Fujifilm Business Innovation (BI) includes Fuji’s Graphic Communications wing, Office Solutions, and Business Solutions including document services, BPO and IT outsourcing.
Its activities for the printing industry include toner devices, inks and inkjet printheads, and printing plates.
However, there is also industry speculation that Fujifilm could be poised to divest its printing plates manufacturing operations to a Chinese manufacturer, although there has been no official word on that as yet from either party.
BI is a core operation for Fujifilm and currently accounts for around 35% of Fujifilm’s worldwide revenues. Operating income in the year to 31 March was ¥63.7bn.
Fujifilm said it had a solid earnings base and “strong cash-generating capability”.
The ¥3,357bn turnover Japanese group said the move was part of its Vision2030 medium-term management plan that “aims to further enhance the corporate value of the Fujifilm Group and evolve into a company that creates value – or ‘more smiles’ – for a wide range of stakeholders by promoting management with a strong emphasis on profitability and capital efficiency”.
Fujifilm has defined its group purpose as “Giving our world more smiles”.
If the spin-off goes ahead, Fujifilm would hold shares in the new entity, likely a stake of less than 20%, with the remaining shares distributed to shareholders through non-cash dividends.
Fujifilm Business Innovation Corp would be listed on the Tokyo Stock Exchange.
Business Innovation would still be able to use the Fujifilm brand, and have access to synergies across the wider group.
The process is likely to take two-to-three years and is subject to various approvals including by shareholders and relevant authorities.
Fujifilm’s other core businesses are Healthcare, Electronics and Imaging.
Alongside the spin-off plans, Fujifilm also announced Q1 results for the three months to 30 June. Revenues reached a record high of ¥826.4bn, up 10.3%, but operating income fell by 32% to ¥51.2bn.
At BI, sales were effectively flat at ¥273.2bn, while the unit made a ¥1.4bn loss compared to a ¥15.6bn profit in the same quarter the prior year.
Sales within the Graphic Communications sub-segment were up 4.1% at ¥81bn. Fujifilm said it had brought in higher sales from inkjet printheads, but negative factors included lower demand for printing plates and related products “amid sluggish market conditions in Europe”.
Since the beginning of the year Fujifilm has stopped selling its B2 sheetfed Jet Press and roll-fed Jet Press 1160CF in Europe, discontinued its Acuity wide-format inkjet range, and sold its flexo inks business in the Americas and Canda to Nazdar.
Fujifilm also confirmed there had been no significant damage at its Kumamoto manufacturing sites for display materials and semiconductors, after the earthquake on 28 July. Operations have resumed gradually from 2 August.
