TOPPAN (7911) Investor Update summary

Electronics Business Overview and Financial Performance

• Fiscal 2024 net sales reached JPY 283.3 billion, with non-GAAP operating profit at JPY 53.4 billion and an 18.9% margin; semiconductor-related sales were JPY 194.8 billion with a 27% margin, and display sales JPY 88.5 billion at a 2% margin.

• Electronics accounted for 16% of consolidated net sales, with a focus on high-value-add semiconductor packaging as a growth driver.

• FY2025 sales are forecast at JPY 259 billion, with a significant profit increase expected in Q4 as new production lines ramp up.

• By FY2030, sales are targeted at JPY 350 billion, with semiconductor-related sales comprising approximately 80% and a non-GAAP operating margin of 30%.

Strategic Focus and Market Direction

• Emphasis on high-end FC-BGA substrates for AI, advanced packaging like glass core substrates, and organic RDL interposers.

• Strategic focus on AI, server CPUs, and network switches, leveraging technical superiority in microfabrication and build-up wiring.

• Plans to launch new manufacturing lines for anti-reflective films and quantum dot materials, and expand automotive light control films.

• Targeting a sales CAGR of 26% for semiconductors and 22% for electronics overall, aiming for JPY 350 billion sales by 2030.

• The company holds the No. 3 market share in high-end switch FC-BGA substrates and is expanding into advanced semiconductor packaging and new materials.

Semiconductor Packaging Business and Market Positioning

• FC-BGA substrates are key, enabling high-speed, multifunctional LSI chips for AI, servers, and automotive.

• High-end applications make up 83% of business, with a global number three position in high-end switch substrates.

• Focus areas include high-end switches, AI accelerators (AI ASICs), and server CPUs, especially Arm-based for power efficiency.