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Business Presentation for Industrial Products Sep. 11, 2013 FORWARD-LOOKING STATEMENTS Forward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are management’s current assumptions and beliefs based on currently available information. Such forward-looking statements are subject to a number of risks, uncertainties, and other factors. Accordingly, actual results may differ materially from those projected due to various factors. 2 Contents Contents 1. Strategies and Positioning of the Industrial Products Division 2. New, Highly Functional Materials EXCLEAR Backsheets for Solar Cells CO 2 Separation Membranes Ion Exchange Membranes 3. R&D and Sales Structure 4. Summary

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Page 1: Business Presentation for Industrial Products - Fujifilm · Business Presentation for Industrial Products ... 1.Strategies and Positioning of the ... ・High sensitivity that increases

Business Presentation for Industrial Products

Sep. 11, 2013FORWARD-LOOKING STATEMENTSForward-looking statements, such as those relating to earnings forecasts and other projections contained in this material, are management’s current assumptions and beliefs based on currently available information. Such forward-looking statements are subject to a number of risks, uncertainties, and other factors. Accordingly, actual results may differ materially from those projected due to various factors.

2

ContentsContents

1.Strategies and Positioning of the Industrial Products Division

2. New, Highly Functional Materials - EXCLEAR- Backsheets for Solar Cells- CO2 Separation Membranes- Ion Exchange Membranes

3. R&D and Sales Structure

4. Summary

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1. Strategies and Positioning of the Industrial Products Division

FujifilmFujifilm’’ss Highly Functional MaterialsHighly Functional Materials

Change in highly functional materials

Photographic film/Motion picture film

Graphic arts film

Medical-use X-ray film

FUJITAC protective film for polarizers

Foundation

1934

Industrial-use X-ray film

1936

1954

1958

1996 WV Film expanding view angles

1965 PS plates 1996 CTP plates

1963 Magnetic tapes (videotapes for broadcast and others)

Note: Typical highly functional materials written above

Since its foundation, Fujifilm has created new, highly functional materials one after another by utilizing photographic technologies.

4

Fujifilm’s highly functional materials

Created by adding materials, synthesized to express distinctive functions, onto film/base through manufacturing technologies

Photographic Technologies Utilized in Highly Functional MaterialPhotographic Technologies Utilized in Highly Functional Materialss

Cyan

Magenta

Yellow

Film/Base・TAC film・PET film・Aluminum base

Material synthesis・Photosensitive materials・Magnetic recordingmaterials ・Optical materials, etc.

Manufacturing technology・Coating, film formation・Film extension

Quality assurance technology・Defect free in a wide range・Quality assurance by non-destructive testing

About 20μm

About 120μm

~~

Cross section of color film

Before development

To realize bright color, over 100

kinds of organic synthesis

compounds are uniformly coated

and formed in nearly 20 layers.

Total ability of every technology Products made by adjusting multiple technologies with each other

Analysis/Assessment technology・Quality improvement,

Process improvement

1. Strategies and Positioning of the Industrial Products Division

After development

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Positioning of the Industrial Products DivisionPositioning of the Industrial Products Division

Positioning and featuresA division that incubates the development of new products and creates high-value-added “functional materials” (highly functional materials) based on Fujifilm’sfundamental technologies

FPD materials are one of the products developed by this division.

Highly functional materials, one of the three priority business fields of healthcare, highly functional materials, and document, are related to this division

Concerning new, highly functional materials, this division started shipment of the touch panel sensor film EXCLEAR and backsheets for solar cells in 2012.

1. Strategies and Positioning of the Industrial Products Division

6

Sensor film EXCLEAR

Backsheets for solar cells/Heat insulation film

Existing Field

New Field

CO2 separation membranes (under development)

Ion exchange membranes (under development)

Offer new, highly functional

materials and expand them as a new business

B-to-B productsOffer products that

match specific needs

Main ProductsMain Products

Industrial Products Division

Materials for touch panels

Environment/Energy

Non-destructive testing Industrial X-ray film/CR equipment

Information recording paper Prescale/Pressure measurement film

Information materials and equipment Micro sensitive material

Filtration Micro filters

1. Strategies and Positioning of the Industrial Products Division

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Example of Development of Highly Functional MaterialsExample of Development of Highly Functional Materials

Highly functional materials within the division

Industrial-use X-ray film for non-destructive testing

Pressure measurement filmPrescale

Security labelFORGE GUARD

Micro filters that realizeprecision filtering

Expand highly functional materials business through development/offer of materials with advanced functions by matching new needs (business

domain) with new seeds

Furtherexpansion

1. Strategies and Positioning of the Industrial Products Division

8

Strategies for Highly Functional MaterialsStrategies for Highly Functional Materials

Material synthesis technologiesScale up, cost reduction

Inorganic materials

Analysis technology

Organic materials

Manufacturing technologiesCoating/Film formation, technology to add functions

Highly functional materials

Filter materials

Environment/Energy field

Industrial Products Division

CO2 separation membranes

Ion exchange membranes

Heat insulation filmTransparent

conductive film

Materials for solar cells

ECO materials

Electronics field

Next-generation semiconductor materials

Materials for touch panels

Sensor filmEXCLEAR

Backsheets for Crystal-type solar cells

1. Strategies and Positioning of the Industrial Products Division

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EXCLEAREXCLEAR

2. New, Highly Functional Materials

Main touch technology and its features

Touchpanels

Thin and lightComplicated and not suitable for

large-sized touch panels

Used to be a major type with low costTransmittance and durability are low

Main type in use now. Highly durable and useable in large-sized touch

panels and multi-touch applications.

Used mainly in all-in-one PCsMay respond in unintended ways

Problems regarding smaller sizes and response to touch

Adopted in only a few instances

ITO film

ITO glass (OGS, etc.)

ITO alternative(silver/copper, etc.)

Touch panel market 2012

Note: From Displaysearch, Dec. 2012

Capacitive

Resistive

OGS

Others

Resistive

Capacitive

Optical

Acoustic

In-cell

10

Industrial trend

A resistive-type panel used to be the main technology, but due to durability and transmittance issues, the capacitive type has become the main type.

Small- and medium-sized touch panels

Large-sized touch panels

・The main devices are smartphones and tablets. They account for a major part of the present touch panel market.

・ITO film is mainly used, since low resistance is not strictly required. ITO glass, including OGS, is partly used.

・Have relatively many players.

・The main devices are note PCs. Market growth is expected since demand for note PCs with a touch panel function is projected to grow.

・ITO glass is mainly used, since low resistance is required as the panel gets larger.

・The number of players is decreasing aspanels get larger.

Film using silver and copper is appearing as an alternative to ITO, since ITO film has difficulty with transmittance and ITO glass has difficulty with its strength.

EXCLEAR, with low resistance and high transmittance, mainly targets medium-sized to large-sized touch panels.

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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LCD panel

G(P)/F/F

Film/ Y

OCA

OCA/OCR

Film/ X

OCA

Cover

OCA/OCR

G(P)F2Cover

LCD panel

OCA

Film/ Y/X

EXCLEAR

G1G

Glass/ X

LCD panel

OCA

OCA/OCR

Cover glass/ Y

OGS

LCD panel

OCA or OCR

Cover glass/ Y/X

(OCA)

(PET)ASF

Comparison of touch panels

Glass type

Note: Typical types

Film type

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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① Simple structure of PET film with silver mesh on both sidesSimultaneous formation of mesh pattern and trace line・Utilizing Fujifilm’s silver halide photographic technologies・Simplify the touch panel modulation process

② Low resistance and high light transmittance leading to increase in touch detection

Resistance: 50Ω/□, Transmittance: 94% (laminated: Evaluated by Fujifilm)

・Adjust to large-sized touch panels thanks to low resistance・High sensitivity that increases touch detection

③ High flexibility available for 3D forming・High adherence/flexibility with no change in sheet resistance after bending test・Thermoforming is possible with no cracking

Features of EXCLEAR

<EXCLEAR>A conductive film used in capacitive touch panels. It is made by utilizing Fujifilm’ssilver halide photographic technologies.

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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Simple structure of PET film with silver mesh on both sides

Simultaneous formation of mesh pattern and trace line on both sides of PET film

X line

Y line

Film

Side

Silver mesh

Simplify the touch panel modulation processSimultaneously form mesh pattern and trace line by utilizing Fujifilm’s silver halide photographic technologies.No need to consider bounding accuracy.

Feature of EXCLEAR ①

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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Comparison of manufacturing process

ITO/PET YITO/PET X

Materials(ITO film/glass, etc.)

Modulation Touch panel manufacturer

Set manufacturer

Controller IC manufacturer

Choose partner

Pattern design

EXCLEARcover range

Note: GFF manufacturing process

Improve yield by using EXCLEAR and simplifying manufacturing process

Part of after-

process

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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Strategies

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012 2014 2018

0%

5%

10%

15%

20%

25%

30%

35%

Overall touch panel

Medium to large size

Ratio

Touch panel market

Note: Evaluated by Fujifilm, based on Displaysearch

(Ten thousand m2)

・Demand for tablets is robust while demand for touch panel equipped models in such large-sized displays (around 11 inches to 24 inches) as note PCs and all-in-one PCs is increasing.

・The ratio of large-sized displays within the overall touch panel market is expected to show rapidgrowth.

Expand the business by mainly targeting medium- to large-sized touch panels・ Growth is expected not only for tablets but also for note PCs and all-in-one PCs.・ The number of players decreases while the advantages of using EXCLEAR are better

shown as the panel size increases.

EXCLEAREXCLEAR

2. New, Highly Functional Materials

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BacksheetsBacksheets for Solar Cellsfor Solar Cells

Main types and its features

Crystal silicon

Amorphous silicon

Solar cells

Organic type

Silicon type

Compound type

CIGS

CdTe

Others

Dye sensitized

Organic semiconductors

Traditional type with high performanceThere are roughly two types (single-crystal and multicrystalline), and the multicrystalline type is

presently popular.

Uses super-thin silicon filmGenerally less efficient than single-crystal

silicon, but it is lighter and more suitable for mass production

Has performance similar to the multicrystalline typeMarket is expected to grow

Uses cadmium telluride, which is a toxicantLow cost and environmentally friendly

Easy to manufacture and can be colorfulImprovement needed to increase life span and

efficiency

Uses semiconductor thin film with organic materialImprovement needed to increase life span and

efficiency

2. New, Highly Functional Materials

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Industrial trend

Crystal silicon is the main type and accounts for the majority of backsheets within the solar cell market.Three basic features are roughly required for backsheets that are used to protect the reverse side of solar cells and secure insulation.

Backsheet

Cross section

Cost

Durability

Electric insulationEspecially “hydrolysis resistance”,

“humidity resistance”, and “physical strength” are the keys.

Basic features required

Cell

Tab

Protection frame Cover glass

Filler

BacksheetsBacksheets for Solar Cellsfor Solar Cells

2. New, Highly Functional Materials

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① High durability

② High UV resistance

③ High dimensional stability

Fujifilm’s backsheet FI HF realizes high durability, high UV resistance,

and high dimensional stability by using

1, coating technology 2, film formation technology 3, and technology to add functions

that have been accumulated through the photographic film business.

Hydrolysis-resistant PET

Easy adhesive EVA layer

Weatherproof layer(fluorine)

Structure of FI HFFeatures of FI HF

BacksheetsBacksheets for Solar Cellsfor Solar Cells

2. New, Highly Functional Materials

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TÜV (Rheinland)Partial Discharge passed

Acquired material certification in both UL and JET

Passed partial discharge test necessary to acquire TÜV (Rheinland) module certification

UL certificationNo. E350701

URL:

http://data.ul.com/link/plas.aspx?ULID=101085063

JET certificationNo. 1611-C9801-113

Certifications

BacksheetsBacksheets for Solar Cellsfor Solar Cells

2. New, Highly Functional Materials

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Comparison

Coat functional layer onto hydrolysis-resistant PET and realize high durability

General PET

Weatherproof film

Adhesive layer

Adhesive layer

Easy adhesive EVA layer (white)

Hydrolysis-resistant PET(three times as durable as to general PET)

Weatherproof coating layer

Easy adhesive EVA coating layer (white)

Other companies: Bounding typeFujifilm: Coating type

Cross section of backsheet (image)

In addition to base resistance, eliminate detachment risk by not using adhesive layer

BacksheetsBacksheets for Solar Cellsfor Solar Cells

2. New, Highly Functional Materials

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76

78

80

82

84

86

88

2012 2013 2014

150

160

170

180

190

200

210

220

230

240Sales

Area

Strategies

Crystal-type solar cell market

(Billions of yen) (Million m2)

・Reflecting the growth in the crystal-type solar cell module market, the market for backsheets for crystal-type solar cells is expected to grow.

Expand the business in the steadily growing market by promoting its high durability

Note: Evaluated by Fujifilm, based on Fuji-Keizai

BacksheetsBacksheets for Solar Cellsfor Solar Cells

2. New, Highly Functional Materials

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CO2 Separation Membranes

CO2 separation membranes

Membranes are used to remove CO2 from gas produced by the natural gas industry.

Natural gas

Desulfurization

Dehydration

Decarbonation

Gas separation membrane

CO2 removal Methane

Natural gas refining processOverview of CO2 separation

Fuel field

Synthesis gas field

Energy fieldIndustrial exhaust gas

Natural gas refining

Biogas refining

Power generation after burning

Power generation before burning

Blast furnace gas

Hydrogen plants

Hydrogen stations

2. New, Highly Functional Materials

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Comparison of CO2 separation technology

Consume a relatively large amount of energy

Need large facility

Suited for gas with high pressure

Able to simultaneously separate H2Sand CO2

Physically absorb CO2 under high pressure and low temperature by using an absorber such as methanol. Absorbed CO2 is separated by decompression or heat.

Physical absorption process

Need less energy/space

Low costSuited for gas with low pressureMerit

Performance of chemical absorption process is better at this point.

Consume massive amount of energy

Need large facilityDemerit

Selectively separate CO2 by utilizing permiability rate of the membrane.

Use alkaline solution (amine, etc.) as an absorber and absorb CO2

through a chemical reaction. Absorbed CO2 is separated by heat.

Mechanism

Membrane separationChemical absorption process

(present majority)

Membrane separation with less energy and space is expected to grow, due to an increase in the natural gas field with high CO2 emissions levels, the small-size gas

field, and the offshore gas field.

CO2 Separation Membranes

2. New, Highly Functional Materials

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CO2 separation membrane market

COCO22

NN22HH22

CHCH44

<Natural gas>- Combining with the chemical

absorption process is expected due to an increase in the natural gas field where high CO2 levels are emitted.

<Hydrogen manufacture>- Used during the manufacture of

hydrogen fuel

<Power plant CCS*>- Robust market growth is

expected owing to stricter environmental restrictions.

*CCS: Carbon dioxide capture & storage. A broad term that encompasses a number of technologies that can be used to separate and capture CO2 from large-scale CO2 emission sources, such as thermal power plants, ironworks, and the gas/oil field, and inject it deep underground.

CO2 Separation Membranes

2. New, Highly Functional Materials

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Ion Exchange MembranesIon Exchange Membranes

Ion exchange membranes

Membranes with ion permselectivity. There are cation exchange membranes and anion exchange membranes. By utilizing this selective permeability, membranes can be used for water softening, the manufacture of salt from seawater, and the manufacture of ultrapure water.

Ion exchange membranes

AnodeCathode

+

+

+

+

--

-

-

+

Anion exchange membrane

Cationexchange membrane

Utilize selective

permeability

Water softening

Manufacture of ultrapure water

Manufacture of salt from seawater

2. New, Highly Functional Materials

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Market of water softeners for drinking water

Hard water is the standard in countries except Japan.By installing water softeners, the water can be changed from hard water to soft water. In Europe and the United States, water softeners for drinking water are used.

No need for steady replacement or salt for regeneration.

Operating times are longer while maintenance intervals and costs are lower.

Since resins are consumables, steady regeneration using salt or replacement is necessary.

Most of the water softeners for drinking water adopt this type.

Features

Use selective permeability of the membraneUse adsorptivity toward resinMechanism

Ion exchange membraneIon exchange resin

Demand for ion exchange membranes, which do not need steady replacement and are cheaper, is growing especially in the United States, where some states are considering emission regulations for drugs or salts

used to regenerate ion exchange resin for water softeners.

Ion Exchange MembranesIon Exchange Membranes

2. New, Highly Functional Materials

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Market of ion exchange membranes

Water softener for drinking water

Industrial water

DesalinationKitchen

Bath

Lavatory

Use ion exchange resin at presentThe target is water softeners for drinking water in Europe and the United States.

Ion Exchange MembranesIon Exchange Membranes

2. New, Highly Functional Materials

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3. R&D and Sales Structure

CrossCross--sectional team within the Companysectional team within the Company

Development

(FUJIFILM Advanced Research

Laboratories)

Manufacture

(FujinomiyaFactory)

Sales

(Industrial Products Div.)

Project leaderGeneral manager of Industrial Products Div.

Working team

Backsheets for solar cells

EXCLEAR

Establish a cross-sectional working team under the project leader for each product and speed up dealings with customers

while determining their true needs

Project leaderGeneral manager of Industrial Products Div.

Development

(FUJIFILM Advanced Research

Laboratories)

Manufacture

(Kanagawa Factory

Ashigara site)

Sales

(Industrial Products Div.)

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4. Summary

Future StrategyFuture Strategy

Through utilization of Fujifilm’s fundamental technologies, expand the business by developing/offering epoch-making

highly functional materials that match the market needs

Backsheets for crystal type solar cells and related

products

Touch panel related products

Create/Expand new highly

functional materials

UV scale

Environment/Energy field

CO2 separation membranes

Ion exchange membranes

Inspection field

We will use leading-edge, proprietary technologies to provide top-quality products and services that contribute to the advancement of culture, science, technology and industry, as well as improved health and environmental protection in society. Our overarching aim is to help enhance the quality of life of people worldwide.

Corporate Communication Office, Corporate Planning Div.

http://www.fujifilmholdings.com/en/index.html