TOPPAN (7911) investor relations material

Financial strategy and capital allocation

• Targeting a 20% reduction in total assets by fiscal 2028 through balance sheet reform, including asset sales, working capital optimization, and consolidation of production bases.

• Aiming for an ROE of 8% in fiscal 2028 by optimizing capital structure, reducing strategic shareholdings to below 7% of net assets, and maintaining a total payout ratio of at least 100%.

• Cash allocation prioritizes growth investments, structural reforms, and stable shareholder returns, with JPY 50 bn in treasury share purchases planned for fiscal 2026.

Segment strategies and growth initiatives

• Information Solutions segment to shift from product-driven to value- and customer-centric model, focusing on recurring high value-added services and digital transformation.

• Living & Industry segment targets high-profit growth via SX (sustainability transformation) strategies, global supply chain synergies, and expansion in both packaging and décor materials.

• Electronics segment to concentrate 90% of FY2026-28 investment on semiconductor packaging, aiming for a 25% sales CAGR and 25% operating margin by FY2031.

Performance targets and structural reforms

• Companywide non-GAAP operating profit targets: JPY 145 bn in FY2028 and JPY 210 bn in FY2031, with ROE rising from 5.4% in FY2025 to 9% in FY2028 and 11.5% in FY2031.

• Structural reforms include withdrawal from low-margin businesses, consolidation of manufacturing sites, and a focus on high-growth, high-margin domains across all segments.

• Portfolio transformation aims for balanced profit contribution from Information Solutions, Living & Industry, and Electronics segments by FY2031.