As of May 11, 2018

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 by creating new businesses to support the business transformation corresponding to digitalization (digital transformation) of customers, while accelerating business development in the four business fields for growth, namely, Healthcare & Life Sciences, Education & Cultural Exchange, Urban Spaces & Mobility, and Energy & Food Resources.

As IT permeates society, companies are being required to undergo a digital transformation amid rapidly expanding new demands related to digital technology, such as utilization of AI, IoT, and big data. Drawing on the extensive solution lineup, broad customer base, and advanced security management system that are its strengths, the Group will support the digital transformation of its customers through providing new digital services that maximize sales promotion effects by extracting value from information based on collection and analysis of vast amounts of CRM-related data. In Education & Cultural Exchange, which is one of the business fields for growth, the Group will work to create high added-value digital archives and contents for cultural heritage in Japan and overseas by combining the latest digital expression technology with knowledge from the sciences and humanities. In addition, under the “TABI-DO Project” aimed at improving the quality and convenience of trips to Japan for foreign visitors, the Group will further promote business expansion related to regional revitalization and establishment of Japan as a tourism destination by deploying a range of solutions such as street museums, 4K video, and multi-lingual translation.

As a lead-up to these initiatives, the Group carried out a radical revision of its organizational structure, including the establishment in January 2018 of a new body responsible for promoting the formulation and implementation of strategy for the Group as a whole, in order to accelerate the development of businesses centered on digital technology, regional revitalization and the establishment of Japan as a tourism destination. The Group will transform its business portfolio by swiftly and surely capturing increased business opportunities through proactive investment of management resources.

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, interior décor materials 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 will strive to cultivate markets by developing demand centered on the Georgia Plant, which produces the barrier film “GL Barrier” product brand in the U.S., and by quickly establishing a manufacturing and sales structure through alliances with local companies in ASEAN, where market growth is anticipated.

In the interior décor materials business, the Group will also proactively use its local production capabilities in Europe to create a business foundation based on local production for local consumption.

In the electronics business, with regard to photomasks, in addition to building partnerships through a joint development framework with customers, the Group will capture robust demand in China by bolstering its local production system through investment in facilities for cutting-edge products.