Toppan : A3-size Integrated Report 2024

Integrated Report

2024

Introduction

Contents

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

Message from the President &

CEO

Contents

Issuance of Integrated Report 2024

Amid rapid changes in social needs and issues, such as heightening environmental consciousness and increasing digital demand due to lifestyle changes, companies are expected to respond as quickly as possible. The TOPPAN Group is working to address a variety of social issues through its business, aiming to grow even further as a company that is committed to helping resolve the challenges faced by society.

Integrated Report 2024 explains how the Group, a year after starting anew under the holding company structure, is working to create value over the medium to long term based on its medium-term plan; human asset, intellectual property (IP), and technology strategies; and the specific strategies of its business segments.

We view the integrated report as an important engagement tool for dialogues with shareholders, investors, and other stakeholders and have prepared this report by integrating financial and non-financial information to provide readers with a better understanding of the Group's activities. In preparing this report, we referred to the Integrated Reporting Framework of the IFRS Foundation and the Guidance for Integrated Corporate Disclosure and Company-InvestorDialogue for Collaborative Value Creation of the Ministry of Economy, Trade and Industry and gathered information across the entire Group with the cooperation of each department based on insights gained through dialogue with institutional investors and other stakeholders. I have confirmed the accuracy of this preparation process and the information contained in this report.

Going forward, we will continue to use the integrated report as a tool for sharing valuable information on our business activities and promote dialogue with stakeholders with a view to achieving sustainable increases in corporate value.

September 2024

Hideharu Maro Representative Director President & CEO

Chairman of the Board of Directors

Editorial Policy

Led by an editorial team consisting of the IR Team of the Corporate Planning Division, the ESG Communication Department of the Public Relations Division, and the Sustainability Management Office of the Corporate Planning Division, this report was prepared to provide an integrated view of the TOPPAN Group's growth strategies and activities for medium- to long-term value creation, including financial information and non-financial information, such as ESG (environmental, social, and governance) practices.

We also provide detailed financial information in our annual securities report and non-financial information in our sustainability report and the sustainability section of our corporate website. We hope that readers gain a better understanding of the Group's business activities through the information provided in these resources.

Note: Names of products and services, etc., in this report are trademarks or registered trademarks of the TOPPAN Group or respective TOPPAN Group companies.

Positioning of This Report

	TOPPAN Holdings Website
Financial Information	Non-financial (ESG) Information
Investors Section	Sustainability Section
Securities reports	Sustainability News, Special Content
Financial results, etc.	Sustainability activity reports
	Sustainability Report 2024
	Integrated Report 2024

Scope and Boundary

Period covered: April 1, 2023 to March 31, 2024 (Also includes information about certain activities outside of this period)

Entities covered: TOPPAN Holdings Inc. and consolidated subsidiaries (Also includes information about certain activities of the former Toppan Inc. and TOPPAN Inc. on a non-consolidated basis)

Forward-Looking Statements

This report includes certain forward-looking statements. These statements are based on management's current expectations and are subject to change in certain circumstances. Actual results may differ due to changes in economic, business, competitive, technological, regulatory, and other factors.

Information Disclosure on the Company's Website

We also provide information for investors and information on sustainability on our website. Please utilize this report in conjunction with the website.

Investors

https://www.holdings.toppan.com/en/ir/

Sustainability

https://www.holdings.toppan.com/en/sustainability/

Introduction

Message from the President & CEO

2

TheTOPPAN Group's Value Creation

History of the TOPPAN Group	8
TOPPAN's Purpose & Values	10
Vision of the TOPPAN Group	12
Technology Lineage	14
The TOPPAN Group's Strengths and
Management Capital	16
Value Creation Process	18
Materiality	20

Management Strategies for Value Creation

Message from the CFO	22
Progress of Medium-Term Plan	25
Strengthening Our Foundation for
Growth Strategies	30
Roundtable Discussion between the Group's
Operating Company Presidents	36

Business Strategies for Value Creation

Business Segments	40
Information & Communication	42
Living & Industry	52
Electronics	56

Initiatives to Support Sustainability

Management

Sustainability Management	58
Environmental Conservation	60
Social Initiatives	70

Corporate Governance

Roundtable Discussion between
External Directors	76
Director and Audit &
Supervisory Board Member Profiles	80
Skill Matrix of Directors and Audit &
Supervisory Board Members	84
Directors and Audit &
Supervisory Board Members	86
Basic Policy and Corporate Governance Structure	87
Evaluation of the Board of Directors	89
Remuneration of Officers	91
Strategic Shareholdings	93
Compliance	94
Risk Management	95
Information Security	97

Company & Stock Information

Company & Stock Information

98

Toppan Integrated Report 2024	1

Introduction		TheTOPPAN Group's Value Creation	Management Strategies for Value Creation	Business Strategies for Value Creation
Contents		Message from the President &
	CEO

Message from the President & CEO

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

What We Aim to Achieve as a Holding Company

We will accelerate the transformation

of our business portfolio and achieve sustainable growth through integrated value creation.

In October 2023, the TOPPAN Group transitioned to a holding structure with three operating companies-TOPPAN Inc. (the main divisions of the former Toppan Inc.), TOPPAN Edge Inc. (formerly, Toppan Forms Co., Ltd.), and TOPPAN Digital Inc.-under the umbrella of holding company TOPPAN Holdings Inc.

The purpose of the reorganization is to maximize Group synergies, optimize the allocation of management resources, and accelerate decision-making. From an organizational point of view, we have adopted a centripetal-type structure in which functions and authority for strategy, governance, and resource management are concentrated in the holding com- pany, and each operating company has the functions necessary for driving business and corporate management. By cutting across a compartmentalized organizational structure, we will accelerate business development beyond conventional frameworks, such as by jointly expanding sales of products to customers (by up-selling and cross-selling) and by developing new products through the integration of resources.

Underpinning the core of the Group's management foundation is TOPPAN's Purpose & Values, our Group philosophy established in May 2023 prior to becoming a holding company. Based on the idea that human sensibilities and innovation are the source of business growth, this Group philosophy is a clear statement of our stance to carry on the DNA we have

maintained since our founding of creating

integrated value by taking on challenges and transforming through innovation and contributing to resolving social issues.

In fiscal 2023, we generated Group synergies equivalent to net sales of ¥4.0 billion and operating profit of ¥1.2 billion through a joint effort between TOPPAN Inc. and TOPPAN Edge Inc. to expand their customer base, the expansion of sales of TOPPAN Inc.'s digital marketing products to TOPPAN Edge Inc.'s data print service (DPS) customers, the consolidation of manufacturing and BPO operations bases, and improvements in cost efficiency through the appropriate allocation of personnel across the Group. In fiscal 2025, the final year of the current medium-term plan, we expect such efforts to generate net sales of ¥15.0 billion and operating profit of ¥5.0 billion.

However, these results are merely an extension of the efforts we can make for the time being, and the profit level we should be aiming for is much higher. To expand the scope and speed of synergy creation, we recently formed new projects in the fields of healthcare and global security. To nurture the next generation of leaders, I will personally monitor the progress of projects and give directions as necessary.

I intend on sharing these results promptly and expanding these efforts across the Group.

Updates to the Current Medium-Term Plan

Hideharu Maro

Representative Director

President & CEO

Fiscal 2023, the first year of our current medium-term plan, was a year in which our business environment remained uncertain across the globe. While digitalization progressed in society as a whole and environmental needs steadily grew, we have experienced delays in some areas compared with our initial expectations. In addition, heightened geopolitical and foreign exchange risks, as well as increased amortization costs associated with standardizing useful lives in the photo- mask business, weighed on profits.

In light of such circumstances, the Group's business portfolio transformation is proceeding as planned, with the completion of consolidation of production bases in the Tokyo metropolitan area for publication and commercial printing, which are businesses that need to be reviewed, and the restructuring of the folding carton business. In growth busi- nesses, including priority businesses, semiconductor-related business performed favorably, while DX (Erhoeht-X) and SX in Japan / overseas Living & Industry also contributed to earnings. Nevertheless, consolidated operating profit amounted to ¥74.2 billion, falling short of our initial target

of ¥78.0 billion, calling for the need to step up our overall performance.

Accordingly, we have reexamined the issues faced by each business and revised our plan to achieve ROE of 5% in fiscal 2025, the final year of our current medium-term plan. We took into consideration various risk factors, such as extended lead times for large-scale marketing DX projects and delays in the introduction of government cloud computing by local governments in Hybrid-BPO in the DX business, as well as delays in environmental regulations in Europe and deteriorating market conditions for décor materials in Japan and overseas in the Living & Industry business. On the other hand, we took positive factors into account for the Electronics business, such as favorable trends in the semiconductor market and foreign exchange gains. As a result, we have revised downward our consolidated operating profit target for the final year, from ¥110.0 billion to ¥100.0 billion, and our share of consolidated operating profit from growth busi- nesses, from 64% to 60%.

2	Toppan Integrated Report 2024

Toppan Integrated Report 2024	3

Introduction

トップインタビュー

Contents

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

Message from the President &

CEO

While staying on track with our plan of having growth	line with the current business environment. Under the
businesses account for at least 60% of operating profit in	updated plan, we will accelerate all of our decision-making
fiscal 2025, I believe we have increased the probability of	by constantly being aware of the speed of market changes.
achieving our medium-term plan by adjusting its course in

From the Result Delivery Phase to the Sustainable Growth Phase

of the market and will change with the times. I do not believe that the current business structure, which is based on digital transformation (DX) and sustainability transformation (SX), will necessarily remain intact 10 years from now. At that time, our business structure may hinge, for example, on 3D cell culture technology in the healthcare sector or a completely new business based on AI. The current Group structure consisting of three operating companies will likely undergo significant changes as a result.

business fields and create value for society by flexibly responding to its latest needs. We must also continue to nurture the human resources who will assume these challenges 10 to 20 years from now.

The Group has been steadily responding to these chal-

lenges in recent years. Despite the declining performance of paper media, the restructuring of our business portfolio was a success, contributing to our highest results for consolidated net sales in fiscal 2023. Persistence, flexibility, and

The current medium-term plan, with the theme of "result delivery," corresponds to the second phase of our medium- to long-term roadmap. Our 5% ROE target in the current medium-term plan will increase to 8% or more in the third

targets, which are in line with the average ROE (9.6% for fiscal 2023) of companies listed on the Tokyo Stock Exchange (TSE) Prime Market, we must start planning ahead of schedule. In doing so, the following points should be

What is important is the ability to recognize changes in the market and continuously transform our business portfo- lio. We must constantly pursue the development of new

resilience are the TOPPAN Group's greatest strengths and the best assets to pass on to future generations.

(sustainable growth) phase, and we intend to increase this

emphasized.

Expanding Global Business through Enhancements in Quantity and Quality

even further to 10% in the future. In order to achieve these

Accelerating Our Business Portfolio Transformation

Looking back on our history, the paper media printing business, the Group's founding business, was a typical equipment-centric industry. This type of business, which had the potential to be stable despite low profit margins, involved large amounts of equity capital, and financial soundness was the hallmark of an excellent company. However, the world's standards have changed drastically. Companies are now being called on to efficiently allocate the capital entrusted to them by shareholders to generate profits, and the most prominent indicator for this is ROE. Meanwhile, the trend from paper to digital media is accelerating, and in fiscal 2023 the share of consolidated net sales accounted for

by paper media in publication and commercial printing fell to approximately 14%.

Under these circumstances, for the TOPPAN Group to remain a company that continuously contributes to society, we must clarify what we will change and what we will not change. First, we must never waver in our efforts to earn a reasonable profit through products and services that contribute to the enrichment of people's lives and their safety and security, and to invest in the future. I am referring to the concept of integrated value creation that incorporates perspectives on ESG and other social issues. Moreover, what exactly these products and services will be depends on the needs

Global expansion is essential for the further growth of our business. In Japan, the main themes to address are the pursuit of quality and high-value-added products and services that help resolve social issues. Meanwhile, overseas, we must provide solutions to social issues concerning food, clothing, and housing in markets that are likely to expand due to population growth and will tackle this theme by pursuing enhancements in both quantity and quality.

In the overseas packaging business, we will meet the steadily increasing demand for environmental consciousness by establishing a global production system that integrates the entire packaging process, from material procurement to converting, centered on flexible packaging such as SX pack- ages. In the global security business, we are establishing business sites and pursuing M&A of local companies with a focus on the Global South (Africa, Central and South America, and Southeast Asia) to provide one-stop ID

solutions, including national elections, passports, and driver's licenses. There is also still room for improvement in the Electronics business, where the overseas market already accounts for a large percentage of sales.

Our overseas sales ratio was 35.1% in fiscal 2023.

Considering that the majority of large-scale investments, such as M&A and alliances, will be made overseas, it is only a matter of time before overseas sales account for the majority of our consolidated net sales. At that time, when Japan becomes a part of the global market, our Group governance will undergo significant changes. Possible changes include the establishment of new business sites in overseas areas that make the largest contributions to raising ROE, the appointment of non-Japanese directors to our holding com- pany, and English becoming the Company's standard in- house language.

Further Strengthening Our Management Foundation

Initiatives for Human Capital and Diversity

Our business is driven by our employees, and therefore the transformation of our human resource portfolio is essential to the transformation of our business portfolio. The Group has long regarded human resources as valuable assets and refers to them as "human assets." In view of this, we are promoting the development of each individual's capabilities through extensive education and training programs. Indicators related to human capital and diversity are becoming increasingly emphasized in recent years, and new schemes, such as employee stock compensation programs, are being introduced.

The expansion of technical human assets is an urgent issue. With DX human assets in particular, we have nurtured and acquired approximately 5,000 employees through diverse recruitment channels, the operation of human asset development programs, and the reskilling of employees in existing

businesses. In addition, we are promoting new initiatives, including in-house staff recruitment, with the aim of expanding our workforce of DX human assets to 6,000 employees.

Moreover, we conduct a training program for our younger employees under the supervision of the president & CEO, and when visiting areas in Japan or business divisions overseas (sales offices), we create opportunities to communicate directly with promising young employees to get to know them better. In April 2023, we established the President's Strategy Office, consisting of executive officers, division managers, and department heads at the managerial level and above. By establishing a forum to engage in honest discussions with future leadership candidates, we aim to promote communication and work organically across the entire organization. We also have a succession plan in place for all executive positions to develop our next generation of leaders.

4	Toppan Integrated Report 2024	Toppan Integrated Report 2024	5

Introduction

トップインタビュー

Contents

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

Message from the President &

CEO

Integrating R&D and IP Activities with Business Strategies

Research and development (R&D) and intellectual property (IP) strategies are areas that I have focused on in particular since becoming president. We are working to establish a competitive advantage by organically linking our business strategies, R&D, and IP activities, aligning the business areas to focus on for the medium-term plan with the IP areas to strengthen.

Since assuming office as president, I have raised the

annual R&D budget, from ¥20.0 billion to ¥30.0 billion. This ¥10.0 billion increase represents both a significant challenge and a tremendous opportunity for growth for our development divisions. This is because in order to fully implement the budget, we must provide an absolute number of development themes and their degree of progress. In unpredictable situations, we must expand the number of development themes to create new businesses that could become the future pillars of our growth. While it may have some impact on operating profit, this budget increase demonstrates my determination to continue planting seeds for the future, and

I hope it encourages all of our engineers to take advantage of the opportunity.

In terms of IP strategies, we promote rights acquisition based on forecasts of domestic and overseas markets, and even for IP that has already been granted rights, we identify the existence of competition and the need for rights in peripheral areas on a case-by-case basis. Compiling this information into a visual "IP landscape" and referring to it when necessary enables more effective business strategies and business models to be formulated.

Within the Group, the holding company, TOPPAN Holdings Inc., centrally manages IP information while promoting cross-organizational collaboration between operating companies to create synergies. Furthermore, to establish global governance of IP, we are expanding these measures to overseas Group companies. We place particular emphasis on IP strategies and meet regularly with the relevant authorities to exchange views on the direction of Japan's IP policy.

Expanding ESG Initiatives

Incorporating Materiality into the Medium-Term Plan

In the TOPPAN SDGs STATEMENT, announced in 2019, the Group identified the material issues for its business and Companywide activities. Under the umbrella of Business Materiality, we have set specific KPIs by linking the growth businesses in our medium-term plan with the TOPPAN

Although we became an early adopter of the TNFD* Recommendations, an information disclosure framework on nature-related risks, in terms of the overall direction of our ESG initiatives, there is no denying that improvements need to be made from the point of view of uniqueness and timeli-

It should also be noted that although there are currently	hires has been roughly equal between men and women, and
no female internal directors, many talented female employ-	we expect that this will eventually be reflected in the compo-
ees are thriving within the Company, and two of our execu-	sition of the Board of Directors.
tive officers are women. In recent years, the number of new

Becoming a CompanyThat We Are Proud to Be a Part of through Sustainable Value Creation

Business Action for SDGs, which defines areas of focus related to the environment, communities, and people. In terms of Companywide Materiality, the material issues for our Companywide activities are linked to key sustainability themes to provide a foundation for business activities and addressed through the efforts of the entire Group.

ness. There is no need to be adamant about setting low targets and then revising them upward later. I would like to remind our employees that rather than being so keen on accomplishing the plan, it is more important to set ambitious targets, take prompt action, and be able to "think while you run."

• Taskforce on Nature-related Financial Disclosures. The final recommendations of the TNFD were made in September 2023.

I believe that a company's growth hinges on the corporate vision of top management. If I were to set a certain limit, the Company would only grow to that extent. The TOPPAN Group is a business that will continue to grow, and, as long as I am president, I will do my utmost to solidify our management foundation, including ESG, and transform our business portfolio.

proud to be a part of and expands through the efforts of each individual.

The Group will continue to fulfill the expectations of shareholders and investors by enhancing corporate value and providing stable and appropriate shareholder returns. We will expand business in growth areas and promote structural reforms to fundamentally enhance profitability, while achiev-

Strengthening Our Governance System from Diverse Perspectives

Despite our B2B business model, we must always be mindful of the consumers who engage with our customers

ing sustainable improvements in ROE through appropriate levels of equity capital. We hope you look forward to the fur-

To strengthen the supervisory function of the Board of Directors, the Company has appointed three external direc- tors. Ms. Aska Takeuchi was newly appointed in place of Mr. Yoshinobu Noma, who served in this position for 14 years.

Ms. Takeuchi has experience and knowledge in business development and contributing solutions to social issues, such as supporting companies' overseas expansion and information dissemination and conducting educational assistance programs to improve children's communication skills. She is also well-versed in overseas business and the economy in gen- eral, and therefore we expect that she will fulfill her advisory and supervisory functions from a wide-ranging perspective. Regarding the Board of Directors, in 2021 the Company

reduced the number of internal directors and increased the proportion of independent external directors to one-third, invigorating discussions by providing external directors with almost three times more opportunities to speak. Existing external directors Ryoko Toyama and Mieko Nakabayashi are academic experts in business administration and international public policy, respectively. They both have extensive knowledge of international affairs and provide valuable advice from a variety of perspectives, including current issues. With the recent addition of Ms. Takeuchi, the proportion of female directors has increased to one-third. Through such diverse membership, we intend to engage in even livelier discussions than ever before and tie this shift to increases in our corporate value.

and help bring comfort and enrichment to their lives through our services and manufacturing. While responding to rapid changes in the world, we must strive to create integrated value, receive a fair return from society, and enhance the sustainability of our value creation process. Repeating this cycle is a continuous challenge. As demonstrated by the Group's business portfolio transformation, the attitude to not settle for a specific type of business is what enhances a company's sustainability. Challenges are pursued through the strength of each individual, and the growth of a company is without doubt the sum of the growth of each individual. As president, I will do whatever it takes to ensure that the TOPPAN Group continues to be a company that we are all

ther growth and development of the TOPPAN Group going forward.

September 2024

Representative Director

President & CEO

6	Toppan Integrated Report 2024

Toppan Integrated Report 2024	7

Business Expansion:

Social Value Creator:

Business Establishment:

Business Diversification:

Connecting People and Society

Introduction

History of theTOPPAN Group

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

TOPPAN's Purpose & Values

Vision of theTOPPAN Group

Technology Lineage

TheTOPPAN Group's Strengths

Value Creation Process

Materiality

and Management Capital

TheTOPPAN Group's Value Creation

History of the TOPPAN Group

-

	In the early years of the Meiji Era, after Japan's civili-
	zation and enlightenment, Edoardo Chiossone, an
1900
	Italian copper plate engraver who also designed
	banknotes, trained Japanese people on banknote
Spirit	printing techniques. In 1900, five founders led by
Chiossone's pupils established Toppan Printing
Limited Partnership to further develop Japan's printing
industry based on the Erhöht relief printing method,
the most advanced printing technology at the time.
Venture
Established with the latest technology from the
Ministry of Finance's Printing Bureau, which handled
banknote printing, the Company has been driven by
a venture spirit since its inception (see "Technology
and	Lineage" on page 14). Our founding statement, "char-
ter for the establishment of Toppan Printing as a
company", declares that printing is a fine art, demon-
Technology
strating the founders' commitment to delivering
high-quality printed materials to the world.
The beauty and precision of the printing on ciga-
rette wrappers, one of our first projects, gained a
reputation, clearing the path for our entry into share
		certificate printing, which had
Robust
		long been a dream of the
		Company.
Our		Erhöht relief printing copperplate
Embracing	Five founders

1920 -

In 1923, the Company appointed its third president, Gennojo Inoue, who worked vigorously to grow the Company into a leader in the printing industry by continuing to incorporate the latest technologies. He took charge of management during a turbulent period when Japan was at the mercy of natural disasters and social unrest, from the Great Kanto Earthquake, the Great Depression, and the Sino-Japanese War to World War II.

• Despite the series of challenges, the TOPPAN Group underscored the importance of relationships with its clients by establishing branch offices through- out Japan and continuing to respond to their needs. Inoue, who had been involved in plant operations and sales activities since the early days of our founding, preached the importance of passion and integrity in dealing with clients, and these values are still carried on to this day in TOPPAN's Purpose & Values (see page 10).
  Immediately after the Showa Depression, intense competition and mergers characterized the printing industry. In 1938, the Itabashi Plant was completed under the concept of building the best plant in the East as a means to overcome an intensely competi- tive environment, thereby laying the foundation for an integrated printing company.

-

	Although our Shitaya Plant was damaged in World
	War II, we endeavored to recover quickly and resume
1950
Solutions	production. At the request of the Ministry of Finance,
the Company cooperated in the mass printing of
Bank of Japan notes, making significant contributions
to Japan's postwar recovery. The popularity of weekly
tabloid magazines associated with the liberalization of
Intangible
speech after World War II and the resurgence in con-
sumption as the country emerged from a state of
poverty led to an increase in orders for publication
and package printing.
Amid the development of a mass consumer soci-
and	ety, we pioneered the field of marketing beyond the
manufacturing sector of printing by perceiving it as a
new knowledge-based industry.
Tangible
In the late 1960s and 1970s, the Company was
struck hard by the dollar and oil shocks, and the foun-
dations of Japan's rapid economic growth were
shaken. Under such circumstances, our fifth presi-
for	dent, Kaichi Sawamura, led the Company's manage-
ment under the mantra "from quantity to quality" by
Technological Innovation
using technological innovation to diversify business
operations as a Company leader from an engineering
background (see "Technology Lineage" on page 14).

2000 -

With the advancement of the information society, the printing industry has entered an era of significant management transformation in response to such trends as the advent of internet advertising, the spread of e-money services, and the expanding market of mobile content.

	The medium of information exchange has been
	shifting from paper to electronic. Against this
	backdrop, the TOPPAN Group began developing and
	providing products and services that contribute to the
	security of communication and telecommunications
	in the information society (see the "Information &
	Communication" section of "Business Strategies for
	Value Creation" on page 42).
	Utilizing our printing technologies, we are also
	focusing on business areas related to semiconductor
Society	production, which is indispensable to the growth of
the information society (see the "Electronics" section
of "Business Strategies for Value Creation" on page
56).
At the same time, environmental issues must also
Global
be addressed immediately by modern society. By
providing food packaging and décor materials that
offer exceptional performance and minimize impact
on the environment, the TOPPAN Group contributes
Realizinga Sustainable
to the realization of a sustainable society (see the
"Living & Industry" section of "Business Strategies
for Value Creation" on page 52).

Nobukichi Kimura	Ginjiro Furuya	Kishi Ito

Tatsutaro Kawai

Shinjiro Miwa

The Itabashi Plant (1938)

Toppan Printing Service Center (1961)

	The Company's third president, Gennojo Inoue
Head office and main factory (around 1906)	Marketing Research Laboratory (1968)	VR Theater at the KOISHIKAWA XROSS Digital Museum (2024)

8	Toppan Integrated Report 2024	Toppan Integrated Report 2024	9

Introduction		TheTOPPAN Group's Value Creation	Management Strategies for Value Creation	Business Strategies for Value Creation
History of theTOPPAN Group		TOPPAN's Purpose & Values		Vision of theTOPPAN Group		Technology Lineage			TheTOPPAN Group's Strengths
					and Management Capital

TOPPAN's Purpose & Values

By embracing its venture spirit from the early days of its founding, theTOPPAN Group has continued to create products and services that resolve social issues by underscoring its relationships with people and society. With our transition to a holding company in 2023, we have redefined our Purpose and established four values we must embrace going forward in order to realize this Purpose.

Initiatives to Support Sustainability Management	Corporate Governance	Company & Stock Information
Value Creation Process		Materiality

Purpose

Breathing life into culture, with technology and heart.

"Breathing life into culture"

We have been closely involved with information and people's lifestyles through a wide range of businesses centered on our printing technologies, creating and conveying various cultures. This involvement is something we must constantly keep in mind. By respecting our relationships with society, including the various countries and regions in which we operate and the individuality and lifestyles of each person, we will contribute to the development of culture by aiming to shape a world in which diverse cultures thrive.

"Technology"

"Technology" refers to product- and service-based printing technologies that incorporate our commitment to continue inspiring and respecting human beings.

"Heart"

A spirit we have long embraced, based on our ability to understand people's feel- ings, thoughts, and needs and the ability to generate ideas based on them that has been cultivated over the past 120 years

10	Toppan Integrated Report 2024

Values

Integrity

Act with sincerity, build relationships on trust.

Passion

Be enthusiastic, boldly take on challenges.

Proactivity

Think ahead, act with speed.

Creativity

Be imaginative, create new value.

Toppan Integrated Report 2024	11

Introduction

History of theTOPPAN Group

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

TOPPAN's Purpose & Values

Vision of theTOPPAN Group

Technology Lineage

TheTOPPAN Group's Strengths

Value Creation Process

Materiality

and Management Capital

Vision of the TOPPAN Group

TheTOPPAN Group has established a vision of what it aims to achieve based on its business environment and the strengths it has cultivated over its long history from the early days of its founding. In the medium-term plan, we have formulated business strategies to achieve this vision.

We believe that our contributions to resolving the world's social issues through our products and services will lead to the realization of a society in which diverse cultures can thrive.

Vision of the TOPPAN Group

Digital & SustainableTransformation

Becoming a leading provider

of solutions to social issues worldwide through DX and SX

We will resolve the various issues faced in society and people's lives one at a time through the innovation of products and services that are essential to our daily lives. In so doing, we will realize a society in which diverse cultures can thrive and no one is left behind.

TOPPAN's Definition of DX and SX

The TOPPAN Group defines "digital transformation (DX)" as "leveraging digital approaches to transform society, customers' businesses, and our own businesses" and "sustainable transformation (SX)" as "fostering transformation with the aims of resolving social issues through business activities and implementing management with a focus on sustainability." We have positioned businesses that are deeply involved in DX and SX and drive the transformation of our business portfolio as growth businesses, with the goal of expanding the proportion of profit they account for during the period of our current medium-term plan.

P25  Progress of Medium-Term Plan

Social Issues to Address

We have defined "sustainable global environment," "creation of safe, secure, enriched communities," and "empowerment and fulfillment of body and mind" as "business materiality" themes, and we will work to resolve social issues through our business activities with the aim of realizing "fulfilling, sustainable living." Moreover, to realize our three "business materiality" themes, we formulated TOPPAN Business Action for SDGs and set targets for its nine areas of focus to be achieved by fiscal 2030 and are currently working toward that goal.

P20  Materiality

12	Toppan Integrated Report 2024

Toppan Integrated Report 2024	13

Introduction

History of theTOPPAN Group

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

TOPPAN's Purpose & Values

Vision of theTOPPAN Group

Technology Lineage

TheTOPPAN Group's Strengths

Value Creation Process

Materiality

and Management Capital

Technology Lineage

During our long history, printing skills-our starting point-became printing techniques. By further evolving these techniques through integration with diverse expertise and processing technologies, we have made "printing technologies" a proprietary resource.

Each of our five core technologies-informationprocessing, microfabrication, surface treatment, material forming,and marketing solutions-has its own unique characteristics. Moreover, when they are combined in a multi-faceted manner they also have the power to produce diverse solutions.

On a foundation of printing technologies, theTOPPAN Group will continue to address client perspectives (market needs) and social perspectives (social issues). We will strive to create new forward-looking solutions while taking steps to strengthen our technologies, such as by engaging in co-creation initiatives with other companies and leveraging Group synergies.

Marketing

Printing Technologies

Marketing Solutions

Research and analysis capabilities / Strategy preparation and coordination capabilities / Product and service development capabilities / Creative capabilities (graphics, video, spaces, CG) / IT utilization capabilities (design, development, operational support) / Back office coordination capabilities / Comprehensive solutions capabilities

& Communication

Diverse solutions made possible by

printing technologies

Digital marketing	Manufacturing /
distribution DX
BPO solutions	Health big data
Payment solutions	Medical services

Value provided

Resolve social issues, such as the declining working population

Provide safe and secure infrastructure through proper management of personal information

Provide customer experiences from the perspective of ensuring well-being

Support the sustainable business growth of clients and enhance profitability through productivity improvements and streamlining of operations

TOPPAN's

Foundation

Printing	Printing
Skills	Techniques

14	Toppan Integrated Report 2024

IT

Creative Design

Integration & Evolution

Processing

Technologies

Information Processing

	Computerized typesetting / Color management technologies /
	Digital content technologies / High-definition image digitization
	technologies / Expression technologies / Information security
	technologies / System construction and operation technologies /
Technologies	Data management technologies / Communication network
technologies
	Microfabrication
	Etching technologies / Photolithography technologies /
	Plating technologies / Photopolymer technologies / Optical design
	technologies / Testing and correction technologies / Clean production
Five Core	environment technologies
Surface Treatment
	Precision coating technologies / Lamination technologies /
	Drying technologies / Material design and evaluation technologies /
	Coating technologies / Composite material and multilayer
	technologies / Vacuum deposition technologies
	Material Forming
	Surface decoration technologies / Vacuum deposition technologies /
	Resin molding technologies /Thin-film formation technologies /
	Structural design technologies / Filling and packaging technologies /
	Environmental technologies

Information

Electronics

Living & Industry

Books / magazines Catalogs

Data printing services

Smart cards

FC-BGA substrates Photomasks Fine metal masks Functional sensors

GL BARRIER

Eco-friendly packaging

Décor materials

Liquid containers Plastic molded goods Refill containers LCA solutions

E-books

Educational ICT

VR / AR / MR

ID / RFID management

Color filters TFT-LCD panels Light control films

Anti-reflection films

Lithium-ion battery packaging materials

Energy-related components

Material / chemical recycling

Biotech

Contribute to the development of social infrastructure

Provide safe, secure, and simple services

Contribute to economic development, particularly in emerging countries

Preserve and pass on culture

Create and provide next-generation communication platforms

Contribute to resolving the social issues of increasing data traffic and power consumption

Create innovations that contribute to the realization of a smart society

Contribute to ensuring food safety and health through high-quality packaging

Contribute to enriching people's lives through décor materials that offer exceptional design and functionality

Contribute to reducing environmental impact and realizing a recycling-oriented society through the provision of SX products and services

Toppan Integrated Report 2024	15

Introduction

History of theTOPPAN Group

TheTOPPAN Group's Value Creation

Management Strategies for Value Creation

Business Strategies for Value Creation

Initiatives to Support Sustainability Management

Corporate Governance

Company & Stock Information

TOPPAN's Purpose & Values

Vision of theTOPPAN Group

Technology Lineage

TheTOPPAN Group's Strengths

Value Creation Process

Materiality

and Management Capital

The TOPPAN Group's Strengths and Management Capital

Since its establishment in 1900, theTOPPAN Group has continued to move forward as an enduring venture business that constantly takes on new challenges by addressing the issues customers face, over the course of which it has cultivated its unique strengths.To realize our aim for digital and sustainable transformation, we will harness these strengths, continue to refine them, and contribute to a world in which diverse cultures can thrive.

Management Capital That Underpins Our Strengths

Financial capital

Human capital

Manufacturing capital

The TOPPAN Group's Strengths

• Implementing our three cash alloca-

tion policies of strengthening invest-

ment for sustainable growth,

advancing structural reforms, and

providing stable returns to

shareholders

• Reforming the human asset portfo-

lio and human resource systems by

analyzing discrepancies based on

the medium-term plan

• Promoting well-being management to

achieve a virtuous cycle in which we

• Establishing and implementing a

comprehensive quality assurance

system to continuously provide

high-quality products and services

as a company that supports social

infrastructure

Human assets

Technologies /

Solutions

Relationships

The spirit to ambitiously take on new challenges

The communication skills to earnestly address customer needs

The ability to develop solutions to various issues by applying technology and creativity The determination and perseverance to confront and resolve customers' issues

Five core technologies that are the source of innovation in our business activities and R&D

Diverse solutions created through the combination of proprietary technologies

An R&D system that continues to evolve technologies through cooperation between the technology development departments and the business divisions that serve as points of contact with customers

Relationships with more than 20,000 client companies developed through our years of sincere commitment to business activities

Relationships of trust with suppliers and subcontractors through which we have created a wide variety of products and services together

Industry-academia-government collaboration to co-create new value

• Maintaining a sound financial posi-

tion to support the implementation

of these policies

Related pages:

P.22	Message from the CFO
P.25	Progress of Medium-Term Plan

Intellectual capital

create social value through our busi-

ness and employees are able to gain

a sense of contributing to society

• Promoting diversity and inclusion

initiatives linked to management

strategies

Related pages:

P.30 Strengthening Our Foundation for Growth Strategies Human Asset Strategy

Social capital

• Placing the highest priority on safety

and security to ensure the safety

and health of employees at manu-

facturing sites

Related pages:

P.25	Progress of Medium-Term Plan
P.72	Social Initiatives: Occupational Safety and Health
P.73	Total Quality Assurance

Natural capital

Background to the Development of Our Unique Strengths

The TOPPAN Group was founded in 1900 as Toppan Printing and started out as a venture company that pursued new business with the Erhöht relief printing method, the most advanced printing method at that time. The "spirit of enterprise" embraced by the engineers who founded Toppan Printing still exists today as the TOPPAN Group's DNA.

Since its founding, the TOPPAN Group has always been a B2B company, earnestly addressing the diverse and complex needs and desires of its many customers that span a wide range of industries by incorporating, applying, and strengthening its technologies and know-how.

This unique business model has been underpinned by the Group's diverse human assets, who have the ability to incorporate, apply, and create technologies, demonstrate the determination and perseverance to continue confronting and finding solutions to customers' issues, and continue to be the source of value creation for the Group.

Throughout our history of more than 120 years, we have refined the printing skills that marked our origins into printing techniques, integrating and evolving them with a variety of knowledge, expertise, and technologies to establish a set of proprietary "printing technologies." These printing technologies-information processing, microfabrication, surface treatment, material forming, and marketing solutions- represent our five core technologies.

Information processing technologies include security technologies cultivated through the printing of stock certificates and banknotes and color management technologies used in the digitalization of text and image information and image processing. Microfabrication technologies were developed based on our expertise in metal processing techniques, which are essential for plate-making, such as etching (corrosion) and plating. Surface treatment technologies derived from the manufacturing process of packaging that wraps and protects products. Material forming technologies evolved into a variety of processing technologies, such as molding from resins in sheet form (vacuum molding and pressure molding) and printing on molded products, over the course of our involvement in the planning, development, and manufacturing of packaging materials. Marketing solutions technologies originated from the strengthening of our total solutions capabilities in marketing and creative areas to address consumer needs.

These core technologies were cultivated in the course of our business by incorporating our distinctive know-how and continue to generate new solutions to this day through their various combinations.

Our efforts alone are not enough to continue to provide a wide range of products and services. Over the years, the TOPPAN Group has been surrounded by many business partners that have worked alongside us to confront a variety of challenges and create new value. We have been able to provide a range of products and services tailored to each customer thanks to our suppliers, subcontractors, and other business partners that have supported us in various ways. We have also resolved new issues through the cooperation of universities and other companies as partners in value co-creation, who have helped us find a path to new solutions by sharing their knowledge.

Together with our partners, we have been earnestly addressing the issues and needs of customers for many years, through which we have earned their trust and expanded and strengthened our customer base. Today, the TOPPAN Group has an extensive customer base that includes businesses, financial institutions, educational institutions, government agencies, and municipalities, covering a broad spectrum of the market.

This wide range of contact points with customers and our degree of involvement are the reasons why we now have more than 20,000 client companies of various types and are supporting social infrastructure in all areas.

Our relationships with customers, business partners, and partners in value co-creation have become invaluable strengths of the TOPPAN Group.

16	Toppan Integrated Report 2024

• Creating new businesses by	• Developing relationships of trust	• Continuously promoting efforts to
integrating business, R&D, and IP	with various stakeholders through	address global environmental issues
strategies	ongoing engagement	over the long term based on the
• Allocating R&D resources to key	• Promoting sustainable procurement	TOPPAN Group Environmental
Vision 2050
investment fields and strengthening	activities throughout the supply
the development of specialist	chain	• Strengthening climate change and
personnel		biodiversity initiatives and disclosure

Related pages:	Related pages:		Related pages:
P.33	Strengthening Our Foundation for	P.72	Social Initiatives:	P.61	Environmental Conservation
	Growth Strategies		Supply Chain Management	Disclosure in Accordance with the TCFD
R&D and Intellectual Property Strategies				andTNFD Recommendations

Refining Our Strengths Even Further

The social issues that the TOPPAN Group must address	To that end, we will strengthen our activities for each
on a global scale in order to realize its aim for digital and	component of the management capital that underpins our
sustainable transformation are becoming increasingly	corporate activities and closely link them together with the
complex and serious. We must continue to refine our	aim of enhancing our corporate value.
strengths-­human assets, relationships, and technologies /
solutions-in order to resolve these issues.

Toppan Integrated Report 2024	17