A N N U A L R E P O R T 1 9 9 9

A N N U A L
R E P O R T
1 9 9 9
Toppan’s Resources for Change

Profile
Since its founding in 1900, Toppan
Printing Co., Ltd., has achieved
noteworthy growth and become a
leader in Japan‘s printing industry.
Today, the Company‘s operations
extend over a wide range of fields,
including securities and cards,
commercial printing, publications
printing, packaging, industrial
materials, electronics, business
forms, and multimedia.
The use of digital and
communications technologies
continues to register dramatic
growth. Accordingly, Toppan is
working to take advantage of new
opportunities in the printing
business by maintaining a strong
focus on technical innovation, such
as the incorporation of leading-edge
technological advances into its
original printing technologies. The
expanding range of multimedia
technologies and the advance of
desktop publishing are having an
especially significant impact on the
printing industry. Toppan has
already established positions of
leadership in these fields, resulting
in a wealth of new business
opportunities for the Company.
Toppan is committed to
building on its traditional strengths
as a printing company to expand
into a wider range of operations as
an information and communications
company that is a leader in the
integration of printing and media.
The year 2000 will mark the 100th
anniversary of the establishment of
Toppan, and we are looking forward
to this milestone as a symbolic
“refounding” of the Company. In
the years ahead, Toppan will
continue to accept the challenges of
recording dynamic growth and
enhancing value for customers.
Financial Highlights 1
To Our Shareholders 2
Toppan’s Resources for Change 5
Toppan’s Environmental Activities 12
Eco-Protection 12
Eco-Creativity 13
Review of Operations 14
Securities and Cards 15
Commercial Printing 15
Publications Printing 16
Packaging 16
Industrial Materials 17
Electronics 17
Business Forms 18
Note to Review of Operations 18
Financial Section 19
Management’s Discussion and Analysis 20
Consolidated Five-Year Financial Summary 23
Consolidated Financial Statements
and Notes 24
Report of Independent Public Accountants 36
Corporate Data 37
Board of Directors and Auditors 38
Consolidated Subsidiaries and Affiliates 40
Overseas Network 42
Corporate Information 44

FINANCIAL HIGHLIGHTS
Toppan Printing Co., Ltd. and Subsidiaries
Years ended March 31, 1997, 1998 and 1999
Millions of yen
Thousands of dollars*
1997 1998 1999 1999 % Change
For the year:
Net sales ¥1,274,339 ¥1,284,145 ¥1,223,439 $10,111,066 -4.7
Operating income 88,142 94,325 65,217 538,983 -30.9
Income before income taxes 69,792 105,714 57,515 475,331 -45.6
Net income 21,621 47,381 26,700 220,661 -43.6
Per share of common stock (yen/dollars):
Net income ¥30.25 ¥65.50 ¥37.29 $0.31 -43.1
Cash dividends 14.00 15.00 15.00 0.12 0.0
Capital expenditures 83,104 123,515 93,513 772,835 -24.3
Depreciation and amortization 53,724 57,824 60,274 498,132 4.2
At year-end:
Total assets ¥1,151,883 ¥1,300,649 ¥1,267,357 $10,474,025 -2.6
Shareholders’ investment 612,265 667,464 683,906 5,652,116 2.5
Working capital 179,412 249,160 233,420 1,929,091 -6.3
Long-term indebtedness 64,279 113,050 114,242 944,149 1.1
* U.S. dollar amounts are translated from yen at the rate of ¥121=U.S.$1, as at March 31, 1999.
Note 1: The consolidated results for the year ended March 31, 1997, reflect the ¥9,015 million ($74,504 thousand) write-off pertaining to the acquisitions of Toppan Moore Co., Ltd.’s
and Avery Toppan Co., Ltd.’s goodwill.
Note 2: The consolidated results for the year ended March 31, 1998, reflect the ¥20,868 million ($172,463 thousand) gain on sale of investment in Toppan Forms Co., Ltd.
(Toppan Moore Co., Ltd. changed its name to Toppan Forms Co., Ltd. on April 1, 1997.)
NET SALES
(Billion ¥)
NET INCOME
(Billion ¥)
SHAREHOLDERS’
INVESTMENT
(Billion ¥)
1,500
50
700
1,200
40
600
500
900
30
400
600
20
300
200
300
10
100
0
’95 ’96 ’97 ’98 ’99
0
’95 ’96 ’97 ’98 ’99
0
’95 ’96 ’97 ’98 ’99
1

cost-cutting, reduced capital investment,
and the consolidation of
subsidiaries in Japan and overseas.
Despite these efforts, we were unable
to completely offset the adverse
effects of the difficult operating environment.
TO OUR SHAREHOLDERS
D Net sales declined 4.7 percent in
the year under review, to ¥1,223.4 billion
(US$10,111.1 million).
During the fiscal year ended March
31, 1999, Toppan recorded declines in
sales and profits. The current conditions
in Japan’s printing industry are
the worst in decades, with demand
weak and price competition intensifying.
In this setting, Toppan is using its
marketing capabilities, which draw
upon a strong customer base, and its
advanced technological development
capabilities to maintain a solid position
as an industry leader. At the
same time, we are taking steps to
make a rapid transition to a new
operational structure suitable for market
conditions in the 21st century.
During the past fiscal year, we
strived to improve our performance in
printing through Companywide marketing
activities targeting the creation
of new demand. We also worked to
facilitate a smooth transition to a
future-oriented profit structure
through the aggressive development
and marketing of multimedia
products as well as focused investment
in electronics-related
operations. Furthermore, we implemented
a range of restructuring measures,
with a focus on laborsaving,
D Net income was down 43.6 percent,
to ¥26.7 billion (US$220.7 million).
A significant portion of this
decrease was attributable to a gain of
¥20.9 billion that was recorded in the
previous fiscal year on the sale of
shares of a subsidiary, Toppan Forms
Co., Ltd.
D Net income per share was ¥37.29
(US$0.31), compared with ¥65.50 in
the previous year.
D Return on equity (ROE) was 4.0%,
compared with 7.4% in the previous
year.
D Total ordinary dividends for the
year under review were ¥15.00
(US$0.12) per share. In the previous
year, total ordinary dividends were
¥14.00 per share, and special dividends
of ¥1.00 per share were
declared in commemoration of the
stock exchange listing of subsidiary
Toppan Forms.
2

Toppan is working to establish
a foundation for growth
through strategic investment
in the field of electronics.
Toppan makes a range of electronicsrelated
products that draw on the
photomechanical technologies developed
in its printing operations. These products
are more than just a major field of business
for the Company; they will play a key
role in Toppan’s future growth.
new line for the production of large-size
glass plates at our Niigata plant. For
high-definition shadow masks, to further
raise precision and increase production
capacity, we plan to conduct significant
capital investment at our Kumamoto
plant. In the two-year period ended
March 31, 1999, the Toppan Group’s
capital investment totaled about ¥200
billion, of which about 30% was allocated
to the electronics field.
Hiromichi Fujita, President
Consequently, Toppan continues
to invest aggressively in products for
which demand is expected to expand,
such as color filters for liquid crystal displays
(LCDs), high-definition shadow
masks for personal computer monitors,
high-precision photomasks used in the
production of semiconductors, new
types of semiconductor packages, and
back modules for plasma displays.
Through this investment, we are aiming
to significantly increase production
capacity and foster technological innovation.
For color filters, for example, we
have responded to the trend toward
larger LCDs with the installation of a
We are working to enhance
value for shareholders and
customers by facilitating the
transition to an information
and communications company.
On the eve of a new century, the business
environment for Toppan and other
members of the printing industry is
undergoing significant change. Key
trends include the rapidly growing use
of digital technology at the prepress
stage; the advance of multimedia,
as seen in the spread of the Internet
and the appearance of DVD and other
new media technologies; and the
growing sensitivity to environmental
conservation issues. Therefore, we are
3

placing an especially high priority on
multimedia-related operations. We have
launched our own channel on Sky PerfecTV,
which offers digital multiple channel
broadcasts through a communications
satellite. In addition to businesses that
we started on our own, we are also pursuing
a variety of businesses through
strategic tie-ups with companies that
possess special expertise and technologies
in the field of multimedia.
Furthermore, we are using our
strong customer base to create new
businesses. For example, we have established
the Solution Center to provide
solutions to customers’ problems
through the use of digital database
and network technologies.
Thus, the operations of Toppan
and other Group companies are making
a rapid transition from work centered on
the production of printed materials to
the work of information- and communications-related
businesses. Rather than
merely responding to orders from customers,
we have been shifting to a marketing
approach that targets the
fostering of new demand. Accordingly,
we will make full use of our existing customer
base as we strengthen our competitiveness
in the marketplace.
Toppan recognizes the Year
2000 (Y2K) issue as a critical management
issue. We have established an
internal system for handling Y2K-related
activities, and thorough preparations are
under way.
Toppan is committed to being a
company that can achieve significant
growth in the 21st century. Guided by
our strategic focus on “making the transition
from a printing company to an
information and communications company,”
we will continue striving to
improve our performance while doing
our utmost to enhance value for our
shareholders and customers.
August 1999
Hiromichi Fujita, President
4

With only one year remaining until
the Company’s 100th anniversary,
everyone at Toppan is actively
working to achieve the goal of a
“New Toppan” in the new century.
Although we have built a solid position
as a leader in Japan’s printing
industry, we cannot rest on the laurels
of our past accomplishments.
We anticipate dramatic changes in
our operating environment, and,
accordingly, we are seeking to
Toppan’s Resources for Change
reform our organization and profit
structure. That process involves
systematic, step-by-step growth
to become an information and
communications company that
draws on our advanced printing
technologies as a core strength.
As Toppan strives to transform
itself for the future while
responding to the numerous challenges
that it faces in the present,
the Company’s prospects rest on its
resources in three key fields—printing,
multimedia, and electronics.

Printing: A Strong
Competitive Edge
The printing industry in Japan,
which has achieved steady growth
throughout this century, is now
facing a period of dramatic change.
As the market matures, printing
companies are being called on to
enhance value in ways that transcend
traditional printing technologies.
Moreover, due to the
lengthening economic slump in
Japan, demand is sluggish and
price competition is intense. For
Toppan, the keys to surviving in
the printing industry in the 21st
century will be the Company’s fundamental
approach to the printing
business—a strong customer-first
orientation and advanced information
capabilities.

?
Japan’s printing industry has already
entered a period characterized by highly
mature markets. What will Toppan—one
of Japan’s leading printing companies—do
to ensure continued growth in its core
business of printing?
Since Toppan’s establishment, superior
printing technology has been the foundation
of the Company’s operations. Today,
we are making full use of the know-how
acquired over many years of success in the
printing industry throughout our wideranging
fields of business, which extend to
securities and cards, commercial printing,
publications printing, packaging, industrial
materials, electronics, business forms, and multimedia.
Demand for printing, Toppan’s core business, is currently
weakening due to the lengthening economic slump in
Japan and to the maturity of the market. Toppan has a large
share of the domestic market, and to survive the intense price
competition that is currently affecting the printing industry the
Company is emphasizing a customer-first orientation and
advanced information capabilities.
To meet diverse customer needs, we will focus on the
fundamentals of the printing business—providing high-quality
printed materials in a short turnaround time and at a reasonable
cost. In this light, we will emphasize our customer-first policy in
all departments throughout the Company, including marketing,
manufacturing, administration,
technology, and research. This
policy is linked to the strategy
of further heightening our
customer orientation in the
printing business around a core
of advanced information capabilities.
In commercial printing,
we responded to growing
demand for personalized marketing with the establishment
of a new line for the production of catalogs at our
Sakado plant in Saitama Prefecture. Toppan is using this
facility in conjunction with the Integrated Database
Marketing System that it has developed in-house to meet
diversifying customer needs. In addition, we opened the
Digital Prepress Center in Tokyo as a base for responding to
the increasing use of digitization in publication printing
markets, where demand for shorter delivery times and
lower costs continues to strengthen.
Toppan’s commitment to the environment
extends throughout the Company. In our packaging
operations, we have developed a lineup of environmentally
friendly products, centered on food packaging
applications. This lineup includes recyclable
products and products that do not release harmful gases
when incinerated. In industrial materials, meanwhile, we
have developed non-polyvinyl-chloride (non-PVC) interior
materials and formalin-free decorative boards. In the area of
sophisticated, high-value-added printing-related products, we
!
are developing advanced IC cards and comprehensive systems
to meet rapidly expanding security needs in the securities and
cards field.
Overseas, we relocated our publications printing
operations from a now closed Singapore subsidiary to Hong
Kong and Shenzhen, China. In the future, we will further
strengthen these plants in line with their roles as important
production bases in Asia.
Progress in Printing
Personalized catalog production
plant opened
During the past fiscal year,
Toppan opened a line for the
production of personalized catalogs.
The new line will be used
in tandem with our database marketing
operations, which are already showing favorable
results. Built at a cost of ¥14.0 billion on
the site of our Sakado plant in Saitama
Prefecture, the new facility features high-speed
digital networks and the latest laborsaving and factory automation
systems. There is strong demand in the market for personalized
marketing services, especially in the Tokyo metropolitan area.
In order to bolster our ability to meet that demand, we built this
new line, which is Japan’s first full-fledged selective system line for
the printing, binding, and enclosure of catalogs that are personalized
in accordance with the preferences of individual customers.
Mass production of the world’s first hybrid IC cards
In response to demand for IC cards that combine the advantages
of contact and non-contact cards, Toppan has built facilities
for the full-scale mass production of hybrid IC cards that
are about the size of a credit card and can be embossed. These
new production facilities have enhanced Toppan’s ability to
meet demand in such areas as electronic payment systems and
multipurpose IC cards.
Toppan GL Film in North America
and Europe
Toppan has signed an exclusive sales
contract for GL Film, a transparent
high barrier film, with Huntsman
Packaging Corporation, of the United
States. The agreement, which covers
Canada, the United States, and Mexico, will lead to expanded
sales of this film for use in applications that require excellent
barrier properties, such as confectioneries, processed foods,
toiletries, medicines, and precision electronic components.
Meanwhile, to expand sales in Europe, we have
entered into a tie-up with a company based in Milan.
7

Multimedia: A
Driving Force for
Future Growth
As a leader in the printing industry,
Toppan began working with
technology for digitizing text and
graphics at an early stage. In the
1970s, we became the first company
in Japan to develop a computerized
typesetting system (CTS),
and we subsequently developed
a system for graphics digitization.
Toppan moved quickly to meet
emerging needs for the digitization
of printing, such as DTP. To
accelerate the development of our
ability to meet multimedia-related
needs, we have started various
new multimedia businesses and
entered into tie-ups with leading
multimedia companies.

?
A large number of companies offer “multimedia”
as a key part of their strategies
for future growth, but such references to
multimedia are often quite ambiguous.
In what way will Toppan realize the
potential of multimedia?
The broad scope of Toppan’s multimedia
operations extends to related
products, the Company’s customer base,
and partnerships with a diverse range of
companies. In printing and related technologies,
the use of digitization technologies
at the prepress stage is playing an
important role in the reduction of costs
and the provision of shorter turnaround
times. The percentage of products processed by desktop publishing
(DTP) grows each year, and we have steadily reinforced
our ability to respond to that trend. For example, Toppan
moved quickly to promote the shift to the computer-to-plate
(CTP) method through the introduction of direct digital color
proofs (DDCPs). Our success in responding to demand for the
digitization of these types of printed materials has enabled our
smooth transition to multimedia-related activities, including content
creation for CD-ROMs, DVD-ROMs, and the Internet as well
as system development.
Currently, in
fields centered on paperbased
printed products—
commercial
printing and
publications
!
printing—and
in high-technology
fields where
“Maja clothed” by Goya Y Lucientes
(Photo by Joseph Martin)
security systems are required, such as securities and
cards, Toppan is working to respond appropriately to
emerging market trends. At the same time, we are making
rapid progress with the creation of new business
opportunities that transcend the boundaries of
traditional fields. Our multimedia operations, which we
started in April 1996, are the center of these activities.
In multimedia, Toppan is utilizing content creation
expertise and tie-ups with leading multimedia companies
to take advantage of emerging opportunities.
During the year under review, we launched a channel
on Sky PerfecTV—a communications satellite based digital
broadcast service—and we have begun independent
production of programming content and sales of secondary
usage. Also, in conjunction with Hitachi and
Asahi Shimbun, we formed a digital image rights service
company, Image Mall Japan Co., Ltd., and began
the digitization of national treasures and important
cultural assets in the collection of the Tokugawa Museum, as
well as other works of art. We are now marketing these images
over the Internet. Furthermore, in cooperation with such
companies as NTT, Dentsu, Yahoo Japan, and Sharp, we
established CyberMap Japan Corp. which offers an Internetbased
map service, called Mapion. During the year under
review, we also worked with Toshiba and Dentsu to launch
FreshEye, an Internet portal. In addition, in April 1999, we
established the Solution Center, which solves the problems of
customers through the application of digital technologies centered
on our database and network technologies. The center is
contributing to our ability to strengthen relationships with
existing customers in a wide range of fields. These are just a
few examples of how Toppan’s multimedia-related operations
are achieving broad-based growth while becoming a driving
force toward the steady development of our new operational
structure.
Progress in Multimedia
Advanced Virtual Reality
Laboratory opened
Toppan is making rapid progress
with digital content operations,
centered on the development and
production of full-fledged virtual
reality products. In addition to the
high-precision image processing, color management, and
VRML (Virtual Reality Modeling Language) technologies that
we have cultivated over many years, we have succeeded in the
development of real-time 3-D computer graphics technology.
In April 1998, we established the Virtual Reality Laboratory as a
development and production base. The laboratory has a system
that uses three projectors to display 3-D images on a
large-scale spherical screen with a 150-degree lateral field of
view and a 40-degree vertical field of view. Toppan will use
these facilities to provide large-scale virtual reality content creation
for museums and corporate showrooms.
Channel opened on
Sky PerfecTV
The Company initiated broadcast
operations with the launch of a
channel on Sky PerfecTV. Based on
the performance of NHK and other
satellite broadcasting ventures in
Japan, we decided to focus the
programming on high-quality documentaries. Furthermore, we
also offer original programming, such as lifestyle information
programs. In June 1999, we announced the new name
J Document 750, under which we will move ahead with the
production and management of programs that reflect a
stronger emphasis on documentary content.
9

Electronics: A Key
to Renewed
Profitability
Toppan’s electronic components
operations extend back to the
1950s, when the Company used
advanced photomechanical technologies
acquired through
accumlated know-how of prepress
to develop highly precise
patterns with features measured
in microns. Today, we produce a
range of key devices for leadingedge
electronic products. These
include photo-masks, which are
indispensable in the production of
semiconductors; color filters, an
essential component of the color
LCDs that are used in notebook
computers; and shadow masks,
which are used in high-resolution
cathode-ray tubes (CRTs) for
color computer monitors. We
have thus secured leading positions
in international markets for
these products.

?
Electronics operations already account for
nearly 15% of Toppan’s net sales. What role
will electronic components and products
used in the manufacturing of semiconductor
devices play in Toppan’s future growth and
development?
In electronics, we are striving to
further develop such promising
products as photomasks for semiconductor
production, leadframes for
back-end semiconductor processing,
printed wiring boards, and CRT
shadow masks. In addition, we are
working to create demand for highpotential
products, such as CCD onchip
color filters and the BGA (ball
grid array), a new semiconductor package. Due to the large
scale of the market for electronic components and the growth
in demand accompanying the rapid spread of personal computers,
the potential demand for Toppan’s electronics-related
products is significant.
In recent years, the adoption of larger screen sizes on
notebook computers and the growing use of LCDs on desktop
computers have fueled a trend toward larger-sized color filters.
To meet that need, we have expanded our production lines
and heightened our ability to generate large-sized, high-resolution
masters. As a result, Toppan is able to offer the highestquality
color filters in the industry. Moreover, we have the
capability to mass-produce these products using a
high-purity color resist that has become an industry
standard.
In the semiconductor industry, recent
years have seen larger-scale integration and faster
devices. As a result, demand is growing for photomasks,
the masters for semiconductors, that have
much finer circuits and higher data capacities. In
response, Toppan is offering a stable supply of photomasks
for the key 64-megabit DRAMs, and it is making
steady progress with the trial
production of photomasks for
256-megabit and 1-gigabit
DRAMs.
One of Toppan’s goals is
to raise the percentage of its net
sales accounted for by electronics
operations from the current figure
of almost 15% to 20% by
2000. To that end, approximately
30% of the Groupwide
total capital investment of
¥100.0 billion in the year ended March 1998 was allocated
to the electronics field. Consequently, we have
increased production capacity, quality, and production volume
for semiconductor photomasks and CRT shadow masks, and
this investment is already showing positive results during the
first half of the current fiscal year.
!
In the years ahead, Toppan plans to invest aggressively
in expanding its electronics-related facilities. In anticipation of
growth in the use of LCDs, we are seeking to further increase
yields, maintain acceptable equipment utilization rates, and
reduce the time required to change plates for each product in
order to rapidly strengthen our competitiveness and bolster
our production structure.
Progress in Electronics
New production line completed for large color filters
In the year under review, Toppan opened a state-of-the-art
production line at its Niigata plant, a manufacturing base for
printed wiring boards and for color filters used in LCDs. The
new line, which will be used for the production of color filters
for large-screen LCDs, is compatible with large-size glass
plates—up to 650 mm by 750 mm—and has a monthly
production capacity of more than 300,000 units (calculated
in terms of 14-inch units). Because the
new line is highly automated, it offers
high productivity and advanced laborsaving
functions, as well as the cleanest
manufacturing capabilities in the
domestic industry. It showcases the
expertise that we have acquired
through the operation of our 555 mm
by 650 mm substrate line. The start-up
of the new line has increased Toppan’s
total monthly color filter production capacity to more than 1.1
million units (calculated in terms of 12-inch units).
Electronics marketing and sales base opened in Singapore
In November 1998, Toppan established a marketing and sales
base in Singapore, where significant growth is expected in the
electronic components supply business. The new office is
engaged in sales and related activities for electronic components,
as well as general import and export operations. Asian
manufacturers of electronic components are expected to post
strong growth in the years ahead, with the market for leadframes,
photomask blanks, and shadow masks in Singapore
and neighboring countries being especially large. Accordingly,
we decided that we needed to have a marketing base with
close ties to local customers. In the future, we will work to
make full use of our precision component manufacturing base
in Taiwan and expand sales of electronic components in Asia.
11

Toppan’s Environmental
Activities
On the eve of the 21st century, environmental
issues have become an urgent
matter on a global scale. Toppan recognized
the importance of environmental
conservation activities at an early stage
and has taken an active approach to
dealing with these issues. We are committed
to following a multifaceted
approach to environmental problems,
and under the leadership of the Ecology
Center, which has Companywide
responsibility for environmental issues,
we are carrying out environmental activities
in accordance with the Toppan
Global Environmental Declaration,
which outlines our fundamental philosophy.
These activities can be broadly
categorized into “Eco-Protection:
environmental conservation activities at
Eco-
Protection
The term Eco-Protection refers to all environmental
conservation activities at Toppan’s
manufacturing sites. We are striving to lessen
the environmental impact of all our manufacturing
activities through such measures as
ensuring appropriate control of chemicals, reducing the use
of harmful chemicals, and adopting CFC-alternatives and
reducing emissions of carbon dioxide. In addition, we
endeavor to protect the environment through
Companywide initiatives, such as energy-saving, resource
conservation, and the sorting and recycling of industrial
waste. These activities include the recycling of office paper and the construction of
office buildings that incorporate systems for reusing rainwater.
1. Pollution prevention
At the Toppan Group’s 50 domestic and 7 overseas plants, environmental
activities are devised by Eco-Protection Committees. We conduct annual internal
environmental audits based on our own standards, which are more rigorous than
regulatory requirements, and these audits play an important role in meeting
environmental goals.
2. Industrial waste control
We have set the goal of reducing non-recyclable waste generated by our
operations in the year ending March 2000 to 50% of the level in the year ended
March 1990. To achieve that target, we are endeavoring to reduce industrial
waste. Our long-term goal is for “zero waste.”
3. Energy-saving
Toppan seeks to restrict emissions of carbon dioxide, a so-called greenhouse gas.
Our goal is to reduce our use of electricity and heat to 20% of 1990 levels by
2005.
manufacturing sites” and “Eco-Creativity:
development of environmentally friendly
products.” In these two areas, Toppan is
taking aggressive measures Companywide
to protect the environment.
A portion of Cartocan sales donated to
reforestation projects in Indonesia
Toppan is donating a percentage of the
sales of Cartocan paper drink containers
to a reforestation fund coordinated by the
Japan Ecology Foundation. These funds will
be used to support a tree planting project
in Indonesia, where extensive areas of tropical
rain forest were lost in spring 1998
through widespread fires. Twice a year,
Toppan and beverage companies that use
Cartocan will donate a percentage of
Cartocan sales to the reforestation fund.
In the past fiscal year, the first year of this
program, 60 hectares of margosa and
mahogany were planted.
Toppan Green Paper 100 Series
Toppan has developed a 100% recycled
paper that is suitable for use in a wide
range of high-quality commercial printed
12

Eco-
Creativity
To enable us to fulfill our responsibilities
in the areas of both business and environmental
conservation, we have established
Eco-Creative Networks in each of our
fields of business. Through these networks,
Toppan carries out a wide range of
activities, including support for customers
in environmental conservation areas, the research and development of environmentally
friendly products, participation in environmental conservation related events,
and eco-business development activities.
1. Research and development of environmentally friendly products
Areas of focus in our research efforts include the recyclability of printed products
and the environmental impact of waste processing, as well as the development of
environmentally friendly products. In particular, in the field of packaging, we have
evaluated environmental impact assessment methods and created a Life Cycle
Assessment (LCA) system for use in product development.
2. Afforestation operations
In January 1997, in conjunction with Oji Paper Co., Ltd., and Nissho Iwai Corporation,
we established a joint venture company for the purpose of planting trees in
Australia. Our initial target is to complete the planting of 10,000 hectares with fastgrowing
eucalyptus and other broad-leaved trees by 2007. These efforts will contribute
to global environmental improvement by ensuring future resources and
facilitating carbon dioxide fixation.
3. “Green” procurement
In 1992, Toppan began using recycled paper in a wide range of applications,
including copier paper, business cards, and newsletters, and also began to install
energy-saving office equipment. In January 1999, we introduced throughout the
Company a “green” procurement system for office supplies. We are now planning
to introduce a similar system for production materials in the near future.
materials, such as catalogs and pamphlets.
We began introducing this new product to
customers in February 1999, and the initial
response has been very favorable. Recent
years have seen a strong trend toward the
increased use of recycled paper in corporate
and government publications, and
demand for recycled paper continues to
rise steadily. As a printing company that
uses a large volume of paper, we felt that
the development of 100% recycled paper
suitable for commercial printing applications
would be an important part
of our contribution to the establishment
of a recycling-oriented society. Working
together with a paper manufacturer, we
developed this series of ecologically oriented
products. We will aggressively promote
the use of these products, and our goal is
for the Toppan Green Paper 100 Series to
account for 40% of the paper we use by
2001.
History of Toppan’s
Environmental Activities
1960
D Introduced organic solvent collection
equipment
1971
D Established the Environmental
Control Department at the Head
Office and subsequently opened an
Environmental Coordination Office
at every domestic plant
D Began environmental auditing
activities
1991
D Established the Ecology Center at
the Head Office
D Reorganized nationwide environmental
management structure and
system
D Established the Environmental
Research Group in the Technical
Research Institute
1992
D Formulated the Toppan Global
Environmental Declaration
D Founded the in-house Ecology
Award program
1993
D Established the Toppan Global
Environmental Voluntary Plan, a
basic activity plan
1994
D Completely eliminated the use of
designated chlorofluorocarbons
(CFCs) and trichloroethylene
1996
D Received the Fuji Sankei Group
Award at the Earth Environment
Awards
D Joined the Green Purchasing
Network
1997
D Introduced an environmental system
conforming to ISO 14001 standards
at every plant
1998
D Introduced an original LCA system
for the development of packaging
products
D Received ISO 14001 certification
at the Shiga and Kumamoto plants
D Issued Fiscal 1998 Environmental
Report
1999
D Launched the Toppan Green
Paper 100 Series,100 percent recycled
paper
D Began donating a percentage of
Cartocan sales to a reforestation project
in Indonesia
13

The Toppan Group’s operations are
organized into seven business fields:
securities and cards, commercial
Securities and Cards
printing, publications printing,
packaging, industrial materials,
electronics, and business forms.
Commercial Printing
As a result of sluggish printing markets
caused by weak demand and
of declining prices, business forms
was the only field in which the
Publications Printing
Company was able to record an
improved performance during the
Review of Operations
fiscal year under review. In this
difficult operating environment,
Toppan implemented forward-looking
measures to build a foundation
Packaging
for future growth. Electronics and
multimedia, key fields of emphasis
for the Company in recent years,
were the focus of aggressive capital
Industrial Materials
investment and increased staffing
during the year. We also worked to
Electronics
implement business reform measures
and reduce costs throughout
the Company.
Business Forms

Securities and
Cards
In this field, Toppan
boasts a significant
share of domestic markets
for a wide range of
securities and cards.
We have used our
sophisticated securities printing and security technologies to
become the leading supplier of negotiable securities, such as
stock certificates, bonds, and passbooks, as well as of a broad
variety of cards, including credit, cash, prepaid and other magnetic
cards, and IC cards.
During the year under review, Toppan‘s sales in this field
declined 0.9%, to ¥50.2 billion (US$414.9 million). The principal
reasons for this decrease were a significant slump in demand
for game cards as well as reduced demand for established
products, such as passbooks, due to the sluggish economic conditions.
Orders for IC card related products rose, however, due
primarily to a significant increase in replacement demand associated
with the Y2K problem. Furthermore, our MP-300G passport
printer, which offers the most advanced security, efficiency,
and rapid processing, was adopted for use by the U.S. government,
garnering significant attention in Japan and overseas.
In response to the needs of the financial and other industries
for greater operational efficiency and enhanced marketing
support, Toppan plans to bolster its data processing services,
which are offered to customers on an outsourcing basis. During
the past year, to secure a leading position in the domestic market
for IC cards and augment our presence in overseas markets
for these products, we established a joint venture in the United
Kingdom with Toshiba and a U.K. corporation. In Europe,
which leads the world in the testing of electronic money,
a market for IC cards has already
taken shape, and significant
increases in demand are anticipated
in the years ahead. We
also plan to use the know-how
acquired in Europe to guide our
operational development in
Japan. Meanwhile, in the North
American and Asian markets, our
resources will be targeted at further
market development based
on the sales results of PET cards.
The key phrase of Toppan‘s
operations in the securities and
cards field is secure communications.
By developing software and
media to solve customers’ problems
and by proposing comprehensive
solutions that extend
from systems to tools, we will
develop market opportunities
and expand our sales.
60
40
20
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
Commercial
Printing
In commercial printing,
Toppan maintains a
strong customer base
that spans a wide
range of industries. In
this field, the Company
produces printed materials that are used by corporations in their
advertising and promotional activities, such as catalogs, pamphlets,
flyers, posters, and calendars. We also plan and produce
multimedia-related products, including content creation for CD-
ROMs and web sites and the development of related systems.
Although Toppan implemented aggressive marketing
activities during the year under review, sales decreased 5.7%,
to ¥291.5 billion (US$2,409.1 million). This decrease was principally
a result of declining demand for corporate advertising
and promotional work due to slumping consumption in Japan.
Competition for orders was intense, and consequently our
orders we received for flyers, pamphlets, and mail order catalogs
were down.
While orders from the beverage industry for direct mail
materials, pamphlets, catalogs, and point-of-purchase (POP)
materials increased thanks to major sales promotional campaigns,
orders declined for PR materials as well as for flyers,
catalogs, and calendars for the retail industry. Orders were also
favorable for commemorative corporate history books as well
as for annual reports and other disclosure-related materials.
During the past fiscal year, Toppan continued working to
expand demand for its commercial printing operations by providing
a comprehensive range of support for the marketing
activities of its customers. In response to rising demand for
personalized marketing in a range of industries, we made further
progress in building our Integrated Database Marketing
System. In October 1998, we began operations at a new line
at our Sakado plant in Saitama Prefecture. This line can handle
catalog binding, selection of order sheets and pamphlets, and
enclosure in accordance with the specific needs of individual
customers.
The Sakado plant is also the site of the industry’s most
sophisticated factory automation facilities and quality control
system, which we installed during the year under review. These
facilities offer full digital operation from prepress to platemaking
and cover everything from roll paper supply to packing and
shipping. Consequently, they enable us to offer a stable supply
of high-quality products, shorter delivery times, and reduced
costs due to laborsaving efficiencies.
To meet growing needs for international services, we offer
international data transfer systems that operate through our
database center. These systems have resulted in shorter delivery
times and reduced costs in the production of mail order,
office supply, and parts catalogs, and they have been highly
evaluated by our customers.
Toppan continues to take a
wide-ranging approach to the
pursuit of emerging opportunities
in commercial printing. To
meet growing demand for environmentally
friendly products,
we are building a system that
offers environmentally friendly
sales promotional materials,
strengthening our support for
the production of environmental
reports, bolstering our development
of products and services
for the multimedia age, and augmenting
our response to the
growing use of digital technologies
in the production processes
for printed materials.
320
240
160
80
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
15

Publications
Printing
Toppan has a wealth
of experience in printing
a variety of publications,
including
weekly and monthly
magazines, trade
books, art books, and dictionaries.
During the year under review, Toppan‘s sales in the publications
printing field declined 6.7%, to ¥181.5 billion
(US$1,500.0 million). The lengthening slump in domestic consumption
has directly affected the publishing industry, and the
numbers of books and magazines printed are declining. The
return rate for books was at a record high level during the year,
while the number of magazines printed was down because the
magazine return rate had set a record high in the previous
year. During the year under review, 169 new magazines were
launched, 10 less than in the previous year, while 148 were discontinued,
14 more than the year before. To offset the sluggish
sales of existing magazines, we increased the printing of nonperiodical
publications. However, due to the economic slump,
spending on magazine advertising and printing volumes both
decreased, leading to a decline in the total number of pages
printed. In addition to the slump, significant market trends
included the continued diversification of publication and sales
channels. Overall, there were signs of structural changes in the
publishing industry, indicating a turning point in the market.
In response to these changes, Toppan is implementing marketing
activities targeting publishers and bookstores. These
activities include providing support for publishing operations
by making proposals to publishing companies from the planning
stage, as well as providing comprehensive support
through the delivery stage. To achieve shorter turnaround
times and reduced costs, in July 1998 we opened new digital
prepress facilities in our Tokyo plant, significantly enhancing
our ability to respond to advances in DTP.
Meanwhile, in multimedia, we are making the most of our
market position, which provides contacts with customers in a
wide range of industries. Toppan
is aggressively expanding into
the content creation business by
meeting needs for the conversion
of printed materials held by
publishing companies to multimedia
formats and by entering
into tie-ups with companies in
other industries. We are also
pushing ahead with technical
development to meet the needs
of the multimedia age, such as
digitization and network-based
services.
In the years ahead, Toppan
will draw on its comprehensive
strengths and take a multifaceted
approach to reinforcing its
position of market leadership.
We will continue working to
raise our performance through
the creation of new demand and
new markets.
200
150
100
50
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
Packaging
Toppan has a leading
share of the packaging
market in Japan. With
a solid base of original
technological development
capabilities, we
supply packaging products with superior quality and functionality
to a wide range of industries, including food, beverages, confectionery,
and toiletries. Our comprehensive operational development
has made us an industry leader in a broad span of packaging
fields, including paper goods, plastic film and other wrapping
materials, filling and packaging machines, and related systems.
During the year under review, Toppan‘s sales in the packaging
field declined 4.5%, to ¥213.5 billion (US$1,764.5 million).
This decline was attributable to weak demand in our customer
industries, which led to lower sales of cardboard, flexible packaging
materials, and plastics. On the other hand, demand for
insulated paper cups increased, and sales of Cartocan, GL Film,
and other environmentally friendly products, which the
Company has positioned as strategically important, continued
to rise. Moreover, the implementation of a law regulating the
recycling of container packaging materials in Japan has had a
positive impact on our sales of these products.
A good example of our ecologically friendly products is
GL Film, a functional packaging material. GL Film consists of
a transparent, high barrier film onto which ceramic has been
deposited. GL Film is being used in a growing number of
applications, including as a flexible packaging material for confectioneries
and retort pouches and in liquid containers. We
have entered tie-ups with local companies for the marketing
and local production of GL Film in North America and Europe,
where it has been highly evaluated. Furthermore, demand for
GL Film is increasing because it is environmentally friendly; it
can be incinerated without any release of harmful substances.
Thus, GL Film can be used to replace PVC materials and aluminum
in many applications.
Another key environmentally friendly product is Cartocan,
a paper beverage container. The applications for Cartocan are
also growing, centered on non-carbonated beverages and other
liquid products, and its shipments
and customer numbers are steadily
expanding. Cartocan has been
highly evaluated for its superior
characteristics. Because it can be
used in aseptic filling and packing
operations, Cartocan facilitates
long-term storage of contents.
In addition, it can also be used in
microwave ovens and is readily
recyclable.
In the future, Toppan will
continue to add original functionality
and design to its packaging
products. By facilitating
the digitization of package
design, we will improve the
effectiveness and efficiency of
our product planning. In the
years ahead, Toppan will expand
into new markets and continue
working to improve the results of
its packaging operations.
250
200
150
100
50
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
16

Industrial
Materials
Toppan has used its
original development
strengths in printing
technologies and
materials to develop
high-value-added
industrial materials, with an emphasis on such products as
decor sheets and wallpaper. We have leading shares of the
markets for these products, which we supply to residential
builders and manufacturers of construction materials.
The Company‘s sales in this field declined 7.2% during the
year under review, to ¥40.3 billion (US$333.1 million). The
principal reasons for the decrease were a large drop in housing
starts caused by the lengthening slump in the domestic economy
and a sluggish market for renovation work. However, solid
expansion is being recorded by ecological products, to which
we are now devoting considerable resources, and by exports,
especially to the United States and Europe. Based on these factors,
we expect our business in this field to grow in the near
future. Toppan Ecosheet, a non-PVC decorfilm, continued to
record a strong performance and steadily expanded its market
share. Toppan Ecowall, a non-PVC wallpaper product, is used
in an expanding range of applications, especially by residential
builders.
In a difficult operating environment marked by a sluggish
residential construction market, Toppan is conducting aggressive
marketing of high-value-added products, centered on its
mainstay decor sheets and wallpaper. These marketing activities
are based on the key words of environment, quality, comfort,
and efficiency, which express our commitment to
manufacturing products with low environmental impact, to
offering design and quality that facilitate the creation of comfortable
spaces, and to providing materials that are space efficient,
easy to install, and user
friendly.
In addition to printed
products, we are also devoting
our attention to sales of other
residential materials and sales of
unit systems. As one facet of
these activities, in fall 1998 we
introduced an integrated system
for interior finishing and fixtures
in next-generation condominiums
that features significant
cost savings.
The government’s economic
stimulus measures are expected
to lead to a recovery in housing
starts sometime in 1999. As
demand recovers, Toppan will
take a thorough, wide-ranging
approach to environmental and
quality control measures and
offer customers products with
higher added value.
60
40
20
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
Electronics
Toppan offers a wide
range of electronicsrelated
products based
on its original precision
fabrication technologies.
We are a leader in
the global markets for semiconductor photomasks and leadframes,
color filters for LCDs, and shadow masks for CRTs.
During the year under review, Toppan‘s sales in the electronics
field declined 8.7%, to ¥132.6 billion (US$1,095.9 million).
Due to the lengthening economic slump and the accompanying
cutback in investment, the production levels of industrial electronic
equipment and consumer electronic products remained
unchanged from the previous year. The semiconductor market
was sluggish, and the display market was adversely affected by
reductions in CRT inventories. Conditions continued to be difficult
throughout the year. The principal reasons for the decline in
the Company‘s performance in this field were weak demand for
leadframes, printed wiring boards, and shadow masks as well as
declines in prices due to the poor market conditions.
For semiconductor-related products, favorable results were
recorded by sub-0.18 micron line photomasks, but leadframes
were adversely affected by market conditions. Currently, we are
making preparations for the start of the mass production of two
new semiconductor package types: plastic BGA and tape BGA.
The launch of these new products will significantly reinforce our
presence in semiconductor packaging markets.
For display-related products, demand for high color purity
resist color filters increased significantly due to larger screen sizes
on notebook computers, the expanding use of LCDs on desktop
computers, and growth in the market for color LCD monitors.
As a result of these factors, our performance in color filters was
favorable during the year under review.
In the years ahead, Toppan will continue to maintain a rapid
pace of focused investment in electronics. In color filters, we will
work to achieve further advances in size and color purity. During
the year under review, we installed a new line at our Niigata plant
for the production of glass plates up to 650 mm by 750 mm, each
of which will yield six 14-inch filters. In order to further raise precision
and increase production capacity for high-definition shadow
masks for personal computer CRT displays, we plan a significant
level of capital investment at our Kumamoto plant. For semiconductor-related
products, having installed a new line at our Shiga
plant that we are using to produce
high-precision photomasks for
next-generation semiconductors,
we will continue to devote
resources to the development and
preparation for the mass production
of new types of packages.
The further expansion of our
electronics component operations
will remain one of our top priorities.
Toppan will provide an advanced
response to the range of performance
and quality standards that
will accompany continued
progress in LCDs and semiconductors.
At the same time,
Toppan will continue to work
actively to foster the technological
innovation that underlies the
creation of new added value.
150
100
50
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
17

Business Forms
Toppan Forms Co.,
Ltd., is responsible for
the business forms
operations of the
Toppan Group. The
main activities of
Toppan Forms are the production of vouchers, invoices, and
other business forms, as well as Data Print Services (DPS),
which involve the receipt of data from customers for printing,
processing, and delivery. Furthermore, Toppan Forms is making
full use of the database technology acquired through DPS
as it develops our operations in customer information strategy
consulting and information management services (IMS), which
take full advantage of the Internet and electronic media.
During the year under review, Toppan Forms‘ sales
increased 0.9%, to ¥163.7 billion (US$1,352.9 million).
Toppan Forms‘ flagship business forms operations recorded a
decrease in sales due to declines in both sales volumes and
prices for its principal products, ordinary continuous slips.
Moreover, the pace of growth in DPS operations slowed due
to sluggish demand for direct mail services. On the other
hand, favorable growth was recorded by mailing services for
invoices and other business forms, which benefited from the
strengthening of quality assurance systems and the growing
use of outsourcing. In the future, Toppan Forms will expand its
DPS businesses to include new services for financial institutions,
which are increasingly providing a better level of service
to individual customers in the wake of Japan’s financial deregulation.
Sales of equipment were favorable due to expanded sales
of high-speed collation systems to the distribution industry as
well as envelope insertion and sealing equipment to financial
institutions. Sales of supplies were also favorable, as we
acquired new customers for such products as computer printer
supplies and office paper. In addition, revenues from services
increased, thanks to steady progress in developing new
operations in the field of multimedia.
In the future, Toppan Forms
will continue to aggressively
promote its proposal-based sales
activities by speeding up its
development of products that
meet market needs and by differentiating
its products and services
from those of its
competitors. We will thoroughly
reduce materials and other costs
and emphasize laborsaving,
rationalization, and greater efficiency
in production and distribution.
By providing the market
with IMS-related products,
Toppan Forms is aiming to establish
itself as an Integrated
Information Management
Services (IIMS) that responds
appropriately to the business
strategies of its customers.
180
120
60
0
SALES
(Billion ¥)
’95 ’96 ’97 ’98 ’99
Note to Review of Operations
As explained in Note 9 of the Notes to Consolidated
Financial Statements, our consolidated segment information
is presented for the Printing and Other segments.
The Review of Operations section of this annual report,
however, presents sales information for the Company’s
internal operational areas and for Toppan Forms Co., Ltd.,
the consolidated subsidiary that handles business forms
operations. The information is presented in this manner
so that readers can more easily understand the performance
trends for each of the Company’s areas of
operations. In the Review of Operations section, the sales
figures for the business forms field represent sales by
Toppan Forms Co., Ltd., and the combined totals of the
sales figures for the other six fields represent the nonconsolidated
sales of Toppan Printing Co., Ltd.
18

Management’s
Discussion and Analysis
20
Consolidated Five-Year
Financial Summary
23
Consolidated Balance Sheets
24
Consolidated Statements of
Income
26
Financial Section
Consolidated Statements of
Shareholders’ Investment
27
Consolidated Statements of
Cash Flows
28
Notes to
Consolidated Financial Statements
29
Report of Independent
Public Accountants
36

MANAGEMENT‘S DISCUSSION AND ANALYSIS
50
40
30
20
10
0
Net Income
(Billion ¥) (¥)
’95 ’96 ’97 ’98 ’99
Net Income per Share
(right scale)
70
60
50
40
30
20
10
0
(%)
8
6
4
2
0
Return on Sales
’95
’96 ’97 ’98 ’99
Operating Income as % of Sales
Net Income as % of Sales
In the fiscal year ended March 31,
1999, Japan’s economic slump lengthened
and Toppan’s operating environment
was extremely challenging.
Consolidated net sales declined 4.7%,
to ¥1,223.4 billion (US$10,111.1 million);
operating income decreased
30.9%, to ¥65.2 billion (US$539.0 million);
and net income fell 43.6%, to
¥26.7 billion (US$220.7 million). Net
income per share declined 43.1%, to
¥37.29 (US$0.31), and return on equity
was 4.0%, compared with 7.4% in
the previous fiscal year. Dividends per
share were maintained at ¥15.00
(US$0.12). In the year under review,
the Company continued to build a
foundation for future expansion by
strengthening its operations in
growth fields and further rationalizing
management practices.
Income and Expense Analysis
Consolidated net sales, which were significantly
affected by sluggish demand in
the stagnant domestic economy and by
the resulting decline in order prices,
decreased 4.7%, to ¥1,223.4 billion
(US$10,111.1 million). Business forms
was the only field in which we recorded
an increase in sales.
The cost of sales declined 2.8%, to
¥1,030.3 billion (US$8,514.8 million).
We worked to reduce costs throughout
the Group, but due to lower prices in all
fields, especially electronics and publications
printing, we were unable to offset
the decline in sales. The cost of sales as
a percentage of net sales increased 1.7
percentage points, to 84.2%. Gross profit
declined 14.0%, to ¥193.1 billion
(US$1,596.2 million). The Company is
implementing a range of restructuring
measures to reduce the cost of sales,
such as thorough laborsaving and cost
control efforts, reduced capital investment,
and the consolidation of subsidiaries
in Japan and overseas.
Selling, general and administrative
(SG&A) expenses declined 1.8%, to
¥127.9 billion (US$1,057.2 million).
As a result of the decrease in net sales,
however, the ratio of SG&A expenses
to net sales rose to 10.5%, from 10.1%
in the previous year.
Operating income declined 30.9%,
to ¥65.2 billion (US$539.0 million), and
the operating income margin was 5.3%,
compared with 7.3% in the previous year.
In other income and expenses, net other
expenses of ¥7.7 billion (US$63.7 million)
was recorded, compared with net other
income of ¥11.4 billion in the previous
year. During the previous year, we registered
¥20.9 billion in profit on the sale of
stock when subsidiary Toppan Forms Co.,
Ltd., listed on the First Section of the
Tokyo Stock Exchange, and during the
year under review we recorded ¥2.0 billion
(US$16.8 million) in foreign currency
exchange losses and ¥2.8 billion (US$23.0
million) in additional pension expenses
associated with early retirements.
Income before income taxes
decreased 45.6%, to ¥57.5 billion
(US$475.3 million). Provision for income
taxes was down 52.8%, to ¥27.9 billion
(US$231.0 million), while the effective
tax rate declined to 48.6%, from 56.0%
in the previous year, due to revisions in
tax regulations implemented in the fiscal
year ended March 31, 1998. The
Company also recorded ¥3.1 billion
(US$25.9 million) in minority interests in
net income of consolidated subsidiaries
Return on Equity and Assets
(%)
8
6
4
2
0
’95 ’96 ’97
’98’99
Return on Average Equity
Return on Average Assets
20

Cash Dividends per Share
(¥)
15
10
5
0
’95 ’96 ’97 ’98 ’99
and ¥0.3 billion (US$2.1 million) in
equity in earnings of affiliates. Net
income fell 43.6%, to ¥26.7 billion
(US$220.7 million), and net income per
share declined to ¥37.29 (US$0.31),
from ¥65.50 in the previous year.
Return on equity fell to 4.0%, from
7.4% in the previous year, and return
on assets was 2.1%, down from 3.9%.
Given our solid customer base and the
range of measures currently being
implemented, we expect steady
improvement in performance over
the medium to long term.
Dividends
Dividends per share were ¥15.00
(US$0.12), the same as in the previous
year. Toppan’s approach to the payment
of dividends is to provide shareholders
with a stable yet gradually increasing flow
of dividend payments while retaining
within the Company the resources needed
to prepare for future growth.
The Company allocates retained
earnings to the renewal and expansion
of existing production facilities, principally
in the strategically important field of
electronics, and to investment in new
business fields. Through these activities,
we work to strengthen the Company and
improve profitability, and thus to provide
a stable return to our shareholders.
Financial Position
Toppan gives top priority to maintaining
a strong financial condition and to generating
cash flow sufficient for the Company
to make the investment needed for
smooth operational administration and
future growth. Toppan met those goals
during the year under review.
Cash flow declined 20.2% during
the year under review, to ¥76.1 billion
(US$629.2 million), due to the fall in net
income. Nonetheless, the Company continued
to maintain an adequate level of
cash flow. Net cash provided by operating
activities was down 63.2%, to ¥49.4
billion (US$408.2 million). This decrease
was primarily attributable to lower net
income and to a decline in payables,
accrued expenses and income taxes.
Net cash used in investing activities
was up 2.7%, to ¥95.3 billion
(US$787.5 million). Capital expenditures
declined 24.3%, to ¥93.5 billion
(US$772.8 million). In order to establish
a foundation for future growth, in
recent years the Company has invested
aggressively in strategically important
fields, especially electronics. In other
fields, however, we reduced our capital
investment due to our performance in
the year under review.
Cash used in financing activities was
¥13.7 billion (US$113.6 million), of
which cash dividends paid accounted
for ¥10.8 billion (US$89.6 million). Cash
provided by financing activities totaled
¥33.6 billion in the previous year, due
to an increase in long-term indebtedness,
which included the issuance of
¥50.0 billion in unsecured bonds. (See
Note 3 of Notes to Consolidated
Financial Statements.)
Although cash and cash equivalents
at the end of the term were down
24.9%, to ¥179.7 billion (US$1,484.9
million), we maintained ample liquidity.
Our fundamental policy is to maintain
capital spending for renewal and renovation
purposes within the limits of cash
flow, and, for such large investment
Net Cash Provided by
Operating Activities
(Billion ¥)
180
150
120
90
60
30
0
’95 ’96 ’97 ’98 ’99
Capital Expenditures
(Billion ¥) (Billion ¥)
140
120
100
80
60
40
20
0
’95 ’96 ’97 ’98 ’99
60
30
0
Depreciation & Amortization
(right scale)
21

(%)
30
25
20
15
10
5
0
Debt-Equity Ratio
’95
’96 ’97
’98 ’99
projects as new plant construction, to
raise the necessary funds in the capital
market.
Current assets at the end of the
term were down 9.6% from the previous
year-end, to ¥643.4 billion
(US$5,317.5 million), while current
liabilities totaled ¥410.0 billion
(US$3,388.4 million), a decline of
11.4%. Working capital decreased
6.3%, to ¥233.4 billion (US$1,929.1
million), and the current ratio increased
to 1.57, from 1.54 at the previous yearend.
Property, plant and equipment,
net, rose 6.9%, to ¥476.6 billion
(US$3,939.2 million).
Long-term indebtedness edged up
1.1%, to ¥114.2 billion (US$944.1 million)
at year-end. The debt-equity ratio
was 20.7%, about the same as at the
previous year-end.
Shareholders’ investment was up
2.5%, to ¥683.9 billion (US$5,652.1
million), due to higher retained earnings.
The ratio of shareholders’ equity to
total assets increased to 54.0%, from
51.3% at the previous year-end. Net
assets per share rose 2.5%, to ¥977.83.
Total assets declined 2.6%, to ¥1,267.4
billion (US$10,474.0 million).
Year 2000 Issue
Toppan recognizes the Year 2000 (Y2K)
issue as an important management issue
and is moving ahead with a
Companywide response that gives the
highest priority to maintaining the ability
to supply products and services to
customers. We have formed a Y2K committee,
chaired by an executive vice
president. The committee’s responsibilities
include strengthening guidance
to all Group companies. In each business
field, a Y2K group has been established,
led by a senior manager. Toppan’s Y2K
compliance work includes separate
efforts in each operational area, such as
the procurement of raw materials, manufacturing,
and distribution, as well as a
Companywide response in core information
systems.
Tests of production-related equipment,
centered on plate-making and
related equipment, are being conducted
at the Technical Research Institute and
at each plant. As of the end of June
1999, the Company was making rapid
progress with these tests. Toppan has
provided guidance to suppliers and
external production contractors and is
moving forward with state-of-readiness
testing. At this point, compliance work
on the Company’s host computer is
nearly completed. Compliance work on
core information system programs was
completed in June 1999. Final testing
will be conducted in August.
Y2K-related expenditures are not
expected to have a significant effect on
the Company’s performance.
The Company is taking all possible
measures to avoid problems stemming
from the Y2K issue, including the effects
of and the Company’s response to a
wide range of hypothetical situations.
However, there is cause for concern
about the occurrence of unforeseen
events given the nature of the Y2K issue.
Accordingly, the Company has prepared
a Crisis Management Manual and established
a Companywide crisis management
system in preparation for problems
that may occur.
Shareholders‘ Investment
(Billion ¥) %
700
600
500
400
300
200
100
0
’95 ’96 ’97 ’98 ’99
Equity Ratio
(right scale)
60
50
40
30
20
10
0
(Billion ¥)
1,500
1,250
1,000
750
500
250
0
Total Assets
’95 ’96 ’97 ’98 ’99
22

Toppan Printing Co., Ltd. and Subsidiaries
CONSOLIDATED FIVE-YEAR FINANCIAL SUMMARY
Toppan Printing Co., Ltd. and Subsidiaries
For the years ended March 31
Millions of yen except per share data
Thousands of dollars*
1995 1996 1997 1998 1999 1999
For the Year:
Net sales ¥1,130,569 ¥1,186,592 ¥1,274,339 ¥1,284,145 ¥1,223,439 $10,111,066
Cost of sales 933,587 990,642 1,054,486 1,059,558 1,030,295 8,514,835
% of net sales 82.6% 83.5% 82.7% 82.5% 84.2% —
SG&A expenses 115,145 125,129 131,711 130,262 127,927 1,057,248
% of net sales 10.2% 10.5% 10.3% 10.1% 10.5% —
Operating income 81,837 70,821 88,142 94,325 65,217 538,983
% of net sales 7.2% 6.0% 6.9% 7.3% 5.3% —
Income before income taxes 54,894 79,513 69,792 105,714 57,515 475,331
Net income 15,881 39,705 21,621 47,381 26,700 220,661
% of net sales 1.40% 3.35% 1.70% 3.69% 2.18% —
% of average assets 1.49% 3.62% 1.90% 3.86% 2.08% —
% of average equity 2.88% 6.78% 3.57% 7.40% 3.95% —
Per share of common stock (yen and dollars):
Net income ¥22.87 ¥54.57 ¥30.25 ¥65.50 ¥37.29 $0.31
Cash dividends 13.00 13.00 14.00 15.00 15.00 0.12
R&D expenses ¥15,090 ¥15,426 ¥15,874 ¥17,131 ¥18,875 $155,992
Capital expenditures 64,096 69,878 83,104 123,515 93,513 772,835
Depreciation and amortization 49,680 50,654 53,724 57,824 60,274 498,132
At Year-End:
Current assets ¥ 578,760 ¥ 621,280 ¥ 628,598 ¥ 711,977 ¥ 643,415 $5,317,479
Current Iiabilities 387,526 429,845 449,186 462,817 409,995 3,388,388
Working capital 191,234 191,435 179,412 249,160 233,420 1,929,091
Cash and cash equivalents 160,376 179,466 164,214 239,308 179,678 1,484,942
Property, plant and equipment,
net of depreciation 340,198 357,436 385,535 445,916 476,649 3,939,248
Long-term indebtedness 83,864 66,616 64,279 113,050 114,242 944,149
Total assets 1,069,042 1,126,303 1,151,883 1,300,649 1,267,357 10,474,025
Shareholders’ investment 570,276 600,424 612,265 667,464 683,906 5,652,116
Equity ratio 53.3% 53.3% 53.2% 51.3% 54.0% —
Debt-equity ratio 19.7% 18.9% 16.4% 21.5% 20.7% —
Other Statistics:
Number of employees 32,953 33,479 33,719 34,402 33,464
Number of common shares
outstanding 699,246 699,282 699,300 699,411 699,411
* U.S. dollar amounts are translated from yen at the rate of ¥121=U.S.$1, as at March 31, 1999.
Note 1: The consolidated results for the year ended March 31, 1995, reflect the ¥18,223 million ($150,603 thousand) write-off pertaining to the acquisition of Toppan Moore Co.,
Ltd.’s goodwill.
Note 2: The consolidated results for the year ended March 31, 1996, include the ¥10,362 million ($85,636 thousand) proceeds from the sale of Toppan Printing Co. (H.K.) Ltd.’s land.
Note 3: The consolidated results for the year ended March 31, 1997, reflect the ¥9,015 million ($74,504 thousand) write-off pertaining to the acquisitions of Toppan Moore Co.,
Ltd.’s and Avery Toppan Co., Ltd.’s goodwill.
Note 4: The consolidated results for the year ended March 31, 1998, reflect the ¥20,868 million ($172,463 thousand) gain on sale of investment in Toppan Forms Co., Ltd.
(Toppan Moore Co., Ltd. changed its name to Toppan Forms Co., Ltd. on April 1, 1997.)
23

CONSOLIDATED BALANCE SHEETS
Toppan Printing Co., Ltd. and Subsidiaries
As at March 31, 1998 and 1999
Assets
Millions of Yen
Thousands of dollars
(Note 1)
1998 1999 1999
Current Assets:
Cash and cash equivalents (Note 1) ¥ 239,308 ¥ 179,678 $ 1,484,942
Notes and accounts receivable—
Trade 392,741 383,024 3,165,488
Affiliates (Note 2) 1,642 1,217 10,058
Less: Allowance for doubtful receivables (Note 1) (4,974) (2,854) (23,587)
Inventories (Note 1)—
Finished goods and merchandise 31,195 31,606 261,207
Work in process and raw materials 40,313 37,297 308,240
Deferred income taxes (Notes 1 and 4) 6,464 4,410 36,446
Other current assets 5,288 9,037 74,685
Total current assets 711,977 643,415 5,317,479
Property, Plant and Equipment, at cost (Notes 1 and 3):
Land 93,086 101,649 840,074
Buildings and structures 317,471 341,906 2,825,669
Machinery and equipment 577,486 610,114 5,042,265
988,043 1,053,669 8,708,008
Less: Accumulated depreciation (542,127) (577,020) (4,768,760)
445,916 476,649 3,939,248
Investments and Other Assets:
Investments in and advances to affiliates (Notes 1 and 2) 39,911 44,552 368,198
Investment securities (Note 1) 63,463 62,122 513,405
Deferred income taxes (Notes 1 and 4) 5,502 6,315 52,190
Long-term loans receivable from employees and other 33,880 34,304 283,505
142,756 147,293 1,217,298
Total Assets ¥1,300,649 ¥1,267,357 $10,474,025
The accompanying notes to the consolidated financial statements are an integral part of these balance sheets.
24

Liabilities and Shareholders’ Investment
Millions of yen
Thousands of dollars
(Note 1)
1998 1999 1999
Current Liabilities:
Short-term bank borrowings, average interest 4.7% and
5.1% as at March 31, 1998 and 1999, respectively ¥ 29,636 ¥ 26,881 $ 222,157
Current portion of long-term indebtedness (Note 3) 996 645 5,330
Notes and accounts payable—
Trade 291,695 281,254 2,324,413
Construction 62,485 47,661 393,893
Affiliates (Note 2) 15,272 13,778 113,868
Accrued expenses 26,698 25,719 212,554
Income taxes (Notes 1 and 4) 36,035 14,057 116,173
Total current liabilities 462,817 409,995 3,388,388
Long-Term Liabilities:
Long-term indebtedness (Note 3) 113,050 114,242 944,149
Estimated termination and retirement allowances (Note 1) 23,458 22,985 189,959
Deferred income taxes (Notes 1 and 4) — 231 1,909
Other long-term liabilities 467 334 2,760
136,975 137,792 1,138,777
Minority Interests 33,393 35,664 294,744
Commitments and Contingent Liabilities (Note 8)
Shareholders’ Investment (Note 5):
Common stock, par value ¥50 per share;
Authorized—1,200,000,000 shares
Outstanding—699,411,267 shares
as at March 31, 1998 and 1999 104,985 104,985 867,645
Additional paid-in capital 117,738 117,738 973,041
Retained earnings 444,741 461,183 3,811,430
667,464 683,906 5,652,116
Total Liabilities and Shareholders’ Investment ¥1,300,649 ¥1,267,357 $10,474,025
25

CONSOLIDATED STATEMENTS OF INCOME
Toppan Printing Co., Ltd. and Subsidiaries
For the years ended March 31, 1997, 1998 and 1999
Millions of yen
Thousands of dollars
(Note 1)
1997 1998 1999 1999
Net Sales ¥1,274,339 ¥1,284,145 ¥1,223,439 $10,111,066
Cost of Sales 1,054,486 1,059,558 1,030,295 8,514,835
Gross Profit 219,853 224,587 193,144 1,596,231
Selling, General and Administrative Expenses 131,711 130,262 127,927 1,057,248
Operating income 88,142 94,325 65,217 538,983
Other income (expenses):
Interest expense (3,350) (4,468) (4,412) (36,463)
Interest and dividend income 2,781 2,667 2,884 23,835
Rental income on leased equipment 2,224 1,691 1,413 11,678
Amortization of past service costs (Note 1) (1,981) (2,201) (2,564) (21,190)
Foreign currency exchange gains (losses) 780 827 (2,030) (16,777)
Goodwill write-off (Note 1) (9,015) — — —
Loss from valuation of marketable securities and
investment securities (7,185) (5,620) (2,336) (19,306)
Gain on sale of property 1,065 2,395 2,620 21,653
Gain on sale of investment in subsidiaries (Note 1) — 20,868 — —
Reversal of allowance for doubtful receivables (Note 1) — — 1,496 12,364
Special retirement benefits — — (2,782) (22,992)
Other, net (3,669) (4,770) (1,991) (16,454)
(18,350) 11,389 (7,702) (63,652)
Income before Income Taxes 69,792 105,714 57,515 475,331
Provision for Income Taxes (Notes 1 and 4):
Current 49,311 54,251 26,223 216,719
Deferred — 4,938 1,724 14,249
Net Income before Minority Interests
in Net Income of Consolidated Subsidiaries
and Equity in Earnings of Affiliates 20,481 46,525 29,568 244,363
Minority Interests in Net Income
of Consolidated Subsidiaries (882) (752) (3,128) (25,850)
Equity in Earnings of Affiliates (Note 1) 2,022 1,608 260 2,148
Net Income ¥ 21,621 ¥ 47,381 ¥ 26,700 $ 220,661
Yen
Dollars
(Note 1)
Per Share of Common Stock (Note 6):
Net income ¥30.25 ¥65.50 ¥37.29 $0.31
Cash dividends, applicable to earnings for the year 14.00 15.00 15.00 0.12
The accompanying notes to the consolidated financial statements are an integral part of these statements.
26

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ INVESTMENT
Toppan Printing Co., Ltd. and Subsidiaries
For the years ended March 31, 1997, 1998 and 1999
Millions of yen
Thousands of dollars
(Note 1)
1997 1998 1999 1999
Common Stock:
Beginning balance ¥104,935 ¥104,942 ¥104,985 $867,645
Conversion of convertible bonds 7 43 — —
Ending balance ¥104,942 ¥104,985 ¥104,985 $867,645
Additional Paid-in Capital:
Beginning balance ¥117,658 ¥117,694 ¥117,738 $973,041
Transfer by merger (Note 1) 29 — — —
Conversion of convertible bonds 7 44 — —
Ending balance ¥117,694 ¥117,738 ¥117,738 $973,041
Retained Earnings (Note 5):
Beginning balance ¥377,831 ¥389,629 ¥444,741 $3,675,545
Net income 21,621 47,381 26,700 220,661
Cash dividends paid (9,440) (9,791) (10,841) (89,595)
Directors’ bonuses (366) (354) (355) (2,933)
Transfer by merger (Note 1) (29) — — —
Effect of adoption of tax allocation accounting
(Notes 1 and 4) — 17,811 938 7,752
Translation adjustment and other (Note 1) 12 65 — —
Ending balance ¥389,629 ¥444,741 ¥461,183 $3,811,430
The accompanying notes to the consolidated financial statements are an integral part of these statements.
27

CONSOLIDATED STATEMENTS OF CASH FLOWS
Toppan Printing Co., Ltd. and Subsidiaries
For the years ended March 31, 1997, 1998 and 1999
Millions of yen
Thousands of dollars
(Note 1)
1997 1998 1999 1999
Cash Flows from Operating Activities:
Net income ¥ 21,621 ¥ 47,381 ¥ 26,700 $ 220,661
Adjustments to reconcile net income to
net cash provided by operating activities—
Depreciation and amortization 53,724 57,824 60,274 498,132
Provision for termination and retirement allowances 5,357 4,690 6,999 57,843
Equity in earnings of affiliates (2,022) (1,608) (260) (2,148)
Payment of retirement allowances (4,890) (3,775) (7,473) (61,761)
(Increase) decrease in receivables and inventories (22,059) (3,360) 10,626 87,818
Increase (decrease) in payables, accrued expenses
and income taxes 30,105 19,221 (49,712) (410,843)
Minority interests 882 752 3,128 25,850
Other, net (369) 13,183 (886) (7,321)
Net cash provided by operating activities 82,349 134,308 49,396 408,231
Cash Flows from Investing Activities:
Capital expenditures (83,104) (123,515) (93,513) (772,835)
Proceeds from sales of property, plant and equipment 3,574 7,313 4,332 35,802
Investments in and advances to
subsidiaries and affiliates, net (1,082) 28,880 (4,381) (36,207)
Investment securities, net 8,994 3,903 1,341 11,083
Long-term loans receivable from
employees and other, net (2,863) (9,359) (3,064) (25,322)
Net cash used in investing activities (74,481) (92,778) (95,285) (787,479)
Cash Flows from Financing Activities:
Cash dividends paid (9,440) (9,791) (10,841) (89,595)
Cash dividends paid to minority stockholders of subsidiaries (888) (155) (853) (7,050)
Long-term indebtedness, net (12,792) 43,510 (2,047) (16,917)
Net cash provided by (used in) financing activities (23,120) 33,564 (13,741) (113,562)
Net Change in Cash and Cash Equivalents (15,252) 75,094 (59,630) (492,810)
Cash and Cash Equivalents at Beginning of Year 179,466 164,214 239,308 1,977,752
Cash and Cash Equivalents at End of Year ¥ 164,214 ¥ 239,308 ¥179,678 $1,484,942
The accompanying notes to the consolidated financial statements are an integral part of these statements.
28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Toppan Printing Co., Ltd. and Subsidiaries
1. Significant Accounting and Reporting
Policies
The following is a summary of the significant accounting and
reporting policies adopted by Toppan Printing Co., Ltd. (the
“Company”) and its consolidated subsidiaries in the preparation
of the consolidated financial statements.
Basis of Presenting Financial Statements
The accompanying consolidated financial statements have been
prepared from the consolidated financial statements filed with
the Minister of Finance as required by the Securities and
Exchange Law of Japan, which are in conformity with accounting
principles and practices generally accepted in Japan and
Japanese income tax laws. Certain reclassifications have been
made to present the accompanying consolidated financial statements
in a format which is familiar to readers outside of Japan.
For the convenience of the reader, the accompanying consolidated
financial statements as at March 31, 1999, and for
the year then ended have also been presented in U.S. dollars
by arithmetically translating all Japanese yen amounts at the
approximate exchange rate of ¥121 to $1.
Principles of Consolidation
The accompanying consolidated financial statements, include
the accounts of the Company and all its subsidiaries.
Material intercompany balances, transactions and profits
have been eliminated in consolidation.
Investment in affiliates (20-50% owned) have been
accounted for by the equity method. These investments are
included in investments in and advances to affiliates in the
accompanying consolidated balance sheets.
In fiscal 1995, the Company acquired additional stocks of
Toppan Moore Co., Ltd. With this acquisition, the Company’s
rate of equity had risen from 55% to 90%. Goodwill totaling
¥18,223 million ($150,603 thousand) that the Company
derived from the acquisition was redeemed in one lump sum.
In the year ended March 31, 1997, the Company acquired all
the remaining stocks of Toppan Moore Co., Ltd. and Avery Toppan
Co., Ltd. With these acquisitions, the Company’s rate of equity in
Toppan Moore Co., Ltd. had risen from 90% to 100%, and that in
Avery Toppan Co., Ltd. from 50% to 100%. Goodwill totaling
¥9,015 million ($74,504 thousand) that the Company derived
from the acquisitions was redeemed in one lump sum.
In fiscal 1997, the Company merged two of its other wholly
owned subsidiaries. The accounting treatment for this merger was
accounted for in conformity with the Japanese Commerical Code.
In March 1998, the Company sold shares in its wholly owned
subsidiary Toppan Forms Co., Ltd. when the subsidiary listed its
shares on the Tokyo Stock Exchange. (Toppan Moore Co., Ltd.
changed its name to Toppan Forms Co., Ltd. on April 1, 1997.) As a
result of this sale, the Company’s rate of equity in the subsidiary fell
from 100% to 58.6% and the Company’s recognized profit on the
sale of the subsidiary‘s shares amounted to ¥20,868 million
($172,463 thousand).
Translation of Foreign Currencies
Foreign currency transactions are translated into Japanese yen
using the exchange rates in effect at the time of the transactions
or at the applicable exchange rates under forward
exchange contracts. Current assets and liabilities denominated
in foreign currencies are translated at the exchange rates
prevailing at the end of each fiscal year, except that forward
exchange contract rates are used where applicable and
the resulting gains and losses are included in current income.
Non-current assets and liabilities denominated in foreign
currencies are translated at the exchange rates in effect at
the time of the transactions, except that forward exchange
contract rates are used where applicable.
Financial statements of overseas consolidated subsidiaries
are translated into Japanese yen by using the exchange rates
prevailing at the end of each fiscal year, except that the
exchange rates in effect at the time of the transactions
are used for shareholders’ investment.
Inventories
Inventories are stated at cost, being determined primarily by
the following methods:
Merchandise
Finished goods
and work in process
Raw materials
First in, first out method
Average as determined by
the retail method
Average method
Depreciation
Depreciation of buildings, excluding building fixtures, is provided
under the straight-line method, and depreciation of other
plant and equipment is provided under the declining-balance
method over estimated useful lives. Effective rates of depreciation
for the years ended March 31, 1997, 1998, and 1999, are
summarized below.
1997 1998 1999
Buildings and structures 8.3% 8.5% 6.9%
Machinery and equipment 25.8% 25.1% 25.3%
The rates of depreciation are based on useful lives of 8
to 50 years for buildings and fixtures, and 2 to 12 years for
machinery and equipment.
Ordinary maintenance and repairs are charged to income as
incurred. Major replacements and improvements are capitalized.
Effective April 1, 1998, the Company changed its method
of recording depreciation of buildings, excluding building fixtures,
from the declining-balance method to the straight-line
method in order to match depreciation expense with revenue
more properly. The effect of this change was to decrease
depreciation expense by ¥3,331 million ($27,529 thousand),
and increase operating income and income before income
taxes by ¥2,651 million ($21,909 thousand) and ¥3,233 million
($26,719 thousand), respectively. The effect of this change on
the business segments is described in Note 9.
Also, effective April 1, 1998, in accordance with revisions of
the Corporation Tax Law, the Company shortened the estimated
useful lives of buildings, excluding building fixtures. The
effect of this change was to increase depreciation expense by
¥860 million ($7,107 thousand), and decrease operating income
and income before income taxes by ¥705 million ($5,826 thousand)
and ¥836 million ($6,909 thousand), respectively. The
effect of this change on the business segments is described in
Note 9.
29

Marketable Securities and Investment Securities
Listed securities included in cash and cash equivalents and
invested securities (non-current) are primarily stated at the
lower of cost or market, cost being determined by the moving
average method.
Other securities are primarily stated at moving average cost
(see table on page 31).
Effective April 1, 1996, the Company changed its valuation
method for listed securities from moving average cost to the
lower of cost or market, cost being determined by the moving
average method to reflect the decline of stock prices more
immediately. As a result of this change, income before income
taxes for the year ended March 31, 1997, decreased by ¥7,185
million ($59,380 thousand).
Commencing with the year ended March 31, 1999, the
Company records recoveries of write-downs of securities in
accordance with revisions in the Corporation Tax Law. There
was no effect on net income resulting from the adoption of
this accounting policy.
Allowance for Doubtful Receivables
Pursuant to the change in the Corporation Tax Law effective in
the year ended March 31, 1999, the Company adopted the
policy of providing the allowance for doubtful receivables in an
amount sufficient to cover possible losses on collection by estimating
individually uncollectible amounts and applying a percentage
based on collection experience to the remaining
accounts. The Company previously provided the allowance
using the formula provided by the Corporation Tax Law.
The effect of this change was to decrease selling, general
and administrative expenses and other expenses by ¥462 million
($3,818 thousand) and ¥46 million ($380 thousand), respectively,
and to increase operating income and income before income
taxes by ¥462 million ($3,818 thousand) and ¥2,004 million
($16,562 thousand), respectively. The effect of this change on
the business segments is described in Note 9.
Income Taxes
The provision for income taxes is computed based on the pretax
income included in the consolidated statements of income.
The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences
of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes.
Effective April 1, 1997, the Company changed its method
of accounting for income taxes to recognize the tax effect
attributable to temporary differences. This change was made to
present a more accurate relationship between income before
income taxes and income taxes (current and deferred). Income
taxes based on temporary differences between tax and financial
reporting purposes are reflected as deferred income taxes
in the consolidated financial statements. As a result of this
change, income before income taxes for the year ended March
31, 1998, decreased by ¥4,982 million ($41,174 thousand) and
the beginning balance of retained earnings for fiscal 1998
increased by ¥12,828 million ($106,017 thousand).
Effective April 1, 1998, the Company adopted the new
accounting standard issued in October 1998, which requires
more accurate calculation regarding the recognition of the tax
effects attributable to temporary differences. As a result of this
change, total assets increased by ¥938 million ($7,752 thousand),
net income decreased by ¥62 million ($512 thousand)
and the ending the balance of retained earnings increased by
¥938 million ($7,752 thousand).
Termination and Retirement Plans
The Company and certain consolidated subsidiaries have
unfunded termination and retirement allowances plans covering
all of their employees. In addition, the Company and certain
subsidiaries have tax-qualified pension plans and a
contributory trusted employee pension fund.
Under the plans, employees are entitled to receive lump-sum
payments at the time of termination or pension payments in case
of termination at retirement age. The amounts of the termination
and retirement allowances are determined on the basis of length
of service and basic salary at the time of termination or retirement.
Accruals have been made for allowances equal to 50% of the
amount payable if all employees had voluntarily terminated their
employment at the end of each fiscal year, less the amount provided
by the non-contributory welfare pension fund.
Under the funded pension plans, the annual payments,
including amortization of the past service costs over 8 to 20
years, are charged to income. The net assets of the pension
plans as at March 31, 1998, the latest date for available information,
were ¥117,767 million ($973,281 thousand). The
aggregate unfunded past service costs amounted to approximately
¥8,202 million ($67,785 thousand) as at March 31,
1998, based on an assumed rate of return of 5.5%.
Amortization of the past service costs under the funded
pension plan is shown as other expenses in the accompanying
consolidated statements of income.
Retirement allowance to directors and corporate auditors
is provided and determined based on the pertinent rules.
The estimated amount to be paid if all directors and corporate
auditors retire on the balance sheet date is also calculated
based on these rules.
The total provisions and payments, including provisions for
the retirement allowance to directors and corporate auditors,
charged to income under the plans for the years ended March
31, 1997, 1998 and 1999, were as follows:
Millions of yen
Thousands of dollars
1997 ¥15,043 $124,322
1998 14,743 121,843
1999 17,954 148,380
Research and Development
Expenses relating to research and development activities are
charged to income as incurred. Research and development
expenses include practical-application research expenses of the
Technical Development Departments, in addition other research
expenses are incurred by the Toppan Technical Research Institute.
The amounts for the years ended March 31, 1997, 1998
and 1999, were as follows:
Millions of yen
Thousands of dollars
1997 ¥15,874 $131,190
1998 17,131 141,579
1999 18,875 155,992
30

Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company
considers all time deposits and current marketable securities
to be cash equivalents in conformity with the definition used in
the Company’s annual security report filed with the Minister
of Finance.
Reclassifications
Certain reclassifications have been made to previously reported
1997 and 1998 amounts to conform to the 1999 presentation.
These reclassifications had no effect on previously reported net
income or total shareholders’ investment.
Millions of yen
Thousands of dollars
1998 1999 1999
Marketable securities—
Marketable equity securities ¥ 6,659 ¥ 6,036 $ 49,884
Interest-bearing bonds and other 78,352 101,624 839,868
¥85,011 ¥107,660 $889,752
Investment securities—
Marketable equity securities ¥54,543 ¥53,716 $443,934
Non-marketable equity securities 8,780 7,125 58,884
Interest-bearing bonds and other 140 1,281 10,587
¥63,463 ¥62,122 $513,405
Interest-bearing bonds represent primarily those issued by the government, government-sponsored agencies and banks.
The unrealized gains applicable to current and non-current marketable equity securities as at the respective balance sheet dates
were as follows:
Millions of yen
Thousands of dollars
1998 1999 1999
Current ¥13,800 ¥ 7,713 $ 63,744
Non-current 51,854 64,578 533,702
2. Investments in and Advances to Affiliates
(a) Combined unaudited financial information of affiliates as at each balance sheet date and for each of the years presented was as
follows:
Millions of yen
Thousands of dollars
1998 1999 1999
Financial Position:
Assets—
Current assets ¥215,350 ¥198,903 $1,643,826
Investments and other assets 180,965 177,084 1,463,505
¥396,315 ¥375,987 $3,107,331
Liabilities—
Current liabilities ¥139,752 ¥120,165 $ 993,099
Long-term liabilities 93,053 92,865 767,479
Shareholders’ investment 163,510 162,957 1,346,753
¥396,315 ¥375,987 $3,107,331
31

Millions of yen
Thousands of dollars
1997 1998 1999 1999
Operations:
Net sales ¥346,459 ¥345,185 ¥313,635 $2,592,025
Costs and expenses 340,135 339,202 312,114 2,579,455
Net income ¥ 6,324 ¥ 5,983 ¥ 1,521 $ 12,570
(b) Summarized below are significant transactions with affiliates for the years ended March 31, 1997, 1998 and 1999:
Millions of yen
Thousands of dollars
1997 1998 1999 1999
Sales ¥ 2,120 ¥ 1,651 ¥ 3,978 $ 32,876
Cost of sales—
Purchases of materials 26,217 24,613 26,766 221,207
Subcontractors’ fees 7,433 7,050 8,088 66,843
Interest and dividend income 713 794 702 5,802
Rental income 732 779 1,034 8,545
3. Long-Term Indebtedness
Long-term indebtedness as at March 31, 1998 and 1999, is detailed in the table below:
Conversion/subscription price Millions of yen Thousands of dollars
Yen per share 1998 1999 1999
Unsecured convertible bonds—
1.9%, due 2001 ¥1,645.10 ¥ 24,933 ¥ 24,933 $206,058
1.4%, due 2005 2235.20 34,950 34,950 288,843
Unsecured bonds—
2.7%, due 2007 — 50,000 50,000 413,223
Secured bonds—
7.1%, due 1998 — 200 — —
2.5%, due 2004 — 500 500 4,132
2.2%, due 2003 — 300 300 2,479
1.8%, due 2005 — — 200 1,653
Unsecured loans—
Japanese banks, 2.0-4.0%, due 2000 through 2005 — 371 1,396 11,537
Foreign banks, 2.1-9.1%, due 2000 through 2005 — 121 757 6,256
Mortgage loans—
Japanese banks, 2.0-5.9%, due 2000 through 2005 — 2,671 1,851 15,298
114,046 114,887 949,479
Less: Current portion included in current liabilities (996) (645) (5,330)
¥113,050 ¥114,242 $944,149
As at March 31, 1999, property, plant and equipment with
a net book value of ¥5,145 million ($42,521 thousand) was
pledged as collateral for long-term indebtedness.
The convertible bonds are convertible into common stock at
the option of the holders, currently at applicable conversion prices
per share as listed in the preceding table. These conversion prices
are subject to adjustment for subsequent stock splits of common
stock and shares issued at less than market value. The outstanding
convertible bonds are redeemable at the option of the Company
at a price of 100% of the principal amount under certain conditions
as provided in the respective agreements.
The unsecured convertible bonds are subject to certain
covenants such as restrictions on dividends, earnings and certain
additional secured indebtedness, as defined in the agreements.
The Company presently satisfies all required covenants.
If all outstanding convertible bonds had been converted into
common stock as at March 31, 1999, approximately 30,792
thousand shares of common stock would have been issued.
As is customary in Japan, short-term and long-term bank
loans are made under general agreements which provide that
additional security and guarantees for present and future
indebtedness will be given upon request of the bank under
certain circumstances, and that any collateral so furnished will
be applicable to all indebtedness to that bank. To date, the
Company and its consolidated subsidiaries have not received
any such requests from the banks. In addition, the agreements
provide that the bank has the right to offset cash deposits
against any short-term or long-term debt that becomes due,
and in case of default and certain other specified events,
against all other debt payable to the bank.
32

The aggregate annual maturities of long-term loans subsequent
to March 31, 1999, are as follows:
Fiscal year ending March 31 Millions of yen Thousands of dollars
2001 ¥711 $5,876
2002 534 4,413
2003 646 5,339
2004 487 4,025
2005 and thereafter 981 8,107
4. Income Taxes
The Company and its subsidiaries are subject to several taxes
(corporate, inhabitant and enterprise) based on income. The
aggregate statutory tax rates and the effective tax rates for the
years ended March 31, 1997, 1998 and 1999 are as follows:
1997 1998 1999
Statutory tax rate 51% 51% 47%
Effective tax rate 71% 56% 49%
Variance between the statutory tax rates and effective tax rates
for the year ended March 31, 1997, consists primarily of the effect of
permanently non-deductible expenses and non-taxable income. The
effective tax rate for the year ended March 31, 1997, was affected by
the lump-sum write-off of goodwill pertaining to the acquisition of
Toppan Moore Co., Ltd. and Avery Toppan Co., Ltd. in 1997. For
the years ended March 31, 1998 and 1999, the variance consists primarily
of all temporary differences reflected to deferred taxes as a
result of adopting the allocation of income taxes.
Significant components of the Company’s deferred tax
assets and liabilities as of March 31, 1999, are as follows:
Millions of yen Thousands of dollars
(Deferred tax assets)
Bad debt reserve ¥1,277 $ 10,554
Accrued bonuses 950 7,851
Enterprise taxes 1,369 11,314
Depreciation 2,071 17,116
Estimated termination
and retirement allowances 3,799 31,397
Intercompany profits 2,145 17,727
Net operating loss carry forwards 1,691 13,975
Other 3,100 25,620
16,402 135,554
Less valuation allowance (1,691) (13,975)
Total 14,711 121,579
(Deferred tax liabilities)
Tax purpose reserves
regulated by Japanese tax law 3,467 28,653
Other 519 4,290
Total 3,986 32,943
Deferred tax assets, net ¥10,725 $ 88,636
(Fixed liabilities)
Deferred tax liabilities
Depreciation ¥177 $1,463
Other 54 446
Total deferred tax liabilities ¥231 $1,909
The valuation allowance mainly relates to deferred tax assets
of the consolidated subsidiaries with operating loss carryforwards
for tax purposes that are not expected to be realized.
The disclosure of significant components of the Company’s
deferred tax assets and liabilities have been required to be disclosed
under accounting principles from fiscal 1999, but such
accounting principles have not been required to restate the
1998 deferred tax information.
33
5. Shareholders’ Investment
The Japanese Commerical Code provides that an amount equivalent
to at least 10% of cash dividends paid and of other cash outlays
in each fiscal or interim six-month period be appropriated to a legal
reserve until such reserve equals 25% of the issued share capital.
In accordance with the new disclosure requirements effective
from the year ended March 31, 1999, legal reserve of
¥14,709 million ($121,562 thousand) is included in retained
earnings for 1999. Previously it was presented as a separate
component of the shareholders’ investment. The accompanying
consolidated financial statements for the years ended
March 31, 1997 and 1998 have been reclassified to conform
to the 1999 presentation.
The Code also provides that neither the additional paid-in capital
nor the legal reserve is available for cash dividends, but may be
used to reduce a capital deficit by resolution of the shareholders or
may be capitalized by resolution of the Board of Directors.
Year-end dividends are approved by the shareholders after the
end of each fiscal year, and interim dividends are declared by the
Board of Directors after the end of each semi-annual period. In
accordance with the Commercial Code, the year-end dividends and
the related appropriation of retained earnings are not reflected in
the consolidated financial statements at the end of each fiscal year.
On June 30, 1999, the shareholders approved the declaration
of a year-end cash dividend totaling ¥5,246 million ($43,356 thousand),
which was paid in that month to the shareholders of record
as at March 31, 1999, and the related appropriation of profits to
legal reserve of ¥539 million ($4,455 thousand).
6. Per Share Data
Net income per share is based on the weighted average number
of shares of common stock outstanding and dilutive common
stock equivalents. The 1.9% and 1.4% convertible bonds were
considered as common stock equivalents and were included in
the calculation of earnings per share when they were dilutive. In
computing net income per share, net income is adjusted, at net
of income taxes, by interest expense on the convertible bonds.
Dividends per share shown in the accompanying consolidated
statements of income have been presented on an
accrual basis but include dividends approved after each fiscal
year-end and are applicable to the year then ended.
The number of shares of common stock outstanding used
in computing net income per share was as follows:
Thousands of shares
1997 736,805
1998 730,231
1999 730,195
7. Derivative Financial Instruments
The Company uses derivative financial instruments selectively,
to manage interest rate risk and foreign exchange risk.
The Company enters into forward exchange contracts to
hedge foreign exchange risks and also uses interest rate swaps
to manage floating interest rate risk.
To reduce the credit risk of counterparties in derivative
transactions, the Company selects major, creditworthy financial
institutions as counterparties.
The Company has entered into the following types of
derivative financial instruments as of March 31, 1999.

Interest Rate Contracts
1998 Millions of yen
Notional amounts
Due within one year Due after one year Total Fair value Unrealized gain (loss)
Interest rate swap contracts—
Pay floating rate, receive floating rate ¥1,000 ¥6,000 ¥7,000 ¥(2) ¥(2)
Pay floating rate, receive fixed rate — — — — —
Total ¥1,000 ¥6,000 ¥7,000 ¥(2) ¥(2)
1999 Millions of yen
Notional amounts
Due within one year Due after one year Total Fair value Unrealized gain (loss)
Interest rate swap contracts—
Pay floating rate, receive floating rate ¥6,000 ¥ — ¥ 6,000 ¥3 ¥3
Pay floating rate, receive fixed rate — 10,000 10,000 1 1
Total ¥6,000 ¥10,000 ¥16,000 ¥4 ¥4
Thousand of U.S. dollars
Notional amounts
Due within one year Due after one year Total Fair value Unrealized gain
Interest rate swap contracts—
Pay floating rate, receive floating rate $49,587 $ — $ 49,587 $25 $25
Pay floating rate, receive fixed rate — 82,645 82,645 8 8
Total $49,587 $82,645 $132,232 $33 $33
The above table excludes all the forward exchange contracts
entered into to hedge receivables and payables denominated
in foreign currencies, since they have been translated
and reflected at the corresponding contracted rates in the
accompanying balance sheets as of March 31, 1998 and 1999.
The fair value of interest swap contracts has been required to
be disclosed from fiscal 1998.
8. Commitments and Contingent Liabilities
Commitments outstanding as at March 31, 1999, for capital expenditures
approximated ¥58,966 million ($487,322 thousand).
As at March 31, 1999, the Company and its subsidiaries
were contingently liable for trade notes receivable discounted
with banks of ¥42 million ($347 thousand). The average interest
rate of the notes discounted with banks was 1.8% per
annum as at March 31, 1999.
The Company and its subsidiaries were also contingently
liable as guarantors for the borrowings of certain subsidiaries,
affiliates and subcontractors, amounting to ¥2,472 million
($20,430 thousand) as at March 31, 1999.
The Company and its consolidated subsidiaries had cancellable
and non-cancellable long-term lease agreements, principally for
office space and computer equipment. Annual rental expenses for
the year ended March 31, 1999, were ¥18,249 million ($150,818
thousand).
9. Segment Information
The Company conducts various printing activities classified as the
“printing” segment and non-printing activities classified as the
“other” segment.
A summary of net sales, costs and expenses and operating
income by segment of business activities for the years ended March
31, 1997, 1998 and 1999, is shown on the next page.
As described in Note 1 (Depreciation), effective April 1, 1998,
the Company changed its depreciation method for buildings,
excluding building fixtures, from the declining-balance method to
the straight-line method. As a result of this change, operating
income and assets of the Printing segment for the year ended
March 31, 1999, increased by ¥2,651 million ($21,909 thousand)
and ¥3,233 million ($26,719 thousand), respectively.
Also, as described in Note 1 (Depreciation), effective April 1,
1998, the Company shortened the estimated useful lives of buildings,
excluding building fixtures. As a result of this change, operating
income and assets of the Printing segment decreased by ¥701
million ($5,793 thousand) and ¥833 million ($6,884 thousand),
respectively.
Also, as described in Note 1 (Allowance for doubtful receivables),
effective from the year ended March 31, 1999, the
Company changed the policy for providing the allowance for
doubtful receivables from using the formula provided by the
Corporation Tax Law to applying a percentage based on collection
experience to the remaining account. As a result of this change,
operating income and assets of the Printing segment increased by
¥434 million ($3,587 thousand) and ¥1,868 million ($15,438
thousand), respectively. Also, operating income and assets of the
Other segment increased by ¥28 million ($231 thousand) and
¥136 million ($1,124 thousand), respectively.
Geographical segment information was not presented as the
sales and assets of consolidated domestic subsidiaries for the years
ended March 31, 1997, 1998 and 1999 exceed 90% of consolidated
net sales and assets.
The overseas sales of the Company and its consolidated
subsidiaries for the years ended March 31, 1997, 1998 and
1999, were less than 10% of consolidated net sales.
34

1997 Millions of yen
Printing Other Total Elimination Consolidated
Net sales—
Outside customers ¥ 1,151,132 ¥ 123,207 ¥1,274,339 ¥ — ¥1,274,339
Intersegment 25,556 44,734 70,290 (70,290)
Total 1,176,688 167,941 1,344,629 (70,290) 1,274,339
Costs and expenses 1,090,269 166,218 1,256,487 (70,290) 1,186,197
Operating income ¥ 86,419 ¥ 1,723 ¥ 88,142 ¥ — ¥ 88,142
Assets ¥ 1,111,036 ¥ 64,928 ¥1,175,964 ¥ (24,081) ¥1,151,883
Depreciation ¥ 51,426 ¥ 332 ¥ 51,758 ¥ — ¥ 51,758
Capital expenditures ¥ 77,996 ¥ 499 ¥ 78,495 ¥ — ¥ 78,495
1998 Millions of yen
Printing Other Total Elimination Consolidated
Net sales—
Outside customers ¥ 1,172,178 ¥ 111,967 ¥1,284,145 ¥ — ¥1,284,145
Intersegment 21,324 46,352 67,676 (67,676) —
Total 1,193,502 158,319 1,351,821 (67,676) 1,284,145
Costs and expenses 1,100,129 157,367 1,257,496 (67,676) 1,189,820
Operating income ¥ 93,373 ¥ 952 ¥ 94,325 ¥ — ¥ 94,325
Assets ¥ 1,260,724 ¥ 57,825 ¥1,318,549 ¥ (17,900) ¥1,300,649
Depreciation ¥ 55,732 ¥ 277 ¥ 56,009 ¥ — ¥ 56,009
Capital expenditures ¥ 128,148 ¥ 586 ¥ 128,734 ¥ — ¥ 128,734
1999 Millions of yen
Printing Other Total Elimination Consolidated
Net sales—
Outside customers ¥1,116,534 ¥ 106,905 ¥1,223,439 ¥ — ¥1,223,439
Intersegment 17,631 47,278 64,909 (64,909) —
Total 1,134,165 154,183 1,288,348 (64,909) 1,223,439
Costs and expenses 1,069,271 153,860 1,223,131 (64,909) 1,158,222
Operating income ¥1,264,894 ¥ 323 ¥1,265,217 ¥ — ¥1,265,217
Assets ¥1,226,042 ¥ 61,875 ¥1,287,917 ¥ (20,560) ¥1,267,357
Depreciation ¥1,258,186 ¥ 293 ¥1,258,479 ¥ — ¥1,258,479
Capital expenditures ¥1,100,485 ¥ 436 ¥1,100,921 ¥ — ¥1,100,921
1999 Thousands of dollars
Printing Other Total Elimination Consolidated
Net sales—
Outside customers $ 9,227,553 $ 883,513 $10,111,066 $ — $10,111,066
Intersegment 145,712 390,726 536,438 (536,438) —
Total 9,373,265 1,274,239 10,647,504 (536,438) 10,111,066
Costs and expenses 8,836,950 1,271,571 10,108,521 (536,438) 9,572,083
Operating income $ 536,315 $ 2,668 $ 538,983 $ — $ 538,983
Assets $10,132,579 $ 511,363 $10,643,942 $(169,917) $10,474,025
Depreciation $ 480,876 $ 2,421 $ 483,297 $ — $ 483,297
Capital expenditures $ 830,455 $ 3,603 $ 834,058 $ — $ 834,058
35

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
Toppan Printing Co., Ltd. and Subsidiaries
To the Board of Directors of TOPPAN PRINTING CO., LTD.:
We have audited the accompanying consolidated balance sheets of TOPPAN PRINT-
ING CO., LTD. (a Japanese corporation) and its consolidated subsidiaries as of March
31, 1998 and 1999, and the related consolidated statements of income, shareholders’
investment and cash flows for each of the three years in the period ended March 31,
1999, all expressed in Japanese yen. Our audits were made in accordance with
generally accepted auditing standards in Japan and, accordingly, included such tests
of the accounting records and such other auditing procedures that we considered
necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly
the financial position of TOPPAN PRINTING CO., LTD., and its consolidated subsidiaries
as of March 31, 1998 and 1999, and the results of their operations and their
cash flows for each of the three years in the period ended March 31 ,1999, in conformity
with accounting principles generally accepted in Japan (see Note 1) consistently
applied during the period except for the changes in the valuation method of listed
securities, made in the year ended March 31, 1997, in the accounting policy for
income taxes, made in the year ended March 31, 1998, and in the method of recording
depreciation of buildings excluding building fixtures, made in the year ended
March 31, 1999, as explained in Note 1 and Note 9 of the notes to the consolidated
financial statements.
Also, in our opinion, the U.S. dollar amounts in the accompanying consolidated financial
statements have been translated from Japanese yen on the basis set forth in Note
1 of the notes to the consolidated financial statements.
Asahi & Co
(A Member Firm of Andersen Worldwide SC)
Tokyo, Japan
June 30, 1999
Statement on Accounting Principles and Auditing Standards
This statement is to remind users that accounting principles and auditing standards
and their application in practice may vary among nations and therefore could affect,
possibly materially, the reported financial position and results of operations. The
accompanying financial statements are prepared based on accounting principles
generally accepted in Japan, and the auditing standards and their application in practice
are those generally accepted in Japan. Accordingly, the accompanying financial
statements and the auditor’s report presented above are for users familiar with
Japanese accounting principles, auditing standards and their application in practice.
36

Board of Directors and Auditors
38
Consolidated
Subsidiaries and Affiliates
40
Overseas Network
42
Corporate Information
44
Corporate Data
37

BOARD OF DIRECTORS AND AUDITORS
(As of June 29, 1999)
Front row from left : Hiromichi Fujita, Kenji Ejima
and Naoki Adachi
Back row from left : Shimpei Hasegawa,
Tohru Shimabukuro, Tsuneyasu Kuromitsu,
Mikio Nakano, Hiroshi Kidokoro
and Tadao Masuda
38

Hiromichi Fujita
Kenji Ejima
Naoki Adachi
Shimpei Hasegawa
Hiroshi Kidokoro
Mikio Nakano
Tsuneyasu Kuromitsu
Tadao Masuda
Tohru Shimabukuro
Masaharu Mitani
Tetsuro Minami
Masao Tsuchiya
Katsuo Amemiya
Yukio Tagawa
Yukio Oba
Saburo Umeda
Shuji Higashida
Koichi Miyazaki
Hiroshi Kukimoto
Sawako Noma
Hiromichi Kono
Tatsuo Yamamoto
Takeshi Toyama
Masayasu Ishida
Akihiro Nagata
Yoshio Sakamura
Hideaki Kawai
Takashi Owaki
Yukio Natori
Hiroshi Inoue
Yoshiaki Tsuneda
Toshihiko Akiyama
Seisaku Okumura
Hideo Yuasa
Jiro Kawake
Kohken Tsuchiya
President
Executive Vice President
Executive Vice President
Senior Managing Director
Senior Managing Director
Senior Managing Director
Senior Managing Director
Senior Managing Director
Senior Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Managing Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Senior Corporate Auditor
Corporate Auditor
Corporate Auditor
Corporate Auditor
39

CONSOLIDATED SUBSIDIARIES AND AFFILIATES
(As of April 1, 1999)
Printing
D SECURITIES & CARDS
Tokyo Magnetic Printing Co., Ltd.*
Toppan Printing Co., (Shanghai) Ltd.
Toppan Forms Co., Ltd.
Toppan Forms Operation Co., Ltd.
Toppan Forms (Hamamatsu) Co., Ltd.
Toppan Forms Process Co., Ltd.
Techno Toppan Forms Co., Ltd.
Toppan Forms (Sanyo) Co., Ltd.
Kagawa Business Forms Co., Ltd.
Okinawa Business Forms Co., Ltd.
Toppan Forms (Hokkaido) Co., Ltd.
Toppan Forms Logistics and Services Co., Ltd.
T.F. Company, Ltd.
Toppan Forms (H.K.), Ltd.
Toppan Forms Computer Systems Ltd.
Phoenix Business Systems Ltd.
Well United Supply Ltd.
Everwell Security Printing Co., Ltd.
Manson Computer Form Co., Ltd.
Toppan Forms Card Technologies Ltd.
Toppan Forms (Singapore) Pte. Ltd.
D COMMERCIAL PRINTING
Tosho Printing Co., Ltd.*
Toppan Display Co., Ltd.
Toppan Creative Communications Co., Ltd.
Toppan Adtechs Co., Ltd.
Sobi Calendars Co., Ltd.
Osaka Toppan Display Co., Ltd.
Toppan Osaka Process Co., Ltd.
Kumamoto Toppan Co., Ltd.
Kyushu Product Ltd.
Toppan Idea Center Nishinihon Co., Ltd.
Kannabe Toppan Co., Ltd.
Toppan Aichi Kako Co., Ltd.
Toppan Multicreate Co., Ltd.
Toppan Hokkaido Insatsukako Co., Ltd.
Shin Nihon Seihan Ltd.
Top Planning Ltd.
D PUBLICATIONS PRINTING
Hino Offset Printing Co., Ltd.*
Toppan Prepress Art Co., Ltd.
Toppan Johhoku Printing Co., Ltd.
Toppan Process Co., Ltd.
Toppan Seihon Co., Ltd.
Toppan Graphic Co., Ltd.
Tokyo Computer Type Co., Ltd.
Toppan Seihin Co., Ltd.
Toppan Proof Co., Ltd.
T.M.G. Prepress Toppan Co., Ltd.
Toppan Printing Co. (America), Inc.
Toppan Printing Co. (H.K.) Ltd.
Toppan Servicing Co., Ltd.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan Printing Co. (Australia) Pty. Ltd.
Kouyou Sangyo Ltd.
D PACKAGING
Toppan Label Co., Ltd.
Toppan Containers Co., Ltd.
Toppan Plastic Co., Ltd.
Toppan Packs Co., Ltd.
Toppan Carton Co., Ltd.
Toppan Gravure Prepress Co., Ltd.
Toppan Engineering Co., Ltd.
Toppan Kansai Packs Co., Ltd.
Toppan Captech Co., Ltd.
Toppan Fukuoka Shiko Co., Ltd.
Toppan Saga Yoki Co., Ltd.
Mikkabi Toppan Printing Co., Ltd.
Toppan Miyagi Kako Co., Ltd.
Tamapori Co., Ltd.
Totsudan Shiko Ltd.
Totsudan Unyu Soko Ltd.
San-ei Shiki Ltd.
Gunma Tama Kako Ltd.
Tama Kako Ltd.
Wako Ltd.
PT Toppan Sampoerna Indonesia
PT Toppan Indah Offset Printing
40

D INDUSTRIAL MATERIALS
Toppan Kenzai Tech Co., Ltd.
Toppan Interamerica Inc.
Toppan Printing GmbH
Toppan Printing Co. (UK) Ltd.
D ELECTRONICS
Niigata Toppan Printing Co., Ltd.
Toppan Technical Design Center Co., Ltd.
Toppan Electronics Fuji Co., Ltd.
Toppan Precision Board Ltd.
Toppan Shiga Seimitsu Co., Ltd.
Toppan Electronics, Inc.
Toppan Electronics (Taiwan) Co., Ltd.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Electronics Co., (Singapore) Pte. Ltd.
Others
D CHEMICAL INDUSTRY
Toyo Ink Mfg. Co., Ltd.*
D PUBLISHING
Tokyo Shoseki Co., Ltd.*
Froebel-Kan Co., Ltd.
Toppan Co., Ltd.
Froebel-Kan Hokurikuhanbai Co., Ltd.
D SERVICES
Denshi Media Services Co., Ltd.
Kita-Osaka Shigyo Co., Ltd.
Toppan Logistics Co., Ltd.
CyberMap Japan Corp.
Toppan Security Service Co., Ltd.
Toppan Techno Co., Ltd.
Toppan Group Institute Inc.
Toppan Direct Mail Center Co., Ltd.
Toppan Multisoft Ltd.
Total Media Development Institute Co., Ltd.
Toppan Travel Service Corp.
Toppan and Moak Ltd.
The Institute of Exhibition Art and Technology Co., Ltd.
The Institute of Cultural Communications, Ltd.
Top Rep Ltd.
Toppan Management Systems (S) Pte., Ltd.
Shanghai Toppan Management Systems Software
Development Co., Ltd.
Toppan IPS Co., Ltd.
Image Mall Japan Co., Ltd.
Title Producing Company, Inc.
Toppan Editorial Communications Co., Ltd.
Toppan Hall Co., Ltd.
D SALES
Toppan Cosmo, Inc.
* Companies marked with an asterisk are affiliates. Others are consolidated
subsidiaries.
41

OVERSEAS NETWORK
(As of June 29, 1999)
International Division
1, Kanda Izumi-cho,
Chiyoda-ku, Tokyo 101-0024, Japan
Phone: 81-3-3835-5741
Fax: 81-3-3835-0674
Locally Incorporated Companies
ASIA
D Toppan Printing Co. (H.K.) Ltd.
1, Fuk Wang Street,
Yuen Long Industrial Estate,
Yuen Long, New Territories,
Hong Kong, People’s Republic of China
Phone: 852-2475-5666
Fax: 852-2475-4321
Book, magazine, and commercial printing
D Toppan Printing Co., (Shenzhen) Ltd.
No. 27 Industrial Zone, Chuang Ye Road,
Baoan District, Shenzhen, 518101,
People’s Republic of China
Phone: 86-755-781-2211
Fax: 86-755-780-1262
Book, magazine, and commercial
printing and paper carton packaging
D Toppan Printing Co., (Shanghai) Ltd.
No. 5583 Hu Nan Road, Pu Dong,
Shanghai, 201316,
People’s Republic of China
Phone: 86-21-5822-1212
Fax: 86-21-5822-1543
Manufacture of bank cards, credit cards,
and prepaid cards
Shanghai Sales Office:
Shanghai International Shopping Center,
Room 905, B Building,
527 Huaihai Zhong Road,
Shanghai, 200020,
People’s Republic of China
Phone: 86-21-5306-1354
Fax: 86-21-5306-7296
D Toppan Chunghwa
Electronics Co., Ltd.
1127-3 Hopin Road, Padeh City,
Taoyuan, Taiwan, 334, R.O.C.
Phone: 886-3-364-3300 Ext. 200
Fax: 886-3-364-9922
Manufacture and sales of photomasks for
semiconductors
D Toppan Electronics (Taiwan) Co., Ltd.
17 F-1, No. 171, Sung-Teh Road,
Taipei, Taiwan, R.O.C
Phone: 886-2-27262220 Ext. 616
Fax: 886-2-23466979
Electronic precision components sales
D Toppan Electronics Co.,
(Singapore) Pte. Ltd.
152 Beach Road, #02-07A Gateway East,
Singapore 189721
Phone: 65-392-0326
Fax: 65-392-0832
Electronic precision components sales
D PT Toppan Sampoerna Indonesia
Jl. Raya Cibitung, Desa Telaga Asih,
Kecamatan Cibitung, Kabupaten Bekasi,
Jawa Barat, Indonesia
Phone: 62-21-8900889
Fax: 62-21-88325946
Manufacture of flexible packaging
materials, paper carton packaging
materials, calendars, and other
commercial printing
D Toppan Printing Co., Ltd.
Beijing Representative Office
#1623, Beijing Hotel, Beijing, 100004,
People’s Republic of China
Phone: 86-10-6513-8039
Fax: 86-10-6513-3113
Marketing and liaison
42

D Siam Printing and Packaging Co., Ltd.
543 Soi 9, Moo 4,
Bangpoo Industrial Estate,
Tambon Pragsa, Muang District,
Samutprakarn 10280, Thailand
Phone: 66-2-324-0592/4
Fax: 66-2-324-0883
Manufacture of paper carton and multi-color
process corrugated board
OCEANIA
D Toppan Printing Co.
(Australia) Pty. Ltd.
Level 13, 179 Elizabeth Street,
Sydney, NSW 2000, Australia
Phone: 61-2-9283-5611
Fax: 61-2-9283-5185
Sales and marketing
U.S.A.
D Toppan Printing Co. (America), Inc.
666 Fifth Avenue,
New York, NY 10103, U.S.A.
Phone: 1-212-489-7740
Fax: 1-212-969-9349
Book and magazine printing sales, commercial
printing sales, sales promotion, and copyright
and joint publication negotiation
New Jersey:
1100 Randolph Road,
Somerset, NJ 08873, U.S.A.
Phone: 1-732-469-8400
Fax: 1-732-469-8225
Prepress services and commercial printing
Los Angeles Office:
4551 Glencoe Avenue, Suite 230,
Marina del Rey, CA 90292, U.S.A.
Phone: 1-310-823-0050 Ext. 110
Fax: 1-310-823-0777
Book and commercial printing sales
D Toppan Electronics, Inc.
Advanced Interconnect Division
7770 Miramar Road,
San Diego, CA 92126, U.S.A.
Phone: 1-858-695-2222
Fax: 1-858-695-6823
Manufacture and sales of printed wiring
boards
Electronic Components Division
3032 Bunker Hill Lane, Suite #108,
Santa Clara, CA 95054, U.S.A.
Phone: 1-408-982-0944
Fax: 1-408-982-0953
Electronic precision components sales
and marketing
D Toppan Interamerica Inc.
1131 Highway 155 South,
McDonough, GA 30253, U.S.A.
Phone: 1-770-957-5060
Fax: 1-770-957-6447
Manufacture and sales of interior decor
materials
Irvine Office:
20 Executive Park, Suite 130,
Irvine, CA 92614, U.S.A.
Phone: 1-949-474-8250
Fax: 1-949-474-8253
Sales and marketing
EUROPE
D Toppan Printing Co. (UK) Ltd.
Gillingham House,
38-44 Gillingham Street,
London SW1V 1HU, United Kingdom
Phone: 44-20-7828-7292
Fax: 44-20-7828-5310
European headquarters for sales of interior
decor materials, electronic precision components,
book printing, and marketing
D Toppan Printing GmbH
Immermannstr. 14-16,
D-40210 Düsseldorf, Germany
Phone: 49-211-356648
Fax: 49-211-363688
Interior decor and industrial materials
sales and marketing
Technical Tie-ups with
Foreign Companies
Société Internationale
Pour L’Innovation (France)
Contra Vision Limited (UK)
KMK Lizence Ltd. (Mauritius)
Kliklok Corp. (U.S.A.)
Optigraphics Corp. (U.S.A.)
Scholle Corp. (U.S.A.)
Fort James Corporation (U.S.A.)
Siam Printing and
Packaging Co., Ltd. (Thailand)
Leigh-Mardon Pty. Limited (Australia)
Telstra Corp. Limited (Australia)
Golden Valley Microwave
Foods, Inc. (U.S.A.)
Bull CP8 (France)
Michael Hörauf Maschinenfabrik
GmbH (Germany)
M-Pak Ltd. (UK)
Koninklijke Philips Electronics
N.V. (Netherlands)
Eastman Kodak Company (U.S.A.)
Fort James Operating Company (U.S.A.)
Westvaco Corporation (U.S.A.)
Avery Dennison Corporation (U.S.A.)
Weaver Popcorn Co., Inc. (U.S.A.)
Mondex International Limited (UK)
Texas Instruments Incorporated (U.S.A.)
Toppan Chunghwa Electronics
Co., Ltd. (Taiwan)
43

CORPORATE INFORMATION
(As of April 1, 1999)
Head Office
1, Kanda Izumi-cho,
Chiyoda-ku, Tokyo 101-0024, Japan
Phone: (03) 3835-5741 Fax: (03) 3835-0674
Established
1900
Shareholders’ Investment
¥683,906 million
Common Stock
Authorized—1,200,000,000 shares
Outstanding—699,411,267 shares
Stock Exchange Listings
Tokyo, Osaka, and Luxembourg
Transfer Agent
The Mitsubishi Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan
Number of Employees
33,464
44

Produced and printed in Japan by Toppan Printing Co., Ltd.
Except for the cover, this annual Except report for the was cover, printed this on annual Toppan report Green was Paper,100% printed on recycled 100% recycled paper.
paper.

TOPPAN 1999. 8.!
Printed in Japan