Toppan : Transcript of Fiscal 2021 Half Year Results Briefing

Toppan Inc.

Fiscal 2021 Half Year Results Briefing

November 12, 2021

Event Summary

[Company Name]	Toppan Inc.
[Company ID]	7911-QCODE
[Event Language]	JPN
[Event Type]	Earnings Announcement
[Event Name]	Fiscal 2021 Half Year Results Briefing
[Fiscal Period]	FY2021 Q2
[Date]	November 12, 2021
[Number of Pages]	36
[Time]	15:30 - 16:06
	(Total: 36 minutes, Presentation: 36 minutes)
[Venue]	Dial-in
[Venue Size]
[Participants]
[Number of Speakers]	4
	Hideharu Maro	President & Representative Director
	Takashi Kurobe	Director & Managing Executive Officer,
		Finance & Accounting Division
	Kazunori Sakai	Director & Senior Managing Executive
		Officer, Overseeing Corporate Planning
		Division
	Tetsuro Ueki	Senior Managing Executive Officer,
		Electronics Division

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Presentation

Moderator: Hello, everyone. Thank you for participating in this conference call of Toppan Inc.

Today's attendees are Hideharu Maro, President & Representative Director; Tetsuro Ueki, Senior Managing Executive Officer in charge of the Electronics Division; Kazunori Sakai, Director and Senior Managing Executive Officer overseeing the Corporate Planning Division; and Takashi Kurobe, Director and Managing Executive Officer in charge of the Finance and Accounting Division.

Today, Mr. Kurobe, head of the Finance Division, will first explain the financial results and full-year forecast for the fiscal year ending March 31, 2022. Next, President Maro will explain the initiatives of the Medium Term Plan. The explanatory materials are available on the website.

Before we begin the conference call, please let us point out that this presentation may contain forward- looking statements based on current expectations, all of which are subject to risks and uncertainties. Please be aware that the actual results may differ from the forecast.

Thank you very much for your patience. First, Mr. Kurobe will provide an overview of the financial results and the full-year forecast.

Kurobe: I'm Kurobe from the Finance Division. Thank you very much for participating in our financial results briefing today. I will now explain our business results for the second quarter and the outlook for the full year.

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Please look at page 4.

For the first half of the fiscal year ending March 31, 2022, the Company's consolidated net sales increased 4.8% YoY to JPY719,027 million, operating profit increased 59.2% YoY to JPY24,093 million, ordinary profit increased 99% YoY to JPY26,233 million, and profit attributable to owners of parent increased 242.7% YoY to JPY19,447 million.

The sales figures include the impact of a JPY7,700 million decrease in sales due to the change in revenue recognition standards from the fiscal year ending March 2022. Excluding this impact, sales would have increased JPY40,700 million, or 4.9% YoY.

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Please refer to page 5.

In terms of net sales, there was an increase in digital content and digital marketing, taking advantage of expanding non-face-to-face interaction and digitalization, and an increase in BPO due to winning projects related to economic stimulus measures, as well as an expansion of packaging overseas and growth in decor materials in Japan and overseas.

In addition, overall sales increased because of increases in each segment, including increases in semiconductor-related products such as photomasks and FC-BGA substrates, and TFT LCDs.

Operating profit increased overall, despite the impact of higher prices for petrochemical materials in Japan and overseas. But profits increased mainly in digital, or Erhoeht-X, decor materials, and semiconductor- related products, as well as improved profitability in TFT LCDs as a result of market recovery and structural reforms.

Ordinary profit increased due to the increase in operating profit and the recording of foreign exchange losses in the previous fiscal year and foreign exchange gains in the current fiscal year.

Profit attributable to owners of parent increased, mainly due to the recording of a gain on sales of investment securities as a result of the reduction of shares held for strategic purposes.

In addition, we completed the repurchase of JPY20,000 million of our own shares between December and September last year.

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