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 & V
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.
2 Toppan Integrated Report 2023
Values
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
3
Consolidated Financial and Non-Financi
Toppan Inc. and Subsidiaries
Operating Results (Fiscal Year Ended March 31, 2023)
Net sales | Operating profit | |||||
¥1,638.8billion | ¥76.6billion | |||||
Year on year Up 5.5% | Year on year Up 4.3% |
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) |
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.
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 |
4 Toppan Integrated Report 2023
About the Toppan Group
al Highlights
Financial Position (March 31, 2023)
Total assetsNet assets
Down | ¥2,238.8billion | ¥1,452.1billion | |
Year on year | 2.1% | Year on year Up 1.0% | |
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.
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) | |
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 |
ESG Data
External directors on Board of Directors
3 of 9
Female management and | Employment of persons with | |||||
supervisory staff | disabilities | |||||
(As of April 2023) | (As of June 2023) | |||||
year | 761 | year | 357 | |||
Year on | Up 89 | Year on | Up 17 | |||
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 | Down 390 | 53,946 | year | 6.1% | 1,115thousand t | year | Up 1.6 5,929thousand tons | |||
Year on | Year on | Down | Year on |
Toppan Integrated Report 2023 | 5 |
Segment Highlights
Information & Communication
FY2023.3 | |
Net sales | ¥887.5 billion |
1.8% | |
Down | |
Operating profit | |
Down | ¥42.8 billion |
16.3% |
Living & Industry | ||
FY2023.3 | ||
Net sales | ||
Up | ¥520.6 billion | |
17.2% | ||
Operating profit | ||
Down | ¥23.5 billion | |
17.6% | ||
Electronics | |
FY2023.3 | |
Net sales | |
Up | ¥255.3 billion |
15.3% | |
Operating profit | |
Up | ¥48.2 billion |
60.6% |
Sales to external customers & operating profit by segment
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)
Capital investment by segment
Capital investment
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 |
Living & Industry
30.6%
Information & Communication Living & Industry
Electronics
Adjustment
6 Toppan Integrated Report 2023
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
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.).
Living & Industry
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.
Electronics
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 and a decrease in sales of color filters due to the implementation
of structural reforms.
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.
Toppan Integrated Report 2023 | 7 |
Business Domains and Products and Se
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
8 Toppan Integrated Report 2023
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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 08:22:13 UTC.