As of May 13, 2019

Information and Communication

In the security business, performance of IC cards was strong, but overall performance declined from the previous year as general securities decreased. Meanwhile, the Company strengthened initiatives that cater to the digitalization of society, such as a business alliance with an electronic authentication service provider to develop an online housing loan service that enables individuals to conclude contracts using mobile devices such as smartphones.

In the business form related business, business forms decreased from the previous year as a result of a decline in demand volume associated with digitalization and other factors, while BPO (Business Process Outsourcing) decreased significantly from the previous year due to downsizing of large projects and other factors. Data Print Service increased from the previous year due to strong performance in contracts for administrative notices and direct mails mainly for financial institutions, despite the impact of a drop in volume and unit prices for some customers.

In the marketing business, POP decreased due to reductions in corporate sales promotion expenses and the impact of the shift to digital information media, but BPO increased by incorporating the needs for greater business efficiency. Meanwhile, the Company strengthened its efforts in the digital domain, including expanding sales of a service that offers total support covering digital marketing for CRM (Customer Relationship Management), from consulting to development and operation, primarily in the distribution industry. In addition, the general commercial printing business increased owing to the acquisition of part of the business of a U.S.-based general financial printing company. With regard to an initiative for regional revitalization and establishment of Japan as a tourism destination, the Company opened the “NIPPON GALLERY TABIDO MARUNOUCHI” as a collaborative base for public offices and local governments, tourism-related organizations and corporations. Based on the accomplishments and know-how cultivated in the creation of digital archives and contents for cultural heritage, the Company was consigned tourism-related businesses that involves promotion, and provided other services supporting regional revitalization and tourism promotion initiatives.

In the content business, magazines among other products declined from the previous year amid continued stagnation in the publications market. Meanwhile, in the continually expanding e-book market, BookLive Co., Ltd. reinforced its business base by placing advertisements in order to enhance brand recognition even further.

As a result, net sales for the Information & Communication segment increased by 0.7% from the previous year to ¥875.1 billion and operating profit decreased by 2.9% to ¥43.6 billion.

Living & Industry

In the packaging business, sales increased for flexible packaging materials from the previous year not only due to the impact of acquiring an Indonesia-based company in the ASEAN region, where demand is rising for packaging with outstanding performance, but also due to the increase in high value added packaging materials for medical care and medicine using the sophisticated quality control system and clean production environment at the Gunma Center Plant. Meanwhile, sales for paper containers such as those for beverages declined from the previous year. As greenhouse gas emissions and marine plastic pollution aggravate the global environment, demand is rising for packaging that reduces ecological footprint. The Company developed paper packaging that can replace plastic bottles with high water resistance for use in kitchens and bathrooms, as an effort to develop environmentally-friendly products. Despite the impact of soaring material prices, the Company strengthened the revenue structure by implementing cost reductions and structural reforms.

In the interior décor materials business, sales increased from the previous year mainly owing to a higher domestic market share in decorative paper/film, and the effect of integrating Decotec Printing S.A., a manufacturing base in Europe (Spain). Meanwhile, the Company developed wall material “Infowall,” a display-cum-decorative paper/film material that can receive and display information on family and community to expand its lineup of “Toppan IoT Building Materials,” which combines Toppan’s traditional interior décor materials with IoT.

As a result, net sales for the Living & Industry segment increased by 1.5% from the previous year to ¥414.6 billion and operating profit decreased by 19.4% to ¥18.7 billion.

Electronics

In relation to displays, sales of color filters decreased from the previous year, as sales of small- to medium-sized color filters mainly for smartphones decreased. Sales of anti-reflection films remained strong as a result of incorporating high value added products for TVs and monitors. Sales of TFT LCDs declined from the previous year mainly for consumer products, but the Company carried out restructuring of the business of its Taiwan subsidiary in order to build a stable business foundation.

In the semiconductor business, sales of photomasks were robust due to capturing demand for cutting-edge products as the semiconductor market expanded in respond to rising demand for AI and IoT. FC-BGA substrate, which is a high-density semiconductor package substrate, increased from the previous year as a result of actively capturing demand for high end products primarily for overseas.

As a result, net sales for the Electronics segment decreased by 1.6% from the previous year to ¥195.3 billion and operating profit decreased by 6.4% to ¥13.8 billion.

Overview of performance by business segment