fujifilm sustainability report...fujifilm sustainability report 2004 company profile company name...

FUJIFILMSustainability Report

2004

Main Subject Companies Providing Consolidated Data(as of August 2004)Japan Fuji Xerox Co., Ltd.

Fuji Photo Optical Co., Ltd.*1

Fujicolor Imaging Service Co., Ltd.*2

FUJIFILM ARCH Co., Ltd.FUJIFILM Microdevices Co., Ltd.FUJIFILM PHOTONIX Co., Ltd.FUJIFILM Medical Co., Ltd.Fujifilm Graphic Systems Co., Ltd.Fuji Photo Equipment Co., Ltd.Fuji Micrographics Co., Ltd.Fuji Technics Co., Ltd.FUJIFILM Business Supply Co., Ltd.FUJIFILM Software Co., Ltd.FUJIFILM Opto Materials Co., Ltd.Fujifilm Logistics Co., Ltd.FUJIFILM AXIA Co., Ltd.*2

FUJIFILM Techno Service Co., Ltd.North America Fuji Photo Film U.S.A., Inc.

Fuji Photo Film, Inc.FUJIFILM Microdisks U.S.A., Inc.FUJIFILM Medical Systems U.S.A., Inc.Fuji Hunt Photographic Chemicals, Inc.Fuji Photo Film Canada Inc.Fuji Graphic Systems Canada Inc.

South America Fuji Photo Film do Brasil Ltda.Europe Fuji Photo Film B.V.

FUJIFILM Electronic Imaging Ltd.Fuji Photo Film (U.K.) Ltd.Fuji Magnetics GmbHFuji Hunt Photographic Chemicals, N.V.Fuji Photo Film (Europe) GmbH

Asia FUJIFILM Imaging Systems (Suzhou) Co., Ltd.FUJIFILM Starlight Co., Ltd.Fuji Hunt Photographic Chemicals, Pte. Ltd.

*1 The corporate name “Fuji Photo Optical Co., Ltd.” will bechanged as of October 1, 2004 to FUJINON CORPORATION.

*2 “Fujifilm Imaging Co., Ltd.” will be established on October 1,2004 by consolidating “Fujicolor Imaging Service Co., Ltd.” andFUJIFILM AXIA Co., Ltd.

FUJIFILM Sustainability Report 2004

Company ProfileCompany name Fuji Photo Film Co., Ltd.Date established January 20, 1934Headquarters 201 Nakanuma, Minamiashigara-shi, KanagawaTokyo head office 26-30 Nishiazabu 2-chome, Minato-ku,

TokyoCapital 40,363 million yen (as of March 31, 2004)Staff 73,164 (consolidated) 9,363 (parent only)

(as of March 31, 2004)Consolidated subsidiaries 178 (as of March 31, 2004)

Transition of the Number of Workers(Number)

(FY)

Contents of This Report

In this report, we have compiled the efforts andachievements of the Fujifilm Group during fiscal year 2003(from April 2003 through March 2004) toward sustainabledevelopment of the corporation, the Earth and society. Aswith last year, environmental and social reports are included.We also have a newly added report on our system topromote and implement CSR (corporate socialresponsibility).

Target Audience:All stakeholders including, but not limited to, customers,shareholders, investors, employees, future generations, localcommunities, global society, industry groups, NGOs, NPOs,government and business partners.

Subject Companies:Fuji Photo Film Co., Ltd., domestic and overseas groupcompanies(Subject companies in the Fujifilm Group’s consolidatedsustainability accounting report are the domestic FujifilmGroup companies listed on page 30.)

Subject Period:Fiscal year 2003 (April 2003 through March 2004), activitiespartially include fiscal year 2004.

Referenced Guidelines:Ministry of the Environment: Environmental ReportingGuidelines (last updated in 2003)GRI’s Sustainable Reporting Guidelines 2002

* As a general rule, the name “Fujifilm” indicates Fuji Photo Film Co., Ltd.on it’s own, while “Fujifilm Group” points to a consolidated entity.

* “Employees” generally include all workers of Fujifilm, from management(including managers doubling as operating officers) on down. On pages78-83, however, we used classifications such as “workers,”“employees,” “official employees” and “unofficial employees” in orderto accurately report on our “Workers and Fujifilm.”

2004 FUJIFILM Sustainability Report 1

We aim to actively discloseaccurate information in order to be the Fujifilm Groupeverybody trusts.Fujifilm Group believes that in order to be a company everybodytrusts, it is important to reflect financial, environmental and socialaspects in corporate activities in a balanced manner, and thenaccurately report and disclose the details of such activities. Fujifilmwill disclose information on social and environmental aspectsmainly in this report, while financial information is reported in theAnnual Report.

Message from the President ......................................2International Stakeholders Dialog ..............................4Report Digest 2003 ...................................................6Contribution to Photography Culture ........................8Fujifilm Group's Businesses Overview.......................10VISION75 Medium-Term Management Plan.............14Fujifilm’s Vision in CSR.............................................16

The CSR Activities by Fujifilm Group

Corporate Governance/Complianceand Risk Management.............................................18Fujifilm Group and Its Stakeholders..........................22Fujifilm Group Green Policy .....................................24Fujifilm’s Ideal Management System ........................26

Economic Report

Activities in Economic Aspect of CSR Promotion.........29Sustainability Accounting.........................................30

Fujifilm Group’s Product Creation

Products Society Trusts ............................................32Design for Environment ...........................................38Chemical Substance Management...........................40Materials Purchase and Green Procurement.............42Cyclic Manufacturing and Fujicolor QuickSnap.........44Preservation of Raw Materials..................................46Product Safety Management ...................................47

Communication on Products

Environmental Information on Products ...................48Communication with Customers .............................50Communication with Business Partners....................52In Pursuit of User-Friendly Design.............................54

Environmental Measures in Business Activities

Business Activities and Environmental Impacts .........56Environmental Considerations in Factory Operations .....58Reduction of Chemical Substance Emissions ............60Towards Global Warming Prevention and Water Usage Reduction ...........................................62Environmental Measures in Logistics Area................64Prevention of Atmosphere, Soil, and Water Pollution ....66Activities Pertaining to Waste Emission ....................68

Responsibility as a Corporate Citizen

Social Contribution and Coexistence with the LocalCommunities...........................................................70Overseas Activities ...................................................74Fujifilm Greenery Fund.............................................76

Employees and Fujifilm

Creating a Comfortable Workplace .........................78Creating a Safe Workplace ......................................81Employee Skill Development ....................................82

Appendix

History of Business Activities and Environmental Activities...........................................84Acquisition of ISO14001 Certification ......................86Outside Appraisals and Awards ...............................87Sustainability Report Readers Opinion Meeting ........88Independent Assurance Report ................................90Contact Information and Editor’s Note ....................93

Annual Report• Financial Highlights• Medium-Term Management Plan “VISION75”• Review of Operations• Global Business Development• Cutting-Edge Technology• Financial Sectionetc.

CONTENTS

Case Example SymbolCase Example Symbols indicate the case examples related to the article.

Related Page SymbolRelated Page Symbols indicate the pages that include information relatedto the contents of the report.

URL SymbolURL Symbols indicate the website addresses that include relatedinformation.

Glossary SymbolGlossary Symbols indicate the descriptions of hard-to-understand ortechnical terminology.

Sustainability Report• CSR Activities by Fujifilm

Group• Economic Report• Fujifilm Group’s Product

Creation• Communication on Products• Environmental Measures in

Business Activities• Responsibility as a Corporate

Citizen• Workers and Fujifilmetc.


stakeholders, but it is also important to communicateefficiently to all entities with interests in Fujifilm activities.During the fiscal years 2003 and 2004, we held a“Sustainability Report Readers Opinion Meeting” and alsojointly sponsored an “Environmental CommunicationMeeting in Minamiashigara” with Kanagawa Prefecture,that was held the Ashigara Factory, one of the Fujifilm’smain plants.We have also invited comments from CSR opinion leadersfrom Japan, as well as overseas, to have an “InternationalStakeholders Dialog” with Fujifilm CSR-related divisions. Wereceived a high mark for our environmental activities. As forour social activities, we have received responses covering awide variety of views. We shall seriously consider theopinions of our stakeholders so we may develop into acorporation that has greater trustworthiness among itsstakeholders in the future.We have fully disclosed Fujifilm Group’s future visions aswell as our involvement in each of our economic,environmental and social aspects. Furthermore, we have

undergone a third party “Sustainability Assessment” by theChuo Aoyama Sustainability Certification Organization Co.,Ltd., in order to assure the accountabil ity in ourSustainability Report 2004. In order to have our global CSRactivities assessed, we have included our Chinese groupcorporations in the third party sustainability assessment site.We certainly appreciate your comments and concerns withregard to the contents of this report.

September 2004

Shigetaka KomoriPresident and CEO


The year 2004 marks the 70th anniversary of Fujifilm'sfoundation. Fujifilm's objective at the time of foundationwas domestic production of photographic film. Fujifilm laterevolved into a company to promote overall development ofa photographic culture by offering numerous products andservices associated with image and information technology.Since information technology went through a rapidadvancement recently, image digitization has expanded andtransformed our field of business, Imaging & Information(I&I) market greatly.In order to effectively keep up with the change in thebusiness environment, we have established Fujifilm GroupVISION75 medium-term management plan, with its threecore strategies: “Establishment of a New Growth Strategy,”“Thorough Overall Administrative Structural Reform” and“Fortification of a Consolidated Administration.” VISION75addresses group-wide key issues in CSR (Corporate SocialResponsibility) promotion, such as the strengthening ofconsolidated business management, the creation of newbusinesses through the reconstruction of the R&D system,an integrated approach in legal compliance and riskmanagement, and an active involvement in environmentalissues.

Expanding New Businesses

VISION75 actively promotes R&D in three fields, as one of itskey issues, “Creation of New Businesses”, i.e. “digitalimaging”, “high-functionality materials” and “optical devicetechnology”. Through this kind of innovative R&D, Fujifilm isbeginning to market products in new genres during thefiscal 2004, such as “QuickGene-800”, an automatic nucleicacid extraction system in the field of life science, as well asthe digital exposure system for printed circuit boards in theindustrial digital imaging field. Fujifilm will strive to challengethe unexplored frontier in order to continue being theFujifilm Everybody Trusts.

Moving Forward with Fujifilm Group Green Policy

Since its foundation, Fujifilm has been conducting corporateactivities with the concept of “Environmental considerationand conservation as the basis of company management.”While offering products to answer user needs is our mission

as a manufacturer, we are also strongly aware of existenceof environmental risks in our corporate activities includingthe use of various chemical substances, CO2 emission andwaste emission. We have established our environmentalmid-term policy, “Fujifilm Group Green Policy”, so that everymember of Fujifilm Group can recognize the common goalof developing as a company, while minimizing theenvironmental impact. With this in mind, we have beenactively investing in “Global Warming” preventionmeasures. One example is the fuel conversion to natural gasfor the in-house power generation system at out plants.Fujifilm also has been participating in the Japan ResponsibleCare Council (JRCC*) since its foundation and I amcurrently a vice chairman of the JRCC. We shall reflect theconcept of responsible care to the Fujifilm Group GreenPolicy: To elevate the environmental quality of our groupcorporations and products throughout our global market.

* Responsible Care: Responsible care implies that a corporation in thechemical industry takes voluntari ly action to secure qualityenvironmental, safety and hygiene procedures in every phase of aproduct's lifecycle. This includes the development of a chemicalsubstance, production, shipment, usage, final consumption and disposaland includes full disclosure of al l their actions and providescommunication to society regarding these practices.

CSR is a Representation of the CorporatePersona.

I believe that a socially recognized company must excel inenvironmental as well as social concerns. Fujifilm establishedCSR Division in April 2004. If a corporation is considered aperson in the legitimate sense, then CSR is its “persona.”CSR poses common challenges to all internal organizationsincluding research, development, manufacturing, sales andcentral management divisions. In order to realize businessplanning leading to sustainable development, we make CSRa significant part of the entire Fujifilm Groups everydaytasks.

Communications with Stakeholders andCorporate Transparency

In promoting CSR, we must not only improve “CorporateTransparency” by providing a variety of information to our

To be the Fujifilm Group Everybody Trusts

Message from the President


After the International StakeholdersDialog

In a short, two-day period, many of the employees whoparticipated said that they had “learned much about howto be a part of CSR deployment through daily tasks.” In thefuture, we plan to invite stakeholders from relevant fieldson each subject, and have each one of them discuss indetail about their field. More specifically, we will selectivelyprioritize the challenges that need to be confronted so thatwe may work on them one by one. We will also strive tointegrate actions essential in every development,manufacturing and sales activity into the everyday groupoperation tasks. Those actions pertain to compliance, riskmanagement and ecology & quality management directedby the CSR Division.

these managers an ability to think at the same time.”Tsukushi:“Many Japanese corporations tend to educate newly hiredemployees on environmental issues, but it’s actually the top-levelmanagers who need such an education. It’s evident from looking atthe survey results as well.”Employee:”Corporate environments are changing considerably,and what worked successfully before is now becoming to athing of the past. Yet I don’t think a new road map has been quiteestablished, either. Depending on how you look at it, I think thiscould also be considered an opportunity. For that reason, I want top-level managers to have a strong interest in taking an active role inthe approach to CSR.“Employee:“Fujifilm's business operation is starting to shiftsignificantly. In thepast, the companymade high profitswith films andphotos, but thatwon’t be the caseany more. If weare to adapt,shouldn’t we all bethinking aboutwhat a corporation is? The senior management is responsible, ofcourse, but every employee is just as responsible.”

What are the points to keep in mind whenapproaching CSR?

Delfgaauw:“What is important in CSR’s approach is theenhancement of a competitive edge. CSR is not somethingthat can be confirmed simply by a financial return, butachieving profits as well does have importance. Therefore,having a more competitive edge becomes necessary and toachieve that, it's crucial to focus on one problem at a time ratherthan looking at 10,000 problems all at once.”Zadek:“With the CSR method, you talk with people first,then decide on the strategy. The world is very complex, andeveryone is looking for something different. That’s why youshould go outside first and listen to what people have to say,and then form a strategy based on opinions you’ve heard. Acompany may be a leader in the narrow field of its specialty, butit can't help but be a follower in other fields. So you should reallyask yourself what it means to be at the top. And finally,senior management will have to seriously consider if theyreally want to be the leader in the field of CSR. It’s important totake the discussion up to a higher level in order to find valuesand strategy.”Employee:“Although the word ‘CSR’ is pretty new, theconcept reallyisn‘t. I think it justmeans that weshould do whatwe were alwayssupposed to do,but do it properly.The problem is,you'd think youare doing it theright way, whileothers don't thinkso. I believe higher transparency and interaction are the key.”

What is your opinion on diversity?

Tsukushi:“I don’t believe that you can get stronger withoutdiversity. Based on historic background, I think there will be an

What do you think about Fujifilm's vision?

Zadek:“As oil means a lot to an oil company, somecompanies’ business is evidently clear. However, in thebusiness category like that of Fujifilm's, the results cannot be

clearly manifestedas in, 'we did this,therefore thathappened.' That’sa difficult issue.”Tsukushi:“It mustbe very hard for acompany to shiftfrom producingthings to increasingly becoming a serviceprovider instead.

The vision of a company that produces things, and that of acompany that is trying to dispatch things that you can't see, arecompletely different.”

How did you feel about this InternationalStakeholders Dialog?

Delfgaauw:“I was impressed. Fujifilm is actually practicingan excellent methodology. But at the same time, there still areproblems that need to be solved. From here on, I think it's vitalfor them to focus on what is fundamental yet indispensable,and work out individual solutions.”Domini:“I was impressed as well with the process Fujifilm isfollowing, and I also learned much by talking with everyone.”Zadek:“I can safely conclude that only when seniormanagement firmly acknowledges the value of CSR, CSR willbecome effective in the future business strategy. That is avery crucial factor for CSR as a process, as well as aninnovation.”Tsukushi:“Being the first to do something is important. Ibelieve this was the very first dialog on CSR held in Japan. Acompany that can start first is also a company that can grow, soI hope that the stock prices will prove the outcome as well.”

urgent need down the road to develop a philosophy thatinfluences the company’s strategy.”Employee:“When our products change from ‘things’ such asfilms or cameras to software, our competitors will change,too. I think pulling through such changes, could provide agood opportunity for us to experience diversification.”

At Fujifilm, we are serious about CSR.


1.Clarification of Challenges with CSRIt is a necessity to recognize CSR-related agendas — such asrisk management by Fujifilm Group Corporation and itssuppliers, and meet the challenges of unearthing newbusinesses in the age of digital technology.

2.Establishment of a Clear Vision and PlansThe importance of setting a clear vision in strategy design,determining key areas of CSR strategy, and creating a roadmap to achievement cannot be ignored.

3.Company-wide ImplementationIn order for CSR to be implemented throughout not onlythe staff of Fujifi lm, but the entire Group's 73,000employees, the education and training system needs to bestrengthened.

4.Executive SeminarsAll members of the administration, from the CEO down, willpersonally make an effort to deepen their understanding ofCSR in order to achieve the corporation's final goal ofcompany-wide CSR deployment.

5.Relationship with Stakeholders HereafterCommunications with stakeholders must always beconsidered when envisioning the future.

6.CSR Deployment Involving SuppliersIt is necessary to reflect the “scope and timing” of CSRdeployment in the wide range of supply chains.

Invited Opinion Leaders:

While society keeps changing dramatically and theaccuracy of CSR knowledge becomes more andmore important for corporations, just howsignificant is a CEO's understanding of CSR?

Delfgaauw:“All executives, from the CEO and down, mustbelieve in the value of CSR and make that responsibility theirown. Ultimately, the people who work with CSR on site willbecome the key. It may take some time, but these people need tounderstand CSR and be convinced of its importance. Using atop-down approach like this, the whole company should worktogether to adapt CSR as part of the proactive businesspractice.”Domini:“The challenge will be how to place value in'responsible corporate actions.' For that to happen, I think thereshould be a policy that says everyone — including theemployees, CEO, and senior management members — need to beinvolved.”Delfgaauw:“People in top management play a big role in thepromotion of CSR. If the top leads, it’s much more effective.”Employee:“I personally think so as well. If the top doesn’tmove, employees won't follow no matter what is said aboutCSR.”Zadek:“In Europe, CSR-related education and training for top-levelmanagers is increasing dramatically. People have come tounderstand that senior management often brings about crosssectional knowledge. And by doing so, top-level managers will startto think about how their company should advance, thus giving

Tom DelfgaauwFirst director of CSR in the history ofthe multinational corporate giant,Royal Dutch/Shell Company. Tomhas tackled various environmentalissues and human rights issues.

Amy DominiCEO of the investment counselingfirm, Domini Social Investments.Amy is considered a pioneer in thefield of SRI funds in the UnitedStates.

Mizue TsukushiPresident of the ratings agency, TheGood Bankers, Co., Ltd., which haslaunched the “eco-fund” in Japan.

Simon ZadekSuperintendent of the NGOAccountAbility located in England.NGO AccountAbility is the advocateof “AA1000” accountability standard,which Fujifilm has adopted from the“Sustainability Report 2004.”

Issues Raised during InternationalStakeholders Dialog 2004

June 4-5th, 2004 — Fujifilm had invited opinion leaders from various fields of CSR (corporate socialresponsibility) to hold an International Stakeholders Dialog, which turned out to be a tremendousopportunity to analyze the corporation's CSR. This International Stakeholders Dialog was held for the purpose ofclarifying “what is lacking” and “what should be done” in regard to Fujifilm CSR activities, as well as raisingcorporate key personnel’s awareness in CSR. Many critical issues in promoting CSR were recognized through thisDialog. In this time of rapidly-changing social needs, it is necessary to have concrete challenges, visions and plans,and for all personnel to exercise CSR awareness, including senior management members.

The dialogs presented here are key discussionson the future challenges Fujifilm may face inpromoting CSR.

International Stakeholders Dialog

To P16

To P28

To P22

Self-Assessment: — Excellent

— Good

— Needs work

* Self-assessment value was determined based on the degree of accomplishment toward a numerical target.Otherwise the decision was based on the self-evaluation of the department in charge of the CSR activities.

Promotion of the SocialContribution� Supporting the environmental

education for the futuregenerations

� Contributing to the localcommunities

� 20th anniversary of the FujifilmGreenery Fund

Supporting environmental education for futuregenerations is a part of our contributions to the localcommunities. We host various activities involving localresidents for this reason, such as the factory tours inwhich the family members of the Fujifilm employeescan participate. We also provide photography classesfor the children of local communities.2003 marks the 20th anniversary of the FujifilmGreenery Fund, which is the first nature conservationfund supported by a private business in Japan.

Supporting the Pink Ribbon ActivitiesFujifilm actively lends assistance in the promotion ofbreast cancer examinations, as well as supportingimproved breast cancer detection accuracy.Sponsoring Pink Ribbon Activities, one of thecampaigns against breast cancer, is also a part ofthis activity. In October 2003, we launched a digital X-ray image diagnostic system FCR PROFECT CS to beused for breast cancer examination.

Communication with theStakeholdersHosting the InternationalStakeholders DialogOpinion leaders in the various fields of CSR (corporatesocial responsibility), both from home and abroad, wereinvited to hold an International Stakeholders Dialog. At thisdialog, all participants actively exchanged opinions and asa result, Fujifilm was able to collect a variety of effectiveideas in promoting CSR.

Hosting the EnvironmentalCommunication Meeting inMinamiashigaraThe Kanagawa Prefecture and Fujifilm cosponsored an“Environmental Communication Meeting inMinamiashigara,” with the cooperation of MinamiashigaraCity. A total of 130 local residents, government officials,and corporate representatives participated in thisconference and they exchanged ideas on how to make theregional environment better.

Toward a SustainableManagementEstablishing the CSR DivisionIn April 2004, the new CSR Division was set up in order tobalance the economic, environmental and socialconcerns while promoting company-wide CSR activities.The division consisted of the Compliance & RiskManagement Department and the Ecology & QualityManagement Division.

Hosting the Readers OpinionMeetingInformation disclosure is an important factor inpromotion of CSR. Fujifilm also believes in theimportance of maintaining close contact with itsstakeholders. This report reflects the valuable opinions wereceived from the participants at the SustainabilityReport 2003 Readers Opinion Meeting.

Revision of the Charter for GoodCorporate Behavior and theEmployee Code of ConductExpanding Compliance ConsultationOffice's AccommodationsIn April 2003, we revised our Employee Code of Conductand at the same time the Compliance ConsultationOffice was being established. The target user group for theCompliance Consultation Office was then expanded toinclude all the employees of the group corporationswithin the country in May 2004. And in August 2004,we revised the Charter for Good Corporate Behavior todefine more explicitly the concept of CSR and how eachemployee can contribute to CSR.

Report Digest 2003

FUJIFILM Sustainability Report 20046 2004 FUJIFILM Sustainability Report 7

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To page 18.

To pages 70 & 76.

To pages 32 & 73.

External Evaluation� Seventh Corporate Environmental

Management Survey: No. 3 (outof 599 corporations)

� Thirteenth Global EnvironmentalAward: Received the “EarthEnvironment Committee Awardfor Corporate Excellence”

� First Quality AdministrationSurvey: No. 5 (out of 208corporations)

� Appearing in SRI (sociallyresponsible investment) labels

Fujifilm has received recognition from variousenvironmental quality analysts for its effort towardssustainable development. For example, Fujifilm appears inthe worldwide SRI labels such as the Dow JonesSustainability Indexes (DJSI), and the FTSE4Good GlobalIndex.

To page 87.

Establishing the VISION75Medium-Term Management PlanFujifilm's business environment is changing due to thedigitalization of photographs. In order to adequatelyadapt to this change while marking the 70th anniversary ofits foundation in 2004, Fujifilm established the VISION75medium-term management plan for the next five years(until the 75th anniversary in 2005). In this plan, FujifilmGroup ranked CSR promotion as the key issue, andtargeted areas such as: fortification of consolidatedbusiness management; creation of new businessesthrough reconstruction of the R&D system; integratedapproach in legal compliance and risk management; andactive involvement in environmental issues or this plan.

To page 14.

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http://www.fujifilm.co.jp/corporate/environment/communication/meeting/2003/index.html

http://eco.goo.ne.jp/fujifilm/meeting/03top.html

http://www.pref.kanagawa.jp/osirase/taikisuisitu/kagaku/prtr/taiwa/index.htm

Promoting the EnvironmentalManagementISO14001 Certification AcquisitionFuji Photo Film Co., Ltd. has completed its ISO14001certification acquisition for its headquarters, affiliates, salesoffices, factories, research laboratories, domestic subsidiaries andall the overseas manufacturing sites. We are currentlyproceeding to acquire certification for the sales subsidiariesabroad as well.

Expanding the Zero Emission Goalto All Domestic GroupCorporationsAll of Fujifilm's domestic group corporations havealmost met the zero emission goal. Fujifilm Group will notonly strive to keep up with the zero emissionachievement, but also plan to establish an even moreeffective resource recycling program.

To page 68.

Reducing the Greenhouse GasEmission on Consolidated Basis by1.6% Since Previous YearDue to the increase of total production and output,Fujifilm Group's combined greenhouse gas (GHG)emission has risen by 1.6% since the previous year.However, Fujifilm's own decision (non-consolidated) topromote fuel conversion from heavy oil to natural gas hasresulted in 4.5% decrease. Fujifilm plans to furtherimplement the fuel conversion, while attempting toestablish a new emissions reduction policy that will lead toa group-wide reduction of the GHG emission.

To page 62.

Achieving the VOC AtmosphericEmission Reduction Goal One YearEarlierIn 2002 in their Fujifilm Group Green Policy, Fujifilm set agoal to reduce VOC atmospheric emissions by morethan 50% by 2004 since 2002 on a non-consolidatedbasis (Fujifilm itself). Fujifilm proactively deployednumerous reduction measures and as a result the goal wasachieved one year prior to the marked date in 2003,with a 56% reduction since 2000. Furthermore, 18%reduction has been achieved since the previous year on aconsolidated basis (Fujifilm Group) as well, showing asteady pace of success.

To page 60.

30.3 Billion Yen Customer MeritThe customer merit (customer energy savings) of theconsolidated environmental accounting in 2003 hasreached 30.3 billion yen due to the success of productssuch as the films for liquid-crystal displays and the highdensity recording media. This merit has grownconsiderably since last year's 20.5-billion-yen figure.

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2004 FUJIFILM Sustainability Report 9FUJIFILM Sustainability Report 20048

A new factory was built in theMinamiashigara village, KanagawaPrefecture, in 1933 because this areawas known for its clean water and airthat are essential for manufacturingphotosensitized materials. One yearlater,Fuji Photo Film Co., Ltd.was established.

Since our foundation, Fujifilm has beenkeenly aware of the importance ofemployee education and welfare.We opened youth schools at the Ashigarafactory and the Odawara factory in 1939.We also opened a clinic in 1942 to treatemployees and their families, as well as tomaintain hygiene at factories.

Fujifilm Photo Contest was held under thecatch phrase “Cheerful and JoyfulPhotography.” It was the post-WWII period,a time of hardship, but we received arecord number of applicants amongthe photo contests in Japan. The contestbecame an event to give people hope for thefuture.

Fujifilm’s men’s volleyball teamwon the championship in theJapanese volleyball league for thefirst time. They were the first placeteam again in 1984. Later six ofthe Fujifilm volleyball players wereselected to join the all-JapanOlympic team giving hope andexcitement to manyJapanese sports fans.

Fujifilm pioneered digitizationof the X-ray image for medicaldiagnostics. “FCR”, an X-Ray ImageScanner was released the followingyear. This technology contributed todevelopment in the medical field byimproving diagnostic accuracy andreduced the patient’s burden bydecreasing the amount of radiationto which they were exposed.

The very first floppy-disk,Fujifilm floppy-disk FD3000,was released to the domesticmarket. Fujifilm was able toprovide reasonably pricedfloppy disks to the rapidlygrowing Japanese computermarket.

As a result of technicolor photo researchFujifi lm’s own “bipack fi lm platemethod” and “dye transfer printingmethod” were perfected. Our successleft a strong impact throughout theindustry and created a foundationfor color photography in thephotography industry.

Tokyo Olympics was held thisyear. Fujifilm contributed tophotographic recording andreporting at the Olympics bymaking news flash photos aswell as photo processing foroverseas reporters available.

The very first Technicolormovie, “Carmen ComesHome” was shown at theaters.Fujifilm’s color reversal film wasused for this movie. This moviebecame a milestone precedingthe Japanese color movieentertainment many peopleenjoyed.

New 8mm System“Single-8” debuted at thePHOTO EXPO. Single-8broadened the horizon ofthe 8mm movies resultingin a new revolutionaryhome movie system.

To P.78

The very first Japanesecomputer “FUJIC” wascompleted. FUJIC was used toperform calculations for lensdevelopment. It also providednumerous calculations which wererequested by the MeteorologicalAgency and several universitiesthus FUJIC contributed greatly toscience in Japan.

To P.13, 32

Fujifilm was founded in 1934 and this year marks the 70th anniversary of its foundation. Since our foundation, we havealways attempted to “Contribute to society by providing better image information.” Our business activities werecentered on photosensitized materials including photo films, photo devices and services. As we established new digital imageexpression technology, we became actively involved with essential social fields such as printing and medicine. So many peoplehave supported our activities for the past seventy years. We will continue to pursue “what Fujifilm can do to create a moreaffluent lifestyle.”

Contribution to Photography Culture

Fujicolor negative film A250 receivedthe highest honor in the field ofscience and technology, the USAcademy Science-Technology Award.This film had the highest qualityin the world among the colornegative films in use at the time.This award was given in recognitionof Fujifi lm’s contribution to both the domestic andinternational movie industry.

The world’s first single-use camera, FujifilmQuickSnap was released.Fujifilm’s concept, “everybodyshould enjoy photographywith ease” was materializedwith this product. QuickSnapbecame a product thatdefined a new lifestyle andcontributed to makingphotography culture mass-market oriented.

The very first digital camera inthe world to record imageson a memory card, FUJIX DS-1P was released. This model notonly influenced the digital cameraindustry, but also became a modelfor later digital cameras.

Fujicolor QuickSnap Recycling Centerwas opened. Fujicolor embarked ontheir full-fledged reuse/recycle projectfor Fujicolor QuickSnap.

QuickSnap’s automatedreuse/recycling system wentinto operation with the release ofQuickSnap Econoshot which wasdesigned with the optimumrecycling method in mind.Realization of this system was amonumental step that Fujifilm tookin its environmental activities.

A postage stamp-sized compactrecording card fordigital cameras, “xD-Picture Card,” was developed.This media expanded the possibilityof developing a more compact digitalcamera which was being demandedby digital camera users.

Fujicolor QuickSnap CyclicManufacturing Factorybegan operation. This factoryinitiated an unconventionalproduction system with processesstarting from product recovery, todisassembly, inspection and thenreproduction. We have succeededin reducing environmental impactssignificantly by using this system.

CCD image sensor completelyrebuilt “Super CCDHoneycomb” was developed.This technology made high-resolution images by digitalcameras possible. Since then,super CCD honeycomb has beenimplemented in the medicaldevice, the electronicendoscope. This advancementcontributed to the developmentof medical technology byimproving diagnostic imagery.

Fujifilm aggressivelypromoted “store-printed photos”where customers canget high qualitydigital photo prints with ease. This promotion answersthe customers’ request for higherquality prints from their digital cameraphotos. This system accommodatesphotos taken by cell-phones withbuilt-in cameras creating brand newvalues for digital photos.

FinePix F440 and F450 with newlydeveloped FUJINON Ultraslim Optical3.4x zoom lens are released.Advanced features are packed intheir compact palm-size bodyto present a new shooting style onceagain for digital cameras.

In commemoration of the 50th

anniversary of Fujifilm, FujifilmGreenery Fund (FGF) wasestablished. FGF was the firstpublic trust owned by aprivate company to havenature conservation as atheme. Fujifilm contributed onebillion yen to FGF. FGF continues togive grants to activit ies andresearch relating to conservationand protection of the naturalenvironment.

Tokyo Disneyland was openedthis year. Fujifilm was one of thesponsors of Tokyo Disneyland,contributing to the developmentof Japan’s entertainment industry.

Fujifilm is the official sponsor in thephotography area for the 2006 FIFAWorld CupTM Germany. Fujifilm isproud to support this exciting andwonderful event and we wil lcontinue our efforts to be acompany delivering excitementto people around the world.

To P.12, 33, 52

To P.34

To P.73

To P.76

To P.12, 37

To P.44

To P.73

To P.12, 37

A.M.P.A.SC R

“Finding new joy for people’s lifestyle” hasalways been, and always will be Fujifilm’smission.


Fujifilm Group’s Business Overview

Fujifilm Group promotes business providing digital products and services utilizing digital networktechnology in the imaging information and document fields. As a global company, we have beenconstructing an international network and trusting business relationships. Fujifilm currently isdeploying its business in over 200 regions around the world. Overseas revenue in a consolidated basis isnow close to 50% of the total revenue.

(Billions of Yen)

Consolidated Revenue (The Americas)

Consolidated Revenue (Europe)

Consolidated Revenue (Asia and Others)

Consolidated Revenue (Japan)

Region-Wise Revenue Proportions

Fiscal years ended March 31

Fiscal years ended March 31

Asia and Others

Europe

The Americas

Japan

1,000

500

0’02 ’03 ’04

(Billions of Yen)1,000

500

0’02 ’03 ’04


500

0’02 ’03 ’04

282.8

246.0

279.1

306.4

1,330.1

1,355.2

1,336.0

333.7

376.0


500

0’02 ’03 ’04

517.1

562.8

541.9

(Billions of Yen)

2,500

2,000

1,500

1,000

500

0

1,348.8

1,383.3

2,401.1

2,505.7

2,560.3

Although there were adverse effects inthe first half of the fiscal year endedMarch 31, 2004, such as the SARSscare, war in Iraq and yen appreciation,the consolidated revenue for thecurrent term was 2.2% over the lastterm that amounted to ¥2,560.3billion. This revenue growth was causedby the expanding sales of flat paneldisplay materials, digital products, anddigital color multifunction machines.Also the operating income was ¥180.4billion (12.6% increase), and netincome was ¥82.3 billion (69.4%increase) showing a great deal ofgrowth.

* The figures inside the parenthesis are comparisonswith the previous year.

Overview of Fiscal 2003 Business Performance

Regional Overview

� Transition in Revenue

(Billions of Yen)100

50

0

84.8

117.9

81.3

48.5

82.3

� Transition in Net Income

* Fiscal years ended March 31

Document solutionFuji Xerox, a consolidated subsidiary, engages in Document Solutions operations encompassing office copiers/MFPs, printers, production systems and services, paper, consumables, and office services.

Imaging SolutionsThe Imaging Solutions segment includes color films, digital cameras, photofinishing equipment, and color paper, chemicals, and services for photofinishing.

(Billions of Yen)Consolidated revenue Consolidated revenue

(Billions of Yen)Operating profit Operating profit

Consolidated revenue Operating profit

Color laser printerDocuPrint C2426

Others

Copying Machines

Information-Related Equipment

Product-wise revenue proportions

Color digital Multifunction machine DocuCenter Color f450

Item-wise revenue proportions

Labs and FDi services

Others

Color Films and Others

Fujicolor Qucksnap Slim1000

Fujicolor SUPERIA Venus

Electronic Imaging

Digital camerasFinePix F810

Digital minilabFrontier

Photofinishing Equipment

Color Paper and chemicals

Business segment-wise revenue proportions

Documents solution

38.6%

Imaging solutions

31.9%

Information solutions

29.5%

Information solutionsThe Information Solutions segment includes system devices for graphic arts, medical imaging, and information systems, flat panel display materials, and recording media.

Video DVD-R“Clear View”

LTO Ultrium 2Data cartridge

Office and Industry

Recording media

Flat Panel Display Materials

Polarizer protection filmFUJITAC

Others

Product-wise revenue proportions

Medical imaging

Digital X-ray images diagnostic systemFCR PROFECT CS

Graphic Arts

Medical image information system

SYNAPSE

Thermal CTP system

’02 ’03 ’04

1,000 160

80

0

500

0

931.237.4

51.4

60.6

950.4

989.7

(Billions of Yen) (Billions of Yen)

’02 ’03 ’04

1,000 160

80

0

500

0

784.648.7

56.7 43.5

831.0

815.5

(Billions of Yen) (Billions of Yen)

’02 ’03 ’04

1,000 160

80

0

500

0

685.3 82.5

75.3

76.4

724.3

755.1

Business Segment Overview


Imaging Solutions Color films, digital cameras, photo finishingequipment, color paper for photo development,chemicals and services etc.

Fujicolor QuickSnap was develop in 1986 under theconcept, “whenever, wherever and whoever.” Fujifilmconstructed a QuickSnap cyclic manufacturing factory in1998 incorporating new cyclic manufacturing technology andthe modularization of parts so that QuickSnap can keepevolving into a more recyclable product. We have alsoacquired TypeIII Eco-Label to enhance our informationdisclosure with quantitative data.

The Single-use Camera “Fujicolor QuickSnap”Expands the Joy of Photography.

Digital Camera Utility Expands as the Images Become Increasingly Close to the Analog Photo Quality.

Presenting the Value of Keeping Your MemoriesAs Images with “Store Printed Photos”

Mr. Yuichiro Miura, a professional skier and explorer

who succeeded in reaching the Mt. Everest summit in

May 2003 at age 70 told us his story. The temperature

at summit of Mt. Everest reaches 20 degrees

centigrade below zero in mid-summer. Cameras with

batteries are not usable unless you keep them warm.

The lubricant becomes more viscous at this

temperature making cameras unusable as well.

We were sending our

news update using digital

camera photos, but soon it

did not work any more.

However, we could take

clear pictures with Fujicolor

QuickSnap without any

special tricks. This is a

well-known fact among

mountain climbers. I wish

to climb Mt. Everest from

the Tibet side next time.

Using Fujicolor QuickSnap on the Mt. Everest

Macro photography systems using digital cameras play an active role in medical

fields such as dentistry and dermatology. Digital photos contributed to

advancements in medicine by facilitating the practice of informed consent since

dentists could explain intraoral photos to their patients utilizing visual materials.

Dr. Takashi Hamada from the Hamada Dental Clinic gave an academic society

presentation on the merits of the macro photography system and pointed out that

the information could be stored

on PCs. “Its natural coloring and

immediate availability are its

greatest values when explaining

medical procedures to patients.

It also reduces the patient’s

stress by shortening treatment

processes. Intraoral images are

becoming an essential tool along

with X-ray pictures.”

Contributing to Dental Diagnostics

Many visually handicapped people use cameras to take pictures of the scenes

and use them to communicate with their family and friends. One visually

handicapped user (housewife age 39) told us the following story: “I use Fujicolor

QuickSnap. It is simple to operate without having to check what I am doing. I still

make many mistakes, but since it is so economical, I can afford mistakes. If you

could make any changes, I wish the flashing mode had a louder noise, and I

would like to be alerted when the picture is in focus. I would be very happy if it

would be possible for QuickSnap prints to have the dates in Braille so that I can

organize photos more easily.” Fujifilm will continue to develop universal

products.

Fujicolor QuickSnap and Visually Handicapped

As the digital camera market expands, digital camera usersare exploring new ways to enjoy digital photography. Fujifilmadvanced our own Super CCD HoneycombTM to achieve evenhigher quality photos by developing the fourth generation ofSuper CCD HoneycombTM. Also as a result of our effort inreducing environmental impacts and raw materialsconsumption, we have acquired Type III Eco-Label for a total

As digital cameras and cell phones with built-in cameras becomecommonplace, demand for printing digital photos is rapidlyincreasing. In order to communicate our concept of “printing thephotographed image to be stored for lifetime memories”, we havedeveloped “store-printed photos” and are actively promoting thisservice. “Store-printed photos” provide the same high quality printservice that was previously possible only at photo studios.

Each photo studio has its own campaigns and promotional services. Fujifilm

supports photo studios by helping design their shops and promotional services.

President Shigemichi Tanaka of the photo studio Shashinya30 started offering

digital camera photography classes after purchasing the digital minilab, Frontier

350. President Tanaka told us the following about his experience with this

product. “When we purchased Frontier, we could

finally print digital camera photos. However, neither

our customers nor I understood how to place or

accept orders for digital camera prints. So, I started

digital camera photography classes so that the

customers and we could learn about digital cameras

and digital photo printing. Our first class was held at

my store in March 2002. We received help from

Fujifilm and Fujifilm distributors in realizing this class.

Now we more people request a space in this class

than we can accommodate.”

Promotional Activities in Collaboration with Photo Studios

Intraoral photography using the digitalcamera, FinePix S2Pro equipped with aring flash

A scene form the digital cameraphotography class

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Yuichiro Miura and Gouta Miura with AmaDablam in the background (November 2002)

Yuichiro Miura

of twelve models so far as of August 2004. We will continueto develop a new lineup of products with superior photoquality and environmental consideration simultaneously.

PresidentShigemichi Tanakaof Shashinya30

Information Solution

Document Solution

Various printing, medical diagnosis and informationsystem components, flat panel display materials,recording media etc.

Office copiers, multi-functional color copiers, printers,production service-related products, papers,consumables and office services etc.

Fujifilm has been developing and providing medical-use X-ray films since 1936. We succeeded in developing acomputer-based X-ray digital image diagnostic system“FCR.” FCR realized a reduction in radiation exposure andan increased diagnostic precision through the use of digitalimage processing. We have shipped a total of over 22,000FCR units around the world. In 2003, we announced theFCR PROFECT CS, a system that optimized mammographyanalysis. Its revolutionarily clear image strongly backs up ournational mammography promotion activity. We willcontinue trying to meet the demand by medicalprofessionals to develop improved products as well asaddress their proposals for new diagnostic approaches bymaking advances in medical technology.

Fuji Computed Radiography (FCR) PermeatesMedical Institutions around the World.

Fuji Xerox, a consolidated subsidiary of Fujifilm, handles awide range of document services according to officedemands, including manufacturing printers, multifunctionalcolor copiers, as well as network system proposals.The color laser printer “DocuPrint C2425/C2426” receivedthe Energy Conservation Award from the EnergyConservation Center, Japan. The award was given inrecognition for the new mechanism that allows vivid colorprinting on recycled paper as well as for its low energyconsumption. We will continue to develop an understandingof office functionalities, and strive for the simultaneousrealization of both high quality environmental and businessperformances.

We have tried to develop the DocuPrint C2425/C2426 from the viewpoint of ourcustomers. Noriyuki Noda at Fuji Xerox Printing Systems Co., Ltd. ProductDevelopment Department spoke about development based on the customerviewpoint.“Sixty percent of the paper used in average office is recycled paper. That is thereason why we decided our development theme would be “how to print beautifulcolor image on recycled paper.” “Also, since the printers are on waiting mode mostof the day, we believed reducing energy consumption during the waiting modewould help satisfy our customers. By combining the new print mechanism andtoner technology, we accomplished our goal of providing vivid images on recycledpaper.” Fuji Xerox will continue to develop energy conservation technology takingthe customer convenience into consideration while promoting the reduction ofenvironmental impacts at offices.

Developing Products from the Viewpoint of Our Customers

Towards Realization of EnvironmentalPerformance and Business Performance

Fujifilm develops and manufactures polarizer protection film“FUJITAC” and Wide View (WV) Film essential in developingLCD films. We developed those products in response to thedemands from the rapidly growing LCD film market. Fujifilmhas implemented the technologies nurtured through silverhalide film production, such as ultra-thin aqueous-coatingtechnology and film coating technology. Fujifilm alsoutilized its strict quality control practices in the silver halidefilm production for selection of materials. We will continueto collaborate with the polarized filter makers and panelmakers, elevate our product development ability, andvitalize LCD film industry.

Flat Panel Display Materials Business Supporting the Evolution of LCD

To P.34, 58

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FCR Pico SYSTEM user report is posted at:http://www.fujifilm.co.jp/fms/info/index.html

The “FCR Pico SYSTEM,” while maintaining the high quality image and high imageprocessing capability associated with FCR, has been reduced in size considerably.Its low price and compactness make it easy for smaller medical institutions, such asclinics, to benefit from this technology. FCR printers also reflect our environmentalcommitment since they use no processing solution and produce no solution waste.

� Easy-to-Understand Informed Consent“It is possible to display the image taken with the FCR Pico System on the monitorimmediately after the picture has been taken. By displaying the image immediatelyand being able to enlarge it, it is now quite easy to explain to patients about theircondition in a way that is extremely easy for them to understand. At the same time,past data can be accessed in an instant, making it possible to compare thepatient’s past condition with his or her current condition. Such detailed informedconsent contributes greatly to increasing the trust patients have for their doctor.” (Dr. Okada)

� Doctor’s Assistants Have a Much Easier Job“Because the Pico system can be used in a normal room setting and is a perfectly“dry system,” there is no need to take pictures in darkrooms as with conventionalimaging systems and no need for clinic staff to deal with water supply andprocessing solution. My assistants no longer have to exchange developing solutionor get foul-smelling liquid on their hands. The Pico system is also less expensive touse than conventional systems, and because operation is carried out using aneasy-to-understand touch panel similar to that of a bank ATM, it is possible foranyone to operate the system with ease.” (Dr. Okada)

� The Responsibility and Challenge of Being a Primary Care Physician“My clinic is a neurosurgery clinic, not a general clinicencompassing all branches of medicine. My patients,however, expect me to provide a wide range of diagnosticability and look to me as a primary care physician. I haveeven had a patient with a subarachnoid hemorrhagecome walking into my clinic. As a primary care doctor whois required to have a wide range of diagnostic ability tocare for all the health needs of my patients, Pico is apowerful tool. (Dr. Okada)

Contributing to Regional Medical Treatment

Dr. Kazuhiro Okada Director, Okada

Neurosurgery Clinic


VISION75 Medium-Term Management Plan: Fujifilm’s New Departure

New Departure

Fujifilm’s business territory expanded greatly when FujiXerox joined Fujifilm Group as a consolidated subsidiary.Furthermore, the business environment surrounding Fujifilmis going through a rapid change as the influence of digitiza-tion in the imaging field advances every year. Under thesecircumstances, Fujifilm declared its goal to achieve furthergrowth by securing profitability through the utilization of itsadvanced technology and its wealth of business resources.

Sustaining General Photography Materials Business

— Protection of Photo Culture —

Potential printing demands for digital camera photosand photos by cell phones with built-in cameras aregrowing. To this end, we placed our digital minilab at thecore of our business promotions and executed an exten-sive digital camera printing campaign. Fujifilm will contin-ue to expand the demands in the photo print market.

Capturing, viewing, decorating and keeping memo-rable images are the joys of photo-taking. At our 70thanniversary, we communicated the value of “moving andheart-warming” photography in our message stating,“Precious moments live on in photos.”

January 2004 marks Fujifilm’s 70th anniversary. As the business environment goes throughtremendous changes, we have established VISION75 medium-term management plan. With the 75thanniversary, five years from now, in scope, for the entire Fujifilm Group prepares to take another giant step.We will aggressively promote measures including construction of the new growth strategies andthorough structural reforms under the new administration structure.

VISION75 Fiscal 2009 Financial Goals

Revenue ¥3,500 billion

Operating margin 10.0%

VISION75 is based on four basic strategies. Three of the basicstrategies are: “building new growth strategies”, “imple-menting comprehensive structural reforms at all managementlevels”, and “enhacing consolidated management”, in addi-tion to a fourth one: “further motivate employees andenhans skills.” These are to become the driving forces behindmeeting individual challenges. Specifically, we will place agroup-wise effort towards the following key issues.

Attempting to expand the growing businesses furtherand fortify the profit structure through the strategic dis-tribution of administrative resourcesCreation of new future businesses through reconstruc-tion of the R&D system and strengthening R&D invest-ments

Aiming at brandimage enhancementand the expansion ofbusiness scale by for-tifying manufactur-ing, sales and serviceactivit ies in ouremerging marketsincluding ChinaSecuring a competi-tive edge by execut-ing bold structuralreform through reex-amination, reformu-lation and streamlin-ing of every processof manufacturing, sales, distribution and purchaseAiming at strengthening the competitive strength andgrowth, fortifying the consolidated based business man-agement, and constructing and maintaining the IT infra-structure to support those effortsBearing corporate social responsibility (CSR), through theright international leadership solidly promoting compli-ance and risk management, as well as the fortification ofenvironmental management

Key Issues in VISION75

1

2

3

4

5

6 Building New

Growth strategies

Further motivateemployees andenhance skills

Implementing comprenensive

structural reformsat all management

levels

Enhancingconsolidatedmanagement

Production Bases in China

Beijing

SuzhouShanghai

Tianjin

Fuji Photo FilmGroup China Head Office

Expand CTP (Computer-to-plate) Production line

Optoelectronic componentsExpanding production (digital camera lenses and lense unit for camera phones)

Expand digital camera production

Transfer all copy machine and printer mass production fuctions

Shenzhen

� Basic Strategies for VISION75

From TV ad “One Piece of Photo”

1

2


Creating New Businesses

One of the key strategies in VISION75 is creation of newbusinesses. Specifically, we will focus our new developmentefforts in three directions to take advantage of “materialstechnologies that make it prossible to freely control theproperties of light”, Fujifilm’s strength; namely “digitalimaging”, “high functional materials” and “opticaldevices/systems”.We have also been working on reconstructing our R&Dsystem. Our newly built Research & DevelopmentManagement Headquarters to unify the group-wise R&Dstrategy is one example of such effort.Furthermore, we have established an Advanced CoreTechnology Laboratory, a Life Science Research Laboratoryand an Imaging Software Technology Center in attempt tofortify our R&D capability. At the same time, we havereevaluated the breakdown of our R&D investments, anddecided to double the investment for creation of newbusinesses within the next 3 years. We will also aggressivelypromote M&A and alliances with outside companies inorder to expand our businesses.

Xerography

Lens technology

CCD technology

Laser technology

Nanotechnology

Organic synthesis technology

Digital image processingSoftware technologyImage Intelligence™

Electric photographytechnology

Highly functional materials

Opticaldevices/systems

Digital imaging

Polymer technology

Silver-halidetechnology

Information onenvironment and

life sciences

Optics-relatedbusiness

Image informationsystems and

solutions businesses

Organic and inorganicpigmentation technology

Precision assemblytechnology

Miniature fabricationprocessing technology

Image design evaluation technologyy

Thin multilayercoating technologyOptical designing

technology

'04 '07

70(Billions of Yen)

(Projected)

60

50

40

30

20

10

0

Reevaluation of R&D investments

New business

Consumer photography materials

Ficical years ended March 31

� Direction of New Technologies and New Businesses

1 Isolating high-purity DNA and RNA at a high yield and in a short time

Automatic Nucleic Acid Extraction System

The automatic nucleic acid extraction system, “QuickGene-800” is a system to isolate high-purity DNA and RNA in ashort period at a high yield compared with the centrifugation ormagnetic bead-based methods of nucleic acid extractionsystem. The device in this system utilizes pressurized filtrationseparation method with Fujifilm’s own polymer film coatingtechnology. Also we kept the price down to be less than the halfof the conventional automatic extraction system.

2 Complex amalgamation of the latest technologies

Digital Exposure System for Printed Circuit Boards

Photo mask-free digital exposure system is created from acomplex amalgamation of newly developed high-power,high-definition laser technology, high-sensitivity, high-resolution photoresist, and high-speed image processingtechnology. This system makes a higher density printedcircuit board, reduction of defection rate and shorterproduction time possible simultaneously. It is also possible toproduce small lot/large variety products by merely switchingdata. Implementation of this system is expected to acceleratethe advancement in the features of printed circuit boardsresulting in more compact and high performance electronicproducts.

3 Next generation communication technology available for the home usePlastic Optical Fiber (POF)

POF is the next generation communication technologymaking up to 1 giga bps high speed communicationpossible. Since it is made of plastic fiber, it is strong againstmisalignment, and reasonable enough for the home use.Fujifilm researched and developed not only the optical fibermaterial, but also the optical transmission module (by FujiXerox) for data I/O and optical lens module (by Fuji PhotoOptical Co., Ltd.) as a part of optical communication system.

4 High luminance, high-resolution colors, and flat

Organic Electroluminescence (EL) TechnologyOffering Myriad of Advantages

Organic EL has advantage of high luminance due to its self-emissivity as well as high resolution colors and thinness, tomake various implementations possible. Especially theimplementation for flexible display differentiates organic ELfrom other methods of display including LCD. Fujifilminvested in Vitex Systems Inc., USA who had leading edgetechnologies such as ultra-barrier technology in February2004 to start a joint technological development of organic EL.

New Businesses Nurtured from the New Development System


Corporate Phi losophy

We aim to fulfill our goal to be the “Fujifilm Group Everybody Trusts.” In order to realize this goal, wewill pursue sustainable development as a corporation while coexisting with our changing society andenvironment.

■Our Commitment for CSRAs a corporation gains influence with society, societydevelops not only an economic expectation, but willalso require the company to recognize its CorporateSocial Responsibility (CSR). While pursuing CSR, Fujifilmregards accomplishing its business goals as well asproducing high quality products to answer customerneeds as a prerequisite. Furthermore, Fujifilm mustpursue stable earning and employment, environmentalconsideration and social contribution, as well. We shallreflect well-balanced consideration for economic,environmental and social aspects in our corporateactivities, realize sustainable corporate development,and at the same time contribute to the global andsocial sustainable development. This will create lastingvalue through social and environmental performance.

■Fujifilm’s Tie with StakeholdersA corporation’s positive and active stance in terms oflegal compliance, ethical consideration, andenvironmental protection will influence its futurepotential greatly. Fujifilm established its CSR Division inApril 1, 2004 to promote continuous actions as neededto reflect the basic concept of CSR. The role of CSRDivision is to promote the concept and practice ofcompliance, exportation management, r iskmanagement as well as environmental and qualitymanagement to fortify the foundation of the entireFujifilm Group.In this regard, Fujifilm Group’s relationship with allstakeholders including customers, shareholders,investors, employees, future generations, localcommunity, the international community, industrialgroups, NGO, NPO, government organizations andbusiness partners is a very important factor.Fujif i lm wil l pursue the optimum measures forpromoting CSR through our everyday dealings with ourstakeholders. All of us at Fujifilm will strive to holdconsistent communication associated with our tasks inorder to fulfill Fujifilm’s corporate accountability. Wewish to strengthen our tie with stakeholders and usethe information we gain from such communication inour corporate activities.

■Performing Regular Self-EvaluationWhen pursuing environmental consideration and socialcontribution, a corporation must simultaneously realizeeconomic development and success. To this end, all ofour employees must have initiatives to solve dailyproblems. All of us at Fujifilm Group constantly performself-evaluation in order to prevent problems that wouldcompromise our goals. Fujif i lm promotes a selfevaluation practice to all Fujifilm Group employees sothat all of us can understand the importance of CSRand act under its common values. We have alsoestablished an in-house education system to executeeffective education and also a training program incompliance as well as environmental and quality issues.Fujifilm believes that such efforts by us will contributeto sustainable development for society and result in theheightened trust and respect by society.

Takeshi Tanaka

Senior Vice President in

Charge of Legal Affairs and

CSR Promotion

Fujifilm’s Vision in CSR

Aiming to be the top Runner

We will constantly strive to develop superior technology and to continue to create “an imaging and information culture.”


How We Promote CSR Activities

We have completed a companywide initial education ofcorporate ethics (legal compliance) through seminars, casestudies and a Q&A on Charter for Good Corporate Behaviorand Employee Code of Conduct, in terms of compliance.We are currently working on the transition from phase Iabove to phase II. We have also completed the domesticand overseas legal knowledge sharing system to exchangethe constantly updated legal information, as well as exportregulation applicable/non-applicable criteria for the dailyexportation tasks. We are now promoting educationprograms for all our employees regarding these issues. Weshall initiate phases I and II at all domestic and internationalgroup corporations, and promote awareness in al lassociated employees to arrive early at phase III.

From Preventative Measures to ProactiveMeasures

Early Arrival at Phase III

We stress the value of sincerity and transparency in and outof Fujifilm and, at the same time, fortify legal complianceand self-management in phase I. This phase is also regardedas the phase to introduce preventative measures to avoidadverse situations. We shall strive for proactive measures,such as social reform or social contribution activities outsidethe scope of our business through phases II and III,especially in phase III.Fujifilm Group has formed very intimate relationships withconsumers and customers in fields of imaging informationand document solution. We are also in collaborativerelationships with many corporations in terms ofdevelopment and manufacturing. We shall contribute to thesustainable development of society through active socialcontribution activities through our network of relationships.

We stimulate CSR awareness through training, and heighten sensitivity for grasping the current status and extracting challenges from it.

●Phase I: Proclamation (creating awareness)

Self-motivated “Plan, Do, Check, Act” approach to daily CSR activities conducted on small group basis.

●Phase II: Creating Routines (reflection of CSR concept in daily activities)

We reflect CSR viewpoints, in terms of economic, environmental and social aspects at the planning and inception phase of businesses.

●Phase III: Establishing Plans (reflection of CSR in business plans)

“Sustainable Development”


Corporate Governance/Compliance and Risk Management

Promotion of group administration has become an increasinglyimportant challenge for Fujifilm. Therefore, as a part of ourgroup administration promotion measure, we incorporated thecorporate vice president system in 1998. With the corporate vicepresident system, we defined the role of the board of directorsas an “auditing body that determines basic administrativepolicies, as well as assesses strategies for their implementation.”The president, who is in charge of executing business decisions,shares his executive authority with corporate vice presidentsaccording to the basic policies determined by the board ofdirectors. We have also set the term of office for directors andcorporate vice presidents to be renewable every year so thatthey will focus clearly on their roles and responsibilities.There are currently 16 directors and 30 corporate vice presidents(15 of whom are also directors) in Fujifilm. Out of five corporateauditors, three of them are external auditors contributing to anobjective assessment of our administration. Since corporateauditors perform auditing for overall business execution underthe premise that they belong to an independent organizationsupporting corporate governance, each corporate auditorattends the meetings of the board of directors, and the full-timeauditor attends management committee meetings on a regularbasis as well.

Fundamentals of Corporate Governance

In order to keep up with the rapidly changing business environment, Fujifilm promotes efficient,responsive and sound group administration. To this end, we have executed administrative reform withnew corporate governance. We aim to become a corporation supported by all our stakeholders.

Business Execution/ Internal Leadership

Internal Leadership Business Execution

MonitoringAdministration

Management CommitteeMeeting

Corporate Vice President

Divisions, Consolidated Subsidiaries

Board of Directors(Determination of administrative policy and strategy,

monitoring business execution)

Representative Director and CEO

Shareholders' Meeting

Independent Auditors

Auditor's Office

Board Corporate Auditors

Compliance & Risk Management DepartmentOffice:

Compliance Committee

Compliance & Risk Management Department

Comprehensive Risk Management Committee

Ecology & Quality Management Division

PL Committee

Office:

Office:

Fujifilm conducts its business activities in accordance withsound corporate ethics and pursues environmentalcompliance and product safety concerns to fulfill itscorporate social responsibility (CSR) as a foundation of itscorporate business philosophy. We established the CSRDivision in April 2004 to promote company-wide CSRactivities that are well balanced in economic, environmentaland social aspects.The CSR Division, consisting of Compliance & RiskManagement Department and Ecology & QualityManagement Department, works on various CSR challengesin conjunction with departments associated with CSRactivities. Fujifilm aims to develop into a corporation supported by allstakeholders.

Establishment of the CSR Division

Th

eC

SR

Activities

by

Fu

jifilmG

rou

p

Step-by-Step Advancement

Fujif i lm Group CSR concepts are being integratedthroughout corporate activities in a stepwise programconsisting of three phases. Phase I activities have beencompleted already and their effects are beginning to beseen as CSR awareness increases. Fujifilm Group will definethe sustainable corporate development more clearly as itadvances into phases II and III.



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Corporate Governance/Compliance and Risk Management

Compliance & Risk Management Department wasestablished as an organization to regulate internalcompliance and risk management, which are the key issuesin the VISION75 medium-term management plan.

Promotion of Compliance & RiskManagement

Corporate Ethics Committee (now Compliance Committee)and Fujifilm Charter for Good Corporate Behavior wereestablished in 1999 simultaneously for the purpose ofpromoting compliance. Domestic and international FujifilmGroup corporations including Fujifilm have established andhave been promoting their own version of Employee Codeof Conduct based on the Fujifi lm Charter for GoodCorporate Behavior. By 2002, a dedicated internalorganization to promote group-wide compliance activities,the Compliance Office, Legal Division (now Compliance &Risk Management Department) was established.

Promotion of Compliance

Co-Chairman: Corporate Vice President in charge of CSR

Permanent Member: Corporate Vice Presidents in charge of Planning and Management/General Affairs

Chairman: President Chairman: President

Compliance Committee

Compliance & Risk Management Department

(CP&RM)

Co-Chairman: Corporate Vice President in charge of CSR

Permanent Members: Corporate Vice Presidents in charge of Planning and Management, General Affairs, and Personnel

Role: Proactive and preventative activities to keep the risk from becoming serious or spreading

Roles:1. Notification of Charter for Good

Corporate Behavior and Employee Code of Conduct

2. Following up with the Permeation of Employee Code of Conduct

3. Dealing with violations against Employee Code of Conduct

Head of CP&RMOffice (Head of CP&PM) Office (Head of CP&RM)

Comprehensive Risk Management Committee

CSR Division

FUJIFILM CHARTER FOR GOOD CORPORATE BEHAVIOR

Corporations, in addition to being economic entities engagedin the pursuit of profit through fair competition, must beuseful entities to society as a whole. For this reason, Fujifilmgroup companies will, in doing their business, adhering to thefollowing seven principles, respect human rights, therequirements and spirit of all applicable laws in all countries aswell as international rules, and behave in a socially responsiblemanner, and take the initiative in pursuing sustainabledevelopment of the group companies.

1. We will develop, manufacture and supply useful goodsand services, giving full consideration to product safety,and will gain the satisfaction and faith of our customers.

2. We will engage in fair, open and free competition, andfair trade.

3. We will communicate with customers, local citizens,shareholders and other members of society by disclosingcorporate information in a fair and appropriate manner.

4. We recognize that coping with environmental problems isimportant to a corporation's social existence andactivities, both currently and in the future, and we willtake voluntary and resolute actions in dealing with thesetasks.

5. We, as good corporate citizens, at any place in the world,will make the best effort to have a good understanding ofthe cultures and practices of each society in which ourfacilities are located and will pay respect to them, and inaddition, we will conduct ourselves in a manner thatcontributes to the development of the local society,including actively undertaking philanthropic activities.

6. We will strive to help each employee further developtheir skills; respect the diversity, personal dignity, andindividuality of each employee; and provide them with asafe and comfortable work environment which attracts,motivates and rewards employees for contribution to thegrowth and success of the company.

7. We will not support antisocial forces and organizationsthat threaten the order and security of civil society.

Top executives of each Fujifilm group company, recognizingthat it is their responsibility to realize the spirit of this Charter,will take the initiative in achieving understanding of it withinall group companies and the companies with which they dobusiness. They must also heed the voice of their stakeholders,both internally and externally, and promote the developmentand implementation of systems that will achieve ethicalcorporate behavior.If the Charter is violated, top executives will work to identifythe causes and prevent a recurrence of the violation, making itclear to those inside and outside the group companies thatthey are personally working to resolve the problem. They willmake prompt and appropriate disclosure of all relevantinformation to the public, be fully accountable for what hasoccurred, and take appropriate disciplinary actions against thepersons responsible, including themselves, if warranted.

Employee Code of Conduct Revision andOpening of Consultation OfficeWe revised the Employee Codeof Conduct in April 2003 to keepup with the changes in Fujifilm‘sbusiness environment. We set upa Compliance ConsultationOffice at the same time andpromoted its use in Fujifi lm.There were 31 consultations inthe first year. Starting in May2004, we made the ComplianceConsultation Office available toall employees in domestic FujifilmGroup corporations. Leafletswere distributed to explain aboutthe workings of this office.

Consultation client

Fujifilm Compliance Committee

Highest priority on protection of the consultation client

Compliance Consultation Office

Phone callsEmailsLetters

Feedback (current status, report on the result)

Report on consultation(Individual names are kept anonymous)

Consultation Reception

Deliberation on survey method and

measures

Response to the consultation

client and its record

Collaboration with the associated corporations and divisions upon agreement by the consultation client may be

formed depending on the situation

The role of the Fujifilm Compliance Committee is todeliberate what action will be taken when there are seriousviolations of the Employee Code of Conduct. Starting inApril 2004, the Compliance Committee started disclosingan internal memorandum that l isted violations andexplained the actions taken, with a reiteration of the rules.The employee's name, age, gender and workplace werekept confidential.

Internal Disclosure of Reprimanded Cases

A compliance seminar for all corporate vice presidentsresiding in Japan was held in March 2004. In addition,training sessions geared towards newly hired employeesand newly appointed managers and directors at our groupcorporations were held as well. We plan to hold casemethod-based training sessions for all employees.

In-House Seminar

�Role and Structure of Comprehensive Risk Management Committee and Compliance Committee

Compliance Awareness Survey and Compliance Seminar

We conducted a compliance awareness survey for allemployees in December 2003. Employee comments fromthe survey indicated that the wording for compliance washard to understand, that the workings of the consultationoffice were not clear, etc. Based on the survey results, weheld a seminar for managers in April 2004. Managers, uponattending the seminar, gave a seminar to their subordinatesin each of their work sites to resolve these issues. We also postedquestions andcomments atindividual worksite seminars onthe Compliance& RiskManagementDepartmentweb page.

Revision of Fujifilm Charter for Good CorporateBehaviorFujif i lm added basic policiespertaining to CSR activities to revisethe Fujif i lm Charter of GoodCorporate Behavior in August 2004 inan effort to clarify Fujifilm Group'sstance and the concept of CSR for allemployees of the group.

In-House Compliance Seminar

Charter for Good CorporateBehavior, and EmployeeCode of Conduct Booklet

Compliance ConsultationOffice Leaflet

All members engaging in export management tasks musthave correct knowledge of export management-relatedlaws including the foreign exchange law, and act accordingto the export management compliance program. When thelaws are revised, we promptly notify each division of anychanges. We also provide special lectures for applicableconsideration of export regulations for the personnel incharge of compliance.

Export Management Task Seminar


Communication with Stakeholders and Its Means

Shareholders, Investors� Disclosure of IR information on the Web:

On the Internet or through other media wedisclose to our shareholders and investors thecurrent status of performance and futureprojections with financial reports, settlementstatements and annual reports.

� “VISION75”: VISION75 medium-termmanagement plan: We have provided ourinvestors with a description of business growthand structural reform, defining a strategicvision for the future.

Future Generations� Plant tours: The Fujicolor QuickSnap cyclic

manufacturing factory offers tours wherechildren have an opportunity to learn aboutrecycling. Likewise, at each of Fujifilm’s groupplants, such tours may be held for localresidents.

� Supply instructors: We provide instructors toeducational institutions to teach people aboutcyclic manufacturing and photo chemistry.

Local Communities� Coordination with the municipal government: We

work with the local community in such areas as cleanupactivity, tree planting activity, forestry volunteer andvolleyball classes.

� Supply instructors: Instructors for extension programsare provided at educational sites for citizens of the localcommunities.

� Publication of site reports: Site reports are publishedby the business offices of Fujifilm and some groupcorporations, both here and abroad, and thisinformation is made available to local residents.

� Environmental Communication Meeting:Conferences involving citizens, national and municipalgovernments and businesses are held periodically toexchange information to realize better regionalenvironmental information-sharing.

International Society� International Stakeholders Dialog: We invite very

knowledgeable CSR leaders from home and aboardfor dialog with CSR representatives of Fujifilm’sdivisions.

� Overseas Business Deployment: We pursue notonly expanding our sales network, but also performresponsible manufacturing at each base as a memberof the local community to enhance the local economy.We also strongly support in local environmentalactivities such as offering water conservation assistanceand aid in the protection of nature and animals.Furthermore, Fujifilm promotes interpersonal andcultural exchange acting as intermediary for sister cityconnections between overseas and domestic hubcities.

Trade Organizations� Exhibiting at lab shows: We maintain good

communications with each manufacturingassociation such as making announcements ofnew products.

� Readers opinion meeting: We hold readeropinion meetings involving industry participantscreating a forum for the lively exchange ofinformation and opinions.

NGO • NPO� Fujifilm Greenery Fund: Fujifilm Greenery

Fund was established in 1983. It financesactivities and research pertaining toconservation and restoration of the naturalenvironment.

� Support activity: We continue providingsupport towards NGO and NPO, including annualtree planting , a part of the Greenery Network ofNGO activity.

� Readers opinion meeting: People from NGOand NPO participate in Fujifilm Social andEnvironmental Report’s reader opinion meetingswhere ideas are discussed.

Municipal Government� Environmental Communication Meeting:

We create opportunities to discuss globalenvironmental issues with citizens and themunicipal governments. The EnvironmentalCommunication Meeting in Minamiashigara isan example.

� Compliance with the law: Our operations arein strict compliance with the law and we makeall necessary applications and notifications in atimely fashion.

Employees� Education and training: We furnish our employees with

various training courses tailored to their responsibility levelsand environmental education through e-learning (an on-line education system) creating the basis for a “FujifilmEverybody Can Trust.”

� Job assignments through management/employeedialogs: We identify each employee’s individual strengthsand personal needs by utilizing the goal-based system and aself assessment system.

� Labor Safety and Hygiene: We make certain of ouremployees’ labor and work environment safety. We haveestablished Fujifilm’s own MSDS database and we also striveto provide a comprehensive employees welfare program.

� Environmental Forum: An environmental forum is heldannually for employees to share information pertaining toenvironment and technology, and to enhance environmentalawareness.

Business Partners: (Agents and Distributors)

� SCM reform: We have collaborated with ouragents to devise a rapid distribution system tomeet the customers’ needs.

� Needs surveys: We conduct needs surveys incooperation with our distributors at our websitegeared towards digital camera users.

� Support system: We provide technical supportand various information exchange programs, suchas providing resident assistants for our distributorsand mini-lab support service.

� Events: We hold large-scale events such asperiodic business meetings, private shows, and labshows for more efficient communication.

Business Partners (Suppliers)� Regulations for Purchasing and Managing

Materials: We abide by our material purchasecontrol regulations and carry out sound purchaseactivities.

� Disclosure of Purchase Policies: At a semi-annualbriefing meeting and other meetings, we familiarizebusiness partners with our purchase policies. Thisinformation is posted in our website as well.

� Disclosure of green procurement standard:We endeavor to improve environmental qualityobjectives by asking our suppliers to abide byFujifilm specified “Suppliers Green Standard” and“Procurement Green Standard”.

Customers� Universal Design: We promote manufacturing products with design that is useful to

people regardless of age or handicap.

� System for dealing with customers: We have structured a central system that servesto connect our customer communication center and our product-specific supporttechnical specialists. Additionally, feed back to customers is provided in the form ofbetter products and measures through our QuickResponse databank of customers’opinions.

� Product Safety Management: Our PL committee and three systems deal with productsafety control. Also, MSDS and AIS, which are the means for providing information regardingproducts’ safety, are disclosed on the Web.

� Environmental labeling activity: To achieve a high standard of environmental quality,we use environmental labels and provide product disclosure information.

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Fujifilm Group and Its Stakeholders

The Primary Relationship Between Stakeholders and Fujifilm.

Customers

Shareholders,Investors

Business Partners: Agents and Distributors

Business Partners: Agents and Distributors

Business Partners: Suppliers

Customers

Shareholders,Investors

Business Partners: Suppliers

Fujifilm Group

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Financing, dividends,information disclosure,and corporate administration

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CSR Promotion Focuses on Sincerity and TransparencyIn recent years businesses have had more and more impact on society. Also, society is beginning todemand more strongly that businesses play an active role not only in the economic sphere, but alsoin environmental considerations as well as social concerns. The CSR Division was launched in April,2004 to deal with these societal issues. Fujifilm pursues sustainable development with the CSRDivision as a core value, striking a balance between economic, environmental and social aspects.Our CSR programs include a broad cross-section of Fujifilm Group management. This activity placessincerity and transparency at Fujifilm’s foundation. Fujifilm makes every effort to become a businessto be trusted by society, valuing open communications with its stakeholders in everyday tasks byusing the concept of CRS throughout its group companies.

Soichiro Yamamoto

General Manager of

CSR Division



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1. Improvement of Eco-Efficiency*We aim to improve the eco-efficiency, with regard to all sixindices below, by twice as much as the base year (to bedetermined by the end of fiscal 2004), in fiscal 2010.

A. Greenhouse Gas EmissionB. Consumed Natural ResourcesC. Atmospheric Emission of Volatile Organic CompoundsD. Consumed Packing and Container MaterialsE. Waste GenerationF. Water Usage

* As communications technology and information technology rapidly advance,the paradigm for the Fujifilm’s business fields is shifting towards digitization.In order to effectively keep pace with such change in the businessenvironment and transcend into a new path of growth, Fujifilm is actively andrapidly investing into the flat panel display materials business andestablishment of new sales company in October 2004. In this light, we willreestablish our policies by giving reconsideration to the eco-efficiency, whichis an index for both corporate economic growth and environmental impact.

2. Design for EnvironmentFujifilm will design all new and remodeled products according tothe Basic Regulations for Design That Takes the Environment intoConsideration. The same policy will be executed for all domesticand international Fujifilm Group corporations in time.

3. Continuation and Improvement of ZeroEmission

Each of the domestic Fujifilm Group corporations will maintainthe current Zero Emission standard. They will, furthermore,pursue qualitative improvement in resource recycling. Overseascorporations will establish separate targets depending on thesituations in each nation.

4. Reduction of Environmental ImpactReduction of Greenhouse Gas EmissionBy fiscal 2010, Fujifilm Co., Ltd., on a non-consolidated basis, willreduce greenhouse gas emission by at least 9% from fiscal 1990.By fiscal 2010, domestic Fujifilm Group corporations, as a whole,will reduce greenhouse gas emission by at least 6% from fiscal1990. Overseas Fujifilm Group corporations will establishseparate targets depending on the situations in each nation.

Reduction in Atmospheric Emission ofVolatile Organic CompoundsBy fiscal 2004, Fujifilm Co., Ltd., on non-consolidated basis,will reduce VOC atmospheric emission by at least 50% overfiscal 2000. VOC atmospheric emission goal will be integratedin the eco-efficiency improvement targets after fiscal 2004.All other domestic and international Fujifilm Groupcorporations will establish separate targets.

5. Contamination ControlConducting Environmental MonitoringFujifilm Group corporations involved in domestic manufacturingwill periodically monitor the soil and underground waterconditions as well as the amount of VOC emissions.

Leakage Measure for Plumbing, Pits and TanksDomestic Fujifilm Group corporations that manufactureproducts will continue to execute early detection leakagemeasures, including those above ground components, andappropriate back up systems.

6. Strengthening Chemical Substance Management

In order to comply with chemical substances regulations aroundthe world, Fujifilm will maintain and fortify a system to makesecure information collection, thorough group communication,and legally compliant product development and sales. Also,domestic and international Fujifilm Group corporations willconduct a secure management practice based on the FujifilmChemical Substance Management System. Furthermore,domestic and international Fujifilm Group corporations willattempt to intensify the management of chemical substancescontained in our products.

7. Green Procurement (Raw Materials, Parts, Packing Materials and Services)

In order to manufacture environmentally compatible products,Fujifilm will continue to survey the suppliers, procured suppliesand services. Fujifi lm will survey and help improve themanagement system for the chemical substance contained in itsproducts and environmental management requirements at thesupplier corporation levels. Fujifilm will survey procured supplies,and at the same time, clarify our non-contaminant agreementand specifications for its prohibited substances, and fortify ourinspection systems for environmental compliance.

8. Information Disclosure, Information Provision and Communication

Fujifilm will attempt to improve information disclosure/provisionand communicate through sustainability reports issued by eachof the domestic and international Fujifilm Group corporations.Fujif i lm wil l attempt to improve disclosure of productenvironmental information through MSDS and AIS. Fujifilm willattempt to have improved communication with all associatedentities in and out of the organization.

9. Construction and Improvement of ISO Management System

All domestic and international Fujifilm Group corporations willacquire environmental and quality management systemcertification and conduct continuous improvement to theirmanagement systems with the integration to daily operations asneeded.

10. Employee EducationFujifilm will conduct education and training pertaining toenvironment and quality for employees at domestic andinternational Fujifilm Group corporations. Fujifilm will alsocontinue to improve various aspects of their education andtraining procedures, including the contents of education andappropriate training measures, and textbook updating asneeded.

New Approach in Reviewing theEnvironmental Efficiency Indicator

Fujifilm promotes environmental efficiency in theFujifilm Group Green Policy. In order to allow ourselvesa more in-depth analysis, Fujifilm now participates inthe “JEPIX Forum,” which practices and permeates theEnvironmental Policy Priorities Index for Japan (JEPIX*).

We will examine the JEPIX continuously, so that we canbetter manage our environmental policies.* JEPIX was developed as a part of the “21st Century COE

Project” (International Christian University, ICU) by theMinistry of Education, Culture, Sports, Science andTechnology.

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Fujifilm Group Green Policy

Attitude toward Our Environmental Involvement

We strive to implement special measures to realize high“environmental quality” in our products, services, andcorporate activities, as well as to endorse sustainabledevelopment. Such measures are promoted based on thefollowing three principles outlined in the Fujifilm GroupGreen Policy:� Triple Bottom Line: Consider the environmental

(conservation of the global environment), social(corporate social responsibility), and financial (corporategrowth and development) factors comprehensively.

� Eco-Efficiency: Raise environmental efficiency (loweringenvironmental impact while increasing revenue).

� Life-Cycle Thinking: Care for the environment throughouta product's entire life cycle.

Ensuring Safety of Chemical Substances

At Fujifilm, each chemical used in manufacturing is classifiedinto five ranks and managed separately in order to assuresafety. We also developed three databases, such as theEnvironmental and Safety Information Database, in order toensure an absolute and thorough safety control of thechemical substances.

Evolving Design for Environment

While introducing the LCA (life cycle assessment) toestablish a new system to raise and maintain environmentalquality, Fujifilm is also devoting a great deal of effort intothe acquisition of the Eco-Leaf Type III EnvironmentalLabeling Program.

Fuel Conversion for Reducing Greenhouse GasEmission

In order to reduce greenhouse gas (GHG) emission, fuel forthe in-house power generation facility is being switchedfrom heavy oil to natural gas at each of our Fujifilmfactories. Fujinomiya Factory and Odawara Factory alreadycompleted this fuel conversion in 2003, and AshigaraFactory did so in 2004.

Fujifilm Group Green Policy

Constituted on April 1st, 2002Revised on June 1st, 2004

Clean water and air are absolute necessities in manufacturing photographic films, which was our main business at theinception stage of Fujifilm. We continue to implement appropriate measures to protect the natural environment and toassure safe and proper use of chemical substances, based on our principle “environmental consideration andconservation as the basis of company management.” In April 2002, Fujifilm Group Green Policy was approved, whichpromotes group-wide effort to achieve high “environmental quality” in our products, services, and corporate activities.

Basic Policy

“Sustainable development” is the most important issue for ourplanet, the human race and all business entities in the 21stcentury. Fujifilm Group corporations around the world aim to stayat the forefront of their effort to attain this goal in terms ofenvironmental, economic and social aspects. We will strive forcustomer satisfaction as well as our contribution to “sustainabledevelopment by achieving high “environmental quality” inproducts, services and corporate activities.

Action Guideline

1. We will promote environmental impact reduction andproduct safety assurance with the following three items inmind.(1) Our efforts are pursued throughout all corporate

activities.(2) Our efforts are pursued throughout the entire product

life cycle.(3) We give overall consideration for economic and social

implications.

2. We will improve our chemical substance managementlevel to reduce environmental risks.

3. We will comply with legal regulations; as well as FujifilmGroup self-regulation, standards and requirements thatare individually agreed on.

4. We will strengthen partnership with our business partners,as well as collaborate with government and industrialorganizations, and actively participate in communityactivities.

5. We actively give full disclosure of the informationregarding our involvement and accomplishment in variousenvironmental issues to all associated individuals includingthe local communities, government, and Fujifilm Groupcorporation employees to facilitate open communication.

6. We heighten the environmental awareness of everyFujifilm Group employee through employee education, sothat we can fortify our infrastructure to face challenges ofenvironmental issues in the future.

“All products MUST meetthe environmental qualitystandards.”

Kimitaka Kameoka,General Manager of Ecology & QualityManagement; CSR Division

For more on chemical management, see page 40.

For more on design for environment, see page 38.

For more on fuel conversion, see page 62.


JEPIX Forum Activity Report

Priority Targets

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Internal Audit Committee

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Specific Issues Promotion Committee

Fujifilm• Headquarters / Branch Offices• Factories• Research Laboratories

Fujifilm Group Companies

� Environmental Management Organization Structure

Collection of Environmental Information as aGroup CorporationFujifilm requires all group companies to submit a “GreenPolicy Annual Report” to the FRC Committee every year. Thisreport is a comprehensive analysis in a designated format. Itreports progress and accomplishments on Fujifilm GroupGreen Policy priority targets and other environmental safetyperformances. Fujifilm is also in the process of building adatabase so that each group company's report may be sharedthroughout the groups.

Group Companies’ EnvironmentalManagement

Fujinomiya Factory acquired its certification in August 1996and by January 1997 a total of four Fujifilm factories werecertified. Research laboratories, headquarters and salesdivisions all followed suit, completing the acquisitionprocess for all Fuji Photo Film establishments by December2003. Group companies are currently in the process ofacquiring certification, and overseas sales subsidiaries arealso starting to move toward the acquisition. According tothe sources that were available in August 2004, out of 139Fujifilm Group sites, 127 of them are already certified.Domestic subsidiaries and overseas production sites plan toacquire their certification by the end of 2004.

Certification Acquisition for ISO14001

International Environmental Conference

Fujifilm Group holds an International Environmental Conferenceevery year by assembling the group’s environmental safetyadministrators from all over the world. At this conference,participants work together to fulfill objectives set in the FujifilmGroup Green Policy, and to open possibilities for sharingmeasures and policies among the group companies. In November2003, administrators from 14 groups around the world gatheredtogether to discuss various topics over a three-day period. At thisparticular conference, primarily mutual environmental issueswithin the Fujifilm Group were discussed, such as reduction of thegreenhouse gas (GHG)emissions and activitiestowards achieving the zeroemissions. Each companyalso shared their plan andprogress report towardsattaining the Green Policypriority targets.

For more acquisition information, see page 86.

� Fuji Photo Film Co., Ltd. (December 2003)Including the headquarters in Tokyo, as well as the Osakabranch where certification had already been acquired, alldomestic branch and sales offices (in Sapporo, Sendai,Nagoya, Hiroshima, and Fukuoka) are now certified.

� Fuji Photo Film Co., Ltd. Asaka TechnologyDevelopment Center (December 2003)

The entire organization is now certified, including the LifeScience Research Laboratory where certification had alreadybeen acquired.� Fujicolor Imaging Service Co., Ltd. (October

2003)Acquired certification as a multi-site consisting of eightbusiness institutions including the headquarters and fouraffiliate companies. These affiliates are: Pro Lab Create TokyoCo., Ltd., Pro Lab Create Osaka Co., Ltd., Tochigi Fujicolor Co.,Ltd. and Media Lab ABYZ TOKYO Co., Ltd.

� Fujifilm Opto Materials Co., Ltd. (April 2004)An integrated management system was established for thefirst factory and an accessory department. These two facilitiesacquired certif ication of the ISO9001 and ISO14001simultaneously, both international standards for qualitymanagement systems.

� Fujifilm Consumer Cooperative (November 2003)

� FUJIPRESENTEC Co., Ltd. (June 2004)

� FUJIFILM Graphic Systems Co., Ltd. (July 2004)

� ISO14001 Certification Breakdown

Fuji Photo Film Co., Ltd.

Domestic Group Companies

Overseas Group Companies

Total

Number of Target Sites

7

92

40

139

7

84

36

127

Number of Sites that AcquiredCertification

* Because acquisition of multi-site certification (acquisition of certification bymultiple organizations together as one) is increasing, the number of targetsites is lower than the number of companies. (There are sites that includemultiple affiliated companies or multiple business institutions.)


Fujifilm's Ideal Management System


Fujifilm Group's environmental management systemfeatures the ideas expanded from the Responsible Care(RC)*, which we have been working on since 1995. It is alsoa system developed based on the ISO14001** standards. Bymaking certain to pursue each step of the PDCA cyclebefore repeating the process, the system receivescontinuous improvement.

Management System

Under the corporate philosophy: “We will constantly strive to develop superior technology andcontinue to create 'an imaging and information-oriented culture,” Fujifilm aims to realize a group-wideCSR management system. Using the established system of environmental management as a base, wewill work on other management areas such as quality management.

Management System

* Responsible Care: Voluntary action assures environmental complianceand that we follow safety and hygiene requirements throughout theentire lifecycle of chemical substances (development and design >production > shipment > usage > final consumption > disposal).Accomplishments from such actions are also publicly announced toprovide an opportunity for society to offer feedback to us regardingthis information.

** ISO14001: An international standard for the environmentalmanagement system, published by the International StandardsOrganization (ISO) in 1996. There is one certifying agency in eachcountry - in Japan, it is the Japan Accreditation Board for ConformityAssessment (JAB).

Vertical and Horizontal Structure Enhancement

Following the establishment of a special environmentalsafety management division at each factory in 1970, Fujifilmset a “vertical” organizational control by placing anenvironmental safety administrator in each sales office andresearch division. In 1989, Fujifilm RC Committee (thecurrent FRC Committee) was established, building acompany-wide, cross-sectional “horizontal” committeestructure. The committee is now the keystone in promotingactivities to accomplish the objectives set in the FujifilmGroup Green Policy.

Fujifilm’s Environmental Management

Fujifilm’s quality policy, “We attain ‘GLOBAL QUALITY’ withour environmentally-friendly products and the best qualityin the world” is the foundation for our everyday businessoperations. Factories and research laboratories have alreadyacquired the ISO9001 certification. However, in order toachieve a higher level of customer satisfaction, both theheadquarters and the sales divisions will also integrate theISO9001 into the environmental management system tomake it a company-wide plan of operation.

Internal Audit and Mutual Audit

Environmental Management System

Quality Management System

By the end of 2003, all Fuji Photo Film headquarters, branchoffices, sales offices, factories, research laboratories,domestic subsidiaries, and overseas manufacturing sites hadcompleted acquisition of the ISO14001 certification.Overseas sales subsidiaries are currently in the process ofbeing certified.In addition, internal audits are taking place at each certifiedsite. Furthermore, in order to use the ISO14001 as anenvironmental management tool to meet the challengeseffectively and for assurance a mutual auditing system wasimplemented. This audit will be conducted among thegroup companies by the environmental ISO externalconsultants and the senior-class internal auditors. FujifilmGroup has trained 80 senior-class internal auditors for thispurpose.

� CSR Management System


For All EmployeeFujifilm believes it is important to permeate understandingof Fujifilm Group Green Policy to all employee, in theprocess of upgrading the environmental quality andcreating the foundation for corporate sustainabledevelopment. To this end, we have established a PromotionCommittee for FRC Education to make variousenvironmental curriculums available to the employees.(General courses for all employees and various specialistcourses tai lored for particular posit ions and jobresponsibilities)

General Course

Specialist Courses

● Participation Status and GoalWe have incorporated anenvironmental education system by e-Learning for al l Fujif i lmemployees starting in fiscal 2003. Atotal of 12,103 people havecompleted the general course, and2,684 people completed ISO14001course by the end of fiscal 2003.About 95% of the people eligiblefor these course attended in bothcourses. We have targeted everyeligible employee in domesticgroup companies by the end offiscal 2004, and will continue tooffer the same courses for theoverseas group companies.● Contents of the CoursesThe general course covers four topics namely, globalenvironmental issues, importance of sustainabledevelopment, expected corporate actions, and FujifilmGroup Green Policy which is the medium-termenvironmental policy. The course focuses on contents tohelp participants understand, “why these items are the keyissues”, and “what an individual and a corporation must doto elevate the environmental quality.”● Questionnaire after CompletionAccording to the questionnaire given after completion ofthe general course, 94% of the participants answeredpositively, such as “I understood the course”, “I somewhatunderstood the course” and “I am more aware of my ownenvironmental challenges.” Some other comments were “Inow understand how serious the global environmentalissues are” and “ I would l ike to be aware of theenvironmental issues not only with my work but with myeveryday life.”We will continue with environmental education through thegeneral course for the newly hired employees andemployees that have not completed the course yet. We willalso work on revising the contents as well as planning fornew courses.

Environmental Education for theEmployees

Legal Violation 0, Claim 6Fujifilm did not have any environmentally related legalviolations, accidents or litigations this year nor for the pastfive years.We did receive six environment-related claims, however.Those claims are with regard to noise, vibration, odor, radiowave interference etc. which we promptly took measures,and disclosed the information to reach an accord. We areworking to prevent recurrence of those problems.

Compliance and Claim Reports

Fujifilm’s Ideal Management System

The CSR Activities by Fujiflim Group

Contents for the seminars inspecial courses are tailored for thepositions and job responsibilities.We held “Design for Environment”,“Basic LCA Seminar”, “GreenProcurement Seminar” and “Industrial Waste Management

� Claims During Fiscal 2003

Ashigara Factory

(One Incident) Vibrations from demolition of the single employees dormitorycaused damage to the neighboring house’s wall

Claim

Measures Taken

Claim

Measures Taken

Claim

Claim

Claim

Measures Taken

We repaired the wall. We also included a clause for monitoringthe effects of vibration, noise and compensation etc. in thecontract used with the contractors.

Fujinomiya Factory

(One Incident) Local resident complained about the odor.

Odor was caused by the diminished capacity for the food garbageprocessor. We first reported the incident to Fujinomiya Central FireDepartment and Fujinomiya City. Furthermore, we explained thesituation to the fire department chief and the mayor of FujinomiyaCity and the local residents to reach an accord.

Asaka TechnologyDevelopmentCenter(One Incident)

Fujicolor ImagingService Co., Ltd. : Sapporo

(One Incident)

Fujicolor ImagingService Co., Ltd.

(One Incident)

Fujicolor ImagingService Co., Ltd. : Tokyo

(One Incident)

A few houses in the neighborhood reported that they have poorTV reception.

Neighboring farm owner made a claim that the trees in ourproperty shed leaves over their crops affecting their growth.

A claim was places against vibration, noise and odor associatewith the demolition of a facility.

We received a claim against radio wave interference 11 years ago,when we built the company housing. We took a measure byinstalling a communal antenna system. We found out that thepoor TV reception this time was caused by the deterioration of thiscommunal antenna system. In order to make our measurepermanent, we installed cable TV for the 20 houses having poorTV reception to reach an accord.

We have pruned the branches extending over the property fence.We reached an accord by promising to continue pruning thebranches as needed.

We reached an accord by holding an explanatory meeting with theneighboring community.

Claim (Tokyo: noise)

A claim was placed against the noise occurring from the wellpump at night.

We reached an accord by suspending night time operation of thepump causing the noise until it is repaired. We added “checking thevibration by manual operation” to the pump inspection manual tohave periodical inspections.

Measures Taken

Measures Taken

Measures Taken

e-Learning

Seminar from Specialist Course

Seminar” seven times each throughout fiscal 2003, to have atotal of 455 participants from Fujifilm workplaces and groupcompanies.

e-Learning Screen


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As digitization rapidly advanced, the environment aroundFujifilm Group went through a drastic change in a shortperiod of time. Fujifilm is now at its turning point. In themidst of such a drastic change in the environment, we mustnot only make a fundamental reform in manufacturing andsales, but also reform the administrative operations. Themain concept behind such an action is the fortification of

Towards ConsolidatedAdministration

Activities in Economic Aspect of CSR Promotion

Economic Report

In the basic strategy, “Fortification of a Consolidated Administration” in VISION75 medium-term management plan,we have challenges to fortify the basis of company management. “Fortification of Consolidated Management” islisted along with “Fortification of Compliance & Risk Management” and “Further Fortification of EnvironmentalManagement” as one of such challenges. As the business environment goes through transformation, FujifilmGroup will strengthen group administration to achieve an optimal administration as a whole.

Payment of capital cost

InterestDividends

Gain in stock valueExpected profit

Net Operating Profit after Transaction（NOPAT）

Customers purchase Fujifilm’s product and services.

We pay expenses necessary for

the business activities.

￥� ￥�

￥�￥� ￥� SalaryTax

Sales ExpensesRaw Materials

EVATrue

economic gain

Fujifilm makes sales.

� Corporate Activities and Flow of Funds� Stakeholders and EVA®

Fujifilm’s corporate activities are supported by variousstakeholders such as the customers who pay for ourproducts and services, retailers, business partners,distributors, employees, banks that provide loans forbusiness funds, and shareholders. Fujifilm pays thosestakeholders from the fund acquired through its businessactivities in the form of payment, sales margin, salary,and interest. Shareholders as stakeholders, receive theshare of the profit after Fujifilm makes all payments andpays salaries and taxes. Therefore, we believe maximizingthe profit to satisfy the shareholders as Fujifilm Group asa whole, is equivalent to providing sufficient values to allstakeholders.

� Steps for Incorporating EVA®

Fujifilm Group started preparing for the incorporation ofEVA® in September 2003 (through (1) education andnotif ication). We wil l be continuing with theincorporation steps such as (2) EVA® trial with theforecast (3) calculation of the result and comparisonagainst the forecast, and (4) top-down establishment ofEVA® goals.

� Incorporation Steps for EVA®

a consolidated administration around each of the corebusinesses including group corporations. In causing thisaction, we intend to optimize the group administrationthrough unconventional measures such as the incorporationof EVA® (Economic Value Added) as the common scale forthe consolidated group, and the IT infrastructure to supportthe consolidated administration.

Incorporation of EVA®

Fujifilm has decided to incorporate EVA® as the most important common scale in the group management and establisheda promotion team in September 2003. Later, taking asset and capital efficiency in consideration we incorporated EVA®

containing the concept of “cost of capital.” By using EVA® as our approach, Fujifilm can advance its selection andconcentration process, reconstruct the future business portfolio, and at the same time each business and group companycan use EVA® as a common language to maximize their cooperation.

● EVA® is a registered trademark of Stern Stewart.


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About the Results of SustainabilityAccounting Calculations in Fiscal 2003

Sustainability Accounting

Economic Report

Fujifilm Group defines and discloses sustainability accounting as the environmental accounting that keeps track ofand discloses corporate investment, expenses and the results of environmental conservation combined withoverall social activity information involving things such as personnel, labor safety and social contribution. Theresult of Fujifilm Group’s environmental accounting, labor environment, and social accounting in fiscal 2003 is as follows:

Fiscal 2003 capital investment was 14.5 billion yen (1.3billion yen increase from the previous year), environmentalconservation expenses were 63 billion yen (4.2 billion yenincrease from the previous year), in-house economic gainswere 45.6 billion yen (3.1 billion yen increase from theprevious year), social merit was 12.6 billion yen (400 millionyen increase from the previous year), and customer meritwas 30.3 billion yen (10.3 billion yen increase from theprevious year).The increase in environmental conservation expenses ismainly due to improved energy conservation measures. Alsothe economic benefit of raw materials reduction andresource conservation has decreased. This is because we arecurrently in transition from our current main products toproducts in new areas. The amount of customer meritgained from R&D has greatly increased due to the largecontribution of increased sales of LCD films and thedevelopment of high-density recording media, etc., whichhas resulted in reduced costs to our customers.

We calculated the cost of improving our employees’ laborenvironment and social contribution within the Fujifilmgroup in the labor environment and social accounting. Theresult in fiscal 2003 was 4.4 billion yen.

Labor Environment and Social Accounting

Environmental Accounting� The Purpose of Environmental Accounting(1) To provide numerical environmental information useful for decision

making by top-level managers and workplace leaders.(2) To provide accurate quantitative environmental information in terms of

materials and economics to the related individuals inside and outside thecompany.

� Basic Policies of the Environmental AccountingWe base our environmental accounting on the “Environmental AccountingGuideline 2002” published by the Ministry of the Environment.� Applicable PeriodFiscal 2003 (between April 1, 2003 and March 31, 2004)� Calculation Method(1) Depreciation is calculated using a 3-year straight-line method, in principle.(2) The environmental conservation portion is extracted from expenses,

including items outside of environmental conservation.� The calculation of effectiveness is as follows.a. In-House Effect (Economic Gain)

We totaled the effects of resource conservation through reuse, recycling,and streamlined manufacturing processes.

b. External EffectI) Social Effect

We calculated the monetary value of the effect of environmentalimpact reduction from our environmental conservation activities.

II) Customer MeritWe calculated customers’ economic gain from the use of our newlydeveloped products.

Calculation Consideration

(Unit: millions of yen)

Items Descriptions Fiscal 2003Fiscal 2002

1 Labor Safety and Hygiene 812

1,484

997

91

280

779

4,442

643

1,310

521

43

456

1,027

4,000

General Education

Employment

Community Harmonization Expenses

Consumer Communication

Promotion of Art and Culture, International Exchange

2

3

4

5

6

Total

Department in charge of employees’ safety and hygiene, health checkups, and mental health care

Communication with consumers by the Customer’s Communication Center, information disclosure, and instructions about product usage

Promotion of photographic culture, sports, music, culture, and international exchange

Radio wave interference measures and sponsoring local community events for local residents

Employees’ education for academics, technology, and skills

Barrier-free considerations for handicapped employees, childbirth and childcare leave programs, nursing care leave program, reemployment program, sexual harassment prevention, volunteer leave, and employee dispatch for social contribution activities

� Labor Environment and Social Accounting

6,135

2,951

9,884

998

15

19,983

6,564

4,289

16,190

3,204

39

30,286

Main Items


Fiscal 2002 Fiscal 2003

Development of high-density recording media (reduction of magnetic media purchase cost)

Development of dry X-ray film

Development of PS plate without lith film (makes purchase of prepress films unnecessary)

Cost reduction in LCD films (reduction of polarized filter material cost and processing cost)

Development of energy-saving digital cameras (reduction of battery consumption)

Development of energy-saving printers (reduction in consumed operational electricity cost)

Total

� Fujifilm Group Corporations Included in the SustainabilityAccounting

A total of 21 companies including Fuji Photo Film Co., Ltd., FujiXerox Co., Ltd., Fuji Photo Optical Co., Ltd., Fujicolor ImagingService Co., Ltd., FUJIFILM Opto Materials Co., Ltd., Fuji PhotoEquipment Co., Ltd., FUJIFILM AXIA Co., Ltd., FUJIFILM Battery Co.,Ltd., FUJIFILM Business Supply Co., Ltd., FUJIFILM Human ResourcesDevelopment Co., Ltd., FUJIFILM Software Co., Ltd., FujifilmLogistics Co., Ltd., FUJIFILM Techno Service Co., Ltd., FUJIFILMMedical Co., Ltd., Chiyoda Medical Co., Ltd., F.F.M.A. Co., Ltd.,FUJIFILM PHOTONIX Co., Ltd., FUJIFILM Microdevices Co., Ltd.,FUJIFILM TPX Co., Ltd., Fuji Technics Co., Ltd., and FUJIFILM ARCHCo., Ltd. were included in the sustainability accounting.

� The Purpose of Labor Environment and Social AccountingFor the Fujifilm Group to keep track of the economic aspect of activities inimproving labor environment and social contribution by calculating theirexpenses

� Applicable PeriodFiscal 2003 (between April 1, 2003 and March 31, 2004)

� Calculation MethodEach of the calculation items was calculated as follows:Labor safety and welfare: Expenses incurred for these purposes are

calculated at each workplace.General Education: Education and training expenses, as well as salaries

corresponding with the number hours spent by the employees involvedin education related work, are calculated.

Employment: Expenses incurred from dealing with labor issues, andsalaries paid to reemployed retirees are calculated.

Consumer Communication: All expenses from workplaces communicatingwith consumers while representing Fujifilm Group are calculated.

Labor Environment and Social Accounting

Energy conservation

Reduction of raw materials and resources used, per unit

Water resource consumption reduction

Silver recovery

Sales of sludge containing silver

Polymeric materials recovery

Aluminum materials recovery

Others (sales of recycled items)

Fujicolor QuickSnap recovery (Polymeric materials, flashes and batteries)

Recovery of parts from used equipment

Development of dry X-ray film (for reduction of silver consumption)

More efficient LCD films manufacturing

Development of energy-conserving products

2002 2003 2002 2003

10,551 12,756 18,623 19,067

3,464 3,918 7,853 7,684

3,241 4,202 2,268 2,930

3,846 4,636 8,502 8,453

163 40 11,972 14,594

36 143 5,727 6,784

2,474 1,473 22,176 22,206

9 21 251 255

53 113 141

13,233 14,487 58,862 63,047

2002 2003

5 7

964

16,053 15,482

2,367 1,206

1,073 703

261 86

2,445 2,447

882 953

1

453

178

5,301 8,989

42,522 45,603

2002 2003

26 24

75.2 tons 67.1 tons

311 224

12,029 12,341

12,184 12,569

19

3,472

(2) Global Environmental Conservation

Energy Conservation

(3) Resource Recycling

Main Items Main Items

Reduction in pollution levy

217

Reduction in SOx emissions

Reduction in VOC emissions

Reduction in CO2 emissions

Reduction of waste materials through reuse and recycling(Waste reduction 123.4 thousand tons, processing charge is 100 yen/kg)

Customer merit (please refer to the table below)

182 20

2,697

10,682 11,616


Environmental Conservation Costs Environmental Conservation Effectiveness

Main Activities

1. Expenses Incurred within the Business Site

(1) Pollution PreventionMaintenance, operation and management of waste water treatment facility and exhaust gas treatment facility, VOC atmospheric emission reduction

Reducing material loss during manufacturing of products, improvement in manufacturing efficiency, designs to reduce water resource consumption and raw materials usage, reusing and recycling of Fujicolor QuickSnap, silver, containers and bases, etc.

2. Upstream/Downstream Costs

Used product recovery from the market

3. Management Activity CostsAcquisition of ISO14000 certification for environmental conservation at manufacturing sites, information disclosure

4. R&D CostsDevelopment of Environmentally compatible products, manufacturing facility and R&D for improving manufacturing efficiency, material safety tests

5. Social Activity CostsEnvironmental conservation support, greenery improvement

6. Environmental Damage CostsPollution levy

Total

CapitalInvestment

Expenses (including

depreciation)

In-House EffectsEconomic Effects

Amount Amount

External EffectsSocial Effects

* Alumina waste materials (52.1 thousand tons), polymeric waste (15.9 thousand tons), other waste materials (55.4 thousand tons)The justification for environmental impact reduction cost calculation is as follows:➀ SOx reduction: 345,000 yen /ton ➁ VOC reduction: 525,000 yen/ton (Based on Japan Environmental Management Association for Industry (JEMAI) “1999 Survey Research Including Development on Environmental Business (Environmental Accounting) Report”)➂ CO2 reduction: 1,611 yen/ton (Based on the Ministry of the Environment publication, “2003 Report on GHG Emission Trading System Proposal Project”)➃ Landfill cost for waste materials: 100 yen/kg

Environmental Accounting

�Consolidated Environmental Accounting

�Customer Merit

What kind of medical equipment is the FCR PROFECT CS?

The FCR PROFECT CS is a digital X-ray image scanning device used for plain

radiography of mammary and chest regions. The operating process for the FCR

PROFECT CS system is as follows: the X-ray image is stored on an imaging plate, the

device reads the image data and converts it into an electric signal, then further into a

digital signal. After processing the image, the FCR PROFECT CS device provides a

high-definition diagnostic image suitable for radiography of each part of the body.

The imaging plate is produced by Fujifilm’s original technology and can be used for

radiography several thousand times. In contrast to single use films, the imaging plate

is environmentally friendly since it can be used over and over again.

You can perform a medical examination with a technology other thanFCR (for example conventional films), can’t you? What would be thedecisive factor in a radiologist to selecting the FCR PROFECT CS?

The FCR PROFECT CS can consistently provide images at the highest definition. With

machines using conventional film, it is necessary to fine-tune the developing

machine to obtain a proper diagnostic image in high definition. If the radiation dose

is not adjusted exactly when taking X-ray photos, it becomes impossible to obtain

the diagnostic image at the proper tone. This requires experienced radiography skills.

On the other hand, the FCR PROFECT CS consistently provides high-definition

diagnostic images in the desired tone. This is thanks to the image optimization

process that occurs after converting the X-ray image into digital data.

Are there any other advantages of X-ray photo digitization?

The diagnostic image can be stored as digital data and transmitted via network to a

medical specialist in a remote medical facility, to be diagnosed.

Please tell us about the characteristics of the FCR PROFECT CS.

Its strength lies especially in breast cancer examination. Reported cases of breast

cancer are increasing rapidly. One out of every 30 women is afflicted with breast

cancer, surpassing stomach cancer to become the leading cancer occurrence in

females. On the other hand, it is also known that early detection allows a high

probability for curing the patient. The FCR PROFECT CS makes the best use of the X-

ray signal through dual side reading that absorbs X-ray at a high efficiency rate. This

allows the device to clearly project the small calcified shadows and tumor shadows

particularly necessary for early detection of breast cancer.

I understand that the Ministry of Health, Labor and Welfare hasdecided to abolish breast cancer examination by palpation andocular inspection only and to fully introduce mammography, (themain breast cancer examination method in Europe and NorthAmerica that uses X-rays to diagnose and locate tumors of thebreasts). Would you tell us about it?

The previous model, the 5000MA was the first model to handle breast cancer

examination by mammography but the FCR PROFECT CS makes it easier. The FCR

PROFECT CS is designed to withstand cold climates and the vibration of a bus. By

carrying FCR PROFECT CS on an X-ray vehicle, those who are unable to travel to

clinics or hospitals may have a breast cancer examination more easily. We hope this

will contribute to the promotion of breast cancer examinations.

Please tell us also about the environmental performance of the device.

The FCR PROFECT CS has greatly increased image

processing capacity over the previous 5000MA’s 48 to 80

images per hour ability. The electric energy consumption per

100 plates for the FCR RPROFECT CS is less than a half of

that of the 5000MA. When improving products to meet

social needs, it is important to consider the environmental

performance as well. Four imaging plates can be set on the

FCR PROFECT CS at the same time for greater processing

capability, thus reducing wait time for patients. We believe

that this feature improves efficiency in medical institutions.


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Please tell us how this intestinal endoscope was developed.

Fujifilm jointly developed the endoscope with Dr. Hironori Yamamoto at Jichi Medical School.

Starting in 2000, we successfully completed product development in the fall of 2003 after a

great deal of trial and error. This endoscope is the first of its kind in the world. The double-

balloon method has made it possible to check up on and treat any part of the small intestine

throughout its seven meter span.

Couldn’t you check the small intestine in the past?

Since the small intestine is free-moving in the abdomen, it was difficult to insert the endoscope

into the far region of the small intestine. Although a capsule endoscope* has recently been made

available, it has weaknesses such as not being able to treat or focus throughout the entire small

intestine which increased the chance of overlooking problems. We have therefore implemented

Dr. Yamamoto’s double-balloon method where the examiner can create fixed places in the small

intestine enabling advancement of the endoscope through the entire small intestine.*The capsule endoscope under clinical testing on a test subject in Japan is swallowedand excreted naturally after it goes through the esophagus, the stomach, and theintestine. It takes two images per second, and its data is transmitted wirelessly for amedical specialist to examine at a later date.

What are some of the ailments in the small intestine?

Since until recently the small intestine was largely unexplored, it was believed that the small

intestine developed few lesions. The double-balloon method intestinal endoscope however,

has made it possible to provide a highly accurate medical examination of the small intestine

and to detect various lesions such as cancer, Crohn’s disease, and tumors.

Can the double-balloon method intestinal endoscope be used fortreatments as well as medical examinations?

Yes. We can give treatment such as stanching, excision of polyps on the small intestine, and

dilation of the stricture. We can also remove any foreign matter that has entered the small

intestine but cannot be discharged. We feel that this is a huge contribution to medicine.

Masayuki Takano:Operations ManagerDesigning Section, MedicalEquipment DivisionFUJINON CORPORATION“We have been developingendoscopes since 1971. Wehave been supporting themedical field by respondingto the needs of patients anddoctors.”

Double-Balloon Method

Intestinal EndoscopeFujifilm’s own double-balloon method intestinal endoscope, the first of its kind in theworld, can ease a patient of pain when undergoing an endoscopy. It allows focusing withinthe entire small intestinal region which makes early detection and treatment possible.

Double-balloon

“There are two types of conventional intestinalendoscopes: One is the Sonde endoscope that isinserted into the small intestine synchronizing with itsperistaltic movement; the other is a push endoscopethat is pushed into the small intestine forcibly,maneuvering through the stomach and duodenum toline up in a passage to the intestine. The Sondeendoscope takes a long time to reach the smallintestine, and the push endoscope gives a patient agreat deal of discomfort.The double-balloon method intestinal endoscope isan intestinal endoscope that was developed to give apatient a safer and more accurate medicalexamination while inflicting less discomfort.We are now promoting the double-balloon methodintestinal endoscope both domestically and abroad.”

Hironori Yamamoto, medical doctor (at left)Digestive Tract Internal Medicine, Jichi Medical School

Who are the users of the Frontier SP3000?

Most SP3000 users are digital minilabs, where photos are printed on paper from

negatives. It is much quicker to develop a roll of film and print photos on paper from

negatives than it used to be. Digital minilabs and Fujifilm are now working together to

satisfy customer demands. One such customer demand is speed. In 2003, Fujifilm

constructed and started operating the Partner Net System* to support the digital minilabs.

We support the digital minilabs nationwide to create an environment where they can

provide customers with a better quality and faster service.* Partner Net System supports Frontier operation by monitoring the Frontier equipment at digital

minilabs through the support center remote management system. This enables the supportcenter to solve problems online through remote maintenance. When parts need to be replaced,a service engineer is dispatched.

Please tell us something about the Design for Environment in thissystem.

First of all, we have greatly reduced the weight by changing the structure and

materials of the body. Secondly, we have switched the exposure light source from a

halogen lamp to recently-developed light-emitting diode (LED). This has greatly

reduced the standby power consumption as well as the operational power

consumption. While halogen lamps need to be replaced every three months, LEDs

never need replacement, greatly reducing the running cost as well as the

environmental impact.

Are there any new environmental considerations to rawmaterials?

Fujifilm and a resin manufacturer jointly developed the ABS ECO PELLET* we use as

raw material. At its base, ABS ECO PELLET uses recycled Fuji Xerox copying machine

covers that are crushed, washed and blended by the resin maker.* ABS ECO PELLET is a blend of 20 % recycled material to 80% virgin resin.

What advantages can photos printed by the Frontier at the storefrontoffer?

The biggest advantage is its digital image processing. It can automatically compensate for the red-

eye effect, the shadows cast over the face by backlighting or a blue tint to the skin to create

beautiful photos. All the photographic know-how that we at Fujifilm have accumulated over the

years is condensed into the Frontier database. Being able to capture and store many peoples

beautiful memories is Frontier’s reason for being, our mission and our customers’ happiness.

Digital Minilab

Frontier SP3000SP3000 reads the image from a film when printing a photo. Based onlifecycle assessment (LCA), this product has successfully achieved a 56%reduction in greenhouse gas emissions through a reduction in powerconsumption and the body weight.

Azuchi EndoEquipment Research &Development Center“I have been in charge of developingdigital minilabs for 15 years, andexperienced a transit ion fromconventional photography to digitalphotography. I’m happy to know thatmy job has contributed to improvingthe quality of photography.”

Change of electric source, etc.

SP2000 (the conventional model) SP3000(Indices)

– 20Raw

materials

100

80

60

40

20

003.24.9 3.24.9

Production of a product

0.3 0.3

Shipment Use Disposal · recycle Total

44.4

100

39.9

92.9

– 2.1– 2.9

� The comparison of a conventional model with life-cycleenvironmental impact (CO2 equivalent)

A conventional model SP3000

7,900kg 3,270kgQuantity of CO2 based on LCA

A conventional model SP3000

140kg 118kg Alteration of the frame structure,making covers with resinWeight of the unit

900W 380W Use of light-emitting diode as anexposure light source, etc.

Operating powerconsumptionStandby powerconsumption

Main factors

250W800W


Products Society Trusts


Medical high-definition digital X-ray image diagnostic system:

FCR PROFECT CSFCR PROFECT CS contributes to early detection of breast cancer.Fujifilm supports Pink Ribbon activities that promote medicalexaminations for early detection of breast cancer.

PROFECT CS5000MA (the previous model)(Units)

(Month)(Year)

0

100

200

300

400

500

12002

12003

12004

4 7 10 4 7 10 4

600

700

800

900

FCR PROFECT CS release

Photo: From the upper left to right� Sadami Yamada: Divisional Manager� Kenji Tajima: Research Manager� Hideki Suzuki: Research ManagerEquipment Research & Development Center“Since the Ministry of Health, Laborand Welfare has widened the breastcancer examination schedule fromwomen ages fifty and above to agesforty and above this year, we believethat the FCR PREFECT CS will beinstrumental in helping to moreeffectively detect breast cancer at anearly stage.”

� Digital mammography mobile http://www.fujifilm.co.jp/fms/digital/fcr/index09.html

� The cumulative total units of the FCR Line shipped

Electric energy consumption (W)

05000MA

(the previous model)PROFECT CS

1200

1000

800

600

400

200

500

1050

� The comparison of the previous 5000 MA with the FCRPROFECT CS in electric energy consumption per 100 plates

5000MA

48

500

2.10

1050

80

415

1.25

520

PROFECT CS

Processing capacity(copies/H)

Electric consumption(W)

Processing time(H)

Electric energy

(Wh)

* About 22,000 units of FCR line have already been shipped throughout the world.

The inside of the digital mammography mobile


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As it is newspaper printing, the oven is used nearly every day throughout the year, and the power is normally turned on at all times.If the oven is used 350 days a year on a 17-hour operating schedule, assuming the power consumption of the oven averages 7kW a day, then a total electricity consumption of 42,000kWh/year is saved.

Exposuremodule

Thermalmodule Development

module

Exposuremodule Development

module

HN-N is for domestic newspaper printing, but how does it differfrom a normal printing plate?In the newspaper printing industry, the users’ demand is focusedand strict. Newspapers are printed in a large volume 365 days ayear. For this reason, it is necessary to have a stable supply of thesame quality plates. Even in the case of an earthquake, the supplymust remain stable. Also, as plate making can be done in a shorttime, the final deadline for newspaper article drafts can beextended more than before.

For this product, the thermal negative plate method is used.What other methods are available?Until 2002, various methods (such as electronic photography,photopolymer and silver halide) were used. After 2003, the thermalnegative method is becoming the standard. The reason is that thishigh quality method and the capability of bright room processinghave been accepted by the users. However, the existing thermalnegative method has the disadvantage of requiring oven heatingfor plate making. With the HN-N, the process of oven heating iseliminated, enabling rapid processing and environmentally friendlyplate making. We feel that promoting environmental considerationsin the newspaper field, where society is widely involved, carries asignificant meaning.The plates are said to be environment friendly, but what exactlyare the environmental considerations of this product?Basically there are two points. One is the realization of ovenlessdesign (unheated). The ovenless design has lead to the reduction ofelectricity consumption by 42,000kWh/year (an electricity bill of 1million yen), and of CO2 equivalent to 15 ton/year. Another benefitis the reduction of 280 L/month (3,360 L/year) of the solution wastethat is generated in the process of developing when compared withthe thermal CTP system.What other advantages does the ovenless method have?

We received a report from one user saying that they used to heatthe plates to over 100 degrees, and ovenless has reduced theircooling expenses. The printing operators very much prefer thelower temperature and the elimination of odor. Also, there is noperformance fluctuation caused by temperature variation in theheating process, which was a problem with the existing method.The stable quality available now in plate making is quite popular.

Ovenless Thermal Negative Plates For Newspapers

HN-N

HN-N is a plate for domestic newspaper printing. It contributes tothe supply of newspapers you see every day. Because the plate hasbecome ovenless (unheated), an environment- and user-friendlysystem was created.

Photo: From left to rightTakahiro Goto, Senior Research Manager; Kazuto Kunita, Research Manager; HiromitsuYanaka, Researcher; Toshio Uesugi, ResearcherPrinting Materials Research Laboratories, Yoshida-Minami Factory

“Ovenless truly is a breakthrough technology. It is people-friendly, environment-friendly, and budget-friendly. We want many people to use it and realize its values.”

� Comparison between the Heat Method and OvenlessMethod (This Product)

Does oven heating generate significant heat?

With the heating method, a large oven operates constantly attemperatures between 100ºC to 153ºC. Severe heat and odor areserious problems for operators.What does ovenless mean? What has been the obstacle indeveloping it?To put it simply, the existing method used heat for a reaction. Theovenless design causes a reaction without applying heat. However,low-temperature reactions meant it was possible that unwantedreactions might occur at normal room temperature. The result ofour R&D is the ability to manage the control reaction at a lowtemperature, which makes it possible to offer a comfortableworking environment to our customers.


Please tell me what are some of the advantages of FinePixF450·EF440that was released in July 2004?

One of the advantages that it has is its size. It is designed so that not only is it compact but

also rugged and durable. Users are always looking for a smaller digital camera. Downsizing

the digital camera also leads to an improvement in life cycle assessment (LCA) of the

product.

I am wondering whether the users can adapt to the changes indigital cameras caused by rapid size reduction?

As the functionality of digital cameras advances rapidly, we are discovering new and fun

ways to communicate to users how to use and enjoy them.

Are there factors in reducing its size that have presentedobstacles for environmental considerations?

When size reduction progresses to this point, trying to recycle smaller parts may increase

environmental impacts. Legal regulations are also being strengthened against the use of

recycled materials containing hazardous materials, making recycling more difficult.

Therefore, we are always looking ahead and trying to come up with the most effective

environmental considerations suitable for digital cameras.

Is there any difficulty simultaneously satisfying both theusers’needs and the environmental considerations?

The liquid crystal display (LCD) panel presents some difficulty. Although the environmental

impact of the LCD panel is high, the larger the LCD panel the easier it is for the user to view

letters and images. In developing the FinePix F450 and F440, we did want a larger LCD but

certainly did not want to increase the environmental impact. This is the reason why we

developed the new thin LCD panel.

The FinePix is a cutting-edge product in terms of life cycleassessment in the digital camera market. Please tell us about anyfuture challenges?

One of the challenges to the FinePix is establishment of a system accreditation program*. If

we can successfully establish the program, we will be able to give our customers Eco-Label

information sooner. A second challenge is the reduction of operational energy consumption,

an essential problem that faces us in the high-resolution era. This is our theme by default.

* The system accreditation program is one of the accreditation methods for a Type III Eco-Label. It is asystem in which data monitoring specialists build a product environmental data collection system ina workplace. It monitors the data as reliably as would an outside monitor. This enables theproduction of a label that discloses the facts economically and in a timely manner.

Michihiro Miyake (at left:), Kouji Hisamatsu (at right)Design Department, Digital Images Division“We are always challenging our limits. The shape, size, raw material and position of each part is so important to theproduction of a compact camera that a margin of error of plus or minus 0.1mm can cause a detrimental result.”

F450 (Data common to F440)F410(kg)

0Production of

materials

equivalent

CO2

10

8

6

4

2

Production of products

Shipment Use Disposal·recycle Total

4.78

7.046.67

1.83 2.03

0.03 0.03 0.07 0.06 0.38 0.39

4.16

Digital Cameras

FinePixF450·F440With the arrival of the age of higher resolution and increasingly compact digitalcameras, the FinePix’s challenge for more advanced design technology continues.

In cooperation with NHK Culture Center, we havepresented a digital camera hands-on lecture invarious places across Japan since October 2003.By March 2004, we had held 58 of these lectures.We will be continuing with this service in thefuture. During the lecture, Fujifilm’s formeremployees present suggestions on what to dowith digital photos once they are taken, inaddition to instructions for use of the digitalcamera.

* Unlike the F410, the F450 is packed together with cradles. The above-mentioned comparison is made on thebasis of the data compiled in accordance with internal standards, except for the cradle packed together.

F410 F450 F440



� Comparison of the conventional model with environmental impact in terms of life cycle

What differentiates liquid crystal from cathode-ray tube (CRT)

displays and what are the roles of the various flat panel display

materials?

The cathode-ray tube is hard on the eyes of a user as the light from the light source

directly irradiates their eyes. The film in liquid crystal displays decreases the strain on

the eyes because light is reflected against the film once before irradiating the eyes. In

the case of conventional liquid crystal displays, it was difficult to see the images from

a certain angle due to the inherent features of liquid crystal. The film material (similar

to a sheet film) affixed to the surface of the screen acts as a polarized filter and

makes the image clearly visible from any angle. It reduces eye fatigue as well and

saves the frustration of viewers standing at non-optimal angles.

What is Fujifilm’s market share of this material?

The materials produced at the Ashigara Factory, the Odawara Factory, the

Fujinomiya Factory, and the FUJIFILM Opto Materials Co., Ltd. are supplied to

polarized filter makers and panel makers, and are shipped to the market for sales by

electric machinery makers. We produce four materials for flat panel displays,

FUJITAC, Wide View (WV) Film, CV film, and transer film. For example, we have

more than an 80% share of FUJITAC, the material indispensable to film for liquid

crystal displays.

For Liquid Crystal Displays

Flat Panel Display Film Materials

As liquid crystal TV sets become popular and PC monitors grow ever

larger, the demand for liquid crystal displays is increasing rapidly. Fujifilm

produces various films necessary for production of liquid crystal displays.Takashi Andou (at left):Technical Section, Electronic Display MaterialsDivision, Odawara FactoryYoshiaki Narukawa (at right):Technical Section, Production Div. No.1 AshigaraFactory

“As the LCD TV sets become popular, the materials produced byFujifilm are used for a wide range of applications in your daily life.”

Seen from the right side

Seen from above

Seen from the left side

Seen from the right side

FUJITAC

Made from cellulose triacetate, FUJITAC isused as a polarizing filter for a liquid crystaldisplays (LCD) and as its protection coating.It has exceptional optical characteristics.

CV film

It is an antireflection film on the surface of liquidcrystal display (LCD) panels. It hascharacteristics of low reflectance, high definition,is highly dust-proof and highly resistant to soiling.

Wide View (WV) FilmIt is a film that greatly widens the viewingangle of liquid crystal display (LCD) panels.It is a Fujifilm’s original product.

Transer film

It is color filter making film for liquid crystaldisplays (LCD). It is most useful for theproduction of large–sized panels.

� Wide View (WV) Film(At right: the conventional film used / At left:Wide View (WV) Film used)


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What are the features of the new Fujicolor QuickSnapNight&Day?

In response to the voices of women in their 20’s to 30’s who wishto take clear night shots, it carries the feature of a nightphotography mode using Fujicolor SUPERIA Venus1600 camera filmand an F6.2 high-performance dual lens. This has made phototaking by hand easy and comfortable without using a tripod.

What design innovations or design difficulties were there?

In the night photography mode, environmental impact was reducedby using only a mechanical function and no electronics parts toadjust aperture, shutter speed and flash brightness. The hardestpart was to squeeze this function into the body size of the popularFujicolor QuickSnap.Sharing common parts, such as flash units, is the basic conditionfor reusable parts in cyclic manufacturing, isn’t it?Yes, it is. If there is no design change of expensive parts, such as flashunits, it increases reusability effect. In that way, we manage to limitenvironmental impact even with a high-end model like Night & Day.What kind of value would you like to offer through FujicolorQuickSnap?It is the “joy of capturing an irreplaceable moment.” We are confidentwe can offer a new way to nurture a fun-loving spirit in night snapphotography utilizing the features of silver halide film (high sensitivityand high image quality). Digital cameras and cell phones with built-incameras are growing in popularity. Fujicolor QuickSnap is a cameraanybody can easily use to take high quality photos.

Night & Day

– 40

120

100

80

60

40

20

0

– 20

115

85

66 0.9 0.9 1.7 1.3

– 13

100

80

– 24

Excellent(Index)

Material ProductManufacturing

Logistics Use · Disposal Recycling LCA total

Mitsuhiro Moriya, LF Division , Ashigarafactory

“Besides night shots, you can create nice photoswith good atmosphere using room light. It isrecommended for indoor parks or weddings. Thenight photography mode is best for the eveningwhen the sun has set, yet it still feels half-bright,and so this mode is also suited for photography ina dense stand of trees.”

Clear Night Shots, Beautiful Day Shots

Fujicolor QuickSnap Night&DayFujicolor QuickSnap is a product that symbolizes the cyclicmanufacturing mindset of Fujifilm. “Whenever, Wherever andWhoever” has been the basic theme since its debut in 1986.

� Fujicolor Quicksnap’S Life Cycle Environment ImpactComparison (CO2 Equivalent)

(%)0 10 20 30 40

43.5%

28.3%

19.6%

17.4%

15.2%

15.2%

13.0%

50

Clear night shots

Non-blurred photos (subject movement)

Non-red eye photos

Photos with clear background

Non-blurred photos (hand movement)

Photos with no texture

Clear photos taken when thebackground is bright

～～

� “Nice Shot” Photo Survey Results

“Up until now, I also suffered when I saw my patientssuffering during check-ups. What I want to do isendoscopy that both doctors and patients can enjoy.We have more and more patients who come fromother prefectures for check-ups using a nasalendoscope, but I really hope nasal endoscope check-ups become available at hospitals everywhere.”

Doctor Tetsumaru MiyawakiDirector, Izumo Central Clinic

What kind of diagnostics is this product used for?

It is used for the diagnosis and treatment of upper digestive tractorgans (stomach and esophagus). The endoscope was traditionallyinserted through the mouth, but at the request of Europe inparticular, the capability of being inserted through the nose hasbeen developed.

What are the advantages of it being inserted through the nose?

Inserting a 1cm diameter tube through the patient’s mouths causesa considerable amount of pain because it causes pharyngealreflexes. Inserting it through the nose makes the tube go down theesophagus through the nasal passage, causing less chance ofpharyngeal reflex as the tube does not touch the base of thetongue. There is practically no pain. Also, if inserted through themouth, anesthesia, which is used at some institutions, is notrequired, resulting in less burden on the body.

What benefit is there to a doctor?

It allows examination of the patient to be done gently. Besides that,it reduces the time required for giving general anesthesia, makingan anesthesiologist unnecessary. This also makes communicationwith the patient during treatment possible, leading to saferexaminations.In what occasion is the existing method (oral insertion type) used?

As the existing method allows for large-scale treatment, it isdesirable to use it depending on the purpose of the patient’s check-up and the symptoms of the affected area. If it is a periodic check-up, it is possible to use a nasal insertion approach for theexamination. If it turns out that large-scale treatment is necessary,the existing method can be used. We are hopeful that patients willhave less pain and suffering in the future.

For Upper Digestive Tract Organs

Ultra-fine FTS Transnasal EndoscopeUltra miniaturization was realized by reducing the size of parts asmuch as possible and utilizing an ultra high density mountingtechnology. As it is very small, it alleviates the pain and uneasinessfelt by patients and makes communication during treatmentpossible.

Yuuichi Torii, Design Section, Medical Equipment Division,FUJINON CORPORATION

“Ultra miniaturization was realized by making the parts as small aspossible and utilizing an ultra high-density mounting technology,retaining the existing type’s image quality and usability.”

Existing type (top):approx. 1cm in diameter

This product (bottom):approx. 5.9mm in diameter

� A Survey of 2,000 PatientsThose surveyed are the ones who had already experienced oralinsertion endoscope check-ups and had the nasal-insertion endoscopecheck-up for the first time.


Who are the main users of Printpix?

The most typical application is for overseas ID photos. With Printpix,unlike normal photo development prints and camera shop digitalprints, there are no negative films. From the aspects of personaldata protection and confidentiality, if it is used for ID photos, itoffers a special advantage.

What about the situation in Japan?

Domestic users are men in their 50’s and 60’s, and particularlyoutstanding are the customers who want high quality images.People in this age bracket desire to keep high quality memorablephotos. With digital data, there is a risk of losing it. Given the agegroup of its main users, Printpix is designed so that the product canstore data on a storage media without using a PC. Also, there arelarger color LED screens available.

You mentioned print quality, but what is the basic differencebetween Printpix and ink jet printing technology?This product uses Fujifilm’s proprietary technology called thePrintpix method. It is inkless and is a leading edge technology. Itsmain feature is that the paper itself creates full coloration usinglight and heat. Also, since it does not use ink, there is no wastesuch as ink ribbon and ink cartridges.

It produces environmentally friendly prints, doesn’t it? Are thereany other benefits to users?It gives a sense of security as there is always the same level imagequality output, which is another advantage. In the case of ink jetprinting, ink hardens if the product is not used for some time,disabling printout and/or creating coarseness and smear lines. Withthe Printpix method, since the paper itself creates coloration,printing is always stable.

Digital Photo Printers

Printpix CX-500Printpix is a printer for digital camera photos. It uses an inklessprinting method. It features design considerations especially fordigital camera users.

This magnetic tape is used in IBM’s recording media product, butwhat is it used for?It is an advanced information society in which we live, and thevolume of information that businesses deal with is increasing yearby year. This product is used for high-capacity data storage andperiodic backup. A high capacity of 300GB has been achieved withour NANO CUBIC technology. We believe it is a product thatcontributes positively to our advanced information society.

Who are the users of the product?

We mainly export the product overseas. The users are governmentinstitutes, banks, universities, insurance companies, broadcastingcompanies, and medical institutes.

How does it differ from common recording media?

This product is used mainly in the field where preservation ofinformation is essential. Therefore, very high reliability is required,and not only high capacity. Good data storage stability and datawriting stability are also important. For example, a change (error) inthe balance of a bank account would be inexcusable. No dataerrors are acceptable whatsoever. Also, the data must be storednearly permanently.

What are the environmental considerations of this product?

This product is a medium, so the existing size of the cartridgecannot be changed so easily. However, with capacity increase in thesame size cartridge, we can, for example, get by with one cartridgewhere we used to need two. Our future objective (by 2010) is todesign a cartridge that is the same size with a 10 terabyte capacity.

For IBM TotalStorage® Enterprise Tape Drive 3592

Magnetic tape (for High-Capacity Recording Media)

Fujifilm’s proprietary technology, NANO CUBIC technology, hasachieved high-density magnetic recording, which contributespositively to our advanced information society.

Atsusi Nagata (at right),Motoo Morikawa (at left)Engineering (Technical)Managers, Picture PrinterDevelopment Div., PhotoImaging & InformationProduct Div.

“Printpix obviously does notneed ink replacement. Also, ituses roll paper, so there is lesswaste.”

1. Yellow 2. Magenta 3. Cyan

Yellow coloration with low energy

Stabilize with ultraviolet exposure so coloration does not progress

Stabilize with ultraviolet exposure so coloration does not progress

Magenta coloration with medium energy

Cyan coloration with high energy

(g/GB)

03592

2018161412108642

Redu

ctio

n in

CO

2

emis

sion

s

Existing products

18

9

The product is designed from various perspectives such as shock tests to the cartridge,error tests under high temperature/high humidity and low temperature/low humidityconditions. An accelerated storage life test indicates there will not be any change inthe magnetic portion or in the binder for over a half century.

Kiyomi Ejiri (at left)Senior ResearchManager, R&D Center,Recording MediaProducts Division

Masatoshi Takahashi (atright)Research Manager, R&DCenter, RecordingMedia Products Division



� Mechanism of the Printpix Method

� Comparison between a Mini-DV (for General Use) and3592

Mini-DV

14GB

3592

300GB

100 times 20,000 times

Capacity

Error

Durability, a guaranteed number ofrepetitions

� Environmental Impact Comparison between theExisting Product and 3592

1/10million times1/10,000 times

Desire a nasal insertion check-up

Do not want to receive an oral insertion check-up again

95%

65%

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39

Our Contribution to the Establishment of aUniform Industry StandardFujifilm worked with the Japan Environmental ManagementAssociation for Industry (JEMAI) to create unified Type IIIEco-Label* standards for digital cameras. We obtained aType III Eco-Label, the first of its kind in the digital cameraworld in April 2003. Since then, we have obtained Type IIIEco-Labels for each new digital camera model. We createda publicly available web page displaying the data on 12camera models that were awarded a Type III Eco-Label (asof August 2004).

* The Type III Eco-Label Program is environmental labeling indicatingenvironmental information based on a Life Cycle Assessment (LCA)that Japan Environmental Management Association for Industry(JEMAI), a corporation, has operated since June 2002.

Life Cycle Assessment (LCA ) of A Digital Camera

We at Fujifilm established the Advanced Core TechnologyLaboratories and Equipment Production Engineering Centerin October 2003. This was in an effort to marshal thetechnological know-how and resources of our film-related

equipment so that we might bolster our digital technologiesdevelopment system. There are approximately 1,000product variations even in Fujifilm’s typical middle-scalefilm-related equipment. For each of those 1,000 there isapproximately 20,000 individual parts per unit. Fujifilm havemade development of such products possible by putting theindividual components in the equipment in perspective. Thisis accomplished by centralized control and utilization oflarge amounts of information about parts and materialscontaining chemical substances at our technologicalworkmanship center.

Establishment of Equipment ProductionEngineering Center

Many kinds of chemical substances are used in Fujifilm’sproducts, each of which play an important role. Fujifilm isdistinctly aware of green chemistry practices for handlingchemical substances during product development andmanufacture. In order to minimize the environmentalimpact, green chemistry uses or produces as few chemicalsubstances as possible that become waste when thematerials are designed, synthesized and implemented.

About Green Chemistry

2004 FUJIFILM Sustainability Report

Report

Environmental Forum was held in 2004 Intra-group environmental communication to listen to thedevelopers directly and to find out environmental activities in other divisions

Yoshida-Minami Factory • PrintingMaterials Research Laboratories

Environmental-friendly technology anddesign in thermal negative plate newspaperprinting

Design for Environment for Frontier, anew type of digital mini-laboratory

Advanced Core TechnologyLaboratories Equipment Researchand Development Center

Reduction in water consumption byconstructing and operating a waterintake control system

Fujinomiya Factory

A complete switch from heavy oilto utility gasOdawara Factory

Analysis of a digital camera by makinggood use of experience in the acquisitionof environmental labeling and a proposalin a packing form

Electronic ImageAdministration DivisionDesign Division

Improvement in our recycling rate bydeveloping reusable cushioning materialsand putting them to practical use

Ashigara Factory

To P35

To P33

To P63

To P63

Fujifilm held the 2004 Environmental Forum at its AshigaraFactory in Minamiashigara City, Kanagawa Prefecture. In thisforum, each department announced their results in thedevelopment of environment-friendly technology and Designfor Environment. Fujifilm group corporations also participatedin this forum. It offers group employees an opportunity tohear the developers’ views on their products and exchangeimportant pieces of internal information. This in turnacquaints them with the activities of other departments. Thiswas the third year the forum had been held. There were atotal of six oral presentations and 31 presentations on theposters advertising communication activities for the forumthis year. A Restriction of Use of Certain HazardousSubstances in Electrical and Electronic Equipment (RoHS) andwaste reduction section was set up at a specially built booth.The keynote speaker encouraged forum attendance to raiseeveryone’s awareness of the recent legal restrictions on theuse of chemical substances in their industry. The forum wasextremely informative and successful.

� The Oral Presentation at Environmental Forum 2004

http://www.fujifilm.co.jp/corporate/environment/products/selection003/index.html

UseExploration of Raw Material Production Distribution 3R Disposal


Design for Environment


Fujifilm uses a Life Cycle Assessment (LCA) to makequantitative and objective evaluations of the impact ourproducts place on the environment. This system ofevaluation brought about the establishment of a newstructure where no Fujifilm product is produced before theenvironmental quality is deliberated and approved at allstages of product planning, research and development,production and sales, shipment, use and disposal.

The Workings of Design for Environmentat Fujifilm

In April of 2002, Fujifilm started the adoption of the “Basic Regulations for Design That Takes theEnvironment into Consideration”. Since April of 2003 all Fujifilm Group companies have worked inaccordance with these Basic Regulations. Each department has independently conformed to the BasicRegulations to bring all new products into accordance with the company-wide standard of usingDesign for Environment.

The Design for Environment Shall Be Evaluatedaccording to Three StandardsIn the research and development stage, we evaluate theDesign for Environment according to three standards: theenvironmental quality, LCA and green procurement. Fujifilmhas adopted the “Basic Regulations for Design That Takesthe Environment into Consideration”, the LCAimplementation rules, the Suppliers Green Standard and theProcurement Green Standard to ensure that theseevaluations will be made according to a uniform standard.

� The Workings of Design for Environment

Merchandizing Planning Stage

Marketing Divisions and Product Planning

Divisions

Research & Development

Divisions

Product Type Decision Maker

Manufacturing Divisions

Research & Development

Stage

Production Type Consideration

Stage

Production and Production Condition

Changes Stage

UseExploration of Raw Material Production Distribution 3R Disposal

Setting A Target for Environmental Quality

Research & Development according to the Targets, Environmental Quality Evaluation/LCA

Consideration Production

Environment Quality Information Sheet

LCA Sheet

Environment Quality Assessment Sheet

PlanEnvironment Quality Targeting Sheet

Environment Quality Information Sheet

LCASheet

Preparation Preparation Maintenance and Management

Safety

Green Procurement

3R

Providing Customers with Environmental Information

Shipment • Packing

Compliance

Projection and Reduction in Consumption of Chemical Substances That Have an Adverse Effect on the Environment

Conforming to the Green Procurement Standard (Guarantee of Environmental Quality in Raw Materials•Parts)

Reduction in the use of Hazardous Materials in Packing

Ease of Collection•Transportation•Retrieval, Efficiency of Shipment, Repeated Use of A Wrapped Package, Bale and Cargo Pack

Compliance with Domestic and International Environment-related Laws, Handling Laws and Agreements concerning The Business World

Life Cycle Assessment (LCA) Assessment of The Amount of CO2, Chemical Substances That Have an Adverse Effect on the Environment, And Waste Materials In A Total Life Cycle

Long-term Use, Repair and Replacement of PartsUtilization of Recycled ResourcesReduction in Consumption of Natural Resources and Energy in Producing and Using Our Products

Environmental Labeling, Indication and Nomenclature of Raw Materials Information on Recycle and Disposal of Raw Materials

Safety in Disposal of Used Products Safety of Waste Emission and Waste Disposal

Basic Regulations for Design That Takes the Environment into Consideration

LCA Implementation Rules

Elements of Design for Environment

Merchandizing Flow

Environmental Quality Information Sheet:Worksheet for Environmental Information on Products Containing Chemical Substance and Recycled Materials


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Fujifilm attaches great importance to the concept that weuse or produce as few chemical substances as possible thatwill become waste in the product development andsubstance handling processes. Fujifilm is minimizing theirenvironmental impact to complete arrangements for theglobal control system in l ine with Fujif i lm Groupcorporations’ Green Policy. This is so that we can improveour control of the chemical substances and minimize riskfrom the four following viewpoints:(1) Chemical substance management in line with ISO

directives (2) Chemical substance management based on the risk

factor consideration(3) Responding to more diverse and strict legal regulations

regarding environmental chemical substance safetye.g. The order of the European Restriction of Use of

Certain Hazardous Substances in Electrical andElectronic Equipment statement, the EuropeanCommission’s draft proposal for a Regulation on theRegistration, Evaluation, Authorization andRestrictions of Chemicals, and revised law withregard to Chemical Substances.

(4) How to control chemical substances of public concerne.g. Endocrine disrupting chemicals (the so-called

environmental hormones), a fluorine compound.

Our Approach in Chemical SubstanceManagement

Chemical Substance Management


Basic Provisions for the Environmental andSafety Management of Chemical SubstancesFujif i lm is classifying the chemical substances andcontrolling them in line with hazard, legal restrictions and acontrol policy that is in accordance with the Basic Provisionsfor the Environmental and Safety Management of ChemicalSubstances.

Information ManagementFujifilm maintains three databases: a legal restrictionsdatabase, an environmental safety of chemical substancesdatabase and an FMSDS database (Refer to the diagram onthe right.).The three databases are maintained as necessary. Anychange in one database is reflected in the other databasesautomatically. All the databases are made available to theassociated users.

Chemical Substance Management

Since its establishment, Fujifilm has always targeted harmony between human beings and nature withmaintaining the safety of chemical substances under the idea of "Environmental consideration and conservation asthe basis of company management." Comprehensive risk management is applied in all processes (the product’sentire life cycle); from the employment of chemical substances to their disposal at all Fujfilm Group companies, bycondensing all of the technical know-how that we have acquired over the years.

� Classification Table in 5 Classifications Ranging fromProhibition to General Control

� Standard for Classification of Chemical Substances

� A scope of applicable chemical substances

� A Figure of Chemical Substance Management

C0

Chemical substances bythemselves or theircompounds(about 5,000 kinds ofchemical substances)

1. The chemical substances prohibited by law.

2. The chemical substances that we at Fujifilm do not handle because of our policy.

1) The raw chemical materials of the products soldand offered by Fujifilm Group corporations

2) Chemical products3) Solvents and raw material intermediates used for

the production of the raw chemical substance4) Chemical substances used for the running,

operation and maintenance of the productionfacilities (for processing and testing a product,for treating wastewater and exhaust gas, andfor ion-exchanged water)

5) Research & Development and chemicalsubstances for inspection (more than 10kg peryear)

Inapplicable A. Chemical substances included in machinery andequipment, and their parts

B. Chemical substances included in packing,crating material and functional materials such asactivated carbon textile

C. Materials contained in the productionequipment having a low exposure risk.

Chemical materials in A and B shall receive specialmanagement such as reduction or discontinuationof lead, mercury, cadmium, hexavalent chromium,brominated flame retardants (BFR), PBB, PBDE andpolyvinyl.

Applicable scope Fujifilm Group internal organization handling theapplicable chemical substances

C11. The chemical substances of which we relinquish the use, or reduce in

consumption and waste because of our policy (e.g. formalin, dichloromethane,etc.)

C2

1. The chemical substances of which law requires us to notify the authorities concerned or of whichlaw requires us to obtain the approval for use from the authorities.

2. The chemical substances that act harmfully on the human body and pose great and special hazard(carcinogenic or explosive.)

3. The chemical substances that we handle restrictively because of our policy (a lead compound,methyl cellosolve, etc.)

C31. The chemical substances that come under special legal restrictions.

2. The chemical substances that pose special hazard ( LD50≦50mg/kg.)

C4

S

Classification of ChemicalSubstances

Management AgendaC0 C1 C2 C3 C4

○ - - - -

- ○ - - -

- ○ ○ - -

- ○ ○ ○ -

- ○ ○ ○ ○

- Classification of Chemical Substances: S

Prohibition Planning and Execution forDiscontinuation or Reduction inConsumption or Waste of ChemicalSubstances

Airtight Containment or LimitedControl

Control Based on a RiskAssessment

General Control(Control in Accordance with Law andFMSDS)

Commencement of research pertainingto discovering alternatives andreducing use, emission, exposure etc.as well as protective measure such asprotective gears.

Chemical Substances Classified under a Classification Other Than C0 - C3

Endocrine-disrupting Chemicals, Fluorine Compounds, PFOS, etc.

Raw Materials

Information Obtainedfrom Outside Fujifilm

Fujifilm’sControl Policy

Fujifilm Material Safety Test Center

Safety TestResearch & Development,

Production

Reference

Registration

Factories Shipment Customers

FMSDS Database

All of Environmental Safety Information About 5,000 Kinds of Chemical Substances That We at Fujifilm Develop, Produce and Use

Compilance Information on Domestic and International Legal Restrictions That May Be Imposed on More Than 70,000Kinds of Chemical Substances

In-house MSDS Aimed at Labor Safety, and Environmental and Safety Management for Fujifilm Employees

Legal RestrictionsDatabase

AISMSDS

Yellow card

Products

Basic Provisions for Environmental and Safety Management of Chemical Substances

Information on Harmfulness to the Human Body

Classification and Control of Chemical Substances(Classified into 5 Ranks)

Chemical And Environmental Safety Information Database

An Assessment of Raw Materials SafetyFujifilm tests the safety of the chemical substances at theraw materials purchasing stage at the Fujifilm MaterialSafety Test Center. We are assessing the safety of about5,000 chemical substances now in use from various anglesof health hazards to the human body, adverse effect on theecosystem and explosiveness. The assessment results willclassify the substances into five ranks ranging fromprohibition to general control.Even if there is no clear information about the toxicity of thechemical substances tested, they are classified as a speciallycontrolled substance. That classification puts the substanceunder close and constant watch for any risk or legalrestriction imposed on their use. Basic research is also beingdone towards locating safe substituting substances.

Exploration of Raw Material Production


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Material Purchase and Green Procurement

Fujifilm Group's Product Creation

Basic ConceptAt Fujifilm, decisions to purchase goods and services for ourcorporate activities are made based on the concepts listedbelow:

One of the basic strategies stated in the medium-termmanagement plan “VISION75” is a thorough overalladministrative structural reform. This strategy is made up ofseveral plans, such as reorganization of the manufacturingsystem and reformation of the domestic sales system andpurchase policy. We strive to accomplish these goals with aglobal system. Holding events such as the Procurement PlanMeeting with members that include the overseas groupcompanies is a major part of our effort.

Procurement Procedures

When Fujifilm receives a transaction proposal from a potentialbusiness partner, the first step is to interview the candidate. Aformal contract will be awarded if both sides can agree on allpreset conditions. Starting in 2003, we introduced “SPIRITS” – an electroniccommercial purchase transaction system – for smoother andmore efficient transactions. Please visit the Fujifilm website formore information.

Educating the BuyersIn order to foster improved relationships with our businesspartners, Fujifilm buyers participate in various internal andexternal seminars. Newly appointed buyers attend seminarsspecifically so the new buyers can learn the basic pieces ofknowledge, legislation and business practices. In addition tothe seminars for the newly-assigned buyers, newlyappointed managers must also attend practical seminars forrisk management in purchasing to expand their knowledgeon legal risks.

Participation in the Council of GreenProcurement Survey StandardizationFormerly, each client company would individually carry outsurveillance of suppliers' green procurement standards. Thiscaused an occasional necessity to survey chemicalsubstances thousands at a time. The Council of GreenProcurement Survey Standardization* narrowed down thechemical substances to be surveyed to 29 selections, inorder to more efficiently obtain accurate information. TheCouncil also created a survey form to be used by allmembers and started a trial operation in 2002. As a coremember of the Council, Fujifilm played an important role inselecting the 29 chemical substances to be surveyed and inthe creation of the survey form. The Council also organizes presentations and publishesbooklets as promotional activities for green procurement.Participating members of Fujif i lm helped with theimplementation of these activities.* Established by several volunteering corporations in 2001. Created for the

purpose of unifying surveying standards within the industry instead ofhaving each company survey chemical substances contained in parts andraw materials based on its own unique standards. There currently are about70 companies volunteering their services.

Green Procurement Seminarsfor SuppliersFujifilm hosts Green ProcurementSeminars for its supplying corporations,and requests their cooperation in theSuppliers Green Standard and theProcurement Green Standard. We alsohost internal briefing sessions to shareour approach to Green Procurement,in preparation for the supplierseminars.March 2003 – Green Procurement Seminar for Fujifilm Suppliers (participated by 200 corporations)

November 2003 – Green Procurement Seminar for FUJINON CORPORATIONSuppliers (participated by 156 corporations)

October 2004 – Fujifilm Green Procurement Seminar (participated by 106corporations)

Implementing the SurveyWe employ surveys to confirm the supplying corporationsand actual procurements are up to our standards.Frequency of the survey is determined based on themagnitude of supposed risk. The main factors in thesesurveys are the chemical substances contained in products.We utilize apparatus such as the fluorescent X-ray machineto measure the content of substances that wil l beprohibited by the RoHS (Restriction of Use of CertainHazardous Substances in Electrical and ElectronicEquipment) statement. These substances include cadmium,lead and hexavalent chromium. Their inclusion in procuredparts of appliances to be shipped to the EU will beprohibited starting July 1st, 2006.If the survey result does not meet the standard, we notifythe supplier of our standards again and requestamelioration. We will reexamine the contract with thatsupplier if the survey result after the notification shows noimprovement. Fujifilm has recently added a section on theProcurement Green Standard to the existing specifications,used in consensual val idation of the procurementspecifications with the suppliers.

For Fair Purchase TransactionsFujifilm established 10 purchase policy items to promote fairpurchase transactions. Here are four of the main policyitems:

1. Legitimacy of the Procurement StandardsWe purchase superior goods and services from the mostcompetitive suppliers. These suppliers are selected by consideringthe legitimacy and clarity of their standards, such as: the quality,price, stability of supplies and corporate reliability. Decisions thatconcern purchase transactions are made by the purchase division,which was created when it was detached from another division.

2. Openness and FairnessPurchase opportunities are given to all business partners, domesticand overseas. This means that we always consider purchasingfrom untried business partners as well as those previouslyestablished.

3. Legal Compliance, Resource Preservation andEnvironmental Conservation

We strive to fulfill the role of a good citizen who voluntarilycontributes to the society. Fujifilm's purchasing activities complywith all related legislation and we are always conscious ofresource preservation and environmental conservation.

1. Fujifilm selects new business partners and decides on eachindividual purchase transaction based on the legitimacy andclarity of the suppliers' standards, such as: the quality, price,corporate reliability, capability to provide steady supplies andenvironmental conservation.

2. As a general rule, Fujifilm negotiates estimates with severalsuppliers in order to ensure fairness in competition and supplierselection.

3. Fujifilm makes a concerted effort to maintain proper purchaseamounts from each supplier, in order to spread purchasesamong as many business partners as possible. This way, we canprevent Fujifilm from over relying on certain business partners,and vice versa.

4. Fujifilm reexamines continuous transactions periodically, andwelcomes the opportunity to add new suppliers to our list.

Material Purchase

As a member of the global community, Fujifilm always strives to provide our customers with the best products and services. Forthis reason, the purchasing of goods and services necessary to our business strictly follows clearly-defined standards. Extraconsideration is given to legal compliance and environmental conservation when establishing effective relationships with ourbusiness partners. Please take a look at the information on Material Purchasing and Green Procurement on the Fujifilm website:

http://www.fujifilm.co.jp/corporate/procurement/index.html

Environmental Considerations in Merchandise ProcurementAt Fujifilm, parts and materials procurement is also a screeningcriterion for Design for Environment. We strive to achievehigher environmental quality by establishing a Suppliers GreenStandard and a Procurement Green Standard.

Green Procurement

Suppliers Green Standard1. To meet the Green Standard for suppliers, they must either:

– Have already acquired or plan to acquire within three years the ISO14001 certification.

– Have already acquired or plan to acquire within a year the Eco-Stagecertification.

– Have already acquired or plan to acquire within a year the Eco-Action 21 certification.

2. If number 1 does not apply, suppliers then must meet all thefollowing conditions:– They must comply with environmental regulations.– They must not handle certain chemical substances specified by Fujifilm.– They must meet more than 70% of the twelve requirements that

Fujifilm has established for environmental conservation andchemical substance management (*).

Suppliers provide raw materials, parts, packing materials, etc.* (1) Corporate philosophy and policy toward environmental conservation; (2)

Environmental conservation objectives; (3) Enforcement plan; (4) Promotionorganization of environmental conservation; (5) Reexamining status of legalcompliance; (6) Air pollution control; (7) Water pollution control; (8) Chemicalmanagement system; (9) Waste control; (10) Energy conservation; (11)Emergency response measures; (12) Education and training

Procurement Green StandardTo meet the Green Standard for procurement:1. Procured items must not include any prohibited chemical

substances*1.2. Fujifilm must control and manage the content of chemical

substances to be reduced*2 and managed chemical substancecontent allowance*3 in each procurement.

Procurement includes raw materials, parts, packing materials, etc.*1 Chemical substances whose production, use and importation are

prohibited by law.*2 Chemical substances that will be reduced according to the future

climate of legal control and Fujifilm's policy.*3 Chemical substances whose content control was deemed necessary

by Fujif i lm in Basic Regulations for Design That Takes theEnvironment into Consideration.

Request for Green ProcurementSurvey Distributed to theBusiness Partners

Supporting the Eco-Stage

Fujifilm advises its business partnersto acquire the ISO14001 certification.In reality however, it is difficult forsmall- to mid-sized companies toacquire ISO certifications. For thisreason, a Stage 1 Certification of the Eco-Stage* is alsorecognized as fulfilling the requirement to meet theSuppliers Green Standard. Fujifilm plays a key role in thisprogram by sending a lecturer to the Eco-Stage promotionalseminars, developing instructional manuals to raise the levelof evaluators, supporting their training programs, and so on.

* Eco-Stage is an environmental management evaluation and support systempromoted by the Eco-Stage Institute. The institute was established incooperation with numerous corporations, non-profit organizations anduniversities, including Fujifilm and Fuji Xerox. The system allows small- tomid-sized companies, for whom acquisition of the ISO certification isdifficult, to start working from a more basic level. Eco-Stage has fiveassessment levels. By using this model, supplying corporations can establishan environmental management system. Through implementation andimprovement, they can raise their environmental consideration level andachieve sustainable development of the corporate management.

Accomplishing the Green Procurement RatioObjective

Fujifilm promotes Green Procurement of office suppliesthrough the Green Procurement Promotion Committee andimplements Green Procurement in the five categories*established by the Fujifilm Group Green Policy. We haveaccomplished our objective of 100% Green Procurementratio** for year 2003.

* The five established categories are: (1) Printing Paper and Other OfficePaper; (2) Copy Machines, Printers and Facsimiles; (3) Personal Computers;(4) Office and Stationery Supplies; (5) General Merchandise.

** Green Procurement ratio: Ratio of the Green Procurement to the totalprocurement amount in the target category.

Green Procurement

http://www.fujifilm.co.jp/corporate/procurement/procedures/index.html

2004 FUJIFILM Sustainability Report 45FUJIFILM Sustainability Report 200444 FUJIFILM Sustainability Report 2004

Fujicolor QuickSnap is a product that epitomizes our conceptof cyclic manufacturing. Fujifilm has been reusing parts ofQuickSnap cameras since the product launch in 1986. A full-fledged reuse-and-recycle procedure was launched in 1990when the Fujicolor QuickSnap Recycling Center opened itsdoors. In 1998, the world's first Fujicolor QuickSnapAutomated Cyclic Manufacturing Factory began operatingwith the objective of recycling and using resources moreeffectively. The factory built a production system that differsfrom traditional manufacturing in that used products arereborn through recovery, disassembly, inspection andreproduction. Fujifilm will continue with our contributions

towards making the cyclical society a reality by applying theconcept of cyclic manufacturing with the experience inenvironmental technology we have gained since ourfoundation.

QuickSnap: A Non-Disposable Camera

Cyclic Manufacturing and Fujicolor QuickSnap


Sorting DisassemblyRecovered Fujicolor QuickSnap are sorted by model.

Body is disassembled into separate parts, and these parts are then sorted into “reusables” and “recyclables.”

Inspection Process Each part goes through a rigorous quality check, and is repaired if necessary.

ProductionPackagingProducts are boxed after films are loaded and packaged.

Quality AssuranceProducts go through a vibration test, light leak check, photographing test, and so on.

Retail Shop

Digital Minilab

Customer

Products are classified by their brand. A distinction of whether they are reusable or not and recyclable or not is made as well. Because of tape or glue

residue, altered products cannot be easily recycled. They are handed over to external recycling service contractors, who will crush and incinerate them.

Altered Products That Are Difficult to Recycle

Products are sorted onto the dedicated brand-specific lines. Lens

Battery

Flash

If parts pass the inspection for reusability, they will be repaired and reused.

Mechanical Unit Inspection Lens Inspection Flash Inspection

Cleaning off dirt, checking for scratches, smudges and proper focus using a laser.

Only the units that pass the stringent 30 point inspection are reused.

Regenerating Resin

Recycled parts are returned to their raw material form.

Molding Resin

Classification

Using special drums, products are organized into one straight line. The process is repeated until the right positioning is achieved.

Alignment

Sorting

Separating Paper and Removing Labels

Resin is reformed and recycled as front or back covers.

Fujicolor QuickSnap is reassembled using the parts that pass inspection, as well as the parts reborn through recycling.

Cyclic Manufacturing FactoryThis is where the cyclic

manufacturing starts.

Checking for remaining battery.

Delivery

Recovery Front Cover

Back Cover

Switch Unit

Winder Knob

UnitReuse

Recycle

This space is specifically allocated because writing names and dates on resinous parts of the unit with a marker could very easily cause the product to be non-recyclable. When you take a look at the recovered Fujicolor QuickSnap products, you can see that many people make use of this “name field.”

Did you know that there is a space to write owner information on the back of each unit?

Through the internal plastic recycling system, products that did not pass the inspection will be reused as molding materials for covers and other parts of the Fujicolor QuickSnap.

Defective Products

Paper cartons and labels are automatically removed. Labels are then sent to external recycling services to be pulverized and reused as reducing agent in the blast furnace at JFE.

� Cyclic Manufacturing Images

Most of the parts from the Fujicolor QuickSnap are reusableand recyclable. However, its recovery rate remains low, ataround 60%. This is because third party vendors acquiremany of the used Fujicolor QuickSnaps and reload the filmson their own. Such intervention often damages parts in theproduct, making it non-reusable even if it comes back to thecyclical factory next time. While facing such challenges, weare actively implementing measures to raise the recoveryrate to 100%. We respond to civil action brought ontoimitation products and various promotional activities aretaking place. Fujifilm will continue working to achieve theideal form of cyclic manufacturing.

Challenges with Fujicolor QuickSnap

At Fujicolor QuickSnap Cyclic Manufacturing Factory, weare accepting requests for group tours of the factory. Insupport of environmental education we openly welcomechildren to tour. We make ourfaci l ity accessible as anenvironmental learning lessonfor elementary school students,as well as a senior field trip forjunior high school students.Please feel free to inquire for more details.The original Fujicolor QuickSnap, with the

marketing slogan: “Take a picture anywhere,anytime, in a snap.”

Factory Tours

Ashigara Factory, Tour Reception at the Corporate Secretarial DepartmentPhone: 0465-73-6040

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Fujifilm promotes various activities in order to form a socioeconomic system with recycling at its center.Today, society looks forward to the adoption of sustainability, rather than the current state ofabundant disposability. Especially because now is an age of convenience and comfort, Fujifilm mustfurther their efforts to establish a structure of cyclic manufacturing while simultaneously tacklingproblems such as environmental destruction and resource depletion.


Preservation of Raw Materials


In the year 2003, the consumption of silver and gelatin inthe manufacturing process has decreased while usage ofaluminum increased, due to a sales increase in printingproducts.

Transition of Natural ResourcesConsumption

To utilize the limited resources effectively and with as little waste as possible, Fujifilm is making effortsto reduce consumption of our natural resources. We will also continue our research into possiblesubstitutions for depletable resources such as silver and aluminum.

FY 2003FY 2002Six Fujifilm domestic workplaceFY 2003Consolidated(tons/year)

0Silver Gelatin PET TAC Aluminum

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000870 806

3,600

52,93551,200

4,769991

2,823

51,590

15,300

48,30052,131

81,041

19,900 20,951

� Consumption of the Key Materials

20-Year Reduction of Silver ConsumptionPhotographic films contain silver.Fujifilm makes determined efforts to conserve and recycledepletable resources such as silver. In the past 20 yearssilver content in color negatives has been reduced by morethan half*. In color paper is has been reduced down to athird*.Photographic films are made when silver nitrate andhalogen compound react in a gelatin solution. The qualityof photographs can be dramatically changed by thecomponent makeup of the film, such as: the type ofhalogen compound used; the mixing method, temperature,gelatin type of reaction solution and minute quantities ofadditives. By specifying these ratios appropriately, Fujifilmwill keep producing photo films of superior quality whilecontinuing to reduce the consumption of silver.

* Usage Per Unit Area

Container and Package DatabaseWith the Container and Package Database that startedoperating in 2002, keeping track of materials used by asingle product or a product group has become much easier.Thanks to this system, the existing tracking method isundergoing a revision that was started*1 in 2003. Fujifilmwill establish new objectives towards reducing the containerand package weights for marketed products, based on thenumbers we collect from the new tracking method. In 2003, we reduced the use of paper containers byswitching the packaging of color films from small paperboxes to plastic bags. Fujifilm's development divisions arealso conducting their own research on materialconservation. They are planning to develop a system totabulate data in the Container and Package Database in realtime. These activities and up to date information will help usto think of new reduction measures even faster than before.

Conserving Resources in Container andPackaging Materials

(tons/year)

0Plastic

Film SheetMolded Plastic

Metals Paper Containers

Paper Cardboard

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

FY 2002 FY 2001 Six Fujifilm Domestic Workplace FY 2003

916 947 906

5,8025,316

5,093

3,512

5,699

1,614

5,1384,565

2,8162,329 2,012

8,270

7,7207,7207,720

8,316

1,783

� Transition of Containers and Packaging MaterialsEmission*2

* Rounded off to unit digit

*1 At the time of tally in October 2003, there was some data on the packaging materialsnot yet reflected in the database. We have recalculated the figure by adding this newdata and multiplying by the sales quantity of the product. For this reason, this year'snumbers are different from ones listed in the Sustainability Reports 2002 and 2003.

*2 Amount of Containers and Packages for Marketed Products

Exploration of Raw Material Distribution 3R Disposal


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Product Safety Management


Since the enforcement of the Product Liability (PL) Law in1995, we have made numerous efforts to achieve productsafety. Through that process we established the BasicProduct Safety Policy priority targets (see below) andchanged the response structure from an individual-organization level to a whole-company one.

Priority Targets1. Complying with statutes and regulations for product

safety2. Promoting product safety measures at every stage of

a product's life-cycle: development, production,sales, use, servicing and disposal

3. Notifying the customers of safety information onproduct use and disposal

4. Maintaining the emergency response system5. Establishing and continuously building up the

approach to enhanced product safety6. Improving employee education and training on

product safety

Constituting the Basic Product SafetyPolicy

The Product Liability Committee was established in April1995 to formulate a company-wide policy on product safetymanagement and to discuss promotion activities.

Promotion SystemFujifilm Group trains each division on product safetyseparately. It conducts further training sessions for specificdivisions when internal product safety monitoring deems itis necessary. We also educate new employees andmanagers through introductory training designedspecifically for them. Through these activities, we aim topermeate our product safety approach throughout thecorporation and establish sustainable operations.

Product Safety Training

As the following diagram indicates, there are three productsafety systems at Fujifilm Group. Each system functions toassure product safety.

Product Safety System

At Fujifilm Group, we believe that it is our social duty to send safe products out into the world. That iswhy we implement safety measures at every stage (development, production, sales, use, servicing anddisposal) of every product.

Associated Office Managers and Sales Division Manager

Committee ChairmanExecutive Officers in charge of CSR and legal affairs

PL Committee

Office

CSR Division

General Manager of Ecology and Quality Management

Monitoring

Monitoring

Product Safety

Verification System

PL-Related Information Processing

System

We assess the safety of experimental products based on the product safety regulations.

Collecting and analyzing information such as customer complaints on our products leads to new product safety measures and further promotes safety.

Internal Product Safety

Monitoring System

Use

Product Safety Training at Fujifilm Group


MSDS*1 (Material Safety Data Sheet) is a means of providinginformation designed to prevent accidents caused bychemical products, and to maintain health, safety, andecology in handling chemical substances. Since July 1997, Fujifilm has been providing web site basedinformation (http://www.fujifilm.co.jp/msds) through MSDSsfor photography development chemicals. From 2004onward, the MSDS was fully revised as per the generationguidelines of JIS (Japanese Industrial Standards) and theJapan Chemical Industry Association to improve readabilityand to enhance details. If any chemical substances referredto by the PRTR law (Pollutant Release and Transfer RegisterLaw) and/or the Industrial Safety and Health Law are used, itis noted accordingly.As of June 2004, over 1,000 MSDSs had been registered.The MSDSs are supplied by our marketing divisions tobusiness partners, such as equipment retailers and digitalminilabs in the form of printed materials and / or CD-ROMs.

MSDS and AIS

In view of chemical substance management and legal compliance, Fujifilm makes it a strict rule todistribute MSDS and AIS to the customers of its chemical products and materials. Also, in order toimprove the environmental quality of our products, Fujifilm promotes active use of environmentallabeling and full disclosure of information.

Digital CamerasFujifilm worked with Japan Environmental ManagementAssociation for Industry (JEMAI) at the early stage of theproject to create the Type III Eco-Label*4 in an effort tosupport standardization. In April 2003, the FinePix F410,featuring the new generation Super CCD HoneycomTM · HR ,was granted a Type III Eco-Label for the first time in theindustry. Since then, Fujifilm has obtained Type III Eco-Labelson its products every time JEMAI’s assessment conferencewas held. As of August 2004 we had a total of 12 differentmodels that had been granted labels which are listed on theweb.

MSDS

AIS

Fujicolor QuickSnapIn September 2002, five models of Fujiicolor QuickSnapwere granted the Type III Eco-Label. In March 2003,Fujicolor QuickSnap Night & Day was given the label, and inMarch 2004, Fujicolor QuickSnap Extra Flash 27/39 wasapproved for the label.In 2001, this Eco Mark label was approved for FujicolorQuickSnap Super Eye 800 series, the first in single-usecameras whose plastic parts are made using recycledmaterials. The main reason for winning the Eco Mark isbecause over 40% recycled plastic was utilized in themanufacture of the disposable Fujicolor QuickSnap. Thisproduct is now considered to be environmentally friendly.

Fujifilm Instax Mini 10 PrinterThe Fujifilm Instax Mini Printer is a palm-size printer usingFujifilm Instax Mini 10 film, developed to accommodate theprinting of images immediately after taking them withcameras built into cell phones. Design for the environmentsuch as energy savings and size reduction was arequirement for development of this printer. It obtained theType III Eco-Label in March 2004 the first time for an instantphoto printer.

Fujifilm strives to achieve higher ”environmental quality” forall products. To have the concept of environmental qualityunderstood and communicated accurately to consumers,Fujif i lm promotes information disclosure usingenvironmental labeling*3

Environmental Labeling Activityhttp://www.fujifilm.co.jp/corporate/environment/products/selection003/index.htmlhttp://www.fujifilm.co.jp/msds

Environmental Information on Products


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*1 MSDS (Material Safety Data Sheet): The description sheet containsinformation needed to handle chemical products safely and to takepreventive measures against accidents relating to them. This sheet isto be distributed together with the product by the supplier to thebusiness distributing and / or using the product.

*2 AIS (Article Information Sheet): While products relating to developersare generally called non-article products, some products such as photofilm are called articles. The supplier provides an AIS that providesinformation required to handle an article safely. The informationincludes the product name, the manufacture’s name, safe handlingprocedures as well as environmental and safety information includingpossible danger and hazards. This information and the product areboth given to all handling operators.

Glossary

*3 Environmental labeling: Environmental labeling accuratelycommunicates to consumers the environmental information about aproduct along with packaging labels, technical reports andadvertisements for a products. ISO (International StandardsOrganization) defines three different types of standards forenvironmental labeling.

Type I: Third-party certification (ISO14024)A third-party certification organization defines product classificationand evaluation criteria, and provides certification. In Japan, Eco Markis a third-party certification where an outside organization performsproduct examination at the request of business applicants. Theirpermission must be granted to use the mark since it may only beattached to certified products. The idea is that this process supportsthe product choice of consumers from the standpoint ofenvironmental conservation.

Type II: Self-declaration (ISO14021)A company gains public recognition by making consumers aware ofthe environmental quality of its products. Judgment by a third-party isnot required.

Type III: Environmental information disclosure (ISO TR14025)A company indicates the environmental impact of a product in theform of quantitative data in accordance with the life cycle assessment(LCA) method. This information is made public on the Internet, whichwill helps consumers to promote the Green Procurement Program. Italso motivates participating businesses to decrease theirenvironmental impact since they will have a correct understanding ofthe quantitative data provided by the LCA.

*4 Type III Eco-Label falls under the Type III category.

Glossary

In April 2003, Fujifilm enacted rules for filing an ArticleInformation Sheet (AIS*2) which describes the safetyinformation for an article product. Each marketing divisionprovides customers with an AIS for article product such astangible product film and photographic paper that do notrequire an MSDS. In 2004, environmental and safetyinformation about material products such as printing platematerials and medical products were listed on the web site.In the future, an increased number of product informationdisclosures will be available. AIS was created through theAIS Generation Program, and is jointly maintained andcontrolled by each of Fujifilm Group companies overseas.Currently, there are over 50 AISs with Japanese, Europeanand American versions.

One example of MSDS

Prepress developer ND-1 (developer for Integra system: IN108403)

MSDS · AIS top page

FinePix F610 (registered in March 2004) FinePix F710 (registered in May 2004)

Fujifilm Instax Mini Printer NP-1 (registered in May 2004)

Fujicolor QuickSnap 800 Premium (registered in September 2002)


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Domestically, seven service centers across Japan providerepair service on digital and film cameras. At the request ofour customers, we pioneered Quick Repair Service*2 aheadof all competitors for better service for customers.

Service Center

In case of product malfunction we first obtain a detailedstatus report from the customer and check the particularproduct. We then make a complete analysis of it at ourtechnical division, and produce a candid and satisfactoryresponse.*3

Communication Activities

Response to Inquiries and Complaints

Enhancement of customer self help solution environment

Enhancement of a response ready environment

· Introduction of HP Navigation System*4

· An expanded Q&A on the website· A further expanded Q&A on the website

· Update of response knowledgeContinued upgrading of New QuickSearch system*5

· Expanded utilities of New QuickSearch systemQuicker response to inquiries to the Fujifilm Group

· Enhanced response to e-mail

Improved customer service quality

· Education for the customer service divisions of the Fujifilm Group· Expansion of outside evaluation by customer satisfaction survey

Checking of response status and improvement ofresponse quality

Integration of customer information from each support and service division

· Quicker feedback by database integration· Text mining· Data miningQuicker response by the auto analysis system

· Quick support to Fujifilm and the Fujifilm Group, and accuratefeedback to the top-level management and to division leaders

· Improved real time response is being planned by linkingdomestic and overseas information

Implementation Items and Plans

• We have already complied with JIS z 9920 (complaintsresponses) and an internal audit has been conducted.Currently, preparations are being made to accommodatecomplaints responses that are standardized by ISO10002 inJuly 2004.

Dealing with Customer Oriented Management Standard

• Information such as the valued opinions of our customers ismanaged using strict control under the personal dataprotection policy.

Protection of Personal Data

• Fujifilm received an award for its “customer-orientedexcellence” for the year 2000 from the Minister ofInternational Trade and Industry (currently the Minister ofEconomy, Trade and Industry). This was a result of dailyactivities that addressed enhanced customer satisfaction. FujiXerox Co., Ltd., an affiliated company was also given thesame award in 1997. The domestic and overseas FujifilmGroup companies promote activities to raise the customersatisfaction level throughout the system.

• We provide guidance and training to the Fujifilm group oncustomer satisfaction and generate customer servicemanuals to help raise their awareness about the need forcustomer satisfaction.

From Customer-Oriented to CSR Promotional Activities

*2 Quick Repair Service

A package service for digital camera includes Pick-up ➝ Shipping &

Handling ➝ Repair ➝ Delivery. The price is 900 yen per unit. We

receive repair applications via telephone, FAX or the Internet. Repairs

are completed within three days.

*3 Response to Inquiries And Complaints

Most of the complaints are because customers misunderstand how

to use the product or used it incorrectly. For example, the most

typical misunderstanding is a complaint that Fujicolor QuickSnap’s

indicator shows 0 although only a few shots have been taken. The

film from the returned Fujicolor QuickSnap is developed and it

turned out all the film had been used. An investigation report, along

with developed film and prints are returned to the customer.

*4 Introduction of HP Navigation SystemsFujifilm’s website information database has become so enormousthat it causes customer inconveniences since target areas are notreadily accessible. To deal with this situation we introduced the HPnavigation systems in April 2004 for the first time in a Japanesebusiness. It has enabled customers to search information quickly,which has significantly raised the rate at which solutions are foundon the website.

*5 Continued Upgrades Are Underway on New QuickSearch Systems.New QuickSearch system is the database of the Fujifilm products thatincludes technical information, service data, and sales information. Itis a helpful tool to respond quickly to customer inquiries.

• We also strive to obtain qualified consumer advisors who arecertified by Minister of Economy, Trade and Industry. Thereare some 50 qualified advisors in the company who constantlyendeavor to improve our customer-oriented activities.



Communication with Customers

Fujifilm’s management policy is customer oriented which is reflected in its Charter for Good CorporateBehavior as follows: We will develop, manufacture and supply useful goods and services, giving fullconsideration to product safety, as we strive to gain the satisfaction and faith of our customers.We respond to customer inquiries, suggestions and opinions in a quick, friendly, direct, and fair fashion.With the advancement of products, a product-specific Technology Support Center has been set up tosupport their use. Fujifilm’s website also offers a wide range of information and answers to inquiries.

The Customer Communication Center started out in 1990 asan organization placed under the direct control of thePresident. Currently, some 30 technical specialists haveresponded to about 50,000 inquiries and suggestions fromhome and abroad. Since its inception, database updates onproduct service and technical information, and enhancementsof the website have been made. We respond to customerdesires and opinions in a timely direct manner, includingthose about increasingly sophisticated IT related products.Direct feedback from customers such as importantsuggestions, complaints and inquiries is classified intocategories such as special notes, quality feedback, newproduct feedback, and suggestions. This information isreported to the top-level managers and to related divisionmanagers. The feedback is utilized in the improvement ofproducts and services, and in the development of newproducts too.

Customer Communication Center

Our affiliated companies respond directly to customerinquiries and provide support for operating digital minilabsin the photo studio and for development and printingmachines as well as for products related to medical, printingor office products.

Support for Industrial Products

Extra technical support is required for the usage andutilization of products such as digital cameras, recordingmedia, and digital imaging services including printing digitalcamera images. In the various divisions responsible for theseproducts we have technical specialists in centers to provideconsultation support about these systems, including theiruse as it relates to the environment.

Technology Support Center

Communication fromdomestic customers

Retailers

TelephonesFAXLetters VisitsInternet

Communication from overseas

customers

Inquiries

Requests

Opinions

Suggestions

A sampling of customersJapanese, English, and Chinese, etc.

Customer Communication CenterWebsiteTechnology Support CenterService centerMarketing divisions, sales companies

Overseas distributorsOverseas affiliated company

Customer Communication

Center

Each division

Compilation ofcategorized information

database

A commondatabase

compiled by the Customer

CommunicationCenter

Report totop-level

managementand

related divisions

Improvement of service

Improvement of products

Adoption of new products

*1Review customer communication in

related divisions

Feedback

*1 As a result of the improvement of products, easier to read products manuals, and an increased use of Q&A at the Fujifilm website, the number of telephone inquiries to our Customer Communication Center and various support locations has stayed the same or decreased slightly.

85%

15%

InquiriesComplaints

� Break-Down ofTelephone Inquires

Domestically, a total of 400 technical staff assigned to the Customer Communication Center and to various support locations respond to 600,000 inquiriesand suggestions annually. Both domestic and overseas inquiries are integrated into one database. Top-level management and related divisions get feedbackon important opinions, suggestions and inquiries from customers for timely responses. The challenge for VISION75 is to achieve our goal of enhancedfeedback and the integration of our domestic and overseas customer information.

� Customer-oriented CSR Promotional Activities that are Linked to VISION75 Medium-Term Management Plan Activities

Some 30 technical specialists are responsible for customer inquires, etc.Text books such as customer service manuals


Co

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cts

Fujifilm considers that the fun of taking photos and thememories that linger with the photos help make lifefulfilling. Making photos in print a valued record is essentialin creating happy memories. However, although people areusing more and more digital cameras, the volume of photosbeing printed in photo shops is still limited. Fujifilm providessystem, equipment, staff training, and ideas in their photoshops in an effort to make fadeless store-printed photosmore readily available.

To Make Memorable Photos

FujifilmCall Center

FujifilmCall Center

Dedicated technical support staff always responds to inquiries from digital minilabs.

Periodical maintenance always keeps the Frontier machine in top condition.

We furnish timely support for digital minilabs print business by providing version upgrades and remote on-line maintenance.

Equipment retailersDigital

Minilab

FrontierPre-Maintenance

Program

FrontierPre-Maintenance

Program

FujifilmPartner Net

System

FujifilmPartner Net

System

Frontier Technical Course (Technical Training)Frontier shops were introduced to provide training thatincludes a wide range of knowledge and technicalinformation aboutdigital prints.Customers learntechniques for usingFrontier to make printexactly the way theywant.

Digital Camera Photography ClassThe Fujifilm Group supports photo classes that providephoto studios to customers.In the beginning course, features and photographictechniques of digital cameras are presented. In the digitalphotography course, the fun and advantages of digitalprints that are readilyavailable in the shopare featured.

Fujifilm provides photo studios with three kinds of trainingas part of its Photo Master Activity and their objective is toequip photo studios with the ability to deliver quality photosto customers.

Concierge Course (Sales Training)In this training, discussions are held concerning how theFujifilm group and photo studios can cooperate to achievethe following goals: how the messages of “fun withphotos” and “appreciation of photos” can be conveyed tocustomers, how the business of the net service and printingfrom cell phoneswith built-in camerascan be enlarged,how to improve the techniques ofpresenting photosand how to presentthem well.

Photo Master Activity to Create Shops thatCan Help Take Memorable Photos

� Support Service to Digital Minilab



Communication with Business Partners

In April 2004, Fujifilm’s sales planning division wasrestructured so that the printing business-related marketingdivisions became a market-oriented organization ratherthan being product-oriented. Before restructuring, therewere different marketing divisions in charge of the variousproducts required for a color print, depending on outputdevices. After reorganization, Fujifilm now provides a one-step procedure that simplified the system for retailers andcustomers.

New Structure of the Sales Planning Divisionto Give More Benefits to Customers

Fujifilm’ s sales planning division and sales division work together to pursue various projects to helpcustomers take “memorable” photos. The project is outside normal sales promotion activities and plays acore function in determining customer and shop needs, which will be presented to the technical division.

The marketing group, besides routine tasks such as thecreation of sales tools and presentation planning for entryto photo related events, makes efforts to enhance supportfor the shops which purchased their equipment. They alsocreate and implement numerous projects in whichcustomers discover the value of ”memorable photos”.

Fujifilm call center is the core organization for digital minilabsupport service which provides solid assistance for Frontier,a film development and printing device.Dedicated technical support staff respond to inquiries fromthe digital minilab 365 days of the year. Over 90% of thephone calls are received and the problem resolution ratio ofthe them is always over 75%. In addition to the Fujifilm callcenter which provides telephone support, we haveimproved support service for digital minilabs such as theFrontier pre-maintenance program to prevent machinemalfunctions by periodic inspections and a web-utilizedFujifilm Partner Net System (a system that links infrastructuresof Fujicolor netprintservice and supportservice).

Call Centers that Link Fujifilm toEquipment Retailers and Shops

Market-Oriented Organization➀General picture market: Photo studios, counters at

supermarkets and convenience stores➁Business market: Laboratories, companies, police (crime lab).

Self-Defense Forces, etc➂Home use, entertainment market➃Professional pictures: Photo studios, photographers, etc.➄Internet market

Fujifilm provides the services below to accommodate Netprint which is expected to experience a significant rapidgrowth.

* Fujifilm accepts orders from customers via servers constructed on theInternet and receives print data. Then the data is transferred to digital labsand digital minilabs (shops equipped with Frontier; solid lines). Digital labsand digital minilabs then print the received data and present the printC.O.D (dotted line).

Activity of the Sales Planning Division

Sales PlanningDivision

Sales Division

Sales Subsidiaries,Distributors Shop Customers

Fujifilm Server(FDi-net)

Distribution of received data

Digital minilab · General lab

Data upload via the Internet

Print deliveryC.O.D.

CustomersFujifilm Call Center

Photo studio people and Fujifilm Group employees

having discussions on Concierge Course

Digital Camera Photography Class

Materials for Frontier Technical Course


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Report

Usability Conference

At usability conferences we try to understand why a user had difficulties operating a product and then use that information tomake changes that will improve the overall function of product and ease of its use. Also, one of the important features of thisusability conference is the premise that the conference is held for the purpose of finding practical solutions to problems, not justfor collecting information

1. Recruitment of Test Users • Preparationsfor the Usability Conferences

We recruit 6-10 test users depending on the product to be evaluated.The most typical test user is a person who has never used a product suchas a digital camera before. In some cases, the condition maybenarrowed down to “foreign” or “elderly”. In case of medicalequipment, they maybe “doctor”, “nurse”, or “radiology technician”.Depending on the subject for evaluation, an effective approach isselected each time. In the steps of preparation, evaluation categories arenarrowed down as needed. Eventually, a number of findings that areunexpected turn out to be valuable ideas for development.

2. Implementation of the ConferenceEach test user will spend about two hours on the assignment. Theassignment is simple, since it is new to the test user and he/shenormally struggles along through the assignment. An observer and acamera operator stay in an adjoining room to the test user whoworks on the assignment alone. The method of operation and thecomments from the test user are monitored by and recorded by theobservers and the camera operator.

3. InterviewAfter the assignment is over, the observer asks questions about anyincorrect operation and the points of concern they have. For example,after a question like“ Why did you pushthe button at that point in time? Isfollowed by one such as “What would youhave done if you had not pushed thebutton then?” In this way, reasons for thewrong operation and suggestions by thetest user are sought.

4. Analysis and ImprovementsAnalysis is made from all possible angles in an effort to gathervaluable information obtained from the conference for futuredevelopment. Based on the analysis results, discussions are held forimprovements that are to be used in product development promptly.

Six to ten people in a separate room, the person evaluating theactivity along with the development team members (planning, projectand design) observe and record the way the test user responds togiven assignments.

0

4

3

2

1

Leve

l of

achi

evem

ent

Take

out

of

the

box

➀

Batt

ery

Inse

rt ➁

Inse

rt S

mar

t M

edia

➂

Pow

er o

n ➃

Dat

e re

sett

ing

➄

Shoo

t ➅

Flas

h sw

itch

➆

Average value 1: Unable to operate 2: Took too long to operate3: Took some time to operate 4: Able to operate

� Analysis of the Results of Assignment AchievementThis is an assignment achievement analysis graph of the time consumed for eachprocess by eight test users. It shows that the wrong action was made ➄ dateresetting by nearly everyone and ➅ about half for 8 made mistakes in switchingflashes.

� A digital camera assignmentThe test user is given a new unopened product and a digitalcamera assignment. The test user look at the manual and followsa series of assignments shown as below.

➀ Please shoot.➁ Please switch to sensitivity XX and shoot.➂ Please return to the normal sensitivity and shoot with flash.➃ Please confirm the images shot.➄ Please delete the third image.➅ Please put in the date.➆ Please terminate shooting.➇ Please take the medium out and put it in the case.

Given the instruction “please conduct the date-setting,” the test user setthe date, and pushed the arrow key down since they wanted to move tothe second tier setting. However the action only changed the datefrom29 to 30, and prevented them from moving ahead.

Before To move down the arrow key had to be pushed in theright direction.

After To give a image associated with “Move to right andthen down,” the line indicating “right ➝ down” wasdisplayed on the screen.

When asked to make a “White balance change”, the test user checked

the operation manual. In the table of contents “White balance” was

found and operated as per the instructions; however, the setting screen

did not appear.

Before The camera’s shooting mode had to be switched fromAuto to Manual mode for the white balance settingmode to appear.

After In the page for “white balance” of the operationmanual, a description such as “please refer to thepage on manual setting when settings are made”.

Before After

Elderly

How observation is made from a separate room

Foreigner Nurse

� Case 1: Date Setting on a Digital Camera.

� Case 2: Manual Setting of a Digital Camera


Alis

tofc

onte

nts

appe

ared

onth

ein

-hou

sein

tran

etin

the

past

In Pursuit of User-Friendly Design


The Fujifilm universal design and usability promotion teamemploys the action cycle of “listen to users, observe,analyze, and adopt“. As part of this action cycle, usabilityconferences have been held since 2001.

Fujifilm Universal Design and UsabilityPromotion Team

The Design Center started its barrier-free activity in 1998.Various in-house enlightenment activities such as listing allkinds of information on barrier-free connections on thecompany website or assignment of a consultation officecontacts for inquiries. These activities are continuing underthe usability evaluation activity.

In-House Enlightenment Activity

At the Design Center responsible of design for Fujifilm products, the usability evaluation is promoted foruser-friendly design. Since 2001, usability conferences have been held to offer suggestions to the salesplanning divisions and development divisions, and for in-house promotion.

� Usability Conferences Held to Date

Barrier-free activity

Towards an aging society

Barrier-free activity, barrier-free products of other companies

Non-business’s dealing with barrier-free

Ways to enjoy photos by the vision impaired

The world of the persons with cataracts, refractive errors or narrowed field of visual

Renting out goggles for the vision-impaired and their use

Requests by the vision-impaired

Requests by persons with dysfunctions of lower extremities and those in wheelchairs

Requests by pregnant women

Barrier-free for healthy persons

About universal design

Universal design in other companies

Universal design on the market and views on the cost

About usability evaluation activity

FUJI XEROX DocuTech, Color DocuTech2002.11

Digital camera, FinePix F4012002.7

Internet ordering net service for photo print, Ver42002.1

Digital minilab equipment for store-printed photos, Frontier 340E2002.12

Digital photo printer, Printpix CX-4002002.9

Internet ordering net service for photo print, Ver.52003.1

Photo print ordering net service by mobile phones2003.1

Photo print ordering on the Internet, Easy Print2003.1

Digital camera, FinePix A3032003.1

Cell phones with built-in cameras, four models2003.6

Digital image diagnosis system, FCR Pico2003.7

DVD file image display equipment, LF-C12003.7

Print reception machine for digital cameras of other companies:, four models

Digital camera, FinePix F700

2003.8

2003.9


Digital image diagnosis system, FCR (upcoming product)2003.11

Current and Future ActivityIn the future ,this activity will be strengthened around the“universal design and usability promotion team“ thatstarted in 2003. Some of the ongoing activities include thecreation of guidelines for the development of products suchas digital cameras and photo print reception machines, andthe recompilation of the points of concern for those whoare colorblind or have weak color vision. This will lead to theredevelopment of our database so that the developer canmake more practical use of it.

What is A Usability Conference?Unlike normal claim response or monitor surveys, it starts byobserving the thoughts of users. Evaluation conferences areheld before, during, and after the development of a newproduct or when a new feature is being added to a product.Fujifilm studies products made by other companies as well.Through these evaluation conferences, we make efforts tolisten to issues which do not always reach our lines ofcommunication. The issues that users experienced thatcaused inconveniences resulting in their attributing theproduct’s poor usability to the fact that that they had notread the manual. They resolved problems of struggling withthe product’s operation by asking others.The usability evaluation activity is to discover these unheardissues and resolve them one by one so that they arereflected in the development of new products. (Please referto the page on the right). As for products’ environmental considerations, go to P33 – 37.

� Flow of Usability Conference Implementation

Development of new products andthe addition of new functions

Marketingdivisions

Consultation

Developmentdivisions

Requests ·Consultation

Suggestions · Consultations

Requests ·Consultation

Suggestions · Consultations

DesignCenter

• Verification of existing equipment

• Verification in mid-development

• Verification after production

• Verification of others on the market, etc

Impl

emen

tatio

n of

usab

ility

con

fere

nces

Ana

lysi

s an

dim

prov

emen

t


Digital camera, FinePix 2600Z2001.10

Digital camera, FinePix M6032001.12

Photo print ordering machine, Frontier JOY, at a shop2001.3

Digital camera print ordering machine, Seven-Navi, in a convenience store2001.6

Digitized photo service, FUJICOLOR CD2001.9

PC software, FinePixViewer2001.10


En

viron

men

talMeasu

resin

Bu

siness

Activities

CO2 Emission(unit: a thousand tons-CO2 per year)

1,414

SOxEmission

(unit: a ton per year)

330

NOxEmission


881

SootParticles


25

CODEmission


143

TotalPhosphorus

Emission(unit: a ton per year)

6.1

TotalNitrogenEmission


361

PurchasedPower

(unit: a million kWh)�

914

Bunker A(unit:

a thousand kiloliters)

151

Bunker C(unit:


73.2

NatualGas

(unit: a million Nm3)

41.0

Solar Energy

(unit: a thousand kWh)

77.4

LPG(unit: a thousand tons)

1.29

Kerosene(unit:

a thousnd kiloliters)

7.18

R&D/Production

Disposal

Products

Customers

Recycling Ratio:

100%

Plastic Molding

(unit: a thousand tons)

5.10

MetalMaterials


2.33Paper Containers/

Boxes + Paper Material


6.18

Cardboard(unit:

a thousand tons)

8.32

Energy Consumption

Packing and Container Materials: Data show the results of six Fujifilm’s domestic workplaces.

Plastic Film Sheet


0.91

Waste Emission(unit: a thousand tons per year)

90.7

DischargeVOC Emission


1,786Atmosphere

Discharge

The amount ofwater discharged

(unit: a million tons per year)

60.2Water

The amount of water recycled (unit: a thousand

tons per year)

22,200

Shipment:�Data on Fujifilm Logistics Co., Ltd.

Total CO2 Emission (unit: a thousand tons-CO2 per year) 36.9

The reduced amount of CO2 emission (unit: a ton-CO2 per year)compared with the previous year due to improvement in shipping efficiency

PM Emission(unit: a ton per year)

NOx Emission(unit: a ton per year) 290

619

EmissionUsage

WindGenerated

Power(unit: a thousand kWh)

952

Liquefied NaturalGas

(unit: a thousand kiloliters)

24.1

Diesel Oil (unit:


5.73 22.3

Water Usage

(unit: a million tons)

78.9

Silver(unit: a thousand tons)

0.99

Gelatin (unit: a thousand tons)

4.77

PET(unit: a thousand tons)

52.9

TAC(unit: a thousand tons)

21.0

Aluminum(unit: a thousand tons)

81.0

Business Activities and Environmental Impacts

Fujifilm Group has taken environmental measures such as fuel conversion from heavy oil to natural gasto strengthen our environmental management system and to reduce greenhouse gases as part of ourgreen policy.


The following diagram shows the total quantity of naturalresources used by the entire Fujifilm Group, and the amountof industrial waste that was discharged in each phase of theR&D, production and shipment activities in 2003.* The data show the amount of packing and container materials for our six

domestic workplaces.

PET (Polyethylene terephtalate): This is well known as material used for PETbottles that is also used as the substrate for X-ray film.

TAC (Triacetylcellulose): This material is used as substrate for general pho-tographic film and cinema film.

PM (Particulate Matter): This material consists of particles that are less-than-ten-micrometers. Some particulate materials that are suspended inthe air are often referred to as SPM (suspended particulate matter). The fluegas from a factory and diesel exhaust particulates, in addition to suspendedparticulate matters such as the smoke of a volcano that exists in the naturalworld, are the main sources of the outbreak of particulate materials. It ispointed out that diesel exhaust and suspended particulate material mayalso contain carcinogenic components.

Glossary

Environmental Measures Taken by Our Overseas Subsidiary Companies


En

viron

men

talMeasu

resin

Bu

siness

Activities

Environmental Considerations in Factory Operations


Fujifilm Group regards the reduction of environmental impacts at our company manufacturing bases as efficientmanagement, and we strive for an ideal factory operation that can co-exist with the local communities as well as with theglobal environment. We are pleased to introduce the following examples of our group of companies, both domestic andforeign, that are pursuing model factories of environmental compliance and energy efficiency.

The Quality and Environmental Management System of Fujifilm Opto Materials

Aiming to Be a Model Factory with EnvironmentalConsiderationFujifilm Opto Materials Co., Ltd actively promotes its threebusiness concepts of simplicity, openness and zeroemissions for Wide View (WV) film production that beganoperation in February 2004 and will continue this policy infactories that will be built in the future. In close cooperationwith a neighboring community it will make every effortpossible to reduce its environmental impact inmanufacturing for the preservation of the naturalenvironment. It will also promote constant improvement inits quality and environmental management system and willextend the scope for approval of ISO9001 and ISO14001 toany factories built in the future.

A new manufacturing base for FUJITAC, WIDE VIEW Filmnecessary for the production of liquid crystal displays,Fujifilm Opto Materials Co., Ltd. was established in August2001 and manufacturing began in March 2003.The flat panel display material industry is positioned as afast growing industry in the Fujifilm’s VISION 75 medium-term management plan. Fujifilm Opto Materials Co., Ltd. isa base for mass production of Fujifilm’s key items, alongwith Fujifilm Ashigara Factory and Odawara Factory, andplays a leading role in the panel display material market.Since its establishment, Fujifilm Opto Materials Co. Ltd. hasbeen integrating quality and environmental managementinto its everyday tasks. The concept and implementation of

an integrated management system designed to combinequality management with environmental management wereso highly evaluated that only one year after productionbegan it hadacquired ISO9001and ISO14001certification.

Simultaneous Acquisition of ISO9001 and ISO14001 Certification

Fujifilm Opto Materials Co., Ltd. embraces three businessconcepts: Simplicity, Openness and Zero Emissions.

Simplicity: More maneuverable labor saving andautomated facilitiesOpenness: Caring about local communitiesZero Emissions: Environmental Consideration

Fujifilm Opto Materials Co., Ltd. has successfully embodiedthese concepts so well that they can almost operate all theproduction faci l it ies by remote control. Regardingenvironmental consideration, Fujifilm Opto Materialsfocuses on keeping industrial wastewater quality betterthan standards for potable water, in addition to improvingenergy conservation, recycling and reusing resources.

The Three Business Concepts of Fujifilm Opto Materials “Simplicity,” “Openness” and “ZeroEmissions”

Production of FUJITAC

The factory staff tests-samplingof FUJITAC

Fujifilm Opto Materials(Located in Shizuoka Prefecture)

The computer-controlled andcentralized control room

Simplicity(Easy to operate, labor saving and automated facilities)

Zero emission(Environmental Consideration)

Tour of our factory for the neighboringcommunities in March 2004

Waste water reservoir for keepingwastewater quality better thanrequired water quality

Openness(Caring for the local community)

Fujifilm Imaging Systems (Suzhou) Co., Ltd. in Suzhou, China, took activemeasures for the acquisition of ISO14001 certification and obtained it inOctober 2000. Fujifilm Imaging Systems (Suzhou) Co., Ltd. reduced theconsumption of batteries in a production process at its factory by changingpart of its power source from DC to AC. It is reusing solder debris, savingelectricity and economizing on industrial water consumption at the factoryfor environmental conservation. It is also taking various otherenvironmental measures with its products in close cooperation with itsDevelopment Department.

New Line of Instant Camera, Fujifilm Instax Mini 10Copes with RoHS.Fujifilm will follow Restriction of Use of Certain Hazardous Substances inElectrical and Electronic Equipment in its production of Fujifilm Instax Mini10 and its new products in the latter half of 2004. For example, they willemploy lead-free solder packed substrates and introduce cadmium-freerivets. They will, therefore, not contain the usual six chemical substances oflead, mercury, cadmium, hexavalent chromium or polydiphenyl etherbromide in adhering to the new policy change that came into effect afterEuropean Unity. The European RoHS directive restricts of the use of certainhaszardous substances in electrical and electronic equipment.

A vinyl chloride-free and cadmium-freeprocess was made in a lead wire pre-soldering process.

An entirely lead-free productionline was completed for leadsolder packed substrate by

March 2004.

Fujifilm Imaging Systems (Suzhou) measuredcadmium content through the use of NITONfluorescence analyzer.

Fujifilm Imaging System(Suzhou) Co., Ltd. HasBeen Selected “Green Enterprise” by SuzhouCity, ChinaFujifilm Imaging system (Suzhou) Co., Ltd. hasbeen selected “Green Enterprise,” the best ofthe five-level enterprise evaluation system forfour consecutive years by Suzhou City, China.Every year, all the companies in Suzhou City aresubject to a five-level enterprise evaluationsystem designated by green, indigo, yellow, pinkand black. In the fiscal 2003, 200 out of about1,000 companies in Suzhou City wereevaluated, and 65 companies were selectedGreen Enterprises.

The Vancouver and Montreal Offices under Fuji Photo Film CanadaInc., our manufacturing subsidiary in Canada, acquired ISO9001and ISO14001 certification at the same time. The two officesprovided complete trainingfor all the employees,including newly hiredemployees, in preparationfor the new certificates.Each department set itsown targets for reductionof shipping errors and forthe improved resolution ofthe initial inquiries fromcustomers about digitalminilab repairs andsuccessfully achieved theirgoals.

On June 17, 2004, Fuji Photo Film B.V. in the Netherlands, ourmanufacturing subsidiary in Europe, started the operation of itswater purification facility with a bio-reverse osmosis membranecapable of treating waterat maximum rate of45m3/h. This new watertreatment system is capableof purifying reusabledischarged water from thefactory efficiently. It is alsocapable of reducing energyconsumption by reusingthermal energy that isgenerated in the process.This water purificationsystem was evaluated bythe EU’s EnvironmentalConservation PromotionSystem that decided togrant a subsidy of about45 million yen equivalentto US$400,000 to FujiPhoto Film B.V. out of theLIFE GRANT.

Acquisition of ISO9001 Certification Acquisition of ISO14001 Certification

Vancouver Office of Fuji Film Canada Inc. April 21, 2004 February 27, 2004

Montreal Office of Fuji Film Canada Inc. April 21, 2004 March 11, 2004

The photo shows: From left, Senior Executive Vice President of

Fuji Photo Film Canada Inc. in charge of General Affairs Dept.,

Mr. Kelly, Operation Manager in charge of Environmental

Conservation Dept. and Mr. Townsend, Senior Executive Vice

President in charge of Technical and Environmental Conservation

Dept.

Mr. Sata, President and Chief Executive Officerof Fuji Photo Film B.V. is delivering a speech.

A certificate of merit wasawarded to Fujifilm ImagingSystems (Suzhou) Co., Ltd.

Mr. Sata, left, President and Chief Executive Officer ofFuji Photo Film B.V. and Mr. Peter Van Heel, Minister ofState are drinking a toast with a glass of treated-waterto a newly completed water purification facility.

Fujifilm Imaging Systems(Suzhou) Co., Ltd.

Fuji Photo Film B.V. The Netherlands, Started theOperation of Its New Water Purification Facility

Fuji Photo Film Canada Inc. Was Given ISO9001and ISO14001 Certification Simultaneously


Substance nameSubstance category Reduced amount (tons)

115Dichloromethane

Six domestic Fujifilm workplaces

Reduced amount until fiscal 2003 compared with fiscal 2000

Substances subject to voluntary control by Fujifilm

Substances designated by PRTR LAW

1056

241

154

23

Methyl alcohol

Ethyl acetate

Methyl ethyl ketone

acetone

Actual Reduction in Atmospheric Emissions ofVolatile Organic Compounds

Fujifilm had a 2002 goal to reduce VOC atmosphericemissions from its manufacturing processes by 50% overthat of 1996. We actually surpassed that goal to achieveabout a 58% reduction. Since then Fujifilm has beenpromoting various measures to reach the goal in 2004 ofreducing VOC emissions by 50% over the 2000 levelsestablished in Fujifilm Group Green Policy. As a result, wehad reduced VOC emissions by 56% already in 2003, oneyear ahead of the target year.

PCB Storage and Control Status

PCBs were used in the coupler solvent oil for the productionof a conventional pressure sensitive paper (carbonlesspaper). Fujifilm used PCBs at one point but their use waseliminated by switching over to non-PCB pressure sensitivepaper in 1971. However, the PCB-contaminated sludge10,400m3 (calculated PCB content of about 1.5 ton)produced during the production of conventional pressure-sensitive paper is stored and controlled at the Fujinomiyafactory.

Securing the Appropriate Processing SystemThe national and prefectural governments have establishedplans regarding the processing of PCBs based on the “lawsregarding special measures promoting appropriateprocessing of polychlorinated biphenyls (PCBs)” establishedin 2001. Fujifilm will strive to secure an appropriate PCBprocessing system such as the development of processingfacilities. Fujifilm strictly controls stored PCBs and plans todispose of PCB waste as soon as an appropriate processingmethod is determined.

Substances to Be ReducedSubstances to be reduced include VOC, that we arerequired by PRTR LAW* (Pollutant Release and TransferRegister Law) to report, as well as 10 other substances thatFujifilm is controlling on its own.

Reduction of VOC during the ManufacturingProcessesFujifilm mainly promotes the following two measures toachieve their VOC reduction goals during themanufacturing processes.

Reduction of Volatile Organic CompoundAtmospheric Emissions

1. Reduction of usage (process change) by collaborationbetween the research and the manufacturing divisions· Switching organic solvents to aquatic solvents· Changing the process to reduce the use of organic solvents· Maintenance of product quality and evaluation of manufacturing

fitness

2. Reduction of atmospheric emissions (by alteringfacilities)· Incorporation of optimal facilities to match the organic solvents and

the process conditions used· Recovering and reusing organic solvents that are mixed in the

exhausts emitted during the manufacturing processes· Incinerating the exhausts to be used as a heat source· Break down the organic solvents into water and carbon dioxide with

regenerative combustion equipment

Controlling PCB

Fujifilm has been conducting activities to reduce VOC atmospheric emissions from its manufacturingprocesses. As a result, in 2003 we achieved approximately a 56% reduction in VOC atmosphericemissions over 2000 levels, surpassing our goal by far. Also we are strictly controlling the storage andmanagement of highly poisonous PCBs (polychlorinated biphenyls).

� Effectively Reduced VOC and Reduced Amount

Number of stored or controlled items

Six domestic Fujifilm workplaces ConsolidatedCategories of the devices

containing PCBs

219 units

1.5 tons

7,535 units

199

0 kg

0 unit

307 units

1.7 tons

16,087 units

116,381

467 kg

6 units

High-voltage transformers and capacitors

PCB oil waste etc. (including sludge)

Stabilizers for fluorescent lamps, etc.Low-voltage capacitors, transformers other than for fluorescent lamps

Rags

Other devices

� Number of Stored Devices Containing PCBs

We listed the substances that we use over one ton per year. Since the data listed in the table are rounded, the mass balance may not be calculated exactly.

Fiscal 2001203.9

-23.8

7.914163.5

1.18.2

25.61919.1

2.32.5

--

5.61.4

351.647.0

6.90.0

34723.3--

781.414.5

1.0165.5

4.2-

60.8--

2.91.43.89.66.81.9

920.5327.9

1870.221.9

304.3186.1252.3

4581.05911.9

41.2�4781.5

71724.4

Fiscal 2002261.6

5.32.8

10.414407.7

1.13.2

27.51791.5

2.31.51.3

-3.51.6

377.236.3

7.40.0

36095.1-

1.4802.8

11.02.4

123.24.0

-8.33.73.45.72.61.6

14.98.21.1

943.2400.5

1785.734.0

284.9194.8248.9

5012.86250.9

52.7�5093.4

74299.5

Fiscal 2003191.5

6.52.6

10.013810.4

1.13.2

14.71636.9

1.81.11.22.43.91.4

312.342.7

4.90.0

34865.91.11.8

634.213.8

0.797.4

4.02.53.04.53.43.11.51.16.07.41.1

710.2440.4

1709.760.5

231.9178.8320.7

5296.55893.6

68.0�4148.2

70699.2

Fiscal 20017.8

-0.00.01.10.00.02.30.00.00.0

--

0.00.0

288.12.70.00.40.0

--

15.30.00.00.00.0

-0.0

--

0.00.00.00.00.00.0

129.81.9

316.70.56.5

39.656.4

1745.2162.4

0.42.8

2779.4

Fiscal 20026.40.00.00.01.40.00.02.20.00.00.00.0

-0.60.0

285.14.80.01.80.0

-0.06.60.00.00.00.0

-0.00.00.00.00.00.00.00.00.0

120.64.6

160.92.67.4

15.49.1

1091.988.9

0.4�3.1

1811.2

Fiscal 20034.00.00.00.01.70.00.01.60.00.00.00.02.40.60.0

242.47.50.00.00.00.10.0

19.50.00.00.00.00.10.00.00.00.00.00.00.00.00.0

106.26.4

163.82.6

11.79.7

15.9700.3

52.10.4�2.9

1349.5

0.30.00.00.00.00.00.00.00.00.00.00.00.00.30.00.50.30.00.00.00.00.00.00.00.01.20.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.51.10.20.03.50.0�

25.833.7

186.60.00.10.1

136.90.00.00.00.00.00.00.00.02.71.4

16.233.0

0.00.00.00.00.0

210.23.00.30.64.01.80.40.10.00.40.20.36.00.00.0

358.0323.6721.1

0.0218.8

0.7151.7

1631.4760.3

25.9342.4

5138.4

0.00.00.00.00.10.00.00.0

129.70.00.00.00.00.00.07.80.00.00.00.00.90.0

189.70.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0

19.40.00.00.00.10.0

296.12888.4

0.0�416.1

3948.2

Government ordinance

number Name of the substanceAmount used Amount emitted to atmosphere*1

Substances in VOC atmospheric emissions record

Amount transferred

Recycled amount

1216242543464763646566678595

102145172177179205217224227243253254259266270307308309310313314320353

Acetonitrile2-AminoethanolLinear alkylbenzenesulfonate and its saltAntimony and its compoundEthylene glycolEthylenediamineEthylenediamine tetra-acetic acidXyleneSilver and its water-soluble compoundGlyoxalGlutaraldehydeCresolChlorodifluoromethaneChloroformVinyl acetateDichloromethaneN,N-DimethylformamideStyreneDioxins (unit: mg-TEQ)*2

Terephthalic acidTrichlorofluoromethane1,3,5-trimethylbenzeneTolueneBarium and its water-soluble compoundHydrazineHydroquinonePyridinePhenolDi-n-butyl phthalatePoly(oxyethylene) = alkyl etherPoly(oxyethylene) = octylphenyl etherPoly(oxyethylene) = nonylphenyl etherFormaldehydeMaleic anhydrideMethacrylic acidMethyl methacrylateTris-phosphate (dimethylphenyl)AcetoneButyl acetateEthyl acetateTriethylaminen-HexaneButyl alcoholPropyl alcoholMethyl alcoholMethyl ethyl ketoneN-Methyl pyrrolidoneTotal of other substances subject to voluntary control by Fujifilm

Total

*1 Although we report the amount of emissions including what is emitted into water and soil to the government, we omitted the data based on the opinion we received at the Sustainability Report Readers Opinion Meeting.

*2 This is emitted from the facility to incinerate sludge containing silver. The measured value of dioxins is well below the legal requirement.

Amount transferred to the sewage system

Amount transferred outside the workplace

(other than that left)

-----------

Fiscal 2003 Fiscal 2003 Fiscal 2003

� PRTR LAW Designated Substances and the SubstancesSubject to Fujifilm’s Voluntary Control

PCB control status at the LifeScience Research Laboratories

Atmospheric emissions

Reduced Amount6

5

4

3

2

1

019971996 1998 1999 2000 2001 2002 2004

(thousand tons)

4.3

3.33.1 3.0 3.1

1.81.82.2

Target value 1.5

(FY)

100

100

50

2003

1.3

2.8

58% reduction

Six domestic Fujifilm workplaces Consolidated

� VOC Atmospheric Emissions

Regenerative combustion equipment at the Ashigara factory

Fujifilm cooperates with the city of Fujinomiya to conductPCB surveys twice a year. Well water is monitored to makesure there has been no.PCB leakage into the undergroundwater supply.Storage and control status of the equipment containingPCBs is as follows.

Reduction of Chemical Substance Emissions


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*PRTR LAW (Pollutant Release and Transfer Register Law): A law thatpromoted keeping track of specified chemical substance emissions andimproved management practices, established in July 1999. It wasintended to prevent chemical pollution of the environment by having themanufacturer and user of chemical substances keep track of theamounts of potentially hazardous chemical substances their companyemitted into the environment. The businesses to which this law appliedwere required to keep track of their emissions of designated chemicalsstarting in April 2001, and to submit this data starting in April 2002.

Glossary


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GHG Emission Trial Trading Business

TJ (Tera Joule)

12,711 13,04813,342

10,395

12,407

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

02001 200320021990 2000 (FY)

15,23114,847

16,066

21,738

16,461

22,442

Six Fujifilm Domestic Workplaces Consolidated, both Domestic and International

Consolidated, Domestic

Fujifilm is forging ahead with reductions in greenhouse gas (GHG) emissions and energy conservation measuresaimed at preventing global warming. To this end, we are in the process of converting our fuel from heavy oil tonatural gas. Also, based on Fujifilm’s fundamental environmental conservation policy - “conserving clean waterand air” - we are working diligently to curb our water usage during manufacturing.

� Transition in Energy Consumption

Million kWh

Thousand kL

Thousand kL

Thousand kL

Thousand kL

Thousand kL

Thousand t

Million Nm3

UnitConsolidated: Domestic

and International Six Fujifilm Domestic Workplaces

Fiscal 2002

880

177

79.7

9.58

24.1

3.96

1.25

6.3

Fiscal 2003

914

151

73.2

7.18

24.1

5.73

1.29

41.0

Fiscal 2002

286

176

79.3

2.4

0

0

0.27

5.2

Fiscal 2003

253

145

72.8

1.8

0

0

0.32

38.8

Purchased electric power

Bunker A

Bunker C

Kerosene

NGL

Diesel Oil

LPG

Natural Gas

� Energy Sources Consumed

April 2003 We have adopted natural gas as a joint business with the Odawara Gas Co., Ltd.

January 2004 Upon completion of our new utility complex, we had a total conversion to natural gas.

February 2003 Adoption of natural gas

April 2004 We installed a gas pipeline as a joint project with Fuji Xerox and Tokyo Gas both of whose factories are located in the same area, to make use of natural gas.

January 2004 Total natural gas conversion of small through-flow boiler for supplying steam

We plan to incorporate natural gas.2007

Ashigara Factory (Kanagawa Prefecture)

Yoshida-Minami Factory (Shizuoka Prefecture)

Asaka Workplace (Saitama Prefecture)

Odawara Factory (Kanagawa Prefecture)

Fujinomiya Factory (Shizuoka Prefecture)

Aiming at Total Greenhouse Gas (GHG) EmissionsReduction Goal of Over 9%

Fujifilm is aiming to reduce its total greenhouse gas emissionson a non-consolidated basis by 9% by fiscal 2010, comparedwith fiscal 1990. We are promoting energy conservation andGHG reduction measures such as the adoption of energyconserving facilities, as well as streamlining and revamping ourmanufacturing methods. Also, since we have determined thatfuel conversion from heavy oil to natural gas is the mosteffective measure for reducing total GHG emissions, we havebeen actively promoting the changeover. In fiscal 2003, wecarried out fuel conversion at three workplaces, increasing theuse of natural gas to 14% of the total energy consumption.This resulted in a 4.5% decrease (over the previous year to813,000 t-CO2) total GHG emissions for our six workplaces,even though GHG emissions had been on the increase for thepast few years.However, due to the expansion of our flat panel displaybusiness and an increase in manufacturing volume, the totalGHG emissions in fiscal 2003 by the entire Fujifilm Groupincreased by 1.6% compared with the previous year.We will continue to promote fuel conversion to natural gas,and, at the same time, seek to develop further emissionreduction measures.

From Heavy Oil to Natural Gas

Since natural gas has the least greenhouse gas emissionsper unit calorific value, as long as the energy consumptionremains the same, we can greatly reduce GHG emissions byconverting from heavy oil to natural gas. Fuel conversionrequires a large amount of expense and time, since we needto build a new large-scale facility, but Fujifilm is committedto making an extensive capital investment toward theaccomplishment of our long-term GHG reduction goal.Since fiscal 2003, we have adopted natural gas at threeplants. The Odawara Factory went through a completeconversion when the new utility complex (a cogenerationfacility) was completed. The Ashigara Factory converted itsexhaust heat boiler fuel and the Asaka Workplace convertedits steam boiler fuel to natural gas.The Ministry of Economy, Trade and Industry recognized theefficiency of our plan and gave us a grant for the“Promotion of Natural Gas Conversion for Large-ScaleEnergy Consuming Facilities.” Fujifilm and our groupcorporations will promote fuel conversion to natural gas.

Reduction of Greenhouse Gas Emission

Fujifilm regards the preservation of clean water and air asthe foundation of environmental conservation. We payattention to water usage in our manufacturing operationsand pursue reduction measures at each of our workplaces.Fujifilm reduced both water usage and the amount ofwastewater discharged compared to the previous year,fiscal 2003. In the mean time, water usage and wastewaterdischarge are on an increase for the entire Fujifilm Group asthe business expands.

Reduction of Water Usage

Altogether, Fujifilm and seven major Fuji Xerox workplaces emit a littleless than 90% of the total GHG emissions by Fujifilm Group companies.The companies joined the “2003 Greenhouse Gas Trial TradingBusiness” hosted by the Ministry of Environment.As a result, we could obtain valuable information pertaining to accurateand comprehensive GHG calculations, and virtual trading. FujifilmGroup is currently contemplating emission management and our intra-group trading system based on the information gained.

Introducing Fuel Conversion at Our Fujinomiya Factory

http://www.fujifilm.co.jp/corporate/environment/activities/index.html

� Water Usage

Towards Global Warming Prevention and Water Usage Reduction

Environmental Measures at Workplaces

Our Efforts at Ashigara Factory

Commencing Fuel Conversion to AchieveGreenhouse GasEmission ReductionsThe Ashigara Factory in KanagawaPrefecture is producing a variety ofproducts, including colorphotographic film, photographicpaper, Fujicolor QuickSnap,photographic supplies (such asmovie film, and graphic arts film),and LCD materials (such asFUJITAC).This factory has been operating acogeneration facility to efficientlygenerate steam and electricity,but in April 2004, we convertedits gas turbine generation facilityfuel from heavy oil to natural gas. In doing so, we can expectto reduce GHG emissions from our private power generationfacility by about 30,000 tons annually. Ashigara Plant reducedGHG emissions from the previous year by 5% in fiscal 2003using energy conservation measures other than thecogeneration facility. Although the natural gas usage ratio atthe Ashigara Factory is about 1/3 of the total energy usage,we plan to increase it to 100% by fiscal 2010.

Efforts at Fujinomiya Factory

The Shimizu River, thewater source for theregional communities,runs through theFujinomiya Factory site inShizuoka Prefecture,making monitoring ofwater usage at thefactory especiallyimportant. SinceFujinomiya City is also amanufacturing region forpaper, there is a waterusage restriction for both aboveground and underground water.Whenever there is a drought or a lowering of the undergroundwater level, water usage suspension is ordered.The Fujinomiya Factory conducted a long-term survey of thecorrelation between rainfall and underground water level for waterconservation/usage management in 2003. They also developedunderground water level prediction software based on the surveyresults, and they actively promoted a water conservation campaignto reduce their monthly water usage by 5,000 tons.

GHG Reduction Efforts at Odawara Factory

We Have Constructed a New UtilityComplex in Order to Reduce GreenhouseGas Emissions.The Odawara Factory inKanagawa Prefecturemanufactures a variety ofproducts, includingrecording media (such asmagnetic tapes), as well asWV (Wide View) film forLCDs. Large amounts ofsteam and electricity arerequired for manufacturingthese products. Until wemade this conversion, wewere purchasing electricityfrom outside sources, andgenerated steam with a boiler fueled with heavy oil.In fiscal 2003, we incorporated a Thermal/Electric Variable CogenerationSystem, which uses the high temperature exhaust from a regenerativeexhaust processing facility to make power generation more efficient,reduce GHG emissions, and conserve energy. In doing so, we havecompletely converted to natural gas, reducing the impact on theenvironment. The New Energy and Industrial Technology DevelopmentOrganization (NEDO) provided us with a grant for Efficient EnergyUsage, which helped to defray the costs of fuel conversion.Furthermore, we have installed small multi-cylinder through-flow boilerinstead of a conventional large boiler for steam generation, and at thesame time attached an exhaust heat boiler to the regenerative exhaustgas processing facility to achieve better energy efficiency.

* With this cutting edge system (the world’s first), we not only recover the highexhaust heat from the volatile organic compound (VOC) processing facility assteam, but also utilize it to reheat gas turbine injection steam to gain very highpower generation efficiency.

80�

60�

40�

20�

0

(million tons)

2000 2003 (FY)

54.2

48.7 51.856.0

46.850.5

45.5

63.0 56.0

48.342.2

60.2

2001 2002

Usage

Emissions

Six Fujifilm domestic workplaces Consolidated


78.9

New Utility Complex

Six Fujifilm Domestic Workplaces Consolidated, both Domestic and International

Consolidated, Domestic

800

1,000

1,200

1,400

1,600

600

400

200

0

（thousand tons-CO2）

2001 200320021990 2000 (FY)

782617

907886801

851

965

1,392

813

967

1,414

� Transition in Total GHG Emissions

Shimizu RiverGas Turbine Power Generation Facility

* Method of Calculation: Starting this year, our domestic calculation will be based on“Greenhouse Gas Emission Calculation Guideline for Businesses” (tentative) publishedby the Ministry of the Environment. For overseas workplaces, we have complied withGHG protocol, and recalculated past records as well.

* We calculated CO2 emissions from energy consumption.

* Electric power is converted at 1kWh = 9830Wh according to the Energy Conservation Law.

* In calculating natural gas, city gas used in Japan was included in the total.


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Environmental Measures in Logistics Area


Environmental Measures at Yoshida Office

Since Fuji Xerox joined Fujifilm Group, Fujifilm combinedsubsidiaries in both organizations to establish FujifilmLogistics Co., Ltd. in April 2003. While Fujifilm Logistics Co.,Ltd. subcontracts out all distribution work; it will continueto actively conduct on-going monitoring of CO2 reductionmeasures as a key issue in its environmental considerationfor its distribution subsidiaries.The total CO2 emissions after Fuji Xerox joined the FujifilmGroup is shown in the graph on the right. Through the keyCO2 reduction measures, such as modal shifts, we managedto maintain a CO2 reduction rate of 1.6%. We will continueto strengthen these environmental measures in all areas oflogistics throughout the Fujifilm Group.

� CO2 Reduction Effort· Reducing the frequency of distribution· Improving the loading efficiency (double-layering,

multiple piles)· Modal shift*· Reducing the number of trucks by intensive destinations· Readjusting distribution route· Incorporation of large trucks (deregulated vehicles)· Alternative distribution methods (from privately owned

trucks to fixed route trucks, etc.)· Incorporation of low environmental impact vehicles

(compressed natural gas (CNG) vehicles)

Since Fuji Xerox joined Fujifilm Group, we have unified the distribution subsidiaries in both organizations toestablish Fujifilm Logistics Co., Ltd., to conduct environmental tracking in the area of logistics. We willcontinue to reevaluate shipping efficiency and reduce environmental impacts associated with packingmaterials.

� Actual NOx and PM Emissions

� Transition in the Total CO2 EmissionsReducing CO2 etc. by Improving VariousAspects of Shipping Efficiency

The Yoshida Office of Fujifilm Logistics Co., Ltd.delivers products by FUJIFILM Graphic Systems Co.,Ltd., a sales subsidiary of printing products, to a totalof 16 locations that include 15 distribution centers andone agent. In fiscal 2003, the two companiescollaborated together to incorporate “modal shifts” forthe cities of Sendai and Kyoto. In addition truck-basedtransportation had already been replaced by container-based transportation in the cities of Sapporo, Aomori,Hiroshima, and Fukuoka.The challenge in using modal shift is realizing container-based transportation and maintaining the existing levelof service while reducing expenses. Upon the

incorporation of modal shifts, we had results of a 56%CO2 emission reduction (82.5 tons/year), and a 15%reduction in distribution expenses. The two companieswill continue toexpand the “modalshift” to the rest oftheir destinations.

* Modal Shift: Changing the mode of traffic and transportation. Itespecially pertains to shifting distribution of cargo by trucks to thatby railroads and ships.

Glossary

Amount of NOx emissions (tons/year)

Amount of PM emissions (tons/year)

361.6 tons

27.8 tons

308.6 tons

23.6 tons

289.7 tons

22.3 tons

Fiscal 2001 Fiscal 2002 Fiscal 2003

�Note: Some values are speculated from the actual data.

(tons-CO2/year)

(FY)

Note 1: Annual data is reviewed to show the total between the two original companies.Note 2: Since the scope of the survey has been expanded, there is no continuity in comparison with the old data.

2001 2002 2003

40

50

30

20

10

0

45.901

39.325 36.921

CO2 gas emission reduction was calculated based on the distance traveled multiplied by the standard fuel economies derived from actual records at each of the subcontracting shippers, and the CO2 emission coefficient (provided by the Ministry of the Environment publication).

Container truck

1.62.0

1.2

0.80.4

0

(%)(tons-CO2/year)

(FY)

CO2 emissions reduction CO2 emission reduction ratio

2001 2002 2003

40506070

30

2010

0

0.8

1.6 1.6371.1

639.3 618.5

� Actual CO2 Emissions Reduction and Reduction Ratioafter Improving the Shipping Efficiency

CO2 emissions reduction (%) =CO2 reduction

Total CO2 emission + CO2 reduction ratio

(%)10

8

6

4

2

02003.5 2003.7 2003.9 2003.11 2004.1 2004.3

Domestic factory(production)

Packing center(wrapping)

Overseas factory(processing)

Reusing cardboard packaging material

1

1

2

2

3

3

Flow of reusing steel cases

Increasing the loading efficiency by 46%

Flow of cardboard box reuse

Reusing roll cores

Improvement in the loading method

Roll core

Folding type

Since the packaging material for the LCD and X-ray film bulk rolls used to be from wood or paper-based material, they were discarded on arrival without reuse. By changing the packaging material to a steel case, we made their reuse possible. Once the life of the packaging material is complete, it is recycled as a metal resource.

The roll cores of the film bulk roll for X-ray and graphic arts that is shipped to overseas factories are stored in cardboard boxes and returned to the Packing Center to be reused at the domestic factory. Originally, cardboard boxes were turned into recycled paper. However, we started returning them in the empty space of the containers for exporting raw materials to return to overseas factories so that we can repeat their usage.

Increasing the efficiency by improving the loading method

We incorporated the use of high-cube containers* when recovering shipping pallets for the color photographic paper bulk rolls from US factories. In addition we improved the loading method to achieve a 46% increase in the load size per container. We not only reduced the number of containers shipped, but also contributed in making domestic shipments more efficient while reducing CO2 emissions.

Reusing steel containers

* High-cube container:They are taller than regular container by 30 cm in order to carry tall bulky loads.

US factories

� Recycling and Reusing the Packaging Materials forExports

Fujifilm Logistics Co., Ltd. procures packing materials anddesigns packages so that products, raw materials, anddevices are shipped in an environmentally friendly way.Fujifilm Logistics Co., Ltd. conducts a more streamlinedpacking system as well as using fewer materials through the4Rs of environmental consideration: (1) Make packingmaterials recyclable (recycle); (2) Use the same packingmaterials repeatedly (reuse); (3) Reduce the amount ofpackage material (reduce); (4) Switch to materials with lessenvironmental impact (remake).As a part of these efforts, we have reduced the exportproduct packing materials for the Wide View (WV) film forLCD-film manufactured in Southeast Asia. Previously alarger amount of packing materials were used. The diagrambelow shows the much higher result change we achieved(8.9% higher reduction beyond our goal).We wil l continue to reduce packing materials andassociated environmental impacts from the viewpoint of the4Rs.

Reduction, Recycle and Reuse of PackingMaterials

Packing material reduction rate (%) =Reduced weight

� Transition in the Packing Material Reduction Rate(Cumulative Total)

Total material weight + Reduced weight

� Packing Materials Consideration· Packing material reduction by changing the packing

policies for master roll for color negative film, X-ray filmand graphic arts film.

· Reusing the cardboard roll core of the X-ray film masterroll

· Reducing the material usage by changing the width ofthe film wrap

· Reusing the packaging materials in WV film for export


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Prevention of Atmosphere, Soil and Water Pollution


In order to decrease chemical substance emissions, Fujifilmhas standards which are stricter than legal requirements andwe perform stringent chemical substance control. We alsoconduct surveys of chemical substance concentrations in theair around the factory using parameters designated by thePRTR law.Furthermore, we periodically monitor underground watersupplies to determine the pollution status of the soil andunderground water aquifers.

Fiscal 1995 We converted boiler fuel at the Odawara factory from bunker to bunker with less sulfur. Sulfur emissions were reduced. We installed a high efficiency dust collector on the smokestack as a measure to contain soot particles at the Ashigara factory.Fiscal 1998 We installed a wet-type electrical dust collector to the exhaust gas desulfurizer system at the Fujinomiya factory. SOx emissions were reduced.Fiscal 2000 Incineration of used solvent was abolished at the Odawara factory. SOx emission was subsequently reduced.Fiscal 2002 We converted to natural gas for CO2 and SOx emission reduction at the Fujinomiya factory.Fiscal 2003 We converted to natural gas for CO2 and SOx emission reduction at the Odawara factory.Fiscal 2004 We converted to natural gas at for CO2 and SOx emission reduction at the Ashigara factory.Fiscal 2004 We adopted low NOx burners for the boiler at the Yoshida-Minami factory.

Acc

om

plis

hm

ent

Conducting Environmental Monitoring

Each Fujifilm workplace is successfully conducting numerousmeasures for atmospheric pollution reductions such asthose resulting from fuel conversion to natural gas thatcontains very little sulfur. The recent measures taken andfuture plans are as follows.

Atmospheric Emission Reduction Measuresof Pollutants at Factories

Fujifilm conducts environmental surveys at each of theworkplaces regarding the emission of water pollutantsregulated by law, and strives to reduce the pollutants byestablishing voluntary control standards. As a measure forwastewater emission control beyond the amount requiredin regulation, each workplace has an emergency auxiliary pitinstalled to check overflow if needed.

Chemical Substance Emission Reductionfor the Water System

Fujifilm has stricter standards than required by regulations in their attempt to decrease chemical substance emissions intothe atmosphere, soil and water. In addition they exercise stringent control of chemical substances and perform thoroughenvironmental monitoring. We also conduct monitoring for chemical substance concentrations in the air, as well as forunderground water quality around the factory. We monitor substances designated by the PRTR law, as well as work toreduce emissions of those substances.

� Accomplishment and Plan

1000

800

600

400

200

0

(tons)


471 472396 398

2001 20032002

473

2000 (FY)

* We are currently using specified CFCs as refrigerant in some of the freezers for air conditioning. We are in the process of eliminating them.

Transition in SOx emissions

60

40

20

0

0.10

0.05

0

(tons)

20 2022

28

2001 20032002

28

2000 (FY)

13

25

Transition in the amount of soot particle emission

(tons)

0 0

CFC-12 (FY2003)

0.05

0.1

CFC-11

Amount of specified CFCs atmospheric emissions

1000

800

600

400

200

0

(tons)

703

922760

1015

2001 20032002

674

2000 (FY)

772881

Transition in the amount of NOx emissions

329 330

� Transition in Atmospheric Pollutant Emissions

400

300

200

100

0

(tons)

160

231 238

150

2001 20032002

204

2000 (FY)

400

300

200

100

0

(tons)

356

285 310

2001 20032002

275

2000 (FY)

317361

Transition in the amount of COD emissions

10

5

0

(tons)

6.25.2

2001 20032002

6.76.9

2000 (FY)

5.46.1

Transition in the total amount of phosphorus emissions

Transition in the total amount of nitrogen emissions

118143


� Transition in the Amount of Water Pollutant Emissions

* COD (chemical oxygen demand): An index indicating the degree of water pollution. It is theamount of oxygen consumed when the water pollutants (mainly organic pollutants) are oxidizedby an introduced oxidant.

Fujifilm Group voluntarily conducts environmental surveys forsoil and underground water pollution. Those substances usedat manufacturing workplaces with regulatory determinedenvironmental limits are monitored in underground waterperiodically in addition to conducting stringent usage/storagecontrol as well as surface drainage controls. We are preparedto deal with any pollution incidents in a timely fashion.

Measures at the Ashigara Factory and theOdawara factoryWe have detected substances above the al lowableenvironmental limits in the soil at Fujifilm’s Ashigara factoryand Odawara factory. Both factories promptly reported tothe appropriate government organization, an informationexchange was held with the community, and the site wasremediated by removing the contaminated soil andreplacing with clean soil. (Detailed data is covered in FujifilmEnvironmental Report 2002.)

Measures at Fuji Xerox Iwatsuki Center,Takematsu Center and Fuji Photo Optical Co., Ltd.

Fuji Xerox Iwatsuki Center and Takematsu Center, likewise,have completed the cleansing process.Voluntary surveys conducted at Fuji Photo Optical Co., Ltd.

Measures at Fujicolor Imaging Service Co., Ltd.The in-house inspection, Fujicolor Imaging Service Co., Ltd.that has been conducted since fiscal 2001, has foundsubstances above the environmental limits at its Osaka Plantin Sakai City. We reported this to the municipality in January2003, provided an explanation of the situation to theregional neighborhood committees, and promptly tookremediation measures including soil replacement tocomplete all required procedures by April 2003.

Surveying Soil and Underground WaterPollution Conditions and Cleansing

http://www.fujinon.co.jp/jp/news/repo.htm

in October 2000 found tetrachloroethylene andtrichloroethylene above the environmental limits in theunderground water within their property. Fuji Photo OpticalCo., Ltd. is now taking remediation measures and continuesto inspect well water in the regional residences whilecommunicating on a regular basis with the regionalcommunity. We have posted information and progress ofthis incident at our Fuji Photo Optical Co., Ltd. web page.

Results of Voluntary Inspections Centering on Manufacturing Workplaces

Fuji Photo Film Co., Ltd. Ashigara Factory

Fujinomiya Factory

Odawara Factory

Yoshida-Minami Factory

Miyanodai Technology Development Center

Asaka Research Laboratories

Fuji Xerox Co., Ltd. Ebina Center

Iwatsuki Center

Takematsu Center

Nakai Laboratory

Group company workplaces (three locations)

Fuji Photo Optical Co., Ltd.

Okaya Fuji Koki Co., Ltd.

Mito Fuji Koki Co., Ltd.

Sano Fuji Koki Co., Ltd.

FUJIFILM ARCH Co., Ltd.

Fuji Photo Equipment Co., Ltd.

FUJIFILM PHOTONIX Co., Ltd.

FUJIFILM Microdevices Co., Ltd.

Fuji Technics Co., Ltd.

Fujicolor Imaging Service Co., Ltd. Osaka Plant

Other workplaces (nine locations)

F. I. T. CO., LTD.

Workplace names Survey completion time Pollution condition Substance type Method of remediation Remediation status

2001/11

2001/3

2001/6

2001/3

2001/3

2000/12

1998/5

1996/3

2000/7

1998/8

2002/3

2001/4

1998/11

1997/11

1999/9

2001/11

2002/4

2001/10

2001/10

2002/3

2002/11

2002/11

2001/6

Yes (soil)

No

Yes (soil)

No

No

No

No

Yes (soil/underground water)

Yes (soil)

No

No

Yes (underground water)

No

No

No

No

No

No

No

No

Yes (soil)

No

No

B

B

A, B

A, B

A

B

A: Volatile organic compound (VOC) B: Heavy metals

Replaced soil

Replaced soil

Detoxified soil

Pumped water

Replaced soil

Pumped water

Replaced soil

Completed March 2002

Completed January 2002



Completed July 2001

Being Remediated

Completed April 2003

The results of voluntaryinspect ions conductedaround Fuj if i lm Group ’smanufacturing workplacesare indicated in the tableon the right.

Soil cleansing work

Monitoring underground water

Fujifilm Group is now installing all new above groundplumbing for ease of inspection and locating leakage, in orderto proactively deal with pollution. We are also proceeding withour plan to expose existing underground plumbing as well asinstalling backup plumbing for emergency purposes asneeded.

Proactive Measures against Soil andUnderground Water Supplies


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Activities


For the realization of a sustainable society, Fujifilm has beenapplying procedures with a goal of “recycling all wastematerials and totally eliminating waste incineration or theuse of landfills”, pertaining not only to industrial waste, butalso to general waste including company cafeteria foodwastes. Consequently, all of Fujifilm’s manufacturingworkplaces attained zero emissions in fiscal 2001, as did ourHeadquarters, branches and sales offices in fiscal 2002. Alldomestic group corporations have been conductingappropriate measures to attain zero emissions by the end offiscal 2003. Although, some of the workplaces could notattain the goal because municipal regulations requiredincineration, most of our workplaces attained the goal. Weshall try to realize more efficient recycling in the future.

Our Approach to Zero Emission

Fujifilm promotes zero emissions (*) towards the realization of sustainable society, including the recycling ofall the company’s waste materials. Furthermore, we are steadily advancing measures to reduce wasteproduction while maintaining the current level for waste material production as we seek ways to makeimprovements.

� Main Recycling Methods

Plastic (sorted)

Plastic (mixed)

Magnetic Tapes

Filters

Aluminum hydroxide

Inorganic Sludge/Grinding Fluid

Organic Solvent

Pallets, Pipes, Clothing, Insulation etc.

Blast furnace Agents



Alumina

Cement, Roadbed Materials,Construction Materials

Paint Thinner

Acid, Alkali

Mixed Burnable Waste

Fluorescent Lamps

Batteries

Food Waste, Organic Waste,Organic Sludge

Documents, Paper Boxes

Metals Including Steel,Aluminum, Copper

Neutralizing Agent

Solid Fuels, Power Generation, Water Heater

Glass Wool, Mercury

Zinc, Steel Refining

Fertilizer, Animal Feed

Recycled Paper

Metal Refining

Waste Materials Recycle Methods Waste Materials Recycle Methods

(thousand tons)

(FY)

Fujifilm Six Domestic Workplaces Consolidated

2001��

2002��

2003

70

60

80

90

100

50

40

30

20

10

0

* Six domestic Fujifilm workplaces attained zero emission by the end of fiscal 2001.

90.7

28.9 30.5 32.7

57.4

78.5

� Transition in Waste Generation

* Zero Emissions: Operations aim for zero waste materials by utilizingwaste materials to make raw materials and for energy efficiency towardthe realization of sustainable resources for society. Its definition maydiffer depending on the organization. Fujifilm defines it as recycling allwaste materials generated through business operations and eliminatingsimple waste incineration or landfill use.

Glossary

Collaboration with Waste Processing Contractors

The Waste Disposal Law requires that the companiesgenerating waste materials must accurately monitor howwaste materials are processed by contractors. Until recently,each workplace at Fujifilm had been monitoring wasteprocessing contractors independently. We are now startingto construct and operate a monitoring and evaluationsystem that will be a policy throughout the company. Thisnew company policy has the following characteristics.

Construction of the Companywide Monitoring andEvaluation System for Waste Processing Contractors

]

Activities Pertaining to Waste Emission


1. Since we will use unified evaluation items and standards, we willshare the evaluation results throughout the system. The fairness ofthis evaluation will be assured by having headquarters staffmembers present for their input.

2. When one contractor handles waste disposal from multipleworkplaces, we can make the monitoring task efficient by havingrepresentatives from one workplace present.

3. This makes it possible to make a database of the evaluation resultsto be referenced and utilized by each of the workplaces.

Although each of our workplaces has been working to reducewaste generation, due to the increased manufacturing of someproducts as well as the expansion in our business, we could notmanage to decrease the increasing trends in waste generation byFujifilm and Fujifilm Group as a whole in fiscal 2003. We shallrectify our measures to eliminate elements that caused the increase.

Fujifilm can utilize this system to share its evaluations alongwith specific improvement requests, as needed with thewaste processing contractors. Thus we can aim to elevatethe level of waste management and at the same time fulfillcorporate social responsibility. We plan to integrate anddeploy our evaluation standard and system with our affiliatecompanies.

Approach for Zero Emission

Collecting Silver and Plastic FilmThe Ashigara Factory and Fujinomiya Factory,where color films, graphic arts films, and X-rayfilms are produced, have the recycling contractorcollect the debris of photographic filmsgenerated in the process, and recycle them to bereused. These photographic films are separatedinto the raw materials, silver and plastic film*,through a special process and then reclaimedand refined to be used in the manufacturingprocess again.

Separating and Collecting Materials from DigitalMinilab DevicesWhen the product life of digital minilab devices has expired, theyare collected and sent to processing contractor to be separated andsorted into iron, stainless steel, copper, aluminum, general resin,vinyl chloride, circuit boards and wiring materials. Specializedcontractors then collect the metal parts to reclaim them to bereused for metal materials.General resins are transported to an iron refinery to be used as cokesubstitutes to refine iron ore. Use of general resin as a fuel reducesCO2 emission by 30% compared with standard coke. Vinyl chlorideis transported to special recycling contractor then crushed to makepellets to be reconstructed into vinyl pipes. They are used for raindrainage pipes for playgrounds and for sewage pipes. Specializedrecycling contractors collect used circuit boards to extract raremetals such as gold and palladium from the IC circuits also.

Composting Food Wastefrom CafeteriasFuji Photo Equipment Co., Ltd.collaborated with Fujifilm Cooperativeto process food waste at theircafeteria with a garbage processingunit to make bio-compost. Theyprocess approximately 6 tons of foodresidue per year. Most of theprocessed compost is distributed tothe regional NGOs and residents forfree, and the rest is used for vegetativeenhancement within the plant site.Similar activities take pace in manyother Fujifilm Group workplaces.

Reduction of Waste Generation

Appropriate Processing of Waste

�Zero Emission (Recycling)

→ →

* Photographic film mainly consists of plastic materialssuch as PET (polyethylene terephthalate) and TAC(triacetylcellulose).

GlossaryFujifilm is employing numerous techniques to facilitate waste reductionand it is seeking to increase the three vectors in the diagram above in abalanced equation.

� Collection and Recycling Flow of Silver and Plastic Films

Bio-CompostGarbage Processing Unit

Food Waste

Silver

Photosensitive Materials

Film Base

Photographic Film

Processing LossProducts

CollectionTo the customers

Cutting

CleaningCleaning Agent Plastic Pieces

Refinement

Drying

Plastic(pellets, chips)

Dissolving

Towards Reduction of Waste Generation

Sorting and Separating Digital Minilab Devices


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itizenKeidanren Nature Conservation Fund

Through Keidanren’s (Japan Federation of EconomicOrganizations) nature conservation fund, Fujifilm supportsNGO’s various nature conservation activities in the Asia-Pacificregion.

Social Contribution Activities

As a corporate citizen, Fujifilm strives to establish two-way communication with society and local communities. Bymaking these positive efforts to resolve issues we hope to learn through such communication since we aspire tobecome a company that society and local communities will trust even more. Fujifilm deems the promotion ofenvironmental education of future generations and the harmonious coexistence with local communities as two ofour biggest responsibilities for the future - and will fulfill these responsibilities.

Community Cleanup and Beautification Activities

Fujifilm mandates community cleanup and beautificationactivities at each establishment.

Regional Contribution and Communicationwith the Local Community

Desert Reforestation: Planting Activities

Fujifilm labor unioncoordinates volunteertree planting activitieseach year in China, insupport of the NGO’s“ReforestationProject,” which aimsto reforest the desertand prevent furtherdesertification. Duringthe Golden WeekHolidays in May 2003this activity wascanceled due to fearof SARS, but later inSeptember twomembers were sentto assist in thisproject. Also in 2004,11 members spenteight days (April 28ththrough May 5th) asa part of the “Fuji-Green Smile Seventh Troop” plantingtrees in Horqin Desert, China.

Factory TourExcursionsFujifilm conducts factorytour excursions at everyfacility. In October 2003,for example, a special40-year anniversary eventwas held at theFujinomiya Factory forthe regional residents, aswell as employees’families. In addition tothe factory tour, therewere various events andattractions such as: anhistorical photo exhibit ofthe Fujinomiya Factory; acommemorative groupphoto session; and abooth where a calendarwith a one’s own photocould be made. TheFujifilm employees had agreat time with theirfamilies and thecommunity residents.

Environmental Communication Meeting inMinamiashigara

The Kanagawa Prefecture and Fujifilm cosponsored an“Environmental Communication Meeting in Minamiashigara”in November 2003, where local residents, the government,and the corporations had a chance to participate in a factorytour, a seminar and a workshop in which opinions wereexchanged. The purpose of this meeting was to improve theregional environment, and to enable the participants tocommunicate and share information with each other. Therewere 70 participants in the factory tour and 130 in theseminar and the workshop most of whom were generalapplicants. Professor Masaru Kitano of the ShukutokuUniversity’s Department of Communications facilitated theworkshop, in which the participants engaged in an activedialog consisting of candid requests and comments as well asquestions. (Some of the comments were that the emissionsof chemical substances should be brought down as close tozero as possible and that the accumulation of the dischargedchemical substances over the years is worrisome. What ishappening with the contingency plan that includes the localresidents and why are exhaust fumes collected andincinerated separately were among the questions asked.)These issues were presented at this workshop, and Fujifilmrepresentatives thoroughly responded to each of them. Whilethe participants had the chance to gain an understanding ofFujifilm’s environmental activities, the company was able todiscover the needs and concerns of local residents makingthis workshop very meaningful. After this meeting, Fujifilmrealized how much participants desired this sort ofopportunity. For that reason, we wil l hold another“Environmental Communication Meeting” at the FujinomiyaFactory in October 2004. Although few corporations todayplan and implement such meetings, we at Fujif i lmacknowledge we are still at a trial-and-error stage, but weare actively planning future eventsthroughout our service regions. Theconcerns discussed at these occasionswill be considered in Fujifilm’s futureenvironmental activities.

“Photo Production Workshop” Tour ofElementary Schools in Minamiashigara City

The Ashigara Factory organized a “Photo ProductionWorkshop” where employees visited every elementaryschool within the city limits of Minamiashigara to teach fifthgraders about the three primary colors and the workings ofcolor photos. The employees, all participating on companytime, showed the children how the three primary colors areused to make a color photo by superimposing images ofdifferent colors. All the children watched at thisdemonstration with amazement.

Maintenance of the “Haruki Road”Sakae Haruki, founder of Fujifilm and anhonorary citizen of theMinamiashigara City,passed away at the age of101 during the year 2000.To honor his memory andcommemorate hisaccomplishments, Fujifilm and the City collaboratedto plant 101 cherryblossom trees by the Karigawa river bank. This area is called the“Haruki Road” and with the help of the community associationit is maintained by keeping the area clean and mowing the grassregularly, so that people may enjoy a pleasant walk along theroad.

Protection of Water Conservation Forests inKanagawa

The Kanagawa Prefecture promotes the “WaterConservation Forest Protection Program,” in order togenerate rich forests in the reservoir area for the nextgeneration as well as to maintain a steady source of high-quality water. The Prefecture also established a “WaterSource Forest Partner” system in 1998, and has beensoliciting contributions from Kanagawa residents andcorporations. Fujifilm has been contributing to this fundsince 2000, and our employees at the Ashigara Factory jointhe volunteer activities for forest protection as well.

Protection of Water Conservation Forests in Kanagawa Website:

http://www.pref.kanagawa.jp/osirase/suigen/index.htm

Watering the Seedlings

Social Contribution and Coexistence with the LocalCommunities


http://www.pref.kanagawa.jp/osirase/taikisuisitu/kagaku/prtr/taiwa/index.htmAshigara Branch Office　Agenda 　　　　　　　Event Date2003.10.4 Coalition of the “Clean Campaign” (at Oguchi Park in Minamiashigara City)

2003.10.19 South-side Labor Union: Volunteers Cutting Grass in Myojingatake2003.11.18～12.9 Year-end Contributions for Mutual Cooperation2003.12.25 Contributions to the Local Welfare Facility2003.12.13 Local Coalition: Year-end Contributions for Mutual Cooperation2003.12.13 Local Coalition: Year-end Traffic Safety Campaign2004.5.22 Minamiashigara City: Planting Beech Trees2004.6.5 Green Aid: with Miyanodai Branch Office2004.6.20 South-side Labor Union: Volunteers Cutting Grass in Myojingatake2004.7.5 Contributions for the Nuclear Bomb Victims

Odawara Branch Office　Agenda 　　　　　　　Event Date2003.11.23 Youth Club “Cradle Festival”: Helping the Charity Bazzar2003.11.17～12.8 Year-end Contributions for Mutual Cooperation2003.12 Calendar Sales of the Local Nursing Home2003.12.13 Local Coalition: Year-end Contributions for Mutual Cooperation2004.2.28 Music Club: Charity Dance Party2004.6.24～7.12 Contributions for the Nuclear Bomb Victimsaround the year Ladies' Club: Collection of Used Stamps, Spoiled Postcards, and Used-up Prepaid Card

Fujinomiya Branch Office　Agenda 　　　　　　　Event Date2003.9.20 Green Aid2003.11.1～12.5 Year-end Contributions for Mutual Cooperation2003.12.24 Meet the Santa2004.7.5～7.16 Contributions for the Nuclear Bomb Victims

Yoshida Branch Office　Agenda 　　　　　　　Event Date2003.10.19 Archipelago Clean & Clean Campaign2003.11.25 Labor-Management Co-Host Walking Rally: Green Aid2003.11.27～12.8 Year-end Contributions for Mutual Cooperation2004.7 Contributions for the Hiroshima & Nagasaki Nuclear Bomb Victims

Tokyo Branch Office　Agenda 　　　　　　　Event Date2004.7.6～7.20 Contributions for the Hiroshima & Nagasaki Nuclear Bomb Victims

Asaka Branch Office　Agenda 　　　　　　　Event Date2003.11.27～12.19 Year-end Contributions for Mutual Cooperation2004.5.22 Green Aid2004.7.1～7.16 Contributions for the Hiroshima & Nagasaki Nuclear Bomb Victims

Kansai Branch Office　Agenda 　　　　　　　Event Date2004.7 Contributions for the Hiroshima & Nagasaki Nuclear Bomb Victims

Miyanodai Branch Office　Agenda 　　　　　　　Event Date2003.10.19 South-side Labor Union: Volunteers Cutting Grass in Myojingatake2003.11.1～11.21 Year-end Contributions for Mutual Cooperation2003.12.25 Year-end Contributions to the Local Nursing Home2004.5.22 Yagurazawa: Planting Beech Trees2004.6.5 Green Aid: with Ashigara Branch Office2004.6.20 South-side Labor Union: Volunteers Cutting Grass in Myojingatake2004.7.5 Contributions for the Nuclear Bomb Victims

Professor Masaru Kitano, the Facilitator

Mowing the Grass at the Haruki Road

Employees Enjoying the TimeTogether with Families and

Residents

Poster of the Factory Tour Excursion

Keidanren Nature Conservation Fund Website:

http://www.keidanren.or.jp/kncf/

“Fuji-Green Smile Seventh Troop” with Local Children

Scene from the Workshop


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Educational Activities Other Activities

Environmental Interactive Workshop: “CitizensSupport for the Eco-Business”Fujifilm was a part of the interactive workshop “CitizensSupport for Eco-Business: Reality of EnvironmentalCommunications,” held at the Kyoto Municipal “MiyakoEcology Center” for Promotion of Environmental Protection inFebruary 2004. This workshop was held for citizens, thegovernment, and corporations to raise awareness of othersabout environmental issues, and to build trust-based partnerrelationships. At this interactive workshop, Fujifilmrepresentatives not only reported on the details of the GreenPolicy activities, but also had the chance to actively engage in aQ&A session with the citizens where ideas were exchanged.The workshop was a great opportunity for all participants torealize and learn about the different positions on theenvironmental issues.

Supporting the Kids ISO

Kids ISO (Kids’ ISO1400 Program) is an environmentaleducation program for children, promoted by the InternationalArt & Technology Cooperation Organization (ArTech). In thisprogram, children of various regions and countries form anetwork through a common theme: the environment. In theend, this activity will lead to an international understanding, as well as theconfidence inchildren that theirefforts can indeedmake a differencein the environment.Fujifilm supportsKids ISO for itsgreat educationalvalue.

Special Summer Event: “Chemistry Makes OurDreams Come True”In August 2003, a special summer event, “Chemistry MakesOur Dreams Come True” was held at the National Museum ofEmerging Science and Innovation in Tokyo. FujifIlmparticipated in this event by providing a booth entitled “Let’sMake Color Photos,” for the purpose of having the childrenexperience the joy of chemistry with photography. Fujifilmresearchers performed hands-on experiments with thechildren, showing them how the three primary colors of lightmake a photo. We have received several feedback commentssuch as: I didn’t know that so many colors are made from justthree primary colors. What a surprise! from a grade-schooleras well as I’m a high school science lab assistant, and I felt thatthe explanations were easy to follow and very informative. (Fujifilm also participated in the “Gunma Chemistry Show,”which entertained 4,120 guests during a four-day-period inAugust 2003, with the same theme and content.)

Supporting the Green Map System

The Green Map System, known in over 40 countries aroundthe world, uses the “Green Map Icons” to createenvironmental maps. Fujifilm cosponsored the “FutureGreen Map Project” so that maps created with Green MapStarter Kits could be released internationally over theInternet. Fujifilm plans to fully support this activity and theGreen Map System since the creation of the Green Mapscan give children an incentive to learn about and considertheir environment.

EcoProducts

Fujifilm participated in “EcoProducts 2003” in December 2003,one of the largest environmental exhibitions in the country.There we introduced several of our products in hopes of raisingawareness of Fujifilm’s environmental activities during theirproduction processes.Some of those products were:• “Fujifilm QuickSnap” - Disposable camera produced using

the cyclic manufacturing• “FinePix” - Digital camera designed to save energy• “Fujifilm Instax Mini 10 Printer, NP-1”

- Printer for built-in cell phonecameras to save energy

• “Princiao” - Waste-free printer

Sponsoring Activities

Sponsor of 2006 FIFA World CupTM GermanyFor the seventh time Fujifilm was awarded a contract byFIFA to become a sponsor of world soccer events, includingthe 2006 FIFA World CupTM Germany.Fujifilm has continuously been a sponsorof FIFA World Cup series since the 1982FIFA World Cup Spain. Fujifilm hopesthat through this tournament, people allover the world will come to know howmuch fun, joy and pleasure photos canbe when shared with others.

“Forests Forever” Website Available

We wish to protect theprecious and beautifulforests into the future.With cooperation of photographers who support suchsentiment and expertsactive in differentfields, Fujifilm unveileda new website calledthe “Forests Forever”in April 2004. We willmaintain this site as a

valuable and fun “place to be” for the people around theworld, so that it can be enjoyed and loved for a long time tocome.

Pink Ribbon Campaign

Fujifilm backs one of thebreast cancer awarenessmovements, the “PinkRibbon Campaign.” Thiscampaign is a socialmovement that aims to eradicate breastcancer by raising interestand awareness ofJapanese women aboutthis disease and theimportance of routine

check-ups for early detection and treatment. At the “PinkRibbon Festival” in October 2003, Fujifilm co-sponsored aspecial event, the “Smile Walk,” in which 160 of our ownemployees participated.

From Fujifilm Website

http://www.fujifilm.co.jp/fms/mam/index.html

Pink Ribbon Festival

http://www.asahi.com/pinkribbon2003/

http://greenmap.jp/

http://greenmap.jp/mirai/

http://greenmap.jp//mirai/susumekata.html

http://www.forests-forever.com/

Social Contribution and Coexistence with the LocalCommunities


Asahi Shimbun: Advertisement Listing

Materials included in the Green Map Stater Kit

The Staff

Participants in the Smile Walk At the Fujifilm Booth

Main Sponsoring Activities This Year

FIFA World CupFrench Open TennisUS Open Tennis

Figure Skating

(including the World Championship)

Tokyo Disneyland: Buzz Lightyear’s Astro BlastersTokyo DisneySea: The Magic Lamp TheaterUniversal Studios Japan: Jurassic Park - The Ride

Children Dazzled by Changes inFilms and Colors

At the Fujifilm Booth

Tokyo Disneyland®

On April 15th, 2004, anopening ceremony washeld for a new TokyoDisneyland attraction,“Buzz Lightyear’s AstroBlasters” presented byFujifilm.

Forest Forever web page

Kids ISO Brochures

Pink Ribbon Campaign web page insideFujifilm website

FUJIFILM is an official sponsor of Tokyo Disneyland.The “Buzz Lightyear’s Astro Blasters” features themes from the ©Disney/Pixar movie,“Toy Story.”

Buzz Lightyear’s Astro Blasters©Disney/Pixar


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S dSweden

Belggiumm Germany

ItalyItalyyFraancee

Spain

United Arab EmiratesArab Emirate

China

India

Thailanhailana d

Malaysia

Singapore

Korea

Japan

Philippines

AustraliausA

aCanadaC

The UnitedStates

Brazil

NetherlandsetherlanEnglandd

Fuji Photo Film China Investment Co., Ltd. Donates Medical Supplies to the Ministry of Health People’s Republic China for The Battle against SARS

Fuji Xerox Volunteer Group “Hasu Club” Builds an Primary School Building in Cambodia

Fuji Photo Film.Inc.

oMexicoTaiwan

South AfricaSou

In conducting business activities overseas, Fujifilm makes sure to ”value the regional characteristics,honor the culture of the region and nation, and act accordingly.” We are a corporate citizen whichconducts its business operations and contributes to the local economies and cultures.

Overseas Activities


Business Sites

Netherlands (Tilburg)

Germany (Kleve)

England (Hertfordshire) USA (Illinois)

USA (South Carolina)

Europe The United States

China (Shanghai)

China (Sanhe)

China (Suzhou)

Other Asian Sites

“Hasu Club”* is a volunteer organization within Fuji Xerox consistingof its employees, directors and retirees. This organization, comprisedof four groups, welfare, culture and education, environmentalprotection, and international aid, carries out social contributions ineach of these areas.In 2004, the international aid group assisted in the construction of anelementary school building with five classrooms for Phoum Prah AngPrimary School at Kampong Cham Province in Cambodia. This wasdone to initiate a long-term interpersonal exchange with the localcommunity and its children by providing educational opportunities forAsian children. Through this social contribution we helped secure aplace of education for children who had to commute a long distancesince they lacked local facilities. “Hasu Club” is also going tocontribute to a wide range of other community activities such assports events, art and music events, the introduction of Japaneseculture, school cleaning, star gazing, nature appreciation, etc.

* At “Hasu Club” members voluntarily donate the remainder of their paycheck after

dividing the amount by 100 plus any multiple of 100 yen to be used for welfare, culture

and education, environmental protection and international aids.

Yasukuni Watanabe, the president of Fuji Photo Film, Inc. inGreenwood, South Carolina (currently a Fujifilm senior counselor),received the 2003 South Carolina Ambassador for EconomicDevelopment for Greenwood Award. This award was given inrecognition of Fuji Photo Film, Inc.’s contribution toward thedevelopment of the local economy. Fuji Photo Film, Inc. belongs to thisorganization to contribute to the economic development ofGreenwood and to the state of South Carolina. Fuji Photo Film, Inc.shall continue with its activities in conjunction with the regioncollaborating with other local businesses in South Carolina as well.

Fuji Photo Film China Investment Co., Ltd. donated medical supplies valued at one million yuan in 2003, including a digital X-ray image diagnostic system, "Fuji Computed Radiography (FCR)", a dry type image recording printer "DryPix 3000", andmedical-use X-ray films (equivalent to one million yuan) to the Ministry of Health People’s Republic China for their battleagainst SARS.FCR is a system to record X-ray image information on an imaging plate (IP) and process the image digitally according to thetype of diagnostics. It contributes to an increased detection of subtle changes in diseased lungs during chest X-rayexaminations. The Ministry of Health People’s Republic China gave a certificate of award for this donation in May 2003.

Award ceremony at Columbia, the state capital of South CarolinaFrom the left: South Carolina Governor Sanford, President Watanabe andMr. Faith, Secretary of Commerce (all titles as of May 2003)

Children Looking forward to the Completion of thePrimary School Building

China (Shenzhen)


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The Projects Receiving Grants in Fiscal 2003

Grants for Green Conservation and Utilization Researches

Sustained Conservation andUtilization of Rare Forest

Ecosystem at Kerama Archipelagoin Okinawa Prefecture

Little known rare species such as Keramadeer (Cervus nippon keramae), Japaneseblack wood pidgeon (Columba janthina)and Ryukyu robin (Erithacus komadori)are found in the Kerama archipelagolocated on the west side of Okinawa’smain island.This research is directed towards thecontinued conservation and health ofthis precious natural environment of theKerama archipelago in the forestecosystem, by determining the habitatconditions and its ecologicalrequirements.

Nature Appreciation Activities Funding

Minamishiraitodai Fuchu CityElementary School in Tokyo

PrefectureWaterside School Project

The concept of the project is restorationof the water region near the old gorgefor the children to have natureappreciation studies. Children, facultymembers and local volunteerscooperated together to create Japanesehorseradish paddies, water channels,reservoirs and rice paddies using groundand surface waters so that importantwater organisms may l ive in theecosystem. Repopulation of the rareJapanese killfish (Oryzias celebensis) andJapanese firefly (Luciola lateralis) is alsoa part of their plan.


Protection Project for SpringGoddess at “Yamanba Forest”

Swallowtail butterflies, nicknamed inthis region the “Spring Goddess” arealmost extinct.This project intends to restore the localenvironment in the regional mountainsto encourage reproduction of the SpringGoddesses so that “Yamanba Forest willbe Dancing with Spring Goddesses.” Tothis end, they have been protecting theswallowtail butterflies and their habitats.


Forestry School

Forest Making Group “Satonet” (Saitama Prefecture)Yamanba Association (Shiga Prefecture)Minamishiraitodai Fuchu City ElementarySchool, PTA (Tokyo Prefecture)

Akira Endo (Okinawa Prefecture)

Satonet started its forestry volunteeractivity in 1993. They have beenworking on a 10 year long Konara(Quercus serrata) forest reforestationplan for the past seven years. We arejust beginning to see significantprogress this year.They will continue with the protectionof old growth areas as well asgermination from old Konara trees innew areas.

We have sent questionnaires to groups and individuals thatreceived grants for the 45 past projects between 1984 and1993. According to the questionnaire results, many of themnoted that they started out very small, but after receiving

FGF grants, local communities and municipal governmentsrecognized their project and their support increased.

Follow up of the Past Projects

FGF publishes their newsletter “Green Letter” once a year. Lively responses by thepeople and groups receiving grants are posted. The 25th Green Letter publication(20th anniversary issue), focuses on the past, present and future of FGF activities.Descriptions of FGF activities and grants are posted on Fujifilm website as well.(FGF activities were introduced on Kankyo-goo TV at environmental portal site “Kankyo-goo.”)

Information Disclosure by FGF

8)

1)

2)

3)

4)

5)6)

7)

Yes53% (23)

No47%(20)

1)Up to 500,000 yen (9)2)Up to 1 million yen (2)3)Up to 2 million yen (3)4)Up to 3 million yen (2)5)Up to 5 million yen (1)6)Up to 10 million yen (2)7)More than 10 million yen (2)8)No answer (2)

No9% (4)

No answer7% (3)

Yes84%(36)

No14% (6)

No answer2% (1)

Yes84%(36)

� Did you receive a grant from anotherorganization?

� Did you accomplish the purposeof your project or research forwhich you received the grant?

� Are you still continuing with theproject or research for which youinitially received the FGF grant?

Green Letter No. 25

This chart is created based on the 43 answers from the questionnaire.

Green Letter No. 24

http://www.fujifilm.co.jp/corporate/environment/socialcontribution/index.html


1. Building Forests for the Future

Fiscal year 2003 marks the 20th anniversary of Fujifilm Green Fund (FGF).Twenty years ago was Fujifilm’s 50th anniversary of its foundation. Back then, we were looking for a way tocontribute to society in a new way. As a conclusion of our search, we decided to put our monetary resources insomething meaningful, by securing a 1 billion yen fund for conservation and restoration of the naturalenvironment. Thus FGF was founded in 1983. It was the first public trust sponsored by a non-governmententerprise in Japan which has the theme of nature conservation.In the past 20 years, FGF supported many worthy causes. FGF intends to continue to fund various conservationprojects including “Building Forests for the Future.”

Fujifilm Greenery Fund


Four Project Areas by FGF

In order to make the best use of its fund, FGF receives inputfrom its supporters in terms of its operation andadministration. In the past 20 years up until fiscal 2003, thetotal amount of funds given away amounted toapproximately 630 million yen.Currently we are supporting the following four project areasdomestically in Japan.

How FGF Is Run

FGF funds activities aimed at forest restoration in suburbangreen spaces so that residents can enjoy nature. FGF hassupported those activities over a long term and has seengreat success.

The phase I fund was given to the “Maioka Water and GreeneryAssociation.” This is a citizens group at Totsuka Ward, Yokohama City. Theproject is now nicknamed “YatohitoMirai.” They completed and openedMaioka Park (right) in 1993. Thephase II fund was given to the“Torai School.” This is a local youthorganization at Hinohara Village,Tokyo Prefecture. They opened Fujino Mori forest to the public in 1990.

3. Nature Appreciation Activities FundingFGF supplies grants for activities by individuals and groupsthat try to nurture and conserve vegetation in an effort tocreate opportunities for other people to enjoy plants andanimals.

4. Grants for Green Conservation andUtilization Researches

FGF supplies grants for activities by individuals and groupsthat conduct practical research to conserve and appreciatethe natural environment, as well as research to improvethe plant communities in green spaces.

2. Support Activities for Greenery Projects

FGF conducts various activities to help people understandthe scope of their projects including photo exhibits andsymposiums. For example, the annual “nature trailobservation” contest that wasstarted in 1984 has been greatlyaccepted by students of all ages.

In this contest, students present natureobservations through pictures and essays.Many teachers have told us that they usethis contest as a part of children’s summervacation homework projects. The picture onthe right shows one of the award winning“observation” projects in the 2003 seniorhigh school division.

TrusteeAdministration

Ministry of the Environment

Permit for

establishment /

managem

ent Decisi

on-m

aking

over

key i

ssues

ConsignerFuji PhotoFilm Co.,Ltd.

Asset contributionTrustee

The Chuo Mitsui Trust and Banking

Co., Ltd.

Project executionEntities

Receiving Grants

Puttin

g tog

ether

appli

cation

mate

rials t

o

be re

viewed

, esta

blishm

ent

of the

plan

Agreement over

key issues

(Directives, advices)

AdministrationNational Park Federation

Japan Wildlife Research Center

Steering Committee

� How FGF Is Run

Work by Yoshika Okawa ofKanagawa Prefecture

Rice planting by the children fromaround the world


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Creating a Comfortable Workplace


(%)

(Year)0

1999 2000 2001 2002 2003

2.01.81.61.41.21.0

1.411.59

1.68 1.70 1.77

� Transition in the Hiring of the Handicapped

2001

52 45 50

2002 2003

� Transition in the Number of Newly ReemployedRetirees

Yoshida-Minami Factory

We established a laundry center to launder employee’suniforms in 1982 as a part of our program to hire thehandicapped employees. We currently have three handicappedemployees at this center. Since we have a hearing impairedemployee, we have installed a rotating light to announce theend of thewash cycle aswell as a safetyswitch for thepress iron.

In Preparation for the Aging SocietyFujifilm has a post-retirement reemployment program foremployees who can contribute to the business aftermandatory retirement, provided they express their wish tokeep working. Reemployment of the mandatory retiree iseffective in passing down their wealth of experience andskills to future generations. Reemployment contracts arerenewable every year, and if the employee wishes and thecompany agrees, he/she can work until age 65. Wereemploy about 50 new retirees every year.Also, we have been holding Life Design Seminars foremployees over 53 periodically since 1998. Life DesignSeminars give individuals an opportunity to think about lifeafter retirement. Participants have expressed theirimpression of the seminar in this way: “I only had a vagueidea about retirement before. With the to-the-point advice Iwas given, I can now think about my retirement moreclearly.”

The average number of paid holidays taken was 15.5 infiscal 2003. Fujifilm has a program for its employees to

� Life Design SeminarLife Design Seminars consist of three sessions. The seminar is held onthree consecutive days (Friday, Saturday, and Sunday). Employees can usetheir refreshment holiday or (when applicable) life plan holiday on Friday.1. Health SessionA health specialist gives guidance on general topics, such as healthmanagement, nutrition, exercise, and lifestyle, as well as individual advicebased on health data and eating habits.2. Home Economics SessionThis session helps participants understand lump-sum expenditures forthings such as taxes, insurance premiums and house remodeling. It alsohelps participants think about the lifelong economic plan based on theirretirement payments and pensions.3. Life Plan SessionBased on the first two sessions, participants communicate with eachother and think about their own life plan.

� Care Design Support (at Benefit Society)Care design support offers consulting at the office as well as by phoneconsulting for employees in remote regions. The care design supportprocess lasts six months. For example, if an employee’s parent is suddenlydischarged from the hospital, knowledgeable specialists offer individuallytailored advice until the person can start using the care insurance.

Eligible applicants:Employees (union members, etc.), employee’s spouse, and immediatefamily of an employee or an employee’s spouse

Persons eligible for nursing care:Employees (union members, etc.), employee’s spouse, and parents ofan employee or an employee’s spouse

Paid Holidays/Accumulated Holidays Program

Fujifilm permits leaves of absence for the purpose of givingnursing care. For every person requiring nursing care, aemployee can take a leave of absence up to one year long.He/she can take multiple leaves of absence per personrequiring nursing care as well. In consideration of family-friendliness and Japan becoming an aging society with afalling birthrate, we have incorporated various nursing careloan programs.Fujifilm’s benefit society provides a nursing care expenseprovision program as well as a nursing care consultationservice, “care design support” by an outside specialist (caremanagers). Also, in 2004, the Fujifilm Health InsuranceUnion officially joined the “Fureai Nursing Care Classes”program currently run in collaboration with 39 other healthinsurance unions.

Program to Support Nursing Care

Supporting One’s Fulfillment in BothWorkplace and Home

Fujifilm supports employees who must leave the workplacefor childbirth or child rearing. We have programs thatemployees can take advantage of after childbirth, such asschool loans and household helper assistance program.Employees can take a maternity leave from seven weeksprior to childbirth to eight weeks after their baby is born.Also, it is possible to receive a childcare leave of up to twoyears long until the child becomes three years old.

Programs to Support Child-Rearing

� Transition in the Number of Employees Taking NursingCare Leave

2001

3 3

2002

14

2003

� Fureai Nursing Care Classes (Offered by theHealth Insurance Union)

Fureai nursing care classes aim to prevent or delay becoming bedriddenor senile, and to prolong healthy living. To this end, the Fureai CareProgram Promotion Group is hosting Fureai Nursing Care Classes forinsured employees and their family members. Up to two people perinsured employee can participate in these classes. The Health InsuranceUnion pays the class fee.

accumulate unclaimed holidays up to 60 days with noexpiration period. Employees with special considerations,such as those suffering from an injury or illness, having tocare for a family member or doing volunteer work, can usethese accumulated holidays. (In the case of caring for thefamily or volunteer work, one can take up to 15 days at atime.)

Facility Considerationand Activities

In order to keep up with recent changes in the businessenvironment, Fujif i lm regards not only the officialemployees but also unofficial employees as its stakeholders.We consider the total work environment for our employees.We have indicated the breakdown of Fujifilm’s work forceand number of years worked for each generation. AtFujifilm, female factory employees have a tendency to worklonger than male factory employees, their averages being22 to 21.1 years respectively.

Work Environment Status of Employees

Fujifilm believes mutual respect and trust between the Corporation and its employees is important in maintaining a goodworking environment. The Corporation and employees together strive to create an environment where employees canwillingly perform their best. Fujifilm also wishes to support personal happiness in providing jobs to our employees. Wehave prepared various programs and facilities to support individuals so that every one of us with different genders,physical wholeness, nationalities, values and religions can fulfill his/her own potential.

� Breakdown of Employees (as of 3/31/2004)

Over 30 years 35.0%

Less than 30 years 7.0%Less than 25 years 13.8%

Less than 20 years 10.7%




� Number of Years Worked (as of 6/15/2004)

� Transition in the Number of Employees Hired andBreakdown of Work Types

(%)

Males younger than 30

100

80

60

40

20

0

69.3

Males in 30s

70.1

Males in 40s

Males over 50

82.1

Females younger than 30

81.1

Females in 30s

84.3

Females in 40s

86.8

Females over 50

86.3

73.7

Gender and age group of the employees that answered “Yes”

� Perception Survey “Are you happy working forFujifilm?”

� Example Cases at Each Workplace

Employment Status

Promoting the Hiring of Handicapped Employees

Fujifilm is aggressively carrying out the hiring of newlygraduated applicants, in order to nurture personnel andtrain our next generation of leaders. Also, in terms oftechnological development, we incorporate skills of outsideexperts to help our corporation and work force grow byactively accepting job transfers as well. Although there arestill few female managers at Fujifilm, we continue to pursuethe promotion of female employees. As a result, thenumber of female managerial candidates is increasing.According to the perception survey conducted by the laborunion 2003, more women than men answered “yes” to thequestion, “Are you happy working for Fujifilm?”

Fujifilm is consistently working to hire handicappedemployees in collaboration with members of theHandicapped Employee Employment Promotion Committee.We try to grasp each individual’s aptitude, actively create asafe and comfortable workplace where they can attain theirfull potential, and support their achievements in variousareas.We also try to support mentally handicapped employees bylisting up individual tasks, and providing detailed guidelinesto help them learn their work step by step, so that they canperform to the best of their ability. We currently have fourmentally handicapped employees. They are all adjusting totheir workplaces very well and are working hard. Each ofour factories at our workplaces have prepared specialfacil it ies to help the handicapped work safely. Ourhandicapped employment rate was 1.77% at the end offiscal 2003, which is still below the legally required rate of1.8%. We will continue with our efforts to hire morehandicapped employees.

Odawara Factory

Facility Considerations Barrier-free automatic doors, staircase handrails andelevators indicated in Braille, elevators accommodatingwheelchairs, and toilettes with automatic flushing andrailings

Asaka Technology Development Center

Facility Considerations Wireless emergency alarm for emergency alert, rotatingalert lights, whiteboard for communication.

Activities Seminar by a sign language interpreter for all employees,sign language classes held twice a month in eachdepartment with hearing impaired workers

Employment and Equal Opportunity

* Rounded off to one decimal place

9,603Official

employees89.0%

Managers : 11.6%

Males : 60.7%

Females : 16.6%

Rehired retirees : 0.7%

Temporary employees : 9.2%

Part-timers : 0.6%

Short-term employees : 0.4%

Others : 0.2%

1,193Unofficial employees

11.0%

Plan/technical work2001

Clerical/skilled work





Newgraduates

143 62 205

9 22 31

Job transfer Total

179 32 211

8 67 75

134 55 189

9 82 91


Creating a Comfortable Workplace


Fujifilm grants a leave of absence up to one year long forgeneral volunteer activities, and up to two years and sixmonths for those joining the Japan Overseas CooperationVolunteers.

Leave of Absence for Volunteer Activities

Fujifilm provides overseas safety and hygiene informationover the intranet to protect the safety and health of supportfor overseas employees. We also link to overseas safety webpage of the Ministry of Foreign Affairs to urge support foroverseas employees to be aware of their own safety andhealth. The labor union also conducts a “Send Japanesebooks to Fujifilm expatriates” volunteer program.

Support for Overseas Employees

� Supporting Childbirth and Child-Care (by BenefitSociety)

When an employee has a childThe benefit society helps workers take advantage of the home helpprogram by compensating for the registration fee as well as half of thedaily home helper expence, up to 80% of the agreed basic helpercharge including overtime pay.The benefit society also compensates for the reduced pay during thematernity leave.

When an employee’s wife has a childThe benefit society compensates for the registration fee as well as halfof the daily home-helper expense, up to 80% of the agreed basichelper charge including overtime pay.

� Children’s School Loans (by Benefit Society)Benefit Society supplies interest-free school loans up to one million yenfor children over junior high school age.

� Sexual Harassment HotlineFemale counselors consult employees with full consideration of theirprivacy. If the client wishes to withhold her identity, she may receiveconsultation anonymously without causing any action by the company. Ifthe client wishes for the company to resolve the issue, the sexualharassment hotline counselor makes a report tothe company, and the company promptly takesappropriate action to resolve the issue whilestrictly protecting the client’s privacy.Fujifilm distributes sexual harassment preventionguideline booklets to all employees containingprevention measures or action guidelines forincidents of sexual harassment, where to go incase it occurs, and how the company will dealwith the issue. Fujifilm promotes awareness forboth potential victims and offenders so that wecan eliminate sexual harassment.

The labor union is actively pursuing three priority measuresin the labor union’s medium- to long-term vision, namely“autonomous working style”, “safe working environment”and “being energetic throughout one’s career”. The laborunion believes that corporate development is vital forrealization of the union members’ fulfillment. Based on thisbelief, the labor union actively cooperates with Fujifilm’sadministrative policies and corporate activities, and sharesthe challenges in the Fujifilm Group’s VISION75 medium-term management plan. The Fujifilm Group and the laborunion believe that management and labor working inunison can solve all problems. Fujifilm and the labor unionshare a mutual understanding that having a strong andtrusting relationship between management and labor,which they have been building, is vital. Consequently, theyactively create opportunities for communication. Theseinclude labor-management conferences, the central labor-management committee, labor-management expertscommittees, etc., and they are working towards the revisionof overall working conditions.In fiscal 2003, management and labor discussed and agreedupon revising overall working conditions (wages, bonuses,etc.), workers’ benefit programs, housing allowance,incorporation of F-PRO program (new working conditionsand benefits), as well as partial revisions of laboragreements and various regulations. (Revisions of the

housing allowance and incorporation of F-PRO programwere executed in fiscal 2004.)

Management and Labor CollaborationFujifilm respects basic human rights as a prerequisite formutual understanding of employees, and vows never toviolate the human rights of our employees. We also educateemployees never to discriminate against gender, nationality,religion or physical wholeness, and strictly manage personalinformation to protect employee’s privacy.In addition to the in-house personnel and labor departmentconsultation office, Fujifilm has a sexual harassment hotlinewhere employees can consult with a special outsidecounselor by phone. All 25 of the domestic groupcorporations take part in this project and aggressivelypromote its cause.

Respecting Human Rights and EliminatingDiscrimination

� Transition in the Number of Employees Acquiring theChild-Care Leave

2001

57 55 53

2002 2003 � Labor-Management Discussion towards Revision ofOverall Labor Conditions (Wages, Bonuses, etc.)

Date held Discussion Participants Topics

� Central Labor-Management Committee

� Labor-Management Experts Committees

Date held Participants Topics

2004.4.12

2003.12.4

From Management:President, 6 corporate vice presidentsand 2 senior managers

From Labor:14 central executive committeemembers

Briefing of the currentadministrative status(management)Reports and suggestions by thelabor (labor union)

2004.5.6

First Labor-ManagementDiscussion

Second Labor-ManagementDiscussion

From Management:President, 6 corporate vicepresidents and 2 seniormanagers


From Management:President, 1 corporate vicepresident, 2 senior managers


Briefing of the currentadministrative status(management)

Rationale for the bonusamount (labor union)

Labor-managementagreement over the bonusamount and other topics

* In addition to the above, labor-management discussions are held periodically by therepresentatives.

The Wage Experts Committee, Working Regulation ExpertsCommittee and Overseas Issues Experts Committee meetperiodically and provide a place to hold discussions involvinglabor and management representatives.

* Labor-management committees meet at every workplace as well.


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Creating a Safe Workplace


Under the motto, “Safety as Our Top Priority”, Fujifilmstrives to secure company-wide labor safety for theemployees. For example, labor and management cooperatetogether to conduct safety patrols at workplaces in order toprevent disasters and promote organizational deploymentof labor safety measures.We also promote prevention of lifestyle-related illnesses, aswell as mental health care, from the viewpoints of healthmaintenance, prevention and early detection of illnesses.Fujifilm and an organization of in-house doctors constitute acompany-wide physical and mental health committee thatcollaborates in order to promote mental health educationand the prevention and early detection of illnesses.

Labor Safety and Health Management

Fujifilm considers labor safety to be the fundamental prerequisite of our manufacturing activities. Webelieve safety must be at the foundation of corporate environmental quality and productenvironmental quality. We also believe that ensuring our employees’ health must be an ongoing themethat must be dealt with by both individual employees and the Corporation.

Manufacturing industry*1

Chemical industry*2

Fujifilm (at six workplaces)

02001 2002 2003

1.2

1.0

0.8

0.6

0.4

0.2

0.43

0.22

0.97 0.98

0.49

0.07

0.98

Labor accident ratio = × 1,000,000Gross number of

hours worked

Number of labor accident victims

0.36

*1 Safety index by the Ministry of Health, Labor and Welfare, Labor Standards Bureau From industry-wise accident ratio

*2 From Japan Chemical Industry Association’s labor safety and hygiene survey

0.14

� Labor Accident Ratio

Labor accident intensity = × 1,000Gross number of

hours worked

Total number of work days lost

02001 2002 2003

0.20

0.15

0.10

0.05

0.08

0.007

0.10

0.01 0.01

0.120.100.11

0.09

� Labor Accident Intensity

Report

Activities at Odawara FactoryThe Odawara factory was established in the area overlooking Hakone and Tanzawa mountain ranges in 1938. It isFujifilm’s second oldest factory, after the Ashigara factory. The Odawara factory has attained the fourth level non-disaster record (no disastrous accident for 22 million hours, and no disaster-related shutdown for over 10 years, in May2003). It also received an excellent safety and hygiene workplace award from the Minister of Health, Labor andWelfare in July, 2003.

Labor Safety DiagnosisThe Odawara factory conducted a third party labor safetydiagnosis towards prevention of labor accidents, with the factoryrepresentative present. Japan Industrial Safety and HealthAssociation (JISHA) safety advisor Youichi Nakano thoroughlyexamined the factory and made suggestions for improvements, aswell made comments on things he noticed. Companyrepresentatives promptly implemented improvement measuresbased on Mr. Nakano’s suggestions.

Quit Smoking ClassesFujifilm promoted a non-smoking campaign by holding classes tohelp employees stop smoking in fiscal 2003. Participants worenicotine patches for eight weeks in attempt to quit smoking. Bothfamily members and colleagues helped the participants keep theirsmoking in check. Non-smoking awards were given to theparticipants that refrained from smoking for one year.

Mental Health CareA clinical psychotherapy counselor is stationed at the Odawarafactory once a week for six hours to give counseling. Many peoplehave taken advantage of this service. Also, in order to deepen theunderstanding of the mental health care, we held a mental healthseminar for management-level personnel in 2001. Since thisseminar was very popular, it was extended to the project leadersin 2002 and to general employees and employees in all threeshifts. About 30% of the employees at the Odawara factory haveattended this seminar.

Fitness 21Since 1997, we have been holding health and fitness seminarsthree times a year (with about 10 participants per seminar) foremployees with a BMI (body mass index) over 20%. Since morethan 50% of them were found to be overweight, we have beenholding Fitness 21 since 2002, as our second attempt at fitnessmanagement, for the people having morethan two life-style illness criteria “obesity,blood pressure, body fat and sugarmetabolism,” to receive individualguidance by in-house doctors anddieticians. Participants are given healthy

low-calorie, low-salt lunches to help them learn to manage theirown diet. They are also instructed to dostretches and walking. Participantsreceive a physical checkup three monthsand six months after the seminar andfurther consultation by the industrialphysician and dietician. Those employeeswho participated in the seminar inearnest lost weight and reduced theirbody fat noticeably.


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Employee Skill Development


Fujifilm believes that developing each and every worker improves company performance and is the driving force behindcorporate growth. We also believe that the realization of a strong corporate foundation requires a group of unique,talented individuals. To this end, we are proceeding to elevate our workers’ motivation and fortify our personneldevelopment program towards realization of Fujifilm Group’s VISION75 medium-term management plan goals.

1. Administrative Employees(1) Individuals who can display a vision for the future, show the direction of reform

from the viewpoint of administration and businesses, and take the lead working torealize that vision

(2) Individuals who, in addition to having deep analytical and intuitive insights forscientific and technological trends, are able to direct and guide R&D efforts byjudging transitions in society, the economy, markets and consumer values

2. Skilled ProfessionalsIndividuals who are able to contribute to administration through excellent skills orknowledge in a specialized field

3. ManagersIndividuals who can draw up organizational mission statements and visions, indicatethe direction subordinates should take, and show leadership in organizing andmobilizing employee’s abilities beyond mere organization in order to achieve purposesand goals

4. Highly Creative and Independent Performers(1) Individuals who can discover the interface between the market and customers in

creating a new business model, find new focuses for R&D and new ideas forproduction sites, and figure out the processes required to achieve the goals

(2) Individuals who can visualize their own future and know how to reform themselvesto attain their goals

5. Global-Minded EmployeesIndividuals that can adapt to various cultures, recognize cultural differences, and havethe individuality and language ability necessary to express their opinions

(1)Annual career application andcareer consultation• An interview is held based on the

employee’s career application• A career development plan is put

together(2)Execution of Career Development

Plan• Strengthening ability to identify

and achieve goals• Suggestions for necessary

training and programs• Execution of career development

rotation

(1)Improving employment status-wise program

(2)Improving programs for selectedemployees

(3)Creating an effective labor skillsdevelopment program

(4)Creating effective selectiveprograms

(1)Incorporation of in-houserecruitment program

(2)Opening up elective programs tomore employees, restructuringprograms so it is easier foremployees to take part in them

(3)Personnel placement from theviewpoint of employeedevelopment

PersonnelDepartment

Consultation Program（Consultation office outsidethe employee’s department）

Motivating employeesImprovement of

Education and TrainingPrograms

Employee Development at Workplaces

� Education and Training Programs (for plan/technical work)

Employment status-wise programs & Programs forselected employees

For

man

ager

sFo

rm

idd

le-l

evel

emp

loye

esFo

rnew

empl

oyee

s

Senior Executive ProgramSelected senior management members join a training camp withselected members from other companies once a month for 6month. This program offers exposure to other companies’approaches as well as case studies, to fortify philosophicalthinking, environmental awareness and total decision-makingability in those who are considered to be next generationmanagement candidates.

Reform Leadership SeminarThis seminar aims atstrengthening the leadership inorganizational leaders. It is aseminar for training leaders tobecome reform leaders bylearning how to formulateorganizational strategy,assemble organizationalmanpower, and strengtheningworkers abilities.

Seminar for the NewlyAppointed Managers

IDP Seminar*1

Seminar for the middle-level and newly appointed managers toimprove their ability to formulate strategic goals

VDP Seminar*2

Seminar to identify and formulate the major challenges andtargets in self-improvement by thoroughly contemplatingone’s own situation and role expectations

Newly Hired Employees Seminar Step 1/2

Seminar for NewAdministrative StrategyProgram for administrativeemployee candidates toformulate their ownadministrative strategy Seminar for SelectedEmployeesIt aims to nurture youngmanagers systematicallythrough structured educationand job rotation.

Selective programs

Skill DevelopmentProgram

Program to RealizeIndividual PotentialProgram for employeesto take the initiative toacquire knowledge andskil ls for his/her owncareer developmentExample• Marketing• Accounting and

Finance• Counseling• Languageetc.

Labor skilldevelopment programs

Language SkillTrainingWe have incorporated aprogram for al lemployees beyond thedepartment boundaries,to improve languageskills at critical stages oftheir careers, such asentering the companyand promotions.

Division-WiseDevelopmentProgramPrograms suitable for therequirements of eachdivision are planned andpromoted.

KT MethodLogical ThinkingStrengthening of logicalthinking and innovativeskills for youngemployees in their 20sLearning basics forformulating anddeveloping topics tofocus upon

� The Five Employee Traits Fujifilm Seeks in Preparation forRealization of VISION75 Medium-Term Management Plan

From the view point of fortifying our corporate businessfoundation in preparation for the realization of ourVISION75 medium-term management plan formulated infiscal 2003, we believe raising our workers’ collective abilityand performance is important. We are proceeding to fortifyour education and training programs for employee skilldevelopment and motivating employees towards nurturingthe five employee traits listed on the right. Also, in order tosupport our employee’s career development, we haveestablished a consultation office within the personneldepartment to offer consultation at any time.

Towards Realization of Fujifilm Group’sVISION75 Medium-Term Management Plan

Fujif i lm is in the process ofreconstructing its education andtraining programs to achieve theplanned nurturing of employees sothat they have the necessary talentsand abil it ies to succeed. We areoffering programs for selectedemployees, especially, to train thenext generation of managers. We arealso strengthening other programs bymaking selective programs morereadily available and open in order tomotivate workers.

Education and training of clericalemployees and skilled employeesidentify their role expectationsaccording to their fields of specialty,as well as skills to be improved orpassed down, taking currentconditions at workplaces inconsideration.

Fujifilm’s Education andTraining Programs

The Education Department at Fujifilm Headquarters becameindependent six years ago and became FUJIFILM HumanResources Development Co., Ltd. FUJIFILM HumanResources Development Co., Ltd. cooperates with theHeadquarters Personnel Division to promote employeedevelopment, especial ly through a variety of ski l ldevelopment programs.

FUJIFILM Human Resources Development Co., Ltd.

One of Fujifilm’s own unique seminars is “Introductorycourse in Fujifilm’s product technology (photographybasics).”This is the most popular seminar. Also popular arethe “Patent education seminar” and “TRIZ* introductorycourse” for researchers to learn to come up with new ideasin product development, both of them improved upon since2002.At “Begin-The-Begin Technology Forum”, we invite pastand present Fujifilm engineers, who have achieved greataccomplishments since the company’s founding, to givelectures about the challenges and anguish they had to facein creating new technologies. The purpose of this forum isto expand and raise the self-awareness and sense of valuesof our engineers. This forum is also very popular among ouremployees.* Acronym for a Russian expression meaning “Theory of Inventive

Problem Solving”.

Participation Status of the Seminars

Skill Development Program � Introductory course in Fujifilm’s product technology(photography basics)

Technologies nurtured through the development of silver salt-basedmaterials (photo) are reflected in the various products that Fujifilm hasdeveloped over the years. This course helps workers understand theimaging technology, which is the foundation of all such products.Therefore, this course covers not only the workings of silver halidephotos, but also gives an overview of digital photos, ps plates, industrialmaterials and Printpix paper. During this course, participants will havehands-on lessons in everything from actually making black and whitefilms from raw materials, to taking photographs, developing the film, andmaking prints on photographic paper.

� 10 Top-Ranking Seminars by the Number of Participants

１

2

3

4

5

6

7

8

9

10

Introductory course in Fujifilm’s product technology (photography basics)

Patent education seminar

Quality control seminar

TRIZ introductory course

Introduction and intermediate courses for Excel 2000

Notes basics

Using graphs with Excel

Digital imaging basics

Troubleshooting for PC control

Power supply operator education

*1 Innovatorship Development Program

*2 Value Design Program


History of Business Activities and Environmental Activities

Business Activities Since Foundation History of Fujifilm’s Environmental Activities

January 1934 In conjunction with the photo film domestic production plan, the photofilm division of Dainippon Celluloid Co., Ltd. (currently Daicel ChemicalIndustries, Ltd.) became independent to establish Fuji Photo Film Co., Ltd.(capital: 3 million yen)

1970

1971

Fujifilm’s Dedication Awards Received by Fujifilm Domestic and International Trends

Environment and Safety Departments were established at factories.

The Ministry of the Environment established by the Japanese governmentUnited Nations Conference on the Human Environment held in Stockholm

The Okouchi Memorial Technology Prize, for its video tape mass productiontechnology using its simultaneous multi-layer coating method

Declaration of Helsinki made to adopt total abolishment of specified CFCs

The Okouchi Memorial Award, for its X-Ray Imaging System

Action Plan for Combating Global Warming established

Law for the Promotion of Utilization of Recycled Resources goes into effect.

World Summit held in Rio de Janeiro

Basic Environment Law established

Framework Convention on Climate Change enacted.

The 44th (1997) Okouchi Memorial Technology Prize, for its “Production-scale Plasmaand BTA Treatments of PEN Base for Advanced Photo System”

ISO14001 enacted.

Kyoto Protocol adopted at Third Conference of the Parties to the UN FrameworkConvention on Climate Change (COP3)

Guidelines on the “Establishment of an Environmental Accounting System” releasedby the Ministry of the EnvironmentBasic Law for Establishing the sustainable Society enacted.PRTR Law enacted.Container and Packaging Recycle Law enacted.GRI released “GRI’s Sustainable Reporting Guidelines.”

Green Procurement Law enacted.The Ministry of the Environment released the “Environmental Reporting Guidelines2000.”Law for Promotion of Effective Utilization of Resources (Revised Recycling Law)enacted.Law Concerning Special Measure against PCB Waste enacted.

Kyoto Protocol implementation rule agreed on at Seventh Conference of the Parties to theUN Framework Convention on Climate Change (COP7)Japanese government ratified Kyoto Protocol.The Ministry of the Environment released “Environmental Accounting Guideline 2002.”The Global Warming Prevention Headquarters determined “Guidelines for Measure toPrevent Global Warming.”The Japan Environmental Management Association for Industry (JEMAI) beganimplementing Type III Eco Label.Johannesburg Summit heldGRI released “GRI’s Sustainable Reporting Guidelines 2002.”Japan ratified the Stockholm Convention.Soil contamination Countermeasures Law enacted.

Revision of the “Law Concerning Examination and Regulation of Manufacture andHandling of Chemical Substances”

The Global Environment Committee Award, for Corporate Excellence in the 8thGlobal Environmental Award sponsored by Japan Industrial JournalThe 17th Superior Trendsetting Factories and Offices Special Award sponsored byNihon Keizai Shinbun, for the “Fujicolor QuickSnap Cyclic Manufacturing System”

The Trendsetting Factories and Offices Millennium Award sponsored by Nihon KeizaiShinbun, for the “Fujicolor QuickSnap Cyclic Manufacturing System”The Global Warming Prevention Activities Ministerial Commendation 2000 from theMinistry of the Environment

The 47th Okouchi Memorial Technology Prize (sponsored by Okouchi MemorialFoundation), for the development of the “Fujicolor QuickSnap Automatic CyclicManufacturing System”Yoshida-Minami factory received “Prefectural Governor’s Award for Promotion ofAppropriate Processing of Industrial Waste 2000.”

The Green Sustainable Chemistry Award (sponsored by the Green SustainableChemistry Network), for its “Aqueous-Coated Photothermographic Material”The Superior Trendsetting Factories and Offices Special Award 2002 (sponsored byNihon Keizai Shimbun for the 20th time), for its WV (Wide View) film for LCD

The 6th Environmental Report Award: Prize for Site Report Award. (co-sponsored byToyo Keizai Inc. and Green Reporting Forum), for the Ashigara Factory EnvironmentalReport 2002

The 13th Global Environmental Award’s “Earth Environment Committee Awardfor Corporate Excellence” (sponsored by Japan Industrial Journal)

Environmental Management Division was established at the Headquarters.

1975 Safety Test Room was established.

1983 Fujifilm Greenery Fund was established.

1986 Fujicolor QuickSnap was launched.

1989 Environmental Management Division renamed Environmental SafetyPromotion Division.

1990 Incorporation of cogeneration-type generators started.Fujicolor QuickSnap Recycling Center began operation.

1991

1992 Fujif i lm Group established safety, hygiene, and environmentalconservation policies for its factories.Automated reuse/recycling system for QuickSnap product line began itsoperation.

1993 Environmental Action Plan was established.All freon used in the manufacturing process was eliminated.

1994 Fujifilm Basic Environmental Policies were established.

1995 Fujifilm joined Japan Responsible Care Council (JRCC).Reuse and recycle of Fujicolor QuickSnap commenced in the US andEuropean factories.

1996 Fujinomiya factory, Odawara factory and Ashigara factory acquiredISO14001 certification.Fujifilm started publishing its Environmental Report.

1997 Yoshida-Minami factory acquired ISO14001 certification.

1998 Fujicolor QuickSnap automated cyclic manufacturing factory wasconstructed.

1999 Fujifilm Responsible Care Management Manual was printed. Fujifilmreplaced its Basic Environmental Policies with the Fujifilm Responsible CareProgram.Fujifilm began releasing it environmental accounting.

2000 Yoshida-Minami factory, Fujinomiya factory and Miyanodai TechnologyDevelopment Center began recycling all the waste materials producedthere by the manufacturing of raw materials that are used as resources.Fujifilm put together a Green Procurement Instruction Manual.

2001

2002

2003

2004

Yoshida-Minami factory, Asaka Technology Development Center andFujinomiya factory achieved zero emission of waste materials.Odawara factory began recycling all the waste materials produced thereby the manufacturing of raw materials that are used as resources.

Fujifilm established Fujifilm Group Green Policy to replace FujifilmResponsible Care Program.Fujifilm hosted Environmental Forum. (It has been held annually since2002.)Miyanodai Technological Development Center, Ashigara factory, andOdawara factory achieved zero emission of waste materials.Miyadai Technological Development Center and Asaka TechnologicalDevelopment Center began publishing site reports.

Fujifilm started environmental education through e-Learning.Fujinomiya factory and Odawara factory began using natural gas as theirin-house power generator fuel.Fujifilm acquired the very first Type III Eco-Label in Japan for digitalcameras (from Japan Environmental Management Association for Industry(JEMAI)).

Odawara factory and Ashigara factory switched to use natural gas as theirin-house power generator fuel completely.

February 1934 Ashigara factory began operating and producing photosensitizedmaterials, such as photographic film, photographic paper, drying plates.

June 1938 Odawara factory was constructed (Odawara factory was fully equippedto produce materials and precision optical equipment including silvernitrate for photosensitive materials, and high-grade chemical productssuch as pigments, optical glass and cameras since its completion.)

March 1944 Fujifilm acquired Enomoto Kogaku Seiki Manufacturing Co., Ltd. andchanged its trade name to Fuji Photo Optical Co., Ltd. (It is now a Fujifilmconsolidated subsidiary.)

April 1946 Natural Color Photography Co., Ltd. was established. (It is now FujicolorService Co., Ltd., a Fujifilm consolidated subsidiaries.)

February 1962 Fujifilm formed a joint venture company, Fuji Xerox Co., Ltd. with RankXerox Ltd. in Great Britain. (It is now a Fujifilm consolidated subsidiary.)

October 1963 Fujinomiya factory was constructed (produces barayta for printing paperas well as barayta paper).

April 1965 Fujicolor Trading Co., Ltd. was established after branching off fromFujicolor Service Co., Ltd.. (It is now a Fujifilm consolidated subsidiary.)

December 1965 Fuji Photo Film U.S.A., Inc. was established in the state of New York,USA. (It is now a Fujifilm consolidated subsidiary.)

June 1966 Fuji Photo Film (Europe) GmbH was established in Germany. (It is now aFujifilm consolidated subsidiary.)

September 1973 Yoshida-Minami Factory was constructed (produces PS plate for offsetprinting).

August 1982 Fuji Photo Film B.V. was established in Holland. (It is now a Fujifilmconsolidated subsidiary.)

March 1987 Fuji Magnetics GmbH was established in Germany. (It is now a Fujifilmconsolidated subsidiary.)

July 1988 Fuji Photo Film, Inc. was established in the state of South Carolina, USA.(It is now a Fujifilm consolidated subsidiary.)

March 1990 Fujifilm Micro Device Co., Ltd. was established. (It is now a Fujifilmconsolidated subsidiary.)

December 1990 FUJIX Co., Ltd. was established. (It later changed its trade name toFUJIFILM PHOTONIX Co., Ltd., which is now a Fujifilm consolidatedsubsidiary.)

October 1993 Fujifilm acquired 51% of the stocks issued by Chiyoda Medical Co., Ltd.(It is now a Fujifilm consolidated subsidiary.)

October 1995 FUJIFILM Imaging Systems (Suzhou) Co., Ltd. was established in Jiangsu,P.R.C. (It is now a Fujifilm consolidated subsidiary.)

June 1996 Hong Kong Fuji Photo Logistics Limited was established in Hong Kong. (Itis now a Fujifilm consolidated subsidiary.)

November 1996 FUJIFILM Electronic Imaging Ltd. was established in Great Britain. (It isnow a Fujifilm consolidated subsidiary.)

December 1997 Fujifilm acquired Eurocolor Photofinishing GmbH & Co. KG in Germany.(It is now a Fujifilm consolidated subsidiary.)

March 2001 Fujifilm acquired additional 25% of the stock issued by Fuji Xerox Co.,Ltd. Since Fujifilm owned 75% of the stock at that time, Fuji Xerox Co.,Ltd. became a Fujifilm consolidated subsidiary.

October 2001 Enovation Graphic Systems, Inc. was established in the United States. (Itis now a Fujifilm consolidated subsidiary.)

September 2002 Fujifilm publicly acquired Jusphoto Co., Ltd.’s stock. (It is now a Fujifilmconsolidated subsidiary.)

April 2003 Fujifilm acquired additional stocks of Process Shizai Co., Ltd. to make it aconsolidated subsidiary. It changed its trade name to FUJIFILM GraphicSystems Co., Ltd.

October 2003 Fujicolor Service Co., Ltd. and Fujicolor Trading Co., Ltd. merged tobecome Fujicolor Imaging Service Co., Ltd. (It is now a Fujifilmconsolidated subsidiary.)

April 2004 FUJIFILM Medical Co., Ltd. and Chiyoda Medical Co., Ltd. mergedtogether to operate as FUJIFILM Medical Co., Ltd. (It is now a Fujifilmconsolidated subsidiary.)

April 2004 FUJIFILM AXIA Co., Ltd. and FUJIFILM Battery Co., Ltd. merged togetherto operate as FUJIFILM AXIA Co., Ltd. (It is now a Fujifilm consolidatedsubsidiary.)


Acquisition of ISO14001 Certification

ISO14001 Certification Acquisition Conditions

1996. 8

1996.10

Fuji Photo Film Co., Ltd. Fujinomiya Factory

Fuji Photo Film Co., Ltd. Odawara Factory

Fuji Photo Film Co., Ltd. Ashigara Factory1996.12

1997. 1 Fuji Photo Film Co., Ltd. Yoshida-Minami Factory

1999. 3 Fuji Photo Film Co., Ltd.

Asaka Technology Development Center

2001. 9 Fuji Photo Film Co., Ltd.

Company name

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Research & Development Management Headquarters,

2003. 1 Fuji Photo Film Co., Ltd. Headquarters Group

1994. 4 FUJIFILM PHOTONIX Co., Ltd.

1996. 8 FUJIFILMTPX Co., Ltd.

1996.10 F.F.M.A. Co., Ltd.

1996.12 F.P.M. CO., LTD.

1996.12 FUJIFILM Human Resources Development Co., Ltd.

1996.12 Fuji Graphic Service Co., Ltd. Ashigara Factory

1997. 3 Fuji Xerox Co., Ltd. Takematsu Center

1997. 5 Suzuka Fuji Xerox Co., Ltd.

1997. 6 Fuji Xerox Co., Ltd. Ebina Center

1997.10 Fuji Xerox Co., Ltd. Iwatsuki Center

1997.10 Niigata Fuji Xerox Manufacturing Co., Ltd.

1998. 1 Fuji Photo Optical Co., Ltd.

1998. 1 Mito Fuji Koki Co., Ltd.

1998. 3 Sano Fuji Koki Co., Ltd.

1998. 3 Okaya Fuji Koki Co., Ltd.

1998. 6 FUJIFILM ARCH Co., Ltd. Shizuoka Factory

1999. 3 Fuji Xerox Office Supply Co., Ltd.

2000. 3 FUJIFILM Microdevices Co., Ltd.

2000. 4 Fuji Technics Co., Ltd.

2000.12 Kanagawa Xerox Co., Ltd.

2001. 3 Miyagi Xerox Co., Ltd.

2001. 5 Fuji Xerox Co., Ltd. Nakai Laboratory

2001. 6 FUJIFILM Techno Service Co., Ltd.

2001. 6 Osaka Xerox Co., Ltd.

2001. 6 Ibaragi Xerox Co., Ltd.

2001. 6 Hyogo Xerox Co., Ltd.

2001. 6 Hiroshima Xerox Co., Ltd.

2001. 7 Gunma Xerox Co., Ltd.

2001. 7 Saitama Xerox Co., Ltd.

2001. 7 Niigata Xerox Co., Ltd.

2001.11 Fuji Photo Equipment Co., Ltd.

2001.11 Fuji Xerox System Services Co., Ltd.

2001.11 F.I.T. CO., LTD.

2001.11 AKITA FIT CO., LTD.

2001.12 Fuji Xerox Co., Ltd. Sales Division

2001.12 Fuji Xerox Co., Ltd. Customer Service Division

2001.12 Tokyo Zerox Co., Ltd.

2001.12 Hokkaido Xerox Co., Ltd.

2001.12 Chiba Xerox Co., Ltd.

2001.12 Tama Xerox Co., Ltd.

2001.12 Nagano Xerox Co., Ltd.

2001.12 Hokuriku Xerox Co., Ltd.

2001.12 Gifu Xerox Co., Ltd.

2001.12 Fukuoka Xerox Co., Ltd.

2001.12 Okayama Xerox Co., Ltd.

2001.12 Shikoku Xerox Co., Ltd.

2001.12 Yamaguchi Xerox Co., Ltd.

2001.12 Kitakyushu Xerox Co., Ltd.

2001.12 Kyoto Xerox Co., Ltd.

2002. 4 FUJIFILM Medical Co., Ltd.

2002. 4 FUJIFILM Medical Nishi-Nippon Co., Ltd.

2004. 6 Fuji Presentec Co., Ltd.

2004. 7 FUJIFILM Graphic Systems Co., Ltd.

1997. 9 Fuji Hunt Photographic Chemicals, Inc.

1998. 6 Fuji Xerox of Shanghai Ltd.

1997.12 Fuji Photo Film B.V.

1997.12 Fuji Xerox Korea Co., Ltd.

1998.11 Fuji Photo Film da Amazonia Ltda.

1998.12 Fuji Graphic Systems Canada,Inc.1998.12 Fuji Photo Film do Brasil Ltda.

1999. 4 Fuji Photo Film, Inc.

1999. 4 Fujifilm Microdisks U.S.A., Inc.

1999. 8 Fuji Xerox (Australia) Pty. Ltd. Alexandria site

1999.10 Fuji Magnetics G.m.b.H.

2000. 8 Fuji Xerox (Australia) Pty. Ltd. Zetland site

2000.10 FUJIFILM Imaging Systems (Suzhou) Co., Ltd.

2000.11 Fuji Xerox of Shenzhen, Ltd.

2001. 4 Fuji Hunt Photographic Chemicals,Pte Ltd.

2001. 6 Fuji Photo Film Canada Inc.

2001.11 Taiwan Fuji Xerox Corp.Taoyuan Factory

2001.11 Fuji Xerox Korea Co.,Ltd. Pupyeong Factory

2002. 9 FUJIFILM Electronic Imaging Ltd.

2002. 5 Fujicolor Imaging Service Co., Ltd.2002. 6 Fukushima Xerox Co., Ltd.2002. 6 Iwate Xerox Co., Ltd.2002. 6 Tochigi Xerox Co., Ltd.2002. 6 Aichi Xerox Co., Ltd.

2002. 6 Aichi-Higashi Xerox Co., Ltd.

2002. 6 Mie Xerox Co., Ltd.

2002. 6 Nara Xerox Co., Ltd.

2002. 6 Shizuoka Xerox Co., Ltd.

2002. 6 Kumamoto Xerox Co., Ltd.

2002. 6 Nagasaki Xerox Co., Ltd.

2002. 6 Kagoshima Xerox Co., Ltd.

2002. 8 Fuji Xerox Co., Ltd. Headquarters

2002. 8 Fuji Xerox General Business Co., Ltd.

2002.11 FUJIFILM Business Supply Co., Ltd.

2002.11 Fujifilm Logistics Co., Ltd.

2002.11 FUJIFILM Axia Co., Ltd.

2002.11 Fuji Xerox Imaging Materials Co., Ltd.

2002.12 FUJIFILM Software Co., Ltd. Shinyurigaoka Workplace

2003. 1 Fujifilm Computer System Co., Ltd.

2003. 1 Fuji Photo Service Co., Ltd.

2003. 1 FUJIFILM Insurance Service Co., Ltd.

2003. 3 Fuji Xerox Learning Institute Inc. Space Alpha Kobe

2003.11 Fuji Xerox Printing Systems Co., Ltd.

2004. 1 Fujinon Toshiba ES Systems Co., Ltd.

2004. 2 Fuji Xerox Learning Institute Inc. Tsukahara Learning Center

2004. 3 Fuji Xerox Information Systems Co., Ltd. Shibuya Headquarters

2004. 3 Fuji Xerox Learning Institute Inc. Knowledge Space Gotenba

2004. 4 FUJIFILM Opto Materials Co., Ltd.

2004. 6 Fuji Xerox Learning Institute Inc. Headquarters

2004. 6 Fuji Xerox Learning Institute Inc. West Japan Branch Office

� Breakdown of ISO 14001 Certification Acquisitions

Headquarters

7 92 40

7 84 36

DomesticGroup

Companies

OverseasGroup

Companies

139

127

Total

Number of Divisions

Number of Acquisitions

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(As of the end of September 2004)

2003. 6 Fuji Photo Film(Europe), GmbH

(* Including 14 overseas Fuji Xerox sales companies not listed above)

Equipment Development and Production Division

Advanced Core Technology Laboratories

Imaging Software Technology Center

Acquisitiondate

2002.12 Fuji Hunt Photographic Chemicals,N.V

2003. 2 Fuji Hunt do Brasil Ltda.


Outside Appraisals and Awards

We would like to introduce appraisals and awards we received from outside sources regarding our commitmentto the environment and society. Fujifilm is determined to strengthen its existing activities and CSR in general.

� February 2004The Japan Society for Printing Science andTechnology Merit AwardFuji Photo Film Co., Ltd.Chairman and Director(at the time) Minoru Ohnishi

� February 2004 I3A (International ImagingIndustry Association)2004 Leadership AwardFuji Photo Film Co., Ltd.President and CEO Shigetaka Komori

� February 2004 PMAI (Photo MarketingAssociation)Distinguished Service Award Fuji PhotoFilm,Inc.President and CEO (at the time) HarryWatanabe

� January 2004 IPC (InternationalPhotographic Council)Hall of Fame AwardFuji Photo Film Co., Ltd.Chairman and Director (at the time) Minoru Ohnishi

� 2003 South Carolina, U.S.A.2003 South Carolina Ambassador forEconomic Development for Greenwood FujiPhoto Film,Inc.President (at the time) Harry Watanabe

� 2003 U.K. Management Today /Granfield School of Management MostImproved Manufacturing PlantManagement Today Best Factory Award for2003FUJIFILM Electronic Imaging Ltd.

� 2003 I3A (International Imaging IndustryAssociation)Safety Excellence Award for 2003 FujicolorProcessing,Inc.

� August 2003EISA (European Imaging and SoundAssociation)European Compact Camera of the Year2003-2004Fuji Photo Film Co., Ltd. FUJIFILM 135Compact camera ZOOM Date F2.8(Japanese model name: Silvi F2.8)

� July 2003Mobile Content ForumMobile Project AwardMobile Middleware Division Highest AwardFuji Photo Film Co., Ltd. Image conversionASP service for cell phone “Keitai Picture”

� June 2004US Broadcasting Magazine “GovernmentVideo”Government Video Salute 2004US Broadcasting Magazine “DTV”DTV Pick of ShowUS Broadcasting Magazine “VideographyMagazine”Video Award Best in Show 2004US Broadcasting Magazine “TV Technology”STAR AwardsFuji Photo Optical Co., Ltd.FUJINON High-definition BroadcastingCamera Lens with Precision Focus

� June 2003 “20th Camera Grand Prix2003”Camera Press Club Special Award: Fuji PhotoOptical Co., Ltd.FUJIFILM GX645AF Professional

� February 2004Shanghai City Min hang qu EnvironmentalProtection AgencySelected as “a trustworthy corporation forenvironmental conservation in 2003”Fuji Xerox of Shanghai, Ltd.

� June 2004Republic of Korea, Ministry of Commerce,Industry and Energy“National Environmental ManagementGrand Award”Highest award in Specialist Division,Environmental Management System DivisionMerit Division Prime Minister AwardFuji Xerox Korea Co., Ltd.

� February 2004Japan Philanthropic Association“Corporate Philanthropy Awards”Special Award “Corporate Citizen Award”Fuji Xerox Co., Ltd.

� February 2004Energy Conservation Center, Japan“14th Energy Conservation Award”Energy Center Chairman Award“DocuPrintC2425/C2426”Fuji Xerox Co., Ltd.

This award is given to the model businesses with particularly excellentsafety and hygiene standards. Odawara factory was given theexcellence award in recognition of its achieving zero shutdowndisasters (fourth level non-disaster criteria) for 2.2 million hours, 10whole years since 1993, as well as the following achievements:• Deployment of forthright and effective labor hygiene activities• Achieving first class control criteria (most ideal conditions) at all

work areas, determined after the evaluation of our workenvironment

• Construction of a closed system to reduce exposure to hazardousmaterials

• Measures against excessive overtime work, and implementation ofmental health measures, etc.

At ”13th Global Environmental Award (Sponsored by Japan Industrial Journal),

Fujifilm was Awarded “Global EnvironmentCommittee Award for Corporate Excellence”

Fujifilm received the “Global Environment Committee Award forCorporate Excellence”, on April 26, 2004, at the “13th GlobalEnvironmental Award” sponsored by the Japan Industrial Journal withWWF Japan as a special guest. This award was given in recognition ofour unique and reliable accomplishments in chemical substancemanagement and our group-wise effort for zero emission activities.We received this award for the second time since 1996.

Fujifilm has received the appraisals below in regard to environmentand quality in terms of its efforts toward sustainable development.

Main Appraisals

We received favorable appraisals from the social, economic andenvironmental aspect, such as being chosen for SRI (SociallyResponsible Investment) by Dow Jones Sustainability Indexes (DJSI)and the FTSE4Good Global Index.

President Komori at the award ceremony (right)

Odawara Factory Received an Excellence Award from theMinister of Health, Labor and Welfare in 2003.

Support for Publishing Enlarged Textbooks by Fuji Xerox Co., Ltd.Was Awarded a Special Award, “Corporate Citizen Award” at the“1st Corporate Philanthropy Awards.”

This award was established by the Japan Philanthropic Association tobe awarded to corporations taking positive steps to solve socialproblems through corporate activities. Fuji Xerox was given this awardin recognition to its exemplary position as a corporate citizen forproviding showrooms and company sites as a place to support theproduction of enlarged textbooks for the children with weak eyesight.Fuji Xerox workers are continuing to help with the production of suchtextbooks to this day.

Miscellaneous

Appraisal title Assessor Appraisal for Fujifilm

The 7th CorporateEnvironmentalManagement Survey

The 4th Eco BrandSurvey

EnvironmentalManagement Ratings2003

Environmental Ratings

The 1st QualityAdministration Survey

Nihon Keizai Shimbun

Nikkei BP

Sustainable ManagementRating Institute

Tohmatsu Evaluation andCertification Organization

Nihon Keizai ShimbunUnion of Japanese Scientistsand Engineers

3rd among 599 companies(manufacturing division)

19th among 560 companies(by consumers and businesspeople)

Selected as one of the BestPractice 21 companies

A

5th among 208 companies

• Worked to unify the design of the document andto create an eye-friendly document using icons.

• Kept sentences short and clean.

• Posted a list of organizations aided by the FujifilmGreenery Fund on the Fujifilm website.

• Explained the mechanism of the FujifilmGreenery Fund as well as its activities, and triedto provide specific information.

• Make the sectional division clearer by thecontent theme.

• Include efforts toward fields other thanproduction and engineering development.(What about efforts in the administration and the sales divisions?)

• Make it easier to see the top personnel’s message by narrowing down the key points.

• Create pages with people’s faces and words, notjust with data.

• Write the vision in clear and easy-to-understandterms, as well as explain how it leads tosustainability.

• Bring this page forward.

• Clarify the value and meaning of the“sustainability accounting.”

• Include the five sorting ranks of chemicalsubstances.

• Make the diagrams easier to understand.• Write it in a conversational format rather than

the unilateral way.

• Design for Environment diagram is hard tounderstand, and positioning of “design” israther unclear.

• Make lively pages.• Include photos of employees in natural states,

such as talking rather than posed shots. Thescript is too rigid.

• Let us know of how Fujifilm is doing worldwide.

• Show ratios, as in what percent of the peoplehas been able to do, rather than exact numbersindicating “how many people.”

• Add a postscript describing the relationship withthe client that includes their inquiry, the responsegiven and the action(s) taken to resolve theirproblem.

• Include the actual stakeholders opinions as wellas responses to the opinions.

• Specify the challenges and goals in businesspartnerships clearly.

• Include the specifics on safety approach.

• Add a twist to the headers and lettering styles asin magazines.

• Cut as many sentences as possible to decreasethe whole volume.

• Present as many specific social contribution caseexamples as possible, as well as activities thatillustrate the corporate characteristics.

• List the 75 organizations that Fujifilm GreeneryFund has aided thus far.

• Describe both the full picture and the specifics ofthe Fujifilm Greenery Fund.


Table of Contents

Message

Fujifilm’sEnvironmental Vision

Achievements in Fiscal 2002

Environmental Performanceof the Fujifilm Group

Environmental-friendly Product

Business Profile ofthe Fujifilm Group

Relationships withCustomers

Relationships withEmployees

Other

Social ContributionActivities

Relationships withSuppliers

How Design forEnvironment Works

Special Feature: The Fujicolor QuickSnap and InverseManufacturing Factory

EnvironmentalManagement System

Fujifilm SustainabilityAccounting

Table of Contents

Communication withBusiness Partners

Message from the President

Fujifilm’s Vision inCSR

Report Digest 2003

Environmental Considerationsin Factory Operations

Products SocietyTrusts

Fujifilm Group’sBusiness Overview

Fujifilm Group’s Businesses Overview

Fujifilm Group and Its Stakeholders

Communication with Customers

Communication with Business Partners

Creating aComfortableWorkplace

Creating a Safe Workplace

Other

Social Contributionand Coexistence withthe Local Community

Fujifilm GreeneryFund

Material Purchase andGreen Procurement

Design forEnvironment

Cyclic Manufacturingand FujicolorQuickSnap

Chemical SubstanceManagement

SustainabilityAccounting

SecondCover

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Page 58

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Page 76

Opinions on Sustainability Report 2003 Reflecting Opinions in Sustainability Report 2004

• Set up an easy-to-understand format by creatingdifferent icons per theme and adding subtitles toeach theme.

• Included a section on the marketing division’sapproach and efforts.

• Separated the message content by agenda to make it easier to read.

• Explained Fujifilm’s attitude and approachtoward corporate social responsibility (CSR).

• Brought the page forward as much as possible.

• Explained our approach toward accounting inmore detail, while also mentioning the value ofsocial accounting.

• Provided explanation on five sorting ranks ofchemical substances, disclosing specific anddetailed information.

• Revised the cyclic manufacturing mechanismdiagram by using simple visuals.

• Included a segment on how we relate to thesociety, such as challenges we face with FujicolorQuickSnap.

• Revised the Design for Environment mechanismdiagram.

• Included candid photos of people at theinterview.

• Tried to write in a comprehensive manner.

• Included a section on overseas activities.

• Reflected the requests we received on eachpage.(Environment-related complaints are included onpage 28.)

• Defined our measures to establish betterrelationships with business partners.

SecondCover

Page 1

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Page 12

Page 14

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Page 28

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Page 46

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Page 52

• Included the opinions of our users and retailers.

• Posted breakdowns of employee labor powerand recruitment to report Fujifilm’s currentcondition, while increasing the usefulinformation for employees, such as specialprograms employees can utilize.

• Described the approach taken by the Odawara Factory and its staff.

• Described Fujifilm’s distinguishing efforts, suchas educational activities for children and thephotography classes.

• Included a list of as many regional activities as possible.

� Opinions on Sustainability Report 2003 and Reflecting Them in Sustainability Report 2004 As we compiled the Sustainability Report 2004, Fujifilm worked to reflect opinions on the 2003 report and to apply suggestions for the 2004 report that we

collected at the Sustainability Report Readers Opinion Meeting.


At the Q&A session, we received challenging butstraightforward comments such as: “Even though I’ve heardthat the Fujifilm’s recycle ratio is 100%, I can hardly believethat there is absolutely no waste being produced,” and “Whyaren’t there any countermeasures for NOx waste when it isincreasing every year?” Fujifilm would like to address theseopinions in our future environmental activities.Detailed information on the Sustainability Report ReadersOpinion Meeting and its progress, the Q&A session and otherevents is posted on the Fujifilm website, as well as the“Kankyo-goo” website. Please review these sites in additionto this report:

Active Q&A Session

On March 8-9, 2004, Fujifilm held the Sustainability Report 2003 Readers Opinion Meeting to openly exchange opinions withthe participants. A total of eighteen readers participated in this meeting, varying from students, office workers, administrativeemployees, to members of non-profit organizations. Facilitator Hideto Kawakita, representative of International Institution forHuman, Organization and the Earth (IIHOE), led an open discussion to exchange feedback on the Sustainability Report 2003 andobtained suggestions for the 2004 report as well as directed a Q&A session on Fujifilm’s sustainability activities.

� After the Sustainability Report Readers OpinionMeeting

At this Sustainability Report Readers Opinion Meeting, we sought to understandthe difference in the “business sense” of a company from that of societythrough a dialog with all the stakeholders. This meeting initiated a new forumfor corporate information transmission and ideasharing with the stakeholders.Through this meeting, we learned who reads thisreport and how important it is to address even themost negative information, and how our report isperceived and viewed by our readers. We alsoreceived frank opinions and suggestions that arevaluable in learning what is thought to be lacking inour report. We will continuously attempt to createreports that are reliable, clear and easy to read.Meanwhile, we ask for your continuous support forour activities and reports, as well as your candidand straightforward opinions.

� Participants Introduction and Scoring Participants were asked to assign a score for the Sustainability Report 2003, and to identify its goodpoints as well as areas that need improvement.

Day

1D

ay2

http://www.fujifilm.co.jp/corporate/environment/communication/meeting/2003/index.html

http://eco.goo.ne.jp/fujifilm/meeting/

Kimitaka KameokaGeneral Manager

Ecology and Quality ManagementFujifilm CSR Division

Kimiko Terada,Corporate Sales Group of Tokyo Electric Power Company, Tsuchiura Branch:“There's enough information to coverall aspects and there probably isn't anysubject left out. It was too bad that Icouldn't readily see in the back of mymind the picture of employees whowork so eagerly and enthusiastically.”

Masayuki Oobayashi, Faculty of BusinessAdministration at Konan University:“The report summary was easy to read.I'd have liked it better though, if they'dhave included the specific interactionsassociated with substances when namesof chemicals are mentioned such as'organic silver salts'.”

Kenichi Nitanai,Iwate Prefecture, Environmental Conservation Division:“The content covers everything, andthe summary is nice, too. But theyneed to add more twist to the headersand index.”

Sanae Shinomiya,Freelance Writer:“I was admiring how hard they areworking on this issue. I guess anegative point on the other hand isthat there are just too many pages.”

Setsuo Hiyama, Professor at OsakaUniversity of Economics and Law:“Bigger print certainly makesdocuments easier to read. I personallythought it'd be nice to include eachmanager's dilemma, their strugglesand joys in accomplishing their goals.”

Masamichi Okano,Graduate College at Osaka University:“I appreciated the sincerity theyshowed by honestly admitting theproblems of increasing CO2 emissionsand soil contamination. But why is thereport's summary all the way in theback?”

Noriko Yamamoto,Co-Housing Partners, NPO:“I can give them credit for making the printlarger than the last year's. I can actually readthem without glasses. And the summary iseasy to understand, I guess. This report'sreally extensive, and it's also rather difficultto understand overall because it contains somany foreign words.”

Takefumi Kushibe,NEC Fielding, Ltd.:“I was impressed because theirenvironmental approach is soadvanced. But I wanted to knowwhether the entire corporation ismanaged using the CSR policies.”

Satoshi Komaki,Graduate School at the University of Tokyo:“The content was very rich, disclosinga lot of good information. On theother hand, it was so extensive thatyou really have to sit down to read it. Italso makes it difficult to grasp the gistof this report, too.”

Motoki Hashizume,Faculty of Human and Environment Department atHOUSEI University:“I thought it was a 'report with faces' becausethere are a lot of employee photos. It's justthat it might be difficult for people who arenot too interested in or familiar with theenvironment to read it all the way through.”

Tomoko Umemoto, Tokyo University ofAgriculture and Technology:“I liked the fact that it was mucheasier to read than last year's report.What needs improvement is the futurevision and approach. I'd like to knowmore about them in detail.”

Takaaki Koitabashi,Gunma Prefecture, CivilEngineering Department:“They should be praised for covering notonly the environmental issues but alsohow they relate to the society sothoroughly. I think they should reduce theamount of information on each page,though. It was exhausting to read!”

Motohiko Nakahara,Tokyu Corporation, Department of Business Administrationand Environment:“The positive point was how theyexplained with specific examples, such asthe single-use cameras. I was disappointedthat I can't seem to find the connection tothe survey feedback.”

Shigenao Takada,Suginami Environmental Counselors Council:“It is good to see that they coveredmost all areas of the social andenvironmental activities. I think theycould have organized it a little better,though.”

Fumiko Tsubuhari,Fusione, Techno Solutions Co., Ltd.:“I liked how I could see theimprovements by comparing theresults of 2002 and 2003. I think it'dhave been even better if they'd haveused more visual support.”

Kenichi Kasai,Takenaka Corporation, Global Environmental Chamber:“I felt it easy to read thanks to thefootnotes that explained the technicalterminology on the same page.However, I think they could havewritten more in depth explanations.“

Masataka Okumura,Regional Development NPO Inc.:“I liked the writing style and photosthat detailed their claims. I did want tosee more specific indication of exactlywhat they wanted to do in theircommunication with the regionalcommunities.”

Sayaka Oga,Executive Office of Global Legislators Organization for the Balanced Environment:“I must say that it's impressive to see how theyset a high goal and actually work toward it fromvarious angles. But I would like to ask them toformat the pages differently so that they areeasy to understand, even for people who arenot so interested in the environment.”

Score:75

Score:85

Score:75

Score:80

Score:80

Score:65

Score:65

Score:60

Score:80

Score:85

Score:75

Score:65

Score:75

Score:75

Score:78

Score:81

Score:65

Sustainability Report Readers Opinion Meeting

Score:75


Independent Assurance Report

International Stakeholders Dialog

Sustainability Report ReadersOpinion Meeting

Year 2004February March June July August

Assessment at the Factory and Group Companies

Assessment at the Headquarters

Understanding of Status Prior to Dialog

(Verification of current conditions at the headquarters and report contents)

(Verification of current conditions at the factory and group companies)

(Indentified in assurance reports up to last year’s report)

Evaluation(Evaluation results based on the AA1000 Assurance Standard)

To All Readers and Fuji Photo Film Co., Ltd.

Evaluation Results Based on AA1000 Assurance Standard

August 14,2004

ChuoAoyama Sustainability Certification Co., Ltd.

We, ChuoAoyama Sustainability Certification Co., Ltd., believe that it is important that a corporation should not only focus on returning profits to its stakeholders and investors, making social contribution and regulatory compliance, but also should respond to the concerns, interests and expectations of diverse stakeholders. We also believe that the first step to sustainable corporate management, for a corporation, with fulfillment of corporate social responsibility (“CSR”), is try to establish better partnership with stakeholders by communicating them with integrity of corporate activities through corporateinformation disclosure.

As implementating VISION75, the medium-term corporate management plan, Fuji Photo Film Co., Ltd. (“the Company”) is in the process of making more active communication with the stakeholders to once again realize what social responsibilities are expected for the Company to fulfill and what the Company’s challenges are to address them. Under the commitment by the management, the Company is working to integrate their feedbacks to corporate management. The Company has not yet established a reporting policy based on the AA1000 standard. However, we believed that the Company has foundation to achieve corporate accountability and a performance improvement system, which the standard requires. Therefore, we decided to implement the AA1000 Assurance Standard for the evaluation of CSR activities of the Company.

The objective of the evaluation is to provide the readers of the Report with the results of our evaluation on the following items based on the criteria set by the AA1000 assurance standard. • How well the Company is achieving accountability to the needs of the stakeholders, and• How well the Company is responding to their expectations.

The criteria are based on the three principles of the AA1000 standard. • Materiality: Knowing material (important) issues to itself and its stakeholders• Completeness: Understanding its impact and stakeholders' expectations related to the material issues• Responsiveness: Responding to stakeholders' expectations

We evaluate the credibility of information contained in the Fujifilm Sustanability Report 2004 (“the Report”) report using our own established methods. We have witnessed the Company’s reporting process, and also observed the Company’s communication with its stakeholders at events such as the Sustainability Report Readers Opinion Meeting and the International Stakeholders Dialog, as a third party. We evaluate the process of two major corporation activities, i.e. “execution of actions” and “information disclosure”, from a viewpoint whether the Company completely understands the comments and needs of the stakeholders and responds to the material needs in a complete manner. We made such evaluation in terms of the following aspects: environmental aspect, to which the Company’s efforts are advanced, economic, social and ethical aspect.The evaluation took place based on the schedule on the right.

Introduction

Objectives of Evaluation

Evaluation Process

Reason for Implementing Evaluation Based on AA1000 Assurance Standard

Evaluation Results

For Future Reference

Chart: Evaluation Results of the Company’s CSR Activities Based on AA1000 Assurance Standard

Condition of Information DisclosureNeeds of Stakeholders Action Steps

Large categories

Vision, policy and activities

Sustainable management analysis

Stakeholderinvolvement

Small categories

Green policy (Environmental)

CSR policyPersonnel and training system

Labor safety, hygiene and disaster prevention

Risk management

Material purchaseComplianceResponse to customers

Communication toolsSystematic and consistent responseEnvironmental accounting

EVA

LCAEco-efficiency

Step 1:Establishing a plan

Step 2:Developing a structure

Step 3:Collecting data

Step 4:In-house usage

Information disclosed or not

disclosed

Expansion and improvement of content(compared to previous

year)

Insufficient disclosure and improvement of content

• Evaluation of Action Steps:

• Evaluation of Level of Information Disclosure:

Response made before 2003, including the group companiesResponse made after 2003, including the group companies Partial response Insufficient responseDisclosed information Expanded and improved content from previous year’s report

Furthermore, we interpret the three principles of the AA1000 Assurance Standard – Materiality, Completeness and Responsiveness – as follows:

• Evaluation of Materiality and CompletenessWe first classify the more important issues among stakeholders’ needs into three large categories (and 14 small categories). We then evaluate whether the Company understands and is responding to all of these key issues.

• Evaluation of ResponsivenessWe then proceed to evaluate each issues classified in the above procedures in the following two process. • Firstly, we evaluated the completion level of actions to the goals, which the management set to achieve a higher

stage of CSR toward next year or in the mid- to long-term. The completion levels are classified into the following steps as shown in the below chart : Step 1 - Establishing plans; Step 2 - Developing a structure; Step 3 - Collecting data; Step 4 - In-house usage.

• Secondly, we evaluated the level of Information Disclosure as shown in the chart below. We evaluated whether information associated with each issues are disclosed in the Report and whether the content is expanded and improved in comparison to the previous reports.

We have compiled the evaluation results (see the chart below) based on the AA1000 Assurance Standard criteria. This chart is an analysis of which action step the Company takes and how the Company discloses information in order to meet the needs of stakeholders.

Through communications with stakeholders, the management and persons responsible for each functions of the Company has changed their awareness of stakeholders’ expectations and needs. As result, they successfully integrated the stakeholders expectations into the action plans for implementation of VISION75, the medium-term management plan. However, in a long-run the Company has just reached the starting line to achieve “the newly realized CSR”. We hope that the Company address the challenges described below to achieve a higher level of CSR activities.

Challenges Related to Taking Action

• Consistent approach toward CSR by each and every Fujifilm Group company• Use of sustainable management analysis results, such as eco-efficiency and environmental accounting, in group

management• Seeing that material opinions are actively reflected in management activities through communication with the

stakeholders

Challenges Related to Information Disclosure

• Complete and comprehensive disclosure related to the stakeholders’ needs

We hope that the Company establishes a reporting policy based on the AA1000 and pursue the CSR activities according to the policy.


Independent Assurance Report

This is a translation of independent assurance reportof the Japanese version of the Fujifilm SustainabilityReport 2004.

1. Scope and Objectives of AssuranceWe have been asked to review the “Fujif i lmSustainability Report 2004” (“the Report”) of Fuji PhotoFilm Co., Ltd. (“the Company”). The preparation of theReport is the responsibility of the Company. The objective of this assurance is to express ourindependent opinion on:

1. The reliability of processes used to identify, collectand report significant environmental informationincluded in the Report.

2. The consistency of information included in theReport with supporting documents obtained duringour review process on a sampling basis.

This independent Assurance report, however, does notprovide any assurance on the completeness of theinformation contained in the Report.

2. Basis of OpinionCurrently, there are no generally acceptedenvironmental reporting and assurance standards.Therefore, we have referred to emerging practices andguidance. To reach our opinion, we conducted the followingprocedures at the Head quarters, Yoshida-Minami Site,Fuji Photo Equipment Co., Ltd. and Fujifilm ImagingSystems (Suzhou) Co., Ltd.

At the Headquarters• Interviews with management and persons

responsible for processes to control, collect andcompile information reported from sites in Japan andabroad; and

• Inspection and comparison of information obtainedwith related documents.

At the sites we visited• Interviews with management in charge of

environmental matters and representatives from eachoperational unit who are responsible for informationcontrol, collection and reporting; and

• Inspection and comparison of information obtainedwith related documents.

3. OpinionOn the basis of the above work, we have reached thefollowing opinion:

1. The processes used to identify, collect and reportsignificant social and environmental informationincluded in the Report were appropriate and reliable.

2. The information included in the Report is consistentwith the supporting documents obtained on asample basis during our review process. Nosignificant errors that should have been correctedwere identified as a result of our test.

(Review Item)

(Sites Inspected)

Classification ofInformation

Social Information

EnvironmentalInformation

Items Reviewed

Corporate ethics, human resources,purchasing, customer/partnerrelationships, social contributions, socialaccounting

Green policy, environmentalmanagement systems, chemicalsubstances, wastes, energy consumptionand greenhouse gas emissions, water,effluents, emissions to air, noise,vibration, soil and underground watercontamination study, environmentaleducation, environment consciousdesign, green purchasing, environmentalaccounting

ChuoAoyama Sustainability Certification Co., Ltd.(ChuoAoyama PricewaterhouseCoopers Group)

Fujifilm Imaging Systems(Suzhou) Co., Ltd.

China Imaging solutions (Groupcompany)

Independent Assurance Reportfor the Fujifilm SustainabilityReport 2004

August 14, 2004

To: Shigetaka Komori,President and CEO, Fuji Photo Film Co., Ltd.

Site Name

Fuji Photo Film Co., Ltd.Headquarters

Fuji Photo Film Co., Ltd.Yoshida-Minami Site

Fuji Photo EquipmentCo., Ltd.

Country

Japan

Japan

Japan

Business Lines (Site Classification)

Headquarter functions

Information solutions (Domestic site)

Imaging and informationsolutions (Group company)

*Reference materials are listed on the Company website.


During this past year, Fujifilm actively implemented dialog to

improve communication with our stakeholders. For example, we

hosted events such as the International Stakeholders Dialog,

Fujifilm Sustainability Report 2003 Readers Opinion Meeting,

and the Environmental Communication Meeting in

Minamiashigara. These events represent, in a concrete manner,

our desire to improve communication, and they served as an

opportunity to obtain various opinions and comments that we

will apply in order to improve our future activities and

information disclosure.

We have proactively reflected the opinions we received through

returned surveys and direct conversations with our stakeholders

in this Sustainability Report 2004 as well. At the same time, we

made efforts to establish and maintain ample communication

with our in-house stakeholders. Selected editors from each

division collaborated to produce this report, incorporating the

frank opinions and comments of our employees.

The Sustainability Report 2004 was put together so that it is easy

to read and understand. We aimed to simultaneously satisfy our

stakeholders’ desire to see and know the Fujifilm Group’s

approach to sustainability, as well as our desire to communicate

it. However, we also face the dilemma of an increasing number

of pages each year. We intend to decrease the pages in our

reports in the coming years by expanding our website coverage

and determing which information should be included in the

Sustainability Report.

We will continue to practice PDCA (Plan � Do � Check � Act)

to communicate both inside and outside of Fujifilm. We will also

take our stakeholders’ comments seriously, and integrate their

concerns as we carry out our new activities. Your comments and

opinions are very much appreciated.

If you have any questions or comments about the contents of this report,or about Fujifilm’s environmental conservation activities, please directthem to the addresses below. You could also fill out the attached ques-tionnaire. We appreciate your frank comments and opinions.

CSR Division, Tokyo Head Office, Fuji Photo Film Co., Ltd.26-30 Nishiazabu 2-chome, Minato-ku, Tokyo 106-8620Tel: +81-3-3406-2291 Fax: +81-3-3406-2131

�Please address your inquiries on sites to the following:

Environmental Protection & Security Division, Ashigara Factory210 Nakanuma, Minamiashigara-shi, Kanagawa 250-0193Tel: +81-465-73-6090 Fax: +81-465-73-6909

At Fujicolor QuickSnap Cyclical Manifacturing Factory, we areaccepting requests for group tours of the factory. Please feel freeto contact us for more details.Tel: +81-465-73-6040 (Ashigara Factory Tour Reception at theCorporate Secretarial Department)

Environmental Protection & Security Section, General AffairsDivision, Odawara Factory2-12-1 Ogi-cho, Odawara-shi, Kanagawa 250-0001Tel: +81-465-32-2121 Fax: +81-465-32-2180

Environmental Protection & Security Section, General AffairsDivision, Fujinomiya Factory200 Onakazato, Fujinomiya-shi, Shizuoka 418-8666Tel: +81-544-26-7175 Fax: +81-544-26-7176

Environmental Protection & Security Section, General AffairsDivision, Yoshida-Minami Factory4000 Kawajiri, Yoshida-cho, Haibara-gun, Shizuoka 421-0396Tel: +81-548-32-7319 Fax: +81-548-32-7126

Miyanodai DistrictAdministration Department (Environmental Protection & SecurityGroup), Equipment Development and Production Division,Research & Development Management Headquarters798 Miyanodai, Kaisei-machi, Ashigarakami-gun, Kanagawa 258-8538Tel: +81-465-85-2116 Fax: +81-465-85-2105

Asaka DistrictLife Science Research Laboratories (Environmental Protection &Security Group), Research & Development Management Head-quarters3-11-46 Senzui, Asaka-shi, Saitama 351-8585Tel: +81-48-468-2305 Fax: +81-48-468-2307

Factory in U.S.A. Fuji Photo Film, Inc.Environmental Health and Safety Department211 Pucketts Ferry Road, Greenwood, SC 29649Tel: +1-864-223-2888 Fax: +1-864-388-1934

Factory in Europe Fuji Photo Film B.V.Environmental Health and Safety DepartmentOudenstaart 1, P.O.Box 90156, 5000 LJ Tilburg The NetherlandsTel: +31-13-579-1488 Fax: +31-13-579-1586

Factory in China Fujifilm Imaging Systems (Suzhou) Co., Ltd.138 Chang Jiang Road, New District, Suzhou215011, Jiansu, P. R. ChinaTel: +86-512-6825-1188 Fax: +86-512-6825-7122

Contents of the Fujifilm Sustainability Report, as well as the site reports of ourdomestic workplaces are also available on the Fujifilm website:http://www.fujifilm.co.jp/corporate/environment/report/index.html

Editor’s Notes

Contact Information

Contact Information and Editor’s Note

September 2004

Tadahiko IzushiEcology & Quality Management Department, CSR Division

Issued on September 2004

Next Scheduled Issue: September 2005

This report is printed on100% recycled paper.

This report is printed withenvironmentally friendly soyink approved by the AmericanSoybean Association.

This report is printed and bound according to theGPN-GL14 offset printing service orderingguideline.• Paper: 100% recycled paper• Ink: Soy ink (Aroma-free vegetable oil based

OP coating is used for the front cover.)• Binding: Shred-proof, notch binding bound

with EVA hot-melt glue