FUJIFILM Holdings Corporation (the “Company”) resolved as follows at a meeting of its Board of Directors held on January 31, 2018 to enter into an agreement with its subsidiary Fuji Xerox Co., Ltd. (“Fuji Xerox”) and Xerox Corporation (a U.S. corporation listed on the New York Stock Exchange (“NYSE”) (“Xerox”)) to the effect that Xerox will make Fuji Xerox a wholly-owned subsidiary, and that the Company will own 50.1% of the shares of Xerox by way of subscribing for a capital increase by third-party allotment of Xerox after it makes Fuji Xerox a wholly-owned subsidiary (the Company to own 50.1% of the shares of Xerox after it makes Fuji Xerox a wholly-owned subsidiary, and Fuji Xerox and Xerox being combined under the FUJIFILM group umbrella, is hereafter defined as the “Combination of the two companies”), and the Company has now executed such agreement.

I. FUJIFILM Holdings to own 50.1% of Xerox shares (making Xerox a subsidiary) and combination of Fuji Xerox and Xerox

1. Reasons for the Combination of the two companies

Fuji Xerox is a document solutions company founded in 1962, currently 75% of whose capital was invested by the Company and 25% by Xerox. Through a joint venture based partnership spanning 56 years, the Company and Xerox have deepened their multi-faceted mutual cooperation on technology, etc. and built a strong relationship of trust. Fuji Xerox is even known as a rare success story for a cross-border joint venture. The Combination of the two companies is the optimal conclusion for both the Company has been determined by considering various options to increase corporate value, and it is expected that this combination will generate a large number of synergies. Fuji Xerox is mainly engaged in business in Japan and the Asia Pacific region, while Xerox is mainly engaged in business in U.S. and Europe. The two companies have provided solutions that solve management and business challenges, revolutionizing offices with xerographic technology and supporting the communication activities and value creation of customers through a variety of products and services.

Now, the Company will make Xerox an owned subsidiary after Xerox makes Fuji Xerox a wholly-owned subsidiary, and Xerox will be renamed “Fuji Xerox” (in this announcement, “New Fuji Xerox”). The Company will hold 50.1% of the shares of New Fuji Xerox, and New Fuji Xerox will maintain its listing on the NYSE. Also, it is planned that the current brands of both Fuji Xerox and Xerox will continue to be used after the Combination of the two companies.

New Fuji Xerox will become the largest document solutions company in the world in revenue size, and by deploying its operations worldwide with a uniform management strategy, New Fuji Xerox will realize further acceleration of business growth and new value creation for customers. In addition to its size, New Fuji Xerox will also have management resources such as high-value brands and the cutting-edge technology and excellent human resources that support those brands, as well as global marketing power and a superior customer base.

In addition, by taking these aspects of New Fuji Xerox and then utilizing the strengths of the Company such as its wide range of technology and its experience and know-how regarding new business creation, New Fuji Xerox will accelerate business reform not only as an office document business but also as a leading company engaged in a wide range of businesses in fields such as commercial printing centered on inkjet technology as well as various types of industrial printing, and solutions services that improve business process and productivity.

2. Method of the Combination of the two companies

The Combination of the two companies will be conducted through three transactions, and the Company will own 50.1% of the shares issued by Xerox without any cash outflow from the FUJIFILM group.