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?<br />

A large number of companies offer “multimedia”<br />

as a key part of their strategies<br />

for future growth, but such references to<br />

multimedia are often quite ambiguous.<br />

In what way will Toppan realize the<br />

potential of multimedia?<br />

The broad scope of Toppan’s multimedia<br />

operations extends to related<br />

products, the Company’s customer base,<br />

and partnerships with a diverse range of<br />

companies. In printing and related technologies,<br />

the use of digitization technologies<br />

at the prepress stage is playing an<br />

important role in the reduction of costs<br />

and the provision of shorter turnaround<br />

times. The percentage of products processed by desktop publishing<br />

(DTP) grows each year, and we have steadily reinforced<br />

our ability to respond to that trend. For example, Toppan<br />

moved quickly to promote the shift to the computer-to-plate<br />

(CTP) method through the introduction of direct digital color<br />

proofs (DDCPs). Our success in responding to demand for the<br />

digitization of these types of printed materials has enabled our<br />

smooth transition to multimedia-related activities, including content<br />

creation for CD-ROMs, DVD-ROMs, and the Internet as well<br />

as system development.<br />

Currently, in<br />

fields centered on paperbased<br />

printed products—<br />

commercial<br />

printing and<br />

publications<br />

!<br />

printing—and<br />

in high-technology<br />

fields where<br />

“Maja clothed” by Goya Y Lucientes<br />

(Photo by Joseph Martin)<br />

security systems are required, such as securities and<br />

cards, Toppan is working to respond appropriately to<br />

emerging market trends. At the same time, we are making<br />

rapid progress with the creation of new business<br />

opportunities that transcend the boundaries of<br />

traditional fields. Our multimedia operations, which we<br />

started in April 1996, are the center of these activities.<br />

In multimedia, Toppan is utilizing content creation<br />

expertise and tie-ups with leading multimedia companies<br />

to take advantage of emerging opportunities.<br />

During the year under review, we launched a channel<br />

on Sky PerfecTV—a communications satellite based digital<br />

broadcast service—and we have begun independent<br />

production of programming content and sales of secondary<br />

usage. Also, in conjunction with Hitachi and<br />

Asahi Shimbun, we formed a digital image rights service<br />

company, Image Mall Japan Co., Ltd., and began<br />

the digitization of national treasures and important<br />

cultural assets in the collection of the Tokugawa Museum, as<br />

well as other works of art. We are now marketing these images<br />

over the Internet. Furthermore, in cooperation with such<br />

companies as NTT, Dentsu, Yahoo Japan, and Sharp, we<br />

established CyberMap Japan Corp. which offers an Internetbased<br />

map service, called Mapion. During the year under<br />

review, we also worked with Toshiba and Dentsu to launch<br />

FreshEye, an Internet portal. In addition, in April 1999, we<br />

established the Solution Center, which solves the problems of<br />

customers through the application of digital technologies centered<br />

on our database and network technologies. The center is<br />

contributing to our ability to strengthen relationships with<br />

existing customers in a wide range of fields. These are just a<br />

few examples of how Toppan’s multimedia-related operations<br />

are achieving broad-based growth while becoming a driving<br />

force toward the steady development of our new operational<br />

structure.<br />

Progress in Multimedia<br />

Advanced Virtual Reality<br />

Laboratory opened<br />

Toppan is making rapid progress<br />

with digital content operations,<br />

centered on the development and<br />

production of full-fledged virtual<br />

reality products. In addition to the<br />

high-precision image processing, color management, and<br />

VRML (Virtual Reality Modeling Language) technologies that<br />

we have cultivated over many years, we have succeeded in the<br />

development of real-time 3-D computer graphics technology.<br />

In April 1998, we established the Virtual Reality Laboratory as a<br />

development and production base. The laboratory has a system<br />

that uses three projectors to display 3-D images on a<br />

large-scale spherical screen with a 150-degree lateral field of<br />

view and a 40-degree vertical field of view. Toppan will use<br />

these facilities to provide large-scale virtual reality content creation<br />

for museums and corporate showrooms.<br />

Channel opened on<br />

Sky PerfecTV<br />

The Company initiated broadcast<br />

operations with the launch of a<br />

channel on Sky PerfecTV. Based on<br />

the performance of NHK and other<br />

satellite broadcasting ventures in<br />

Japan, we decided to focus the<br />

programming on high-quality documentaries. Furthermore, we<br />

also offer original programming, such as lifestyle information<br />

programs. In June 1999, we announced the new name<br />

J Document 750, under which we will move ahead with the<br />

production and management of programs that reflect a<br />

stronger emphasis on documentary content.<br />

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