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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
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 and 10: ? Japan’s printing industry has a
Page 11 and 12: ? A large number of companies offer
Page 13 and 14: ? Electronics operations already ac
Page 15: Eco- Creativity To enable us to ful
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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