D I G I T A L & S U S T A I N A B L E T R A N S F O R M A T I O N
Contents
About the Toppan Group
Transition to Holding Company Structure / TOPPAN's Purpose & Values | 2 |
Consolidated Financial and Non-Financial Highlights | 4 |
Segment Highlights | 6 |
Business Domains and Products and Services | 8 |
History of Creating Value | 10 |
Printing Technologies That Produce Diverse Solutions | 12 |
Value Creation Process | 14 |
Strategy and Initiatives for Creating Value
Interview with the President | 16 |
Message from the CFO | 22 |
Overview of New Medium Term Plan (Result Delivery Phase) | 24 |
Special Feature: | 30 |
Growth Strategies by Business in the New Medium Term Plan |
Foundation for Value Creation (ESG Information)
Message from an External Director | 48 |
Directors and Audit & Supervisory Board Members | 50 |
Skill Matrix of Directors and Audit & Supervisory Board Members | 52 |
Corporate Governance | 54 |
Sustainability Management | 66 |
Environmental Conservation | 70 |
Conservation of the Global Environment | |
Climate Change and the TCFD | |
Social Initiatives | 75 |
Diversity and Inclusion | |
Human Rights | |
Health and Safety / Work-Life Balance | |
Supply Chain Management | |
Company & Stock Information | 82 |
Editorial Policy
This Integrated Report was prepared to reflect the opinions of institutional investors and other stakeholders voiced in discussions, and to report comprehensively on the Company's activities and growth strategies, including not only financial information but also ESG (Environmental, Social, and Governance) and other non-financial information. We hope that it will help readers to understand how the Company aims to solve social issues through corporate activities.
For more detailed information on the Company's financial position, please see the securities report (Japanese only).
Note: Names of products and services etc., in this report are trademarks or registered trademarks of the Company, the Group, or each company.
Scope and Boundary
Period covered: April 1, 2022 to March 31, 2023
(Also includes information about certain activities outside of this period)
Entities covered: Toppan Inc. and consolidated subsidiaries
(Also includes information about certain activities of Toppan Inc. on a non-consolidated basis)
Forward-Looking Statements
This report includes certain forward-looking statements. These statements are based
on management's current expectations and are subject to change in certain circumstances. Actual results may differ due to changes in economic, business, competitive, technological, regulatory, and other factors.
Information Disclosure on the Company's Website
Toppan also provides information for investors and information on sustainability on its website. Please utilize this report in conjunction with the website.
Investors
https://www.holdings.toppan.com/en/ir/
Sustainability
https://www.holdings.toppan.com/en/sustainability/
Toppan Integrated Report 2023 | 1 |
TOPPAN's Purpose & Values
Transition to holding company structure
October 2023
TOPPAN transitioned to a holding company system.
Under TOPPAN Holdings Inc., the holding company, we established TOPPAN Inc., TOPPAN Edge Inc., and TOPPAN Digital Inc.
We will strive to strengthen Group governance, further advance business portfolio transformation on a Groupwide basis, and maximize synergies. In this way, we will aim to create new value and realize a sustainable society.
TOPPAN Holdings Inc.
TOPPAN Inc. | TOPPAN Edge Inc. | TOPPAN Digital Inc. | TOPPAN Group |
operating companies | |||
Purpose
Breathing life into culture, with technology and heart.
The TOPPAN Group has newly formulated TOPPAN's Purpose & Values. This Group philosophy comprises our Purpose and the Values that support it.
Going forward, TOPPAN's Purpose & Values will be a shared guide for the Group as we work together to exceed the expectations of society and realize further innovation. Together with stakeholders, we will aim for the realization of a sustainable society and increases in corporate value.
Values
Integrity
Act with sincerity,
build relationships on trust
Passion
Be enthusiastic,
boldly take on challenges
Proactivity
Think ahead,
act with speed
Creativity
Be imaginative, create new value
2 | Toppan Integrated Report 2023 | 3 |
About the Toppan Group | ||||||||||||
Consolidated Financial and Non-Financial Highlights | ||||||||||||
Toppan Inc. and Subsidiaries | ||||||||||||
Operating Results (Fiscal Year Ended March 31, 2023) | Financial Position (March 31, 2023) | |||||||||||
Net sales | Operating profit | Total assets | Net assets | |||||||||
¥1,638.8billion | ¥76.6billion | Down | ¥2,238.8billion | ¥1,452.1billion | ||||||||
Year on year Up 5.5% | Year on year Up 4.3% | Year on year | Year on year Up 1.0% | |||||||||
2.1% | ||||||||||||
Major factors decreasing total assets included a decline of ¥131.9 billion in investment securities.
Major factors decreasing liabilities included declines of ¥41.1 billion in deferred tax liabilities, ¥40.0 billion in current portion of bonds payable, and ¥16.6 billion in income taxes payable.
Major factors increasing net assets included increases of ¥55.8 billion in non-controlling interests and ¥46.8 billion in retained earnings.
Net sales
(billion ¥) | 1,547.5 | 1,638.8 | |||
1,600 | 1,464.8 | 1,486.0 | 1,466.9 | ||
1,200 | |||||
800 | |||||
400 | |||||
0 | 2019 | 2020 | 2021 | 2022 | 2023 |
Operating profit & operating profit to net sales
(billion ¥) | (%) | |||||
80 | 73.5 | 76.6 | 8.0 | |||
66.4 | ||||||
58.8 | ||||||
60 | 6.0 | |||||
45.7 | 4.5 | 4.0 | 4.7 | 4.7 | ||
40 | 4.0 | |||||
3.1 | ||||||
20 | 2.0 | |||||
0 | 2019 | 2020 | 2021 | 2022 | 2023 | 0 |
Operating profit | Operating profit to net sales (right scale) |
Total assets & return on assets
(billion ¥) | (%) | |||||
3,000 | 5.3 | 6.0 | ||||
2,194.2 | 2,143.5 | 2,363.5 | 2,288.2 | 2,238.8 | ||
2,000 | 4.0 | 3.6 | 4.0 | |||
1,000 | 1.9 | 2.7 | 2.0 | |||
0 | 2019 | 2020 | 2021 | 2022 | 2023 | 0 |
Total assets | Return on assets (right scale) |
Net assets & return on equity
(billion ¥) | 1,453.2 | 1,437.2 | 1,452.1 | (%) | ||
1,500 | 10.0 | |||||
1,328.9 | 1,310.2 | 9.2 | ||||
1,200 | 7.4 | 6.5 | 8.0 | |||
900 | 4.5 | 6.0 | ||||
600 | 3.6 | 4.0 | ||||
300 | 2.0 | |||||
0 | 2019 | 2020 | 2021 | 2022 | 2023 | 0 |
Net assets | Return on equity (right scale) |
Cash dividends per share (DPS) | Earnings per share (basic) | ||
Year on year Up ¥2.0 | ¥46.00 Year on year Down 50.6% | ¥185.07 |
The end-of-term dividend was ¥24.00 per share.
Including an interim dividend of ¥22.00 per share, total annual dividends were ¥46.00 per share.
Return on assets (ROA) | Return on equity (ROE) | |||
2.7% | 4.5% | |||
Year on | Down 2.6 | Year on | Down 4.7 | |
year | points | year | points | |
Debt-equity ratio | Interest coverage ratio | |||
Equity ratio
Year on Down 0.5 | 59.2% |
year points |
Cash and cash equivalents at end of period
year | points | 18.0% | year | points | 24.8 | year | Up 8.0% ¥447.6billion |
Year on Down 1.2 | Year on | Up 8.7 | Year on |
Cash dividends per share (DPS)
(¥)
90 | |||||
60 | 60.0 | ||||
40.0 | 40.0 | 44.0 | 46.0 | ||
30 | |||||
0 | 2019 | 2020 | 2021 | 2022 | 2023 |
Earnings per share (basic)
(¥)
400 | 365.21 |
300 | 261.06 |
200 | 237.16 |
185.07
100 127.55
0 | 2019 | 2020 | 2021 | 2022 | 2023 |
ESG Data
External directors on Board of | Female management and | Employment of persons with | ||||||||||||
Directors | supervisory staff | disabilities | ||||||||||||
(As of July 2023) | (As of April 2023) | (As of June 2023) | ||||||||||||
3 of 9 | 33.3% | Year on | Up 89 | 761 | Year on | Up 17 | 357 | |||||||
year | year | |||||||||||||
Consolidated number of | GHG emissions (Scope 1+2) | GHG emissions (Scope 3) | ||||||||||||
employees | ||||||||||||||
(As of March 31, 2023) | (As of March 31, 2023) | (As of March 31, 2023) | ||||||||||||
Year on | Down 390 | 53,946 | Year on | Down | 1,115thousand t | Year on | Up 1.6 5,929thousand tons | |||||||
year | year | 6.1% | year |
4 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 5 |
Segment Highlights
About the Toppan Group
* The breakdown for each segment is based on the segment components for the | |
Review of Operations by Business Segment | fiscal year ended March 31, 2023. |
Information & Communication
FY2023.3 |
Living & Industry |
FY2023.3 |
Electronics |
FY2023.3 |
Information & Communication
Net sales | |
Down | ¥887.5 billion |
1.8% | |
Operating profit | |
Down | ¥42.8 billion |
16.3% |
Net sales | |
Up | ¥520.6 billion |
17.2% | |
Operating profit | |
Down | ¥23.5 billion |
17.6% |
Net sales | |
Up | ¥255.3 billion |
15.3% | |
Operating profit | |
Up | ¥48.2 billion |
60.6% |
The Information & Communication segment recorded a 1.8% year-on-year decrease in net sales, to ¥887.5 billion, and operating profit was down 16.3% year-on-year, to ¥42.8 billion.
Security
In the security business, results improved year-on-year, mainly due to growth in smart cards, despite a decline in business forms accompanying the digitization of forms.
Content & Marketing
In the content and marketing business, results improved year-on-year. Declines in paper media and sales promotion materials were offset by growth in game/trading cards, e-book related services provided by BookLive Co., Ltd., and online advertising and other digital marketing solutions.
Business Process Outsourcing (BPO)
In the BPO business, the Group
sought to expand sales of a hybrid-BPO service combining digital technologies with operations. Nonetheless, sales declined after the Group posted sales from large projects in the previous fiscal year.
DX (Erhoeht-XTM) Initiative
As part of the Erhoeht-XTM DX initiative, with a view to strengthening the oper ational structure for digital marketing, the Group established the Sapporo Engagement Center and formed a capital and business alliance with FUSION Co., Ltd., which has extensive know-how in the CRM domain. Moreover, the Group helps businesses and other organizations improve their operational efficiency through initiatives such as enhancing the functions of EngagePlus, a message delivery service provided by Toppan Forms Co., Ltd. (now TOPPAN Edge Inc.).
Sales to external customers & operating profit by segment
Living & Industry
Information & Communication | Living & Industry |
(billion ¥) | (billion ¥) | (billion ¥) | 512.6 | (billion ¥) | ||||||
1,000 | 890.8 | 871.5 | 100 | 500 | 436.1 | 50 | ||||
865.7 | 418.1 | |||||||||
800 | 80 | 400 | 40 | |||||||
600 | 51.1 | 51.2 | 60 | 300 | 27.6 | 28.5 | 30 | |||
42.8 | 23.5 | |||||||||
20 | ||||||||||
400 | 40 | 200 | ||||||||
200 | 20 | 100 | 10 | |||||||
0 | 2021 | 2022 | 2023 | 0 | 0 | 2021 | 2022 | 2023 | 0 | |
Sales to external customers | Sales to external customers | |||||||||
Operating profit (right scale) | Operating profit (right | scale) |
Electronics | ||||
(billion ¥) | 48.2 | (billion ¥) | ||
500 | 50 | |||
400 | 40 | |||
300 | 30.0 | 30 | ||
254.6 | ||||
220.5 | ||||
200 | 183.0 | 20 | ||
100 | 11.9 | 10 | ||
0 | 2021 | 2022 | 2023 | 0 |
Sales to external customers
Operating profit (right scale)
The Living & Industry segment posted a 17.2% year-on-year increase in net sales, to ¥520.6 billion, and operating profit was down 17.6% year-on-year, to ¥23.5 billion.
Packaging
In the packaging business in Japan, results rose year-on-year due to an increase in demand, particularly for food packaging, and the expansion of sustainable packaging materials. Overseas sales increased, particularly in Indonesia, and contributions to sales were made by InterFlex, a US-based flexible packaging producer that the Company acquired in the previous fiscal year, and by Majend Makcs, a flexible packaging producer in Thailand that the Company acquired in May. Both in Japan and overseas, price revisions were made in response to rising raw materials and energy prices.
Décor Materials
In the décor materials business, sales in Japan rose year-on-year due to growth in sales of decorative surface materials with high-quality design and
advanced functionality. Overseas, demand was weak due to rapid inflation in Europe and rising mortgage rates in North America. Nonetheless, sales were up year-on-year due to growth in sales of decorative surface materials for furniture and other interior applications, price revisions, and foreign exchange effects.
Functional Products
Sales of functional products increased with the contribution of Toppan Speciality Films (formerly Max Speciality Films), a leading Indian film manufacturer that the Company made into a consolidated subsidiary in the previous fiscal year.
SX Initiatives
In its SX initiatives, the Company used GL BARRIER transparent films with world-class barrier performance in order to advance the development of envi ronmentally friendly packaging materials, such as recyclable mono-material packaging materials and retortable pouches made of paper, which contribute to reducing plastic consumption and CO2 emissions.
Capital investment by segment
Capital investment
Electronics
Electronics
28.9%
Adjustment | Information & | ||
11.8% | Communication | ||
28.7% | |||
FY2023.3 |
¥92.1billion |
(billion ¥) | |||
100 | 92.1 | ||
80 | 10.9 | ||
60 | 60.9 | 58.2 | 26.6 |
6.1 | 6.7 | ||
40 | 13.9 | 9.5 | 28.2 |
16.3 | 18.0 | ||
20 | 24.0 | 26.4 | |
24.5 | |||
0 | 2021 | 2022 | 2023 |
The Electronics segment recorded a year-on-year increase of 15.3% in net sales, to ¥255.3 billion, and operating profit was up 60.6% year-on-year, to ¥48.2 billion.
Semiconductors
In the semiconductor business, sales of photomasks rose due to firm demand for semiconductors used for 5G, AI, and automobiles. In the business for FC-BGA substrates, which are high-density semiconductor package substrates, high-value-added large and multilayer products sold well, particularly for data centers and servers, due to their industry-leading quality and technology.
Displays
Sales of display-related products declined year-on-year, reflecting a fall in sales of anti-reflection films due to a decline in film demand for televisions
New Business
With a view to creating new business, the Company implemented initiatives in preparation for the widespread adoption of IoT devices. These included developing e-PlatchTM, a system that takes advantage of the next-generationlow-powerwide-area (LPWA) ZETA protocol to improve the efficiency of the remote monitoring of environmental data and equipment maintenance operations at manufacturing plants and facilities, and achieving internationally recognized ISO/IEC 27017 cloud security certification. In addition, the Company was also the first in the world to develop a next-generation time- of-flight sensor capable of measuring distances of up to 30 meters, in anticipation of the widespread use of autonomous mobile robots in industry.
Living & Industry
30.6%
Information & Communication Living & Industry
Electronics
Adjustment
and a decrease in sales of color filters due to the implementation of structural reforms.
6 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 7 |
About the Toppan Group
Business Domains and Products and Services
Toppan operates in three business domains: Information & Communication, Living & Industry, and Electronics. Drawing on its strengths in original printing technologies, Toppan pursues each of these businesses, providing comprehensive solutions to challenges faced by customers and society.
Information & Communication | * The breakdown for each segment is based on the segment components for the |
fiscal year ended March 31, 2023. | |
Providing customers who require smooth communication with solutions that enhance the value of information and deliver it effectively
Security
Securities documents
Business forms
Data printing services (DPS)
Smart cards, various types of other cards, and in-store instant smart card issuing services
Gift card ASP services
RFID tags and RFID solutions
Anti-counterfeit devices Payment services
Content & Marketing
Books, magazines, and supplements
Textbooks
E-books
Flyers, catalogs, and pamphlets
Promotional tools (POP materials, various gift items, premiums)
Spatial design, event planning and implementation
Digital content
Digital marketing services
BPO
Back-office operation services
Customer contact operations (campaign offices, direct mail, contact centers, etc.)
Operation support
Living & Industry
Providing a wide range of products and services throughout the world to create living environments that offer comfort and peace of mind
Packaging
Flexible packaging
Folding cartons
Composite liquid containers
Plastic molded goods
Contract-based filling services
Décor Materials
Decorative sheets
Flooring materials
Decorative panels
Exterior products and materials
Flame retardant products and materials
Functional Products & Energy
Transparent barrier film
Media and supplies for printers
Electronics packaging materials
Lithium-ionbattery-related materials
Precision processed and exterior decorated components
Electronics
Providing display-related and semiconductor-related products based on microfabrication technology
Semiconductors
Photomasks
LSI design services
FC-BGA substrates
Lead frames
Etched products
On-chip color filter arrays
Displays
Color filters
Anti-reflection films
Small and medium-sizedTFT-LCD panels
Metal masks for OLEDs
Copper touch sensors
Light control film
8 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 9 |
History of Creating Value
Toppan was founded in 1900 with a view to taking advantage of the Erhöht relief printing method, a leading-edge technology of the day. Since then, the Toppan Group has continually addressed society's needs and developed its business operations by extending the applications of printing into a broad range of fields. Going forward, Toppan will continue rapidly identifying changes in society's needs, and we will aim to achieve sustained growth as a creator of social value in order to help resolve those needs around the world.
About the Toppan Group
2020
Advancing the DX Business
1900 | 1950 |
Printing-related trends and demand | |
Printing products becoming important means of | Circulations and mass |
relaying various information | production increasing |
Toppan's History
Production efficiency increasing through IT Catering to need for diversified, small-lot manufacturing
2000
Increasing demand for various printing products
2015 | 2016 | |||
Began full-scale operations at | ||||
BPO Square Asaka | Becoming | |||
Decreasing demand for paper media | 2019 | Expanding DX services | ||
Advancing digital transformation | Commenced provision of | |||
NAVINECT® digital transfor- | ||||
mation support solutions for | 2021 | |||
manufacturing | ||||
Commenced provision of | ||||
多彩なIoTソリューションをつなぎ、付加価値の最大化へと導きます。 | ||||
見える化 | 製造情報管理 | Hybrid-BPO™ for local | ||
製造監視 | ヒト作業効率化 | |||
Business establishment / printing expansion
While Japan was in the process of industrial- izing, a number of companies that used new technologies to address new needs were established. Building on the Erhöht relief printing method, which was a leading-edge technology at the time, Toppan's founders identified business opportunities in such fields as securities printing and package printing.
Founded 1900
Toppan Printing Limited
Partnership launched
Erhöht relief printing copperplate
1900
Folding cartons
1901
Commercial printing
1902
Securities printing
1907
Publication printing
1938
Flexible packaging
Diversifying, growing into
an integrated printing company
1986 | |||
Completion of Toppan | |||
Technical Research Institute | |||
Information & Communication | |||
1955 | 1970 | ||
Business forms | Computerized typesetting | ||
system developed and | |||
implemented | |||
Planning and design | |||
division launched | |||
1983 | |||
1961 | |||
IC chip card developed | |||
Service Center established | |||
(now the Toppan Idea | |||
Center) | |||
Living & Industry | |||
1956 | 1976 | ||
Décor materials | EP-PAK multilayer lami- | ||
nate paper container for | |||
liquids developed |
1986
GL FILM transparent barrier film developed
Electronics
Advanced into | 1959 |
Masks for mesa transistor | |
electronics business | manufacturing developed |
Sustainability
Use of the internet, expansion of digital content business
1999
Started Bitway digital content distribution business
Environmentally friendly
products developed
1996
Started sales of Cartocan® paper beverage containers
1971
Color stripe filter for image pick-up tubes developed
1991 | 1992 |
Ecology Center | Toppan Printing Declaration |
established | on the Global Environment |
established |
装置自動化 | 帳票 | authorities | ||||||||
Expanding the digital business | デジタル管理 | |||||||||
品質保証 | 在庫管理 | |||||||||
(QR/RFID) | 2021 | |||||||||
輸送ナビゲーション | トレーサビリティ | |||||||||
2000 | 2020 | Acquired Face Technologies (Pty) | ||||||||
Ltd., a systems integrator based | a | |||||||||
Formulated TOPPAN VISION 21 | Established the DX Design | in South Africa | ||||||||
Division | ||||||||||
Social | ||||||||||
2022 | ||||||||||
2001 | 2011 | Accelerating global | Developed MiraVerse®, a meta- | |||||||
development | verse service platform | |||||||||
Digital advertising | Integrated e-bookstore | |||||||||
flyer website Shufoo! | BookLive! opened | 2016 | 2023 | |||||||
launched | Established TOPPAN Edge Inc., | |||||||||
Completed construction of | TOPPAN Digital Inc. | |||||||||
the Toppan USA Georgia | ||||||||||
- | ||||||||||
Plant, a production base for | ||||||||||
2013 | DX | Value | ||||||||
transparent barrier films | ||||||||||
Toppan Group Data | ||||||||||
Center launched | 2017 | |||||||||
Strengthened flexible | ||||||||||
packaging | Creating new | |||||||||
business in ASEAN region | ||||||||||
businesses | - | |||||||||
Creating | ||||||||||
2019 | ||||||||||
Acquired Interprint GmbH, | ||||||||||
a European décor printing | SX | |||||||||
company | ||||||||||
Strengthened functional films | ||||||||||
and packaging business | Expanding global supply | |||||||||
2009 | 2014 | network for mono-materials | ||||||||
Completed construction | Completed construction of | |||||||||
of the Fukaya Plant, a | the Gunma Central Plant, a | 2021 | Corporate | |||||||
production base for next- | production base for flexible | Creating new markets | Acquired InterFlex Group, | |||||||
generation functional films packaging materials | a U.S.-based packaging | |||||||||
and businesses | ||||||||||
manufacturer | ||||||||||
2019 | 2022 | |||||||||
Made Max Speciality Films | ||||||||||
Developed mono-material | ||||||||||
barrier packaging | Limited, an India-based | |||||||||
film manufacturer, a consoli- | ||||||||||
dated subsidiary | ||||||||||
2004 | 2005 | 2023 | ||||||||
Commenced | Toppan Photomasks, Inc. | |||||||||
manufacture of | established | In the Czech Republic, | Group | |||||||
large color filters | 2019 | established | a transparent barrier | |||||||
film production base scheduled | ||||||||||
Started mass production of | ||||||||||
LPWA ZETA communica- | to start operation at the end of | |||||||||
tions modules | 2024 | |||||||||
2006 | 2009 | 2015 | 2019 | 2019 | 2021 | 2021 | 2022 | |||
Joined the United | The Toppan Group | Health Manage | Announced | Formulated | Formulated Toppan | Formulated the | Formulated the Toppan | |||
Nations Global | Declaration on the Global | ment Declaration | support for the | TOPPAN SDGs | Group Environmental | Toppan Group | Group Sustainable | |||
Compact | Environment established | established | TCFD | STATEMENT | Vision 2050 | Human Rights Policy | Procurement Guidelines |
10 Toppan Integrated Report 2023
Toppan Integrated Report 2023 | 11 |
About the Toppan Group
Printing Technologies That Produce Diverse Solutions
During our long history, printing skills-our starting point-became printing techniques. By further evolving these techniques through integration with diverse expertise and processing technologies, we have made printing technologies a proprietary resource.
- Each of our five core technologies, information processing, microfabrication, surface treatment, material forming,and marketing solutions,has its own unique characteristics. Moreover, when they are combined in a multi-faceted manner they also have the power to produce diverse solutions.
On a foundation of printing technologies, Toppan will continue to address client perspectives (market needs) and social perspectives (social issues). We will strive to create new forward-looking solutions while taking steps to strengthen our technologies, such as engaging in co-creation initiatives with other companies and leveraging Group synergies.
Co-creation with businesses / New technologies
(Open innovation with universities and businesses and capital tie-ups with venture companies)
Printing Technologies
Diverse solutions made possible by
printing technologies
Toward the provision
of new solutions
Marketing
IT
Creative Design
Toppan's
Foundation
Printing | Printing | Integration | |||||
Skills | Techniques | & Evolution | |||||
Processing
Technologies
Five Core Technologies
Marketing Solutions
Research and analysis capabilities / Strategy preparation and coordination capabilities / Product and service development capabilities / Creative capabilities (graphics, video, spaces, CG) / IT utilization capabilities (design, development, operational support) / Back office coordination capabilities / Comprehensive solutions capabilities
Information Processing
Computerized typesetting / Color management technologies / Digital content technologies / High-definition image digitization technologies / Expression technologies / Information security technologies / System construction and operation technologies / Data management technologies / Communication network technologies
Microfabrication
Etching technologies / Photolithography technologies / Plating technologies / Photopolymer technologies / Optical design technologies / Testing and correction technologies /
Clean production environment technologies
Surface Treatment
Precision coating technologies / Lamination technologies / Drying technologies / Material design and evaluation technologies
- Coating technologies / Composite material and multilayer technologies / Vacuum deposition technologies
Material Forming
Surface decoration technologies / Vacuum deposition technologies / Resin molding technologies / Thin-film formation technologies / Structural design technologies / Filling and packaging technologies / Environmental technologies
Posters
Securities
Sugar processing filters
Cigarette packaging
Paper boxes
In-store advertising Marketing
Digital flyer services Clinical art
Books/magazines
Magnetic/smart card manufacturing
Catalogs
VR/AR/MR
Photomasks Color filters
Metal masks for OLEDs Lead frames Holograms
GL BARRIER Eco-friendly packaging Décor materials
Lithium-ion battery packaging materials
Liquid containers Plastic bottles Composite containers
Digital marketing BPO solutions Payment solutions 4K and 8K video Regional revitalization
E-books
ID/RFID management
Digital archiving of cultural treasures
Touch sensors FC-BGA substrates TFT-LCD panels
CartocanTM Information recording materials
Anti-reflection films
Plastic molded goods Refill containers SNP chips (genetic analysis)
Client perspectives (market needs) and social perspectives (social issues)
DX
Digital twins Metaverse/Avatars Information banks (VRM) Super cities/Smart cities Educational ICT Hybrid BPO
Digital Content
Marketing DX Global security Manufacturing/Distribution DX
SX
Material/chemical recycling LCA solutions Sustainable packaging Energy management Energy-related components
Healthcare
Health big data
Biotech
Medical services
Devices / Products
Anti-counterfeit devices Next-generation photomasks
Next-generation semiconductor packaging substrates
Light control films Functional sensors
Next-generation communication networks
Products that combine IoT technology with décor materials
Other
AI
Quantum computing
Becoming a Social-Value-Creating Corporate Group
Strengthening of core technologies / Maximization of Group synergies
(Materials development, device development, digital technology development, etc.)
12 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 13 |
Value Creation Process
About the Toppan Group
Business Environment
Acceleration of digital shift, worldwide increase in environmental consciousness
Global market expansion, geopolitical risk
Management Capital
(Input)
As of March 31, 2023
Financial capital (consolidated)
Growth investment
Cumulative plan for FY2022.3 to FY2024.3.
Approx. ¥274.0 billion
Share capital
¥104.9 billion
Total assets
¥2,238.8 billion
Human capital (consolidated)
Number of employees
53,946
PURPOSE
Breathing life into culture, with technology and heart.
Social issue resolution
Customer network developed since our
founding
Combination
Technological
capabilities
DX
Solutions
Demonstration
Major Products, Services, Etc.
(Output)
Erhoeht-X
Hybrid-BPO
Security business
Marketing DX
Digital content
Manufacturing/Distribution DX
SX
Packaging in Japan (flexible packaging materials)
Overseas packaging Overseas décor materials
Frontier businesses
Digital & Sustainable Transformation
Becoming a leading provider of solutions to social issues
worldwide through DX and SX
Value Created/Provided
(Outcome)
Maximize enterprise value
Social value
Environment
Creating a circular economy
Decarbonizing
Preserving biodiversity
Reducing water shortages
Communities
Increasing people skilled in DX
4,000 people Groupwide
Manufacturing capital
Main manufacturing bases
Domestic: Approx. 80 bases
SX Frontier
of Group synergies
Healthcare
Metaverse
Sensors
Financial and non-financial
quantitative data
Enhancing quality of life for communities
Creating a safe society Contributing to culture
People
Overseas: Approx. 70 bases
Capital investment
¥92.1 billion
Intellectual capital
Number of patents held
5,430 | |
Research and development | |
expenditure | ¥26.5 billion |
Transforming the business portfolio
Creating products and
services
Living & Industry | Electronics | ||
Planning, design, | Information & | Communication | Identifying issues |
development | and needs |
Results
Net sales:
¥1,638.8 billion
Operating profit:
¥76.6 billion
ROE:
4.5%
Consolidated dividend payout ratio:
24.9% |
CO2 emissions: |
Reducing food loss
Creating educational environments Contributing to health through digital technologies
Economic value
Financial targets
Social capital
Client base of approximately
Scope 1+2 | 1,115kt |
Scope 3 | 5,929kt |
Net sales:
¥1,810.0 billion
20,000 companies Strong relationships with
Materiality
Final landfill waste disposal: 7,794t
Operating profit:
¥110.0 billion
stakeholders
Natural capital
Business Materiality Companywide Materiality
Foundation for Value Creation
Percentage of female managers:
(All Group entities consolidated for accounting purposes,
ROE:
5.0%
Total energy consumption
20.885 TJ
Human assets Technologies Sustainability management Corporate governance
including overseas) | 12.2% |
Engagement score:
70.6
Total payout ratio:
30%
Total material input
1,742 thousand tons
Values
Integrity Passion Proactivity Creativity
points
(During period of new Medium Term Plan: approximately 50%) (Fiscal year ending March 31, 2026)
14 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 15 |
Interview with the President
We will pass on the DNA that has
Strategy and Initiatives for Creating Value
- What is your view of the Group's results in the fiscal year ended March 31, 2023, which was the final year of the previous medium-term plan?
The economic environment included rising prices for raw materials and fuel, and inflation A around the world. In this setting, we were able to bolster our foundation with a focus on
the future while recording growth in net sales and operating profit.
existed since our founding to the new TOPPAN and work to increase the presence of the Group in Japan and around the world.
In addition to the lengthening of the Ukraine situation and rising prices for raw materials and fuel, we continued to face an uncertain outlook, including global inflation. I think that we turned in a solid performance in this environment by achieving higher sales and profits, with gains in both net sales and operating profit.
In the Information & Communication segment, we have nurtured BPO as one of our business pillars. In BPO, certain special factors that existed up until the previous fiscal year, such as economic stimulus packages, have ended. However, we are advancing a shift toward continuous BPO projects that are not temporary. In addition, we have launched new businesses, such as metaverse initiatives based on our track record of a quarter century with TOPPAN VR, and they have already started to make a contribution to earnings.
In the Living & Industry segment, packaging was affected by higher costs for raw materials, and we could not avoid a decline in profits. On the other hand, in front-line sales we were resolute in price negotiations, and as a result the rate of price pass-through reached nearly 90% by the end of the fiscal year. In this way, we not only completed our short-term countermeasures but also put into motion a positive cycle regarding proper pricing, which had been a pending problem for many years.
In the Electronics segment, following a series of restructuring initiatives, volatility has been minimized and we have started to develop the ability to secure profits in a manner that is less susceptible to market conditions. In the year ended March 2023, the yen depreciated, and the semiconductor business recorded favorable results. This segment is making a significant contribution to Companywide profits. In particular, growth in FC-BGA substrates will be an important part of the reinforcement of our foundation as we focus on the adoption of next-generation communications and growth in demand for high-speed servers.
Through these types of initiatives, the probability of realizing our plan has increased, and in recent years operating profit has been steady at about ¥70.0 billion. In addition, we are recording steady growth in both net sales and operating profit. For example, in the fiscal year ended March 31, 2022, we achieved, one year ahead of schedule, the management targets in the previous medium-term plan (foundation building phase). In addition to this result, under the new medium-term plan that started in April 2023 (result delivery phase; hereinaf- ter, the current medium-term plan), we will strengthen our technological advantages through further growth investment and work to link this to the delivery of specific results.
- Under the new medium-term plan, what types of initiatives will the Company implement for business portfolio transformation?
We will work to significantly raise profitability, centered on two strategies.
A We will strive to increase profitability in DX and SX through combinations of internal resources, and we will expand the scale of new businesses (the frontier).
Hideharu Maro
Representative Director
President & CEO
Business Portfolio Transformation
Electronics | Erhoeht-X | |
Priority | 15% | |
13% | ||
businesses Growth | SX in | |
Living & | 6% businesses | Japan / |
Industry | 27% | Overseas |
18% | Operating | Living & |
profit | Industry | |
¥58.7 billion | 12% | |
Existing | ||
Information & | businesses | |
67% | ||
Communication | ||
42% | ||
FY2020 |
Looking at business portfolio transformation initiatives under the previous medium-term plan, in addition to the restructuring of existing businesses, we also reinforced and reorganized management resources. For example, in March 2022 we made listed subsidiary Toppan Forms a wholly owned subsidiary.
In comparison with the fiscal year ended March 31, 2021, in
Electronics | Erhoeht-X | ||
Priority | 12% | ||
43% | SX in | ||
businesses Growth | Japan / | ||
13% businesses | |||
Overseas | |||
19% | |||
Living & | |||
Operating | |||
Industry | |||
profit | 7% | ||
¥76.6 billion | |||
Existing | Information & | ||
businesses | Communication | ||
68% | 25% | ||
Living & | * Percentages in pie charts are calculated | ||
Industry | |||
FY2022 | using operating profit before deduction of | ||
13% | |||
adjustments as the denominator. | |||
the fiscal year ended March 31, 2023, the overall scale of operating profit increased. However, looking at the composition of operating profit, there was a decline in the share of growth businesses, such as DX (Erhoeht-X), domestic SX, and overseas Living & Industry. This was attributable to clear fac- tors, such as upfront investment to bolster the DX foundation,
16 | Toppan Integrated Report 2023 | Toppan Integrated Report 2023 | 17 |
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Toppan Inc. published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 06:32:16 UTC.