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

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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
Page 1 and 2: A N N U A L R E P O R T 1 9 9 9 Top
Page 3 and 4: FINANCIAL HIGHLIGHTS Toppan Printin
Page 5 and 6: Toppan is working to establish a fo
Page 7 and 8: With only one year remaining until
Page 9: ? Japan’s printing industry has a
Page 13 and 14: ? Electronics operations already ac
Page 15 and 16: Eco- Creativity To enable us to ful
Page 17 and 18: Securities and Cards In this field,
Page 19 and 20: Industrial Materials Toppan has use
Page 21 and 22: Management’s Discussion and Analy
Page 23 and 24: Cash Dividends per Share (¥) 15 10
Page 25 and 26: Toppan Printing Co., Ltd. and Subsi
Page 27 and 28: Liabilities and Shareholders’ Inv
Page 29 and 30: CONSOLIDATED STATEMENTS OF SHAREHOL
Page 31 and 32: NOTES TO CONSOLIDATED FINANCIAL STA
Page 33 and 34: Cash and Cash Equivalents For purpo
Page 35 and 36: The aggregate annual maturities of
Page 37 and 38: 1997 Millions of yen Printing Other
Page 39 and 40: Board of Directors and Auditors 38
Page 41 and 42: Hiromichi Fujita Kenji Ejima Naoki
Page 43 and 44: D INDUSTRIAL MATERIALS Toppan Kenza
Page 45 and 46: D Siam Printing and Packaging Co.,
Page 47 and 48: Produced and printed in Japan by To

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