TOPPAN (7911) Investor Day 2024 summary

Group targets and capital allocation

• FY2025 targets reset to net sales of JPY 1.83tn, operating profit of JPY 100bn and ROE of 5%; next MTP targets ROE of at least 8%.

• Growth businesses are expected to provide 60% of operating profit, up from 51% in FY2023; priorities include GL BARRIER, SX, semiconductors, new profit pillars and improving low-profit businesses.

• Plan JPY 100bn of share buybacks in FY2024, flexible future returns and faster strategic shareholding reductions; target a consolidated net asset ratio of 15% or lower.

Electronics

• FY2025 targets: sales of JPY 309bn and operating profit of JPY 52.5bn, versus FY2023 sales of JPY 266.5bn and profit of JPY 49.5bn; target operating margin of at least 25% by FY2028.

• Upfront investment amortization and FX weigh on FY2024–25; investment is expected to contribute from FY2026, with FY2025 profit also reflecting FX at JPY 140/$.

• Expand FC-BGA capacity to 2.5x FY2022 levels; Niigata and Singapore lines target mass production in FY2026 and FY2027, respectively.

• Target FC-BGA growth in generative AI and network devices, including chiplet packaging; develop glass interposers, glass-core packaging and IOWN 2.0 substrates, with Ishikawa mass production targeted for FY2028 or later.

Living and industry

• FY2025 targets: sales of JPY 589bn and operating profit of JPY 42bn, versus FY2023 profit of JPY 27.4bn; planned margin rises to 7.1% from 5.1%.

• SX packaging targets include JPY 200bn in priority-product sales and 15% mono-material products; vertical integration aims to lift internal film procurement from 25% to 32%, with mono-material products expected to deliver ~10% higher profit than conventional products.

• Overseas packaging sales rose from JPY 60bn in 2019 to JPY 150bn in FY2023; expand supply with Czech, Indonesia and India capacity, supporting overseas packaging and décor profit growth of ~JPY 10bn.

• Overseas décor targets JPY 5.1bn additional profit in FY2025 vs FY2023 and 16% global market share; initiatives include U.S. and German film printing, a Turkey plant and Vietnam investment.

• Complete folding-carton base reorganization during the MTP and review low-profit filling, plastic and label businesses.