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TOPPAN PRINTING CO., LTD.

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Management Policy

As of May 12, 2017

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 engaging in economic pursuits while simultaneously striking a proper balance with social and environmental activities through efforts to fulfill the Group’s corporate social responsibilities (CSR). 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, the Group will strive for the sustainable growth of the Toppan Group, with a focus on creating new businesses in the four business fields for growth, namely, Healthcare & Life Sciences, Education & Cultural Exchange, Urban Spaces & Mobility, and Energy & Food Resources.

In Healthcare & Life Sciences, based on the ideas of health promotion, preventive and presymptomatic medicine, and comprehensive regional care, the Group will leverage know-how cultivated in supporting local governments and CRM (Customer Relations Management) methods to contribute to the creation of a healthy and secure society.

In Education & Cultural Exchange, under the “TABI-DO Project” aimed at improving the quality and convenience of trips to Japan for foreign visitors, the Group will provide total support for the inbound tourism business by offering street museums and other high added-value content and services that make use of 4K video and multi-lingual translation. In addition, by providing educational support services that support the fostering of diligence and improvement of academic ability while using ICT to provide intrinsic and extrinsic motivation, the Group will support the increasing use of information technology in classrooms and the creation of learning spaces suitable for the 21st century in order to contribute to the development of human resources to support Japan.

In Urban Spaces & Mobility, the Group will aggressively expand sales of new products such as the “Smart NANO” decorative sheet, which has the world’s most advanced level of surface features, and liquid crystal dimming film, while supporting town revitalization with regard to urban spaces by combining solutions from across the Group.

In Energy & Food Resources, the Group is pressing ahead with full-fledged entry into the agricultural business based on an alliance in August 2016 with a company engaged in next-generation agricultural business. The Group will contribute to the further industrialization and revitalization of agriculture through the development of production efficiency solutions that make use of IoT (the Internet of Things), and the achievement of long-term preservation of freshness through functional packaging materials, and the creation of a distribution scheme that ensures traceability.

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 and electronics related businesses where it has a technological advantage.

In the security business, the Group will offer products and services by leveraging its technological capabilities, including brand protection, such as authentication supported by advanced authentication technology.

In the packaging business, the Group has built a production and sales structure in North America centered on the Georgia Plant, based on the strength of the transparent barrier film “GL BARRIER,” which was developed by the Group and holds the top share globally. In addition, the Group will strengthen its global business foundation by carrying out capital and business alliances with companies engaged in the packaging business in India and in the ASEAN region, where market growth is anticipated.

In the electronics business, with regard to photomasks, in addition to a joint development framework with customers, the Group will expand business mainly in the rapidly growing Asia region, through measures such as strengthening its production system for cutting-edge products in China.

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