As of February 12, 2019

Information and Communication

In the security business, performance of IC cards was strong, but overall performance declined from the previous year as general securities decreased. Meanwhile, as the shift to cashless payment is being promoted, the Company strengthened its efforts to realize a cashless society, including starting to provide a service that makes it possible to introduce multiple QR code payment services to POS registers at stores in a short time and at low cost.

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 and other factors, while BPO (Business Process Outsourcing) decreased significantly from the previous year due to downsizing of large projects and other factors. Data Print Service increased from the previous year due to strong performance in contracts for administrative notices mainly for financial institutions, despite the impact of a drop in volume and unit prices for some customers.

In the marketing business, POP decreased on a shift of corporate sales promotion methods, but BPO increased by incorporating the needs for greater business efficiency. Meanwhile, the Company reinforced its base for overseas business expansion, including acquisition of part of the business of a U.S.-based general financial printing company. In addition, as marketing activities make the shift to digital information media, the Company strengthened its efforts in the digital domain, including expanding a service that offers total support covering all digital marketing for corporate CRM (Customer Relationship Management). With regard to an initiative for regional revitalization and establishment of Japan as a tourism destination, the Company opened the “NIPPON GALLERY TABIDO MARUNOUCHI” as a collaborative base for public offices and local governments, tourism-related organizations and corporations. The Company will pursue regional revitalization initiatives such as tourism and DMO businesses that involve promotion, based on the accomplishments and know-how it has cultivated in the creation of digital archives and contents for cultural heritage.

In the content business, magazines among other products declined from the previous year amid continued stagnation in the publications market. Meanwhile, in the continually expanding e-book market, BookLive Co., Ltd. reinforced its business base by placing advertisements in order to enhance brand recognition even further, and pursuing joint development of a new recommendation engine with a data analysis service company with which the Company has conducted a capital and business alliance.

As a result, net sales for the Information & Communication segment decreased by 0.9% from the same period of the previous year to ¥626.4 billion and operating profit decreased by 16.1% to ¥21.6 billion.

Living & Industry

In the packaging business, sales increased for flexible packaging materials from the previous year not only due to the impact of acquiring an Indonesia-based company in the ASEAN region, where demand is rising for packaging with outstanding performance, but also due to the increase in high value added packaging materials for medical care and medicine using the sophisticated quality control system and clean production environment at the Gunma Center Plant. Meanwhile, sales for paper containers such as those for beverages declined from the previous year.

In the interior décor materials business, sales increased from the previous year owing to domestic growth in decorative paper/film. In addition, the Company focused on new product development for “Toppan IoT Building Materials,” which help solve social issues such as monitoring residents and managing their health through the combination of Toppan’s traditional interior décor materials with IoT. Products include the “Location Floor,” which can detect location information through a combination of flooring with pressure sensors, and the “Stealth Health Meter,” which combines flooring and a body composition monitor to obtain physical information easily in the course of everyday life.

In the Living & Industry segment, despite the impact of soaring raw materials prices among other factors, the Company is strengthening the revenue structure by implementing structural reforms in line with cost reductions and changes in the business environment, and is reallocating management resources by steadily implementing its growth strategy.

As a result, net sales for the Living & Industry segment increased by 2.2% from the same period of the previous year to ¥313.0 billion and operating profit decreased by 21.7% to ¥14.3 billion.

Electronics

In relation to displays, sales of color filters decreased from the previous year, as sales of small- to medium-sized color filters mainly for smartphones decreased. Sales of anti-reflection films remained robust as a result of incorporating high value added products for TVs. Sales of TFT LCDs declined significantly from the previous year mainly for consumer products.

In the semiconductor business, sales of photomasks were robust due to capturing demand for cutting-edge products as the semiconductor market expanded in respond to rising demand for AI and IoT. FC-BGA substrate, which is a high-density semiconductor package substrate, increased from the previous year as a result of actively capturing demand for high value added products for overseas.

As a result, net sales for the Electronics segment increased by 0.9% from the same period of the previous year to ¥149.6 billion and operating profit increased by 7.4% to ¥11.1 billion.

Overview of performance by business segment