As of February 9, 2018

Qualitative Information on Quarterly Financial Results for the Period under Review

The Japanese economy during the nine months ended December 31, 2017, generally followed a moderate recovery trend as corporate earnings and the employment and income environment remained firm. As for the economic outlook, while a recovery trend is expected to continue, uncertainty remains in some areas due to a slowdown in China’s economic growth, and the uncertainty of financial markets reflecting the growing interest rate gap caused by strategies to exit from monetary easing policies in the U.S. and other factors.

In the printing industry, the operating environment was tough overall, reflecting a drastic decline in demand for paper media owing to changes in information media associated with the accelerated progress of the shift to IT. At the same time, there are growing needs for products to lower the environmental burden across the entire supply chain, including CO2 reduction and resource recycling, as companies step up ESG (Environment, Social and Governance) initiatives.

Amid this environment, Toppan Printing Co., Ltd. (the “Company”) and its group companies (collectively, the “Group”) identified Healthcare & Life Sciences, Education & Cultural Exchange, Urban Space & Mobility, and Energy & Food Resources as four business fields for growth for TOPPAN VISION 21, which sets out Toppan’s Corporate Structure and Business Fields for the 21st century. Guided by the concept of “Designing Infinite Possibilities – Discover the Value of the Future. Make it Real with Planning and Creativity,” the Group strives to expand its business by realizing total solutions through enhanced Group collaboration and combinations of technologies and knowhow. In order to promptly establish new revenue models, the Group worked to enhance competitiveness by reducing costs and strengthening technology development in existing businesses, and proactively put management resources into new businesses.

As a result, for the nine months ended December 31, 2017, net sales increased by 1.6% from the same period of the previous year to ¥1,070.0 billion. Further, operating profit increased by 11.6% to ¥31.1 billion, ordinary profit increased by 24.0% to ¥34.8 billion, and profit attributable to owners of parent was ¥32.3 billion, an 85.5% increase.

Overview of consolidated performance in the current quarter