FUJIFILM Holdings Co., Ltd. (Headquarters: Minato-ku, Tokyo; President and CEO: Teiichi Goto) is a bioCDMO that responds to unmet medical needs and contributes to improving medical access^※2I would like to inform you that social bonds (social contribution bonds) are scheduled to be issued in 2024/7 as a means of raising funds related to the business. The maximum amount to be issued is 200 billion yen, and it is expected to be the largest social bond issuance in the domestic corporate bond market. Note that this is the second time since April 2022 that we have issued social bonds.

Biopharmaceuticals are expected to be highly effective in treating unmet medical needs, including intractable diseases and rare diseases. Market growth of 8% per year from 2022 to 2030 due to increased development of biopharmaceuticals and increased demand for existing products^※3is expected. As global demand expands, building a production system that can stably supply biopharmaceuticals has become an even more important issue in order to improve access to medical services, and increasing production capacity through bioCDMO is an effective solution to this issue.

Fujifilm's bioCDMO business has responded to growing demand for biopharmaceuticals by actively investing not only in antibody pharmaceuticals but also by increasing equipment for process development and contract manufacturing of gene therapy drugs, cell therapy drugs, etc. in the cutting-edge medical field. Large-scale new facilities, which are currently being strengthened in the United States and Denmark, will be smoothly launched from 2024 to 2026, production capacity will be greatly expanded, and further business expansion will be promoted by promoting the development of high-efficiency and high-productivity technologies.

The funds raised through the social bonds to be issued this time will be used to invest in the growth of the bioCDMO business, and will contribute to responding to unmet medical needs and improving medical access through a stable supply of high-quality biopharmaceuticals.

Fujifilm has a CSR plan “Sustainable Value Plan 2030,” which targets fiscal 2030^※4“Health” has been defined as one of the priority fields. We will contribute to the development of global medical care and the maintenance and promotion of people's health through the global provision of cutting-edge products and services.

• *1 This is the largest corporate bond issued domestically as a social bond at the time of announcement on July 1. Our research.
• *2 Abbreviation for Contract Development & Manufacturing Organization. It provides a wide range of services from cell line development in the early stages of drug development to production process development, stability testing, development/manufacture of investigational drugs, and manufacture of commercially available drugs.
• *3 Our estimates are based on EvaluatePharmanov, 2023.
• *4 Fujifilm has set targets in the four priority areas of “environment,” “health,” “lifestyle,” and “work style,” and “supply chain” and “governance,” which are the foundation of business activities, and aims to realize a sustainable society by providing new value. For details, see the following URL https://holdings.fujifilm.com/ja/sustainability/plan/svp2030

1. Overview of corporate bonds to be issued

FUJIFILM Holdings Co., Ltd. 20/21/22/23rd Unsecured Corporate Bonds
(Limited mutual agreement between corporate bonds, same rank, with special agreement) (social bonds)

The total amount is up to 200 billion yen

3 years/5 years/7 years/10 years

July 2024

Used to refinance existing investments related to the establishment of new manufacturing sites, M&A, equipment investment related to production capacity enhancement, and development of high-efficiency and high-productivity technology in the bioCDMO business

Daiwa Securities Co., Ltd.

Daiwa Securities Co., Ltd., Nomura Securities Co., Ltd., SMBC Nikko Securities Co., Ltd., Mizuho Securities Co., Ltd.

*5 When issuing social bonds, “structuring agents” support the issuance of social bonds through advice on formulating frameworks and obtaining second-party opinions.

2. Formulate a social bond framework and obtain second party opinions

When issuing this social bond, the four elements of ① use of raised funds, ② project evaluation and selection process, ③ management of raised funds, and ④ reporting were describedSocial bond frameworkIn addition to newly formulating this framework, DNV Business Assurance Japan, which is an external organization, on compatibility with ICMA's “Social Bond Principles 2023" and the Financial Services Agency's “Social Bond Guidelines 2021 Edition”External evaluation (second party opinion)It has been acquired.

About the core companies in Fujifilm's bioCDMO business

Fujifilm is working on the bioCDMO business with FUJIFILM Diosynth Biotechnology, which has bases in the United Kingdom, the United States, and Denmark, as the core company. FUJIFILM Diosynth Biotechnology, which develops and manufactures all types of biopharmaceuticals such as antibody pharmaceuticals, protein preparations, gene therapy drugs, and vaccines, has a unique high productivity technology “PaveWay” that leads the industry, has a track record and experience spanning over 30 years” “ApolloWe provide comprehensive contract services from cell line development using “X” to process development, investigational drug manufacturing, and commercial production.

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• * The content of this article is current at the time of publication. Please note that there may be cases where it differs from the latest information (end of production and sales, changes in specifications and prices, organization and contact information, etc.).