Fujifilm Growth Strategy with the Acquisition of Wako Pure Chemical Industries FUJIFILM Holdings Corporation Chairman and Chief Executive Officer Shigetaka Komori December 15, 2016
Key Business Areas Expanding Business in Six Priority Areas Healthcare Graphic Systems Digital Imaging Highly Functional Key Materials Business Areas Document Solutions Optical Devices 1
Overview of Wako Pure Chemical Industries, Ltd. Company Name: Incorporation: 1922 Business Overview: Revenue: Wako Pure Chemical Industries, Ltd. Chemicals Department of Takeda Pharmaceutical separated and established as Takeda Pure Chemical Ltd. Manufacturing and sales of laboratory chemicals, clinical diagnostic reagents and speciality chemicals JPY 79.4 billion (FY2016/3, Consolidated) Clinical Diagnostic Reagents JPY 26.0bn Laboratory Chemicals JPY 36.6bn Speciality Chemicals JPY 16.7bn 2
Objectives and Purposes of Acquisition Graphic Systems Digital Imaging Healthcare Clinical Diagnostic Reagents Key Business Areas Laboratory Chemicals Highly Functional Materials Speciality Chemicals Optical Devices Document Solutions 3
Objectives and Purposes of Acquisition Technology fusion of Fujifilm and Wako Healthcare Advancement of medical applications in regenerative medicines Improvement quality of medical care through widespread use of In-Vitro Diagnostics Industrial Contribution to advancement of cutting edge technology in semiconductor industry Creating innovation with development of new highly functional materials Stable supply of high quality pharmaceuticals through expansion of contract manufacturing Addressing Social Challenges 4
The Acquisition of Wako Pure Chemical Industries FUJIFILM Holdings Corporation President and Chief Operation Officer Kenji Sukeno December 15, 2016
Business Overview of Wako Pure Chemical Laboratory Chemicals related to: Cell culture medium DNA/Protein research Analysis of environment/food area Organic synthesis, etc. Clinical Diagnostics Reagents Revenue: JPY36.6bn (46% of total) For automated bio chemical analyzer, etc. For immune system and microorganism, etc. Speciality Chemicals Revenue: JPY26.0bn (33% of total) Revenue: JPY16.7bn (21% of total) Semiconductor Materials (detergent for post CMP process, etc.) Azo polymerization initiator for superabsorbent polymer Pharmaceutical intermediate, etc. Clinical Diagnostics Reagents Laboratory Chemicals Specialty Chemicals 6
Expected Synergies through the Acquisition Expanding Healthcare Business 1) Regenerative Medicine 2) In-Vitro Diagnostics 3) Pharmaceutical Contract Development and Manufacturing Organization(CDMO) Expanding Highly Functional Materials Business 1) Electronic Materials 2) Industrial Products 7
The Three Key Components for Regenerative Medicine Cell Scaffold (recombinant peptide) Cell Culture Medium Cytokine Fujifilm group to own all three key components for regenerative medicine 8
Regenerative Medicine Business Scaffold (recombinant peptide) Patent & Know-how for Cell Production and Cultivation 画像診断技術 Development/ Manufacturing of ips Cell Development/ Manufacturing of Regenerative Medicine Products Cell Culture Medium Manufacturing Technology GMP Certified Manufacturing Facilities Dispersion/Synthesis Technology Expanding Regenerative Medicine Business 9
In-Vitro Diagnosis (Medical System Business) Clinical Chemical Analysis System Immunodiagnosis System Global Business Platform through Medical Devices < 和光純薬 > 免疫分析装置 System 生化学分析試薬国内の営業網 Immune Analysis Laboratory Chemicals for Biochemical Analysis Extensive Sales Network with Access to Clinical Facilities in Japan Promoting In-Vitro Diagnostic Products Developing high-functional In-Vitro Diagnostic Products 10
Pharmaceutical CDMO (Pharmaceutical Business) Chemical Synthesis Technology of Small Molecule Drugs FUJIFILM Finechemicals Biopharmaceutical Manufacturing Technology Biopharmaceutical CDMO Small Molecule Drugs CDMO < 和光純薬 > Chemical 免疫分析装置 Synthesis Technology 生化学分析試薬国内の営業網 Cell Culture Medium Manufacturing Technology Vast Sales Network to Capture Client Needs Expanding Pharmaceutical CDMO business 11
Highly Functional Materials (Electronic Materials Business) Photoresist CMP Slurry Materials for Image Sensor, etc. < 和光純薬 > 免疫分析装置生化学分析試薬国内の営業網 High Purity Cleaning Agent High Quality Etching Solution Non-Ionic Surfactants, etc. Wafer (face down) Load CMP Slurry Polishing Pad Rotating Head Rotating Plate CMP Process Accelerating Electronic Materials Business 12
Highly Functional Materials Synergy (Industrial Products Business) Chemical Synthesis Technology Analysis Technology Library of 200,000 chemical compounds Strong Global Business Platform < 和光純薬和光純薬 > 重合開始剤等免疫分析装置 Polymerization 生化学分析試薬 Initiator 国内の営業網 Vast Polymeric Material Domestic and Global Speciality Chemical Manufacturing Sites Expanding Speciality Chemicals Business Globally 13
Overview of Acquisition Acquisition Structure: Tender Offer Price: Tender Offer for shares of Wako Pure Chemical Industries, Ltd. by FUJIFILM Corporation JPY 8,535 per share Expected Amount of Funds Necessary for Tender Offer: Approximately JPY154.7 billion Expected Schedule: Feb.27 Apr.3 Apr.21 Tender offer period for Wako shares Settlement of Tender Offer (consolidation of Wako) In the event of successful completion of the Tender Offer, Wako will be a consolidated subsidiary of Fujifilm Holdings on Apr. 21, 2017. Therefore, we expect no impact on Fujifilm Holdings FY2017/3 consolidated financial results. We will announce the impact for FY2018/3 consolidated financial results once details are confirmed. 14
Revenue Target of Wako Pure Chemical After Acquisition To Achieve JPY 100billion in Revenue by FY2022/3 Further Growth (JPY bn) Specialty Chemicals Clinical Diagnostics Reagents Laboratory Chemicals 15