Contents

Introduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Sustainability Report 2023 | Transition to a Holding Company Structure | The TOPPAN Group’s Purpose & Values | Direction for the TOPPAN Group | The TOPPAN Brand Message

Direction for the TOPPAN Groupto accumulate broad-ranging know-how while responding

Sustainability and TOPPAN’s Purpose & Values

society with products and services based on new technologies.

To shape a sustainable society, the TOPPAN Group has aimed toalso been committed to addressing the needs of our customers

accurately identify market trends even more promptly to

be a company that creates social value as it advances

and the challenges they face. Our earnest efforts have won thepropose, develop, and provide new services.

sustainability management. Coinciding with the transition to atrust of customers and enabled us to expand our client base.

holding company structure, we have further clarified theToday, the TOPPAN Group has a wide range of customers

Group’s strengths is one that creates new value by combining

direction we will take by formulating TOPPAN’s Purpose &covering the entire market, including businesses, financial

technologies with other technologies, combining technologies

Values, which set out the vision of the society we want to make ainstitutions, educational institutions, and national and local

with creative ideas and the ability to apply them, or using

reality, the means to do so, and the values to be shared by thegovernment organizations. With so many points of contact andconceptual capabilities to fuse services or businesses together.

entire Group to achieve that. In formulating our Purpose &such extensive relationships with customers, we have been able

promptly to their needs. Going forward, we believe we canIn developing and providing products and services, we have

A business model that takes advantage of the TOPPAN

Values, we considered the future vision for the TOPPAN Groupand the role we want to play. This reconfirmed that we want tocontribute to solutions to social issues and, based on that, be aglobal company that leads the world. TOPPAN’s Purpose &Purpose

Breathing life into culture, with technology and heart.

Values embody our commitment to coming together as a group

TOPPANʼs Business Modelto make the world a sustainable society.

The TOPPAN Group’s Strengths and Business Model
The means by which the TOPPAN Group intends to enable aworld in which diverse cultures thrive are “technology andheart.” In other words, we believe that “technology” and “people”
are TOPPAN’s biggest strengths, and that employing themeffectively to create and deliver new value will enable a richsociety in which diverse cultures can thrive.
Over its long history, TOPPAN has refined “printing skills,”

Sustainable society
TOPPANʼs strengths

Social issues

Markets

Exploitingstrengths

ApplicationDXTechnologySX

Expertise

LeveragingGroupsynergies

Peoplebased on which the business was founded, into “printingNew
services
Linking

Solutions to social issues
Standardization

ProductsServices
Businesses

New services
andbusiness models

Combining
Newbusinesses

proprietary “printing technologies.” By further combining,

ValuesIntegrity

Proactivity

New
value

Creatingmodels

Sustainable growthtechniques,” and then fused them with diverse knowledge,
expertise, and processing technologies to establish a set ofConvenience, comfort
Fulﬁllment, happiness

PassionCreativity

applying, and evolving these technologies, we have provided07

Sustainability Report 2023

ContentsIntroduction

Management

Social (S)Environment (E)Governance (G)Recognition / Assurance

Sustainability Report 2023 | Transition to a Holding Company Structure | The TOPPAN Group’s Purpose & Values | Direction for the TOPPAN Group | The TOPPAN Brand Message

Digital & Sustainable Transformation
One of the challenges for companies advancing sustainability
management is creating completely new value throughinnovation. In formulating its Medium Term Plan, TOPPAN hastaken “Digital & Sustainable Transformation” as the key concept.
The approach set out is to invest proactively in priority andgrowth fields to create new businesses while reassessing andchanging the business itself and the portfolio, not just throughan extension of the total solutions we have provided thus far, butby driving a transformation centered on DX and SX.
This is the approach to transformation that the entire
TOPPAN Group should adopt as we accelerate efforts to pushbusiness globally. Without these initiatives, we believe it will beimpossible to survive and achieve sustainable growth in a global
society and economic environment expected to see increasing
uncertainty going forward. Based on DX and SX, we intend tobring comfort, convenience, fulfillment, and happiness to society
by evolving our business model and providing new value andnew services.

08

Sustainability Report 2023

Contents

Introduction

ManagementSocial (S)Environment (E)Governance (G)Recognition / Assurance

Sustainability Report 2023 | Transition to a Holding Company Structure | The TOPPAN Group’s Purpose & Values | Direction for the TOPPAN Group | The TOPPAN Brand Message

Overview of the Medium Term Plan

Accomplishments in the Fiscal 2021
Medium Term Plan—Foundation Building Phase

In 2023 the TOPPAN Group announced a New Medium Term

Positioning and Targets of the Result Delivery Phasein the New Medium Term Plan

Plan and kicked off related initiatives. The new plan continues

We believe that over the period of the Medium Term Plan that

The New Medium Term Plan is the phase for “accelerating

the key concept of “Digital & Sustainable Transformation” thatbegan in 2021 we have seen solid results in transforming thetransformation and expansion.” To expedite efforts to maximize

was set out in the plan published in 2021.

Company. These include expanding the scale of growthenterprise value, we will generate economic value bybusinesses and priority businesses through portfoliotransforming our portfolio and social value by intensifying ESG

the business portfolio, strengthening management foundations,transformation, making Toppan Forms Co., Ltd. a wholly owned

initiatives. We aim to achieve an ROE of 5% in fiscal 2025, theand expanding ESG initiatives. Based on a medium- to long-subsidiary, launching preparations to transition to a holding

final year, and an ROE of at least 8% and price-to-book ratio ofterm perspective, we have set target figures for the foundationcompany structure as part of strengthening management

more than 1 in the next Medium Term Plan.

building phase, result delivery phase, and sustainable growth

foundations, enhancing R&D, and taking a range of action inphase, and will accelerate our efforts to transform the Company

relation to ESG practices. Nevertheless, challenges remain increation of new pillars of business in DX and SX as well as

and create value.

terms of driving further efforts for sustainable growth focused on

securing stable profits through structural reform of low-profit

value creation. Areas to address include achieving higherbusinesses. Our investment and financial strategies will focus on

profitability by establishing earnings models for growthsustainable growth.

The three priority measures of the plan are transforming

For portfolio transformation, we will target higher profit andbusinesses, generating Group synergies, and evolving
sustainability management.

Medium Term Plan: Positioning of the Phases

Overall Picture of the Result Delivery Phase

New Medium Term Plan
(Fiscal 2023-2025)

Sustainable growth phase

Medium Term Plan
(Fiscal 2021-2022)

Result delivery phase

Realizing and furtheringtransformation and expansion

Foundation building phase

Accelerating transformationand expansion

Starting transformationand expansion
Transforming thebusiness portfolio

Economicvalue

Socialvalue

Vision for the result delivery phase

Achieve ROE of 5% and transform into a business entity for
maximizing value in the sustainable growth phase

ROE 8%+ (next Medium Term Plan)

Groupwide policy

Amplify creation of economic and social value by accelerating transformation and expansion

ROE 5% (Fiscal 2025)
New businesses (frontier)

DX（Digital Transformation）

SX（Sustainable Transformation）

Electronics

Expanding ESG initiatives① Transforming the business portfolio

Maximize
enterprise value

Growth businesses・Drive higher profit and create new pillars ofbusiness through DX and SXExisting businesses

・Secure stable profits through structural reform of
low-profit businesses

Allocation

Achieve P/B ratio
exceeding 1

Financial targets for fiscal 2025
Net sales
Operating profit

・Execute investment and financial strategy for sustainablegrowthROE

1,810.0 billion yen
110.0 billion yen
5.0 %② Strengthening management foundations
Shift to a holding
company structure

Systeminfrastructure

Manufacturing
infrastructureIntellectual
property strategy

Human assetstrategy

Sustainableproduction

Strengthen
governance③ Expanding ESG initiativesStrengthening management foundations

Achieve SDG-related
medium-term targets

09

Reduce environmental
impactHuman capital/
diversity

Sustainability Report 2023