Fujifilm has announced plans to spin off its Business Innovation division, the unit that provides 35% of the corporation’s current revenues and which includes its interests in graphic communications. These range from inkjet printheads, office printers and technology for the production print business covering toner presses and printing plates. This is clearly deemed an industry characterised by overcapacity and, with the exception of one or two niche areas, with limited growth opportunities.
This is shown by the company’s Q1 results where revenue from Business Innovation was static while that from healthcare (+12.4%), electronics (+25%) and imaging (+16.2%) all increased substantially. The company has been paring back activities in the sector over recent years, withdrawing from coating and then converting plates in the Netherlands and this year ceasing sales of the Jetpress, its B2 inkjet press, and the continuous feed CF1160 in Europe and the US and ending the majority of the Acuity large format presses. These are all competitive areas of the market. Development of the B2 toner press shown at Drupa has also been shelved.
It has retained its inkjet press for flexible packaging, where there are few rivals and the potential is reckoned to be vast, and the Acuity Fusion technology where Fujifilm believes it has a market leading product.
At the unveiling of the Revoria PC2120 to European dealers in June, Business Innovation president and CEO Naoki Hama said that the division had contributed 12% of Fujifilm’s revenue in 2000 reaching 35% now and with a target of ¥1.3 trillion (£6.1 billion sales by 2030) with a 10% operating margin. 2025 sales were ¥1.17 trillion (£5.5 billion). AI is being used to speed development and enhance both productivity and quality. “AI is a driver of business transformation,” he said. “Our focus is the shift from analogue to digital and so to ensure we can supply suitable products and services under any circumstances.”
In the first quarter of the 2027 financial year, the Business Innovation unit posted an operating loss of ¥1.4 billion (£6.6 million). Within the division’s revenue of ¥273.2 billion (£1.3 billion), graphic communications increased revenues thanks to sales of the inkjet printheads to counter a decline in sales from the office solutions business because of lower sales to Europe and the US.
Along with developments in AI and a shift towards a solution driven business model, Fujifilm says that Business Innovation is entering a new phase of growth and requires a more agile operating framework to drive that growth and business expansion.
The step will take two to three years and will result in a listing on the Tokyo Stockmarket for Fujifilm Business Innovation Corporation. The parent company will retain a stake of less than 20% in the new business. Existing shareholders of Fujifilm will receive in kind shareholdings.
Fujifilm says as part of its Vision 2030 strategy, it has been developing tailored strategies for each division to achieve strong and resilient growth and with a strong emphasis on profitability and capital efficiency.
