Creating new value and strengthening profitability
in a changing macro environment

Shingo Kaneko
President & Representative Director

Thank you very much to our shareholders for their ongoing support of Toppan.

The Toppan Group has closed its accounts for the 172nd fiscal term (April 1, 2017 to March 31, 2018), and its performance was as follows.

During the fiscal year ended March 31, 2018, the Japanese economy followed a moderate recovery trend as corporate earnings and the employment and income environment remained firm. However, the economic outlook remains uncertain due to the uncertainty in overseas economies reflecting the continuing slowdown in China’s economic growth, growing concerns about the expansion of protectionist policies in the U.S., and emerging geopolitical risks, as well as a lack of stability in financial and capital markets.

In the printing industry, the operating environment was tough overall, reflecting a declining trend in demand for paper media owing to the accelerating shift to digital information media associated with the increased use of IT. At the same time, there are growing needs for products and services that consider reduction of the environmental burden, such as CO2 reduction and resource recycling across the entire supply chain, as companies step up ESG (Environment, Social, and Governance) initiatives.

Amid this environment, the Toppan Group has 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 realizing 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 worked to enhance competitiveness by reducing costs and strengthening technology development in existing businesses, and proactively put management resources into new businesses.

As a result, for the fiscal year ended March 31, 2018, net sales increased by 1.5% from the previous year to ¥1,452.7 billion. Further, operating profit increased by 1.3% to ¥52.2 billion, ordinary profit increased by 9.9% to ¥54.6 billion, and profit attributable to owners of parent was ¥42.2 billion, a 29.9% increase.

The year-end dividend has been set at ¥10 per share. This means that the total annual dividend is ¥20 per share.

In a changing macro environment, the Toppan Group will transform its approach to business as it aims to create new value and strengthen profitability.

The continued understanding and support of our shareholders is greatly appreciated.

June 2018
Shingo Kaneko
President & Representative Director