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Overview by Segment

As of August 9, 2017

Information and Communication

In the security business, performance declined overall from the previous year, including decreases in IC-cards and BPO (Business Process Outsourcing) for the finance industry.

In the business form related business, business forms decreased from the previous year as a result of a drop in unit prices due to simplification of product specifications, while BPO decreased significantly from the previous year due to downsizing of large projects and other factors. Data Print Service decreased slightly from the previous year due to the impact of a drop in volume and unit prices, despite strong performance in contracts for administrative notices mainly for financial institutions.

In the marketing business, while SP-related tools increased, flyers, pamphlets and catalogues decreased amid a trend to cut advertising expenses in the distribution industry. Meanwhile, the Company strengthened services to support increasingly complex corporate promotional activities, through measures such as creating an integrated marketing system to seamlessly handle needs ranging from centralized management and analysis of product purchasing data to multi-media development. Furthermore, as regional revitalization efforts by local governments swing into gear, the Company has developed various solutions, including high quality digital archiving of cultural properties using VR (Virtual Reality) technology, and provision of tour guide applications that can distribute multi-lingual videos and offer automatic voice translation.

In the content business, publications and printed materials declined from the previous year amid continued suspension, discontinuation and reduced pages in magazines. With regard to textbook publishing, the Company has incurred upfront expenses due to efforts made in sales activities and content development aimed at textbook adoption in the future. Meanwhile, amid a growing trend toward purchasing books online, the Company has bolstered efforts to revitalize the publications market by using its network with publishers and its product planning knowhow to launch a book gift catalogue service aimed at the elderly and other consumers who are unfamiliar with the Internet.

As a result, net sales for the Information & Communication segment decreased by 4.3% from the same period of the previous year to ¥203.6 billion and operating profit decreased by 39.7% to ¥4.9 billion.

Living & Industry

In the packaging business, flexible packaging materials including high value added packing materials for medical care and medicine showed steady performance as a result of taking full advantage of the sophisticated quality control system and clean production environment at the Gunma Center Plant, and sales of paper containers also increased. The Company has promoted the establishment of a base for global business expansion through efforts including full-scale operations at the plant in Georgia, US, that produces the transparent barrier film “GL Barrier,” and the conclusion of a capital and business alliance with a Thailand-based packaging material manufacturer in the flexible packaging materials business for the ASEAN market, where demand is rising for packaging with outstanding performance.

In the interior décor materials business, performance was strong for overseas markets, increasing from the previous year. The business used the “Smart NANO” technology, which offers superlative resistance to scratches and contamination, in its original brand “101 Series” to enhance its high value added product lineup.

As a result, net sales for the Living & Industry segment increased by 0.3% from the same period of the previous year to ¥99.8 billion and operating profit increased by 52.0% to ¥5.5 billion.


In relation to displays, although sales of small- to medium-sized color filters decreased, sales were steady for large-size filters, resulting in an increase in color filters from the previous year. Sales of anti-reflection films decreased from the previous year, despite capturing overseas demand for use in televisions. Sales of TFT LCDs increased substantially from the previous year owing to the acquisition of a Taiwan-based manufacturer of small- to medium-sized LCDs, along with strong sales for industrial equipment.

In the semiconductor business, semiconductor-related products performed steadily overall. Sales of photomasks were firm, due to aggressive sales expansion in high-end products for overseas markets amid the robust semiconductor market. FC-BGA substrate, which is a high-density semiconductor package substrate, increased from the previous year as a result of capturing overseas demand.

As a result, net sales for the Electronics segment increased by 39.2% from the same period of the previous year to ¥47.7 billion and operating profit increased by 641.3% to ¥3.1 billion.

Overview of performance by business segment

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