As of May 13, 2019

Basic Management Policies of the Company

The corporate philosophy of the Company being that we “reciprocate our customers’ continued trust, create dedicated products by harnessing our vibrant knowledge and technology, and contribute to a fulfilling lifestyle as a mainstay of information and culture,” the basic management policy of the Company is to grow and develop with our customers and society.

All employees will share the same sense of purpose and concept of values in taking on the challenge of establishing new technologies and business pursuant to TOPPAN VISION 21, which sets out Toppan’s Corporate Structure and Business Fields for the 21st century, as well as comply with corporate ethics and give due consideration to the environment and safety in conducting corporate activities amid various relationships and interactions with society.

The Toppan Group will seek to expand business domains and generate new income flows through the realization of TOPPAN VISION 21, thereby achieving the Group’s lasting growth and becoming a company that is highly esteemed and trusted not only by its shareholders and customers, but also by consumers and the broader community.

Medium- and Long-Term Business Strategies and Issues to be Addressed

The Toppan Group aspires to grow into a strong corporate group that is trusted by society more than ever before by actively taking on the challenges under the SDGs (Sustainable Development Goals), to realize a sustainable society. As its major medium-term management challenges, Toppan has identified implementing Group-wide structural reform, creating new business and markets, and accelerating global business expansion, and will pursue the following courses of action in order to implement optimal allocation and effective utilization of management resources in the aim of further business expansion.

1. Implementing Group-wide structural reform

With regard to implementing Group-wide structural reform, the Group will reorganize overlapping businesses, evaluate underperforming businesses, improve productivity, including indirect departments, and optimize its personnel.

2. Creating new business and markets

With regard to creating new businesses and markets, as IT permeates society to rapidly expand new demands related to digital technology, such as the utilization of AI, IoT and big data, the Company will create new businesses to support business transformation corresponding to digitalization (digital transformation) of customers by storing, analyzing, and leveraging data. The Group will combine open innovation, small-scale investment, and M&As, to accelerate business development in the four business fields for growth, namely, Healthcare & Life Sciences, Education & Cultural Exchange, Urban Spaces & Mobility, and Energy & Food Resources. The Group also will aim to create new businesses that contribute to solving regional issues such as community development and tourism. Furthermore, in the area of research and development, the Group will consolidate its resources to improve its technological development and manufacturing capabilities thereby to promote development themes that contribute to new business creation in growth fields and the reinforcement of its core business.

3. Accelerating global business expansion

With regard to accelerating global business expansion, the Group will respond to strong overseas demand with a focus on the security, packaging, interior décor materials and electronics related businesses where it has a technological advantage. The Group will also enhance its governance, compliance, and risk management systems in line with the expansion of its overseas business.

In the security business, the Group will establish its business base by promoting the creation of value chains through business alliances and M&As, in addition to the media development capabilities and authentication technologies developed through domestic business operations in the ID management and authentication solutions businesses.

In the packaging business, in addition to focusing on the development and sales of environmentally-friendly products that meet society’s needs, the Group will promote the creation of supply chains centered on the barrier film “GL Barrier” product brand in the U.S. and cultivate the ASEAN market, the potential growth market, by leveraging its local production system.

In the interior décor materials business, the Group will promote region-specific strategies, such as proactively using local production and sales systems in Europe and the U.S. and reinforcing sales in the ASEAN.

In the electronics business, with regard to photomasks, the Group will capture robust demand in the growth market China by bolstering its local supply system through investment in facilities for cutting-edge products.