Governance Decision-making Process for Priority Risks Extracting the risks Risk assessment Risk items Risks that are likely to impact our Group The level of impact of each risk item and its (1) Impact of economic changes and (60 items in five areas) are extracted. occurrence probability are assessed quantitatively. foreign exchange fluctuations on business performance 1) Strategy risks high (2) Environmental changes and (1) Failure of new business or facility competition in each business Priority risks field investment (3) Manufacturing activities (2) Change in market needs (4) Product quality & product liability Impact level (5) Medical business and 5) Climate change regenerative medicine business (1) Physical risks caused by climate change low (6) Logistics (2) Transitional risks caused by climate change (7) Patents and other intellectual low Occurrence probability high property rights (8) M&A, business partnerships, etc. (9) Human resources recruitment (10) Internal control (including Action on risks Priority risks and decision-making on counteractions prevention of fraud and misconduct) (11) Information systems (including Action on priority risks taken at each ESG Committee decides on the priority risks in information security and organization, in accordance with the action policy our Group and the policies for addressing them. privacy protection) (12) Public regulations (13) Environmental regulations (14) Climate change (15) Large-scale disasters and Report to and supervised by the Board of Directors infectious diseases 2. Priority risks in FY2023 We recognize that the following major risks might affect our financial condition and the results of our business operations. On the page for Risks on business. etc. of the Yuka Shoken Hokokusho, in addition to the following items, economic risks such as loss of business opportunities are described. 127th Yuka Shoken Hokokusho (Securities Report) https://ir.fujifilm.com/ja/investors/ir-materials/securities-reports.html (in Japanese only) Risk Items Status of Action Information security (cyber- To reinforce measures against cyberattacks, installation of sensors to monitor the attacks, confidential data behavior of PCs, servers and development of a global scale security surveillance centers leakage & personal information have been completed. leakage) Rising prices and shortfalls in Procurement from multiple origins for raw and other materials used in priority raw and other materials businesses and products. The manufacturing, development and marketing sites of the Group, as well as our suppliers, are distributed across various countries. The latest information on conditions Geopolitical risks is collected, and instructions on employee safety, asset protection and economic activities decided as part of the risk management system. The instructions are delivered promptly to minimize damage. Large-scale natural disasters Risk assessment, monitoring and BCP development have been conducted for each business site and supply chain. Low-carbon investments are made by reducing CO emissions in the product lifecycle, Climate change risks 2 developing manufacturing methods with low environmental impact and the internal carbon pricing scheme. Reinforcement of chemical Strict regulation requirements are likely to lead to prohibition of the use of existing raw substances management materials. We recognize that PFAS control is a priority issue and plan to minimize the impact by developing substitute or alternative materials. Due to the strict restrictions and the government approval required in the healthcare Corruption and bribery business, corruption poses a high risk. Preventive measures will be strengthened, chiefly through employee education and monitoring middlemen through outside vendors. Pandemic and infectious To reduce the impact of infectious diseases spreading through the business, each diseases organization has developed its own BCP for comprehensive prevention of infection within the organization. 33 FUJIFILM Holdings Corporation Sustainability Report 2023