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. Meanwhile, in order to strengthen our ability to support greater use of IT in the finance industry, the Company is providing related solutions through measures including a capital and business alliance with a company that provides basic technologies in the Fintech field, and the launch of settlement services that support product sales by allowing customers to make instant purchases through QR codes printed in sales promotion media such as catalogues.
In the business form related business, business forms decreased from the previous year as a result of a decline in demand volume associated with digitalization, while BPO decreased significantly from the previous year due to downsizing of large projects and other factors. Data Print Service decreased from the previous year due to the impact of a drop in volume and unit prices for some customers. Meanwhile, the Company promoted cultivation of new customers by actively developing services to support companies in managing forms in both paper and digital formats.
In the marketing business, flyers, pamphlets and catalogues decreased amid a trend to cut advertising expenses in the distribution industry. With regard to BPO, in response to the increasing complexity and scale of customer needs and demands for higher quality, the Company strengthened the foundation for expanding and advancing its business through a capital and business alliance with a company that has strengths in contact center operations.
In the content business, publications and printed materials declined from the previous year amid continued suspension, discontinuation and reduced pages in magazines. Amid such a market environment, the Company is strengthening initiatives to develop digital content, such as by concluding a capital and business alliance with a company that handles digital education materials from planning to sales.
As a result, net sales for the Information & Communication segment decreased by 3.0% from the same period of the previous year to ¥632.0 billion and operating profit decreased by 15.1% to ¥25.7 billion.
Living & Industry
In the packaging business, sales increased for flexible packaging materials including high value added packing materials for medical care and medicine, which take full advantage of the sophisticated quality control system and clean production environment at the Gunma Center Plant, and packing materials using mechanically recycled PET film made from recycled PET bottles, while sales of paper containers also remained strong. The Company expanded its lineup of highly environmentally friendly products including developing its first barrier paper as part of the transparent barrier film “GL Barrier” product brand. Meanwhile, performance in the label business declined from the previous year, and the plant in China involved in flexible packaging materials suspended operations temporarily due to tightened environmental restrictions by the authorities.
In the interior décor materials business, sales increased in domestic markets by capturing demand for commercial facilities, and performance was strong for overseas markets, resulting in increased sales from the previous year. In addition, the Company is promoting business expansion in global markets through measures including establishment of its first interior décor manufacturing base in Europe by the acquisition of a Spain-based interior décor printing manufacturer.
As a result, net sales for the Living & Industry segment decreased by 0.6% from the same period of the previous year to ¥306.2 billion and operating profit increased by 5.9% to ¥18.2 billion.
In relation to displays, sales of both large- and small- to medium-sized color filters decreased from the previous year. Sales of anti-reflection films decreased in the domestic market, and declined from the previous year. Sales of TFT LCDs increased substantially from the previous year, owing to the effect of integrating a Taiwan-based manufacturer of small- to medium-sized LCDs, which the Company acquired, along with strong sales for industrial equipment.
In the semiconductor business, sales of photomasks were firm due to aggressively capturing demand for high-end products in overseas markets amid the expanding semiconductor market. In such a business environment, the Company is working to reinforce its production system in Asia, through measures including the decision to carry out capital investment to handle mass production of cutting-edge products in China, where robust demand is expected and a stable supply from local production is required. FC-BGA substrate, which is a high-density semiconductor package substrate, increased from the previous year as a result of capturing strong overseas demand.
As a result, net sales for the Electronics segment increased by 34.8% from the same period of the previous year to ¥148.2 billion and operating profit increased by 221.6% to ¥10.3 billion.