As of August 9, 2019

Qualitative Information on Consolidated Operating Results

The Japanese economy during the three months ended June 30, 2019, followed a moderate recovery trend as corporate earnings were solid and employment continued to improve. Meanwhile, there remained a sense of uncertainty about the economic outlook amid uncertainty in overseas economies including the intensified trade friction between the U.S. and China and the slowdown in the Chinese economy, in addition to concern about the impact of fluctuations in financial and capital markets.

In the printing industry, the operating environment remained tough, reflecting declining demand for paper media owing to the impact of the shift to digital information media associated with the increased use of IT, the rising price of raw materials, and falling unit prices caused by intensified competition. In addition, corporations are expected to take an active part in achieving the Sustainable Development Goals (SDGs) adopted at the General Assembly of the United Nations in 2015.

Amid this environment, Toppan Printing Co., Ltd. (the “Company”) and its group companies (collectively, the “Group”) identified Healthcare & Life Sciences, Education & Cultural Exchange, Urban Space & Mobility, and Energy & Food Resources as four business fields for growth for TOPPAN VISION 21, which sets out Toppan’s Corporate Structure and Business Fields for the 21st century. Guided by the concept of “Designing Infinite Possibilities – Discover the Value of the Future. Make it Real with Planning and Creativity,” the Group strives to expand its business by offering total solutions through enhanced Group collaboration and combinations of technologies and knowhow. In order to establish new revenue models at an early stage, the Group will work to proactively put management resources into new businesses. Meanwhile, in existing businesses, the Group will work to enhance competitiveness by strengthening the technology development and reducing costs.

As a result, for the three months ended June 30, 2019, net sales increased by 1.9% from the same period of the previous year to ¥344.3 billion. Further, operating profit increased by 23.9% to ¥3.7 billion, ordinary profit decreased by 18.8% to ¥4.8 billion, and profit attributable to owners of parent was ¥2.9 billion, an 84.6% increase.

Overview of consolidated performance in the current quarter