TOPPAN INC. ■Overall performance and future strategy
Q: Why does the plan for the current year include a decrease in profit for the Information & Communication business?
A: We expect security-related business and marketing-related business, such as sales promotion, to continue growing. However, we are forecasting a drop in profit for the content- related business because, due to the cycle of when new textbooks are introduced, this year we cannot expect significant profits from the textbook business, which was strong last year.
Q: Amortization is forecast to increase significantly to 68 billion JPY. What's the reason for this?
A: This is mainly due to the impact of increased investment to improve production efficiency. The breakdown of where this increase will be allocated is 3.9 billion JPY for Information & Communication, 1.7 billion JPY for Living & Industry, and 1.5 billion JPY for Electronics.
■Information & Communication
Q: Can you tell us about Toppan's competitiveness in visual content in the Information & Communication segment?
A: For some time, we have been producing original high-quality 4K video content that presents the beauty of Japan. This high-quality video has been well received for use in promotional activities, and orders are on the rise. We are also involved in VR (virtual reality). The VR technologies that we have developed over many years are now employed for theaters, paintings, and a wide range of other purposes and are highly regarded in Japan and overseas. In addition to our high-definition visual content and cutting-edge expression technologies, we will make use of the technical and artistic skills of our in-house team of video camera operators to continue targeting new modes of expression.
■Living & Industry
Q: Could you tell us about the strategy for the integration of the décor materials business of subsidiary Toppan Cosmo?
A: From here on, growth is expected in new fields, including smart cities and residential mobility that enables more comfortable living. Integrating the development sections of Toppan Cosmo and Toppan Printing will enable us to speed up the development of highly functional materials with added functions such as light shielding and bacterial resistance to serve society's needs beyond housing-related materials. We also plan to target demand in the aforementioned new fields with a solution-based approach.
■Electronics
Q: Color filter demand is decreasing in line with trends such as reduced demand for smartphones. Could you tell us about your forecasts for demand and about the optimization of the production structure?
A: The display market continues to be a tough environment. Against this background, Toppan has reviewed its sales scheme for the large-scale color filter line and transformed the structure of its business to make it more resistant to market fluctuations. We are also in the process of reviewing operations, which has included the sale of a color filter subsidiary in Taiwan two years ago. We will continue to closely monitor market trends and respond appropriately to changes. We will also aim to secure profits by working with group company Toyo Ink on material sales and providing technical support to overseas manufacturers.
Toppan Printing Co. Ltd. published this content on 19 May 2016 and is solely responsible for the information contained herein.
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