Information and Communication
In the security business, performance of IC cards and cashless payment-related services remained strong and increased from the previous year. The Company launched a new region-specific cashless payment service that supports the shift to cashless transactions in local communities. The service enables local governments and shopping areas to digitize and centrally and comprehensively manage their own local electronic money, points, premium coupons for goods, and so on.
In the business form related business, business forms were on par with the previous year as a result of a decline in demand volume associated with digitalization and other factors, despite a growing demand associated with a change of Japanese era name. Data Print Service increased from the previous year due to strong performance in contracts for administrative notices and direct mails mainly for financial institutions.
In the content and marketing business, although publications and printing declined from the previous year, SP related tools remained robust. The commercial printing business expanded significantly, owing to the effect of the acquisition of part of the business of a U.S.-based general financial printing company in the previous year, and the overall performance increased from the previous year. Meanwhile, the Company strengthened its efforts in the digital domain, including expanding sales of a service that offers comprehensive support covering digital marketing for CRM (Customer Relationship Management), primarily in the distribution industry. With regard to initiatives for regional revitalization and establishment of Japan as a tourism destination, the Company engaged in regional activation and support for tourism promotion using cultural heritage, including creation of a cultural properties archive and production of virtual reality (VR) content through the use of digital technology. In the continually expanding e-book market, BookLive Co., Ltd. focused on expanding its customer base by placing advertisements, including airing new TV commercials, in order to enhance brand recognition, and working to strengthen marketing measures through data analysis.
In the BPO business, the volume of direct mail shipping and number of contact centers increased amid rising demand for outsourcing operations by companies and other organizations. However, performance decreased from the previous year due to downsizing of large projects by some customers of the Company’s subsidiaries, among other factors.
As a result, net sales for the Information & Communication segment increased by 5.3% from the same period of the previous year to ¥205.5 billion and operating profit increased by 5.9% to ¥4.2 billion.
Living & Industry
In the packaging business, sales performed well and increased for flexible packaging materials from the previous year, reflecting expansion of orders received mainly for food and toiletries in addition to utilization of local production systems in ASEAN and North America. However, sales for paper containers decreased. As the issues of plastic waste gain more attention and the demand increases for environmentally-friendly packaging materials, the Company developed all-PET (polyethylene terephthalate) flexible packaging materials using “GL Barrier,” and realized a package that is excellent in barrier performance and more readily recyclable.
In the interior décor materials business, sales in Japan were robust owing to a larger market share as a result of expansion in the Smart NANO series and capturing demand related to the Tokyo 2020 Olympic and Paralympic Games. Although sales in Europe and the U.S. were sluggish due to market stagnation, the Company will further strengthen its local production for local consumption systems overseas and promote expansion of the interior décor materials business on a global basis.
As a result, net sales for the Living & Industry segment decreased by 0.5% from the same period of the previous year to ¥100.6 billion and operating profit increased by 24.6% to ¥5.4 billion.
In the semiconductor business, sales of photomasks decreased from the previous year amid worsening conditions in the semiconductor market. Meanwhile, FC-BGA substrate, which is a high-density semiconductor package substrate, was robust due to capturing demand for high value added products.
In relation to displays, sales of color filters decreased from the previous year due to sluggish demand mainly for products for smartphones. Sales of anti-reflection films increased as a result of focusing on products with high unit prices. Sales of TFT LCDs declined mainly for consumer products.
As a result, net sales for the Electronics segment decreased by 8.1% from the same period of the previous year to ¥42.6 billion and operating profit decreased by 29.7% to ¥1.8 billion.