Sales of the FinePix series of digital cameras and WV Film for LCDs continued to be robust, and sales of the DocuCentre Color series of digital color multifunction machines were also strong. Consolidated revenue in this region declined 1.9% to ¥1,330.1 billion.

New Factory for Manufacturing FUJITAC and WV Film for LCDs

To respond to rapid growth in the LCD market, Fujifilm is increasing its supply capabilities for LCD materials. Manufacturing subsidiary FUJIFILM Opt Materials Co., Ltd., began operating a new FUJITAC production plant in March 2003 and proceeded with the construction of two additional manufacturing facilities - one for WV Film, used to widen viewing angles in LCDs, and one for FUJITAC, a polarizer protection film - which are scheduled to begin operating in February 2004 and August 2004, respectively. Fujifilm intends to continue proactively working to expand its LCD material business centered on four products - FUJITAC, WV Film, Transer, and CV Film.

Merger of distribution Subsidiaries

Since making Fuji Xerox a consolidated subsidiary in March 2001, Fujifilm has striven to realise additional synergies within the Fujifilm Group. Aiming to strengthen the Fujifilm Group's distribution system while increasing efficiency and reducing costs, we merged our distribution subsidiaries - FUJIFILM Logistics Co., Ltd., which remains, and Fuji Xerox Distribution Co., Ltd., - effective April 1, 2003.

DocuWorld® 2002

Open Office Frontier
Fuji Xerox announced its new "Open Office Frontier" business vision at DocuWorld® 2002 held in October 2002 to celebrate the 40th anniversary of the company's founding. "Open Office Frontier" refers to Fuji Xerox's goal of helping corporate customers expand their businesses and enhance their operational efficiency, intellectual competitiveness, and creativity by enabling them to broaden their scope and capabilities through Fuji Xerox's document management services. While conventional document management services are generally carried out within single companies, services based on the "Open Office Frontier" concept can also operate outside offices to facilitate cooperation among companies, thereby allowing customers to better cope with the demands of an emerging era characterized by the increasing diffusion of ubiquitous networking as well as a need for innovative modes of intercompany collaboration. DocuWorld® 2002 presented the "Open Office Frontier" business vision as well as the services and technologies expected to realise this vision in the near future.