 987 (Vorjahr: T€ 2.078)
2.	Forderungen gegen verbundene Unternehmen	21.315.464,00		19.959.084,53
	davon mit einer Restlaufzeit von mehr als einem Jahr
	T€ 120 (Vorjahr: T€ 119)
3.	Sonstige Vermögensgegenstände	2.230.157,78		2.458.390,96
	davon mit einer Restlaufzeit von mehr als einem Jahr
	T€ 759 (Vorjahr: T€ 881)
			54.682.734,26	61.279.603,56
III.	Kassenbestand, Guthaben bei Kreditinstituten		101.772.387,89	126.641.054,34
C.	Rechnungsabgrenzungsposten		167.626,18	564.941,29
			191.783.031,36	208.623.444,97

Passiva		31.03.2024	31.03.2024	31.03.2023
		€	€	€
A.	Eigenkapital
I.	Gezeichnetes Kapital	52.150.000,00		52.150.000,00
II.	Kapitalrücklage	42.102.661,21		50.213.284,95
III.	Bilanzgewinn	16.480.972,43		8.248.488,21
			110.733.633,64	110.611.773,16
B.	Rückstellungen
1.	Rückstellungen für Pensionen und ähnliche
	Verpflichtungen	2.196.953,44		2.163.214,44
2.	Steuerrückstellungen	15.995.604,90		22.066.514,29
3.	Sonstige Rückstellungen	12.065.884,34		15.074.099,11
			30.258.442,68	39.303.827,84
C.	Verbindlichkeiten
1.	Erhaltene Anzahlungen auf Bestellungen	79.762,21		67.905,35
	sämtliche mit einer Restlaufzeit bis zu einem Jahr
2.	Verbindlichkeiten aus Lieferungen und Leistungen	3.136.253,88		3.607.681,66
	sämtliche mit einer Restlaufzeit bis zu einem Jahr
3.	Verbindlichkeiten gegenüber verbundenen
	Unternehmen	41.048.433,15		45.857.210,26
	sämtliche mit einer Restlaufzeit bis zu einem Jahr
4.	Sonstige Verbindlichkeiten	4.999.759,87		5.246.072,16
	davon mit einer Restlaufzeit von mehr als einem Jahr
	T€ 74 (Vorjahr: T€ 67)
	davon mit einer Restlaufzeit von bis zu einem Jahr
	T€ 4.926 (Vorjahr: T€ 5.179)
	davon aus Steuern T€ 3.014 (Vorjahr: T€ 2.747)
	davon im Rahmen der sozialen Sicherheit
	T€ 114 (Vorjahr: T€ 193)
			49.264.209,11	54.778.869,43
D.	Rechnungsabgrenzungsposten		1.526.745,93	3.928.974,54
			191.783.031,36	208.623.444,97

Gewinn- und Verlustrechnung für das Geschäftsjahr 2023/2024

		2023/2024	2023/2024	2022/2023
		€	€	€
1.	Umsatzerlöse		258.457.478,81	276.540.603,19
2.	Erhöhung (i. Vj. Verminderung) des Bestands an unfertigen Leistungen		63.235,14	279.077,35
3.	Sonstige betriebliche Erträge		13.650.372,32	20.029.265,18
	davon Erträge aus der Währungsumrechnung T€ 1.181 (Vj. T€ 276)
			272.171.086,27	296.290.791,02
4.	Materialaufwand
	a) Aufwendungen für Hilfs- und Betriebsstoffe und für bezogene Waren	145.215.091,80		163.831.084,70
	b) Aufwendungen für bezogene Leistungen	31.166.569,67		57.088.707,22
			176.381.661,47	220.919.791,92
5.	Personalaufwand
	a) Löhne und Gehälter	43.473.937,87		46.475.404,44
	b) Soziale Abgaben und Aufwendungen für Altersversorgung	8.594.479,36		8.480.611,81
	davon für Altersversorgung T€ 802 (Vorjahr: T€ 695)
			52.068.417,23	54.956.016,25
6.	Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens
	und Sachanlagen		2.516.746,13	2.414.242,20
7.	Sonstige betriebliche Aufwendungen		33.650.678,66	8.825.921,12
	davon Aufwendungen aus der Währungsumrechnung T€ 830 (Vj. T€ 0)
			7.553.582,78	9.174.819,53
8.	Sonstige Zinsen und ähnliche Erträge		4.004.444,37	1.247.266,64
	davon aus verbundenen Unternehmen T€ 1 (Vorjahr: T€ 1)
9.	Zinsen und ähnliche Aufwendungen		203.301,60	2.666.055,28
	davon an verbundene Unternehmen T€ 91 (Vorjahr: T€ 188)
	davon Aufwendungen aus der Aufzinsung T€ 45 (Vorjahr: T€ 10)
10.	Steuern (i. Vj. Erstattete Steuer) vom Einkommen und vom Ertrag		3.001.105,17	-599.607,07
11.	Ergebnis nach Steuern		8.353.620,38	8.355.637,96
12.	Sonstige Steuern		121.136,16	107.149,75
13.	Jahresüberschuss		8.232.484,22	8.248.488,21
14.	Gewinnvortrag		8.248.488,21	11.365.084,92
15.	Ausschüttung an Gesellschafter		0,00	11.365.084,92
16.	Bilanzgewinn		16.480.972,43	8.248.488,21

Anhang für das Geschäftsjahr 2023/2024

Allgemeine Hinweise

Der vorliegende Jahresabschluss wurde gemäß §§ 242 ff. und §§ 264 ff. HGB sowie nach den einschlägigen Vorschriften des GmbHG aufgestellt. Es gelten die Vorschriften für große Kapitalgesellschaften i. S. d. § 267 Abs. 3 HGB.

Die Gewinn- und Verlustrechnung ist unverändert nach dem Gesamtkostenverfahren aufgestellt.

Um die Klarheit der Darstellung zu verbessern, wurden die Angaben zur Mitzugehörigkeit zu anderen Posten der Bilanz, sofern diese vorlagen, in diesem Anhang gemacht.

Aus diesen Gründen sind die Vorjahreszahlen nur bedingt vergleichbar.

Bilanzierungs- und Bewertungsmethoden

Für die Aufstellung des Jahresabschlusses waren im Wesentlichen die nachfolgenden Bilanzierungs- und Bewertungsmethoden maßgebend.

Erworbene immaterielle Vermögensgegenstände sind zu Anschaffungskosten bilanziert und werden, sofern sie der Abnutzung unterliegen, entsprechend ihrer Nutzungsdauer um planmäßige Abschreibungen vermindert. Es wird eine Nutzungsdauer von 3-5 Jahren angesetzt.

Die spanische Niederlassung hat aus dem Erwerb des Geschäftsfeldes "Biocare" einen Firmenwert, der über die voraussichtliche Nutzungsdauer von 10 Jahre abgeschrieben wird.

Das Sachanlagevermögen ist zu Anschaffungskosten angesetzt und wird, soweit abnutzbar, um planmäßige Abschreibungen vermindert. Die Vermögensgegenstände des Sachanlagevermögens werden nach Maßgabe der voraussichtlichen Nutzungsdauer linear abgeschrieben.

Die degressive Methode wird seit der Veräußerung des Gebäudes zu Beginn des Geschäftsjahres nicht mehr angewandt.

Geringwertige Anlagegüter bis zu einem Netto-Einzelwert von € 800 sind im Jahr des Zugangs voll abgeschrieben bzw. als Aufwand erfasst worden; ihr sofortiger Abgang wird unterstellt.

Die Abschreibungen auf Zugänge des Sachanlagevermögens werden zeitanteilig vorgenommen.

Bei den Finanzanlagen werden die Anteile an verbundenen Unternehmen zu Anschaffungskosten bzw. niedrigeren beizulegenden Zeitwerten und die Wertpapiere des Anlagevermögens grundsätzlich zum Nennwert angesetzt.

Die unfertigen Erzeugnisse sind unter Beachtung des Niederstwertprinzips zu den Herstellungskosten bewertet, die dem Fertigstellungsgrad entsprechen.

Forderungen, sonstige Vermögensgegenstände und Kassenbestand sowie Guthaben bei Kreditinstituten sind grundsätzlich mit ihrem Nennwert angesetzt. Unverzinsliche, langfristige Forderungen werden mit ihrem Barwert angesetzt. Erkennbare Einzelrisiken werden durch Einzelwertberichtigungen berücksichtigt. Das allgemeine Kreditrisiko ist durch pauschale Abschläge berücksichtigt.

Die Rechnungsabgrenzungsposten betreffen vor dem Bilanzstichtag geleistete Zahlungen, die für Aufwand für eine bestimmte Zeit nach dem Bilanzstichtag geleistet wurden.

Die Pensionsrückstellungen wurden auf Basis versicherungsmathematischer Gutachten zum 31.03.2024 bilanziert. Die Rückstellung ist nach dem Anwartschaftsbarwertverfahren (Projected-Unit-Credit-Methode; PUC) mit einem 10-jährigen Durchschnittszinssatz von 1,83% (i. Vj. mit einem 10-jährigen Durchschnittszinssatz von 1,79%) bewertet worden. Bei der Ermittlung des Zinssatzes wurde eine durchschnittliche Restlaufzeit von 15 Jahren gemäß § 253 Abs. 2 Satz 2 HGB angewendet. Weiterhin wurden eine durchschnittliche Gehaltssteigerung von 2,00%, eine Rentensteigerung von 2,00% sowie eine Standard-Fluktuationsrate zur Berechnung der zukünftigen Verpflichtungen angenommen. Als Grundlage für die Ermittlung der Verpflichtung zum Bilanzstichtag dienen die "Richttafeln 2018 G" von Prof. Dr. Klaus Heubeck. Auf Basis des 7-Jahres-Durchschnittszinssatzes von 1,80% ergäbe sich eine Pensionsverpflichtung von T€ 2.399.

Die Differenz zu den Pensionsverpflichtungen auf Basis des 10-Jahres-Durchschnittszinssatzes beträgt hierbei T€ 16. Dieser Unterschiedsbetrag ist ausschüttungsgesperrt (§ 253 Abs. 6 Satz 2 HGB).

Mit den Pensionsrückstellungen in Höhe von T€ 2.405 wurde ein Deckungsvermögen in Höhe von T€ 208 verrechnet. Der beizulegende Zeitwert entspricht hierbei den Anschaffungskosten.

Die Steuerrückstellungen und die sonstigen Rückstellungen berücksichtigen alle ungewissen Verbindlichkeiten und drohende Verluste aus schwebenden Geschäften. Sie sind in der Höhe des nach vernünftiger kaufmännischer Beurteilung notwendigen Erfüllungsbetrages (d. h. einschließlich zukünftiger Kosten- und Preissteigerungen) angesetzt. Rückstellungen mit einer Restlaufzeit von mehr als einem Jahr werden abgezinst.

Die Verbindlichkeiten sind mit ihrem Erfüllungsbetrag angesetzt.

Die passiven Rechnungsabgrenzungsposten beinhalten Einnahmen vor dem Abschlussstichtag, die einen Ertrag für eine bestimmte Zeit nach dem Bilanzstichtag darstellen.

Für die Ermittlung latenter Steuern, die sich aufgrund von Differenzen zwischen den handelsrechtlichen und steuerlichen Wertansätzen von Vermögensgegenständen, Schulden und Rechnungsabgrenzungsposten ergeben und sich im Zeitablauf umkehren oder sich aufgrund steuerlicher Verlustvorträge ergeben, werden die Beträge der sich ergebenden Steuerbe- und -entlastung mit den unternehmensindividuellen Steuersätzen im Zeitpunkt des Abbaus der Differenzen bewertet und nicht abgezinst.

Die in Fremdwährung valutierenden Vermögensgegenstände und Schuldposten sind grundsätzlich mit dem Devisenkassamittelkurs zum Abschlussstichtag umgerechnet. Bei einer Restlaufzeit von mehr als einem Jahr wurden dabei das Realisationsprinzip (§ 252 Abs. 1 Nr. 4 Halbsatz 2 HGB) und das Anschaffungskostenprinzip (§ 253 Abs. 1 HGB) beachtet.

Die Umrechnung der in Fremdwährung erstellten Bilanzen der tschechischen Betriebsstätte in Euro erfolgte mit dem Devisenkassamittelkurs am Bilanzstichtag. Das Geschäft und die wesentlichen Aktiva und Passiva der Betriebsstätte wurden am 1. April 2022 an die FUJIFILM Europe B.V. ("FEN") veräußert. In der verbleibenden Betriebsstätte werden lediglich einige verbleibenden Forderungen und Verbindlichkeiten abgewickelt, sowie das noch im Besitz befindliche Bürogebäude zum Verkauf angeboten.

Die Posten der Gewinn- und Verlustrechnung wurden mit dem jeweiligen Durchschnittskurs des Monats bewertet. Hierbei ergaben sich keine wesentlichen Abweichungen zu der Bewertung mit dem Devisenkassamittelkurs am Transaktionstag.

Die Umrechnungsdifferenzen sind erfolgswirksam erfasst worden.

Erläuterungen zur Bilanz

Anlagevermögen

Die Aufgliederung des Anlagevermögens und die Entwicklung der einzelnen Posten des Anlagevermögens sind unter Angabe der Abschreibungen des Geschäftsjahres im Anlagenspiegel in Anlage 1 zu diesem Anhang dargestellt.

Wie im Vorjahr wurde im Geschäftsjahr bei den Beteiligungen kein niedrigerer beizulegender Wert aufgrund voraussichtlich dauernder Wertminderung festgestellt. Ebenso wurden keine Gründe für Zuschreibungen bei den Beteiligungen identifiziert. Die Aktiva und Passiva der spanischen Niederlassung, die den medizinischen Bereich betreffen, wurden als Sacheinlage in die neue spanische Gesellschaft ausgegliedert. Als Gegenleistung erhielt die FEG Anteile an der spanischen Gesellschaft ((FUJIFILM Healthcare España, S.L.)). Entsprechend haben sich die Finanzanlage der FEG um € 17,3 Mio. erhöht. Die Abgänge sind in einer separate Spalte Abspaltung im Anlagenspiegel dargestellt.

Forderungen und sonstige Vermögensgegenstände

Die Forderungen aus Lieferungen und Leistungen sind zum Teil durch Warenkreditversicherungen, ansonsten durch üblichen Eigentumsvorbehalt abgesichert. Die Forderungen gegen verbundene Unternehmen von insgesamt T€ 21.315 (Vorjahr: T€ 19.959) beinhalten Forderungen aus Lieferungen und Leistungen (T€ 21.196, Vorjahr: T€ 19.840) sowie Forderungen aus Gewinnansprüchen (T€ 120, Vorjahr: T€ 119). Es bestehen Forderungen gegen die Gesellschafterin FUJIFILM Europe B.V., Tilburg/Niederlande, in Höhe von T€ 14.302 (Vorjahr: T€ 13.754).

Die kurzfristigen sonstigen Vermögensgegenstände betreffen Ertragssteuererstattungsansprüche (T€ 188, Vorjahr: T€ 127), Ertragsabgrenzungen aus Serviceverträgen (T€ 305, Vorjahr: T€ 506) sowie debitorische Kreditoren (T€ 424, Vorjahr: T€ 311).

Die langfristigen sonstigen Vermögensgegenstände (T€ 763, Vorjahr: T€ 881) beinhalten im Wesentlichen die Rückdeckungsversicherung für die Pensionsansprüche (T€ 659, Vorjahr: T€ 651).

Gezeichnetes Kapital

Das voll eingezahlte Stammkapital beträgt zum 31.03.2024 unverändert € 52,2 Mio.

Kapitalrücklage

Aufgrund der oben genannten Ausgliederung des medizinischen Vertriebs in eine neue, eigenständige Gesellschaft (FUJIFILM Healthcare Europe GmbH) hat sich die Kapitalrücklage um € 8,1 Mio. reduziert. Die Abspaltung erfolgte rückwirkend zum 1. April 2023 zu Buchwerten und ohne Gewährung einer Gegenleistung.

Im Geschäftsjahr beträgt die Kapitalrücklage entsprechend € 42,1 Mio.

Bilanzgewinn

Die FUJIFILM Europe GmbH ("FEG") hat im Geschäftsjahr 2023/2024 keine Ausschüttung an die Muttergesellschaft vorgenommen.

Ausschüttungssperre

Die Ausschüttungssperre gemäß § 253 Abs. 6 Satz 2 HGB für den Bewertungsunterschied der Pensionsverpflichtungen beläuft sich auf T€ 16 (Vorjahr: T€ 97).

Rückstellungen

Die sonstigen Rückstellungen sind vor allem für Umsatzboni und -rabatte, Mitarbeiter- und Managementboni, Garantieleistungen sowie bereits erhaltene, aber noch nicht berechnete Lieferungen und Leistungen gebildet worden.

Verbindlichkeiten

Sämtliche Verbindlichkeiten haben, bis auf eine Ausnahme in den sonstigen Verbindlichkeiten (T€ 74, Vorjahr: T€ 67), eine Restlaufzeit von unter einem Jahr. Die Verbindlichkeiten sind nicht besichert.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren aus Lieferungen und Leistungen (T€ 39.048, Vorjahr: T€ 41.797) sowie aus gewährten Darlehen der Gesellschafterin (T€ 2.000, Vorjahr: T€ 4.060). Neben dem Darlehen bestehen Verbindlichkeiten aus Lieferungen und Leistungen gegenüber der Gesellschafterin in Höhe von T€ 28.507 (Vorjahr: T€ 36.410).

Weiterhin bestehen sonstige Verbindlichkeiten für Umsatzsteuer, Lohn- und Kirchensteuer und Sozialversicherungsverbindlichkeiten sowie kreditorische Debitoren.

Latente Steuern

Passive latente Steuern wurden mit aktiven latenten Steuern verrechnet. Auf die Bilanzierung des Überhangs aktiver latenter Steuern wurde in Übereinstimmung mit dem Wahlrecht des § 274 Abs. 1 Satz 2 HGB verzichtet. Der Ermittlung der latenten Steuern wurde ein Steuersatz von 15,8% (Vorjahr: 15,8%) für die Körperschaftsteuer einschließlich Solidaritätszuschlag sowie 15,4% (Vorjahr: 15,4%) für die Gewerbesteuer zugrunde gelegt. Differenzen zwischen Handels- und Steuerbilanz resultieren im Wesentlichen aus Bewertungsunterschieden im Anlagevermögen und bei den Rückstellungen.

Erläuterungen zur Gewinn- und Verlustrechnung

Die Umsatzerlöse der aktiven Niederlassungen in Deutschland, Spanien und Österreich setzen sich wie folgt zusammen:

	2023/2024		2022/2023
aus	Mio. EUR	%	Mio. EUR	%
Handel und Dienstleistungen
- Imaging	29	11,2	27	9,7
- Electronic Imaging	8	3,1	8	2,9
- Graphische Systeme	70	27,1	76	27,4
- Medizinische Systeme	98	38,0	108	39,0
- Sonstiges	4	1,6	8	2,9
Leistungsverrechnung
im Konzernverbund	49	19,0	50	18,1
	258	100,0	277	100,0
Regionen
- Deutschland	134	51,9	140	50,5
- Europäisches Ausland	122	47,3	134	48,4
- Sonstige	2	0,8	3	1,1
	258	100,0	277	100,0

Materialaufwand

Im Geschäftsjahr ist die Ermittlung des Materialaufwandes, der im Zusammenhang mit den konzerninternen Leistungsverrechnungen steht, umgestellt worden. Um eine genauere Darstellung der Ertragslage zu ermöglichen, sind die Aufwendungen erstmals nach einer anderen Methode errechnet worden. Im Vorjahr betrug dieser Aufwand Mio. € 48, im Geschäftsjahr Mio. € 23. Entsprechend der Vorschriften (BilRUG) wurde dieser Aufwand von den sonstigen betrieblichen Aufwendungen in die Aufwendungen für bezogene Leistungen umgegliedert. Das Betriebs- sowie das Jahresergebnis bleiben von dieser Umstellung unberührt, da es sich lediglich um eine Umgliederung innerhalb der Gewinn- und Verlustrechnung handelt.

Sonstige betriebliche Erträge

Die periodenfremden Erträge, die in den sonstigen betrieblichen Erträgen enthalten sind, enthalten Erträge aus der Auflösung von sonstigen Rückstellungen (T€ 83; Vorjahr: T€ 1.168).

Im Vorjahr enthielten die sonstigen betrieblichen Erträge zudem noch Erträge aus der Veräußerung der tschechischen und slowakischen Niederlassung sowie Erträge aus der Veräußerung eines Grundstücks in Düsseldorf in Höhe von insgesamt T€ 5.833).

Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen beinhalten im Wesentlichen EDV-Kosten, Rechts- und Beratungskosten, Reisekosten, Pkw-Leasing, Kfz-Kosten, Werbekosten, Personalkosten sowie Gebäudemiete.

Im Berichtsjahr sind keine periodenfremden Aufwendungen zu verzeichnen (Vorjahr: T€ 13).

Abschreibungen auf Finanzanlagen

Im Geschäftsjahr wurde bei den Beteiligungen kein niedrigerer beizulegender Wert aufgrund voraussichtlich dauernder Wertminderung festgestellt. Ebenso wurden keine Gründe für Zuschreibungen identifiziert.

Sonstige Zinsen und ähnliche Erträge

Aufgrund der gestiegenen Guthabenzinsen der Cash-Pool Bankguthaben konnte die Gesellschaft einen Zinsertrag in Höhe von € 4,0 Mio. (Vorjahr: € 1,0 Mio.) verzeichnen.

Zinsen und ähnliche Aufwendungen

Die Zinsen und ähnlichen Aufwendungen enthalten T€ 66 (Vorjahr: T€ 2.465) für Steuernachforderungen. Es handelt sich um Risiken resultierend aus der abgeschlossenen Betriebsprüfung für den Veranlagungszeitraum 2010 bis 2013 sowie die Risiken aus den noch nicht abgeschlossenen Betriebsprüfungen der folgenden Veranlagungszeiträume 2014 bis 2017. Für die wesentlichen Prüfungsfeststellungen des Veranlagungszeitraums 2010 bis 2013 wird ein Verständigungsverfahren angestrebt.

Steuern von Einkommen und vom Ertrag

Im Geschäftsjahr fielen keine periodenfremden Erträge aus Ertragsteuern an.

Im Vorjahr betrugen sie T€ 3.651 und betrafen im Wesentlichen Anpassungen der Steuerrückstellung für die Veranlagungszeiträume 2010 bis 2017. Sie basierten auf den im Betriebsprüfungsbericht für den Veranlagungszeitraum 2010 bis 2013 vorgenommenen Anpassungen.

Globale Mindestbesteuerung

Das Unternehmen ist in Deutschland ansässig, das die neue Gesetzgebung zur Globalen Mindestbesteuerung mit Wirkung für ab nach dem 30. Dezember 2023 beginnende Wirtschaftsjahre umgesetzt hat. Die Gesellschaft ist dabei, die notwendigen internen Maßnahmen einmalig für das Jahr 2024/2025 zu ergreifen, um die neue Gesetzgebung vollständig zu erfüllen. Da das neue Steuergesetz in Deutschland erst ab dem 1. Januar 2024 in Kraft getreten ist, ergeben sich keine Auswirkungen auf den tatsächlichen Steueraufwand des Geschäftsjahres 2023/2024.

Sonstige Angaben

Sonstige finanzielle Verpflichtungen/außerbilanzielle Geschäfte

Die sonstigen finanziellen Verpflichtungen der kommenden fünf Geschäftsjahre in Höhe von T€ 24.024 (spätere Verpflichtung T€ 4.451) resultieren aus Miet- und Leasingverträgen für Büro- und Lagergebäude, Kraftfahrzeuge sowie Dienstleistungsverträgen für Kreditversicherung und Gebäudemanagement. Von dem Gesamtbetrag betreffen T€ 5.314 das Geschäftsjahr 2024/2025. Das Leasing ermöglicht der Gesellschaft, die Kapitalbindung zu reduzieren. Wesentliche Risiken hieraus sind nicht erkennbar. Darin enthalten sind finanzielle Mietverpflichtungen gegenüber zwei verbundenen Unternehmen. Die Verpflichtung der kommenden fünf Geschäftsjahre daraus beträgt T€ 2.685.

Gegenüber Leasinggesellschaften, über die unsere Kunden Maschinen und Equipment leasen können, besteht eine sogenannte First Loss Vereinbarung, der zufolge die ersten 9,99% des gesamten Forderungsausfalls aus zwei Verträgen zu unseren Lasten gehen. Diese Garantie beträgt im Geschäftsjahr T€ 55,9. Des Weiteren besteht eine Ausfallbürgschaft in Höhe von T€ 18,4.

Geschäftsführung

Geschäftsführer im Geschäftsjahr waren

• Herr Yoshiki Kimura, Düsseldorf, Manager, (ab 04.05.2023)

• Herr Toshihisa Iida, Düsseldorf, Manager, (bis 04.05.2023)

• Herr Peter Struik, Leidschendam/Niederlande, Excecutive Director, (ohne Bezüge)

Sämtliche Geschäftsführer sind berechtigt, die Gesellschaft einzeln zu vertreten.

Gesamtbezüge der Geschäftsführung

In Anwendung von § 286 Abs. 4 HGB wird auf die Angabe der Gesamtbezüge der Geschäftsführung i. S. v. § 285 Nr. 9 HGB verzichtet, da nur ein Geschäftsführer Bezüge von der Gesellschaft bezogen hat.

Mitarbeiter

Durchschnittliche Zahl der während des Geschäftsjahres 2023/2024 beschäftigten Mitarbeiter:

	Anzahl
Angestellte
- Deutschland	432
- ausländische Niederlassungen	135
	567

Prüfungs- und Beratungsgebühren

Das für das Geschäftsjahr 2023/2024 berechnete Gesamthonorar der Abschlussprüfer (einschließlich der aktiven Niederlassungen) beträgt für Abschlussprüfungsleistungen T€ 481. Steuer- und sonstige Beratungen wurden von der Prüfungsgesellschaft nicht geleistet.

Aufstellung des Anteilbesitzes

	Beteiligung in %	Währung	Eigenkapital in 000 LW		Ergebnis laut letztem Geschäftsjahr Gewinn (Verlust) in 000 LW
Unmittelbar gehaltene Anteile
Inland
FUJIFILM IMAGING PRODUCTS & SOLUTIONS
Verwaltungs GmbH, München	100	EUR	*		*
FUJIFILM IMAGING PRODUCTS & SOLUTIONS
GmbH & Co. KG, Willich, Konzernabschluss	100	EUR	-17.192	1	-6.564
Ausland
FUJIFILM Middle East FZE,
Dubai / VAE	100	AED	143.386	2	9.921
FUJIFILM Portugal, S.A.
Vila Nova de Gaia / Portugal	100	EUR	6.080	3	882
FUJIFILM Healthcare España, S.L.
Madrid / Spanien	100	EUR	17.548	4	109
FUJIFILM SPAIN, S.L.
Barcelona / Spanien	100	EUR	3.000	5
Mittelbar gehaltene Anteile
Inland
Über FUJIFILM IMAGING PRODUCTS &
SOLUTIONS GmbH & Co. KG
- FUJIFILM Imaging Systems GmbH & Co. KG
Willich	100	EUR		6

LW= Landeswährung

1) Jahresabschluss zum 31. März 2022

2) Jahresabschluss zum 31. März 2022

3) Jahresabschluss zum 31. März 2023

4) Jahresabschluss zum 31. März 2024

5) Gründungskapital. Operativ tätig ab dem 1. April 2024

6) Enthalten im Konzernabschluss der FUJIFILM IMAGING PRODUCTS AND SOLUTIONS GmbH & Co. KG, Willich

* Die Angaben für diese Gesellschaften sind aufgrund von § 286 Abs. 3 Satz 1 Nr. 1 HGB wegen untergeordneter Bedeutung unterblieben.

Umrechnungskurs EUR/AED zum 31. März 2024: 3,95254

Konzernverhältnisse

Die FUJIFILM Europe GmbH ist eine unmittelbare Tochtergesellschaft der FUJIFILM Europe B.V., Tilburg/Niederlande. Den kleinsten und größten Konzernkreis bildet die FUJIFILM Holdings Corporation, Tokio/Japan. Diese erstellt einen Konzernabschluss, in den die Gesellschaft und ihre Tochterunternehmen einbezogen werden.

Dieser Konzernabschluss hat gemäß § 292 HGB befreiende Wirkung für die FUJIFILM Europe GmbH, da er einschließlich des Bestätigungsvermerks des Abschlussprüfers in englischer Sprache offengelegt wird. Der befreiende Konzernabschluss der FUJIFILM Holdings Corporation zum 31.03.2022 wurde am 9. März 2023 im elektronischen Unternehmensregister veröffentlicht. Der befreiende Konzernabschluss zum 31.03.2023 wurde am 4. Juni 2024 zur Veröffentlichung beim elektronischen Unternehmensregister eingereicht.

Der befreiende Konzernabschluss der Muttergesellschaft ist im Wesentlichen auf der Grundlage der US-amerikanischen Generally Accepted Accounting Principles (US-GAAP) erstellt worden und damit von der Aussagekraft und vom Informationsgehalt mit einem nach US-GAAP aufgestellten Konzernabschluss vergleichbar.

Es bestehen die folgenden wesentlichen, im befreienden Konzernabschluss vom deutschen Recht abweichend angewandten Bilanzierungs-, Bewertungs- und Konsolidierungsmethoden:

Bei der Bilanzierung nach HGB sowie der Bilanzierung nach US-Rechnungslegung stehen unterschiedliche Rechnungslegungsphilosophien im Vordergrund. Für die handelsrechtliche Rechnungslegung sind das Vorsichts- und das Gläubigerschutzprinzip vorrangig, während die US-Rechnungslegung ihren Schwerpunkt auf Informationen für gegenwärtige und potenzielle Investoren legt. Generell steht bei der US-Rechnungslegung die periodengerechte Erfassung von Aufwendungen und Erträgen (matching principle) stärker im Vordergrund als in der deutschen Rechnungslegung.

Rückstellungen

Die Möglichkeiten zur Bildung von Rückstellungen sind in der US-amerikanischen Rechnungslegung restriktiver geregelt als nach HGB. Rückstellungen sind nach US-GAAP zu bilden, wenn eine Verpflichtung gegenüber einem Dritten besteht, die Inanspruchnahme wahrscheinlich ("more likely than not") und die voraussichtliche Höhe des Erfüllungsbetrags der notwendigen Rückstellung zuverlässig schätzbar ist. Dabei ist auch eine Abzinsung zu berücksichtigen, wenn diese zuverlässig schätzbar ist. Rückstellungen nach HGB sind mit dem erwarteten Erfüllungsbetrag zu bewerten und bei einer Restlaufzeit von mehr als einem Jahr abzuzinsen. Der Diskontierungszins orientiert sich nach US-GAAP an Renditen, die am Bilanzstichtag für erstrangige, festverzinsliche Unternehmensanleihen erzielt werden. Nach HGB ist dieser Zins grundsätzlich ein der Laufzeit entsprechender durchschnittlicher Marktzins der vergangenen sieben Geschäftsjahre.

Pensionsrückstellungen

Pensionsrückstellungen werden in der US-Rechnungslegung nach dem Anwartschaftsbarwertverfahren (projected unit credit method) ermittelt. Gehalts- und Rententrends sind bei der Ermittlung des Barwertes zu berücksichtigen. Diskontierungssatz ist der langfristige Kapitalmarktzins. Für handelsrechtliche Zwecke wird der durchschnittliche Marktzinssatz zugrunde gelegt, der sich bei einer angenommenen Restlaufzeit von 10 Jahren ergibt.

Eigenkapital

Nach US-Rechnungslegungsvorschriften werden im "comprehensive income" Veränderungen des Eigenkapitals eines Unternehmens während einer Periode erfasst, die aus nicht von Eigentümern veranlassten Transaktionen und anderen Begebenheiten resultieren. Die Position beinhaltet demnach alle Veränderungen im Eigenkapital während einer Periode, die nicht aus Einlagen oder Entnahmen der Eigner stammen.

Unrealisierte Gewinne

Gemäß deutscher Rechnungslegung dürfen unrealisierte Gewinne - bis auf wenige gesetzlich genau umschriebene Ausnahmen - nicht bilanziert werden, unrealisierte Verluste müssen bilanziert werden (Imparitätsprinzip). Die US-Rechnungslegung weicht hierin insoweit ab, als auch bestimmte andere unrealisierte Gewinne ausgewiesen werden müssen. Diese Regelung findet insbesondere bei derivativen Finanzinstrumenten Anwendung.

Immaterielle Vermögensgegenstände

Nach deutschen Rechnungslegungsvorschriften dürfen selbst geschaffene immaterielle Vermögensgegenstände angesetzt werden, soweit es sich nicht um selbst geschaffene Marken, Drucktitel, Verlagsrechte, Kundenlisten oder vergleichbare immaterielle Vermögensgegenstände des Anlagevermögens handelt. Nach US-Rechnungslegung werden solche Werte, die im Rahmen von Akquisitionen erworben wurden, als eigenständige Vermögensgegenstände behandelt und gesondert abgeschrieben.

Zudem werden nach US-Rechnungslegungsvorschriften ein Geschäfts- oder Firmenwert oder sonstige immaterielle Vermögensgegenstände des Anlagevermögens mit einer unbestimmten Nutzungsdauer, die am 1. Juli 2001 oder später erworben wurden, nicht mehr planmäßig abgeschrieben. Stattdessen wird mindestens einmal jährlich der Zeitwert solcher Vermögensgegenstände mit deren Buchwert verglichen. Übersteigt der Buchwert den Zeitwert, erfolgt in Höhe der Differenz eine Abwertung. Eine einmal vorgenommene Abwertung kann nicht wieder zugeschrieben werden. In der deutschen Handelsbilanz kommt auch bei unbestimmter Nutzungsdauer eine planmäßige Abschreibung über die geschätzte Nutzungsdauer zur Anwendung.

Restrukturierungsmaßnahmen

Rückstellungen für Restrukturierungsmaßnahmen und Schließungskosten sind gemäß US-GAAP zu bilden, wenn spezifische Kriterien kumulativ erfüllt sind; insbesondere wird die Abfassung eines Plans sowie die Verpflichtung zu dessen Umsetzung durch die Unter-nehmensleitung vorausgesetzt. Für die deutsche Rechnungslegung gelten die allgemeinen Voraussetzungen für den Ansatz von Verbindlichkeitsrückstellungen.

Latente Steuern

Latente Steuern entstehen nach US-GAAP aus dem zeitlichen Unterschied der Wertansätze in der Konzernbilanz und der Wertansätze nach Steuerrecht. Für den Steuereffekt aus aktiven und passiven Unterschieden besteht in der US-Rechnungslegung eine Ansatzpflicht. Latente Steuerguthaben aus steuerlichen Verlustvorträgen sind im Zeitpunkt ihrer Entstehung zu aktivieren; bei eingeschränkter Realisierbarkeit ist eine Wertberichtigung vorzunehmen.

Nachtragsbericht

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wird im Geschäftsjahr 2024/2025 die spanische Niederlassung in eine eigenständige Gesellschaft umgewandelt. Die übrigen ausländischen Niederlassungen in Tschechien (ohne operatives Geschäft) und Österreich sollen bis auf weiteres in der FEG verbleiben.

Ferner ist geplant, aus dem deutschen Vertriebsbereich der FEG die Medical Sparte in eine andere Konzerngesellschaft in Deutschland abzuspalten.

Weitere Vorgänge von besonderer Bedeutung, die nach dem Schluss des Geschäftsjahres eingetreten sind und weder in der Gewinn- und Verlustrechnung noch in der Bilanz berücksichtigt sind, haben sich nicht ereignet.

Ratingen, den 30. August 2024

Yoshiki Kimura

Peter Struik

Entwicklung des Anlagevermögens für das Geschäftsjahr 2023/2024

	Anschaffungskosten
	01.04.2023	Zugänge	Abgänge	Umbuchung	Abspaltung	31.03.2024
	€	€	€	€	€	€
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	3.381.208,34	4.968,00	54.945,96	0,00	2.300.552,46	1.030.677,92
Geschäfts- oder Firmenwert	863.613,00	0,00	0,00	0,00	0,00	863.613,00
	4.244.821,34	4.968,00	54.945,96	0,00	2.300.552,46	1.894.290,92
II. Sachanlagen
1. Grundstücke und Bauten	6.196.799,55	66.315,06	167.376,77	0,00	0,00	6.095.737,84
2. Technische Anlagen und Maschinen	12.407.580,45	3.832.403,45	557.608,19	0,00	6.686.226,43	8.996.149,28
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	5.667.118,50	1.593.700,57	3.490,42	737.530,15	941.237,01	7.053.621,79
Geleistete Anzahlungen und Anlagen im Bau	749.597,85	200.239,81	0,00	-737.530,15	88.558,05	123.749,46
	25.021.096,35	5.692.658,89	728.475,38	0,00	7.716.021,49	22.269.258,37
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	163.353.504,32	17.264.865,57	0,00	0,00	0,00	180.618.369,89
2. Wertpapiere des Anlagevermögens	1.500,00	0,00	1.500,00	0,00	0,00	0,00
	163.355.004,32	17.264.865,57	1.500,00	0,00	0,00	180.618.369,89
	192.620.922,01	22.962.492,46	784.921,34	0,00	10.016.573,95	204.781.919,18

	Kumulierte Abschreibungen
	01.04.2024	Zugänge	Abgänge	Abspaltung	31.03.2024
	€	€	€	€	€
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	3.213.861,55	40.174,97	29.945,96	2.251.936,84	972.153,72
Geschäfts- oder Firmenwert	313.404,00	64.361,00	0,00	0,00	377.765,00
	3.527.265,55	104.535,97	29.945,96	2.251.936,84	1.349.918,72
II. Sachanlagen
1. Grundstücke und Bauten	2.084.868,57	282.360,32	59.746,13	0,00	2.307.482,76
2. Technische Anlagen und Maschinen	7.756.561,52	1.248.824,71	362.668,80	2.348.892,75	6.293.824,68
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	2.223.805,23	881.025,13	2.807,27	258.953,32	2.843.069,77
Geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00	0,00
	12.065.235,32	2.412.210,16	425.222,20	2.607.846,07	11.444.377,21
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	157.881.294,05	0,00	0,00	0,00	157.881.294,05
2. Wertpapiere des Anlagevermögens	0,00	0,00	0,00	0,00	0,00
	157.881.294,05	0,00	0,00	0,00	157.881.294,05
	173.473.794,92	2.516.746,13	455.168,16	4.859.782,91	170.675.589,98

	Buchwerte
	31.03.2024	31.03.2023
	€	€
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	58.524,20	167.346,79
Geschäfts- oder Firmenwert	485.848,00	550.209,00
	544.372,20	717.555,79
II. Sachanlagen
1. Grundstücke und Bauten	3.788.255,08	4.111.930,98
2. Technische Anlagen und Maschinen	2.702.324,60	4.651.018,93
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	4.210.552,02	3.443.313,27
Geleistete Anzahlungen und Anlagen im Bau	123.749,46	749.597,85
	10.824.881,16	12.955.861,03
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	22.737.075,84	5.472.210,27
2. Wertpapiere des Anlagevermögens	0,00	1.500,00
	22.737.075,84	5.473.710,27
	34.106.329,20	19.147.127,09

Lagebericht für das Geschäftsjahr 2023/2024

1. Geschäftsverlauf und Rahmenbedingungen

Die FUJIFILM Europe GmbH, Ratingen (nachfolgend auch die "Gesellschaft" oder "FEG"), ist eine Tochtergesellschaft der niederländischen FUJIFILM Europe B.V. ("FENL"), Tilburg/Niederlande, und gehört zum Konzernverbund der FUJIFILM Holdings Corporation, Tokio/Japan. Während die Sales- und Marketingaktivitäten von der Gesellschaft gesteuert werden, werden die Administrativen Bereiche (Corporate Divisions) sowohl von der Gesellschaft als auch von der Mutter in den Niederlanden geführt.

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wurde im Geschäftsjahr in der spanischen Niederlassung die medizinische Sparte in Form einer Sacheinlage in eine andere Gesellschaft (FUJIFILM Healthcare España, S.L.) ausgegliedert, die dieses Geschäft eigenständig fortführt. Als Gegenleistung erhielt die FEG Anteile an der spanischen Gesellschaft ((FUJIFILM Healthcare España, S.L.)). Entsprechend haben sich die Finanzanlage der FEG um Mio. € 17,3 erhöht.

Aus der deutschen Gesellschaft wurde zum Beginn des Geschäftsjahres der Bereich, der den europaweiten medizinischen Vertrieb betrifft, in eine neue, eigenständige Gesellschaft (FUJIFILM Healthcare Europe GmbH) abgespalten. Aus diesen Gründen sind die Vorjahreszahlen nur bedingt vergleichbar. Wir verweise auf die Ausführungen im Abschnitt 2.2.

Die FUJIFILM Europe GmbH ist ein Großhandelsunternehmen, welches, wie im Folgenden ausgeführt, Produkte für verschiedene Anwendungsgebiete und Branchen vertreibt. Der Einkauf der Waren erfolgt überwiegend von der Muttergesellschaft FENL über das sogenannte "buy-sell-model".

1.1 Allgemeine Geschäftsentwicklung

FUJIFILM Europe GmbH ist ein Anbieter von Konsumgütern (Digitalkameras, Fotoprodukte und Dienstleistungen), aber auch von Industriegütern, die in verschiedenen Bereichen Anwendung finden. Hierzu zählen insbesondere die Produktbereiche Medical (Medizinische Systeme) und Graphic (Graphische Systeme), die über 80% des Gesamtumsatzes (vor Leistungsverrechnung im Konzernverbund) ausmachen.

Die wirtschaftliche Entwicklung im Jahr 2023/2024 in unseren zwei wichtigsten Märkten Deutschland und Spanien war nur teilweise positiv (Quelle: European Economic Forecast Winter 2024 der europäischen Kommission vom Februar 2024). Im Herbst wurde ein Rückgang des Bruttoinlandsprodukt (BIP) in Deutschland für das Jahr 2023 um 0,3% prognostiziert. Dies ist mit einem Rückgang von 0,2% fast wie erwartet eingetreten. Nach der Corona-Krise und dem wirtschaftlichen Einbruch im Jahr 2020 erhoffte sich die deutsche Wirtschaft eine Regeneration in den Folgejahren. Durch den Krieg in der Ukraine, steigende Energiepreisen und die Rekordinflation fiel die ökonomische Regenerierung im Jahr 2022 jedoch geringer aus, 2023 kam es nun sogar zu einer Rezession (Quelle: statista Veränderung des Bruttoinlandsprodukts im Vergleich zum Vorjahr bis 2023 vom 10. Juli 2024). Im Vorjahr ist die deutsche Wirtschaft noch mit 1,8% gewachsen. Der private Konsum litt im Jahr 2023 unter einem Kaufkraftverlust. Hinzu kommen hohe Bau- und Kreditkosten, Arbeitskräftemangel und erhöhte Energiepreise, die die Investitionen im Bau- und Energiesektor drückten.

Hingegen ist die spanische Wirtschaft im Jahr 2023 um 2,5 % gewachsen, geringfügig über dem, was im Herbst für 2023 prognostiziert wurde. Privater Konsum und in einem geringeren Umfang auch Investitionen waren die wichtigsten Treiber des BIP-Wachstums im gesamten Jahr 2023.

Im Geschäftsjahr lag der FEG Umsatz aus dem Handel und Service mit den genannten Produkten (ohne Leistungsverrechnungen im Konzern) in Höhe von Mio. € 209 unter dem Niveau des Vorjahres (Mio. € 227). Der Produktbereich Medical hatte mit 47% den größten Anteil am Gesamtumsatz (vor Leistungsverrechnung im Konzernverbund). Dabei erwirtschaftete dieser Produktbereich einen Umsatz von Mio. € 98 der unter den Erwartungen lag (Mio. € 102). Der Umsatz lag auch unter dem Niveau des Vorjahres (Mio. € 108) was auch mit der Ausgliederung der medizinischen Sparte in eine eigenständige Konzerngesellschaft in Spanien zusammenhängt. Der Produktbereich Endoskopie konnte hierbei mit rund 60% zum Gesamtumsatz von Medical beitragen.

Der Umsatz des Bereichs Graphic ist von Mio. € 76 im Vorjahr auf Mio. € 70 gefallen, wobei die Produktgruppe "Plate" (Druckplatten) den höchsten Umsatzanteil hatte (45%).

Im Vergleich zum Vorjahr ist der Umsatz in den übrigen Produktbereichen insgesamt von Mio. € 43 im Vorjahr auf Mio. € 41 gefallen. Hier hat sich allerdings der Umsatz im Produktbereich Photo-Imaging positiv entwickelt und ist von insgesamt von Mio. € 27 im Vorjahr auf Mio. € 29 gestiegen.

1.2 Betriebsergebnis

In den umsatzstärksten Niederlassungen wurden positive operative Geschäftsergebnisse erzielt. Dabei erwirtschaftete die Niederlassung in Deutschland erneut den größten Überschuss. Obwohl die Umsätze und die Gesamtleistung leicht gesunken sind und die Marge nahezu unverändert blieb, stieg das Betriebsergebnis um mehr als das Doppelte des Vorjahres. Ursächlich hierfür ist die Verminderung der Personalkosten. Durch die Abspaltung des medizinischen Teils aus dem Servicebereich der FEG, wechselten zahlreiche Mietarbeiter in die neue Gesellschaft, so dass die entsprechenden Personalkosten bei der FEG entfielen.

Weitere Details zu den Veränderungen innerhalb des Betriebsergebnisses sind in Punkt 2.2 Ertragslage zu finden.

1.3 Finanzielle und nicht finanzielle Leistungsindikatoren

Zur Steuerung des Unternehmens werden die folgenden finanziellen Leistungsindikatoren eingesetzt:

- Umsatz

- Jahresüberschuss

Zur Prognose der finanziellen Leistungsindikatoren verweisen wir auf die Ausführungen in Abschnitt 4.

Nicht finanzielle Leistungsindikatoren werden zur Steuerung des Unternehmens nicht eingesetzt.

2. Vermögens-, Finanz- und Ertragslage

Die Gesellschaft ist im Geschäftsjahr 2023/2024 in Deutschland, Spanien und Österreich durch ihre Zweigniederlassungen aktiv. Darüber hinaus werden FUJIFILM Produkte durch unabhängige Distributoren vertrieben. Aufgrund der Einbeziehung in den befreienden Konzernabschluss der Muttergesellschaft FUJIFILM Holdings Corporation, Tokio/Japan, wird kein eigener (Teil-) Konzernabschluss erstellt.

2.1 Vermögens- und Finanzlage

Die nachfolgende Übersicht ergibt sich nach Zusammenfassungen und Saldierungen, die nach betriebswirtschaftlichen Gesichtspunkten aus den Bilanzen des Geschäftsjahres sowie die des Vorjahres vorgenommen wurden. Forderungen und Verbindlichkeiten mit einer Restlaufzeit von mehr als einem Jahr werden als langfristig behandelt.

	31.03.2024		31.03.2023		Veränderung
	T€	%	T€	%	T€	%
AKTIVA
Anlagevermögen	34.106	17,8	19.147	9,2	14.959	78,1
Langfristige sonstige Aktiva	1.865	1,0	3.078	1,5	-1.213	-39,4
Vorräte	1.054	0,5	991	0,5	63	6,4
Lieferforderungen	30.150	15,7	36.784	17,6	-6.634	-18,0
Verbundene Unternehmen	21.195	11,1	19.840	9,5	1.355	6,8
Flüssige Mittel	101.772	53,1	126.641	60,7	-24.869	-19,6
Übrige Aktiva	1.641	0,9	2.142	1,0	-501	-23,3
Kurzfristiges Vermögen	155.812	81,2	186.398	89,3	-30.586	-16,4
	191.783	100,0	208.623	100,0	-16.840	-8,1
PASSIVA
Eigenkapital	110.734	57,7	110.612	53,0	122	0,1
Langfristige Rückstellungen	2.197	1,1	2.163	1,0	34	1,6
Übrige Rückstellungen	28.061	14,6	37.141	17,8	-9.080	-24,4
Lieferverbindlichkeiten	3.136	1,6	3.608	1,7	-472	-13,1
Verbundene Unternehmen	41.048	21,4	45.856	22,1	-4.808	-10,5
Übrige Verbindlichkeiten	6.607	3,4	9.243	4,4	-2.636	-28,5
Kurzfristige Verbindlichkeiten	78.852	41,2	95.848	46,0	-16.996	-17,7
	191.783	100,0	208.623	100,0	-16.840	-8,1

Anlagevermögen

Die Erhöhung des Anlagevermögens wird deutlich durch die Finanzanlagen geprägt, wie die nachfolgende Übersicht zeigt.

	31.03.2024		31.03.2023		Veränderung
	T€	%	T€	%	T€	%
Immaterielles Vermögen	544	0,3	717	0,3	-173	-24,1
Sachanlagen	10.825	5,6	12.956	6,3	-2.131	-16,4
Finanzanlagen	22.737	11,9	5.474	2,6	17.263	>100
Insgesamt	34.106	17,8	19.147	9,2	14.959	78,1

Die Aktiva und Passiva der spanischen Niederlassung, die den medizinischen Bereich betreffen, wurden als Sacheinlage in eine neue spanische Gesellschaft ausgegliedert. Als Gegenleistung erhielt die FEG Anteile an der spanischen Gesellschaft (FUJIFILM Healthcare España, S.L.). Entsprechend haben sich die Finanzanlage der FEG um Mio. € 17,3 erhöht.

Die langfristigen sonstigen Aktiva betreffen überwiegend langfristige Lieferforderungen (T€ 987), Forderungen gegen verbundene Unternehmen (T€ 120) sowie die Rückdeckungsversicherung für die Pensionsansprüche von insgesamt T€ 656.

Bei den unfertigen Erzeugnissen handelt es sich um noch nicht betriebsbereites Equipment, welches erst nach dem Stichtag beim Kunden installiert bzw. in Betrieb genommen wurde. Im Sinne des Realisationsprinzips wurden diese Erzeugnisse unter den Vorräten ausgewiesen und der Erlös im Folgejahr realisiert.

Die kurzfristigen Lieferforderungen gegen Dritte, welche im Wesentlichen aus den Handelsumsätzen resultieren, sanken im Vergleich zum Vorjahr um Mio. € 6,6, was durch die Verminderung der Umsätze zu erklären ist. Weitere Details hierzu sind den Erläuterungen unter Punkt 2.2 Ertragslage zu entnehmen.

Die kurzfristigen Forderungen gegen verbundene Unternehmen beliefen sich im Berichtsjahr auf Mio. € 21,2 (Vorjahr Mio. € 19,8). Sie betreffen hauptsächlich ausstehende Abrechnungen für erbrachte Dienstleistungen gegen die Muttergesellschaft FENL.

Das Bankguthaben verminderte sich im Wesentlichen durch die gesunkenen Lieferforderungen (Mio. € 6,6), Rückzahlungen von Darlehen an die Muttergesellschaft (Mio.€ 2,0) sowie eine zusätzliche Bareinlage in Höhe von Mio. € 5,0 in eine neu gegründete Tochtergesellschaft in Deutschland.

Die kurzfristigen übrigen Aktiva betreffen im Wesentlichen Ertragsabgrenzungen aus Serviceverträgen (T€ 305), debitorische Kreditoren (T€ 424), Steuererstattungsansprüche (T€ 188) sowie gezahlte Aufwendungen, die wirtschaftlich in das kommende Geschäftsjahr gehören (T€ 168).

Das Stammkapital beträgt im Geschäftsjahr 2023/2024 unverändert Mio. € 52,2.

Aufgrund der oben genannten Ausgliederung des medizinischen Vertriebs in eine neue, eigenständige Gesellschaft (FUJIFILM Healthcare Europe GmbH) hat sich die Kapitalrücklage um € 8,1 Mio. reduziert. Der Bilanzgewinn in Höhe von Mio. € 16,5 beinhaltet den Jahresüberschuss des Vorjahres (Mio. € 8,25) sowie den Jahresüberschuss dieses Geschäftsjahres (Mio. € 8,23).

Erneut hat sich der Anteil des Eigenkapitals an der Bilanzsumme (Eigenkapitalquote) um 4,7 Prozentpunkte auf 57,7% erhöht was auf eine steigende finanzielle Stabilität und eine gesunde Unternehmensstruktur schließen lässt.

Die langfristigen Passiva beinhalten die Rückstellung für Pensionsverpflichtungen.

Die übrigen Rückstellungen setzen sich aus den Steuerrückstellungen (Mio. € 16,0) sowie den sonstigen Rückstellungen (Mio. € 12,1) zusammen.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen enthalten Verbindlichkeiten aus Lieferungen und Leistungen (T€ 39.048), davon T€ 28.507 gegenüber der Muttergesellschaft FENL sowie Darlehensverbindlichkeiten in Höhe von T€ 2.000, sämtlich gegenüber FENL.

Im Vergleich zum Vorjahr sind die Verbindlichkeiten aus Lieferungen und Leistungen gegenüber verbundenen Unternehmen um T€ 4.809 gesunken. Im Wesentlichen betrifft das den Wareneinkauf bei der niederländischen Mutter FENL. Die Darlehensverbindlichkeiten bestehen sämtlich gegenüber der FENL und wurden im Geschäftsjahr teilweise getilgt. Sie betreffen nur noch die österreichische Niederlassung (T€ 2.000). Der Kapitalbedarf der FEG wird somit vollständig innerhalb des Konzerns gedeckt.

2.2 Ertragslage

Nach Zusammenfassungen und Saldierungen, die nach betriebswirtschaftlichen Gesichtspunkten vorgenommen wurden, ergibt sich für die Gesellschaft die folgende Ertragsübersicht.

	2023/2024		2022/2023		Veränderung
	T€	%	T€	%	T€	%
Umsatzerlöse gesamt	258.457	100,0	276.540	100,0	-18.083	-6,5
Bestandsveränderung	63	0,0	-279	-0,1	342	-122,6
Gesamtleistung	258.520	100,0	276.261	99,9	-17.741	-6,4
Materialaufwand gesamt	176.381	68,2	220.920	80,0	-44.539	-20,2
Personalaufwand	52.068	20,1	54.956	19,9	-2.888	-5,3
Abschreibungen (planmäßig)	2.517	1,0	2.414	0,9	103	4,3
Sonstiger Betriebsaufwand	33.651	13,0	8.826	3,2	24.825	281,3
Sonstige betriebliche Erträge	13.650	5,3	14.196	5,1	-546	-3,8
Sonstige Steuern	121	0,0	107	0,0	14	13,1
Betrieblicher Aufwand	251.088	97,1	273.027	98,7	-21.939	-8,0
Betriebsergebnis	7.432	2,9	3.234	1,2	4.198	129,8
Umsatzrentabilität	3,6%		1,4%
Beteiligungs- und Finanzergebnis	3.801		4.414		-613
Ergebnis vor Ertragssteuern	11.233		7.648		3.585
Ertragssteuern	3.001		-600		3.601
Jahresergebnis	8.232		8.248		-16

Die Umsätze sind leicht gesunken, was unter anderem darauf zurückzuführen ist, dass aus der deutschen Gesellschaft zum Beginn des Geschäftsjahres der Bereich, der den europaweiten medizinischen Vertrieb betrifft, in eine neue, eigenständige Gesellschaft (FUJIFILM Healthcare Europe GmbH) abgespalten wurde. Im Vorjahr hatte dieser Bereich einen Umsatz aus konzerninternen Weiterbelastungen der Kosten für den Medical Vertrieb in Höhe von Mio. € 15. Der darin enthaltene Gewinnaufschlag betrug rund T€ 850. Insgesamt stellt die Abspaltung aus der deutschen Gesellschaft den größten Teil der Veränderungen zum Vorjahr dar.

Weitere Details zu den Handels- und Dienstleistungsumsätzen werden in den Erläuterungen unter Punkt 1.1 Allgemeine Geschäftsentwicklung bzw. nachfolgend unter Punkt 3. Zweigniederlassungen dargestellt.

Der Personalaufwand ist um T€ 2.888 gesunken, was ebenfalls auf den Transfer von Mitarbeitern aus Deutschland und Spanien in die neuen Healthcare Gesellschaften zurückzuführen ist.

Dass das Betriebsergebnis, trotz geringerer Umsätze, um mehr als das Doppelte gestiegen ist, ist mit den analog gesunkenen Wareneinsätzen sowie den verminderten Personalkosten zu erklären.

Die Umsatzrendite bzw. der Return of Sales (Betriebsergebnis/Handelsumsatz) ist von 1,4% auf 3,6% gestiegen.

Beteiligungs- und Finanzergebnis

	2023/2024	2022/2023
	T€	T€
Zinsen und ähnliche Aufwendungen	-203	-2.666
Sonstige Zinsen und ähnliche Erträge	4.004	1.247
Erträge aus der Veräußerung
von Niederlassungen	0	356
von Gebäuden	0	5.477
Beteiligungs- und Finanzergebnis	3.801	4.414

Die Zinsen und ähnlichen Aufwendungen enthielten im Vorjahr T€ 2.465 für Steuernachforderungen. Es handelte sich um Risiken resultierend aus der abgeschlossenen Betriebsprüfung für den Veranlagungszeitraum 2010 bis 2013 sowie die Risiken aus den noch nicht abgeschlossene Betriebsprüfungen der folgenden Veranlagungszeiträume 2014 bis 2017. Für die wesentlichen Prüfungsfeststellungen des Veranlagungszeitraums 2010 bis 2013 ist ein Verständigungsverfahren eingeleitet worden.

Die hohen Zinserträge resultieren aus den steigenden Guthabenzinsen des Cash-Pool-Kontos.

Die Steuern vom Einkommen und Ertrag in der Höhe von T€ 3.001 betreffen im Wesentlichen die für das Geschäftsjahr gebildete Rückstellung für die Körperschafsteuer und die Gewerbesteuer. Im Vorjahr waren hier periodenfremden Erträge in Höhe von T€ 3.651 enthalten. Sie betrafen im Wesentlichen Anpassungen der Steuerrückstellung für die Veranlagungszeiträume 2010 bis 2017.

Der Jahresüberschuss in Höhe von Mio. € 8,2 entspricht fast dem des Vorjahres.

Für die zukünftige Entwicklung der Gesellschaft verweisen wir auf den Risiko- und den Prognosebericht. Die Geschäftsführung beurteilt die wirtschaftliche Lage der Gesellschaft zum Zeitpunkt der Erstellung des Lageberichts positiv.

3. Zweigniederlassungen

Die Gesellschaft besitzt zum Bilanzstichtag noch vier Niederlassungen. Es sind die Niederlassungen in Deutschland, Spanien, Österreich und Tschechien. Die tschechische Niederlassung hat kein operatives Geschäft mehr. Sie wurde noch nicht geschlossen, da das im Besitz befindliche Bürogebäude nicht an die neue Gesellschaft übertragen wurde und daher zunächst veräußert werden muss.

	Umsatz in T€
FEG-D FUJIFILM Deutschland, Niederlassung der FUJIFILM Europe GmbH in Düsseldorf (Deutschland)	130.332
FEG-ES FUJIFILM Europe GmbH, Sucursal en Espana in Barcelona (Spanien)	76.970
FEG-AT FUJIFILM Europe GmbH, Niederlassung Österreich, Wien (Österreich)	5.266
FEG-CZ FUJIFILM Europe GmbH (organizacni slozka) in Prag (Tschechien)	---

4. Prognose-, Chancen- und Risikobericht

Prognosebericht

Wie bereits beschrieben ist Deutschlands Bruttoinlandsprodukt (BIP) in 2023 um 0,2% geschrumpft. Die Stimmungsindikatoren sind weiterhin schwach. Einige Indikatoren erreichten im Januar ihren Tiefststand seit der COVID-19-Krise, was auf ein gedämpftes Wirtschaftswachstum im ersten Halbjahr 2024 hindeutet. Investitionswachstum wird voraussichtlich im Vergleich zu den Werten vor der Pandemie niedrig bleiben und wird durch die schlechte Anlegerstimmung belastet. Der Arbeitskräftemangel stellt weiterhin einen Engpass für die Wirtschaftstätigkeit dar. Eine handelsbedingte Erholung ist ebenfalls unwahrscheinlich, da Exporte und Importe in beiden Prognosejahren in etwa im gleichen Tempo wachsen werden. Strengere Haushaltspolitik und auch die politischen Bedingungen dürften sich dämpfend auf die kurzfristigen Wachstumsaussichten auswirken. Positiv dürften sich jedoch die moderat entspannten Marktfinanzierungsbedingungen auswirken. Darüber hinaus dürften die Realeinkommen von einem robusten und steigenden Arbeitsmarkt profitieren, die im Prognosezeitraum den privaten Konsum stützen dürften (Quelle: European Economic Forecast Winter 2024 der europäischen Kommission vom Februar 2024). Insgesamt wird für das reale BIP für das Jahr 2024 ein Anstieg um 0,2 % und für das Jahr 2025 um 0,9 % prognostiziert. (Quelle: statista Prognosen zur Entwicklung des deutschen BIP bis 2025 vom 31. Mai 2024).

Der Produktbereich Medical hatte den größten Anteil am Gesamtumsatz. Dabei erwirtschaftete dieser Produktbereich einen Umsatz von Mio. € 98 der unter den Erwartungen lag (Mio. € 102). Der Umsatz lag auch unter dem Niveau des Vorjahres (Mio. € 108), was auch mit der Ausgliederung der medizinischen Sparte in eine eigenständige Konzerngesellschaft in Spanien zusammenhängt. Der Produktbereich Endoskopie hat hierbei den größten Anteil am Gesamtumsatz von Medical.

Der Handelsumsatz der Gesellschaft (ohne Berücksichtigung der konzerninternen Leistungsverrechnung) ist von € 227 Mio. um ca. 7,9% auf € 209 Mio. gefallen. Der im Vorjahr prognostizierte Umsatz in Höhe von € 227 Mio. wurde verfehlt. Der Umsatzrückgang ist auf einen schwächeren Geschäftsverlauf den Bereichen Graphic (-8%) und Medical (-9%) zurückzuführen. Der Photo-Imaging Bereich ist hingegen um 8% gewachsen. Wie bereits zuvor erläutert, lag der Umsatz im Medical Bereich (Mio. € 98) unter den Erwartungen (Mio. € 102). Der Umsatz des Bereichs Graphic ist von Mio. € 76 im Vorjahr lauf Mio. € 70 gefallen, wobei erneut die Produktgruppe "Plate" (Druckplatten) den höchsten Umsatzanteil hatte. Der erreichte Umsatz lag unter den Erwartungen (Mio. € 83).

Der Umsatz der deutschen Graphic Sparte ist im Geschäftsjahr 2023/2024 im Vergleich zum Geschäftsjahr 2022/2023 niedriger ausgefallen. Die Wirtschaft, speziell im grafischen Gewerbe, hat sich noch nicht erholt. Die wirtschaftliche Lage hat zur Folge, dass einige Firmen in die Insolvenz gingen, das Geschäft eingestellt haben oder mit einer anderen Firma fusioniert haben. Durch die Verlagerung der Druckplattenproduktion von FUJIFILM Tilburg (NL) nach China hatte die Gesellschaft mit verschiedenen Herausforderungen zu kämpfen. Zum einen die lange Lieferzeit von bis zu 5-6 Monaten, die Reduzierung des Produktportfolios und die generelle wirtschaftliche Situation. Des Weiteren haben sich die Druckplatten-Aufschläge auf Aluminium und Energie weiter nach unten reduziert. Das alles hat dazu geführt, dass die geplanten Quadratmetermengen und die Umsätze nicht ganz erreicht wurden. Das Geschäft im Bereich der Investitionsgüter war zufriedenstellend, wird aber zunehmend härter. Die Investitionsbereitschaft, bedingt durch die wirtschaftliche Lage und der erhöhten Zinssituation führt dazu, dass einige Firmen ihre geplante Investition zurückstellten. Der WFIJ (Wide Format Inkjet) Equipment Bereich erholt sich langsam. Dadurch, dass Events und Großveranstaltungen wieder stattfinden, wird auch wieder mehr im POS (Point of Sales Bereich) gedruckt. Hervorzuheben ist der Bereich POD (Print on demand Ex. Xerox). Die Budgetzahlen wurden weitestgehend erfüllt. Im bestehenden Produktsegment JetPress wurde das Ergebnis nicht ganz erreicht. Das Kerngeschäft, der Druckplattenbereich, drängt sich immer weiter in den Hintergrund. Die zunehmende Digitalisierung führt dazu, dass der Tinten- und Tonerumsatz irgendwann die konventionelle Druckplatte ablösen wird. Bemerkenswert ist hier, dass FUJIFILM trotz der sehr schwierigen wirtschaftlichen Lage, viel Zeit und Geld in Forschung und Entwicklung investiert hat, um neue digitale Geräte für die verschiedensten Druckbereiche anbieten zu können.

Im Bereich Druckplatten wird es zum einen das Ziel sein, alle Kunden auf chinesische Druckplatten umzustellen und zum zweiten die zukunftweisende prozesslose Platte vermehrt anzubieten und dem Kunden den ökologischen Aspekt nahe zu bringen. Ganz klarer Fokus und Strategie liegen im digitalen High End Produktionsbereich und der Einführung dieser Produkte.

In der deutschen Medical Sparte ist das Geschäft je nach Produkt-Segment unterschiedlich verlaufen.

Im Bereich der Endoskopie hat FUJIFILM wieder viele große und mittlere Krankenhäuser sowie Meinungsbildner als Kunden hinzugewinnen können. Der Umsatz der Endoskopie-Systeme verlief im dritten Geschäftsjahresquartal durch die stärkere Zurückhaltung der Krankenhäuser aufgrund der vermuteten Auswirkungen der anstehenden aber noch nicht beschlossenen Gesundheits-Strukturreform etwas verhaltener. Im vierten Geschäftsjahresquartal hat sich die Zurückhaltung gelöst und zu einem Rekordergebnis des 4. Geschäftsjahresquartals geführt. Die positive Kundenwahrnehmung von FUJIFILM als innovativer und zuverlässiger Lösungsanbieter im Bereich der flexiblen Endoskopie konnte mit der Einführung künstlicher Intelligenz weiterhin deutlich ausgebreitet werden. Ein weiterer positiver Effekt wurde durch die Aufnahme der High-End Ultraschall Lösungen im Portfolio erzielt. Während des Geschäftsjahres 2023/2024 konnte der Anteil der Endoskopie-Vollserviceverträge auf hohem Niveau weiter gesteigert werden. Aufgrund der zukünftig zu erwartenden ständigen Modifizierung und Erweiterung des Produktportfolios im Bereich der Endoskopie sind die Chancen von FUJIFILM sehr hoch, ihren Marktanteil in allen Segmenten weiter auszubauen.

Im Bereich der Radiologie wurden im Geschäftsjahr 2023/2024 weiterhin Komplettanlagen für die Projektionsradiologie (Bucky-Systeme) und mobile Röntgensysteme im Krankenhaussegment sehr erfolgreich verkauft. Die erfolgreiche Nutzung möglicher Synergien von FUJIFILM Healthcare Europe (FHC, vormals Hitachi Diagnostic Imaging) und FUJIFILM Europe ist ein zentraler Bestandteil der Wachstumsstrategie. FUJIFILM wird sich mit dieser Übernahme als einer der wesentlichen Marktteilnehmer im Gesundheitswesen weiter etablieren. Das Zusammenspiel beider Produktpaletten verbessert die Fähigkeit, umfassende Lösungen unseren Kunden in einzigartiger Zusammensetzung präsentieren zu können. Ein besonderer Schwerpunkt in 2024/2025 liegt im Bereich der offenen MRTs, bei dem FUJIFILM gute Marktchancen sieht. Auch durch die Entscheidung des G-BA, das Mammographie Screening für Frauen von 50-75 Jahren auszuweiten (bisher 50-69 Jahre), wird mit einer höheren Nachfrage für Mammographie-Systeme gerechnet.

Im Bereich Medical IT wurden diverse neue Plattformen eingeführt. Die Bedeutendsten sind Digitale Pathologie, AI, VNA und Cloud Systeme. Daneben werden auch 3D OP-Planungssysteme und Dosismanagment Lösungen angeboten. Alle Produktgruppen sind mittlerweile verfügbar und werden nachgefragt. Bei OP-Planungssystemen sind die Bereiche Leber, Lunge, Niere gefragt. PACS als Basisprodukt in der Vergangenheit ist durch die Marktsättigung in den Hintergrund geraten. Stark umsatzrelevant werden VNA und AI und Cloud und Digitale Pathologie, in den nächsten Jahren sein.

In Spanien ist der Umsatz insgesamt von Mio. € 79,4 um 7,2% auf Mio. € 73,7 gefallen, was hauptsächlich mit der Ausgliederung der medizinischen Sparte in eine eigenständige Konzerngesellschaft zusammenhängt.

Bezogen auf den Jahresüberschuss wurden die Ziele der Gesellschaft erreicht. Es wurde ein Jahresüberschuss von Mio. € 8,2 erzielt (Prognose lag bei Mio. € 4,7).

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wird im Geschäftsjahr 2024/2025 die spanische Niederlassung in eine eigenständige Gesellschaft umgewandelt. Ferner ist geplant, aus dem deutschen Vertriebsbereich der FEG die Medical Sparte in eine andere Konzerngesellschaft in Deutschland abzuspalten. Entsprechend der geplanten Entwicklung in den verbleibenden Niederlassungen in Deutschland und Österreich sowie der Ausgliederung der Medical Sparte, erwartet die Gesellschaft für das kommende Geschäftsjahr 2024/2025 in den verbleibenden Produktbereichen weiterhin eine leicht wachsende Geschäftsentwicklung. Durch den Konzernumbau werden sich sowohl das Produktportfolio wie auch die Geschäftsergebnisse entsprechend ändern. Mit Verbleib des noch einzigen Geschäftsfeldes Graphic werden Umsatz und Jahresüberschuss im Vergleich zum Vorjahr deutlich zurückgehen. Unter Berücksichtigung der verbleibenden Niederlassungen und Geschäftsfelder wird im Vergleich zum Vorjahr der Umsatz voraussichtlich moderat um 6% wachsen, wohingegen der Jahresüberschuss deutlich um ca. 47% zurückgehen wird. Die Prognose bleibt, auch aufgrund der unter Umfeld- und Branchenrisiken beschriebenen Sachverhalte, jedoch ungewiss.

Chancenbericht

Wie bereits oben im Prognosebericht ausgeführt, liegen der Fokus und die Strategie ganz klar im digitalen High End Produktionsbereich. Hier geht es insbesondere um die neue Gerätegeneration, sowohl im Bereich POD wie auch der Jetpress 750HSM und der Packaging Variante, der bis zu 5 Meter breiten druckenden digitalen Rollenmaschinen der Serie Acuity. Zudem wurden die R2R Commercial Jetpress 1160 CFG und die neue flexible Flexomaschine FP790 angekündigt. Mit dem Verkauf dieser High End Geräte wird gleichzeitig der Verkauf unserer INK (Tinten) und Tonerumsätze gesteigert.

Risikobericht

Umfeld- und Branchenrisiken:

Im der Sparte Graphic Durch die Verlagerung der Druckplattenproduktion von FUJIFILM Tilburg (NL) nach China hatte die Gesellschaft mit verschiedenen Herausforderungen zu kämpfen. Zum einen die lange Lieferzeit von bis zu 5-6 Monaten, die Reduzierung des Produktportfolios und die generelle wirtschaftliche Situation. Zudem wird das Geschäft im Bereich der Investitionsgüter zunehmend schwieriger. Die Investitionsbereitschaft, bedingt durch die wirtschaftliche Lage und der erhöhten Zinssituation führt dazu, dass einige Firmen ihre geplante Investition zurückstellten. Das Kerngeschäft, der Druckplattenbereich, drängt sich immer weiter in den Hintergrund. Die zunehmende Digitalisierung führt dazu, dass der Tinten- und Tonerumsatz irgendwann die konventionelle Druckplatte ablösen wird.

Leistungswirtschaftliche Risiken:

Die FEG hält Beteiligungen an einer deutschen Gesellschaft, einer portugiesischen, einer spanischen sowie an einer Gesellschaft in den Vereinigten Arabischen Emiraten.

Die Bewertung der Anteile der Tochterunternehmen stellt generell ein Risiko für die Gesellschaft dar. Die Entwicklung der Tochtergesellschaften hängt teilweise von Faktoren außerhalb des Einflussbereichs der FEG ab. Diesem Risiko versucht die Gesellschaft durch ein Beteiligungscontrolling in enger Zusammenarbeit mit den Töchtern zu begegnen (geringes Risiko).

Finanzwirtschaftliche Risiken:

Wie auch in den letzten Jahren bleibt die Entwicklung der Wechselkurse ein latentes Risiko, das von Unternehmensseite nicht zu beeinflussen ist (geringes Risiko).

Auch die Werthaltigkeit von Forderungen stellt ein Risiko für die Gesellschaft dar. Dem Risiko wird einerseits durch die Bildung von Wertberichtigungen und andererseits durch ein effizientes Debitorenmanagement begegnet (geringes Risiko). Trotz der Auswirkungen der Pandemie und dem Krieg in der Ukraine lassen sich derzeit keine wesentlichen negativen Folgen auf die Werthaltigkeit der Forderungen (Ausfall von Forderungen, Verschlechterung der Altersstruktur der Forderungen) erkennen.

Sonstige Risiken:

Sonstige Risiken: Wie alle Wirtschaftsunternehmen unterliegt die Gesellschaft der laufenden Überprüfung der deklarierten und abgeführten Steuern durch die nationalen Finanzverwaltungen. Der betragsmäßig höchste Anteil des Geschäftsvolumens entfällt auf Deutschland. Im Geschäftsjahr 2023/2024 ist die Betriebsprüfung für die Veranlagungsjahre 2014 bis 2017 fortgesetzt worden (mittleres Risiko).

Für die Betriebsprüfungen der Veranlagungsjahre 2007 bis 2009 sowie 2010 bis 2013 sind von der Finanzverwaltung Betriebsprüfungsberichte erstellt worden. Die aufgrund der Betriebsprüfungsberichte mit Steuerbescheid festgesetzten Steuern sind zum großen Teil umstritten. Verständigungsverfahren mit den Finanzbehörden sind eingeleitet worden. Wesentliche Diskussionspunkte betreffen die Transferpreise und die Bewertung des auf die FUJIFILM Europe B.V. übertragenen Exportgeschäfts.

5. Gesamtaussage

Unter Berücksichtigung der Restrukturierungen im Geschäftsjahr 2024/2025, der stabilen Vermögens- und Finanzlage und der stetigen Anpassung des Produktportfolios an die Märkte und an die technologischen Entwicklungen befindet sich die Gesellschaft in einer gesunden Verfassung und sieht sich, wenn auch mit einer reduzierten Markt und Portfolio, auch in Zukunft gut in Bezug auf Wachstum und Gewinnerzielung aufgestellt.

Ratingen, den 30. August 2024

Yoshiki Kimura
(Geschäftsführer)

Peter Struik
(Geschäftsführer)

Bestätigungsvermerk des unabhängigen Abschlussprüfers

An die FUJIFILM Europe GmbH, Ratingen

Prüfungsurteile

Wir haben den Jahresabschluss der FUJIFILM Europe GmbH, Ratingen, - bestehend aus der Bilanz zum 31. März 2024 und der Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. April 2023 bis zum 31. März 2024 sowie dem Anhang, einschließlich der Darstellung der Bilanzierungs- und Bewertungsmethoden - geprüft. Darüber hinaus haben wir den Lagebericht der FUJIFILM Europe GmbH für das Geschäftsjahr vom 1. April 2023 bis zum 31. März 2024 geprüft.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse

• entspricht der beigefügte Jahresabschluss in allen wesentlichen Belangen den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften und vermittelt unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens- und Finanzlage der Gesellschaft zum 31. März 2024 sowie ihrer Ertragslage für das Geschäftsjahr vom 1. April 2023 bis zum 31. März 2024 und

• vermittelt der beigefügte Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft. In allen wesentlichen Belangen steht dieser Lagebericht in Einklang mit dem Jahresabschluss, entspricht den deutschen gesetzlichen Vorschriften und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar.

Gemäß § 322 Abs. 3 Satz 1 HGB erklären wir, dass unsere Prüfung zu keinen Einwendungen gegen die Ordnungsmäßigkeit des Jahresabschlusses und des Lageberichts geführt hat.

Grundlage für die Prüfungsurteile

Wir haben unsere Prüfung des Jahresabschlusses und des Lageberichts in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführt. Unsere Verantwortung nach diesen Vorschriften und Grundsätzen ist im Abschnitt "Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts" unseres Bestätigungsvermerks weitergehend beschrieben. Wir sind von dem Unternehmen unabhängig in Übereinstimmung mit den deutschen handelsrechtlichen und berufsrechtlichen Vorschriften und haben unsere sonstigen deutschen Berufspflichten in Übereinstimmung mit diesen Anforderungen erfüllt. Wir sind der Auffassung, dass die von uns erlangten Prüfungsnachweise ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht zu dienen.

Verantwortung der gesetzlichen Vertreter für den Jahresabschluss und den Lagebericht

Die gesetzlichen Vertreter sind verantwortlich für die Aufstellung des Jahresabschlusses, der den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften in allen wesentlichen Belangen entspricht, und dafür, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt. Ferner sind die gesetzlichen Vertreter verantwortlich für die internen Kontrollen, die sie in Übereinstimmung mit den deutschen Grundsätzen ordnungsmäßiger Buchführung als notwendig bestimmt haben, um die Aufstellung eines Jahresabschlusses zu ermöglichen, der frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen (d. h. Manipulationen der Rechnungslegung und Vermögensschädigungen) oder Irrtümern ist.

Bei der Aufstellung des Jahresabschlusses sind die gesetzlichen Vertreter dafür verantwortlich, die Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit zu beurteilen. Des Weiteren haben sie die Verantwortung, Sachverhalte in Zusammenhang mit der Fortführung der Unternehmenstätigkeit, sofern einschlägig, anzugeben. Darüber hinaus sind sie dafür verantwortlich, auf der Grundlage des Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit zu bilanzieren, sofern dem nicht tatsächliche oder rechtliche Gegebenheiten entgegenstehen.

Außerdem sind die gesetzlichen Vertreter verantwortlich für die Aufstellung des Lageberichts, der insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt. Ferner sind die gesetzlichen Vertreter verantwortlich für die Vorkehrungen und Maßnahmen (Systeme), die sie als notwendig erachtet haben, um die Aufstellung eines Lageberichts in Übereinstimmung mit den anzuwendenden deutschen gesetzlichen Vorschriften zu ermöglichen und um ausreichende geeignete Nachweise für die Aussagen im Lagebericht erbringen zu können.

Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

Unsere Zielsetzung ist, hinreichende Sicherheit darüber zu erlangen, ob der Jahresabschluss als Ganzes frei von wesentlichen falschen Darstellungen aufgrund von dolosen Handlungen oder Irrtümern ist, und ob der Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss sowie mit den bei der Prüfung gewonnenen Erkenntnissen in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutreffend darstellt, sowie einen Bestätigungsvermerk zu erteilen, der unsere Prüfungsurteile zum Jahresabschluss und zum Lagebericht beinhaltet.

Hinreichende Sicherheit ist ein hohes Maß an Sicherheit, aber keine Garantie dafür, dass eine in Übereinstimmung mit § 317 HGB unter Beachtung der vom Institut der Wirtschaftsprüfer (IDW) festgestellten deutschen Grundsätze ordnungsmäßiger Abschlussprüfung durchgeführte Prüfung eine wesentliche falsche Darstellung stets aufdeckt. Falsche Darstellungen können aus dolosen Handlungen oder Irrtümern resultieren und werden als wesentlich angesehen, wenn vernünftigerweise erwartet werden könnte, dass sie einzeln oder insgesamt die auf der Grundlage dieses Jahresabschlusses und Lageberichts getroffenen wirtschaftlichen Entscheidungen von Adressaten beeinflussen.

Während der Prüfung üben wir pflichtgemäßes Ermessen aus und bewahren eine kritische Grundhaltung. Darüber hinaus

• identifizieren und beurteilen wir die Risiken wesentlicher falscher Darstellungen im Jahresabschluss und im Lagebericht aufgrund von dolosen Handlungen oder Irrtümern, planen und führen Prüfungshandlungen als Reaktion auf diese Risiken durch sowie erlangen Prüfungsnachweise, die ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zu dienen. Das Risiko, dass aus dolosen Handlungen resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, ist höher als das Risiko, dass aus Irrtümern resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, da dolose Handlungen kollusives Zusammenwirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen bzw. das Außerkraftsetzen interner Kontrollen beinhalten können.

• gewinnen wir ein Verständnis von dem für die Prüfung des Jahresabschlusses relevanten internen Kontrollsystem und den für die Prüfung des Lageberichts relevanten Vorkehrungen und Maßnahmen, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen angemessen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit dieser Systeme der Gesellschaft abzugeben.

• beurteilen wir die Angemessenheit der von den gesetzlichen Vertretern angewandten Rechnungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern dargestellten geschätzten Werte und damit zusammenhängenden Angaben.

• ziehen wir Schlussfolgerungen über die Angemessenheit des von den gesetzlichen Vertretern angewandten Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsicherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die bedeutsame Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwerfen können. Falls wir zu dem Schluss kommen, dass eine wesentliche Unsicherheit besteht, sind wir verpflichtet, im Bestätigungsvermerk auf die dazugehörigen Angaben im Jahresabschluss und im Lagebericht aufmerksam zu machen oder, falls diese Angaben unangemessen sind, unser jeweiliges Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grundlage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zukünftige Ereignisse oder Gegebenheiten können jedoch dazu führen, dass die Gesellschaft ihre Unternehmenstätigkeit nicht mehr fortführen kann.

• beurteilen wir Darstellung, Aufbau und Inhalt des Jahresabschlusses insgesamt einschließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvorfälle und Ereignisse so darstellt, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt.

• beurteilen wir den Einklang des Lageberichts mit dem Jahresabschluss, seine Gesetzesentsprechung und das von ihm vermittelte Bild von der Lage des Unternehmens.

• führen wir Prüfungshandlungen zu den von den gesetzlichen Vertretern dargestellten zukunftsorientierten Angaben im Lagebericht durch. Auf Basis ausreichender geeigneter Prüfungsnachweise vollziehen wir dabei insbesondere die den zukunftsorientierten Angaben von den gesetzlichen Vertretern zugrunde gelegten bedeutsamen Annahmen nach und beurteilen die sachgerechte Ableitung der zukunftsorientierten Angaben aus diesen Annahmen. Ein eigenständiges Prüfungsurteil zu den zukunftsorientierten Angaben sowie zu den zugrunde liegenden Annahmen geben wir nicht ab. Es besteht ein erhebliches unvermeidbares Risiko, dass künftige Ereignisse wesentlich von den zukunftsorientierten Angaben abweichen.

Wir erörtern mit den für die Überwachung Verantwortlichen unter anderem den geplanten Umfang und die Zeitplanung der Prüfung sowie bedeutsame Prüfungsfeststellungen, einschließlich etwaiger bedeutsamer Mängel im internen Kontrollsystem, die wir während unserer Prüfung feststellen.

Düsseldorf, den 30. August 2024

KPMG AG
Wirtschaftsprüfungsgesellschaft

Sperling
Wirtschaftsprüfer

Özgüc
Wirtschaftsprüfer

2f:Ta1148,

FUJIFILM Europe GmbH

Ratingen

Befreiender Konzernabschluss zum Geschäftsjahr vom 01.04.2022 bis zum 31.03.2023

FUJIFILM Holdings Corporation

Tokio/Japan

This document is a translation of the Consolidated Financial Statements in the "YUKASHOKEN HOKOKUSHO" originally issued in Japanese.

Independent Auditor's Report on the Consolidated Financial Statements

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

[English Translation of the Independent Auditor's Report Originally Issued in Japanese Language]

Independent Auditor's Report on the Consolidated Financial Statements

June 30, 2023

The Board of Directors of FUJIFILM Holdings Corporation

KPMG AZSA LLC
Tokyo Office, Japan

Takuji Kanai, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Tomoyasu Sugisaki, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Yusuke Matsumoto, Designated Limited Liability Partner, Engagement Partner, Certified Public Accountant

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of FUJIFILM Holdings Corporation ("the Company") and its consolidated subsidiaries (collectively referred to as "the Group") provided in the "Financial Information" section in the company's Annual Report, which comprise the consolidated balance sheet as at March 31, 2023 and the consolidated statement of income, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes to the consolidated financial statements, and supplementary schedules, in accordance with Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act of Japan.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2023, and its consolidated financial performance and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America pursuant to Paragraph 3 of the Supplementary Provisions of the Cabinet Office Ordinance for Partial Amendment of the Regulations for Terminology, Forms and Preparation Methods of Consolidated Financial Statements (the Cabinet Office Ordinance No.11 of 2002).

Basis for Opinion

Emphasis of Matter

As stated in Subsequent Events of Notes to Consolidated Financial Statements, the Company entered into a share purchase agreement on May 10, 2023 to acquire all shares of CMC Materials KMG Corporation. Our opinion is not qualified in respect of this matter.

Key Audit Matters

The Company's judgment as to whether an impairment loss should be recognized on the goodwill

The key audit matter	How the matter was addressed in our audit
In the consolidated balance sheet for the fiscal year ended March 31, 2023, FUJIFILM Holdings Corporation recognized goodwill of ¥858,311 million, which represented approximately 20.8% of total assets in the consolidated financial statements. As described Note 9, "Goodwill and Other Intangible Assets" to the consolidated financial statements, this amount is broken down into ¥338,387 million in the healthcare field, ¥273,805 million in the materials field, and ¥246,119 million in the business innovation field.	The primary audit procedures we performed to assess whether the Company's judgment with respect to the recognition of an impairment loss on goodwill was appropriate included the following:
As described in Note 2(10), "Goodwill and Other Intangible Assets" to the consolidated financial statements, for goodwill, the Company assesses whether it is impaired (impairment test) as of January 1 each year, in addition to when objective facts or changes in circumstances indicate that its fair value may fall below the carrying amount. The fair value is measured based on discounted present value of future cash flows.	(1) Internal control testing
Future cash flows are estimated based on the medium-term management plan approved by the Board of Directors. The medium-term management plan has been formulated to reflect not only the sales plan, which has been based on information by external research organizations on market growth rates, and the market environment by product category, but also the changes in manufacturing cost and selling, general and administrative on the basis of that plan.	We evaluated the effectiveness of design and operation of key internal controls related to estimate of fair value in impairment test of goodwill, especially focusing on controls related to estimate of future cash flows formulated by the medium-term management plan.
There are the following expectations under the medium-term management plan. In the healthcare field, business expansion is expected by continuing capital investments in the bio CDMO business and the life sciences business, which are expected to grow significantly in the medium- to long- term, while the medical systems business is also expected to drive sales growth.	(2) Assessment of the reasonableness of the estimated fair value
In the materials field, business growth is expected to accelerate through new business development with a medium- to long-term focus on highly functional materials.	To evaluate major assumptions in the formulation of the medium-term management plan underlying the estimate of future cash flows, we mainly performed the following audit procedures:
In the business innovation field, continual growth is expected to be realized through expanding new FUJIFILM brand products and their global sales, and developing the solutions and services strategies.	• We made inquiries to management as to grounds for major assumptions used in the formulation of the medium-term management plan and how risks were reflected in the medium-term management plan based on the market environment by product category, and inspected relevant documents.
The future sales forecasts for each field in the medium-term management plan involve high uncertainties in market growth in the healthcare field, soaring raw material costs and intensifying competition with competing companies in the materials field and decreasing demand for printing as remote work normalizes at client companies and the digitalization of work processes progress, and require significant judgments by management.	• As for market growth rates used for future sales forecasts in the medium-term management plan, we carefully examined the management's assumptions for each of the healthcare, materials and business innovation segments by checking consistency with data on forecasts of market growth released by external organizations.
In addition, selecting appropriate models and input data for estimating the discount rate used to calculate the fair value requires a high degree of expertise in valuation.	• Based on the results of our assessment of the appropriateness of major assumptions and the causes of the differences between the actual achievements and planned figures in the past business plans, we independently estimated future cash flows by incorporating certain uncertainties into the medium-term management plan and compared them with those estimated by management.
We, therefore, determined that our assessment of the appropriateness of the Company's judgment as to whether an impairment loss should be recognized on goodwill was the most significant in our audit of the consolidated financial statements for the current fiscal year, and accordingly, a key audit matter.	• We compared the total fair value of each reporting unit with the market capitalization of the Company.
	Furthermore, we performed the following procedures by engaging valuation specialists within our domestic network firms to assist our evaluation of the discount rate:
	• As for the calculation method for the discount rate, we assessed its appropriateness based on the inputs and requirements of the applicable accounting standards and others.
	• As for input data used to calculate the discount rate, we assessed the appropriateness by checking the input data against the data for each field that valuation specialists independently obtained.

Other Information

The other information comprises the information included in the Annual Report but does not include the consolidated financial statements, the non-consolidated financial statements, and our auditor's reports thereon. Management is responsible for the preparation and presentation of the other information. Corporate auditors and the board of corporate auditors are responsible for overseeing the directors' performance of their duties with regard to the design, implementation and maintenance of the reporting process for the other information.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for the Consolidated Financial Statements

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the audit process to perform the following:

•	Identify and assess the risks of material misstatement, whether due to fraud or error, design and perform audit procedures responsive to those risks. The procedures selected depend on our judgment, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, while the objective of the audit is not to express an opinion on the effectiveness of the Group's internal control.
•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
•	Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
•	Evaluate whether the presentation and disclosures in the consolidated financial statements are in accordance with accounting principles generally accepted in the United States of America, the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
•	Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

Interest in the Company

Our firm and its designated engagement partners do not have any interest in the Group which are required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

Notes to the reader of audit report:

FUJIFILM Holdings Corporation states that internal control over financial reporting was effective as at March 31, 2023 in the Internal Control Report.

Consolidated Balance Sheets

	March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Assets
Current assets:
Cash and cash equivalents (Note 4)	¥ 268,608	¥ 486,328	$ 2,004,537
Notes and accounts receivable:
Trade (Note 22)	608,645	570,851	4,542,127
Lease receivables (Notes 5 and 21)	40,038	45,573	298,791
Affiliated companies	2,561	2,354	19,112
Allowance for doubtful receivables (Notes 5 and 21)	(18,193)	(20,144)	(135,769)
Inventories (Note 7)	567,302	504,467	4,233,597
Prepaid expenses and other (Notes 18, 19, 20, 22 and 23)	162,146	135,300	1,210,045
Total current assets	1,631,107	1,724,729	12,172,440
Investments and long-term receivables:
Investments in and advances to affiliated companies (Note 8)	42,921	43,467	320,306
Investment securities (Notes 4 and 20)	70,745	105,329	527,948
Long-term lease receivables (Notes 5 and 21)	55,487	60,298	414,082
Other long-term receivables (Notes 18, 19, 20 and 21)	22,103	24,963	164,948
Allowance for doubtful receivables (Notes 5 and 21)	(2,351)	(3,010)	(17,545)
Total investments and long-term receivables	188,905	231,047	1,409,739
Property, plant and equipment (Notes 2 and 6):
Land	105,923	104,718	790,470
Buildings and structures	770,926	739,525	5,753,179
Machinery, equipment and other	1,505,008	1,497,457	11,231,403
Construction in progress	345,253	145,084	2,576,515
Subtotal	2,727,110	2,486,784	20,351,567
Less accumulated depreciation	(1,750,999)	(1,749,945)	(13,067,157)
Total property, plant and equipment	976,111	736,839	7,284,410
Other assets:
Operating lease right-of-use assets (Note 6)	82,276	83,389	614,000
Goodwill, net (Note 9)	858,311	824,003	6,405,306
Other intangible assets, net (Note 9)	144,258	152,691	1,076,552
Deferred income taxes (Note 12)	30,125	24,210	224,813
Other (Notes 2, 9, 11 and 22)	223,218	178,372	1,665,807
Total other assets	1,338,188	1,262,665	9,986,478
Total assets	¥4,134,311	¥3,955,280	$30,853,067

See notes to consolidated financial statements.

	March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Liabilities and equity
Current liabilities:
Short-term debt (Notes 6, 10 and 19)	¥ 106,093	¥ 200,095	$ 791,739
Notes and accounts payable:
Trade	246,093	249,919	1,836,515
Construction	72,713	51,868	542,634
Affiliated companies	1,603	1,396	11,963
Accrued income taxes (Note 12)	39,214	21,453	292,642
Accrued liabilities (Note 11)	234,809	226,830	1,752,306
Short-term operating lease liabilities (Note 6)	31,031	31,494	231,574
Other current liabilities (Notes 18, 19, 20, 22 and 23)	158,766	196,520	1,184,821
Total current liabilities	890,322	979,575	6,644,194
Non-current liabilities:
Long-term debt (Notes 6, 10 and 19)	270,060	247,101	2,015,373
Accrued pension and severance costs (Note 11)	21,909	27,927	163,500
Long-term operating lease liabilities (Note 6)	55,400	56,866	413,433
Deferred income taxes (Note 12)	49,150	54,035	366,791
Other non-current liabilities (Notes 12, 18, 19 and 20)	59,610	64,836	444,851
Total non-current liabilities	456,129	450,765	3,403,948
Total liabilities	1,346,451	1,430,340	10,048,142
Commitments and contingent liabilities (Note 15)
Equity (Note 13):
FUJIFILM Holdings shareholders' equity:
Common stock, without par value:
Authorized: 800,000,000 shares
Issued: 414,625,728 shares	40,363	40,363	301,216
Retained earnings	2,616,191	2,867,848	19,523,814
Accumulated other comprehensive income (Notes 2, 11, 14 and 18)	163,820	75,993	1,222,537
Treasury stock, at cost (13,528,181 shares in 2023; 113,834,546 shares in 2022)	(57,229)	(481,547)	(427,082)
Total FUJIFILM Holdings shareholders' equity	2,763,145	2,502,657	20,620,485
Noncontrolling interests	24,715	22,283	184,440
Total equity	2,787,860	2,524,940	20,804,925
Total liabilities and equity	¥4,134,311	¥3,955,280	$30,853,067

See notes to consolidated financial statements.

Consolidated Statements of Income

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Revenue (Notes 2, 5, 22 and 24)	¥2,859,041	¥2,525,773	$21,336,127
Cost of sales (Notes 6)	1,721,113	1,492,549	12,844,127
Gross profit	1,137,928	1,033,224	8,492,000
Operating expenses:
Selling, general and administrative (Notes 2, 6, 9, 17 and 20)	710,702	652,995	5,303,746
Research and development	154,147	150,527	1,150,351
	864,849	803,522	6,454,097
Operating income (Note 24)	273,079	229,702	2,037,903
Other income (expenses):
Interest and dividend income	7,670	4,646	57,239
Interest expense (Notes 14 and 18)	(5,006)	(2,316)	(37,358)
Foreign exchange gains (losses), net (Notes 14 and 18)	(3,563)	4,437	(26,590)
Gains (losses) on equity securities, net (Notes 4 and 14)	(662)	4,453	(4,940)
Other, net (Notes 14, 18 and 20)	10,706	19,524	79,895
	9,145	30,744	68,246
Income before income taxes	282,224	260,446	2,106,149
Income taxes (Note 12):
Current	79,168	48,615	590,806
Deferred	(13,962)	8,514	(104,194)
	65,206	57,129	486,612
Equity in net income (loss) of affiliated companies	4,656	13,128	34,747
Net income	221,674	216,445	1,654,284
Less: Net income attributable to noncontrolling interests	(2,252)	(5,265)	(16,806)
Net income attributable to FUJIFILM Holdings	¥ 219,422	¥ 211,180	$ 1,637,478
	(Yen)		(U.S. dollars)
			(Note 3)
Amounts per share of common stock:
Net income attributable to FUJIFILM Holdings (Note 16):
Basic	¥547.21	¥527.33	$4.08
Diluted	546.41	526.11	4.08
Cash dividends declared	130.00	110.00	0.97

See notes to consolidated financial statements.

Consolidated Statements of Comprehensive Income

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Net income	¥221,674	¥216,445	$1,654,284
Other comprehensive income (loss), net of tax (Note 14):
Net unrealized gains (losses) on securities	(27)	26	(202)
Foreign currency translation adjustments	85,528	117,466	638,269
Pension liability adjustments	2,801	13,381	20,903
Net unrealized gains (losses) on derivatives	74	(182)	552
Total	88,376	130,691	659,522
Comprehensive income	310,050	347,136	2,313,806
Less: Comprehensive income attributable to noncontrolling interests	(2,801)	(7,127)	(20,903)
Comprehensive income attributable to FUJIFILM Holdings	¥307,249	¥340,009	$2,292,903

See notes to consolidated financial statements.

Consolidated Statements of Changes in Equity

	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock	FUJIFILM Holdings shareholders' equity	Noncontrolling interests	Total equity
	(Millions of yen)
Balance as of April 1, 2021	¥40,363	¥	¥2,702,760	¥(52,836)	¥(485,721)	¥2,204,566	¥17,591	¥2,222,157
Comprehensive income (loss):
Net income	-	-	211,180	-	-	211,180	5,265	216,445
Net unrealized gains (losses) on securities (Note 14)	-	-	-	26	-	26	-	26
Foreign currency translation adjustments (Note 14)	-	-	-	115,727	-	115,727	1,739	117,466
Pension liability adjustments (Note 14)	-	-	-	13,258	-	13,258	123	13,381
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	(182)	-	(182)	-	(182)
Comprehensive income						340,009	7.127	347,136
Purchases of treasury stock	-	-	-	-	(32)	(32)	-	(32)
Sales of treasury stock	-	-	(42)	-	4,206	4,164	-	4,164
Dividends paid to FUJIFILM Holdings shareholders	-	-	(44,086)	-	-	(44,086)	-	(44,086)
Dividends paid to noncontrolling interests	-	-	-	-	-	-	(783)	(783)
Share-based payment transactions	-	(1,922)	-	-	-	(1,922)	-	(1,922)
Transfer from retained earnings to additional paid-in capital	-	1,964	(1,964)	-	-	-	-	-
Equity transactions with noncontrolling interests and other	-	(42)	-	-	-	(42)	(1,652)	(1,694)
Balance as of March 31, 2022	¥40,363	¥ -	¥2,867,848	¥75,993	¥(481,547)	¥2,502,657	¥22,283	¥2,524,940
Balance as of March 31, Comprehensive income (loss):
Net income	-	-	219,422	-	-	219,422	2,252	221,674
Net unrealized gains (losses) on securities (Note 14)	-	-	-	(27)	-	(27)	-	(27)
Foreign currency translation adjustments (Note 14)	-	-	-	84,193	-	84,193	1,335	85,528
Pension liability adjustments (Note 14)	-	-	-	3,587	-	3,587	(786)	2,801
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	74	-	74	-	74
Comprehensive income						307,249	2,801	310,050
Purchases of treasury stock	-	-	-	-	(20)	(20)	-	(20)
Sales of treasury stock	-	317	-	-	1,308	1,625	-	1,625
Retirement of treasury stock	-	(423,030)	-	-	423,030	-	-	-
Dividends paid to FUJIFILM Holdings shareholders	-	-	(48,131)	-	-	(48,131)	-	(48,131)
Dividends paid to noncontrolling interests	-	-	-	-	-	-	(382)	(382)
Share-based payment transactions	-	(235)	-	-	-	(235)	-	(235)
Transfer from retained earnings to additional paid-in capital	-	422,948	(422,948)	-	-	-	-	-
Equity transactions with noncontrolling interests and other	-	-	-	-	-	-	13	13
Balance as of March 31, 2023	¥40,363	¥ -	¥2,616,191	¥163,820	¥(57,229)	¥2,763,145	¥24,715	¥2,787,860

See notes to consolidated financial statements.

	Common stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Treasury stock	FUJIFILM Holdings shareholders' equity	Noncontrolling interests	Total equity
	(Thousands of U.S. dollars)
	(Note 3)
Balance as of March 31, 2022	$301,216	$	$21,401,851	$567,112	$(3,593,634)	$18,676,545	$166,291	$18,842,836
Comnrehensive income (loss):
Net income	-	-	1,637,478	-	-	1,637,478	16,806	1,654,284
Net unrealized gains (losses) on securities (Note 14)	-	-	-	(202)	-	(202)	-	(202)
Foreign currency translation adjustments (Note 14)	-	-	-	628,306	-	628,306	9,963	638,269
Pension liability adjustments (Note 14)	-	-	-	26,769	-	26,769	(5,866)	20,903
Net unrealized gains (losses) on derivatives (Notes 14 and 18)	-	-	-	552	-	552	-	552
Comprehensive income						2,292,903	20,903	2,313,806
Purchases of treasury stock	-	-	-	-	(149)	(149)	-	(149)
Sales of treasury stock	-	2,366	-	-	9,761	12,127	-	12.127
Retirement of treasury stock	-	(3,156,940)	-	-	3,156,940	-	-	-
Dividends paid to FUJIFILM Holdings shareholders	-	-	(359,187)	-	-	(359,187)	-	(359,187)
Dividends paid to noncontrolling interests	-	-	-	-	-	-	(2,851)	(2,851)
Share-based payment transactions	-	(1,754)	-	-	-	(1,754)	-	(1,754)
Transfer from retained earnings to additional paid-in capital	-	3,156,328	(3,156,328)	-	-	-	-	-
Equity transactions with noncontrolling interests and other	-	-	-	-	-	-	97	97
Balance as of March 31, 2023	$301,216	$ -	$19,523,814	$ 1,222,537	$(427,082)	$20,620,485	$184,440	$20,804,925

See notes to consolidated financial statements.

Consolidated Statements of Cash Flows

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Operating activities
Net income	¥ 221,674	¥ 216,445	$ 1,654,284
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	142,215	132,999	1,061,306
(Gains) losses on equity securities, net	662	(4,453)	4,940
Deferred income taxes	(13,962)	8,514	(104,194)
Equity in net (gains) losses of affiliated companies, net of dividends received	(3,994)	(12,194)	(29,806)
Changes in operating assets and liabilities:
(Increase) decrease in notes and accounts receivable	(17,052)	34,741	(127,254)
Increase in inventories	(51,545)	(68,273)	(384,664)
Increase (decrease) in notes and accounts payable - trade	(9,221)	21,007	(68,813)
Increase in prepaid expenses and other current assets	(14,349)	(30,766)	(107,082)
Increase (decrease) in accrued income taxes and other liabilities	(51,712)	28,794	(385,911)
Other	7,736	(2,880)	57,731
Net cash provided by operating activities	210,452	323,934	1,570,537
Investing activities
Purchases of property, plant and equipment	(269,844)	(126,054)	(2,013,761)
Purchases of software	(53,628)	(39,853)	(400,209)
Proceeds from sales and maturities of investment securities	38,890	15,119	290,224
Purchases of investment securities	(3,880)	(2,860)	(28,955)
(Increase) decrease in time deposits, net	2,711	(4,959)	20,231
Increase in investments in and advances to affiliated companies	(853)	(459)	(6,366)
Acquisitions of businesses, net of cash and cash equivalents acquired	(28,653)	(10,714)	(213,828)
Proceeds from sale of businesses, net of cash and cash equivalents disposed of	-	24,480	-
Other	(7,968)	(8,242)	(59,463)
Net cash used in investing activities	(323,225)	(153,542)	(2,412,127)
Financing activities
Proceeds from long-term debt	120,000	2,079	895,522
Repayments of long-term debt	(192,360)	(61,929)	(1,435,522)
Increase (decrease) in short-term debt with maturities of three months or less, net	(1,538)	2,364	(11,478)
Cash dividends paid to shareholders	(46,109)	(43,032)	(344,097)
Cash dividends paid to noncontrolling interests	(382)	(783)	(2,851)
Net purchases and sales of stock for treasury	(20)	(31)	(149)
Equity transactions with noncontrolling interests and other	(3,286)	(3,852)	(24,522)
Net cash used in financing activities	(123,695)	(105,184)	(923,097)
Effect of exchange rate changes on cash and cash equivalents	18,748	26,325	139,911
Net increase (decrease) in cash and cash equivalents	(217,720)	91,533	(1,624,776)
Cash and cash equivalents at beginning of year	486,328	394,795	3,629,313
Cash and cash equivalents at end of year	¥ 268,608	¥486,328	$ 2,004,537
Supplemental disclosures
Cash paid for interest	¥ 5,093	¥ 2,519	$ 38,007
Cash paid for income taxes	¥75,205	¥61,780	$561,231

See notes to consolidated financial statements.

Notes to Consolidated Financial Statements March 31, 2023

1. Nature of Operations

FUJIFILM Holdings Corporation (the "Company") is engaged in healthcare, materials, business innovation, and imaging businesses. The Healthcare segment develops, manufactures, sells and provides services of equipment and materials for medical systems, contract development and manufacturing organization of biopharmaceuticals, iPS cells (regenerative medicine), drug discovery support such as cell culture media and reagents, pharmaceuticals, cosmetics and supplements, and other related products. The Materials segment develops, manufactures, sells and provides services of electronic materials, display materials, industrial equipment, fine chemicals, recording media, equipment and materials for graphic communication, inks and industrial inkjet printheads, and other related products. The Business Innovation segment develops, manufactures, sells and provides services of digital MFPs, solutions and services, and other related products. The Imaging segment develops, manufactures, sells and provides services of instant photo systems, color films, services and equipment for photofinishing, digital cameras, optical devices, and other related products. The Company operates throughout the world, and the overseas revenue consists of approximately 64% of the Company's total revenue, predominantly in North America, Europe and Asia. The Company's principal manufacturing operations are located in Japan, the United States, China, the Netherlands and Vietnam.

2. Summary of Significant Accounting Policies

The main differences between the principles and procedures of the presentation methodology between the generally accepted accounting principles in Japan and US GAAP are summarized as follows:

(1)	In accordance with ASC 715, net periodic benefit costs are recorded based on actuarial calculations. Using the corridor approach, actuarial gains and losses are amortized over the average remaining years of service of the employee.
(2)	In accordance with ASC 350, goodwill and other indefinite lived intangible assets are not amortized. Instead, they are tested annually for impairment and impaired if necessary.
(3)	In accordance with ASC 842, operating lease right-of-use assets and liabilities are recorded using the present value of the lease payments over the lease term. A lease cost is recognized on a straight-line basis over the lease term.

Principles of Consolidation and Accounting for Investments in Affiliated Companies

Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make assumptions and estimates that affect the amounts reported in the financial statements and notes.

Significant items subject to such assumptions and estimates include the valuation of notes and accounts receivable, inventories, investment securities and deferred income tax assets; the valuation (including impairment) for property, plant and equipment, goodwill and intangible assets; asset retirement obligations; determination of useful lives and depreciation or amortization method; uncertain tax positions; assumptions related to the estimation of actuarially determined employee benefit obligations and accruals; or contingent liabilities for environmental remediation, litigation and regulatory investigations. Actual results could differ from those estimates. The Company does not record asset retirement obligations, in cases when assets are not expected to be dismantled, and it is not possible to reasonably estimate expenses borne by the Company.

The Company performs accounting estimates based on the assumption that the future impact of COVID-19 on the Company's results of operations is limited. Any changes in the above assumptions may have an impact on the Company's financial position and results of operations.

Foreign Currency Translations

The Company's foreign subsidiaries generally use the local currency as their functional currency. Accordingly, assets and liabilities are translated into the reporting currency using exchange rates prevailing at the balance sheet date and income and expenses are translated using average exchange rates prevailing during the year. Gains and losses resulting from translation are included and presented in "Accumulated other comprehensive income", a separate component of equity, as foreign currency translation adjustments.

Cash Equivalents

The Company considers all highly liquid investments which are readily convertible into cash and that have original maturities of three months or less to be cash equivalents.

Certain debt securities with original maturities of three months or less are included and presented in "Cash and cash equivalents" in the consolidated balance sheets and the consolidated statements of cash flows.

Investment Securities

Allowance for Doubtful Receivables

Inventories

Property, Plant and Equipment and Depreciation

Property, plant and equipment are carried at cost. Depreciation is computed primarily using the straight-line method.

Estimated useful lives for buildings and structures are primarily 15 to 50 years and for machinery, equipment and other are 2 to 15 years.

Machinery, equipment and other includes machines rented to customers under operating leases with a cost and accumulated depreciation of ¥146,344 million ($1,092,119 thousand) and ¥91,374 million ($681,896 thousand) as of March 31, 2023 and ¥115,618 million and ¥70,810 million as of March 31, 2022, respectively.

Net gains on sales of property, plant and equipment were ¥8,653 million ($64,575 thousand) and ¥2,241 million for the years ended March 31, 2023 and 2022, respectively.

Leases

As for lessor accounting, the Company provides leasing arrangements primarily for the sales of printing and copying machines and other office equipment. At the inception date of each contract, the Company determines whether a contract is, or contains, a lease. Sales-type lease and operating lease income is recorded, and included and presented in "Revenue" in the consolidated statements of income. Revenue from the sales of equipment under sales-type leases is recognized at the commencement of leases. Interest income equivalent on the salestype leases is recognized using the effective interest method with the allocation based on the net investment in outstanding leases. Leases not qualifying as sales-type leases are accounted for as operating leases and related revenue is recognized ratably over the respective lease term. For contracts bundling equipment leases with maintenance and other services, the Company has applied the practical expedients permitted under ASC 842 and these contracts are all accounted for as lease components in accordance with ASC 842. Normally, these contracts combine the minimum usage fees and variable charges according to print runs. Some of the contracts include options to terminate the lease before the end of the lease term by giving notice to the lessor before a certain period.

As for lessee accounting, the Company has finance and operating leases primarily for assets including office buildings and vehicles. At the inception date of each contract, the Company determines whether a contract is, or contains, a lease, and recognizes right-of-use assets and lease liabilities on the commencement date of the lease. Some of the lease contracts include options to extend the lease term or terminate the lease. The Company takes into accounts the respective period of such options to determine the lease term when it is reasonably certain that it will exercise these options. The Company has lease contracts with lease and non-lease components, which are normally accounted for separately. Since most of the Company's leases do not provide a rate implicit, the Company normally uses incremental borrowing rate based on the information available at the lease commencement to determine the present value of total lease payments. For short-term leases with a lease term of 12 months or less, the Company elects not to recognize right-of-use assets and lease liabilities. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

Goodwill and Other Intangible Assets

Intangible assets other than those with an indefinite life are amortized on a straight-line basis over their estimated useful lives.

Capitalized Software Costs

The Company capitalizes certain costs incurred in connection with developing and obtaining internal use software in accordance with ASC 350-40. These costs consist primarily of payments made to third parties and salaries of employees working on such software development. In connection with developing internal use software, costs incurred at the application development stage or later are capitalized. In addition, the Company develops or obtains certain software to be sold, leased, or otherwise marketed where related costs incurred after establishment of technological feasibility are capitalized in accordance with ASC 985. Capitalized costs are amortized on a straight-line basis over the estimated useful lives of the software of 3 to 5 years. Costs and accumulated amortization of total capitalized software amounted to ¥219,099 million ($1,635,067 thousand) and ¥104,355 million ($778,769 thousand), respectively, as of March 31, 2023 and ¥180,202 million and ¥96,438 million, respectively, as of March 31, 2022. Costs and accumulated amortization of capitalized software to be sold, included in the above, amounted to ¥38,745 million ($289,142 thousand) and ¥24,997 million ($186,545 thousand), respectively, as of March 31, 2023 and ¥37,248 million and ¥23,636 million, respectively, as of March 31, 2022. Capitalized software costs are included in "Other" of "Other assets" in the consolidated balance sheets.

Impairment of Long-lived Assets

Long-lived assets to be disposed of by sale are recorded at the lower of carrying amount or fair value less cost to sell.

Revenue Recognition

Step 1: Identify the contract

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations

Step 5: Recognize revenue when (or as) performance obligations are satisfied

Product Warranties

Shipping and Handling Costs

Shipping and handling costs are included in "Selling, general and administrative" in the consolidated statements of income. Shipping and handling costs amounted to ¥86,132 million ($642,776 thousand) and ¥77,208 million for the years ended March 31, 2023 and 2022, respectively.

Advertising Costs

Advertising costs are expensed as incurred and included in "Selling, general and administrative" in the consolidated statements of income. Advertising costs amounted to ¥24,678 million ($184,164 thousand) and ¥22,241 million for the years ended March 31, 2023 and 2022, respectively.

Income Taxes

Income taxes have been provided using the asset and liability method in accordance with ASC 740.

Consumption Taxes

Revenues, costs and expenses in the consolidated statements of income do not include consumption taxes.

Derivative Financial Instruments

The Company recognizes all derivative financial instruments, such as forward foreign exchange contracts, currency swaps, cross currency interest rate swaps and interest rate swaps in the consolidated financial statements at fair value regardless of the purpose or intent for holding the instrument. Generally, changes in fair values of derivatives accounted for as fair value hedges are recorded in earnings along with the portions of the changes in the fair values of the hedged items that relate to the hedged risks. Changes in fair values of derivatives accounted for as cash flow hedges, to the extent they are effective as hedges, are recorded in accumulated other comprehensive income, net of deferred taxes and reclassified to earnings in the period when the gain or loss associated with the hedged item was recorded. Changes in fair values of derivatives, which are not designated or qualified as hedges, are reported in earnings, immediately.

Net Income Attributable to FUJIFILM Holdings per Share

Basic net income attributable to FUJIFILM Holdings per share is calculated based on the weighted average number of shares of common stock outstanding during the year. Diluted net income attributable to FUJIFILM Holdings per share is adjusted for the effect of dilutive common stocks to be additionally issued when stock options are exercised.

Share-Based Remuneration

The Company measures and recognizes share-based compensation cost based on fair value on the grant date and monetary-based compensation cost based on fair value at the end of year, in accordance with ASC 718.

Subsequent Events

The Company evaluated all subsequent events through June 30, 2023, the date on which the consolidated financial statements are available to be issued in accordance with ASC 855.

Reclassifications

Certain reclassifications to the prior year's consolidated financial statements have been made to conform with current year presentation.

Accounting Standards Adopted in the Year Ended March 31, 2023

In November 2021, FASB issued ASU No. 2021-10, "Disclosures by Business Entities about Government Assistance" ("ASU 2021-10"). Since guidance on government assistance received by business entities is not included in US GAAP, ASU 2021-10 requires business entities to disclose nature of the transactions, accounting policies used to account for the transactions, line items on the balance sheet and income statement affected by the transactions and the amounts applicable to each financial statement line item, significant terms and conditions of transactions with a government in the annual financial statements when they use a grant or contribution accounting model by analogy to other accounting guidance (e.g., IAS 20). ASU 2021-10 is effective for annual reporting periods beginning after December 15, 2021, and earlier adoption is permitted. The Company has adopted ASU 2021-10 from the year beginning April 1, 2022. There is no material impact that the adoption of ASU 2021-10 has on the Company's disclosure.

New Accounting Standards to be Adopted

In June 2016, FASB issued Accounting Standard Update ("ASU") No. 2016-13, "Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 requires the use of the expected credit loss model instead of the incurred loss impairment model when assessing the impairment of financial instruments. In the expected credit loss model, an estimate of uncollectible contractual cash flow is recorded as an allowance. ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2022, including interim periods within that reporting period, and earlier adoption is permitted. The Company will adopt ASU 2016-13 in the year beginning April 1, 2023. The Company will adopt ASU 2016-13 by using the method of adjusting the cumulative effect at the beginning of the initial year of adoption. There will be no material impact that the adoption of ASU 2016-13 has on the Company's financial position and results of operations.

3. U.S. Dollar Amounts

Solely for the convenience of the reader and as a matter of arithmetical computation only, the 2023 amounts in the consolidated financial statements have been translated from Japanese yen into U.S. dollars at the rate of ¥134 = U.S.$1.00, the approximate exchange rate prevailing on March 31, 2023. The amounts shown in U.S. dollars are not intended to be computed in accordance with US GAAP for the translation of foreign currency amounts. The translation should not be construed as a representation that Japanese yen could be converted into U.S. dollars at this or any other rate.

4. Investments in Debt and Equity Securities

The cost, gross unrealized gains, gross unrealized losses and estimated fair value of the debt securities categorized as available-for-sale by security type as of March 31, 2023 and 2022 are summarized as follows. Certain debt securities with original maturities of three months or less are included and presented in "Cash and cash equivalents" in the consolidated balance sheets. There are no such securities as of March 31, 2023 and 2022.

	2023
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Millions of yen)
Investment securities:
Corporate bonds	¥-	¥-	¥-	¥-
Total	¥-	¥-	¥-	¥-

	2022
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Millions of yen)
Investment securities:
Corporate bonds	¥460	¥39	¥-	¥499
Total	¥460	¥39	¥-	¥499

	2023
	Cost	Gross unrealized gains	Gross unrealized losses	Estimated fair value
	(Thousands of U.S. dollars)
	(Note 3)
Investment securities:
Corporate bonds	$-	$-	$-	$-
Total	$-	$-	$-	$-

Realized and unrealized gains or losses of equity securities included in "Investment securities" on the consolidated balance sheets as of March 31, 2023 and 2022 are summarized as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Total gains (losses) of equity securities	¥ (662)	¥4,453	$ (4,940)
Less: Realized gains (losses) on equity securities sold during the period	(6,709)	3,839	(50,067)
Unrealized gains (losses) on equity securities held at end of year	¥(7,371)	¥8,292	$(55,007)

Certain non-marketable equity securities without readily determinable fair value are measured at cost, minus impairment, if any, in principle. If an entity identifies observable price changes in orderly transactions for the identical or similar investment of the same issuer, it shall measure the equity security at fair value as of the date that the observable transaction occurred. The carrying amounts of these investments were ¥10,546 million ($78,701 thousand) and ¥10,690 million as of March 31, 2023 and 2022, respectively. The Company did not record significant impairment or other adjustments for the years ended March 31, 2023 and 2022.

5. Lease Accounting for Lessor

Lease income information as lessor for the years ended March 31, 2023 and 2022 is as follows. Lease income is included and presented in "Revenue" in the consolidated statements of income.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Sales-type lease income
Income (loss) recognized on the commencement date	¥14,894	¥13,733	$111,149
Interest income from lease receivables	7,766	8,050	57,955
Total	22,660	21,783	169,104
Operating lease income	18,660	21,375	139,254
Variable lease income	47,209	31,849	352,306

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Lease receivables, gross	¥105,403	¥118,643	$786,590
Unearned income	(9,878)	(12,772)	(73,717)
Allowance for doubtful receivables	(4,965)	(7,240)	(37,052)
Lease receivables, net	¥ 90,560	¥ 98,631	$675,821

The minimum lease payments receivable under the sales-type leases and operating leases for the next five years and thereafter as of March 31, 2023 are summarized as follows:

	Sales-type leases	Operating leases
	(Millions of yen)
Year ending March 31
2024	¥ 44,214	¥13,471
2025	28,651	9,581
2026	18,975	5,104
2027	9,614	3,278
2028	3,547	2,444
2029 and thereafter	402	8,457
Total minimum lease payments receivable	¥105,403	¥42,335

	Sales-type leases	Operating leases
	(Thousands of U.S. dollars)
	(Note 3)
Year ending March 31
2024	$329,955	$100,530
2025	213,814	71,500
2026	141,605	38,089
2027	71,746	24,463
2028	26,470	18,239
2029 and thereafter	3,000	63,112
Total minimum lease payments receivable	$786,590	$315,933

6. Lease Accounting for Lessee

Consolidated statements of income information related to leases is as follows. Lease cost is primarily included in "Cost of sales" and "Selling, general and administrative" in the consolidated statements of income.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Operating lease cost	¥ 35,809	¥34,598	$ 267,231
Short-term lease cost	3,376	3,628	25,194

Supplemental balance sheet information related to leases is as follows.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Finance lease right-of-use assets
Property, plant and equipment (cost)	¥9,239	¥ 9,545	$ 68,948
Accumulated depreciation	(4,505)	(4,467)	(33,620)
Property, plant and equipment (carrying amount)	4,734	5,078	35,328
Finance lease liabilities
Short-term debt	2,023	2,112	15,097
Long-term debt	6,551	6,516	48,888
Total finance lease liabilities	8,574	8,628	63,985

Operating cash flows from operating leases for the years ended March 31, 2023 and 2022 amounted to ¥36,578 million ($272,970 thousand) and ¥35,114 million, respectively. Operating lease right-of-use assets acquired in exchange for lease liabilities amounted to ¥31,811 million ($237,396 thousand) and ¥36,778 million for the years ended March 31, 2023 and 2022, respectively.

Other information related to leases is as follows.

	2023	2022
Weighted average remaining lease term
Finance leases	7 years	7 years
Operating leases	5 years	4 years
Weighted average discount rate
Finance leases	2.20%	2.15%
Operating leases	0.81%	0.46%

Future minimum lease payments payable under finance leases and operating leases by year as of March 31, 2023 are summarized as follows:

	Finance leases	Operating leases
	(Millions of yen)
Year ending March 31
2024	¥2,188	¥ 31,027
2025	1,840	21,993
2026	1,432	11,153
2027	1,033	7,404
2028	692	3,886
2029 and thereafter	2,841	11,265
Total lease payments	10,026	86,728
Less: Imputed interest	(1,452)	(297)
Total	¥ 8,574	¥ 86,431

	Finance leases	Operating leases
	(Thousands of U.S. dollars)
	(Note 3)
Year ending March 31
2024	$ 16,328	$ 231,545
2025	13,731	164,127
2026	10,687	83,231
2027	7,709	55,254
2028	5,164	29,000
2029 and thereafter	21,202	84,067
Total lease payments	74,821	647,224
Less: Imputed interest	(10,836)	(2,217)
Total	$ 63,985	$ 645,007

7. Inventories

Inventories as of March 31, 2023 and 2022 consisted of the following:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Finished goods	¥285,253	¥255,392	$2,128,754
Work in process	66,806	58,036	498,552
Raw materials and supplies	215,243	191,039	1,606,291
Total	¥567,302	¥504,467	$4,233,597

8. Investments in Affiliated Companies

Investments in affiliated companies accounted for by the equity method amounted to ¥21,202 million ($158,224 thousand) and ¥23,460 million as of March 31, 2023 and 2022, respectively. The difference between the carrying amounts of the investments in affiliated companies and the Company's equity in the underlying net assets of such affiliated companies was not material. These affiliated companies primarily operate businesses in the Healthcare, Materials, Business Innovation, and Imaging segments.

Some affiliated companies are listed on the stock market. The carrying amounts and market values of these affiliated companies as of March 31, 2023 were ¥7,310 million ($54,552 thousand) and ¥7,383 million ($55,097 thousand), respectively. As of March 31, 2022, they amounted to ¥8,174 million and ¥8,782 million, respectively.

The combined financial position of the Company's affiliated companies accounted for by the equity method as of March 31, 2023 and 2022 are summarized as follows. There were no individually material affiliated companies for the years ended March 31, 2023 and 2022.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Current assets	¥ 89,415	¥ 95,942	$ 667,276
Non-current assets	69,831	64,100	521,127
Total assets	¥159,246	¥160,042	$1,188,403
Current liabilities	¥ 36,414	¥ 34,163	$ 271,746
Non-current liabilities	67,118	75,090	500,881
Equity	55,714	50,789	415,776
Total liabilities and equity	¥159,246	¥160,042	$1,188,403

The combined results of operations of the Company's affiliated companies accounted for by the equity method for the years ended March 31, 2023 and 2022 are summarized as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Revenue	¥132,470	¥129,593	$988,582
Net income	10,721	19,241	80,007

Transactions with affiliated companies for the years ended March 31, 2023 and 2022 are summarized as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Revenue	¥21,097	¥13,644	$157,440
Purchases	5,809	6,078	43,351
Dividends received	662	934	4,940

9. Goodwill and Other Intangible Assets

The changes in goodwill by operating segment for the years ended March 31, 2023 and 2022 are as follows.

	Healthcare	Materials	Business Innovation	Total
	(Millions of yen)
As of April 1, 2021	¥332,521	¥250,831	¥220,847	¥804,199
Acquired	10,670	-	2,064	12,734
Other	(13,813)	11,390	9,493	7,070
As of March 31, 2022	¥329,378	¥262,221	¥232,404	¥824,003
Acquired	5,107	-	11,834	16,941
Other	3,902	11,584	1,881	17,367
As of March 31, 2023	¥338,387	¥273,805	¥246,119	¥858,311

	Healthcare	Materials	Business Innovation	Total
	(Thousands of U.S. dollars)
	(Note 3)
As of March 31, 2022	$2,458,045	$1,956,873	$1,734,358	$6,149,276
Acquired	38,112	-	88,314	126,426
Other	29,119	86,448	14,037	129,604
As of March 31, 2023	$2,525,276	$2,043,321	$1,836,709	$6,405,306

Other includes a decrease resulting from sales, foreign currency translation adjustments, a reclassification to assets held for sale, and adjustments for allocation of purchase price related to acquisitions.

Information for the year ended March 31, 2022 was prepared using the classification method after changes to the operating segments. The summary of the changes is described in Note 24 "Segment Information".

There was no goodwill recognized in the Imaging segment for the years ended March 31, 2023 and 2022.

Other intangible assets subject to amortization as of March 31, 2023 and 2022 are as follows:

	2023
	Gross carrying amount	Accumulated amortization	Net carrying amount
	(Millions of yen)
Technology-based	¥ 60,288	¥35,434	¥ 24,854
Customer-related	147,808	46,260	101,548
Other	30,182	16,736	13,446
Total	¥238,278	¥98,430	¥139,848

	2022
	Gross carrying amount	Accumulated amortization	Net carrying amount
	(Millions of yen)
Technology-based	¥ 76,770	¥49,530	¥ 27,240
Customer-related	142,044	35,244	106,800
Other	27,833	13,518	14,315
Total	¥246,647	¥98,292	¥148,355

	2023
	Gross carrying amount	Accumulated amortization	Net carrying amount
	(Thousands of U.S. dollars)
	(Note 3)
Technology-based	$ 449,910	$264,432	$ 185,478
Customer-related	1,103,045	345,224	757,821
Other	225,239	124,896	100,343
Total	$1,778,194	$734,552	$1,043,642

The aggregate amortization expenses for other intangible assets for the years ended March 31, 2023 and 2022 were ¥15,940 million ($118,955 thousand) and ¥15,132 million, respectively.

Other intangible assets not subjected to amortization were not material as of March 31, 2023 and 2022.

The estimated aggregate amortization expenses for other intangible assets subject to amortization for the next five years are as follows:

	(Millions of yen)	(Thousands of U.S. dollars)
		(Note 3)
Year ending March 31
2024	¥15,404	$114,955
2025	15,345	114,515
2026	13,662	101,955
2027	12,664	94,507
2028	10,693	79,799

10. Short-term and Long-term Debt

Short-term debt

Short-term debt as of March 31, 2023 and 2022 were ¥5,927 million ($44,231 thousand) and ¥7,883 million, respectively, and the weighted average interest rates per annum on short-term debt outstanding as of March 31, 2023 and 2022 were 2.89% and 7.46%, respectively. Shortterm debt is unsecured.

Short-term debt as of March 31, 2023 and 2022 consisted of the following:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Short-term debt	¥ 5,927	¥ 7,883	$ 44,231
Current portion of long-term debt	100,166	192,212	747,508
Total	¥106,093	¥200,095	$791,739

Long-term debt

Long-term debt as of March 31, 2023 and 2022 consisted of the following:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Unsecured loans, principally from banks and insurance companies:
Due from the year ending March 31, 2024 to the year ending March 31, 2028 with interest rates ranging from (0.591)% to 4.000% as of March 31, 2023	¥81,652	¥110,685	$609,343
Due from the year ended March 31, 2023 to the year ending March 31, 2028 with interest rates ranging from (0.591)% to 4.000% as of March 31, 2022

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Unsecured Japanese yen bonds:
0.020% yen bonds, due the year ended March 31, 2023	¥ -	¥ 20,000	$ -
0.882% yen bonds, due the year ended March 31, 2023	-	40,000	-
0.060% yen bonds, due the year ended March 31, 2023	-	100,000	-
0.110% yen bonds, due the year ending March 31, 2024	35,000	35,000	261,195
0.180% yen bonds, due the year ending March 31, 2024	10,000	10,000	74,627
0.080% yen bonds, due the year ending March 31, 2025	30,000	30,000	223,881
0.120% yen bonds, due the year ending March 31, 2025	50,000	50,000	373,134
0.100% yen bonds, due the year ending March 31, 2026	40,000	-	298,507
0.240% yen bonds, due the year ending March 31, 2026	25,000	25,000	186,567
0.250% yen bonds, due the year ending March 31, 2027	10,000	10,000	74,627
0.195% yen bonds, due the year ending March 31, 2028	40,000	-	298,507
0.304% yen bonds, due the year ending March 31, 2030	20,000	-	149,254
0.374% yen bonds, due the year ending March 31, 2033	20,000	-	149,254
Other	8,574	8,628	63,985
	370,226	439,313	2,762,881
Less: Portion due within one year	(100,166)	(192,212)	(747,508)
Balance	¥270,060	¥247,101	$2,015,373

The aggregate annual maturities of long-term debt for the next five years are as follows:

	(Millions of yen)	(Thousands of U.S. dollars)
		(Note 3)
Year ending March 31
2024	¥100,166	$ 747,508
2025	81,716	609,821
2026	66,293	494,724
2027	35,921	268,067
2028	40,579	302,828

Certain bank loans are made under general agreements which provide that security and guarantees for present and future indebtedness will be provided upon request of the bank, and that the bank shall have the right to offset cash deposits against obligations that have become due or, in the event of default, against all obligations due to the bank. Certain longterm debt agreements with lenders other than banks also stipulate that the Company shall provide additional security upon request of the lender.

11. Pension and Severance Plans

The amounts of net periodic benefit cost for the defined contribution pension plans were ¥17,961 million ($134,037 thousand) and ¥15,414 million for the years ended March 31, 2023 and 2022, respectively.

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost for the defined benefit pension plans for the years ended March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Components of net periodic benefit cost:
Service cost	¥16,927	¥ 18,057	$ 126,321
Interest cost	8,517	6,990	63,560
Expected return on plan assets	(22,530)	(21,836)	(168,134)
Amortization of net actuarial loss	3,995	6,632	29,813
Amortization of prior service credit	(2,239)	(2,341)	(16,709)
Gain (loss) arising from curtailments	(187)	-	(1,396)
Net periodic benefit cost	¥ 4,483	¥ 7,502	$ 33,455

Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income (loss) for the years ended March 31, 2023 and 2022 are summarized as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Current year actuarial (gain) loss	¥ (710)	¥(17,612)	$ (5,299)
Amortization of actuarial loss	(3,995)	(6,632)	(29,813)
Prior service credit due to revision	(2,278)	375	(17,000)
Amortization of prior service credit	2,239	2,341	16,709
Sale of businesses	-	631	-
Total	¥(4,744)	¥(20,897)	$(35,403)

Obligations and Funded Status

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year	¥847,311	¥864,071	$6,323,217
Service cost	16,927	18,057	126,321
Interest cost	8,517	6,990	63,560
Plan participants' contributions	603	473	4,500
Actuarial (gain) loss	(67,229)	(16,644)	(501,709)
Benefits paid	(38,797)	(37,051)	(289,530)
Plan revision	(2,278)	375	(17,000)
Decrease due to sale of businesses	-	(2,765)	-
Decrease due to curtailments	(187)	-	(1,396)
Foreign currency translation	5,736	13,805	42,806
Projected benefit obligation at end of year	770,603	847,311	5,750,769
Changes in plan assets:
Fair value of plan assets at beginning of year	902,471	891,799	6,734,858
Actual return on plan assets	(43,989)	22,804	(328,276)
Employers' contributions	15,841	15,876	118,216
Plan participants' contributions	603	473	4,500
Benefits paid	(35,599)	(35,060)	(265,664)
Decrease due to sale of businesses	-	(4,674)	-
Foreign currency translation	6,278	11,253	46,851
Fair value of plan assets at end of year	845,605	902,471	6,310,485
Funded status	¥ 75,002	¥ 55,160	$ 559,716

Amounts recognized in the consolidated balance sheets related to the defined benefit pension plans as of March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Other assets	¥ 99,094	¥ 85,271	$739,507
Accrued liabilities	(2,183)	(2,184)	(16,291)
Accrued pension and severance costs	(21,909)	(27,927)	(163,500)
Net amount recognized	¥ 75,002	¥ 55,160	$559,716

Amounts recognized in accumulated other comprehensive income (loss) related to the defined benefit pension plans as of March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Net actuarial loss	¥133,079	¥137,784	$993,127
Prior service credit	(12,248)	(12,209)	(91,403)
Total	¥120,831	¥125,575	$901,724

The accumulated benefit obligation for the defined benefit pension plans amounted to ¥767,521 million ($5,727,769 thousand) and ¥844,373 million as of March 31, 2023 and 2022, respectively.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Plans with projected benefit obligation in excess of plan assets:
Projected benefit obligation	¥86,713	¥117,113	$647,112
Fair value of plan assets	58,377	83,348	435,649
Plans with accumulated benefit obligation in excess of plan assets:
Accumulated benefit obligation	76,024	115,201	567,343
Fair value of plan assets	48,734	83,286	363,687

Assumptions

The weighted average assumptions used to determine the benefit obligation as of March 31, 2023 and 2022 are as follows: Rate of compensation increase is not presented because most of the retirement benefit plans' benefit formulas are not based on compensation levels and therefore the rate of compensation increase does not materially impact the calculation of the benefit obligation.

	2023	2022
Discount rate	1.27%	0.90%
Interest crediting rate for cash balance plans and other plans	2.21%	2.21%

The weighted average assumptions used to determine the net periodic benefit cost for the years ended March 31, 2023 and 2022 are as follows: Rate of compensation increase is not presented because most of the retirement benefit plans' benefit formulas are not based on compensation levels and therefore the rate of compensation increase does not materially impact the calculation of the net periodic benefit cost.

	2023	2022
Discount rate	0.90%	0.85%
Expected long-term rate of return on plan assets	2.69%	2.47%
Interest crediting rate for cash balance plans and other plans	2.21%	2.20%

The expected long-term rate of return on plan assets is based on the expected long-term return by asset category and historical performance by portfolio.

Plan Assets

The Company's investment objectives are to earn sufficient long-term returns with an acceptable level of risk, while maintaining adequate funding levels for pension payments and/or lump sum payments.

Targeted allocation ratios for equity securities, debt securities, general accounts of life insurance companies and alternative investments are 18%, 35% (5% domestic and 30% foreign), 22% and 25%, respectively. Alternative investments primarily consist of hedge funds and real estate.

	2023
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Millions of yen)
Cash and cash equivalents, and
Short-term receivables (Note 2)	¥ 8,338	¥ 11,636	¥ -	¥ -	¥ 19,974
Equity securities
Domestic companies securities	10,834	1,071	-	-	11,905
Foreign companies securities	14,267	12,072	-	-	26,339
Securities investment trust	1,039	-	-	-	1,039
Pooled funds (Note 3)	-	85	-	127,286	127,371
Debt securities
Government bonds (Note 4)	8,471	4,736	-	-	13,207
Corporate bonds (Note 5)	-	15,347	-	-	15,347
Public and corporate bonds investment trust (Note 6)	-	-	-	-	-
Pooled funds (Note 7)	-	21,817	-	208,793	230,610
General accounts of life insurance companies	-	218,391	-	-	218,391
Alternative investments
Equity securities funds (Note 8)	-	-	-	197	197
Debt securities funds (Note 9)	3,008	-	-	3,574	6,582
Other funds (Note 10)	3,522	8,348	7,928	92,313	112,111
Real estate (Note 11)	-	241	2,037	60,254	62,532
Total	¥49,479	¥293,744	¥9,965	¥492,417	¥845,605

	2022
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Millions of yen)
Cash and cash equivalents, and Short-term receivables (Note 2)	¥ 5,636	¥ 6,269	¥ -	¥ -	¥ 11,905
Equity securities
Domestic companies securities	14,900	752	-	-	15,652
Foreign companies securities	23,964	19,556	-	-	43,520
Securities investment trust	882	2,980	-	-	3,862
Pooled funds (Note 3)	-	883	-	171,122	172,005
Debt securities
Government bonds (Note 4)	10,320	5,531	-	-	15,851
Corporate bonds (Note 5)	-	12,866	-	-	12,866
Public and corporate bonds investment trust (Note 6)	-	5,827	-	-	5,827
Pooled funds (Note 7)	-	3,269	-	212,131	215,400
General accounts of life insurance companies	-	211,996	-	-	211,996
Alternative investments
Equity securities funds (Note 8)	-	-	18	189	207
Debt securities funds (Note 9)	3,744	30,323	-	6,997	41,064
Other funds (Note 10)	6,789	7,538	8,825	83,093	106,245
Real estate (Note 11)	-	326	2,285	43,460	46,071
Total	¥66,235	¥308,116	¥11,128	¥516,992	¥902,471

	2023
	Level 1	Level 2	Level 3	NAV (Note 1)	Total
	(Thousands of U.S. dollars)
	(Note 3)
Cash and cash equivalents, and Short-term receivables (Note 2)	$ 62,224	$ 86,836	$ -	$ -	$ 149,060
Equity securities
Domestic companies securities	80,850	7,993	-	-	88,843
Foreign companies securities	106,470	90,090	-	-	196,560
Securities investment trust	7,754	-	-	-	7,754
Pooled funds (Note 3)	-	634	-	949,896	950,530
Debt securities
Government bonds (Note 4)	63,217	35,343	-	-	98,560
Corporate bonds (Note 5)	-	114,530	-	-	114,530
Public and corporate bonds investment trust (Note 6)	-	-	-	-	-
Pooled funds (Note 7)	-	162,813	-	1,558,157	1,720,970
General accounts of life insurance companies	-	1,629,783	-	-	1,629,783
Alternative investments
Equity securities funds (Note 8)	-	-	-	1,470	1,470
Debt securities funds (Note 9)	22,448	-	-	26,671	49,119
Other funds (Note 10)	26,283	62,299	59,164	688,903	836,649
Real estate (Note 11)	-	1,798	15,202	449,657	466,657
Total	$369,246	$2,192,119	$74,366	$3,674,754	$6,310,485

(Note 1) Certain assets that are measured at fair value using net asset value ("NAV") per share applied by practical expedient, have not been classified in the fair value hierarchy.

(Note 2) Short-term receivables include cash at bank held in the loan account of pooled funds, negotiable certificates of deposit and call loans, which are classified as Level 2.

(Note 3) Pooled funds of equity securities consist of 16% and 21% domestic companies and 84% and 79% foreign companies as of March 31, 2023 and 2022, respectively.

(Note 4) This category consists of 67% and 72% Japanese government bonds and 33% and 28% foreign government bonds as of March 31, 2023 and 2022, respectively.

(Note 5) This category consists of 5% and 8% domestic corporate bonds and 95% and 92% foreign corporate bonds as of March 31, 2023 and 2022, respectively.

(Note 6) The public and corporate bonds investment trusts invest principally in foreign government bonds.

(Note 7) Pooled funds of debt securities consist of 10% and 10% Japanese government bonds, government agency and municipal securities, 64% and 62% foreign government bonds, 1% and 1% domestic corporate bonds and 25% and 27% foreign corporate bonds as of March 31, 2023 and 2022, respectively.

(Note 8) Equity securities funds invest principally in domestic companies securities.

(Note 9) Debt securities funds invest principally in foreign government bonds and foreign currencies.

(Note 10) Other funds include managed futures which principally invest in listed futures and fund of hedge funds whose investments are diversified with a combination of various products and investment techniques.

(Note 11) Real estate includes principally domestic real estate funds whose investment policy is to generate stable rental income and capital gains from sales on real estate.

Reconciliation of the beginning and ending balances for assets classified as Level 3 for the years ended March 31, 2023 and 2022 is as follows:

	2023
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sales	Currency translation	Business combination	Balance at end of year
	(Millions of yen)
Alternative investments
Equity securities funds	¥ 18	¥ -	¥ (18)	¥ -	¥ -	¥ -
Other funds	8,825	482	(1,410)	31	-	7,928
Real estate	2,285	38	(493)	207	-	2,037
Total	¥11,128	¥520	¥(1,921)	¥238	¥ -	¥9,965

	2022
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sales	Currency translation	Business combination	Balance at end of year
	(Millions of yen)
Alternative investments
Equity securities funds	¥ 8	¥ -	¥ 10	¥ -	¥-	¥ 18
Other funds	8,848	416	(494)	55	-	8,825
Real estate	1,610	471	28	176	-	2,285
Total	¥10,466	¥887	¥(456)	¥231	¥-	¥11,128

	2023
	Balance at beginning of year	Actual returns on assets held at end of year	Purchase/ sale	Currency translation	Business combination	Balance at end of year
	(Thousands of U.S. dollars)
	(Note 3)
Alternative investments
Equity securities funds	$ 135	$ -	$ (135)	$ -	$ -	$ -
Other funds	65,858	3,597	(10,522)	231	-	59,164
Real estate	17,052	284	(3,679)	1,545	-	15,202
Total	$83,045	$3,881	$(14,336)	$1,776	$ -	$74,366

Contribution

The Company expects to contribute approximately ¥12,406 million ($92,582 thousand) to the defined benefit pension plans for the year ending March 31, 2024.

Estimated Future Benefit Payments

The expected benefit payments, which reflect estimated future service, are summarized as follows:

	(Millions of yen)	(Thousands of U.S. dollars)
		(Note 3)
Year ending March 31
2024	¥ 38,991	$ 290,978
2025	38,662	288,522
2026	38,717	288,933
2027	38,301	285,828
2028	39,915	297,873
2029 through 2033	191,508	1,429,164

12. Income Taxes

	2023	2022
	(%)	(%)
Statutory tax rates	30.6	30.6
Increase (decrease) in income taxes resulting from:
Differences other than temporary differences, etc.	(0.2)	(0.8)
Difference in statutory tax rates of other countries	(4.7)	(3.5)
Deferred tax liabilities on undistributed earnings	1.0	1.6
Research and development credits	(3.8)	(3.1)
Net change in valuation allowances	0.3	(3.2)
Adjustment for unrecognized tax benefits	(0.7)	(0.1)
Other	0.6	0.4
Effective tax rates	23.1	21.9

Income before income taxes by tax jurisdictions for the years ended March 31, 2023 and 2022 is as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Income before income taxes:
Domestic	¥159,688	¥139,418	$1,191,701
Foreign	122,536	121,028	914,448
Total	¥282,224	¥260,446	$2,106,149

The components of income taxes for the years ended March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Current:
Domestic	¥45,532	¥27,993	$339,791
Foreign	33,636	20,622	251,015
Total current	79,168	48,615	590,806
Deferred:
Domestic	(1,579)	3,659	(11,784)
Foreign	(12,383)	4,855	(92,410)
Total deferred	(13,962)	8,514	(104,194)
Total	¥65,206	¥57,129	$486,612

The major components of deferred tax assets and liabilities as of March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Deferred tax assets:
Inventories	¥ 21,939	¥ 20,272	$ 163,724
Depreciation	36,555	35,450	272,798
Accrued expenses	37,593	40,615	280,545
Accrued pension and severance costs	6,118	3,947	45,657
Accrued enterprise taxes	2,492	2,200	18,597
Tax loss carryforwards	37,222	43,811	277,776
Losses on investment securities	2,436	3,162	18,179
Allowance for doubtful receivables	3,673	4,253	27,410
Operating lease liabilities	19,927	20,841	148,709
Unrealized gains on non-current assets	7,343	5,603	54,799
Research and development (Costs capitalized for tax purposes)	8,859	-	66,112
Other	32,838	15,194	245,060
	216,995	195,348	1,619,366
Less: Valuation allowances	(39,273)	(32,959)	(293,082)
Total deferred tax assets	177,722	162,389	1,326,284
Deferred tax liabilities:
Depreciation	27,302	24,158	203,746
Lease receivables	11,384	12,312	84,955
Taxes on undistributed earnings	29,495	33,177	220,112
Unrealized gains on available-for-sale securities	4,209	7,135	31,411
Goodwill	24,587	20,035	183,485
Accrued pension and severance costs	25,129	15,565	187,530
Other intangible assets	40,783	42,626	304,351
Operating lease right-of-use assets	19,099	19,541	142,530
Other	14,759	17,665	110,142
Total deferred tax liabilities	196,747	192,214	1,468,262
Net deferred tax assets (liabilities)	¥ (19,025)	¥ (29,825)	$ (141,978)

The valuation allowances relate primarily to the deferred tax assets of certain subsidiaries which have net operating loss carryforwards for tax purposes. The valuation allowances increased by ¥6,314 million ($47,119 thousand) and decreased by ¥4,390 million for the years ended March 31, 2023 and 2022, respectively.

Deferred tax assets and liabilities as of March 31, 2023 and 2022 are included in the consolidated balance sheets as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Deferred income taxes (other assets)	¥ 30,125	¥24,210	$ 224,813
Deferred income taxes (non-current liabilities)	(49,150)	(54,035)	(366,791)
Net deferred tax assets (liabilities)	¥(19,025)	¥(29,825)	$(141,978)

As of March 31, 2023, certain subsidiaries have net operating loss carryforwards for income tax purposes of ¥140,251 million ($1,046,649 thousand), of which ¥100,707 million ($751,545 thousand) will be carried forward indefinitely, and the remainder of ¥39,544 million ($295,104 thousand) will, at the latest, expire through the year ending March 31, 2038. These net operating loss carryforwards are available to offset future taxable income of the subsidiaries.

The Company recognizes tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The balance of and changes to unrecognized tax benefits were not material in the years ended March 31, 2023 and 2022.

Although the Company believes its estimates and assumptions of unrecognized tax benefits are reasonable, uncertainty regarding the final determination of tax audit settlements could affect the effective tax rate in the future period. Based on each of the items of which the Company is aware as of March 31, 2023, no significant changes to the unrecognized tax benefits are expected within the next twelve months.

Both interest and penalties accrued as of March 31, 2023 and 2022 in the consolidated balance sheets and included in income taxes for the years ended March 31, 2023 and 2022 in the consolidated statements of income were not material.

In Japan, tax examinations of the Company and major domestic subsidiaries by the tax authorities for the year ended March 31, 2020 and before have been completed. Tax examinations related to transfer pricing by the tax authorities for the year ended March 31, 2020 and before have been completed.

In foreign tax jurisdictions, tax examinations of major foreign subsidiaries for the year ended March 31, 2012 and before have been completed.

13. Equity

Retained earnings available for dividends under the Act are based on the amount presented in the Company's non-consolidated financial statements, which are prepared in accordance with accounting principles and practices generally accepted in Japan. Under the Act, retained earnings available for dividends as of March 31, 2023 amounted to ¥1,080,073 million ($8,060,246 thousand).

The appropriation of retained earnings for the year ended March 31, 2023 has been reflected in the consolidated financial statements, including the amount approved at the 127 th Ordinary General Meeting of Shareholders held on June 29, 2023.

The Company decided to retire treasury stock through a resolution of the Board of Directors on February 8, 2023, and retired 100,000,000 shares of treasury stock on February 28, 2023. Due to this retirement of treasury stock, the total number of issued shares as of March 31, 2023 is 414,625,728.

14. Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income for the years ended March 31, 2023 and 2022 are as follows:

	Unrealized gains (losses) on securities	Foreign currency translation adjustments	Pension liability adjustments	Unrealized gains (losses) on derivatives	Total
	(Millions of yen)
As of April 1, 2021	¥ 1	¥ 32,973	¥ (86,038)	¥ 228	¥ (52,836)
Change in accumulated other comprehensive income	26	115,754	11,122	38	126,940
Reclassification to net income	-	(27)	2,136	(220)	1,889
Net change	26	115,727	13,258	(182)	128,829
As of March 31, 2022	¥ 27	¥148,700	¥ (72,780)	¥ 46	¥ 75,993
Change in accumulated other comprehensive income	-	84,432	2,518	(235)	86,715
Reclassification to net income	(27)	(239)	1,069	309	1,112
Net change	(27)	84,193	3,587	74	87,827
As of March 31, 2023	¥ -	¥232,893	¥ (69,193)	¥ 120	¥ 163,820

	Unrealized gains (losses) on securities	Foreign currency translation adjustments	Pension liability adjustments	Unrealized gains (losses) on derivatives	Total
	(Thousands of U.S. dollars)
	(Note 3)
As of March 31, 2022	$ 202	$ 1,109,701	$ (543,135)	$ 344	$ 567,112
Change in accumulated other comprehensive income	-	630,090	18,791	(1,754)	647,127
Reclassification to net income	(202)	(1,784)	7,978	2,306	8,298
Net change	(202)	628,306	26,769	552	655,425
As of March 31, 2023	$ -	$ 1,738,007	$ (516,366)	$ 896	$ 1,222,537

The amounts reclassified out of each component of accumulated other comprehensive income to net income for the years ended March 31, 2023 and 2022 are as follows:

Affected line item in the consolidated statements of income	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Unrealized gains (losses) on securities
Other, net	¥ 39	¥ -	$ 291
Income taxes	(12)	-	(89)
Net income attributable to FUJIFILM Holdings	27	-	202
Foreign currency translation adjustments
Other, net	239	27	1,784
Net income attributable to FUJIFILM Holdings	239	27	1,784
Pension liability adjustments
Other, net	(1,756)	(3,660)	(13,104)
Income taxes	740	1,577	5,522
Net income attributable to noncontrolling interests	(53)	(53)	(396)
Net income attributable to FUJIFILM Holdings	(1,069)	(2,136)	(7,978)
Unrealized gains (losses) on derivatives
Foreign exchange gains (losses), net	(412)	331	(3,074)
Interest expense	(34)	(94)	(254)
Income taxes	137	(17)	1,022
Net income attributable to FUJIFILM Holdings	(309)	220	(2,306)
Total	¥(1,112)	¥(1,889)	$(8,298)

The related tax effects allocated to each component of other comprehensive income, including amounts attributable to noncontrolling interests, for the years ended March 31, 2023 and 2022 are as follows:

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Millions of yen)
2023
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	¥ -	¥ -	¥ -
Reclassification to net income	(39)	12	(27)
Net change in unrealized gains (losses)	(39)	12	(27)
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	85,767	-	85,767
Reclassification to net income	(239)	-	(239)
Net change in foreign currency translation adjustments	85,528	-	85,528
Pension liability adjustments:
Change in pension liability adjustments	2,988	(1,203)	1,785
Reclassification to net income	1,756	(740)	1,016
Net change in pension liability adjustments	4,744	(1,943)	2,801
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	(339)	104	(235)
Reclassification to net income	446	(137)	309
Net change in unrealized gains (losses)	107	(33)	74
Total	¥90,340	¥(1,964)	¥88,376

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Millions of yen)
2022
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	¥ 38	¥ (12)	¥ 26
Reclassification to net income	-	-	-
Net change in unrealized gains (losses)	38	(12)	26
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	117,493	-	117,493
Reclassification to net income	(27)	-	(27)
Net change in foreign currency translation adjustments	117,466	-	117,466
Pension liability adjustments:
Change in pension liability adjustments	17,237	(5,939)	11,298
Reclassification to net income	3,660	(1,577)	2,083
Net change in pension liability adjustments	20,897	(7,516)	13,381
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	54	(16)	38
Reclassification to net income	(237)	17	(220)
Net change in unrealized gains (losses)	(183)	1	(182)
Total	¥138,218	¥(7,527)	¥130,691

	Before-tax amount	Tax (expense) or benefit	Net-of-tax amount
	(Thousands of U.S. dollars)
	(Note 3)
2023
Unrealized gains (losses) on securities:
Change in unrealized gains (losses) on securities	$ -	$ -	$ -
Reclassification to net income	(291)	89	(202)
Net change in unrealized gains (losses)	(291)	89	(202)
Foreign currency translation adjustments:
Change in foreign currency translation adjustments	640,053	-	640,053
Reclassification to net income	(1,784)	-	(1,784)
Net change in foreign currency translation adjustments	638,269	-	638,269
Pension liability adjustments:
Change in pension liability adjustments	22,299	(8,978)	13,321
Reclassification to net income	13,104	(5,522)	7,582
Net change in pension liability adjustments	35,403	(14,500)	20,903
Unrealized gains (losses) on derivatives:
Change in unrealized gains (losses) on derivatives	(2,530)	776	(1,754)
Reclassification to net income	3,328	(1,022)	2,306
Net change in unrealized gains (losses)	798	(246)	552
Total	$674,179	$(14,657)	$659,522

15. Commitments and Contingent Liabilities

Guarantees

The Company guarantees certain indebtedness of others and other obligations. As of March 31, 2023, the maximum potential amount of future payments (undiscounted) the Company could be required to make under such guarantees was ¥1,419 million ($10,590 thousand), of which ¥723 million ($5,396 thousand) were guarantees of employee mortgage loans to financial institutions. In the event of an employee's insolvency, certain subsidiaries of the Company will need to pay the default mortgage on behalf of the employee. The guarantees are partly secured by the employees' property. The terms of the mortgage loan guarantees are from 1 to 14 years. The Company has not made any significant payments under such guarantees in the past, and as of March 31, 2023, the carrying amount of the liability for the Company's obligations under such guarantees was not material.

Purchase Commitments, Other Commitments and Contingencies

Commitments outstanding as of March 31, 2023, principally for the construction and purchase of property, plant and equipment, amounted to ¥98,155 million ($732,500 thousand). As of March 31, 2023, the Company was contingently liable for discounted notes receivable on a full recourse basis with banks of ¥1,951 million ($14,560 thousand).

Product Warranties

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Balance, as of April 1	¥ 11,330	¥ 9,938	$ 84,552
Warranties issued during the current period	7,004	8,215	52,269
Settlements made during the current period	(6,887)	(7,118)	(51,396)
Other, including changes in liability for preexisting warranties during the current period	(128)	295	(955)
Balance, as of March 31	¥11,319	¥11,330	$ 84,470

16. Net Income Attributable to FUJIFILM Holdings per Share

A calculation of the basic and diluted net income attributable to FUJIFILM Holdings per share for the years ended March 31, 2023 and 2022 is as follows. The Company has introduced a restricted share-based remuneration plan for Directors (excluding Outside Directors), Executive Officers, and important employees of the Company as well as Directors, Executive Officers, Fellows, and important employees of its major subsidiaries. Among the shares issued under this plan, those which have not vested are distinguished as participating securities from common shares. Both common shares and participating securities have the same rights to net income attributable to FUJIFILM Holdings.

	2023	2022	2023
	(Millions of Yen)		(Thousands of U.S. dollars)
			(Note 3)
Net income attributable to FUJIFILM Holdings	¥ 219,422	¥ 211,180	$1,637,478
Net income attributable to participating securities	115	45	859
Net income attributable to common shareholders	¥219,307	¥211,135	$1,636,619

	2023	2022
	(Shares)
Weighted average shares outstanding	400,980,723	400,472,570
Weighted average participating securities	209,302	85,306
Weighted average common shares outstanding- Basic	400,771,421	400,387,264
Stock options	590,883	926,434
Weighted average common shares outstanding- Diluted	401,362,304	401,313,698

	2023	2022	2023
	(Yen)		(U.S. dollars)
			(Note 3)
Net income attributable to FUJIFILM Holdings per share:
Basic	¥547.21	¥527.33	$4.08
Diluted	546.41	526.11	4.08

The number of common stocks to be issued when stock options are exercised in the future, which had no dilutive effect and were excluded from the calculation of diluted net income attributable to FUJIFILM Holdings per share, were 28,500 and 28,600 shares as of March 31, 2023 and 2022, respectively.

17. Share-Based Remuneration Plan

Stock-Based Compensation Plan

The Company previously had a stock-based compensation plan for Directors (excluding Outside Directors), Executive Officers, and important employees of the Company as well as Directors (excluding Outside Directors), Executive Officers, Fellows, and important employees of its certain consolidated subsidiaries. Due to the introduction of a performance share unit plan and a restricted share-based remuneration plan by a resolution of the 125 ^th Ordinary General Meeting of Shareholders held on June 29, 2021, the stock-based compensation plan was abolished except for those already granted. Under the stock-based compensation plan, one stock acquisition right represents one option to purchase 100 shares of the Company's common stock.

General terms of contracts are as follows. It is presented in numbers of shares on grant dates.

Stock acquisition rights	Number of shares	Exercise price	Grant date	Period for exercising stock acquisition rights
		(Yen)
No. 3-1	255,300	1	September 1, 2009	September 2, 2009 ~ September 1, 2039 (Note 1)
No. 4-1	277,800	1	January 31, 2011	February 1, 2011 ~ January 31, 2041 (Note 1)
No. 5-1	386,000	1	April 2, 2012	April 3, 2012~ April 2, 2042 (Note 2)
No. 6-1	370,400	1	April 1, 2013	April 2, 2013 ~ April 1, 2043 (Note 2)
No. 7-1	227,100	1	April 1, 2014	April 2, 2014 ~ April 1, 2044 (Note 2)
No. 7-2	23,200	2,803	April 1, 2014	February 28, 2016 ~ February 27, 2024
No. 8-1	182,100	1	April 1, 2015	April 2, 2015 ~ April 1, 2045 (Note 2)
No. 8-2	22,500	4.205	April 1, 2015	February 27, 2017 ~ February 26, 2025
No. 9-1	174,800	1	June 1, 2016	June 2, 2016 ~ June 1, 2046 (Note 2)
No. 9-2	25,100	4,495	June 1, 2016	April 28, 2018 ~ April 27, 2026
No. 10-1	163,300	1	June 1, 2017	June 2, 2017 ~ June 1, 2047 (Note 3)
No. 10-2	23,500	4,146	June 1, 2017	April 28, 2019 ~ April 27, 2027
No. 11-1	174,000	1	June 1, 2018	June 2, 2018 ~ June 1, 2048 (Note 3)
No. 11-2	24,100	4,241	June 1, 2018	May 11, 2020 ~ May 10, 2028
No. 12-1	136,300	1	June 1, 2019	June 2, 2019 ~ June 1, 2049 (Note 3)
No. 12-2	23,500	5,238	June 1, 2019	May 9, 2021 ~ May 8, 2029
No. 13-1	151,600	1	June 1, 2020	June 2, 2020 ~ June 1, 2050 (Note 3)
No. 13-2	26,900	5,043	June 1, 2020	May 14, 2022 ~ May 13, 2030
No. 14-1	131,100	1	June 1, 2021	June 2, 2021 ~ June 1, 2051 (Note 3)
No. 14-2	28,900	7,556	June 1, 2021	May 13, 2023 ~ May 12, 2031

(Note 1) In the case that stock acquisition right holders cease to hold any positions as the Company's or its certain subsidiaries' Directors (excluding Outside Directors), Corporate Auditors, Executive Officers, Fellows, or other positions appointed by the Board of Directors, during the period for exercising the stock acquisition rights, they shall exercise the stock acquisition rights during a limited period of 7 years beginning from the day following the date of loss of position.

(Note 2) In the case that stock acquisition right holders cease to hold any positions as the Company's or its certain subsidiaries' Directors (excluding Outside Directors), Corporate Auditors, Executive Officers, Fellows, employees, or other positions appointed by the Board of Directors, during the period for exercising the stock acquisition rights, they shall exercise the stock acquisition rights during a limited period of 7 years beginning from the day following the date of loss of position.

(Note 3) In the case that stock acquisition right holders cease to hold any positions as the Company's or its certain subsidiaries' Directors (excluding Outside Directors), Corporate Auditors, Executive Officers, Fellows, employees, or other positions appointed by the Board of Directors, during the period for exercising the stock acquisition rights, they shall exercise the stock acquisition rights all at once during a limited period of 10 calendar days beginning from the day following the date of loss of position.

The Company recognized stock-based compensation cost of ¥1,001 million as "Selling, general and administrative" in the consolidated statements of income for the year ended March 31, 2022, and the cost was measured as the fair value of the options estimated using the Black-Scholes pricing model. The deferred income tax benefit related to the cost was ¥107 million for the year ended March 31, 2022. The weighted average grant date fair value of stock acquisition rights granted during the year ended March 31, 2022 was ¥6,258. The total fair values of shares vested during the years ended March 31, 2023 and 2022 were ¥26 million ($194 thousand) and ¥954 million, respectively. There were 1,733 stock acquisition rights exercised during the year ended March 31, 2023, and cash received from the exercise for the year ended March 31, 2023, was ¥80 million ($597 thousand).

No stock acquisition right was granted during the year ended March 31, 2023 due to the abolishment of the stock-based compensation plan. As of March 31, 2023, there was no unrecognized stock-based compensation cost.

A summary of the status of stock acquisition rights during the years ended March 31, 2023 and 2022 is as follows:

2023	Number of shares	Weighted average exercise price	Weighted average remaining contractual term	Aggregate intrinsic value
		(Yen)	(Years)	(Millions of yen)
Outstanding as of April 1, 2022	795,200	¥ 784
Exercised	(173,300)	461
Forfeited or expired	(1,200)	1,858
Outstanding as of March 31, 2023	620,700	872	22.1	¥3,641
Exercisable as of March 31, 2023	592,200	550	22.8	3,641

2022	Number of shares	Weighted average exercise price	Weighted average remaining contractual term	Aggregate intrinsic value
		(Yen)	(Years)	(Millions of yen)
Outstanding as of April 1, 2021	1,502,400	¥ 327
Granted	160,000	1,366
Exercised	(845,600)	94
Forfeited or expired	(21,600)	317
Outstanding as of March 31, 2022	795,200	784	22.6	¥5,344
Exercisable as of March 31, 2022	740,100	370	23.7	5,279

2023	Weighted average exercise price	Aggregate intrinsic value
	(U.S. dollar)	(Thousands of U.S. dollars)
	(Note 3)	(Note 3)
Outstanding as of April 1, 2022	$ 5.85
Exercised	3.44
Forfeited or expired	13.87
Outstanding as of March 31, 2023	6.51	$27,172
Exercisable as of March 31, 2023	4.10	27,172

The aggregate intrinsic value of shares exercised under the stock acquisition rights plan was ¥1,081 million ($8,067 thousand) and ¥6,264 million for the years ended March 31, 2023 and 2022, respectively.

The fair value of the stock acquisition rights as of the grant date was estimated using the Black-Scholes pricing model with the following assumptions:

Stock acquisition rights	Expected volatility	Expected remaining life	Expected dividend	Risk-free interest rate
			(Yen)
No. 3-1	58.623%	1 year	30	0.170%
No. 4-1	23.274%	1 year	27.5	0.145%
No. 5-1	28.548%	1 year	32.5	0.105%
No. 6-1	28.682%	1 year	37.5	0.055%
No. 7-1	36.312%	1 year	40	0.070%
No. 7-2	37.091%	6 years	40	0.252%
No. 8-1	24.178%	1 year	55	0.020%
No. 8-2	29.772%	6 years	55	0.123%
No. 9-1	32.900%	1 year	67.5	(0.265)%
No. 9-2	29.840%	6 years	67.5	(0.256)%
No. 10-1	28.736%	2 years	67.5	(0.165)%
No. 10-2	29.426%	6 years	67.5	(0.092)%
No. 11-1	27.457%	3 years	72.5	(0.131)%
No. 11-2	28.715%	6 years	72.5	(0.071)%
No. 12-1	23.632%	3 years	77.5	(0.197)%
No. 12-2	26.672%	6 years	77.5	(0.203)%
No. 13-1	28.112%	3 years	87.5	(0.195)%
No. 13-2	27.601%	6 years	87.5	(0.134)%
No. 14-1	27.551%	3 years	95.0	(0.153)%
No. 14-2	27.505%	6 years	95.0	(0.078)%

The expected volatility is determined based on the historical volatility of the Company's common stock price over the most recent period corresponding with the estimated expected remaining life of the Company's stock acquisition rights. The expected remaining life of No. 3-1 Stock Acquisition Rights, No. 4-1 Stock Acquisition Rights, No. 5-1 Stock Acquisition Rights, No. 6-1 Stock Acquisition Rights, No. 7-1 Stock Acquisition Rights, No. 8-1 Stock Acquisition Rights and No. 9-1 Stock Acquisition Rights was determined as one year based on the minimum term of Directors and Executive Officers of the Company and FUJIFILM Corporation. The expected remaining life of No. 10-1 Stock Acquisition Rights, No. 11-1 Stock Acquisition Rights, No. 12-1 Stock Acquisition Rights, No. 13-1 Stock Acquisition Rights and No. 14-1 Stock Acquisition Rights was determined as the years reflecting the actual term of the year before the grant date. The expected remaining life of No. 7-2 Stock Acquisition Rights, No. 8-2 Stock Acquisition Rights, No. 9-2 Stock Acquisition Rights, No. 10-2 Stock Acquisition Rights, No. 11-2 Stock Acquisition Rights, No. 12-2 Stock Acquisition Rights, No. 13-2 Stock Acquisition Rights and No. 14-2 Stock Acquisition Rights was determined as 6 years based on the midpoint of the period for exercising the stock acquisition rights.

Medium-Term Performance-Linked Share-Based Remuneration Plan (Performance Share Unit Plan)

As one way to grant remuneration, the Company has introduced a performance share unit plan in which the period of the medium-term management plan is used as a performance evaluation period, and remuneration changes according to the level of achievement of performance targets. This plan covers Directors (excluding Outside Directors), Executive Officers, and important employees of the Company as well as Directors, Executive Officers, Fellows, and important employees of its subsidiaries ("Eligible Allottees"). Units are allotted to the Eligible Allottees at the beginning of the performance evaluation period and, after the performance evaluation period ends, the number of units are finalized by multiplying the percentage of achievement of numerical targets such as performance, if the delivery requirements are satisfied. Units held by each Eligible Allottees are equivalent to one share per unit. Shares are provided for the half of the number of units through the issuance of common stock or disposal of treasury shares, and the remainder is paid in cash to the Eligible Allottees. The initial eligible period is from April 1, 2021 to March 31, 2024, and thereafter, the Performance Share Unit Plan may be implemented for the three consecutive years starting from the year that follows the final year of the preceding eligible period as a new eligible period.

Details of the performance share units during the years ended March 31, 2023 and 2022 are as follows.

	2023
	Number of units	Weighted average fair value
		(Yen)	(U.S. dollar)
			(Note 3)
Balance, as of April 1, 2022	130,100	¥ 7,997	$ 59.68
Granted	24,800	7,058	52.67
Vested	(2,300)	8,768	65.43
Forfeited	(18,500)	8,768	65.43
Balance, as of March 31, 2023	134,100	8,452	63.07

	2022
	Number of units	Weighted average fair value
		(Yen)
Balance, as of April 1, 2021	-	¥ -
Granted	131,000	8,768
Vested	-	-
Forfeited	(900)	9,053
Balance, as of March 31, 2022	130,100	7,997

The fair value of the performance share units for which the shares of the Company's common stock are granted as of the grant date is as follows. The fair value is calculated based on the market value of shares of the Company's common stock on the grant date of the units, adjusted to take into account expected dividends and a weighted average discount rate.

Performance share units for which the shares of the Company's common stock are provided

	2023		2022
Fair value at grant date	¥7,058	($52.67)	¥8,768
Expected period	2.0 years		3.0 years
Estimated deductible dividends	¥220	($1.64)	¥300
Weighted average discount rate	(0.064)%		(0.082)%
Stock price at grant date	¥7,278	($54.31)	¥9,068

The fair value of the performance share units for which payment is made in cash at the end of year is as follows. The fair value is calculated based on the market value of shares of the Company's common stock at the end of year, adjusted to take into account expected dividends and a weight average discount rate.

Performance share units for which payment is made in cash

	2023		2022
Fair value at end of year	¥6,518	($48.64)	¥7,227
Expected period	1.3 years		2.3 years
Estimated deductible dividends	¥180	($1.34)	¥275
Weighted average discount rate	(0.038)%		(0.032)%
Stock price at end of year	¥6,698	($49.99)	¥7,502

The Company recognized share-based compensation cost of ¥475 million ($3,545 thousand) and ¥296 million as "Selling, general and administrative" in the consolidated statements of income for the years ended March 31, 2023 and 2022, respectively, and the cost was measured as the fair value of the performance share units as of the grant date and at the end of year. The deferred income tax benefit related to the cost was ¥142 million ($1,060 thousand) and ¥46 million for the years ended March 31, 2023 and 2022, respectively. Unrecognized share-based compensation cost amounted to ¥525 million ($3,918 thousand) and ¥889 million as of March 31, 2023 and 2022, respectively.

Restricted Share-Based Remuneration Plan

The Company has introduced the Restricted Share-Based Remuneration Plan for Eligible Allottees. Under the plan, the Company shall grant monetary remuneration receivables for allocating restricted shares to the Eligible Allottees every year and the full amount of such monetary remuneration receivables is used as contribution in kind with the issuance or disposal of restricted shares the Eligible Allottees hold. The aforementioned monetary remuneration receivables are paid subject to the Eligible Allottees agreeing to said contributions in kind and executing the allotment agreement for restricted shares between the Company and the Eligible Allottees. Eligible Allottees shall not transfer, create a security interest on, or otherwise dispose of restricted shares received as an allotment under the allotment agreement for restricted shares during the period from the day the allotment was received in accordance with the allotment agreement for restricted shares until the day on which the Eligible Allottee loses the position of Director, Executive Officer, Fellow, etc. or employee of the Company or its consolidated subsidiary (the "Restriction Period"). The restrictions described in the preceding sentence will hereinafter be collectively referred to as the "Transfer Restrictions". The Company shall lift the Transfer Restrictions when the Restriction Period has expired subject to the Eligible Allottees continuing to hold their position from the day on which the Restriction Period commenced until the day on which the Company's Ordinary General Meeting of Shareholders first arrives thereafter. When the Eligible Allottee resigns or retires from the position of Director, Executive Officer, Fellow, etc. or employee of the Company or its consolidated subsidiary for personal reasons following the day on which the Restriction Period commenced, the Company shall automatically acquire all or part of the allotted shares without contribution.

Details of the restricted shares allotted during the years ended March 31, 2023 and 2022 are as follows. The stock price on the grant date is used as the fair value of the restricted shares.

		2023
	Number of units	Weighted average fair value
		(Yen)	(U.S. dollar)
			(Note 3)
Outstanding as of April 1, 2022	146,800	¥ 9,068	$ 67.67
Granted	136,000	7,341	54.78
Transfer Restrictions lifted	(14,900)	9,068	67.67
Outstanding as of March 31, 2023	267,900	8,191	61.13

	2022
	Number of units	Weighted average fair value
		(Yen)
Outstanding as of April 1, 2021	-	¥ -
Granted	148,600	9,068
Forfeited	(1,800)	9,068
Outstanding as of March 31, 2022	146,800	9,068

The Company recognized share-based compensation cost of ¥1,081 million ($8,067 thousand) and ¥998 million as "Selling, general and administrative" in the consolidated statements of income for the years ended March 31, 2023 and 2022, respectively, and the cost was measured as the fair value of the restricted shares as of the grant date. The deferred income tax benefit related to the cost was ¥331 million ($2,470 thousand) and ¥305 million for the years ended March 31, 2023 and 2022, respectively. Unrecognized share-based compensation cost amounted to ¥249 million ($1,858 thousand) and ¥332 million as of March 31, 2023 and 2022, respectively.

18. Derivatives

The Company has established risk management policies for approval, reporting and monitoring of derivative financial instruments. The risk management policies prohibit the Company from holding or issuing derivative financial instruments for trading purposes. The summary of the Company's risk management policies and impact of these strategies on the Company's consolidated financial statements are as follows.

Cash Flow Hedges

Changes in the fair value of those derivative instruments designated or qualified as cash flow hedges are reported in "Accumulated other comprehensive income", net of applicable taxes, in the consolidated balance sheets. These amounts are reclassified into earnings in the same period during which the hedged items affect earnings.

As of March 31, 2023, the Company expects to reclassify ¥173 million ($1,291 thousand) of unrealized losses on derivatives (before tax effect) from accumulated other comprehensive income to earnings during the next twelve months.

Derivatives Not Designated as Hedges

Volume of Derivative Activities

Notional amounts of forward currency exchange contracts, currency swaps, cross currency interest rate swaps, interest rate swaps and other contracts as of March 31, 2023 and 2022 are summarized as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Forward currency exchange contracts (short)	¥32,794	¥47,243	$244,731
Forward currency exchange contracts (long)	8,836	16,167	65,940
Currency swaps	28,478	30,913	212,522
Cross currency interest rate swaps	16,344	14,981	121,970
Interest rate swaps	-	30,000	-
Other	6,558	15,016	48,940

Impacts on the Consolidated Financial Statements

The locations and amounts of fair values of derivatives in the consolidated balance sheets as of March 31, 2023 and 2022 are summarized as follows:

	Derivative assets
	Balance sheet location	Fair value
		2023	2022	2023
		(Millions of yen)		(Thousands of U.S. dollars)
				(Note 3)
Derivatives designated as hedging instruments
Forward currency exchange contracts	Prepaid expenses and other	¥ -	¥ 2	$ -
Cross currency interest rate swaps	Prepaid expenses and other	3,474	-	25,925
Cross currency interest rate swaps	Other long-term receivables	-	2,044	-
Total		3,474	2,046	25,925
Derivatives not designated as hedging instruments
Forward currency exchange contracts	Prepaid expenses and other	156	1,165	1,164
Currency swaps	Prepaid expenses and other	28	-	209
Other	Prepaid expenses and other	2,325	6,425	17,351
Other	Other long-term receivables	-	2,103	-
Total		2,509	9,693	18,724
Total derivative assets		¥ 5,983	¥ 11,739	$ 44,649

	Derivative liabilities
	Balance sheet location	Fair value
		2023	2022	2023
		(Millions of yen)		(Thousands of U.S. dollars)
				(Note 3)
Derivatives designated as hedging instruments
Forward currency exchange contracts	Other current liabilities	¥ 25	¥ 13	$ 187
Interest rate swaps	Other current liabilities	-	105	-
Total		25	118	187
Derivatives not designated as hedging instruments
Forward currency exchange contracts	Other current liabilities	230	1,125	1,716
Forward currency exchange contracts	Other non-current liabilities	-	2	-
Currency swaps	Other current liabilities	1,106	3,056	8,254
Currency swaps	Other non-current liabilities	114	1,308	851
Total		1,450	5,491	10,821
Total derivative liabilities		¥1,475	¥5,609	$11,008

The location and amounts of gains and losses related to derivatives recorded in the consolidated statements of income for the years ended March 31, 2023 and 2022 are summarized as follows:

Cash Flow Hedges	2023
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Millions of yen)
Forward currency exchange contracts	¥(406)	Foreign exchange gains (losses), net	¥(412)
Cross currency interest rate swaps	67	-	-
Interest rate swaps	-	Interest expense	(34)
Total	¥(339)		¥(446)

Cash Flow Hedges	2022
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Millions of yen)
Forward currency exchange contracts	¥114	Foreign exchange gains (losses), net	¥331
Cross currency interest rate swaps	(60)	-	-
Interest rate swaps	-	Interest expense	(94)
Total	¥ 54		¥237

Cash Flow Hedges	2023
	Gains (losses) recognized in accumulated OCI on derivatives (Effective portion)	Gains (losses) reclassified from accumulated OCI into earnings (Effective portion)
	Amount	Statements of income location	Amount
	(Thousands of U.S. dollars)
	(Note 3)
Forward currency exchange contracts	$(3,030)	Foreign exchange gains (losses), net	$(3,074)
Cross currency interest rate swaps	500	-	-
Interest rate swaps	-	Interest expense	(254)
Total	$(2,530)		$(3,328)

Derivatives Not Designated as Hedges	Statements of income location	Amount
		2023	2022	2023
		(Millions of yen)		(Thousands of U.S. dollars)
				(Note 3)
Forward currency exchange contracts	Foreign exchange gains (losses), net	¥ (211)	¥ (69)	$ (1,575)
Currency swaps	Foreign exchange gains (losses), net	(413)	(2,662)	(3,082)
Interest rate swaps	Other, net	-	11	-
Other	Other, net	(1,217)	8,383	(9,082)
Total		¥(1,841)	¥5,663	$(13,739)

19. Fair Value of Financial Instruments and Concentration of Credit Risk

Fair Value of Financial Instruments

Long-term debt: The fair value of long-term debt is estimated based on quoted market prices or using discounted cash flow analysis based on the current incremental borrowing rates for similar types of borrowing arrangements. The fair values and the corresponding carrying amounts of long-term debt, including the current portion, were ¥368,455 million ($2,749,664 thousand) and ¥370,226 million ($2,762,881 thousand), respectively, as of March 31, 2023 and ¥439,508 million and ¥439,313 million, respectively, as of March 31, 2022.

The fair values of long-term debt as of March 31, 2023 and 2022 were classified as Level 2. The fair value hierarchy that prioritizes the inputs used in valuation techniques is described in Note 20 "Fair Value Measurement".

Derivative financial instruments: The fair values of forward currency exchange contracts, currency swaps, cross currency interest rate swaps and interest rate swaps are estimated based on the market prices obtained from financial institutions or third parties, which are measured by observable inputs. The fair values and the carrying amounts of these derivative assets were ¥5,983 million ($44,649 thousand) and ¥11,739 million, and those of derivative liabilities were ¥1,475 million ($11,007 thousand) and ¥5,609 million, as of March 31, 2023 and 2022, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of investment securities, trade accounts receivable and lease receivables, and derivatives.

Investment securities are exposed to risks such as fluctuations in market value, but the Company periodically reviews market values and the financial positions of the issuers and performs ongoing evaluations of holdings.

Trade accounts receivable and lease receivables are exposed to credit risks because they include the trade accounts receivable and lease receivables from certain major customers. However, the Company manages this risk by maintenance of customer's guarantee deposits and ongoing performance of credit evaluations. An allowance for doubtful accounts is maintained at a level which the Company believes is sufficient to cover potential losses.

20. Fair Value Measurement

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 3: Unobservable inputs to the valuation techniques which are significant to the measurement of fair value of assets or liabilities.

	2023
	Level 1	Level 2	Level 3	Total
	(Millions of yen)
Assets:
Investment securities
Stocks	¥ 56,565	¥ -	¥ -	¥ 56,565
Investment trusts, etc.	-	-	3,634	3,634
Short-term derivative assets
Forward currency exchange contracts	-	156	-	156
Currency swaps	-	28	-	28
Cross currency interest rate swaps	-	3,474	-	3,474
Other	-	2,325	-	2,325
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	255	-	255
Currency swaps	-	1,106	-	1,106
Long-term derivative liabilities
Currency swaps	-	114	-	114
Other non-current liabilities
Contingent consideration	-	-	323	323

	2022
	Level 1	Level 2	Level 3	Total
	(Millions of yen)
Assets:
Investment securities
Corporate bonds	¥ -	¥ 499	¥ -	¥ 499
Stocks	90,659	-	-	90,659
Investment trusts, etc.	-	-	3,481	3,481
Short-term derivative assets
Forward currency exchange contracts	-	1,167	-	1,167
Other	-	6,425	-	6,425
Long-term derivative assets
Cross currency interest rate swaps	-	2,044	-	2,044
Other	-	2,103	-	2,103
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	1,138	-	1,138
Currency swaps	-	3,056	-	3,056
Interest rate swaps	-	105	-	105
Long-term derivative liabilities
Forward currency exchange contracts	-	2	-	2
Currency swaps	-	1,308	-	1,308
Other non-current liabilities
Contingent consideration	-	-	323	323

	2023
	Level 1	Level 2	Level 3	Total
	(Thousands of U.S. dollars)
	(Note 3)
Assets:
Investment securities
Stocks	$ 422,127	$ -	$ -	$ 422,127
Investment trusts, etc.	-	-	27,119	27,119
Short-term derivative assets
Forward currency exchange contracts	-	1,164	-	1,164
Currency swaps	-	209	-	209
Cross currency interest rate swaps	-	25,925	-	25,925
Other	-	17,351	-	17,351
Liabilities:
Short-term derivative liabilities
Forward currency exchange contracts	-	1,903	-	1,903
Currency swaps	-	8,254	-	8,254
Long-term derivative liabilities
Currency swaps	-	851	-	851
Other non-current liabilities
Contingent consideration	-	-	2,410	2,410

Changes in assets and liabilities classified as the fair value hierarchy Level 3 for the years ended March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Assets
Balance, as of April 1	¥3,481	¥2,432	$25,977
Gains or losses
Net income (Note 1)	51	1,676	381
Purchases	105	505	783
Disposal and settlements	(3)	(80)	(22)
Other (Note 2)	-	(1,052)	-
Balance, as of March 31	¥3,634	¥3,481	$27,119
Liabilities
Balance, as of April 1	¥ 323	¥ -	$ 2,410
Gains or losses
Net income (Note 1)	-	323	-
Balance, as of March 31	¥ 323	¥ 323	$ 2,410

(Note 1) Gains or losses recognized in net income are mainly presented in "Selling, general and administrative" and "Other, net" in the consolidated statements of income. Those gains or losses related to assets and liabilities held by the Company at the end of year were ¥51 million ($381 thousand) and ¥1,353 million for the years ended March 31, 2023 and 2022, respectively.

(Note 2) Other mainly includes transfer to investments accounted for by the equity method.

For the years ended March 31, 2023 and 2022, assets and liabilities measured at fair value on a nonrecurring basis were not material.

21. Finance Receivables

Finance Receivables and Allowance for Doubtful Finance Receivables

The following table provides the roll-forward of allowance for doubtful finance receivables (excluding trade accounts receivable due within one year) for the years ended March 31, 2023 and 2022, and the breakdown of balances as of March 31, 2023 and 2022.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Allowance for doubtful finance receivables:
Balance, as of April 1	¥(7,240)	¥(8,423)	$(54,030)
Charge-offs	1,284	1,479	9,582
(Provisions)/Reversal	1,235	348	9,217
Other	(244)	(644)	(1,821)
Balance, as of March 31	¥(4,965)	¥(7,240)	$(37,052)
Ending balance: individually evaluated for impairment	(2,832)	(4,123)	(21,134)
Ending balance: collectively evaluated for impairment	(2,133)	(3,117)	(15,918)

Information about finance receivables, excluding trade accounts receivable due within one year, as of March 31, 2023 and 2022 is as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Finance receivables:
Balance, as of March 31	¥95,525	¥105,871	$712,873
Ending balance: individually evaluated for impairment	2,853	4,296	21,291
Ending balance: collectively evaluated for impairment	92,672	101,575	691,582

There were no significant purchases or sales in finance receivables occurred during the year ended March 31, 2023.

Past Due Finance Receivables

Past due finance receivables, excluding trade accounts receivable due within one year, as of March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
31-90 days	¥ 610	¥ 795	$ 4,552
Greater than 90 days	3,207	4.305	23,933
Total	¥3,817	¥5,100	$28,485

22. Revenue

Costs incurred by the Company in connection with sales incentives related to purchase or promotion of the Company's products are classified as reduction of revenue. Such costs include the estimated cost of promotional discounts and dealer volume rebates. These costs are mainly based on claims from customers / dealers or amount calculated in accordance with agreements to the extent that there is likely to be no significant reversal of cumulative revenue recognized.

Revenue Recognized from Contracts with Customers and Other Sources

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Revenue recognized from contracts with customers	¥2,758,664	¥2,439,664	$20,587,045
Revenue recognized from other sources	100,377	86,109	749,082
Total	¥2,859,041	¥2,525,773	$21,336,127

Revenue recognized from other sources is revenue recognized from lease commitments.

Association between Disaggregated Revenue, Segment Revenue and Timing of Satisfaction of Performance Obligations

The disaggregated revenue by geographic segment, attributed to the locations of the external customers, is as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Japan	¥1,026,295	¥ 991,885	$ 7,658,918
The Americas	656,909	522,362	4,902,306
Europe	430,350	337,408	3,211,567
Asia and others	745,487	674,118	5,563,336
Revenue total	¥2,859,041	¥2,525,773	$21,336,127

Of revenue for the year ended March 31, 2023, amounts classified as revenue recognized from other sources were ¥39,285 million ($293,172 thousand) for Japan, ¥3,846 million ($28,701 thousand) for the Americas, ¥753 million ($5,619 thousand) for Europe, and ¥56,493 million ($421,590 thousand) for Asia and others. Of revenue for the year ended March 31, 2022, amounts classified as revenue recognized from other sources were ¥24,045 million for Japan, ¥8,937 million for the Americas, ¥955 million for Europe, and ¥52,172 million for Asia and others.

The disaggregated revenue by operating segment is as follows.

Part of the solutions business related to MFPs was transferred from office solutions to business solutions and graphic communication and accordingly, information for the year ended March 31, 2022 was prepared using the classification method after the changes to the operating segments. The summary of the changes is described in Note 24 "Segment Information".

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Healthcare:
Medical systems	¥ 611,169	¥ 533,819	$ 4,560,963
Bio CDMO	194,165	150,307	1,448,992
LS solutions	112,611	117,617	840,381
Total	917,945	801,743	6,850,336
Materials:
Electronic materials	180,616	146,692	1,347,881
Display materials	70,136	94,692	523,403
Other highly functional materials	100,036	96,358	746,537
Graphic communication	341,935	292,976	2,551,754
Total	692,723	630,718	5,169,575
Business Innovation:
Office solutions	555,455	499,507	4,145,186
Business solutions	282,625	260,442	2,109,142
Total	838,080	759,949	6,254,328
Imaging:
Consumer imaging	266,866	218,967	1,991,537
Professional imaging	143,427	114,396	1,070,351
Total	410,293	333,363	3,061,888
Revenue total	¥2,859,041	¥2,525,773	$21,336,127

Of revenue for the year ended March 31, 2023, amounts classified as revenue recognized from other sources were ¥3,097 million ($23,112 thousand) for medical systems, ¥1,843 million ($13,754 thousand) for bio CDMO, ¥9,150 million ($68,284 thousand) for graphic communication, ¥61,948 million ($462,299 thousand) for office solutions, ¥22,313 million ($166,515 thousand) for business solutions, and ¥2,026 million ($15,119 thousand) for consumer imaging. Of revenue for the year ended March 31, 2022, amounts classified as revenue recognized from other sources were ¥3,224 million for medical systems, ¥7,165 million for bio CDMO, ¥8,471 million for graphic communication, ¥44,908 million for office solutions, ¥20,569 million for business solutions, and ¥1,772 million for consumer imaging.

(1) Healthcare

In the Healthcare segment, primarily for sale of materials for medical systems such as X-ray films, revenue is recognized when goods are delivered or shipped to customers, depending on the timing of title and risk transfer from the Company to customers. For certain equipment which requires customer acceptance such as digital endoscopes and ultrasound imaging and diagnostic systems, revenue is recognized when equipment is installed and customer acceptance is obtained. In addition, revenue from provision of maintenance services for medical systems, etc. is recognized when the services are provided to customers. In the bio CDMO business, for certain contracts for which there is no potential for transfer and which have an enforceable right to receive payment from the customer for completed performance, revenue is recognized for the performance in the current year according to the progress based on costs.

(2) Materials

In the Materials segment, for sale of electronic materials such as semiconductor processing materials, display materials such as protective films for polarizers, reagents, highly functional materials such as magnetic tapes for computers, and materials for graphic systems such as CTP plates, revenue is recognized when goods are delivered or shipped to customers, depending on the timing of title and risk transfer from the Company to customers. For certain equipment which requires customer acceptance, including inkjet equipment such as Inkjet Digital Presses, revenue is recognized when equipment is installed and customer acceptance is obtained.

(3) Business Innovation

In the Business Innovation segment, primarily for certain equipment which requires customer acceptance, including equipment such as digital MFPs, revenue is recognized when equipment is installed and customer acceptance is obtained. In addition, mainly managed print services and business process outsourcing services are provided as services. Revenue from these services is recognized when the services are provided to customers.

(4) Imaging

In the Imaging segment, primarily for sale of instant photo systems, color films, color paper for photo printing, and digital cameras, revenue is recognized when goods are delivered or shipped to customers, depending on the timing of title and risk transfer from the Company to customers. In addition, primarily for provision of services for photo printing, revenue is recognized when the services are provided to customers.

Contract Balance

The breakdown of contract balances as of March 31, 2023 and 2022 is as follows.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Receivables from
contracts with customers	¥578,744	¥535,179	$4,318,985
Contract liabilities	98,355	138,968	733,993
Contract assets	36,006	21,666	268,701

Revenue recognized from the satisfaction (or partial satisfaction) of performance obligations in past periods was not material for the years ended March 31, 2023 and 2022.

Primary changes in contract liabilities for the years ended March 31, 2023 and 2022 are as follows:

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Revenue recognized that was included in contract liability balance at beginning of year	¥ 112,941	¥ 75,401	$842,843
Increase due to receipt of cash, excluding revenue recognized during year	76,350	104,876	569,776

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2023, the transaction price allocated to unsatisfied performance obligations for contracts with an individual estimated contract period exceeding one year is ¥239,298 million ($1,785,806 thousand). This transaction price primarily relates to maintenance service contracts for equipment sold to customers. This transaction price is expected to be recognized as revenue over a period of approximately one to five years. In addition, the relevant disclosure is omitted for contracts with an individual estimated contract period of less than one year.

Assets Recognized from the Costs to Obtain or Fulfill a Contract with a Customer

The costs to fulfill contracts capitalized by the Company include expenses for surveys performed to optimize overall print environments of printer devices for offices which are conducted before providing outsourcing services, including maintenance, for printing devices within offices in the Business Innovation segment. These assets are amortized equally over a period of approximately one to ten years based on the estimated contract period. In addition, when the amortization period of the asset to be identified is within one year, practical expedients are applied and the incremental cost of the contract is expensed as incurred.

	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Assets recognized from the costs to obtain contracts	¥ 2	¥ 4	$ 15
Assets recognized from the costs to fulfill contracts	1,668	2,035	12,448
Total	¥1,670	¥2,039	$12,463

Aggregate amortization expenses for identifiable assets acquired from the cost of contract for the years ended March 31, 2023 and 2022 were ¥1,003 million ($7,485 thousand) and ¥1,368 million, respectively.

23. Sale of Business

Sale of Electronic Medical Record and Medical-Receipt Systems Related Business

On March 31, 2023, FUJIFILM Healthcare Corporation, a consolidated subsidiary of the Company, entered into a share transfer agreement with Wemex Corporation to sell all outstanding shares of a new company, a wholly owned subsidiary to be established by FUJIFILM Healthcare Corporation, to which the electronic medical record and medicalreceipt systems related business of FUJIFILM Healthcare Systems Corporation, is succeeded. The transfer is scheduled for October 2023.

As of March 31, 2023, the Company reclassified assets and liabilities to be transferred to Wemex Corporation to assets and liabilities held for sale. Assets of ¥9,462 million ($70,612 thousand), primarily comprised of goodwill and trade accounts receivable, are included in "Prepaid expenses and other" under current assets, and liabilities of ¥3,339 million ($24,918 thousand), primarily comprised of notes and accounts payable - trade, are included in "Other current liabilities" under current liabilities, in the consolidated balance sheets.

24. Segment Information

Operating Segments

The Company's following four operating segments reflect how management reviews operating results and makes decisions about allocation of resources, and are determined based upon similarity in manufacturing technology, manufacturing processes, distribution methods and markets.

The Healthcare segment develops, manufactures, sells and provides services of equipment and materials for medical systems, contract development and manufacturing organization of biopharmaceuticals, iPS cells (regenerative medicine), drug discovery support such as cell culture media and reagents, pharmaceuticals, cosmetics and supplements, and other related products. The Materials segment develops, manufactures, sells and provides services of electronic materials, display materials, industrial equipment, fine chemicals, recording media, equipment and materials for graphic communication, inks and industrial inkjet printheads, and other related products. The Business Innovation segment develops, manufactures, sells and provides services of digital MFPs, solutions and services, and other related products. The Imaging segment develops, manufactures, sells and provides services of instant photo systems, color films, services and equipment for photofinishing, digital cameras, optical devices, and other related products.

On July 1, 2022, FUJIFILM Business Innovation Corp. made an organizational change and established a new organization in charge of business strategy and promotional function for each of MFP/printer business (office solutions) and solutions and services business (business solutions). Accordingly, the professional-use multifunction device business was transferred from the Business Innovation segment to the Materials segment. Segment information for the year ended March 31, 2022 was prepared using the classification method after the changes to the operating segments.

a. Revenue

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Healthcare:
External customers	¥ 917,945	¥ 801,743	$ 6,850,336
Intersegment	93	94	694
Total	918,038	801,837	6,851,030
Materials:
External customers	692,723	630,718	5,169,575
Intersegment	1,241	1,373	9,261
Total	693,964	632,091	5,178,836
Business Innovation:
External customers	838,080	759,949	6,254,328
Intersegment	9,002	3,846	67,179
Total	847,082	763,795	6,321,507
Imaging
External customers	410,293	333,363	3,061,888
Intersegment	2,290	2,425	17,090
Total	412,583	335,788	3,078,978
Eliminations	(12,626)	(7,738)	(94,224)
Consolidated total	¥2,859,041	¥2,525,773	$21,336,127

b. Segment profit or loss

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Operating income:
Healthcare	¥ 100,507	¥ 100,536	$ 750,052
Materials	67,729	68,380	505,440
Business Innovation	69,491	57,920	518,590
Imaging	72,876	36,977	543,851
Total	310,603	263,813	2,317,933
Corporate expenses and eliminations	(37,524)	(34,111)	(280,030)
Consolidated operating income	273,079	229,702	2,037,903
Other income (expenses)	9,145	30,744	68,246
Consolidated income before income taxes	¥282,224	¥260,446	$2,106,149

c. Total assets

	March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Total assets:
Healthcare	¥1,739,911	¥1,439,651	$12,984,410
Materials	1,083,811	1,073,758	8,088,142
Business Innovation	946,508	915,893	7,063,493
Imaging	293,891	287,269	2,193,216
Total	4,064,121	3,716,571	30,329,261
Eliminations	(16,508)	(9,842)	(123,194)
Corporate assets	86,698	248,551	647,000
Consolidated total	¥4,134,311	¥3,955,280	$30,853,067

d. Other significant items

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Depreciation and amortization:
Healthcare	¥ 50,236	¥ 44,541	$ 374,896
Materials	33,036	32,364	246,537
Business Innovation	42,248	38,997	315,284
Imaging	14,079	14,121	105,067
Total	139,599	130,023	1,041,784
Corporate expenses	2,616	2,976	19,522
Consolidated total	¥142,215	¥132,999	$1,061,306
Capital expenditures:
Healthcare	¥219,655	¥103,896	$1,639,216
Materials	44,817	31,694	334,455
Business Innovation	12,646	12,124	94,373
Imaging	9,569	5,534	71,411
Total	286,687	153,248	2,139,455
Corporate expenses	1,619	1,982	12,082
Consolidated total	¥288,306	¥155,230	$2,151,537

Geographic Segments Information

a. Revenue

Revenue from external customers, which are attributed to the location of the customers, for the years ended March 31, 2023 and 2022 are as follows:

	Year ended March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Japan	¥1,026,295	¥ 991,885	$ 7,658,918
The Americas	656,909	522,362	4,902,306
Europe	430,350	337,408	3,211,567
Asia and others	745,487	674,118	5,563,336
Consolidated total	¥2,859,041	¥2,525,773	$21,336,127

Revenue of The Americas is primarily related to operations in the United States.

b. Long-lived assets

Long-lived assets as of March 31, 2023 and 2022 are as follows:

	March 31
	2023	2022	2023
	(Millions of yen)		(Thousands of U.S. dollars)
			(Note 3)
Japan	¥369,407	¥358,398	$2,756,769
The Americas	244,704	137,069	1,826,149
Europe	293,885	180,298	2,193,171
Asia and others	68,115	61,074	508,321
Consolidated total	¥976,111	¥736,839	$7,284,410

Long-lived assets of The Americas are primarily related to operations in the United States.

Major Customers and Other Information

No single customer of the Company accounted for more than 10% of consolidated revenue for each of the years ended March 31, 2023 and 2022.

25. Subsequent Events

Issuance of Commercial Paper

The Company issued commercial paper to secure working capital.

(1)	Issue date: April 14, 2023
(2)	Total amount of issue: ¥125,000 million ($932,836 thousand)
(3)	Interest rate: 0% per annum
(4)	Redemption date: June 28, 2023
(5)	Secured or not: Unsecured and unguaranteed

Acquisition of CMC Materials KMG Corporation

The Company entered into a share purchase agreement on May 10, 2023 to acquire all shares of CMC Materials KMG Corporation, that operates semiconductor process chemical business globally and a group company of Entegris, Inc., a U.S. semiconductor materials manufacturer, for US$0.7 billion in order to accelerate the growth of the electronic materials business. The accounting treatment related to this acquisition has not been completed at this time.

Chapter 01

The Fujifilm Group's Value Creation

CONTENTS

Message from the CEO

Evolution of Innovation

The Fujifilm Group's Proprietary Technologies

Value Creation Process

Frameworks to Continue to Generate Innovation and Sources of Value

The Fujifilm Group's Future Vision

Medium- to Long-Term Risks/Opportunities and Materiality

Overview of Our Businesses

Financial Highlights

Non-Financial Highlights

Message from the CEO

The source of our execution capability is our "burning desire."

We will continue embracing the challenge of business transformation by firmly planting the seeds for "Creating the future of the Fujifilm Group."

FUJIFILM Holdings Corporation

Teiichi Goto, President and CEO, Representative Director

By increasing our speed and agility, we achieved the targets of VISION2023 one year ahead of schedule. The ability of our frontline staff to deliver results has become our corporate strength.

Fiscal 2022 in Review

In the year under review, the global economy remained unstable and uncertain due to geopolitical risks, continued inflation and other factors. The Fujifilm Group also faced a challenging business environment, as it did in the previous fiscal year, affected by soaring resource and energy prices and tight supply-demand conditions for semiconductors and other materials. Despite the challenges, however, we posted recordhigh figures for both revenue and operating income. Moreover, we achieved the revenue and income targets of our mediumterm management plan, VISION2023, one year ahead of schedule.

I attribute these results to the persistent efforts of each and every Fujifilm Group employee to resolve issues. Fiscal 2022 was a year in which we gained ground as a company that can deliver results by turning risks into opportunities and taking prompt and appropriate preemptive action. In the 2000s, the rapid shrinkage of the photographic film market has caused the Group to lose its core business and prompted it to change its business structure. This experience gave us "speed" and "agility," which will greatly help us enhance our corporate value in the future. As we transformed our business structure, we also strengthened our STPD (See-Think-Plan-Do) business cycle, which begins with the collection and analysis of information (See), followed by the identification of essential issues (Think), the formulation of action plans (Plan) and the resolute implementation of those plans (Do). By deploying DX, AI and other technologies to accelerate this cycle, we can break away from "industry paradigms" that are rooted in the subconscious of individuals and the "inertia" that tends to occur in large organizations. I believe that this sense of speed will help us achieve "swift differentiation," which is the most effective way to gain a competitive advantage.

Starting in my 30s, I spent 17 years in Vietnam, Singapore and China. During that time, I gained a wide range of business experience, which has been the foundation of my career since then. One of the most memorable experiences was when I was assigned to Vietnam, where I established an office by myself and even built a processing plant for photographic film and photographic paper. While stationed in Singapore, I was responsible for sales and marketing of all Fujifilm businesses at the time, including photography, medical and printing-related businesses throughout Asia, including India, Bangladesh, Indonesia and Pakistan. In addition, I worked to expand our medical business in China as the head of that business. All the challenges I have taken on have shaped me into the person I am today as I strengthened bonds with various people. At the time, however, strategies and plans formulated on the business front lines were difficult to understand correctly by people in the head office in Japan, which was a long distance away. This sometimes slowed the speed of our business activities. Since then, I have focused on evolving and developing our business by seeing with my own eyes, using my sense of smell and understanding the key aspects of our business based on the belief that "the truth lies in the field." As the COVID-19 pandemic has subsided, I have been visiting offices and customers around the world to engage in meaningful discussions. Since July 2022, I have visited more than 30 business locations in 17 countries/regions. In the process, I have become more confident than ever in our strategy of leveraging the Healthcare and Advanced Materials segments to achieve growth of the Group. To lay the groundwork for sustainable growth, we have continued investing aggressively. In the three-year period of VISION2023, for example, we significantly increased the amount earmarked for capital investment, from ¥750 billion in the original plan to ¥1,121.4 billion.

In the Medical Systems business, we are actively working on areas where we can use DX to improve the quality of medical care. One example is the acquisition of the digital pathology division of Inspirata, Inc., a U.S. company that develops and sells software for digital pathology diagnoses. This marked our full-scale entry into the digital pathology business.

In the Life Sciences business (including the Bio CDMO business), we are expanding production capacity to meet strong demand for biopharmaceuticals, with plans to complete a large-scale facility at our Denmark site by the end of fiscal 2023. We will also introduce new large-scale facilities at our North Carolina site in fiscal 2025 and our Denmark site in fiscal 2026. In addition, we are constructing a new facility in Toyama Prefecture with the aim of starting operations at our first Japanese site.

In the Electronic Materials business, we are currently building a state-of-the-art facility for making CMP slurry in Kumamoto Prefecture, Japan. The aim in building the facility, the first of its kind in Japan for the Company, is to stably produce and supply high-quality materials under a global production system. Meanwhile, in May 2023 we announced our decision to acquire the semiconductor-use high-purity process chemicals business of U.S.-based Entegris, Inc. for US$700 million (about ¥95 billion). This is our largest acquisition deal since I became CEO in 2021. Our decisions to make these large investments were based on our conviction that the biopharmaceutical and semiconductor markets will grow faster in the medium to long term than we had assumed when we formulated VISION2023. These decisions were made after careful consideration of each market situation and after identifying winning opportunities to quickly address growing demand and bolster earnings at an early stage. These are the seeds that I planted for "Creating the future of the Fujifilm Group," my stated mission when I became CEO, which will lead to our next stage of growth.

I have focused on evolving and developing our business by seeing with my own eyes, using my sense of smell and understanding the key aspects of our business based on the belief that "the truth lies in the field."

Positioning of Fiscal 2023

Evolving into a "Profitable Company" in the Lead-up to Fiscal 2030

Fiscal 2023, the final year of VISION2023, is also an important year for formulating our next medium-term management plan aimed at achieving our long-term CSR plan, Sustainable Value Plan 2030 (SVP2030), ending in fiscal 2030. In fiscal 2030, we are targeting consolidated revenue of more than ¥3.5 trillion, of which the Healthcare business will account for ¥1.75 trillion, or roughly half. To achieve these long-term targets, the Fujifilm Group needs to further improve the earning power of each of its businesses. To this end, I will focus on further enhancing the "earning power" of each business. Specifically, we will create high-value-added products and services and new business models and work to improve productivity, with the aim of becoming a "profitable company" that continues growing and providing value to society through its business. In fiscal 2023, the final year of VISION2023, we have raised our targets to record-high figures: revenue of ¥2,950 billion, operating income of ¥290 billion and net income attributable to FUJIFILM Holdings of ¥225 billion. By broadly applying the technological capabilities cultivated over the years to all its businesses, the Fujifilm Group will help resolve social issues from various angles. As a group, we are off to a good start in fiscal 2023 as each business continues introducing highly competitive and differentiated new products and services to the market.

In the Medical Systems business, we acquired the diagnostic imaging business of Hitachi, Ltd. in March 2021 and relaunched it as FUJIFILM Healthcare. Since then, we have taken various measures in rapid succession to maximize Group synergies. For example, we increased synergies on the sales side through the integration of local subsidiaries in the United States, Asia-Pacific and Europe, and on the product development side with the launch of CT and ultrasound diagnostic systems equipped with functions developed using Fujifilm's AI technology. In fiscal 2023 (third year after the acquisition) and fiscal 2024, we will reorganize Japanese Group companies involved in business strategy planning, R&D, and sales and maintenance services, which were previously dispersed among domestic Group companies. Our aim is to maximize synergies, accelerate business growth and further enhance the Group's comprehensive strengths.

Under the REiLI brand utilizing our unique image processing and AI technologies, we will further expand our business by developing and commercializing AI technology to support workflow in the medical field. Using AI technology, for example, we developed software that received Japan's first pharmaceutical approval as a medical device to support endoscopic diagnosis in the upper gastrointestinal tract area, which improves the efficiency of testing and the quality of medical care. We will continue creating innovations that help people maintain and improve their health.

Through these efforts, in the Medical Systems business we are targeting revenue of ¥1 trillion and an operating margin in the high 10% range in fiscal 2030. To this end, we must achieve our interim revenue target of ¥700 billion in fiscal 2026.

The Bio CDMO business posted year-on-year revenue growth in fiscal 2022. However, this business was impacted by increased costs due to higher-than-expected inflation, which led to a year-on-year decline in income and thus presents a challenge going forward. Our aim is to grow the Bio CDMO business into a pillar of our Healthcare business by fiscal 2030. To this end, we will first complete the expansion of API manufacturing facilities and the construction of a new formulation manufacturing line at our Denmark site by the end of fiscal 2023 to strengthen our business foundation. We will also aggressively invest in facilities in the United States and Europe to further strengthen our product development and contract manufacturing systems for various biopharmaceuticals, including antibody drugs, gene therapies and vaccines, while further accelerating the growth of our Bio CDMO business.

In materials, our Electronic Materials business has been affected by the softening semiconductor market, but we anticipate strong market growth in the medium- to long-term, including for generative AI applications. To this end, we will accelerate business growth by strengthening our global manufacturing and supply system without slowing our investment plans, including for the construction of new plants for cutting-edge semiconductor materials in Taiwan and Europe.

Sustainability

Thoughts on Realizing SVP2030 to Create a Sustainable Society

To create a sustainable society, companies must tackle a wide range of issues head-on, such as climate change mitigation, resource recycling and biodiversity conservation, while emphasizing respect for human rights and responsible supply chain management. To realize SVP2030, with fiscal 2030 as the goal, we are advancing our business activities from the two angles of "resolving social issues through our business activities" and "reducing and considering negative impacts on society and the environment caused by our business activities." We have identified the Environment, Health, Daily Life and Work Style as our four priority areas. Going forward, we will promote the growth of both social and economic value by utilizing digital technology to accomplish our tasks. Of these, my top priorities are the Environment and Health.

With respect to the environment, we aim to achieve a decarbonized society by reducing CO ₂ emissions from the energy we use and from the entire life cycle of our products by 50% in fiscal 2030 compared with fiscal 2019. For capital investments and other decisions, we introduced an "Internal Carbon Pricing System ^* " and achieved a 10% reduction in CO ₂ emissions from in-house energy use in fiscal 2022 compared with fiscal 2019. Looking ahead, we will accelerate green transformation (GX) via the newly established GX Committee, a subordinate organization of the ESG Committee, which I chair. We will also use internal carbon pricing, which is based on the carbon price of the EU Emissions Trading Scheme (EU-ETS), in important aspects of our business activities, such as capital investment and M&As. In some cases, investments in M&As and production capacity expansion might lead to increased CO ₂ emissions as the projects are implemented. Nevertheless, we will closely check to ensure that new cash generated by these investments can be earned at a level that exceeds our internal standards over the medium to long term, even after subtracting the carbon price. At the same time, we are developing measures that require investment, such as using electricity from renewable energy sources with an emphasis on scalability and developing innovative production processes that reduce energy consumption.

^* A system that promotes low-carbon business activities by allowing companies to set their own internal carbon prices, convert CO ₂ emissions into cost equivalents, quantify the economic impact of increases or decreases in emissions and reflect this information in their decision-making processes.

In the area of health, our aim is to help improve access to healthcare in emerging countries. One project is our NURA health screening centers focusing on cancer screening. I launched the first center as general manager of the Medical Systems Division before assuming the position of CEO. The NURA centers assist with doctors' diagnoses and provide health checkup services by utilizing Fujifilm's medical equipment, featuring high-definition diagnostic images and diagnostic imaging AI technology. We currently operate three NURA centers in India, serving more than 12,000 people (as of August 31, 2023). In September 2023, we opened a NURA center in Ulaanbaatar, Mongolia, and plan to open a new center in Hyderabad, India, in November. To expand into Southeast Asia, the Middle East and Africa, we will continue forming technology partnership agreements with local companies in the countries involved in addition to developing our own business. By fiscal 2030, we will expand the number of centers to 100 worldwide, mainly in emerging countries. Our aim is to help people maintain and improve their health by spreading the Japanese culture of regular health checkups and prevention measures to other countries.

Committed to ending tuberculosis (TB), we are promoting the use of compact and lightweight portable X-ray equipment that enables TB screening in suburban and mountainous areas without electric power infrastructure. By visualizing the global TB epidemic status using cloud computing based on data from TB screening conducted in each region, our vision is to help control TB in each country and region. To make this happen, we have started a project in India to combat TB in collaboration with the government and academia. We will continue fulfilling our responsibility by providing distinctive products and services that help eliminate medical disparities and maintain and improve the health of people around the world.

Protecting the health of employees is another important strategic theme for the Fujifilm Group's development. As part of this effort, we opened the Fujifilm Group Health Insurance Association's "FUJIFILM Mediterrace Yokohama," a health screening center for Fujifilm Group employees, in April 2022. The center uses our state-of-the-art endoscopes, medical equipment (including for mammograms) and AI-based medical IT systems to provide Fujifilm Group employees with the opportunity to receive high-quality health checkups. Our efforts to provide environments in which employees can work vigorously both mentally and physically have been highly evaluated by external sources. For example, FUJIFILM Holdings was selected as a Health and Productivity Stock for the third consecutive year in a program run jointly by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.

Human and Intellectual Capital

Targeting Further Growth of Employees and the Fujifilm Group

The Fujifilm Group has achieved change and growth to date because of the "individual powers" of its highly motivated employees. Our competitiveness is underpinned by our diverse technologies, know-how and frontline capabilities that have continued to generate intellectual property. We are proud of these attributes. When employees in Japan and overseas share our corporate philosophy and vision and take pride in their work, this creates additional value and helps realize a sustainable society. As we welcome new employees to the Group through M&As, we are keenly aware of the need to continually improve engagement. The Fujifilm Group Employee Engagement Survey, conducted in December 2022, received responses from 90% of Group employees worldwide and resulted in an engagement score of 80% (percentage of positive responses). Analysis of the survey results revealed that while our strengths lie in our employees' deep understanding and empathy for the Group's vision and high awareness of compliance, there is also room for improvement in promoting productive work styles and diversity. Based on the results of the survey, we need to engage in discussion at each workplace and incorporate the results into specific measures to ensure that employees are highly motivated to work. Accordingly, we will put a system in place to firmly establish a cycle that will foster the further growth of the Fujifilm Group and the employees who work there.

To rapidly advance business activities aimed at realizing a sustainable society, which is our objective, we use data to optimize human resource allocations, in addition to conducting various programs to develop DX and AI human resources. Using DX, we will dramatically boost employee productivity while increasing the amount of time they spend creating products and services that provide new value to customers and help resolve social issues, while conducting work-style reforms to improve work efficiency.

To Our Stakeholders

Burning Desire:

The Source of Our Execution Capability

Clean water and air are essential for manufacturing photographic film, which was the starting point of our founding. Because customers cannot test photographic film before taking photos, it was a product that customers purchased with "trust." Therefore, the Fujifilm Group's corporate culture is rooted in ESG concepts, such as environmental conservation, stakeholder trust and communication with the community. Our business structure has undergone a major shift along with the changing needs and values of society. Nevertheless, we will continue emphasizing a spirit of challenge as a company that creates change for the better in society.

At the start of fiscal 2023, I called on our employees to "act with a burning desire." When trying to accomplish something, a "burning desire" provides the power to overcome any difficulties. My "burning desire" is to achieve the goals of SVP2030. Aggressive investment in growth areas is part of this effort, and we will continue embracing challenges to make our business blossom. We will continue striving to be a company that always provides value to society. We look forward to your continued support of the Fujifilm Group.

As the needs and values of society change, we will continue to make positive changes for society by transforming our business structure.

Evolution of Innovation

From our founding in 1934 to the present, we have continued to develop our proprietary core technologies to continually accumulate a competitive advantage by leveraging our base technologies. Here, we will explain the history of innovation in the Fujifilm Group, which has promoted a growth strategy by consistently anticipating the future.

The Fujifilm Group has been providing society with a large number of products and solutions that contribute to solving social issues by combining its core technologies and acquiring new technologies.

The Fujifilm Group's Proprietary Technologies

The process of completing a single photograph is made up of a wide variety of advanced, proprietary technologies. The Fujifilm Group has cultivated technological capabilities with a competitive advantage through the research and development of silver halide photography.

Value Creation Process

By leveraging its invested capital to create value through innovation, the Fujifilm Group has worked to resolve social issues through our business activities and consider the environment and society in our business processes. We will continue co-creating value with society and thus help realize a sustainable society.

Frameworks to Continue to Generate Innovation and Sources of Value

The Fujifilm Group's Future Vision

Please refer to pp.9-12 of our Sustainability Report 2023 for details. -https://holdings.fujifilm.com/en/sustainability/report

Medium- to Long-Term Risks/Opportunities and Materiality

We are working to achieve the goals of SVP2030 by identifying risks and opportunities from megatrends and identifying materialities and KPIs.

Megatrends that have an impact on materiality

Emerging risks of large-scale natural disasters and infectious disease pandemics, changes in the global environment and ecosystems due to climate change, and depletion of energy and resources

Unstable political and economic conditions, heightened geopolitical risks due to escalating conflicts, and widening disparities between countries and regions

Declining birth rates and aging populations globally, declining workforces, changes in work styles and retirement security due to the advent of the 100-year life era; growing interest in healthy life expectancy

Increasing concern about human rights, diversification of individual values and emphasis on diversity in organizations

Rapid advances in technology, rise of new lifestyles/businesses due to DX and rising cyber risks

Priority issues (Materiality)	Opportunities	Risks	Major KPIs
Environment 1 Address climate change 2 Promote recycling of resources 3 Address energy issues with the aim of realizing a decarbonized society 4 Ensure product and chemical safety	• Growing need for efficient, energysaving, low-cost storage of large volumes of data in the era of big data • Increasing demand for systems, products and technologies to monitor and forecast weather conditions and diagnose deterioration of infrastructure, including buildings and water sources, in response to abnormal weather events • Need to incorporate CO ₂ emission reduction initiatives (such as use of low power consumption products and preference for carbon-free production) into customers' procurement criteria • Increasing need to use water-free products (including process-less printing plates) due to growing concern about water resources	• Disruption of supply chains, plant shutdowns and lack of water needed for production due to abnormal weather (e.g ., heavy rains, floods, droughts) and natural disasters caused by rising temperatures • Shortage of raw materials for products (pulp for paper, cellulose for film) due to depletion of forests and plants • Levying a carbon tax on CO ₂ generated when fossil fuels are used and the accompanying cost increases - Please refer to p.73 for climate change measures.	• CO ₂ emission reduction rate from in-house energy • CO ₂ emission reduction rate over product life cycle • Ratio of sales of environmentally friendly products/ services to net sales • Contribution to CO ₂ emission reduction in society
Health 1 Address unmet medical needs 2 Improve accessibility to medical services 3 Contribute to early detection of disease 4 Promote enhanced health and beauty 5 Promote health management	• Growing need for IT solutions to support medical care and improve operational efficiency due to the aging population and shortage of medical personnel • Increasing unmet medical needs, mainly for cancer, rare diseases and gene therapies • Expanding market for biopharmaceuticals that deliver high efficacy with few side effects • Progressive industrialization of advanced therapies • Increasing need for vaccines and therapeutics to combat infectious disease pandemics	• Major changes in healthcare administration policies due to healthcare reforms • Strengthened laws and regulations for medical equipment • Postponement or suspension of new drug development by pharmaceutical companies and changes in the management environment amid increasing difficulty of drug discovery • Heightened competition in the biopharmaceutical process development and contract manufacturing market due to technological innovation	• No. of countries/ regions where our medical AI technology-based products/services are deployed • Ratio of Healthcare sales to total revenue • Bio CDMO tank capacity (production capacity)

Priority issues (Materiality)	Main achievements in FY2022	FY2023 (Targets)	FY2030 (Targets)	Main related segments
Environment 1 Address climate change 2 Promote recycling of resources 3 Address energy issues with the aim of realizing a decarbonized society 4 Ensure product and chemical safety	• 10% reduction in CO ₂ emissions from in-house energy use (compared with FY2019) • 6.9% reduction in CO ₂ emissions in product life cycles (compared with FY2019) • Started collaboration with TOKYO GAS CO., LTD and Minamiashigara City to aim for zero carbon models in manufacturing • Achieved carbon neutrality at multifunction device recycling sites in China • Introduced internal carbon pricing (ICP) system • Certified as an "A-list company" by the CDP, the highest evaluation in the two areas of "climate change" and "water security"	• CO ₂ emission reduction rate from in-house energy: 11% (compared with FY2019)	• CO ₂ emission reduction rate from in-house energy: 50% (compared with FY2019) • 50% reduction of CO ₂ emissions in product life cycles (compared with FY2019)	Healthcare Materials Business Innovation Imaging
Health 1 Address unmet medical needs 2 Improve accessibility to medical services 3 Contribute to early detection of disease 4 Promote enhanced health and beauty 5 Promote health management	• No. of countries/regions where our medical AI technology-based products/ services are deployed: 93 • Ratio of Healthcare sales to total revenue: 32.5% • Bio CDMO tank capacity (production capacity): 180 kL • Used IT and AI technologies to deploy products that improve workflow at medical sites • Opened a new base (Gurugram, Mumbai) for "NURA," a health checkup center focusing on cancer screening in India • Promoted TB control efforts in developing countries • To expand business in the Asian market and strengthen the Japanese vaccine production system, the Company established its first domestic Bio CDMO base in Toyama Prefecture	• No. of countries/ regions where our medical AI technology-based products/services are deployed: 100 • Achieve further growth as the largest segment • Bio CDMO tank capacity (production capacity): 337 KL	• No. of countries/ regions where our medical AI technology-based products/services are deployed: 196 • Ratio of Healthcare sales to total revenue: 50% (¥1,750.0 billion vs. total revenue of more than ¥3,500.0 billion) • Bio CDMO tank capacity (production capacity): 658 KL (FY2026)	Healthcare

Megatrends that have an impact on materiality

Priority issues (Materiality)	Opportunities	Risks	Major KPIs	Main achievements in FY2022	FY2023 (Targets)	FY2030 (Targets)	Main related segments
Daily Life 1 Help create a safe and secure society 2 Contribute to spiritual enrichment and human connections	• Expansion of related markets including the semiconductor market through the spread of new technologies such as 5G, autonomous driving and generative AI • Expanding demand for related materials due to the growth of the OLED market • Growing demand for digital printing due to increase in on-demand printing • Growth in the number of images taken and printing needs due to smartphone proliferation • Expanding demand for analog products for the digital native generation • Increasing demand for highperformance lenses due to higher-resolution images, advanced IoT technologies and the growing importance of security monitoring	• Rising raw material costs due to soaring resource prices • Raw material procurement risks and supply chain disruptions due to increased concerns about economic security and the formation of economic blocs • Commoditization of digital devices • Intensifying competition from alternative materials due to the commercialization of new technologies • Lower-than-expected demand in the offset printing market • Intensifying competition in the high-end mirrorless digital camera market • Shrinking digital camera market due to improved smartphone cameras	• Electronic Materials business: Growth rate and growth-oriented investments • Ratio of Materials sales to total revenue	• Growth rate of Electronic Materials business: 23.1% (YoY) • Ratio of Materials sales to total revenue: 23.9% • Announced the introduction of state-of-the-art equipment to produce CMP slurries in Kumamoto with the aim of building a stable semiconductor supply system • Announced the construction of a new plant for color filter materials for image sensors in South Korea	• Ratio of Materials sales to total revenue: 23.9% ^*1	• Average annual growth rate of Electronic Materials business: More than 10% by FY2030 • Achieve ¥500 billion in Electronic Materials business sales (¥250 billion by FY2024, ¥400 billion by FY2028)	Materials Imaging
Work Style 1 Create environments conducive to job satisfaction (provide solutions and services) 2 Develop and utilize diverse human resources	• Need to build and operate IT infrastructure with enhanced security/networking against the backdrop of cyberattack threats and the spread of remote working • Growing market for business solutions and services that utilize AI and the cloud for DX and improving office work productivity	• Decrease in print volumes due to entrenchment of remote working and increasing digitization of business processes • Slowing growth and declining profitability due to the maturation of the office equipment market	• Provide solutions and services that help workers improve productivity and exercise their creativity • Growth rate of Business Solutions business	• Provided 25.33 million ^*2 people with work styles that support increased worker productivity and creativity Business Solutions business growth rate: 8.5% (YoY) • Leveraged the Fujifilm brand to drive global expansion • Acquired MicroChannel Services Pty. Limited, an Australian IT services company, and began full-scale overseas development of core DX business mainly targeting small and medium-sized enterprises	• Achieve 4% annual growth (FY2020→ FY2023) in Business Solutions sales that contribute to customers' DX	• Provide 50 million people with work styles that support improved productivity and creativity	Business Innovation

^*1 Based on full-year forecasts (announced on August 9, 2023)
^*2 Revision of calculation logic from fiscal 2022

Overview of Our Businesses

The Fujifilm Group's current business portfolio was established through the evolution of innovation with our leading-edge, proprietary and advanced technologies honing the photographic film business. We aim to build a portfolio that enables us to continue innovating even if our business environment changes.

Note: Figures for revenue in the Non-destructive Inspection business have been reclassified from the Materials segment to the Healthcare segment from fiscal 2023. Information for fiscal 2022 has been restated to reflect this change in classification.

The Fujifilm Group around the World (Domestic and Overseas Revenue)

Since its founding, the Fujifilm Group has developed its business in global markets. Overseas business is "localization," in other words, a style of entering the market on one's own, discovering needs and creating the market itself. We are working to build a strong network of production, sales and services around the world, rooted in local communities.

Financial Highlights

In fiscal 2022, we posted revenue of ¥2,859.0 billion (up 13.2% year on year) and operating income of ¥273.1 billion (up 18.9% year on year), which were both record highs. We thus achieved significant increases in revenue and operating income in strong businesses such as Medical Systems, Electronic Materials, Business Innovation and Imaging.

In fiscal 2022, net income attributable to FUJIFILM Holdings was a record ¥219.4 billion (up 3.9% year on year), thanks to the contribution of the record-high operating income.

Net income attributable to FUJIFILM Holdings per share in fiscal 2022 totaled ¥547.21 (up 3.8% year on year). Cash dividend per share increased for the 13th consecutive year to ¥130, with a dividend payout ratio of 23.8%. The Company has a policy of shareholder returns that emphasizes cash dividends, targeting a dividend payout ratio of 30%.

^* Net income attributable to FUJIFILM Holdings per share is calculated based on the number of shares of common stock (excluding treasury stock) outstanding for the year.

The Fujifilm Group does business in a variety of fields. It advances research and development in priority business areas through product design integrating a wide range of fundamental and core technologies, while at the same time generating new businesses for the future.

We are making aggressive capital investments to ensure that we capture the robust demand in the biopharmaceuticals and semiconductor markets. In fiscal 2022, a total of ¥288.3 billion in capital expenditures was made.

^* The figures do not include amounts for rental equipment handled by the Business Innovation segment, etc.

In fiscal 2022, total assets were ¥4,134.3 billion (up 4.5% year on year), mainly reflecting increases in property, plant and equipment. The shareholders' equity ratio was 66.8% (up 3.5 percentage points year on year), maintaining a stable capital structure.

Non-Financial Highlights

To realize a decarbonized society, a target of the Paris Agreement, we have set CO ₂ emission reduction targets to achieve by fiscal 2030. We are working to reduce CO ₂ emissions throughout product life cycles (in raw material procurement and in product manufacturing, transportation, use and disposal). In addition, we are contributing to CO ₂ emission reductions in society through our products and services.

^* The figures are restated after fiscal 2019, the base year for the emission reduction target, by reviewing target products at each stage.

In addition to examining measures to maximize energy use efficiency and reduce CO ₂ emissions in energy procurement across the Group, we are proactively developing these measures within the Group. Our target is to switch to renewable energy at a rate of 50% of purchased electricity by fiscal 2030 and 100% by 2040, achieving zero CO ₂ emissions from all the energy that we use.

^*1 The total might not match the sum of the indicated figures.
^*2 Total of heavy oil A, heavy oil C, kerosene, light oil and gasoline
^*3 Total of natural gas, liquefied natural gas (LNG), city gas, butane and liquefied petroleum gas (LPG)
^*4 Landfill methane gas
^*5 Total of electricity generated by in-house power generators and purchased electricity

We have been using a large amount of clean water for the manufacturing of photographic films. Therefore, we have been taking actions to reduce the water intake amount and to utilize recycled water since our early days. Our goal is to reduce the Group's water usage by 30% ^* by fiscal 2030. In Kumamoto Prefecture, where Fujifilm operates a factory, we have been making efforts to protect water sources for many years. For example, we have been working with local residents to plant trees and maintain forests protecting the catchment function of the watershed in the upper reaches of the Shirakawa River.

^* Compared with fiscal 2013

In the Sustainable Value Plan 2030, the creation of frameworks and workplaces in which diverse employees can play active roles is a priority issue. To promote the success of women, we have set a goal of increasing the percentage of women in managerial positions in the Fujifilm Group to 25% by the end of fiscal 2030. Fujifilm and FUJIFILM Business Innovation have each formulated and announced a five-year action plan for promoting the success of women covering the period from April 2021 to March 2026 based on the Act on the Promotion of Women's Active Engagement in Professional Life.

^* Executive and management positions are based on the definitions used by each Group company.

To promote talented non-Japanese employees, we have set the goal of increasing the percentage of non-Japanese employees in key positions to 35% by fiscal 2030. We appoint the right people to be the leaders of our businesses in each market, regardless of their nationality.

^*1 Employees who do not have Japanese citizenship
^*2 Key positions: The positions of the presidents of major subsidiaries, general managers of departments in charge of key businesses and the like are defined as key positions. Looking at the overall Group from a global perspective, to accelerate the growth of the global business, we have reorganized our structure by adding functions that will become increasingly important as well as adding key positions in the head office, clarifying them as key positions within the Group.

In Japan, the Fujifilm Group has continued to achieve a percentage of employees with disabilities above the statutory level since fiscal 2016. We aim to maintain a percentage that is higher than the statutory level. We created operations that people with disabilities can skillfully accomplish by involving an external specialized institution (Local Vocational Centers for Persons with Disabilities) and helped those people become engaged in their jobs by working together with supporting organizations. We also continued to create workplaces where people with intellectual or mental disabilities can play active roles.

^* Starting in fiscal 2018, we disclose the rate achieved by FUJIFILM Holdings Group companies to which the special calculation rules for corporate groups apply.

30:T26094,

FUJIFILM Europe GmbH

Ratingen (vormals: Düsseldorf)

Jahresabschluss zum Geschäftsjahr vom 01.04.2022 bis zum 31.03.2023

Bilanz zum 31. März 2023

Aktiva	31.03.2023	31.03.2023	31.03.2022
	€	€	€
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	167.346,79		255.175,98
2. Geschäfts- oder Firmenwert	550.209,00		629.575,00
		717.555,79	884.750,98
II. Sachanlagen
1. Grundstücke und Bauten	4.111.930,98		5.150.095,48
2. Technische Anlagen und Maschinen	4.651.018,93		6.077.256,66
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.443.313,27		1.055.996,60
4. Geleistete Anzahlungen und Anlagen im Bau	749.597,85		725.245,49
		12.955.861,03	13.008.594,23
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	5.472.210,27		221.158,12
2. Wertpapiere des Anlagevermögens	1.500,00		39.822,01
		5.473.710,27	260.980,13
		19.147.127,09	14.154.325,34
B. Umlaufvermögen
I. Vorräte
Unfertige Erzeugnisse		990.718,69	1.269.796,04
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	38.862.128,07		52.158.443,18
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 2.078 (Vorjahr: T€ 2.952)
2. Forderungen gegen verbundene Unternehmen	19.959.084,53		20.864.067,74
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 119 (Vorjahr: T€ 119)
3. Sonstige Vermögensgegenstände	2.458.390,96		3.752.721,29
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 881 (Vorjahr: T€ 888)
		61.279.603,56	76.775.232,21
III. Kassenbestand, Guthaben bei Kreditinstituten		126.641.054,34	147.369.978,70
C. Rechnungsabgrenzungsposten		564.941,29	777.921,70
		208.623.444,97	240.347.253,99

Passiva	31.03.2023	31.03.2023	31.03.2022
	€	€	€
A. Eigenkapital
I. Gezeichnetes Kapital	52.150.000,00		52.150.000,00
II. Kapitalrücklage	50.213.284,95		50.213.284,95
III. Bilanzgewinn	8.248.488,21		11.365.084,93
		110.611.773,16	113.728.369,88
B. Rückstellungen
1. Rückstellungen für Pensionen und ähnliche Verpflichtungen	2.163.214,44		2.128.817,70
2. Steuerrückstellungen	22.066.514,29		22.084.093,64
3. Sonstige Rückstellungen	15.074.099,11		17.353.981,17
		39.303.827,84	41.566.892,51
C. Verbindlichkeiten
1. Erhaltene Anzahlungen auf Bestellungen	67.905,35		391.147,65
sämtliche mit einer Restlaufzeit bis zu einem Jahr
2. Verbindlichkeiten aus Lieferungen und Leistungen	3.607.681,66		6.234.703,49
sämtliche mit einer Restlaufzeit bis zu einem Jahr
3. Verbindlichkeiten gegenüber verbundenen Unternehmen	45.857.210,26		63.941.097,52
sämtliche mit einer Restlaufzeit bis zu einem Jahr
4. Sonstige Verbindlichkeiten	5.246.072,16		6.347.380,70
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 67 (Vorjahr: T€ 55)
davon mit einer Restlaufzeit von bis zu einem Jahr T€ 5.179 (Vorjahr: T€ 6.292)
davon aus Steuern T€ 2.747 (Vorjahr: T€ 3.887)
davon im Rahmen der sozialen Sicherheit T€ 193 (Vorjahr: T€ 286)
		54.778.869,43	76.914.329,36
D. Rechnungsabgrenzungsposten		3.928.974,54	8.137.662,24
		208.623.444,97	240.347.253,99

Gewinn- und Verlustrechnung für das Geschäftsjahr 2022/2023

	2022/2023	2022/2023	2021/2022
	€	€	€
1. Umsatzerlöse		276.540.603,19	300.161.969,23
2. Verminderung des Bestands an unfertigen Leistungen		279.077,35	4.417.463,38
3. Sonstige betriebliche Erträge		20.029.265,18	20.415.601,11
davon Erträge aus der Währungsumrechnung T€ 276 (Vj. T€ 200)
		296.290.791,02	316.160.106,96
4. Materialaufwand
a) Aufwendungen für Hilfs- und Betriebsstoffe und für bezogene Waren	163.831.084,70		180.433.252,78
b) Aufwendungen für bezogene Leistungen	57.088.707,22		49.737.962,56
		220.919.791,92	230.171.215,34
5. Personalaufwand
a) Löhne und Gehälter	46.475.404,44		45.978.682,46
b) Soziale Abgaben und Aufwendungen für Altersversorgung	8.480.611,81		9.540.783,33
davon für Altersversorgung T€ 695 (Vorjahr: T€ 669)
		54.956.016,25	55.519.465,79
6. Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen		2.414.242,20	3.617.354,65
7. Sonstige betriebliche Aufwendungen		8.825.921,12	14.437.203,29
davon Aufwendungen aus der Währungsumrechnung T€ 0 (Vj. T€ 363)
		9.174.819,53	12.414.867,89
8. Erträge aus Beteiligungen		0,00	4.046.839,82
davon aus verbundenen Unternehmen T€ 0 (Vorjahr: T€ 4.047)
9. Sonstige Zinsen und ähnliche Erträge		1.247.266,64	585.611,40
davon aus verbundenen Unternehmen T€ 1 (Vorjahr: T€ 1)
10. Abschreibungen auf Finanzanlagen		0,00	2.213.000,86
11. Zinsen und ähnliche Aufwendungen		2.666.055,28	166.088,30
davon an verbundene Unternehmen T€ 188 (Vorjahr: T€ 115)
davon Aufwendungen aus der Aufzinsung T€ 10 (Vorjahr: T€ 36)
12. Steuern vom Einkommen und vom Ertrag		-599.607,07	3.163.798,73
13. Ergebnis nach Steuern		8.355.637,96	11.504.431,22
14. Sonstige Steuern		107.149,75	139.346,29
15. Jahresüberschuss		8.248.488,21	11.365.084,93
16. Gewinnvortrag		11.365.084,93	134.507.385,00
17. Ausschüttung an Gesellschafter		11.365.084,93	134.507.385,00
18. Bilanzgewinn		8.248.488,21	11.365.084,93

Anhang für das Geschäftsjahr 2022/2023

Registergericht: AG Düsseldorf, HRB 10639

Allgemeine Hinweise

Die Gewinn- und Verlustrechnung ist unverändert nach dem Gesamtkostenverfahren aufgestellt.

Um die Klarheit der Darstellung zu verbessern, wurden die Angaben zur Mitzugehörigkeit zu anderen Posten der Bilanz, sofern diese vorlagen, in diesem Anhang gemacht.

Ferner hat die FUJIFILM Europe GmbH ("FEG") die Aktiva und Passiva der portugiesischen Niederlassung zum 30. April 2022 in eine neue Gesellschaft eingelegt, die als eigenständiges Unternehmen weitergeführt wird.

Aus diesem Grund sind die Vorjahreszahlen nur bedingt vergleichbar.

Bilanzierungs- und Bewertungsmethoden

Für die Aufstellung des Jahresabschlusses waren im Wesentlichen die nachfolgenden Bilanzierungs- und Bewertungsmethoden maßgebend.

Die spanische Niederlassung hat aus dem Erwerb des Geschäftsfeldes "Biocare" einen Firmenwert, der über die voraussichtliche Nutzungsdauer von 10 Jahre abgeschrieben wird.

Die degressive Methode wird seit der Veräußerung des Gebäudes zu Beginn des Geschäftsjahres nicht mehr angewandt.

Geringwertige Anlagegüter bis zu einem Netto-Einzelwert von € 800,00 sind im Jahr des Zugangs voll abgeschrieben bzw. als Aufwand erfasst worden; ihr sofortiger Abgang wird unterstellt.

Die Abschreibungen auf Zugänge des Sachanlagevermögens werden zeitanteilig vorgenommen.

Die unfertigen Erzeugnisse sind unter Beachtung des Niederstwertprinzips zu den Herstellungskosten bewertet, die dem Fertigstellungsgrad entsprechen.

Die Rechnungsabgrenzungsposten betreffen vor dem Bilanzstichtag geleistete Zahlungen, die für Aufwand für eine bestimmte Zeit nach dem Bilanzstichtag geleistet wurden.

Die Pensionsrückstellungen wurden auf Basis versicherungsmathematischer Gutachten zum 31.03.2023 bilanziert. Die Rückstellung ist nach dem Anwartschaftsbarwertverfahren (Projected-Unit-Credit-Methode; PUC) mit einem 10-jährigen Durchschnittszinssatz von 1,79% (i. Vj. mit einem 10-jährigen Durchschnittszinssatz von 1,80%) bewertet worden. Bei der Ermittlung des Zinssatzes wurde eine durchschnittliche Restlaufzeit von 15 Jahren gemäß § 253 Abs. 2 Satz 2 HGB angewendet. Weiterhin wurden eine durchschnittliche Gehaltssteigerung von 2,00%, eine Rentensteigerung von 1,75% sowie eine Standard-Fluktuationsrate zur Berechnung der zukünftigen Verpflichtungen angenommen. Als Grundage für die Ermittlung der Verpflichtung zum Bilanzstichtag dienen die "Richttafeln 2018 G" von Prof. Dr. Klaus Heubeck. Auf Basis des 7-Jahres-Durchschnittszinssatzes von 1,50% ergäbe sich eine Pensionsverpflichtung von T€ 2.450.

Die Differenz zu den Pensionsverpflichtungen auf Basis des 10-Jahres-Durchschnittszinssatzes beträgt hierbei T€ 97. Dieser Unterschiedsbetrag ist ausschüttungsgesperrt (§ 253 Abs. 6 Satz 2 HGB).

Die Steuerrückstellungen und die sonstigen Rückstellungen berücksichtigen alle ungewissen Verbindlichkeiten und drohende Verluste aus schwebenden Geschäften. Sie sind in der Höhe des nach vernünftiger kaufmännischer Beurteilung notwendigen Erfüllungsbetra-ges (d. h. einschließlich zukünftiger Kosten- und Preissteigerungen) angesetzt. Rückstellungen mit einer Restlaufzeit von mehr als einem Jahr werden abgezinst.

Die Verbindlichkeiten sind mit ihrem Erfüllungsbetrag angesetzt.

Die passiven Rechnungsabgrenzungsposten beinhalten Einnahmen vor dem Abschlussstichtag, die einen Ertrag für eine bestimmte Zeit nach dem Bilanzstichtag darstellen.

Die Umrechnung der in Fremdwährung erstellten Bilanzen der tschechischen Betriebsstätte in Euro erfolgte mit dem Devisenkassamittelkurs am Bilanzstichtag. Die Betriebsstätte wur-den am 1. April 2022 an die FUJIFILM Europe B.V. ("FEN") veräußert. Die Posten der Gewinn- und Verlustrechnung wurden mit dem jeweiligen Durchschnittskurs des Monats bewer-tet. Hierbei ergaben sich keine wesentlichen Abweichungen zu der Bewertung mit dem Devisenkassamittelkurs am Transaktionstag.

Die Umrechnungsdifferenzen sind erfolgswirksam erfasst worden.

Erläuterungen zur Bilanz

Anlagevermögen

Im Geschäftsjahr wurde bei den Beteiligungen kein niedrigerer beizulegenden Wert aufgrund voraussichtlich dauernder Wertminderung festgestellt. Im Vorjahr wurde eine Abwertung in Höhe von € 2,2 Mio. vorgenommen.

Die Abgänge des Anlagevermögens der Betriebsstätten in Portugal, Tschechien und der Slowakei sind im Anlagenspiegel in der Spalte Transfer erhalten.

Forderungen und sonstige Vermögensgegenstände

Die Forderungen aus Lieferungen und Leistungen sind zum Teil durch Warenkreditversiche-rungen, ansonsten durch üblichen Eigentumsvorbehalt abgesichert. Die Forderungen gegen verbundene Unternehmen von insgesamt T€ 19.959 (Vorjahr: T€ 20.864) beinhalten Forderungen aus Lieferungen und Leistungen (T€ 19.840, Vorjahr: T€ 20.746) sowie Forderungen aus Gewinnansprüchen (T€ 119, Vorjahr: T€ 119). Es bestehen Forderungen gegen die Gesellschafterin FUJIFILM Europe B.V., Tilburg/Niederlande, in Höhe von T€ 13.754 (Vorjahr: T€ 13.768).

Die kurzfristigen sonstigen Vermögensgegenstände betreffen Ertragssteuererstattungsansprüche (T€ 127, Vorjahr: T€ 176), Ertragsabgrenzungen aus langfristigen Serviceverträgen (T€ 506, Vorjahr: T€ 558) sowie debitorische Kreditoren (T€ 311, Vorjahr: T€ 299) ausgewiesen.

Die langfristigen sonstigen Vermögensgegenstände (T€ 881, Vorjahr: T€ 888) beinhalten im Wesentlichen die Rückdeckungsversicherung für die Pensionsansprüche (T€ 651, Vorjahr: T€ 668).

Gezeichnetes Kapital

Das voll eingezahlte Stammkapital beträgt zum 31.03.2023 unverändert € 52,2 Mio.

Kapitalrücklage

Im Geschäftsjahr beträgt die Kapitalrücklage unverändert € 50,2 Mio.

Bilanzgewinn

Die FEG hat im Geschäftsjahr 2022/2023 eine Ausschüttung aus dem Bilanzgewinn an die Muttergesellschaft in Höhe von € 11,4 Mio. vorgenommen.

Ausschüttungssperre

Die Ausschüttungssperre gemäß § 253 Abs. 6 Satz 2 HGB für den Bewertungsunterschied der Pensionsverpflichtungen beläuft sich auf T€ 97 (Vorjahr: T€ 149).

Rückstellungen

Verbindlichkeiten

Sämtliche Verbindlichkeiten haben, bis auf eine Ausnahme in den sonstigen Verbindlichkeiten (T€ 67, Vorjahr: T€ 55), eine Restlaufzeit von unter einem Jahr. Die Verbindlichkeiten sind nicht besichert.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren aus Lieferungen und Leistungen (T€ 41.797, Vorjahr: T€ 49.406) sowie aus gewährten Darlehen der Gesellschafterin (T€ 4.060, Vorjahr: T€ 14.535). Neben dem Darlehen bestehen Verbindlichkeiten aus Lieferungen und Leistungen gegenüber der Gesellschafterin in Höhe von T€ 36.410 (Vorjahr: T€ 43.916).

Weiterhin bestehen sonstige Verbindlichkeiten für Umsatzsteuer, Lohn- und Kirchensteuer und Sozialversicherungsverbindlichkeiten sowie kreditorische Debitoren.

Latente Steuern

Passive latente Steuern wurden mit aktiven latenten Steuern verrechnet. Auf die Bilanzierung des Überhangs aktiver latenter Steuern wurde in Übereinstimmung mit dem Wahlrecht des § 274 Abs. 1 Satz 2 HGB verzichtet. Der Ermittlung der latenten Steuern wurde ein Steuersatz von 15,8% (Vorjahr: 15,8%) für die Körperschaftsteuer einschließlich Solidaritäts-zuschlag sowie 15,4% (Vorjahr: 15,4%) für die Gewerbesteuer zugrunde gelegt. Differenzen zwischen Handels- und Steuerbilanz resultieren im Wesentlichen aus Bewertungsunterschieden im Anlagevermögen und bei den Rückstellungen.

Erläuterungen zur Gewinn- und Verlustrechnung

Die Umsatzerlöse setzen sich wie folgt zusammen:

	2022/2023		2021/2022
Umsatzerlöse aus	Mio. EUR	%	Mio. EUR	%
Handel und Dienstleistungen
- Imaging	27	9,7	41	13,7
- Electronic Imaging	8	2,9	12	4,0
- Graphische Systeme	76	27,4	77	25,7
- Medizinische Systeme	108	39,0	124	41,3
- Sonstiges	8	2,9	4	1,3
	227	81,9	258	86,0
Leistungsverrechnung
im Konzernverbund	50	18,1	42	14,0
	277	100,0	300	100,0
Regionen
- Deutschland	140	50,5	126	42,0
- Europäisches Ausland	134	48,4	171	57,0
- Sonstige	3	1,1	3	1,0
	277	100,0	300	100,0

Da die oben genannten ausgeschiedenen Niederlassungen aus Tschechien, der Slowakei und aus Portugal im Geschäftsjahr so gut wie keine Umsätze mehr getätigt haben, wird in der nachfolgenden Darstellung das Vorjahr um die Umsätze der genannten Niederlassungen bereinigt, um eine bessere Vergleichbarkeit zu gewähren. Die bereinigten Vorjahreswerte betreffen nur noch die aktiven Niederlassungen in Deutschland, Spanien und Österreich.

	2022/2023		2021/2022 bereinigt *
Umsatzerlöse aus	Mio. EUR	%	Mio. EUR	%
Handel und Dienstleistungen
- Imaging	27	9,7	24	10,0
- Electronic Imaging	8	2,9	7	2,9
- Graphische Systeme	76	27,4	65	27,1
- Medizinische Systeme	108	39,0	100	41,7
- Sonstiges	8	2,9	3	1,3
	227	81,9	199	82,9
Leistungsverrechnung
im Konzernverbund	50	18,1	41	17,1
	277	100,0	240	100,0
Regionen
- Deutschland	140	50,5	126	52,5
- Europäisches Ausland	134	48,4	111	46,3
- Sonstige	3	1,1	3	1,2
	277	100,0	240	100,0

* Im Sinne der Vergleichbarkeit wurden die Umsätze der ausgeschiedenen Niederlassungen aus dem Vorjahreswert herausgerechnet. Der bereinigte Betrag betrifft lediglich die aktuell aktiven Niederlassungen in Deutschland, Spanien und Österreich.

Sonstige betriebliche Erträge

Der Veräußerungserlös der tschechischen und slowakischen Niederlassung an die europäische Konzernmutter FEN betrug zusammen T€ 356.

Im Vorjahr wurden Aufwendungen für die Werbekampagne "Never Stop" (T€ 1.924) an die japanische Muttergesellschaft weiterbelastet. Diese Kampagne ist abgeschlossen. Es gab keine weiteren Aufwendungen und Weiterbelastungen.

Die FEG ist im Vorjahr in gemietete Büroräume nach Ratingen umgezogen. Das im Anlagevermögen der Gesellschaft befindliche Gebäude in der Heesenstraße in Düsseldorf wurde veräußert. Die Übergabe des Gebäudes an den Käufer erfolgte im Juni 2022. Der Veräußerungsgewinn betrug T€ 5.477.

Die periodenfremden Erträge, die in den sonstigen betrieblichen Erträgen enthalten sind, enthalten Erträge aus der Auflösung von sonstigen Rückstellungen (T€ 1.168; Vorjahr: T€ 411).

Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen beinhalten im Wesentlichen EDV-Kosten, Rechts- und Beratungskosten, Reisekosten, Pkw-Leasing, Kfz-Kosten, Werbekosten, Personalkosten sowie Gebäudemiete.

Im Berichtsjahr sind keine nennenswerten periodenfremden Aufwendungen zu verzeichnen (T€ 13; Vorjahr: T€ 3).

Erträge aus Beteiligungen

Im Geschäftsjahr hat die Gesellschaft keine Dividendenzahlungen von Tochtergesellschaften erhalten (Vorjahr: € 4,0 Mio.).

Abschreibungen auf Finanzanlagen

Im Geschäftsjahr wurde bei den Beteiligungen kein niedrigerer beizulegender Wert aufgrund voraussichtlich dauernder Wertminderung festgestellt. Im Vorjahr wurde eine Abwertung in Höhe von € 2,2 Mio. vorgenommen.

Sonstige Zinsen und ähnliche Erträge

Aufgrund der gestiegenen Zinsen für den konzerninternen Cash pool konnte die Gesellschaft einen Zinsertrag für Bankguthaben in Höhe von € 1,2 Mio. (Vorjahr: T€ 55) verzeichnen.

Zinsen und ähnliche Aufwendungen

Die Zinsen und ähnlichen Aufwendungen enthalten T€ 2.465 (Vorjahr: T€ 0) für Steuernachforderungen. Es handelt sich um Risiken resultierend aus der abgeschlossenen Betriebsprü-fung für den Veranlagungszeitraum 2010 bis 2013 sowie die Risiken aus den noch nicht abgeschlossenen Betriebsprüfungen der folgenden Veranlagungszeiträume 2014 bis 2017. Für die wesentlichen Prüfungsfeststellungen des Veranlagungszeitraums 2010 bis 2013 wird ein Verständigungsverfahren angestrebt.

Steuern von Einkommen und vom Ertrag

Die periodenfremden Erträge aus Ertragsteuern betragen T€ 3.651 (Vorjahr: T€ 566). Sie betreffen im Wesentlichen Anpassungen der Steuerrückstellung für die Veranlagungszeiträume 2010 bis 2017. Sie basieren auf den im Betriebsprüfungsbericht für den Veranla-gungszeitraum 2010 bis 2013 vorgenommenen Anpassungen.

Sonstige Angaben

Sonstige finanzielle Verpflichtungen/außerbilanzielle Geschäfte

Die sonstigen finanziellen Verpflichtungen der kommenden fünf Geschäftsjahre in Höhe von T€ 25.496 (spätere Verpflichtung T€ 4.775) resultieren aus Miet- und Leasingverträgen für Büro- und Lagergebäude, Kraftfahrzeuge sowie Dienstleistungsverträgen für Kreditversicherung und Gebäudemanagement. Von dem Gesamtbetrag betreffen T€ 5.880 das Geschäftsjahr 2023/2024. Das Leasing ermöglicht der Gesellschaft, die Kapitalbindung zu reduzieren. Wesentliche Risiken hieraus sind nicht erkennbar. Darin enthalten sind finanzielle Mietverpflichtungen gegenüber zwei verbundenen Unternehmen. Die Verpflichtung der kommenden fünf Geschäftsjahre daraus beträgt T€ 2.790.

Gegenüber Leasinggesellschaften, über die unsere Kunden Maschinen und Equipment leasen können, besteht eine sogenannte First Loss Vereinbarung, der zufolge die ersten 9,99% des gesamten Forderungsausfalls aus zwei Verträgen zu unseren Lasten gehen. Diese Garantie beträgt im Geschäftsjahr T€ 75,3. Des Weiteren besteht eine Ausfallbürgschaft in Höhe von T€ 18,4.

Geschäftsführung

Geschäftsführer im Geschäftsjahr waren

•	Herr Yoshiki Kimura, Düsseldorf, Manager, (ab 04.05.2023)
•	Herr Toshihisa Iida, Düsseldorf, Manager, (bis 04.05.2023)
•	Herr Peter Struik, Leidschendam/Niederlande, Excecutive Director, (ohne Bezüge)

Sämtliche Geschäftsführer sind berechtigt, die Gesellschaft einzeln zu vertreten.

Gesamtbezüge der Geschäftsführung

Mitarbeiter

Durchschnittliche Zahl der während des Geschäftsjahres 2022/2023 beschäftigten Mitarbeiter:

	Anzahl
Angestellte
- Deutschland	422
- ausländische Niederlassungen	135
	557

Die Anzahl der Mitarbeiter ist aufgrund der ausgeschiedenen ausländischen Niederlassungen gesunken.

Prüfungs- und Beratungsgebühren

Das für das Geschäftsjahr 2022/2023 berechnete Gesamthonorar der Abschlussprüfer (einschließlich der aktiven Niederlassungen) beträgt für Abschlussprüfungsleistungen T€ 330. Steuer- und sonstige Beratungen wurden von der Prüfungsgesellschaft nicht geleistet.

Aufstellung des Anteilsbesitzes

				Ergebnis laut letztem Geschäftsjahr
	Beteiligung	Währung	Eigenkapital	Gewinn (Verlust)
	in %		in 000 LW	in 000 LW
Unmittelbar gehaltene Anteile
Inland
FUJIFILM IMAGING PRODUCTS & SOLUTIONS Verwaltungs GmbH, Willich	100	EUR	*	*
FUJIFILM IMAGING PRODUCTS & SOLUTIONS GmbH & Co. KG, Willich, Konzernabschluss	100	EUR	-1.462 ¹	-10.788
Ausland
FUJIFILM Middle East FZE, Dubai / VAE	100	AED	136.718 ²	13.622
FUJIFILM Portugal, S.A. Vila Nova de Gaia / Portugal	100	EUR	1.000 ⁴
Mittelbar gehaltene Anteile
Inland
Über FUJIFILM IMAGING PRODUCTS & SOLUTIONS GmbH & Co. KG
- FUJIFILM Imaging Systems GmbH & Co. KG Willich	100	EUR	³

LW= Landeswährung
1) Jahresabschluss zum 31. März 2020
2) Jahresabschluss zum 31. März 2021
3) Enthalten im Konzernabschluss der FUJIFILM IMAGING PRODUCTS AND SOLUTIONS GmbH & Co. KG, Willich
4) Gründungskapital am 30. April 2022
* Die Angaben für diese Gesellschaften sind aufgrund von § 286 Abs. 3 Satz 1 Nr. 1 HGB wegen untergeordneter Bedeutung unterblieben.

Umrechnungskurs AED/EUR zum 31. März 2023: 0,25027

Ergebnisverwendungsvorschlag

Der Jahresüberschuss in Höhe von T€ 8.248 wird auf neue Rechnung vorgetragen. Danach beträgt der Bilanzgewinn T€ 8.248.

Konzernverhältnisse

Es bestehen die folgenden wesentlichen, im befreienden Konzernabschluss vom deutschen Recht abweichend angewandten Bilanzierungs-, Bewertungs- und Konsolidierungsmethoden:

Rückstellungen

Pensionsrückstellungen

Pensionsrückstellungen werden in der US-Rechnungslegung nach dem Anwartschafts-barwertverfahren (projected unit credit method) ermittelt. Gehalts- und Rententrends sind bei der Ermittlung des Barwertes zu berücksichtigen. Diskontierungssatz ist der langfristige Kapitalmarktzins. Für handelsrechtliche Zwecke wird der durchschnittliche Marktzinssatz zugrunde gelegt, der sich bei einer angenommenen Restlaufzeit von 10 Jahren ergibt.

Eigenkapital

Unrealisierte Gewinne

Immaterielle Vermögensgegenstände

Restrukturierungsmaßnahmen

Rückstellungen für Restrukturierungsmaßnahmen und Schließungskosten sind gemäß US-GAAP zu bilden, wenn spezifische Kriterien kumulativ erfüllt sind; insbesondere wird die Abfassung eines Plans sowie die Verpflichtung zu dessen Umsetzung durch die Unternehmensleitung vorausgesetzt. Für die deutsche Rechnungslegung gelten die allgemeinen Voraussetzungen für den Ansatz von Verbindlichkeitsrückstellungen.

Latente Steuern

Nachtragsbericht

Vorgänge von besonderer Bedeutung, die nach dem Schluss des Geschäftsjahres eingetreten sind und weder in der Gewinn- und Verlustrechnung noch in der Bilanz berücksichtigt sind, haben sich nicht ereignet.

Ratingen, den 1. September 2023

Yoshiki Kimura

Peter Struik

Entwicklung des Anlagevermögens für das Geschäftsjahr 2022/2023

	Anschaffungskosten
		Währungskurs-
	01.04.2022	anpassung	Zugänge	Abgänge
	€	€	€	€

I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	4.098.585,91	1.046,07	62.528,62	158.287,03
2. Geschäfts- oder Firmenwert	879.270,00	0,00	0,00	0,00
	4.977.855,91	1.046,07	62.528,62	158.287,03
II. Sachanlagen
1. Grundstücke und Bauten	25.891.011,37	84.749,88	516.107,42	19.954.412,04
2. Technische Anlagen und Maschinen	18.643.060,36	33.936,77	2.116.632,93	2.047.200,63
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	6.541.836,34	16.206,42	2.706.091,35	2.370.379,05
4. Geleistete Anzahlungen und Anlagen im Bau	725.245,49	0,00	597.105,56	0,00
	51.801.153,56	134.893,07	5.935.937,26	24.371.991,72
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	158.102.452,17	0,00	5.251.052,15	0,00
2. Wertpapiere des Anlagevermögens	39.822,01	0,00	0,00	0,00
	158.142.274,18	0,00	5.251.052,15	0,00
	214.921.283,65	135.939,14	11.249.518,03	24.530.278,75

	Anschaffungskosten		Kumulierte Abschreibungen
				Währungskurs-
	Transfer	31.03.2023	01.04.2022	anpassung
	€	€	€	€

I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	-622.665,23	3.381.208,34	3.843.409,93	961,40
2. Geschäfts- oder Firmenwert	-15.657,00	863.613,00	249.695,00	0,00
	-638.322,23	4.244.821,34	4.093.104,93	961,40
II. Sachanlagen
1. Grundstücke und Bauten	-340.657,08	6.196.799,55	20.740.915,89	27.634,80
2. Technische Anlagen und Maschinen	-6.338.848,98	12.407.580,45	12.565.803,70	22.064,83
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	-1.226.636,56	5.667.118,50	5.485.839,74	12.813,10
4. Geleistete Anzahlungen und Anlagen im Bau	-572.753,20	749.597,85	0,00	0,00
	-8.478.895,82	25.021.096,35	38.792.559,33	62.512,73
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	0,00	163.353.504,32	157.881.294,05	0,00
2. Wertpapiere des Anlagevermögens	-38.322,01	1.500,00	0,00	0,00
	-38.322,01	163.355.004,32	157.881.294,05	0,00
	-9.155.540,06	192.620.922,01	200.766.958,31	63.474,13

	Kumulierte Abschreibungen

	Zugänge	Abgänge	Transfer	31.03.2023
	€	€	€	€

I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	86.224,34	558.447,09	158.287,03	3.213.861,55
2. Geschäfts- oder Firmenwert	64.361,00	0,00	652,00	313.404,00
	150.585,34	558.447,09	158.939,03	3.527.265,55
II. Sachanlagen
1. Grundstücke und Bauten	269.427,25	18.713.976,58	239.132,79	2.084.868,57
2. Technische Anlagen und Maschinen	1.482.963,23	1.589.210,96	4.725.059,28	7.756.561,52
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	511.266,38	2.279.994,70	1.506.119,29	2.223.805,23
4. Geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00
	2.263.656,86	22.583.182,24	6.470.311,36	12.065.235,32
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	0,00	0,00	0,00	157.881.294,05
2. Wertpapiere des Anlagevermögens	0,00	0,00	0,00	0,00
	0,00	0,00	0,00	157.881.294,05
	2.414.242,20	23.141.629,33	6.629.250,39	173.473.794,92

	Buchwerte

	31.03.2023	31.03.2022
	€	€

I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	167.346,79	255.175,98
2. Geschäfts- oder Firmenwert	550.209,00	629.575,00
	717.555,79	884.750,98
II. Sachanlagen
1. Grundstücke und Bauten	4.111.930,98	5.150.095,48
2. Technische Anlagen und Maschinen	4.651.018,93	6.077.256,66
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	3.443.313,27	1.055.996,60
4. Geleistete Anzahlungen und Anlagen im Bau	749.597,85	725.245,49
	12.955.861,03	13.008.594,23
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	5.472.210,27	221.158,12
2. Wertpapiere des Anlagevermögens	1.500,00	39.822,01
	5.473.710,27	260.980,13
	19.147.127,09	14.154.325,34

Lagebericht für das Geschäftsjahr 2022/2023

1. Geschäftsverlauf und Rahmenbedingungen

Die FUJIFILM Europe GmbH, Ratingen (nachfolgend auch die "Gesellschaft" oder "FEG"), ist eine Tochtergesellschaft der niederländischen FUJIFILM Europe B.V. ("FEN"), Tilburg/Niederlande, und gehört zum Konzernverbund der FUJIFILM Holdings Corporation, Tokio/Japan. Während die Sales- und Marketingaktivitäten von der Gesellschaft gesteuert werden, werden die Administrativen Bereiche (Corporate Divisions) sowohl von der Gesellschaft als auch von der Mutter in den Niederlanden geführt.

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wurden am 1. April 2022 die Geschäfte der tschechischen und slowakischen Niederlassung jeweils an eine tschechische und slowakische Tochtergesellschaft der FEN veräußert, die diese Geschäfte eigenständig fortführen. Die slowakische Niederlassung konnte im Geschäftsjahr rechtlich abgewickelt und aus dem Register in der Slowakei gelöscht werden. Die tschechische Niederlassung wurde noch nicht geschlossen, da das im Besitz befindliche Bürogebäude nicht an die neue Gesellschaft übertragen wurde und daher zunächst veräußert werden muss.

Ferner hat die FEG zum 30. April 2022 die Aktiva und Passiva der portugiesischen Niederlassung in eine neue Gesellschaft eingelegt, die als eigenständiges Unternehmen weitergeführt wird. Auch diese Gesellschaft konnte im Geschäftsjahr geschlossen und aus den portugiesischen Registern gelöscht werden.

Um eine Vergleichbarkeit mit den Vorjahreswerten zu ermöglichen, wurden für nachfolgende Vergleiche die Vorjahreswerte um die Umsätze der genannten Niederlassungen bereinigt.

Hierdurch wird eine klare Entwicklung der verbleibenden Unternehmensteile dargestellt. In der handelsrechtlichen Gewinn- und Verlustrechnung sind die Vorjahreswerte dieser Niederlassungen richtigerweise enthalten. Direkt nach Abschluss des Geschäftsjahres 2021/2022 zog die FUJIFILM Europe GmbH ("FEG") in die neuen, gemieteten Geschäftsräume in Ratingen. Die Eintragung im Handelsregister erfolgten am 14. April 2022.

Die FUJIFILM Europe GmbH ist ein Großhandelsunternehmen, welches, wie weiter im Folgenden ausgeführt, Produkte für verschiedene Anwendungsgebiete und Branchen vertreibt. Der Einkauf der Waren erfolgt überwiegend von der Muttergesellschaft FEN über das sogenannte "buy-sell-model".

1.1 Allgemeine Geschäftsentwicklung

Die wirtschaftliche Entwicklung im Jahr 2022/2023 in unseren zwei wichtigsten Märkten Deutschland und Spanien war positiv (Quelle: European Economic Forecast Winter 2023 der europäischen Kommission vom Februar 2023). Deutschlands Bruttoinlandsprodukt (BIP) ist zwar nicht wie im Jahr 2021 (2,8%) ausgefallen, ist aber dennoch mit 1,8% gewachsen. Trotz der hohen Inflation wurde das Wachstum durch den Anstieg der Nachfrage, die auf die Wiederbelebung der Wirtschaft nach der Pandemie folgte, bestimmt, was insbesondere einen Anstieg des Dienstleistungssektor zur Folge hatte. Allerdings hatten bis zum dritten Quartal 2022 die Investitionen und der private Verbrauch noch nicht das Niveau von vor der Pandemie erreicht und gingen im vierten Quartal mit einem realen BIP-Rückgang von 0,2% zurück.

Spanien hat die negativen Schocks, die durch den russischen Angriffskrieg gegen die Ukraine im Jahr 2022 ausgelöst wurden, relativ gut überstanden. Die Widerstandsfähigkeit der Wirtschaft wurde gestützt durch den starken Aufschwung des Tourismus während der Sommersaison und die Dynamik des privaten Verbrauchs, auch unterstützt durch eine positive Entwicklung auf dem Arbeitsmarkt. Im Vergleich zur Herbstprognose wird das Wachstum für 2022 mit 5,5% um 1,0 Prozentpunkte höher geschätzt (Vorjahr: 5,0%). Das robustere Ergebnis resultiert aus der unerwartet starken ersten Hälfte des Jahres, insbesondere im zweiten Quartal 2022, sowie auf einen geringer als erwarteten Rückgang im letzten Quartal 2022. Trotz des realen Kaufkraftverlustes trug die Verlangsamung der Inflation ab Herbst 2022 zu einem stärkeren Vertrauen der Verbraucher und Unternehmen und somit zu höheren Konsumausgaben und Investitionen gegen Ende des Jahres bei. Dennoch blieb auch in Spanien das BIP im vierten Quartal 2022 hinter dem Niveau vor der Pandemie (viertes Quartal 2019) zurück.

Im Geschäftsjahr lag der FEG Umsatz aus dem Handel und Service mit den genannten Produkten (ohne Leistungsverrechnungen im Konzern) in Höhe von Mio. € 227 über dem Niveau des bereinigten* Vorjahres (Mio. € 199). Der Produktbereich Medical hatte mit 39% den größten Anteil am Gesamtumsatz. Dabei erwirtschaftete dieser Produktbereich einen Umsatz von Mio. € 108,0 was den Erwartungen entsprach (Mio. € 108,8). Der Umsatz lag leicht über dem Niveau des bereinigten* Vorjahres (Mio. € 100). Der Produktbereich Endoskopie konnte hierbei mit 55,9% zum Gesamtumsatz von Medical beitragen.

Der Umsatz des Bereichs Graphic ist leicht von Mio. € 65 im bereinigten* Vorjahr auf Mio. € 76 gestiegen, wobei die Produktgruppe "Plate" (Druckplatten) den höchsten Umsatzanteil hatte.

Im Vergleich zum bereinigten* Vorjahr ist der Umsatz in den übrigen Produktbereichen insgesamt von Mio. € 34 im Vorjahr auf Mio. € 43 gestiegen. Hier ist insbesondere im Produktbereich Photo-Imaging der Umsatz insgesamt von Mio. € 24 im bereinigten* Vorjahr auf Mio. € 27 gestiegen.

1.2 Betriebsergebnis

In den umsatzstärksten Niederlassungen wurden positive operative Geschäftsergebnisse erzielt. Dabei erwirtschaftete die Niederlassung in Deutschland erneut den größten Überschuss. Trotz deutlich gestiegener Umsätze liegt das Betriebsergebnis 65% unter dem des Vorjahres, welches bereinigt wurde um die Werte der Niederlassungen, deren Ergebnis seit April bzw. Mai des Geschäftsjahres nicht mehr in die FEG einfließen. Die Details zu den Veränderungen innerhalb des Betriebsergebnisses sind in Punkt 2.2 Ertragslage zu finden.

1.3 Finanzielle und nicht finanzielle Leistungsindikatoren

Zur Steuerung des Unternehmens werden die folgenden finanziellen Leistungsindikatoren eingesetzt:

―	Umsatz
―	Jahresüberschuss

Zur Prognose der finanziellen Leistungsindikatoren verweisen wir auf die Ausführungen in Abschnitt 4.

Nicht finanzielle Leistungsindikatoren werden zur Steuerung des Unternehmens nicht eingesetzt.

2. Vermögens-, Finanz- und Ertragslage

Die Gesellschaft ist im Geschäftsjahr 2022/2023 noch im Wesentlichen in Deutschland, Spanien und Österreich durch ihre Zweigniederlassungen aktiv. Darüber hinaus werden FUJIFILM Produkte durch unabhängige Distributoren vertrieben. Aufgrund der Einbeziehung in den befreienden Konzernabschluss der Muttergesellschaft FUJIFILM Holdings Corporation, Tokio/Japan, wird kein eigener (Teil-) Konzernabschluss erstellt.

In der tschechischen und slowakischen Niederlassung wurden seit Beginn des Geschäftsjahres keine Geschäfte mehr getätigt, da diese zum 1. April 2022 an Tochtergesellschaften der FEN veräußert wurden. In der slowakischen Niederlassung wurden im Geschäftsjahr lediglich die Kosten der Abwicklung und Schließung erfasst. Die tschechische Niederlassung führt noch ein im Eigentum befindliches Bürogebäude im Anlagevermögen sowie ein Darlehen gegenüber der niederländischen Mutter FEN. Die portugiesische Niederlassung wurde zum 30. April 2022 geschlossen. Sämtliche Aktiva und Passiva wurden als Kapitaleinlage in eine neue, eigenständige Gesellschaft eingebracht, deren Gesellschafter die FEG ist. Das Ergebnis aus April 2022 wird noch in dem Abschluss der FEG erfasst

2.1 Vermögens- und Finanzlage

Die nachfolgende Übersicht ergibt sich nach Zusammenfassungen und Saldierungen, die nach betriebswirtschaftlichen Gesichtspunkten aus den Bilanzen des laufenden Geschäftsjahres sowie die des Vorjahres vorgenommen wurden. Forderungen und Verbindlichkeiten mit einer Restlaufzeit von mehr als einem Jahr werden als langfristig behandelt.

Um eine Vergleichbarkeit mit den Vorjahreswerten zu ermöglichen, wurden für die Darstellung der Kapital- und Finanzlage folgende Werte aus den Vorjahreswerten herausgerechnet:

•	sämtliche Vorjahreswerte der slowakischen Niederlassung
•	sämtliche Vorjahreswerte der portugiesischen Niederlassung (aus Vereinfachungsgründen, obwohl im Geschäftsjahr im April 2022 noch Geschäfte im Namen der FEG getätigt wurden)
•	sämtliche Werte der tschechischen Niederlassung, abgesehen vom Gebäude (Mio. € 1,6) und Darlehen (Mio. € 5,3).

Hierdurch wird eine klare Entwicklung der verbleibenden Unternehmensteile darstellt. In der handelsrechtlichen Bilanz sind die Vorjahreswerte dieser Niederlassungen richtigerweise enthalten.

Kapital- und Finanzlage

	31.03.2023		31.03.2022 bereinigt*				Veränderung
						ohne PT
	T€	%	gesamt	%	PT CZ SK	CZ SK	T€	%
	(a)					(b)	(a)-(b)
AKTIVA
Anlagevermögen	19.147	9,2	14.154	5,9	2.111	12.043	7.104	59,0
Langfristige sonstige Aktiva	3.078	1,5	3.959	1,6	1.229	2.730	348	12,7
Vorräte	991	0,5	1.270	0,5	973	297	694	>100
Lieferforderungen	36.784	17,6	49.206	20,5	14.597	34.609	2.175	6,3
Verbundene Unternehmen	19.840	9,5	20.745	8,6	331	20.414	-574	-2,8
Flüssige Mittel	126.641	60,7	147.370	61,4	11.345	136.025	-9.384	-6,9
Übrige Aktiva	2.142	1,0	3.643	1,5	674	2.969	-827	-27,9
Kurzfristiges Vermögen	186.398	89,3	222.234	92,5	27.920	194.314	-7.916	-4,1
	208.623	100,0	240.347	100,0	31.260	209.087	-464	-0,2
PASSIVA
Eigenkapital	110.612	53,0	113.728	47,3	4.645	109.083	1.529	1,4
Langfristige Rückstellungen	2.163	1,0	2.129	0,9	0,0	2.129	34	1,6
Übrige Rückstellungen	37.141	17,8	39.438	16,4	3.532	35.906	1.235	3,4
Lieferverbindlichkeiten	3.608	1,7	6.235	2,6	1.440	4.795	-1.187	-24,8
Verbundene Unternehmen	45.856	22,1	63.941	26,6	17.313	46.628	-772	-1,7
Übrige Verbindlichkeiten	9.243	4,4	14.876	6,2	4.330	10.546	-1.303	-12,4
Kurzfristige Verbindlichkeiten	95.848	46,0	124.490	51,8	26.615	97.875	-2.027	-2,1
	208.623	100,0	240.347	100,0	31.260	209.087	-464	-0,2

Anlagevermögen

Die Erhöhung des Anlagevermögens wird deutlich durch die Finanzanlagen geprägt, wie die nachfolgende Übersicht zeigt. Die Aktiva und Passiva der Niederlassung in Portugal wurden zum Buchwert in eine neue Gesellschaft eingelegt (Mio. € 5,3).

	31.03.2023		31.03.2022 bereinigt*				Veränderung
						ohne
	T€	%	gesamt	%	PT SK	PT SK	T€	%
Immaterielles Vermögen	717	0,3	885	0,4	69	816	-99	-12,1
Sachanlagen	12.956	6,3	13.008	5,4	2.004	11.004	1.952	17,7
Finanzanlagen	5.474	2,6	261	0,1	38	223	5.251	>100
Insgesamt	19.147	9,2	14.154	5,9	2.111	12.043	7.104	59,0

* Ohne die Werte der NL in Portugal und Slowakei, wie oben beschrieben

Die langfristigen sonstigen Aktiva betreffen überwiegend langfristige Lieferforderungen (T€ 2.078), Forderungen gegen verbundene Unternehmen (T€ 119) sowie die Rückdeckungsversicherung für die Pensionsansprüche von insgesamt T€ 651.

Die kurzfristigen Lieferforderungen gegen Dritte, welche im Wesentlichen aus den Handelsumsätzen resultieren, stiegen im Vergleich zum bereinigten Vorjahr leicht um Mio. € 2,1, was durch erhöhte Umsätze zu erklären ist. Weitere Details hierzu sind den Erläuterungen unter Punkt 2.2 Ertragslage zu entnehmen.

Die kurzfristigen Forderungen gegen verbundene Unternehmen beliefen sich im Berichtsjahr auf Mio. € 19,8 (bereinigtes Vorjahr Mio. € 20,4). Sie betreffen hauptsächlich ausstehende Abrechnungen für erbrachte Dienstleistungen gegen FUJIFILM Europe B.V., Tilburg/Niederlande, der europäischen Muttergesellschaft der FUJIFILM Europe Gruppe ("FEN").

Insbesondere aufgrund einer Dividendenzahlung an die niederländische Muttergesellschaft in Höhe von Mio. € 11,4 sank das Bankguthaben im Vergleich zum Vorjahr.

Die kurzfristigen übrigen Aktiva betreffen im Wesentlichen Ertragsabgrenzungen aus langfristigen Serviceverträgen (T€ 506), debitorische Kreditoren (T€ 311), Steuererstattungsansprüche (T€ 127) sowie gezahlte Aufwendungen, die wirtschaftlich in das kommende Geschäftsjahr gehören (T€ 565).

Der Bilanzgewinn vom Vorjahr (Mio. € 11,4) wurde im Geschäftsjahr vollständig ausgeschüttet. Unter Berücksichtigung der inaktiven Niederlassungen hat sich die Eigenkapitalquote um 0,8 Prozentpunkte auf 53,0% erhöht was auf eine hohe finanzielle Stabilität und eine gesunde Unternehmensstruktur schließen lässt.

Die langfristigen Passiva beinhalten die Rückstellung für Pensionsverpflichtungen.

Die übrigen Rückstellungen setzen sich aus den Steuerrückstellungen (Mio. € 22,1) sowie den sonstigen Rückstellungen (Mio. € 15,1) zusammen.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen enthalten Verbindlichkeiten aus Lieferungen und Leistungen (T€ 41.797), davon T€ 36.410 gegenüber FEN sowie Darlehensverbindlichkeiten in Höhe von T€ 4.060, sämtlich gegenüber FEN.

Im Vergleich zu den bereinigten Vorjahreswerten* sind die Verbindlichkeiten aus Lieferungen und Leistungen gegenüber verbundenen Unternehmen um T€ 3.504 gestiegen. Im Wesentli-chen betrifft das den Wareneinkauf bei der niederländischen Mutter FEN. Die Darlehensverbindlichkeiten bestehen sämtlich gegenüber der FEN. Sie sind im Geschäftsjahr durch Tilgungen sowie das Ausscheiden von Niederlassungen gesunken und betreffen nur noch die tschechische und österreichische Niederlassung (T€ 4.060). Der Kapitalbedarf der FEG wird somit vollständig innerhalb des Konzerns gedeckt.

2.2 Ertragslage

Um eine Vergleichbarkeit mit den Vorjahreswerten zu ermöglichen, wurden für die Darstellung der Ertragslage die Vorjahreswerte der drei genannten Niederlassungen herausgerechnet, da sie im Geschäftsjahr keine Geschäfte mehr tätigten (in Portugal nur für einen Monat).

Hierdurch wird eine klare Entwicklung der verbleibenden Unternehmensteile darstellt. In der handelsrechtlichen Gewinn- und Verlustrechnung sind die Vorjahreswerte dieser Niederlassungen richtigerweise enthalten.

Nach Zusammenfassungen und Saldierungen, die nach betriebswirtschaftlichen Gesichtspunkten vorgenommen wurden, ergibt sich für die Gesellschaft die folgende Ertragsübersicht.

Ertragslage

in T€	2022/2023		2021/2022 bereinigt*				Veränderung
				PT CZ	ohne PT
		%	gesamt	SK	CZ SK	%	T€	%
Umsatzerlöse gesamt	276.540	100,0	300.162	59.359	240.803	100	35.737	14,8
Bestandsveränderung	-279	-0,1	-4.417	-890	-3.527	-1,5	3.248	-92,1
Gesamtleistung	276.261	99,9	295.745	58.469	237.276	98,5	38.985	16,4
Materialaufwand gesamt	-220.920	79,9	-230.171	-44.031	-186.140	77,3	-34.780	18,7
Personalaufwand	-54.956	19,9	-55.519	-6.894	-48.625	20,2	-6.331	13,0
Abschreibungen (planmäßig)	-2.414	0,9	-3.617	-985	-2.632	1,1	218	-8,3
Sonstiger Betriebsaufwand	-8.826	3,2	-14.440	-7.552	-6.888	2,9	-1.938	28,1
Sonstige betriebliche Erträge	14.196	5,1	17.724	1.303	16.421	-6,8	-2.225	-13,5
Sonstige Steuern	-107	0,0	-139	-2	-137	0,1	30	-21,9
Betrieblicher Aufwand	-273.027	98,7	-286.162	-58.161	-228.001	94,7	-45.026	19,7
Betriebsergebnis	3.234	1,2	9.583	308	9.275	3,8	-6.041	-65,1
Umsatzrentabilität	1,40%		3,7%	0,5%	4,7%
Beteiligungs- und Finanzergebnis	4.414		4.946	-83	5.029		-615
Ergebnis vor Ertragssteuern	7.648		14.529	225	14.304		-6.656
Ertragssteuern	600		-3.164	-259	-2.905		3.505
Jahresergebnis	8.248		11.365	-34	11.399		-3.151

* Ohne die Werte der portugiesischen, tschechischen und slowakischen Niederlassung

Die Umsätze konnten erneut gesteigert werden (+14,8%). Die Gesamtleistung entspricht im Geschäftsjahr 2022/2023 beinahe zu hundert Prozent den Umsatzerlösen. Weitere Details zu den Handels- und Dienstleistungsumsätzen finden sich in den Erläuterungen oben unter Punkt 1.1 Allgemeine Geschäftsentwicklung bzw. nachfolgend unter Punkt 3. Zweigniederlassungen.

Der Personalaufwand ist, trotz des Wegfalls der genannten Niederlassung, gestiegen (Mio. € 6,3), was durch einen Anstieg der Mitarbeiteranzahl in den verbleibenden Niederlassungen sowie allgemeine Gehaltssteigerungen zu erklären ist.

Das Betriebsergebnis ist im Wesentlichen durch die erhöhten Personalkosten um Mio. € 6,0 unter dem des Vorjahres geblieben. Dadurch sank die Umsatzrendite bzw. der Return of Sales (Betriebsergebnis/Handelsumsatz) von im bereinigten* Vorjahr 4,7% auf 1,4% im Geschäftsjahr.

Beteiligungs- und Finanzergebnis

	31.03.2023	31.03.2022
	T€	T€
Abschreibungen auf Finanzanlagen	0	-2.213
Erträge aus Beteiligungen	0	4.047
Zinsen und ähnliche Aufwendungen	-2.666	-166
Sonstige Zinsen und ähnliche Erträge	1.247	586
Erträge aus der Veräußerung
von Niederlassungen	356	2.692
von Gebäuden	5.477	0
Beteiligungs- und Finanzergebnis	4.414	4.946

Die Zinsen und ähnlichen Aufwendungen enthalten T€ 2.465 für Steuernachforderungen. Es handelt sich um Risiken resultierend aus der abgeschlossenen Betriebsprüfung für den Veranlagungszeitraum 2010 bis 2013 sowie die Risiken aus den noch nicht abgeschlossene Betriebsprüfungen der folgenden Veranlagungszeiträume 2014 bis 2017. Für die wesentlichen Prüfungsfeststellungen des Veranlagungszeitraums 2010 bis 2013 wird ein Verständigungsverfahren angestrebt.

Im Geschäftsjahr wurde die Umstrukturierung des europäischen Konzernbereiches fortgesetzt. Wie bereits erwähnt wurden die tschechische und die slowakische Niederlassung an die FEN veräußert.

Die Steuern vom Einkommen und Ertrag weisen im Geschäftsjahr einen Ertrag aus. Die enthaltenen periodenfremden Erträge betragen T€ 3.651. Sie betreffen im Wesentlichen Anpassungen der Steuerrückstellung für die Veranlagungszeiträume 2010 bis 2017. Sie basieren auf den im Betriebsprüfungsbericht für den Veranlagungszeitraum 2010 bis 2013 vorgenommenen Anpassungen

Die Betriebsprüfung für die Jahre 2014 bis 2017 wurde im Geschäftsjahr fortgesetzt. Bislang liegen keine Prüfungsfeststellungen vor.

Jahresergebnis

Der Jahresüberschuss in Höhe von Mio. € 8,2 liegt unter dem des bereinigten* Vorjahres, was im Wesentlichen durch die erhöhten Personalkosten sowie die Erträge aus der Auflösung von Steuerrückstellungen begründet ist.

3. Zweigniederlassungen

Die Gesellschaft besitzt zum Bilanzstichtag noch vier Niederlassungen. Es sind die Niederlassungen in Deutschland, Spanien, Tschechien und Österreich. Die slowakische Niederlassung konnte im Geschäftsjahr rechtlich abgewickelt und aus dem Register in der Slowakei gelöscht werden. Die tschechische Niederlassung wurde noch nicht geschlossen, da das im Besitz befindliche Bürogebäude nicht an die neue Gesellschaft übertragen wurde und daher zunächst veräußert werden muss. Die Niederlassung hat ansonsten aber kein operatives Geschäft mehr. Ferner hat die FEG zum 30. April 2023 die Aktiva und Passiva der portugiesischen Niederlassung in eine neue Gesellschaft eingelegt, die als eigenständiges Unternehmen weitergeführt wird. Auch diese Gesellschaft konnte im Geschäftsjahr geschlossen und aus den portugiesischen Registern gelöscht werden

	Umsatz in T€
FEG-D FUJIFILM Deutschland, Niederlassung der FUJIFILM Europe GmbH in Düsseldorf (Deutschland)	137.856
FEG-ES FUJIFILM Europe GmbH, Sucursal en Espana in Barcelona (Spanien)	81.066
FEG-POR FUJIFILM Europe GmbH - Sucursal em Portugal in Vila Nova de Gaia (Portugal)	3.620
FEG-CZ FUJIFILM Europe GmbH (organizacni slozka) in Prag (Tschechien)	---
FEG-AT FUJIFILM Europe GmbH, Niederlassung Österreich, Wien (Österreich)	6.201

4. Prognose-, Chancen- und Risikobericht

Prognosebericht

Die Wirtschaft erholt sich langsam von den Folgen der Pandemie, jedoch hat der Ukraine Krieg Einfluss auf das Geschäft. Durch die extreme Verschlechterung in der Lieferkette, den explosionsartig gestiegenen Rohstoffpreisen, im speziellen Aluminium, ist das Geschäft unseres Hauptumsatzträgers, die Offset Druckplatte, deutlich schwieriger geworden. Durch die Reduzierung der Aluminiumfördermenge unserer Zulieferer waren wir im Geschäftsjahr 2022/2023 nicht in der Lage Neukunden zu gewinnen. Um den Kostenanstieg zu kompensieren, wurden Aufschläge für Aluminium und Energie erhoben. Dieser Trend lässt allerdings langsam nach, da die Kosten für Energie in den letzten Monaten wieder rückläufig waren.

Wie bereits beschrieben hat sich die deutsche Wirtschaft erholt und ist in 2022 mit 1,8% gewachsen (Quelle: European Economic Forecast Winter 2023 der europäischen Kommission vom Februar 2023). Allerdings hatten bis zum dritten Quartal 2022 die Investitionen und der private Verbrauch noch nicht wieder das Niveau von vor der Pandemie erreicht und gingen im vierten Quartal zurück; das reale BIP schrumpfte um 0,2 %. Der Internationale Währungsfonds (IWF) hat daher im Juli 2023 seine Prognose aktualisiert. Noch immer ist das Wachstum der Weltwirtschaft schwach - und noch immer gibt es viele Risiken. Die deutsche Wirtschaft wird aus Sicht des Internationalen Währungsfonds in 2023 um 0,3 Prozent schrumpfen. Vor drei Monaten ist der IWF noch von einem einen Rückgang der Wirtschaftsleistung in Deutschland um 0,1 Prozent ausgegangen. Für 2024 rechnet der Währungsfonds in Deutschland dagegen mit einer etwas stärkeren Erholung als zuvor. Das Bruttoinlandsprodukt (BIP) werde voraussichtlich um 1,3 Prozent statt der zuvor erwarteten 1,1 Prozent steigen. Laut dem IWF erholt sich die Weltwirtschaft nach und nach von der Pandemie und Russlands Angriff auf die Ukraine. Die Arbeitsmärkte seien überraschend stark, der steile Abfall der Preise für Energie und Lebensmittel habe den Inflationsdruck schneller gemindert als erwartet. Der IWF senkte die Prognose für die Inflation in diesem Jahr von 7,0 auf 6,8 Prozent. Dennoch geht der IWF von einer deutlichen Abkühlung der Weltwirtschaft in 2023 im Vergleich zum Jahr 2022 aus.

In der Eurozone schraubte der IWF vor allem dank des aktuellen Reise-Booms unter anderem die diesjährige Prognose für Spanien hoch: Und zwar von 1,5 Prozent Wachstum auf 2,5 Prozent.

Der Handelsumsatz der Gesellschaft (ohne Berücksichtigung der konzerninternen Leistungsverrechnung) ist aufgrund der Ausgliederung der Standorte in Portugal, Tschechien und der Slowakei in eigene Gesellschaften von € 258 Mio. um ca. 12% auf € 227 Mio. gefallen. Der im Vorjahr prognostizierte Umsatz in Höhe von € 222 Mio. wurde jedoch leicht übertroffen. Der Anstieg ist auf einen besseren Geschäftsverlauf in fast allen Bereichen (Photo-Imaging +13%, Graphic +17% und Medical +8%) und allen FEG Niederlassungen (Deutschland, Spanien, Österreich) zurückzuführen. Wie bereits zuvor erläutert, entsprach der Umsatz im Medical Bereich (Mio. € 108,0) den Erwartungen (Mio. € 108,8). Der Umsatz des Bereichs Graphic ist zwar leicht von Mio. € 77 im Vorjahr lauf Mio. € 76 gefallen, allerdings nur deshalb, weil die Auslandsniederlassungen in Portugal, Tschechien und der Slowakei zu eigenständigen FUJIFILM Gesellschaften wurden und keine Niederlassungen der FUJIFILM Europe GmbH mehr sind. Bereinigt um diesen Effekt ist der Umsatz des Bereichs Graphic von Mio. € 65 im Vorjahr auf Mio. € 76 gestiegen, wobei die Produktgruppe "Plate" (Druckplatten) den höchsten Umsatzanteil hatte. Der erreichte Umsatz entsprach auch hier den Erwartungen.

Durch die extreme Verschlechterung in der Lieferkette, den explosionsartig gestiegenen Rohstoffpreisen, im speziellen Aluminium, ist der Hauptumsatzträger die Offset Druckplatte, unter Druck. Zudem haben die Zulieferer die Fördermenge von Aluminium reduziert. Investitionen im Bereich CTP (Computer to Plate) Equipment stagnieren. Digitale Drucksysteme wie Jetpress, POD (Print on demand), WFIJ und Packaging finden hingegen großen Anklang. Für den Kunden ergeben sich neue Geschäftsfelder, die man vorher zwar auch bedienen konnte, jetzt aber durch die Digitalisierung betriebswirtschaftlich erfolgreicher produzieren können, beispielsweise im Digitaldruck. Der während der Pandemie sehr stark unter Druck geratene WFIJ Equipment Bereich erholt sich langsam. Durch Events und Großveranstaltungen wird wieder mehr im POS (Point of Sales Bereich) gedruckt. Hervorzuheben ist der neue Bereich POD (Print on demand). Die Budgetzahlen wurden hier weitestgehend erfüllt. Dieser Bereich wird in Zukunft weiter ausgebaut werden. Im bestehenden Produktsegment JetPress sind auch in diesem Geschäftsjahr die Budgetzahlen erfüllt worden. Bei allen erteilten Aufträgen stellten wir fest, dass sich die Kunden für FUJIFILM als ein Komplettanbieter entschieden haben, Das Kerngeschäft, der Druckplattenbereich, drängt sich immer weiter in den Hintergrund. Die zunehmende Digitalisierung führt dazu, dass der Tinten- und Tonerumsatz irgendwann die kon-ventionelle Druckplatte im Umsatz ablösen wird.

Im Bereich der Endoskopie hat FUJIFILM durch die Einführung der ELUXEO Endoskop-Serie den Marktanteil weiter ausbauen können. Im Bereich der Praxen und der kleinen und mittleren Krankenhäuser wurde der Umsatz mit Einführung der für diese Segmente zugeschnittenen ELUXEO Light Serie weiterhin ausgeweitet. Aufgrund des sich ergänzenden Produktportfolios der Gesellschaft Fujifilm Medwork GmbH ergeben sich Synergie-Effekte, die FUJIFILM weiter ausgeschöpft und vorangetrieben hat. Einen positiven Effekt wird von der Aufnahme der High-End Ultraschall Lösung Arietta in das Portfolio und die weitere Integration der FUJIFILM HealthCare Deutschland erwartet. Durch die Kompatibilität der Arietta mit den FUJIFILM EUS Endoskopen (endoskopischer Ultraschall) kann FUJIFILM Produktlösungen für die Endo-Sonographie im Premium Segment anbieten. Aus der hohen Anzahl von Vollserviceverträgen resultiert eine sehr gute Planbarkeit des Service-Geschäftes in den folgenden Jahren. Die Investitionsbereitschaft der Krankenhäuser, Krankenhausketten und Universitätskliniken war sehr hoch. Das Marktumfeld der flexiblen Gastro-Enterologie ist auch im letzten Geschäftsjahr weiterhin sehr überschaubar: insgesamt gibt es im Wesentlichen mit Olympus und Pentax zwei weitere Wettbewerber. Weitere chinesische Hersteller versuchen auf den deutschen Markt zu drängen. Aufgrund der bestehenden Kundenbindungen und den komplexen Serviceanteilen haben diese Hersteller bisher jedoch keinen Erfolg in der Umsetzung Ihrer Strategie. In der Radiologie wurden weiterhin Komplettanlagen für die Projektionsradiologie (Bucky-Systeme) im Krankenhaussegment erfolgreich verkauft. Auch das durch Fujifilm entwickelte mobile Röntgensystem FDR Nano wurde weiterhin erfolgreich verkauft. FUJIFILM konnte sich in großen Tender im Krankenhausgeschäft durchsetzen und somit den Marktanteil im konventionellen Röntgen innerhalb des Krankenhausgeschäfts ausbauen. Im FY2022 wurde die installierte Basis der C-Bogen Systeme weiter ausgebaut. Das Portfolio im Bereich C-Bogen wird im Geschäftsjahr 2023/2024 weiter ausgebaut. Die erfolgreiche Nutzung möglicher Synergien von FUJIFILM Healthcare Europe (FHC, vormals Hitachi Diagnostic Imaging) und FUJIFILM Europe ist ein zentraler Bestandteil der Wachstumsstrategie. FUJIFILM wird sich mit dieser Übernahme als einer der wesentlichen Marktteilnehmer im Gesundheitswesen weiter etablieren. Weitere aktuelle Wachstumsmöglichkeiten sind die Entwicklung von Synergien im Bereich des Ultraschalls. Ein besonderer Schwerpunkt in FY2023 liegt im Ausbau der Vertriebsaktivitäten im Bereich der offenen MRTs. Bereits im FY2022 konnte ein hoher Auftragseingang im Bereich dieser Systeme verzeichnet werden. Durch die aktuelle Marktentwicklung und die Fokussierung lässt sich das MRT-Geschäft weiter ausbauen, welches auch einen positiven Effekt auf die Kundenwahrnehmung in Bezug auf FUJIFILM als Lösungsanbieter in der Radiologie hat.

Eine weitere Umsatzgröße im Händlerkanal sind die IVD (in-Vitro Diagnostik) Produkte. Aufgrund der hohen und wiederkehrenden Einheiten an Verbrauchsmaterialien pro verkauftem System ist von einem planbaren Umsatz in den Folgejahren zu rechnen. Statt via Reseller B2B werden nun die Veterinär Endkunden beliefert B2C. Bei Medical IT werden vielversprechende Plattformen wie Digitale Pathologie, AI und Cloud Systeme eingeführt.

In Spanien ist der Umsatz in allen Geschäftsbereichen und somit insgesamt von Mio. € 70,7 um 12,3% auf Mio. € 79,4 gestiegen.

Bezogen auf den Jahresüberschuss wurden die Ziele der Gesellschaft erreicht. Es wurde ein Jahresüberschluss von Mio. € 8,2 erzielt (Prognose des Vorjahres Mio. € 8,3).

Entsprechend der geplanten Entwicklung in den verbleibenden Niederlassungen in Deutschland, Spanien und Österreich erwartet die Gesellschaft für das kommende Geschäftsjahr 2023/2024 einen Umsatz (vor Leistungsverrechnungen im Konzern) von Mio. € 226,8 und einen Jahresüberschuss von Mio. € 4,7. Die Prognose bleibt, auch aufgrund der unter Umfeld- und Branchenrisiken beschriebenen Sachverhalte, jedoch ungewiss.

Chancenbericht

Ganz klarer Fokus und Strategie im Graphic Bereich liegt im digitalen High End Segment. Mit der Präsentation neuer Gerätegenerationen im Bereich POD (Revoria 1120S, E1, ApeosPro, Dooha und Iroha), der Jetpress 750HSM und der Packaging Variante, der bis zu 5 Meter breiten druckenden digitalen Rollenmaschine Acuity Ultra, der Acuity Ultra Hybrid (für Rollen und starre Medien) und der Flachbettmaschinen Serie Acuity Prime 20/30 und L. Zudem wird die Ankündigung und der Verkauf einer B2 POD Maschine, einer Roll2Roll Commercial Jetpress 1160 CFG und der neuen flexiblen Flexomaschine FP790 gleichzeitig den Verkauf unserer INK und Tonerumsätze steigern.

Auch im Medical Bereich ist FUJIFILM mit den neuen Produkten gut für die Zukunft gerüstet. Im laufenden Geschäftsjahr hat FUJIFILM sein Angebot eines Add-on für die ELUXEO und ELUXEO Lite Serie im Rahmen einer Kampagne weiter verstärkt: Mit der neuen Technologie "CAD EYE" werden mit künstlicher Intelligenz die Detektion und Charakterisierung von Kolonpolypen unterstützt. Durch die Kompatibilität der Arietta mit den FUJIFILM EUS Endoskopen (endoskopischer Ultraschall) kann FUJIFILM Produktlösungen für die Endo-Sonographie im Premium Segment anbieten, was eine sinnvolle Ergänzung zu dem bestehenden Portfolio ist und von den Kunden entsprechend positiv wahrgenommen wird. Durch die hohe Produktqualität sowie Innovationsmerkmale in Kombination mit einer wirtschaftlichen Angebotsgestaltung hat FUJIFILM eine gute Möglichkeit die Marktstellung auch im Geschäftsjahr 2023/2024 weiter zu steigern. Aufgrund der zukünftig zu erwartenden ständigen Modifizierung und Erweiterung des Produktportfolios im Bereich der Endoskopie sind die Chancen von FUJIFILM sehr hoch, ihren Marktanteil in allen Segmenten weiter auszubauen. Im Radiologie-Bereich wird das FUJIFILM Produktportfolio vor allem durch die radiologischen Großgeräte (MR/CT) ergänzt. Weitere aktuelle Wachstumsmöglichkeiten sind die Entwicklung von Synergien im Bereich des Ultraschalls, wie z.B. durch die Entwicklung des Women's Health und des Veterinär Portfolios durch Ultraschallsysteme oder der Lead Generierung für C-Bögen durch den FHC Vertrieb im Bereich der Chirurgie oder Urologie.

Risikobericht

Umfeld- und Branchenrisiken:

Das Jahr 2022/2023 war zwar durch eine Erholung von der COVID-19 Pandemie gekennzeichnet, jedoch setzen die hohe Inflation, der Ukraine Krieg, die hohen Rohstoffpreise und die Probleme in den Lieferketten der Wirtschaft stark zu. Grundsätzlich kann davon ausgegangen werden, dass diese globalen Risiken zunächst bestehen bleiben werden (hohes Risiko). Dennoch deuten die zuvor beschriebenen Prognosen auf eine weitere Erholung der Weltwirtschaft hin, auch wenn die Wirtschaft in Deutschland in 2023 vermutlich noch schrumpfen und erst in 2024 wieder steigen wird. Daher sieht sich die Gesellschaft auf einem guten Weg für die Zukunft und erwartet einen Ausbau des Geschäfts. Neue und/oder verbesserte Produkte, neue Technologien und eine ständige Anpassung der internen Organisation und Prozesse schaffen die Basis für weiteres Wachstum.

Zudem spielt die Einführung neuer Technologien und Produkte eine sehr große Rolle. Dies zeigt sich auch daran, dass sich FUJIFILM seit vielen Jahren auf den Trend zur Digitalisierung und andere Änderungen im Markt eingestellt hat.

Leistungswirtschaftliche Risiken:

Die FEG hält Beteiligungen an einer deutschen Gesellschaft, einer portugiesischen sowie an einer Gesellschaft in den Vereinigten Arabischen Emiraten.

Finanzwirtschaftliche Risiken:

Wie auch in den letzten Jahren bleibt die Entwicklung der Wechselkurse ein latentes Risiko, das von Unternehmensseite nicht zu beeinflussen ist (geringes Risiko).

Auch die Werthaltigkeit von Forderungen stellt ein Risiko für die Gesellschaft dar. Dem Risiko wird einerseits durch die Bildung von Wertberichtigungen und andererseits durch ein effizientes Debitorenmanagement begegnet (geringes Risiko). Trotz der anhaltenden Pandemie und dem Krieg in der Ukraine lassen sich derzeit keine wesentlichen negativen Folgen auf die Werthaltigkeit der Forderungen (Ausfall von Forderungen, Verschlechterung der Altersstruktur der Forderungen) erkennen.

Sonstige Risiken:

Wie alle Wirtschaftsunternehmen unterliegt die Gesellschaft der laufenden Überprüfung der deklarierten und abgeführten Steuern durch die nationalen Finanzverwaltungen. Der betragsmäßig höchste Anteil des Geschäftsvolumens entfällt auf Deutschland. Im Geschäftsjahr 2022/2023 ist die Betriebsprüfung für die Veranlagungsjahre 2010 bis 2013 abgeschlossen sowie für die Veranlagungsjahre 2014 bis 2017 fortgesetzt worden (mittleres Risiko).

Für die Betriebsprüfung der Veranlagungsjahre 2007 bis 2009 ist von der Finanzverwaltung ein Betriebsprüfungsbericht erstellt worden. Die aufgrund des Betriebsprüfungsberichts mit Steuerbescheid festgesetzten Steuern sind zum großen Teil umstritten. Ein Verständigungsverfahren mit den Finanzbehörden ist eingeleitet. Wesentliche Diskussionspunkte betreffen die Transferpreise und die Bewertung des auf die FUJIFILM Europe B.V. übertragenen Exportgeschäfts. Ebenso wird für die abgeschlossene Betriebsprüfung der Veranlagungsjahre 2010 bis 2013 mit den Finanzbehörden ein Verständigungsverfahren angestrebt.

5. Gesamtaussage

In Anbetracht der positiven Erwartung bei der Umsatzentwicklung für das laufende Geschäftsjahr, der stabilen Vermögens- und Finanzlage und der stetigen Anpassung des Produktportfolios an die Märkte und an die technologischen Entwicklungen befindet sich die Gesellschaft in einer gesunden Verfassung und sieht sich auch in Zukunft gut in Bezug auf Wachstum und Gewinnerzielung aufgestellt.

Ratingen, den 1. September 2023

Yoshiki Kimura
Geschäftsführer

Peter Struik
Geschäftsführer

Bestätigungsvermerk des unabhängigen Abschlussprüfers

An die FUJIFILM Europe GmbH, Ratingen

Prüfungsurteile

Wir haben den Jahresabschluss der FUJIFILM Europe GmbH, Ratingen (bis zum 13. April 2022: Düsseldorf), - bestehend aus der Bilanz zum 31. März 2023 und der Gewinn- und Verlustrechnung für das Geschäftsjahr vom 1. April 2022 bis zum 31. März 2023 sowie dem Anhang, einschließlich der Darstellung der Bilanzierungs- und Bewertungsmethoden - geprüft. Darüber hinaus haben wir den Lagebericht der FUJIFILM Europe GmbH für das Geschäftsjahr vom 1. April 2022 bis zum 31. März 2023 geprüft.

Nach unserer Beurteilung aufgrund der bei der Prüfung gewonnenen Erkenntnisse

•

entspricht der beigefügte Jahresabschluss in allen wesentlichen Belangen den deutschen, für Kapitalgesellschaften geltenden handelsrechtlichen Vorschriften und vermittelt unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens- und Finanzlage der Gesellschaft zum 31. März 2023 sowie ihrer Ertragslage für das Geschäftsjahr vom 1. April 2022 bis zum 31. März 2023 und

•

vermittelt der beigefügte Lagebericht insgesamt ein zutreffendes Bild von der Lage der Gesellschaft. In allen wesentlichen Belangen steht dieser Lagebericht in Einklang mit dem Jahresabschluss, entspricht den deutschen gesetzlichen Vorschriften und stellt die Chancen und Risiken der zukünftigen Entwicklung zutreffend dar.

Gemäß § 322 Abs. 3 Satz 1 HGB erklären wir, dass unsere Prüfung zu keinen Einwendungen gegen die Ordnungsmäßigkeit des Jahresabschlusses und des Lageberichts geführt hat.

Grundlage für die Prüfungsurteile

Verantwortung der gesetzlichen Vertreter für den Jahresabschluss und den Lagebericht

Außerdem sind die gesetzlichen Vertreter verantwortlich für die Aufstellung des Lageberichts, der insgesamt ein zutreffendes Bild von der Lage der Gesellschaft vermittelt sowie in allen wesentlichen Belangen mit dem Jahresabschluss in Einklang steht, den deutschen gesetzlichen Vorschriften entspricht und die Chancen und Risiken der zukünftigen Entwicklung zutref-fend darstellt. Ferner sind die gesetzlichen Vertreter verantwortlich für die Vorkehrungen und Maßnahmen (Systeme), die sie als notwendig erachtet haben, um die Aufstellung eines Lageberichts in Übereinstimmung mit den anzuwendenden deutschen gesetzlichen Vorschriften zu ermöglichen und um ausreichende geeignete Nachweise für die Aussagen im Lagebericht erbringen zu können.

Verantwortung des Abschlussprüfers für die Prüfung des Jahresabschlusses und des Lageberichts

Während der Prüfung üben wir pflichtgemäßes Ermessen aus und bewahren eine kritische Grundhaltung. Darüber hinaus

•	identifizieren und beurteilen wir die Risiken wesentlicher falscher Darstellungen im Jahresabschluss und im Lagebericht aufgrund von dolosen Handlungen oder Irrtümern, planen und führen Prüfungshandlungen als Reaktion auf diese Risiken durch sowie erlangen Prüfungsnachweise, die ausreichend und geeignet sind, um als Grundlage für unsere Prüfungsurteile zu dienen. Das Risiko, dass aus dolosen Handlungen resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, ist höher als das Risiko, dass aus Irrtümern resultierende wesentliche falsche Darstellungen nicht aufgedeckt werden, da dolose Handlungen kollusives Zusammenwirken, Fälschungen, beabsichtigte Unvollständigkeiten, irreführende Darstellungen bzw. das Außerkraftsetzen interner Kontrollen beinhalten können.
•	gewinnen wir ein Verständnis von dem für die Prüfung des Jahresabschlusses relevanten internen Kontrollsystem und den für die Prüfung des Lageberichts relevanten Vorkehrungen und Maßnahmen, um Prüfungshandlungen zu planen, die unter den gegebenen Umständen angemessen sind, jedoch nicht mit dem Ziel, ein Prüfungsurteil zur Wirksamkeit dieser Systeme der Gesellschaft abzugeben.
•	beurteilen wir die Angemessenheit der von den gesetzlichen Vertretern angewandten Rechnungslegungsmethoden sowie die Vertretbarkeit der von den gesetzlichen Vertretern dargestellten geschätzten Werte und damit zusammenhängenden Angaben.
•	ziehen wir Schlussfolgerungen über die Angemessenheit des von den gesetzlichen Vertretern angewandten Rechnungslegungsgrundsatzes der Fortführung der Unternehmenstätigkeit sowie, auf der Grundlage der erlangten Prüfungsnachweise, ob eine wesentliche Unsicherheit im Zusammenhang mit Ereignissen oder Gegebenheiten besteht, die bedeutsame Zweifel an der Fähigkeit der Gesellschaft zur Fortführung der Unternehmenstätigkeit aufwerfen können. Falls wir zu dem Schluss kommen, dass eine wesentliche Unsicherheit besteht, sind wir verpflichtet, im Bestätigungsvermerk auf die dazugehörigen Angaben im Jahresabschluss und im Lagebericht aufmerksam zu machen oder, falls diese Angaben unangemessen sind, unser jeweiliges Prüfungsurteil zu modifizieren. Wir ziehen unsere Schlussfolgerungen auf der Grundlage der bis zum Datum unseres Bestätigungsvermerks erlangten Prüfungsnachweise. Zukünftige Ereignisse oder Gegebenheiten können jedoch dazu führen, dass die Gesellschaft ihre Unternehmenstätigkeit nicht mehr fortführen kann.
•	beurteilen wir Darstellung, Aufbau und Inhalt des Jahresabschlusses insgesamt einschließlich der Angaben sowie ob der Jahresabschluss die zugrunde liegenden Geschäftsvorfälle und Ereignisse so darstellt, dass der Jahresabschluss unter Beachtung der deutschen Grundsätze ordnungsmäßiger Buchführung ein den tatsächlichen Verhältnissen entsprechendes Bild der Vermögens-, Finanz- und Ertragslage der Gesellschaft vermittelt.
•	beurteilen wir den Einklang des Lageberichts mit dem Jahresabschluss, seine Gesetzesentsprechung und das von ihm vermittelte Bild von der Lage des Unternehmens.
•	führen wir Prüfungshandlungen zu den von den gesetzlichen Vertretern dargestellten zukunftsorientierten Angaben im Lagebericht durch. Auf Basis ausreichender geeigneter Prüfungsnachweise vollziehen wir dabei insbesondere die den zukunftsorientierten Angaben von den gesetzlichen Vertretern zugrunde gelegten bedeutsamen Annahmen nach und beurteilen die sachgerechte Ableitung der zukunftsorientierten Angaben aus diesen Annahmen. Ein eigenständiges Prüfungsurteil zu den zukunftsorientierten Angaben sowie zu den zugrunde liegenden Annahmen geben wir nicht ab. Es besteht ein erhebliches unver-meidbares Risiko, dass künftige Ereignisse wesentlich von den zukunftsorientierten Angaben abweichen.

Düsseldorf, den 1. September 2023

KPMG AG
Wirtschaftsprüfungsgesellschaft

Kuntz
Wirtschaftsprüfer

Özgüc
Wirtschaftsprüfer

31:T327c0,

FUJIFILM Europe GmbH

Ratingen (vormals: Düsseldorf)

Jahresabschluss zum Geschäftsjahr vom 01.04.2021 bis zum 31.03.2022

Bilanz zum 31. März 2022

Aktiva

	31.03.2022	31.03.2022	31.03.2021
	€	€	€
A. Anlagevermögen
I. Immaterielle Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche
Schutzrechte und ähnliche Rechte und Werte	255.175,98		924.990,72
2. Geschäfts- oder Firmenwert	629.575,00		0,00
		884.750,98	924.990,72
II. Sachanlagen
1. Grundstücke und Bauten	5.150.095,48		4.750.139,38
2. Technische Anlagen und Maschinen	6.077.256,66		5.327.884,98
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	1.055.996,60		1.181.664,41
4. Geleistete Anzahlungen und Anlagen im Bau	725.245,49		0,00
		13.008.594,23	11.259.688,77
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	221.158,12		16.242.177,93
2. Wertpapiere des Anlagevermögens	39.822,01		27.725,88
		260.980,13	16.269.903,81
		14.154.325,34	28.454.583,30
B. Umlaufvermögen
I. Vorräte
Unfertige Erzeugnisse		1.269.796,04	5.687.259,42
II. Forderungen und sonstige Vermögensgegenstände
1. Forderungen aus Lieferungen und Leistungen	52.158.443,18		50.854.993,55
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 2.952 (Vorjahr: T€ 2.328)
2. Forderungen gegen verbundene Unternehmen	20.864.067,74		21.524.437,10
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 119 (Vorjahr: T€ 118)
3. Sonstige Vermögensgegenstände	3.752.721,29		2.837.557,27
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 888 (Vorjahr: T€ 963)
		76.775.232,21	75.216.987,92
III. Kassenbestand, Guthaben bei Kreditinstituten		147.369.978,70	271.824.307,79
C. Rechnungsabgrenzungsposten		777.921,70	538.803,75
D. Unterschiedsbetrag aus der Vermögensverrechnung		0,00	236.193,40
		240.347.253,99	381.958.135,58

Passiva

	31.03.2022	31.03.2022	31.03.2021
	€	€	€
A. Eigenkapital
I. Gezeichnetes Kapital	52.150.000,00		52.150.000,00
II. Kapitalrücklage	50.213.284,95		50.213.284,95
III. Bilanzgewinn	11.365.084,93		134.507.385,00
		113.728.369,88	236.870.669,95
B. Rückstellungen
1. Rückstellungen für Pensionen und ähnlicheVerpflichtungen	2.128.817,70		1.972.990,24
2. Steuerrückstellungen	22.084.093,64		20.435.075,77
3. Sonstige Rückstellungen	17.353.981,17		19.947.715,80
		41.566.892,51	42.355.781,81
C. Verbindlichkeiten
1. Verbindlichkeiten gegenüber Kreditinstituten sämtliche mit einer Restlaufzeit bis zu einem Jahr	0,00		2.370.559,33
2. Erhaltene Anzahlungen auf Bestellungen sämtliche mit einer Restlaufzeit bis zu einem Jahr	391.147,65		118.495,82
3. Verbindlichkeiten aus Lieferungen und Leistungen sämtliche mit einer Restlaufzeit bis zu einem Jahr	6.234.703,49		3.079.903,15
4. Verbindlichkeiten gegenüber verbundenen Unternehmen sämtliche mit einer Restlaufzeit bis zu einem Jahr
	63.941.097,52		85.790.147,17
5. Sonstige Verbindlichkeiten	6.347.380,70		4.139.539,46
davon mit einer Restlaufzeit von mehr als einem Jahr T€ 55 (Vorjahr: T€ 85)
davon mit einer Restlaufzeit bis zu einem Jahr T€ 6.292 (Vorjahr: T€ 4.055)
davon aus Steuern T€ 3.887 (Vorjahr: T€ 2.140)
davon im Rahmen der sozialen Sicherheit T€ 286 (Vorjahr: T€ 274)
		76.914.329,36	95.498.644,93
D. Rechnungsabgrenzungsposten		8.137.662,24	7.233.038,89
		240.347.253,99	381.958.135,58

Gewinn- und Verlustrechnung für das Geschäftsjahr 2021/2022

	2021/2022	2021/2022	2020/2021
	€	€	€
1. Umsatzerlöse		300.161.969,23	288.515.169,69
2. Verminderung (i. Vj. Erhöhung) des Bestands an unfertigen Leistungen		4.417.463,38	1.337.399,69
3. Sonstige betriebliche Erträge		20.415.601,11	121.588.300,33
davon Erträge aus der Währungsumrechnung T€ 200 (Vj. T€ 2.551)
		316.160.106,96	411.440.869,71
4. Materialaufwand
a) Aufwendungen für Hilfs- und Betriebsstoffe und für bezogene Waren	180.433.252,78		178.840.848,95
b) Aufwendungen für bezogene Leistungen	49.737.962,56		47.544.242,22
		230.171.215,34	226.385.091,17
5. Personalaufwand
a) Löhne und Gehälter	45.978.682,46		43.667.358,25
b) Soziale Abgaben und Aufwendungen für Altersversorgung	9.540.783,33		9.602.702,90
davon für Altersversorgung T€ 669 (Vorjahr: T€ 864)
		55.519.465,79	53.270.061,15
6. Abschreibungen auf immaterielle Vermögensgegenstände des Anlagevermögens und Sachanlagen		3.617.354,65	3.949.792,76
7. Sonstige betriebliche Aufwendungen		14.437.203,29	11.480.331,76
davon Aufwendungen aus der Währungsumrechnung T€ 363 (Vj. T€ 2.195)
		12.414.867,89	116.355.592,87
8. Erträge aus Beteiligungen		4.046.839,82	26.028.907,73
davon aus verbundenen Unternehmen T€ 4.047 (Vorjahr: T€ 26.029)
9. Sonstige Zinsen und ähnliche Erträge		585.611,40	45.030,95
davon aus verbundenen Unternehmen T€ 1 (Vorjahr: T€ 0)
10. Abschreibungen auf Finanzanlagen		2.213.000,86	11.305.000,00
11. Zinsen und ähnliche Aufwendungen		166.088,30	2.743.410,92
davon an verbundene Unternehmen T€ 115 (Vorjahr: T€ 103)
davon Aufwendungen aus der Aufzinsung T€ 36 (Vorjahr: T€ 43)
12. Steuern vom Einkommen und vom Ertrag		3.163.798,73	8.838.621,13
13. Ergebnis nach Steuern		11.504.431,22	119.542.499,50
14. Sonstige Steuern		139.346,29	171.878,55
15. Jahresüberschuss		11.365.084,93	119.370.620,95
16. Gewinnvortrag		134.507.385,00	15.136.764,05
17. Ausschüttung an Gesellschafter		134.507.385,00	0,00
18. Bilanzgewinn		11.365.084,93	134.507.385,00

Registergericht: AG Düsseldorf, HRB 10639

Anhang für das Geschäftsjahr 2021/2022

Allgemeine Hinweise

Die Gewinn- und Verlustrechnung ist unverändert nach dem Gesamtkostenverfahren aufgestellt.

Um die Klarheit der Darstellung zu verbessern, wurden die Angaben zur Mitzugehörigkeit zu anderen Posten der Bilanz, sofern diese vorlagen, in diesem Anhang gemacht.

Direkt nach Abschluss des Geschäftsjahres 2021/2022 zog die Fujifilm Europe GmbH ("FEG") in die neuen, gemieteten Geschäftsräume in Ratingen.

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wurde am 1. April 2021 die polnische Niederlassung an die FEN veräußert und als eigenständiges Unternehmen weitergeführt. Aus diesem Grund sind die Vorjahreszahlen nur bedingt vergleichbar.

Bilanzierungs- und Bewertungsmethoden

Für die Aufstellung des Jahresabschlusses waren im Wesentlichen die nachfolgenden Bilanzierungs- und Bewertungsmethoden maßgebend.

Im Geschäftsjahr erwarben die spanische und die portugiesische Niederlassung das Geschäftsfeld "Biocare" für ihren Vertriebsbereich von zwei FUJIFILM Konzerngesellschaften. Der sich daraus ergebene Firmenwert in beiden Niederlassungen wird über die voraussichtliche Nutzungsdauer von 10 Jahre abgeschrieben.

Die degressive Methode wird in den deutschen Niederlassungen bei folgenden Wirtschaftsgütern angewandt:

―	Betriebs- und Verwaltungsgebäude 2,5% und 6% mit Anschaffungs- oder Herstellungsdatum vom 1.1.1994

Geringwertige Anlagegüter bis zu einem Netto-Einzelwert von € 800,00 sind im Jahr des Zugangs voll abgeschrieben bzw. als Aufwand erfasst worden; ihr sofortiger Abgang wird unterstellt.

Die Abschreibungen auf Zugänge des Sachanlagevermögens werden zeitanteilig vorgenommen.

Die unfertigen Erzeugnisse sind unter Beachtung des Niederstwertprinzips zu den Herstellungskosten bewertet, die dem Fertigstellungsgrad entsprechen.

Die Rechnungsabgrenzungsposten betreffen vor dem Bilanzstichtag geleistete Zahlungen, die für Aufwand für eine bestimmte Zeit nach dem Bilanzstichtag geleistet wurden.

Die Pensionsrückstellungen wurden auf Basis versicherungsmathematischer Gutachten zum 31.03.2022 bilanziert. Die Rückstellung ist nach dem Anwartschaftsbarwertverfahren (Projected-Unit-Credit-Methode; PUC) mit einem 10-jährigen Durchschnittszinssatz von 1,80% (i. Vj. mit einem 10-jährigen Durchschnittszinssatz von 2,19%) bewertet worden. Bei der Ermittlung des Zinssatzes wurde eine durchschnittliche Restlaufzeit von 15 Jahren gemäß § 253 Abs. 2 Satz 2 HGB angewendet. Weiterhin wurden eine durchschnittliche Gehaltssteigerung von 2,00%, eine Rentensteigerung von 1,75% sowie eine Standard-Fluktuationsrate zur Berechnung der zukünftigen Verpflichtungen angenommen. Als Grundlage für die Ermittlung der Verpflichtung zum Bilanzstichtag dienen die "Richttafeln 2018 G" von Prof. Dr. Klaus Heubeck. Auf Basis des 7-Jahres-Durchschnittszinssatzes von 1,35% ergäbe sich eine Pensionsverpflichtung von T€ 2.448.

Die Differenz zu den Pensionsverpflichtungen auf Basis des 10-Jahres-Durchschnittszinssatzes beträgt hierbei T€ 149. Dieser Unterschiedsbetrag ist ausschüttungsgesperrt (§ 253 Abs. 6 Satz 2 HGB).

Die Rückstellung für Altersteilzeit konnte im Geschäftsjahr aufgelöst werden, da sämtliche Mitarbeiter inzwischen die Passive Phase beendet haben und keine weiteren Mitarbeiter in dieses Modell aufgenommen wurden.

Die Verbindlichkeiten sind mit ihrem Erfüllungsbetrag angesetzt.

Die passiven Rechnungsabgrenzungsposten beinhalten Einnahmen vor dem Abschlussstichtag, die einen Ertrag für eine bestimmte Zeit nach dem Bilanzstichtag darstellen.

Die Umrechnung der in Fremdwährung erstellten Bilanzen der tschechischen und der polnischen Betriebsstätte in Euro erfolgt mit dem Devisenkassamittelkurs am Bilanzstichtag. Die Posten der Gewinn- und Verlustrechnung wurden mit dem jeweiligen Durchschnittskurs des Monats bewertet. Hierbei ergaben sich keine wesentlichen Abweichungen zu der Bewertung mit dem Devisenkassamittelkurs am Transaktionstag. Die Umrechnungsdifferenzen sind erfolgswirksam erfasst worden.

Erläuterungen zur Bilanz

Anlagevermögen

Im Berichtsjahr wurde eine außerplanmäßige Abschreibung in Höhe von € 2,2 Mio. auf den niedrigeren beizulegenden Wert einer Beteiligung an einer deutschen Tochtergesellschaft vorgenommen (Vorjahr: Abschreibung € 11,3 Mio., Zuschreibungen € 48,1 Mio.).

Forderungen und sonstige Vermögensgegenstände

Die Forderungen aus Lieferungen und Leistungen sind zum Teil durch Warenkreditversicherungen, ansonsten durch übliche Eigentumsvorbehalte abgesichert. Die Forderungen gegen verbundene Unternehmen von insgesamt T€ 20.864 (Vorjahr: T€ 21.524) beinhalten Forderungen aus Lieferungen und Leistungen (T€ 20.746, Vorjahr: T€ 21.407) sowie Forderungen aus Gewinnansprüchen (T€ 119, Vorjahr: T€ 118). Es bestehen Forderungen gegen die Gesellschafterin FUJIFILM Europe B.V., Tilburg/Niederlande, in Höhe von T€ 13.768 (Vorjahr: T€ 14.507).

Die kurzfristigen sonstigen Vermögensgegenstände betreffen im Geschäftsjahr insbesondere Forderungen gegen den neuen Vermieter der Geschäftsräume in Ratingen, unter anderem für die verspätete Übergabe dieser Räume (T€ 1.063). Weiterhin sind hier Ertragssteuererstattungsansprüche (T€ 176, Vorjahr: T€ 323), Ertragsabgrenzungen aus langfristigen Serviceverträgen (T€ 558, Vorjahr: T€ 184) sowie debitorische Kreditoren (T€ 299, Vorjahr: T€ 849) ausgewiesen.

Die langfristigen sonstigen Vermögensgegenstände (T€ 888, Vorjahr: T€ 963) beinhalten im Wesentlichen die Rückdeckungsversicherung für die Pensionsansprüche (T€ 668, Vorjahr: T€ 651).

Aktiver Unterschiedsbetrag aus der Vermögensverrechnung

Im Vorjahr überstieg der Rückdeckungsversicherungsbetrag die Rückstellung für Altersteilzeitverpflichtungen um T€ 236 und wurde gemäß § 246 Abs. 2 Sätze 2 und 3 HGB auf der Aktivseite der Bilanz ausgewiesen.

Gezeichnetes Kapital

Das voll eingezahlte Stammkapital beträgt zum 31.03.2022 unverändert € 52,2 Mio.

Kapitalrücklage

Im Geschäftsjahr beträgt die Kapitalrücklage unverändert € 50,2 Mio.

Bilanzgewinn

Die FEG hat im Geschäftsjahr 2021/2022 eine Ausschüttung aus dem Bilanzgewinn an die Muttergesellschaft in Höhe € 134,5 Mio. vorgenommen.

Ausschüttungssperre

Die Ausschüttungssperre gemäß § 253 Abs. 6 Satz 2 HGB für den Bewertungsunterschied der Pensionsverpflichtungen beläuft sich auf T€ 149 (Vorjahr: T€ 215).

Rückstellungen

Verbindlichkeiten

Sämtliche Verbindlichkeiten haben, bis auf eine Ausnahme in den sonstigen Verbindlichkeiten (T€ 55, Vorjahr: T€ 85), eine Restlaufzeit von unter einem Jahr. Die Verbindlichkeiten sind nicht besichert.

Die Verbindlichkeiten gegenüber verbundenen Unternehmen resultieren aus Lieferungen und Leistungen (T€ 49.406, Vorjahr: T€ 74.612) sowie aus gewährten Darlehen der Gesellschafterin (T€ 14.535, Vorjahr: T€ 11.178). Neben dem Darlehen bestehen Verbindlichkeiten aus Lieferungen und Leistungen gegenüber der Gesellschafterin in Höhe von T€ 43.916 (Vorjahr: T€ 72.483).

Weiterhin bestehen sonstige Verbindlichkeiten für Umsatzsteuer, Lohn- und Kirchensteuer und Sozialversicherungsverbindlichkeiten sowie kreditorische Debitoren.

Latente Steuern

Erläuterungen zur Gewinn- und Verlustrechnung

Die Umsatzerlöse setzen sich wie folgt zusammen:

	2021/2022		2020/2021
	Mio. EUR	%	Mio. EUR	%
Umsatzerlöse aus
Handel und Dienstleistungen
- Photo Imaging	41	13,7	52	18,0
- Electronic Imaging	12	4,0	14	4,8
- Graphische Systeme	77	25,7	71	24,6
- Medizinische Systeme	124	41,3	110	38,1
- Sonstiges	4	1,3	2	0,7
	258	86,0	249	86,2
Leistungsverrechnung
im Konzernverbund	42	14,0	40	13,8
	300	100,0	289	100,0
Regionen
- Deutschland	126	42,0	105	36,3
- Europäisches Ausland	171	57,0	182	63,0
- Sonstige	3	1,0	2	0,7
	300	100,0	289	100,0

Sonstige betriebliche Erträge

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur wurde am 1. April 2021 die polnische Niederlassung an die FEN veräußert und als eigenständiges Unternehmen weitergeführt. Der Veräußerungserlös hieraus betrug T€ 2.692.

Die Aufwendungen für die Werbekampagne "Never Stop" (T€ 1.924) wurden im Geschäftsjahr an die japanische Muttergesellschaft weiterbelastet und als Ertrag ausgewiesen.

Im Rahmen des geplanten Umzugs in gemietete Büroräume erzielte die FEG Erträge aus Vertragsstrafen in Höhe von T€ 1.063, da der Vermieter die angemieteten Büroräume nicht vertragsgemäß übergeben konnte. Gleichzeitig musste die FEG eine Vertragsstrafe an den vereinbarten Käufer des Bürogebäudes zahlen, da die FEG dieses Gebäude nicht fristgerecht übergeben konnte (siehe dazu auch die nachfolgende Erläuterung zu den sonstigen betrieblichen Aufwendungen). Die Übergabe des Gebäudes an den Käufer erfolgte im Juni 2022.

Die periodenfremden Erträge, die in den sonstigen betrieblichen Erträgen enthalten sind, enthalten Erträge aus der Auflösung von sonstigen Rückstellungen (T€ 411; Vorjahr: T€ 681). Zudem waren im Vorjahr noch Erträge aus der Zuschreibung von Finanzanlagen (€ 48,1 Mio.) enthalten.

Sonstige betriebliche Aufwendungen

Die sonstigen betrieblichen Aufwendungen beinhalten im Wesentlichen EDV-Kosten, Rechts- und Beratungskosten, Reisekosten, Pkw-Leasing, Kfz-Kosten, Werbekosten sowie sonstige Personalkosten.

Durch den verzögerten Umzug in die gemieteten Büroräume in Ratingen, wie unter den sonstigen betrieblichen Erträgen erläutert, konnte das Bürogebäude in Düsseldorf nicht fristgerecht an den Käufer übergeben werden. Dafür zahlte die FEG vertragsgemäß eine Aufwandsentschädigung in Höhe von T€ 180 an den Käufer des Gebäudes.

Im Berichtsjahr sind keine nennenswerten periodenfremden Aufwendungen zu verzeichnen (T€ 3; Vorjahr: T€ 4).

Erträge aus Beteiligungen

Im Geschäftsjahr wurde von einer Tochtergesellschaft eine Dividende in Höhe von insgesamt € 4,0 Mio. ausgeschüttet (Vorjahr: € 26,0 Mio.).

Abschreibungen auf Finanzanlagen

Im aktuellen Geschäftsjahr wurden auf eine deutsche Beteiligung aufgrund voraussichtlich dauernder Wertminderung eine außerplanmäßige Abwertungen auf den niedrigeren beizulegenden Wert in Höhe von € 2,2 Mio. vorgenommen (Vorjahr: € 11,3 Mio.).

Sonstige Zinsen und ähnliche Erträge

Zinsrückstellungen für Risiken für noch nicht abgeschlossene Betriebsprüfungen konnten in Höhe von T€ 466 aufgelöst werden, da der Zinssatz auf Steuerforderungen im Geschäftsjahr, teilweise rückwirkend, von der Regierung von 6% auf 1,8% gesenkt wurde.

Zinsen und ähnliche Aufwendungen

Zinsen für Steuernachforderungen fielen im Geschäftsjahr nicht an.

Steuern von Einkommen und vom Ertrag

Die periodenfremden Aufwendungen aus Ertragsteuern betragen T€ 566 (Vorjahr: T€ 4.364). Sie betreffen Anpassungen der Steuerrückstellung für die Veranlagungszeiträume 2010 bis 2017. Sie basieren im Wesentlichen auf schriftlichen Stellungnahmen der Betriebsprüfung im abgelaufenen Geschäftsjahr in Zusammenhang mit Transferpreisen.

Sonstige Angaben

Sonstige finanzielle Verpflichtungen/außerbilanzielle Geschäfte

Die sonstigen finanziellen Verpflichtungen der kommenden fünf Geschäftsjahre in Höhe von T€ 24.218 (spätere Verpflichtung T€ 4.605) resultieren aus Miet- und Leasingverträgen für Büro- und Lagergebäude und Kraftfahrzeuge sowie Dienstleistungsverträgen für Kreditversicherung und Gebäudemanagement. Von dem Gesamtbetrag betreffen T€ 5.505 das Geschäftsjahr 2021/2022. Das Leasing ermöglicht der Gesellschaft, die Kapitalbindung zu reduzieren. Wesentliche Risiken hieraus sind nicht erkennbar. Darin enthalten sind finanzielle Mietverpflichtungen gegenüber zwei verbundenen Unternehmen. Die Verpflichtung der kommenden fünf Geschäftsjahre daraus beträgt T€ 2.064.

Die sonstigen finanziellen Verpflichtungen der Niederlassungen in Portugal, Tschechien und der Slowakei sind nicht (oder nur für 1 Monat) in den oben genannten Werten enthalten, da die Niederlassungen am 1. April bzw. 1. Mai 2022 inklusive dieser Verpflichtungen an die Konzernmutter verkauft wurden.

Gegenüber Leasinggesellschaften, über die unsere Kunden Maschinen und Equipment leasen können, besteht eine sogenannte First Loss Vereinbarung, der zufolge die ersten 9,99% Prozent des gesamten Forderungsausfalls aus zwei Verträgen zu unseren Lasten gehen. Diese Garantie beträgt im Geschäftsjahr T€ 94,4. Des Weiteren besteht eine Ausfallbürgschaft in Höhe von T€ 18,4.

Geschäftsführung

Geschäftsführer im Geschäftsjahr waren

•	Herr Toshihisa Iida, Düsseldorf, Manager
•	Herr Peter Struik, Leidschendam/Niederlande, Excecutive Director, (ohne Bezüge)
•	Herr Takahiro Yahiro, President, Tokio/Japan, (ohne Bezüge) bis zum 4. April 2022

Sämtliche Geschäftsführer sind stets berechtigt, die Gesellschaft einzeln zu vertreten.

Gesamtbezüge der Geschäftsführung

Mitarbeiter

Durchschnittliche Zahl der während des Geschäftsjahres 2021/2022 beschäftigten Mitarbeiter:

	Anzahl
Angestellte
- Deutschland	422
- ausländische Niederlassungen	284
	706

Prüfungs- und Beratungsgebühren

Das für das Geschäftsjahr 2021/2022 berechnete Gesamthonorar der Abschlussprüfer (einschließlich der Niederlassungen) beträgt für Abschlussprüfungsleistungen T€ 381. Steuer- und sonstige Beratungen wurden von der Prüfungsgesellschaft nicht geleistet.

Aufstellung des Anteilsbesitzes

Im Rahmen einer Umstrukturierung zur besseren Übersichtlichkeit der Konzernstrukturen wurden im Vorjahr die Anteile von zwölf Gesellschaften an die Muttergesellschaft in den Niederlanden veräußert. Im Berichtsjahr wurden noch weitere Anteile an einer russischen Gesellschaft veräußert. In der FEG verbleiben zum Stichtag nachfolgend aufgeführte Beteiligungen.

	Beteiligung	Währung	Eigenkapital	Ergebnis laut letztem Geschäftsjahr Gewinn (Verlust)
	in %		in 000 LW	in 000 LW
Unmittelbar gehaltene Anteile
Inland
FUJIFILM Imaging Germany Verwaltungs GmbH, Willich ²	100	EUR	91	-
FUJIFILM Imaging Products and Solutions GmbH & Co. KG, Willich, Konzernabschluss ²	100	EUR	9.352	(5.263)
Ausland
ZAO FUJIFILM-RU, Moskau/Russland ⁴			⁴	⁴
FUJIFILM Middle East FZE, Dubai/VAE ¹	100	AED	92.853	8.829
Mittelbar gehaltene Anteile
Über
FUJIFILM Imaging Products and Solutions GmbH & Co. KG, Willich
FUJIFILM Imaging Systems GmbH & Co. KG, Willich ³	100	EUR	³	³

LW= Landeswährung

¹⁾ Jahresabschluss zum 31. März 2018

²⁾ Jahresabschluss zum 31. März 2019

³⁾ Enthalten im Konzernabschluss der FUJIFILM IMAGING PRODUCTS AND SOLUTIONS GmbH & Co. KG, Willich

⁴⁾ Die Anteile wurden an die Muttergesellschaft FUJIFILM Europe B.V., Tilburg, Niederlande, veräußert

Ergebnisverwendungsvorschlag

Da der Bilanzgewinn des Vorjahres vollständig ausgeschüttet wurde, beträgt dieser nach der Verrechnung mit dem Jahresüberschuss ebenfalls € 11,4 Mio.

Konzernverhältnisse

Dieser Konzernabschluss hat gemäß § 292 HGB befreiende Wirkung für die FUJIFILM Europe GmbH, da er einschließlich des Bestätigungsvermerks des Abschlussprüfers in deutscher Sprache offengelegt wird. Der befreiende Konzernabschluss der FUJIFILM Holdings Corporation zum 31.03.2021 wurde am 22. Juli 2022 im elektronischen Bundesanzeiger veröffentlicht.

Es bestehen die folgenden wesentlichen, im befreienden Konzernabschluss vom deutschen Recht abweichend angewandten Bilanzierungs-, Bewertungs- und Konsolidierungsmethoden:

Bei der Bilanzierung nach HGB sowie der Bilanzierung nach US-Rechnungslegung stehen unterschiedliche Rechnungslegungsphilosophien im Vordergrund. Für die handelsrechtliche Rechnungslegung sind das Vorsichts- und das Gläubigerschutzprinzip vorrangig, während die US-Rechnungslegung ihren Schwerpunkt auf Informationen für gegenwärtige und potentielle Investoren legt. Generell steht bei der US-Rechnungslegung die periodengerechte Erfassung von Aufwendungen und Erträgen (matching principle) stärker im Vordergrund als in der deutschen Rechnungslegung.

Rückstellungen

Pensionsrückstellungen

Eigenkapital

Unrealisierte Gewinne

Immaterielle Vermögensgegenstände

Restrukturierungsmaßnahmen

Rückstellungen für Restrukturierungsmaßnahmen und Schließungskosten sind gemäß US-GAAP zu bilden, wenn spezifische Kriterien kumulativ erfüllt sind; insbesondere wird die Abfassung eines Plans sowie die Verpflichtung zu dessen Umsetzung durch die Unternehmensleitung vorausgesetzt. Für die deutsche Rechnungslegung gelten die allgemeinen Voraussetzungen für den Ansatz von Verbindlichkeitsrückstellungen.

Latente Steuern

Latente Steuerguthaben aus steuerlichen Verlustvorträgen sind im Zeitpunkt ihrer Entstehung zu aktivieren; bei eingeschränkter Realisierbarkeit ist eine Wertberichtigung vorzunehmen.

Nachtragsbericht

Im Rahmen der Anpassung und Vereinfachung der europäischen Konzernstruktur werden im Geschäftsjahr 2022/2023 drei ausländischen Niederlassungen der FEG an die FEN veräußert und als eigenständige Unternehmen weitergeführt. Die bisherige Niederlassung in Polen ist bereits seit April 2021 eigenständig. Im April 2022 wurden die Niederlassungen in Tschechien und der Slowakei an die FEN veräußert, im Mai 2022 dann die portugiesische Niederlassung. Die übrigen ausländischen Niederlassungen in Spanien und Österreich sollen bis auf weiteres in der FEG verbleiben.

Ratingen, den 18. November 2022

Toshihisa Iida

Peter Struik

Entwicklung des Anlagevermögens für das Geschäftsjahr 2021/2022

	Anschaffungskosten
	01.04.2021	Währungskursanpassung	Zugänge	Abgänge	Transfer	31.03.2022
	€	€	€	€	€	€
I. Immaterielle
Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	7.874.479,76	5.458,96	124.769,48	3.797.464,71	-108.657,58	4.098.585,91
2. Geschäfts- oder Firmenwert	257.164,88	0,00	659.269,00	37.163,88	0,00	879.270,00
	8.131.644,64	5.458,96	784.038,48	3.834.628,59	108.657,58	4.977.855,91
II. Sachanlagen
1. Grundstücke und Bauten	25.191.753,43	161.940,45	578.720,76	0,00	-41.403,27	25.891.011,37
2. Technische Anlagen und Maschinen	18.367.164,23	73.542,79	3.690.532,50	2.813.096,76	-675.082,40	18.643.060,36
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	11.595.920,14	66.517,62	441.157,16	5.077.895,40	-483.863,18	6.541.836,34
4. Geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	725.245,49	0,00	0,00	725.245,49
	55.154.837,80	302.000,86	5.435.655,91	7.890.992,16	1.200.348,85	51.801.153,56
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	184.770.083,12	0,00	0,00	26.667.630,95	0,00	158.102.452,17
2. Wertpapiere des Anlagevermögens	27.725,88	0,00	12.096,13	0,00	0,00	39.822,01
	184.797.809,00	0,00	12.096,13	26.667.630,95	0,00	158.142.274,18
	248.084.291,44	307.459,82	6.231.790,52	38.393.251,70	1.309.006,43	214.921.283,65

	Kumulierte Abschreibungen
	01.04.2021	Währungskursanpassung	Zugänge	Abgänge	Transfer	31.03.2022
	€	€	€	€	€	€
I. Immaterielle
Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	6.949.489,04	4.916,71	748.055,60	3.797.464,70	-61.586,72	3.843.409,93
2. Geschäfts- oder Firmenwert	257.164,88	0,00	29.694,00	37.163,88	0,00	249.695,00
	7.206.653,92	4.916,71	777.749,60	3.834.628,58	61.586,72	4.093.104,93
II. Sachanlagen
1. Grundstücke und Bauten	20.441.614,05	48.001,74	292.703,36	0,00	-41.403,26	20.740.915,89
2. Technische Anlagen und Maschinen	13.039.279,25	37.606,56	2.160.506,60	2.267.301,16	-404.287,55	12.565.803,70
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	10.414.255,73	54.352,91	386.395,09	5.023.746,19	-345.417,80	5.485.839,74
4. Geleistete Anzahlungen und Anlagen im Bau	0,00	0,00	0,00	0,00	0,00	0,00
	43.895.149,03	139.961,21	2.839.605,05	7.291.047,35	791.108,61	38.792.559,33
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	168.527.905,19	0,00	2.213.000,86	12.859.612,00	0,00	157.881.294,05
2. Wertpapiere des Anlagevermögens	0,00	0,00	0,00	0,00	0,00	0,00
	168.527.905,19	0,00	2.213.000,86	12.859.612,00	0,00	157.881.294,05
	219.629.708,14	144.877,92	5.830.355,51	23.985.287,93	852.695,33	200.766.958,31

	Buchwerte
	31.03.2022	31.03.2021
	€	€
I. Immaterielle
Vermögensgegenstände
1. Entgeltlich erworbene Konzessionen, gewerbliche Schutzrechte und ähnliche Rechte und Werte	255.175,98	924.990,72
2. Geschäfts- oder Firmenwert	629.575,00	0,00
	884.750,98	924.990,72
II. Sachanlagen
1. Grundstücke und Bauten	5.150.095,48	4.750.139,38
2. Technische Anlagen und Maschinen	6.077.256,66	5.327.884,98
3. Andere Anlagen, Betriebs- und Geschäftsausstattung	1.055.996,60	1.181.664,41
4. Geleistete Anzahlungen und Anlagen im Bau	725.245,49	0,00
	13.008.594,23	11.259.688,77
III. Finanzanlagen
1. Anteile an verbundenen Unternehmen	221.158,12	16.242.177,93
2. Wertpapiere des Anlagevermögens	39.822,01	27.725,88
	260.980,13	16.269.903,81
	14.154.325,34	28.454.583,30

Lagebericht für das Geschäftsjahr 2021/2022

1. Geschäftsverlauf und Rahmenbedingungen

FUJIFILM Europe GmbH

Ratingen

Befreiender Konzernabschluss gem. § 292 HGB zum Geschäftsjahr vom 01.04.2020 bis zum 31.03.2021

FUJIFILM Holdings Corporation

Tokio/Japan

Consolidated Financial Statements

FUJIFILM Holdings Corporation and Subsidiaries

March 31, 2021 with Report of Independent Auditors

[English Translation of the Independent Auditor's Report Originally Issued in Japanese Language]

Independent Auditor's Report on the Consolidated Financial Statements

The Board of Directors of FUJIFILM Holdings Corporation

Report on the Audit of the Consolidated Financial Statements

Opinion

Basis for Opinion

Key Audit Matters

Responsibilities of Management and Corporate Auditors and the Board of Corporate Auditors for the Consolidated Financial Statements

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Interest in the company

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

March 31, 2021

1. Nature of Operations

2. Summary of Significant Accounting Policies

Principles of Consolidation and Accounting for Investments in Affiliated Companies

Use of Estimates

Foreign Currency Translations

Cash Equivalents

Investment Securities

Allowance for Doubtful Receivables

Inventories

Property, Plant and Equipment and Depreciation

Leases

Goodwill and Other Intangible Assets

Capitalized Software Costs

Impairment of Long-lived Assets

Revenue Recognition

Product Warranties

Shipping and Handling Costs

Advertising Costs

Income Taxes

Consumption Taxes

Derivative Financial Instruments

Net Income Attributable to FUJIFILM Holdings per Share

Stock-Based Compensation

Subsequent Events

Reclassifications

New Accounting Standards to be Adopted

3. U.S. Dollar Amounts

4. Investments in Debt and Equity Securities

5. Lease Accounting for Lessor

6. Lease Accounting for Lessee

7. Inventories

8. Investments in Affiliated Companies

9. Goodwill and Other Intangible Assets

10. Short-term and Long-term Debt

Short-term debt

Long-term debt

11. Pension and Severance Plans

Components of Net Periodic Benefit Cost

Obligations and Funded Status

Assumptions

Plan Assets

Contribution

Estimated Future Benefit Payments

12. Income Taxes

13. Equity

14. Other Comprehensive Income (Loss)

15. Commitments and Contingent Liabilities

Guarantees

Purchase Commitments, Other Commitments and Contingencies

Product Warranties

16. Net Income Attributable to FUJIFILM Holdings per Share

17. Stock-Based Compensation Plan

18. Derivatives

Cash Flow Hedges

Derivatives Not Designated as Hedges

Befreiender Konzernabschluss gem. § 292 HGB
zum Geschäftsjahr vom 01.04.2020 bis zum 31.03.2021

March 31, 2021
with Report of Independent Auditors