TOPPAN : Medium Term Plan 2028 Presentation

May 14, 2026

TOPPAN Holdings Inc.

1. Review of Previous Medium Term Plan (MTP)

2. New MTP

   1. Vision

   2. Policy, Targets & Strategy

   3. Strengthening Management Foundations

‌Management Indicators (Operating Profit / ROE)

Net sales increased due to M&A, but operating profit decreased in fiscal 2025 due to factors such as increased goodwill amortization and one-time costs as well as removal of the photomask business (Tekscend Photomask) from the scope of consolidation. Solid improvement was seen for non-GAAP ROE.

GAAP operating profit

Non-GAAP operating profit

GAAP operating profit margin

Non-GAAP operating profit margin

‌Management Indicators

Operating profit fell short of the initial plan. SG&A ratio on upward trend. ROE target of 5% achieved but level is low.

‌Results by Segment

Living & Industry and Electronics saw growth, but challenges remain with scaling digital business in the Information Solutions segment.

*Initial plan: Announced in May 2023

Progress made in shift to digital

business but profit contribution yet to be fully realized

• Inputting resources into the digital business resulted in increased sales but upfront costs presented challenges for profit margin growth

• Profitability maintained in existing printing due to

structural reforms

Non-GAAP operating margin

Acquisitions made to expand SX

business and non-GAAP profit increased

• Acquired footprint to create synergies in overseas packaging business. Profit margin improved in Japan due to expansion of SX packaging and reorganization of folding carton business.

• Structural reforms implemented in décor materials business in anticipation of market recovery.

Non-GAAP operating margin

Significant growth in

semiconductor-related business centered on FC-BGAs

• In the semiconductor business, market growth brought expansion for FC-BGAs. Photomask business listed via an IPO.

• In displays, structural reform of the TFT-LCD business led to improved profitability.

Impact of photomask

business IPO

Non-GAAP operating margin

‌Overview

Three key challenges identified for new MTP.

Previous MTP Summary

Challenges

• Net sales:

  Acquisitions drove growth

• Capital efficiency:

Achieved initial ROE target of 5%

Solid improvement in non-

• Operating profit:

  Short of initial target Increase in SG&A ratio

• ROE:

Remains at low level

GAAP ROE

• Information Solutions: Acceleration of shift to digital business and improvement of

• Living & Industry:

  Acquired footprint to expand SX packaging

• Electronics:

Growth of semiconductor business

profit margins

• Living & Industry:

  Creation of global synergies

• Electronics:

Delay in FC-BGA qualification and launch

◼

Raise Business Profitability

◼

Control SG&A Ratio

Enhance Capital Efficiency

◼

‌Companywide Vision

True Value Transformation

Optimizing business, human assets, and

capital to deliver true value to the world

TOPPAN's Purpose & Values

Deliver Value

Harness Talent

Enhance Trust

Protect the Future

• Contributing to social infrastructure through solutions for customers

• Strengthening technology development and new business creation capabilities for future markets

• Optimal allocation of human assets for growth businesses

• Employee health & job satisfaction

• Enhancement of global management

• Enhancement of data security

  • Response to climate change, contribution to resource circulation and harmony with nature

  • Strict compliance and governance

  • Respect for human rights

    Information Solutions

Resolve customer challenges and social issues by providing robust solutions that transform business processes through the integration of real and digital

Enable a society that provides

safety, security and comfort by providing sustainable products globally to contribute to decarbonization and resource circulation

Supply key devices supporting

high efficiency and power saving for semiconductors to contribute to a sustainable global environment and smart society that enriches people's lives

‌Management Indicators & Priority Initiatives

True Value Transformation

Optimizing business, human assets, and capital to

deliver true value to the world

Previous MTP 2025

MTP 2028

Vision 2031

Sustainable growth

Robust pursuit of transformational profitability

enhancement and capital efficiency

Priority Initiatives of MTP 2028

Business Portfolio Transformation to achieve high profitability for each segment

Corporate Reform to control companywide SG&A ratio

Balance Sheet Reform to improve capital efficiency

‌Composition of Operating Profit by Segment

Centered on Priority Growth Businesses, Businesses for Stable Expansion, and Strategic Focus Businesses, we aim to achieve similar levels of profit contribution across all the segments in the medium to long term. We will also drive portfolio transformation by incorporating structural reforms of a certain scale.

total operating

profit

42%

39%

33%

41%

42%

34%

*Excluding photomask business operating profit in FY2023 and FY2025

17%

19%

33%

Operating profit (JPY bn)

FY2025

Percentage of

FY2028 FY2031

(44.2) (42.0) (40.0)

Approx. -JPY 10 bn (Sales: Approx. -JPY 170 bn)

Approx. -JPY 20 bn (Sales: Approx. -JPY 200 bn)

‌Positioning of Each Business

We will create a positive cycle of profit growth by allocating cash generated by Businesses for Stable Expansion to Priority Growth Businesses and Strategic Focus Businesses. In parallel, we will also drive reform of Businesses for Improvement & Transformation.

Strengthen ROIC-based business management

• • Performance management

  • Investment decisions

  • Evaluation

    Priority Initiative 1: Business Portfolio Transformation
    
    

    ‌Increase profits by enhancing competitive advantages for higher profitability, while also improving efficiency and earnings of existing printing businesses.

    Performance Targets

    Business Climate

    • Net

      1,200

    • Non-GAAP Operating Profit (JPY bn) / Margin

      
      
      

      Sales (JPY bn)

      G23.2

      G66.0

      CAGR

      2％

      G85.0

      Advancing AI
      Decreasing Population (Japan)	3. Organizational restructuring
      Growing ID Solutions Market

      1. Homogenization of information

      2. Replacement by AI

      3. Overflow of false information

      1. Reduction of points of contact, 2. Labor crunch

      1. Growth in overseas markets

      2. Global surge in demand for guarantee of authenticity

      6% 8%

      1,000

      800

      600

      400

      200

      100.0

      80.0

      60.0

      40.0

      20.0

      6%

      53.4

      61.0

      78.0

      0

      FY2025 FY2026 FY2028

      0.0

      TOPPAN's Competitive Advantages

      FY2025 FY2026 FY2028

    • Operating Profit Change (JPY bn)

    90

    80

    70 5.0

    10.4

    60

    53.4

    50

    40

    
    
    
    
    

    30

    6.7

    3.8 3.5

    -6.3

    1.5

    78.0

• Deep understanding of business front line allows us to combining real-world and digital solutions for business design, and positioning as a partner who can offer everything from collecting and analyzing primary on-site data to consulting and operational support.

• Ability to deliver secure infrastructures via in-house security and

authentication technologies.

⇒ Deliver high-value-added, sustainable AI-powered solutions.

Strategic Direction

Fine tune strengths

(across real world, digital, and AI)

to increase profitability

© TOPPAN Holdings Inc. 11

Priority Initiative 1: Business Portfolio Transformation

Achieving high profitability and global growth by combining digital

services with a stable business foundation centered on IDs for people.

Establishing a sustainable and high-profit business model by

delivering IoT devices and systems focused on IDs for things.

Performance Targets

Performance Targets

• Net Sales (JPY bn)

300

258.0

CAGR

7％

273.0

• Non-GAAPOperating Profit (JPYbn)/ Margin 10%

  8%

  8%

  
  
  

  30

  • Net Sales (JPY bn)

    35

    30

    CAGR

    18％

    30.0

    • Non-GAAPOperating Profit (JPY bn) / Margin

      -3%

      -15%

      
      
      

      8%

      0

      FY2025 FY2026 FY2028

      0

      FY2025 FY2026 FY2028

      25 22.0

      20 18.3

      15

      10

      5

      0

      Strategy

      Strategy

      FY2025 FY2026 FY2028

      3

      -2

      -7

      FY2025 FY2026 FY2028

      • Grow ID/smart card manufacturing and issuance globally

        • Expand government ID adjacent solutions while also leveraging technical expertise and track record in Japan to secure card manufacturing/issuance business in the growing global market.

      • Secure stable demand in Japan

        • Maintain steady growth of ID/smart card manufacturing and issuance, and DPS business.

      • Increase profitability through delivering industry-specific services

    • Build an IDaaS-based identity infrastructure that handles authentication, authorization, and audit trail.

    • Provide high-value-added service packages that combine media and digital.

• Establish a sustainable profit model by supplying IoT devices and managing IoT operating systems

  • Continue to supply IoT devices such as RFID/ID related devices and material handling equipment.

  • Provide a comprehensive service including management systems for IDs of things.

• Develop industry-specific services in focus areas and expand globally

• Focus areas are smart factories (manufacturing), smart logistics, smart healthcare, and brand protection (for luxury goods).

• Curate comprehensive target industry-specific packages and explore global expansion.

Priority Initiative 1: Business Portfolio Transformation

Offline and digital marketing integrated in proprietary marketing services

to increase profitability and achieve sustainable customer growth.

Transforming to be highly profitable by building a service model centered

6

5

4

3

2

1

0

6%

3%

2%

on BPR and AI, and reallocating resources to complex operations.

Performance Targets

Performance Targets

• Net sales (JPY bn)

140

11G.0

CAGR

• Non-GAAP Operating Profit (JPYbn)/ Margin

  7%

  8%

  
  
  

  127.0

  10%

  • Net sales (JPY bn)

100

CAGR

• Non-GAAP Operating Profit (JPYbn)/ Margin

120

100

80

60

40

20

0

102.0

8％ 15

10

5

0

80 71.7 75.0

60

40

20

0

2％ 77.0

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

Strategy

Strategy

• Combine offline and digital marketing services to create competitive advantage

  • AI is homogenizing the customer experience when only using digital measures, making offline experiences more valuable.

  • TOPPAN has expertise and experience with sales aids that optimize the value of offline customer experience.

  • Develop our integrated digital and offline marketing service to create a competitive advantage.

• Add value by delivering tailor-made solutions for client challenges

  • Increase the size of business deals by combining services in integrated proposals tailored to industry-specific management challenges.

• Boost profit margins through in-house development and AI adoption

• Reduce costs byproportionally reducingoutsourcing andboosting efficiency through AI use.

• Concentrate resources on highly complex difficult tasks that cannot be

  handled by AI alone

  • Moving away from routine tasks that are now commonly being switched to AI, TOPPAN will focus on complex, high-stakes operations in public, financial, and infrastructure sectors that come with regulatory compliance and sophisticated decision making that cannot rely on AI alone for decision making, thus requiring a business design that combines people, systems, and AI.

• Add value through automation made possible with AI-powered

  operational infrastructure and AI operational assurance

  • Deliver high-quality, efficient services via BPR and AI operational assurance.

• Enhance profits by optimizing BPO operational centers

• Move forward with the consolidation of redundant operational functions across

  Priority Initiative 1: Business Portfolio Transformation

  Sub-segment Strategies: Information Solutions
  
  

  ‌Securities & Business Printing

Increase business profitability in Japan, while also enhancing capital

efficiency and establishing solid growth overseas.

Implement measures in both sales and manufacturing to increase

profitability and efficiency in alignment with market contraction.

Performance Targets

Performance Targets

8%

10%

200

150

100

50

144.8 140.0

CAGR

0％

144.0

20

15

10

5

10%

250

200

150

100

50

237.2 220.0

CAGR

-7％

6%

4%

4%

1G0.0 20

15

10

5

0 0

Strategy

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

0

Strategy

FY2025 FY2026 FY2028

0

FY2025 FY2026 FY2028

• Enhance profitability through contract selection/direction

  • Market for business form and securities printing will continue to decline.

  • Leverage synergies to strengthen profit management to phase out supply businesses and other low-margin products while implementing selective order acceptance which will result in a decrease in domestic net sales but improved profit margins.

• Optimize business process and production to reduce fixed costs

  • Standardize contract conditions and work criteria to enhance profitability

  • Enhance capital efficiency and cut costs by consolidating sites and reducing production facilities.

• Establish solid growth internationally

• Capture stable demand in international financial printing such as US/HK IPO related business.

• Enhance profitability through a selective sales strategy

  • Demand for publication and commercial printing will continue to decrease and bottoming out will present a challenging situation.

  • Pursue more favorable terms and carefully selected sales wherever possible.

  • Focus on trading card business that shows promising market growth.

• Reduce fixed costs and optimize invested capital through structural reforms

  • Reduce number of publication and commercial printing facilities.

  • Further restructure operational sites.

    Priority Initiative 1: Business Portfolio Transformation

    Sub-segment Strategies: Information Solutions
    
    

    ‌Transform to high-profit business through SX strategy, built on stable organic growth across global regions.

    Performance Targets

    827.0

    CAGR

    G15.0

    • Net Sales (JPY bn)

      1,000

      • Non-GAAP Operating Profit (JPY bn) / Margin

        Business Climate
        	Advancing circular economy
        	Mainstream market growth
        	Geopolitical risk

        1. Decarbonization and resource circulation

        2. Environmental laws and regulations

        3. Change from linear economy to circular economy

        1. Alignment with economic growth

        2. Stable demand

        1. Cost of raw materials

        2. Supply chain interruptions

        100

        800 72	3.0 8％			80
        600				60	50.8
        400				40
        200				20

        86.0

        0

        FY2025 FY2026 FY2028

        0

        64.0

        FY2025 FY2026 FY2028

        TOPPAN's Competitive Advantages

        • Ability to develop unique SX products that contribute to solving

    • Non-GAAP Operating Profit Change (JPY bn)

  100

  90

  80

  70

  60

  50

  40

  30

  20

  10

  0

  environmental issues

  23.0

  1.6

  5.8

  1.7

  86.0

  50.8

  3.0

  • Global supply chain for deployment of competitive products worldwide

  • Ability to develop global network to reduce procurement risks

    ⇒Establish businesses that increase

    Strategic Direction
    Strengthening profitability through the promotion of SX strategies		Capturing stable demand and creating synergies through global collaboration

    both societal and economic value simultaneously.

    One-time Factors

    Packaging - Japan

    Décor - Japan

    FY2025

    Packaging - Global

    Décor - Global

    FY2028 (Plan)

    Priority Initiative 1: Business Portfolio Transformation

    Segment Strategy: Living & Industry
    
    

    ‌Packaging

Creating high-value-added SX packaging and synergies through vertical integration, on a base of stable organic growth.

Improve quality and launch new factory operations to build towards optimal production locations as well as portfolio expansion and new high-value-added positioning.

Performance Targets

Performance Targets

800

600

400

200

575.G

670.0

CAGR

8％

733.0

80

60 7% 8%

40

20

G% 200 20

150 15

100 10

50 5

0 0

FY2025 FY2026 FY2028

147.0

157.0

CAGR 182.0

7％

FY2025 FY2026 FY2028

0 0

FY2025 FY2026 FY2028

G%

6%

7%

FY2025 FY2026 FY2028

Strategy

Strategy

• Acquire stable revenue through organic growth

  • Tap into stable demand for packaging due to growing populations and economic growth concentrated on APAC regions.

  • Leverage presence in the Americas for steady growth.

• Create high-value-added SX packaging and global supply through vertical integration

  • Develop competitive SX packaging utilizing film forming and mono-material barrier film technologies.

  • Capture global SX demand, starting in Europe where environmental regulations are driving change.

• Improve margins through cost synergy creation

• Reduce costs through global joint procurement of raw materials and increasing proportion of in-house film manufacturing.

• Improve quality and design, and launch operations at new plant in Turkey to increase market share

  • Improve quality and increase pattern development speed to increase customer satisfaction.

  • Advance production in optimal locations with operations at the new Turkey plant.

• Pivot positioning and expand portfolio for high-value-added business

  • Strengthen sales of film-based decorative sheets in addition to conventional paper decorative sheets overseas.

  • Domestically, pivot from positioning as materials provider to designer of spaces to scale by combining tangible products with intangible services.

• Increase profit margins through ongoing cost and revenue optimization

  • Bring ink manufacturing in-house and expand production technologies overseas to reduce costs.

    Priority Initiative 1: Business Portfolio Transformation

    Sub-segment Strategies: Living & Industry
    
    

    ‌Leverage technological competitive advantage to achieve high-margins and high-growth in semiconductor

    packaging business.

    Performance Targets

    Business Climate

    • Net Sales (JPY bn)

      230.0

      186.3

      CAGR

      162.0

      7％

      250

    • Non-GAAP Operating Profit (JPY bn) / Margin

      	Semiconductor market long-term growth
      	Rising technological and quality requirements	3. High-speed transmissions, 4. Energy efficiency
      	FPD panel upsizing
      TOPPAN's Competitive Advantage

      1. Surging AI demand

      2. Expansion of semiconductor packaging market

      1. Upsizing, 2. Ultra-flat surfaces

      1. Demand for surface area / volume at saturation

      2. QDEL market growth

      Excl. advanced semiconductor packaging

      
      
      

      1G% 20% 22%

      200

      150

      100

      50

      0

      60

      50 18%

      24.0

      40 34.1

      30

      20

      10

      0

      15% 16%

      37.0

      FY2025 FY2026 FY2028

      34.1

      21.5

      0.9

      37.0

      (13.0)

      (6.5)

    • Non-GAAP Operating Profit Change (JPY bn)

  FY2025 FY2026 FY2028

  • Ability to develop and supply cutting-edge key devices driven by

    technological superiority.

  • Strong partnerships with customers and material manufacturers who drive technology advancements.

    ⇒ Concentrate resources on the semiconductor (including advanced)

    Strategic Direction

    packaging business.

    FY2025

    © TOPPAN Holdings Inc.

    Photomask IPO Semiconductors

    Next-Generation…

    Next-Generation

    Semiconductors

    Displays

    FY2028(Plan)

    Restructure low profit businesses

17

Priority Initiative 1: Business Portfolio Transformation

4

3

2

1

0

3%

5%

0%

Focusing management resources on semiconductor packaging business to achieve high growth with FC-BGAs and make strategic investments in next-generation products.

Focusing on stable growth of anti-reflective films and establishing foundations for next-

generation businesses, while implementingstructural reforms to phase out display solutions.

Performance Targets

Performance Targets

200

CAGR

178.0

• Non-GAAP Operating Profit (JPY bn) / Margin

  Excl. advanced semiconductor packaging

  • Net Sales (JPY bn)

    60

    CAGR

    52.0

    • Non-GAAP Operating Profit (JPY bn) / Margin

      8％

      13G.8

      60 24% 28.0% 27%

      50 46.4 47.0 4％

      150

      100

      50

      0

      116.0

      23%

      40

      20

      0

      21%

      1G% 40

      30

      20

      10

      0

      FY2025 FY2026 FY2028

      FY2025 FY2026 FY2028

      FY2025 FY2026 FY2028

      FY2025 FY2026 FY2028

      Strategy

      Strategy

      • Maintain high-margins and high-growth with FC-BGAs

        • Target high-end switches, AI ASICs, and server CPUs as key focus areas.

        • Significantly boost sales and profits with high operating rate, including at new lines in Niigata (FY25) and Singapore (FY26).

      • Strategic investment in advanced semiconductor packaging

        • Invest in development and mass production of glass core/interposer technology

        • Prioritize upfront investment during current MTP as strategic investment phase aimed at generating returns during next MTP.

      • Stable growth in other semiconductor related businesses

    • Secure stable growth of OCF, etching parts, and design business.

• Anti-reflective film margin growth

  • Ensure stable production through investment in ultra-wide line (commissioned FY26) and increase high-value-added products through advanced product development.

• Establish next-generation displays (light control devices/QD materials)

  • Light control devices: Expand adoption by establishing de facto standards in the automotive market.

  • QD materials: Establish a business foundation for QDEL displays and perovskite solar cells.

• Implement organization restructuring

• Phase out display solutions. (scheduled FY27)

Priority Initiative 1: Business Portfolio Transformation

‌We plan to invest a total of JPY 500 billion over three years. Investment will be allocated strategically to semiconductor-related businesses in the Electronics segment.

Capital investment in

Businesses for Stable

Business investment

Breakdown of business investment and capital investment in Priority Growth and Strategic Focus businesses across the segments

Expansion and Businesses for Improvement & Transformation

FY26-28 Total

Capital investment in Priority Growth Businesses and Strategic Focus Businesses

JPY 335 bn

Cumulative total

FY26-28

Information

• Security business, system construction, etc.

  Living

• Global packaging

  • Bolstering film business production capacity

  • Enhancing packaging business facilities, etc.

    Electronics

• Advanced semiconductor packaging

  ・Develop production lines from pilots to mass production

• FC-BGAs

・Quality enhancement, etc.

Priority Initiative 1: Business Portfolio Transformation

‌At the same time as raising the value-add of our businesses, we will improve SG&A ratio through measures such as redeployment of personnel, achieved by streamlining and consolidating indirect departments at the holding company and on the business side.

• SG&A Ratio

  (%) 21.0

  20.0

  19.0

  18.0

  17.0

  16.0

  15.0

  14.0

  
  
  

  2015 2017 2019 2021 2023 2025 2028

  • Personnel redeployment in indirect and sales departments of holding company and

    business divisions

  • Streamlining and consolidation of indirect departments

・Consolidate, share and streamline operations and personnel to reduce workload by 30%

・Reduce outsourcing costs

*SG&A ratio improvement includes effects of structural reform

Initiatives to achieve objectives

1. Talent management reform for optimal placements

   • Appropriate deployment through clarification of talent requirements

   • Map the skills of our talent

   • Encourage independent initiative

2. Companywide AI adoption to streamline and enhance operations in indirect departments

   • Accelerate transformation to make management system more

     efficient and sophisticated

   • Construct AI transformation network for companywide

operations 20

© TOPPAN Holdings Inc.

‌We will work to reduce owned assets with a target of reducing total assets by 20% by fiscal 2028.

(JPY bn)

Balance sheet at end of March 2026: 2,560

Total assets

Reduce by 20%

Investment

securities

340

4

Net assets 1,410

(Equity 1,330)

B

Current assets

730

2

FY28

Total assets

Liquidity

on hand 440

1

‌We will implement shareholder returns, balance sheet optimization, and the reduction of strategic shareholdings to achieve ROE of 8% in fiscal 2028.

Cash in

Cash out

Operating cash flow

JPY 450 bn+

Investment cash flow

Approx. JPY 500 bn

Balance sheet reform

Reduce total assets by approx. 20%

Shareholder returns

(Total payout ratio of at least 100%)

Structural reform, etc.

• Basic Policy

  1. Strengthen investment for sustainable growth

  2. Advance structural reform

  3. Provide stable returns to shareholders

• Approach for MTP 2028

  Target ROE of 8% in fiscal 2028 through growth investment, reevaluation of businesses, and balance sheet optimization

  1. Concentrate investment in growth fields and accelerate business shift

  2. Identify low-growth and underperforming businesses and drive structural reforms

  3. Consider total payout ratio while implementing expeditious treasury share purchases

• Shareholder returns with a total payout ratio of 100% as the lower limit (JPY 50 bn of treasury share purchases in fiscal 2026)

• Drive balance sheet reform with target of reducing total assets by 20%

• Reduce strategic shareholdings to less than 7% of consolidated net assets

‌We will achieve an ROE of 8% by fiscal 2028 and 10% by fiscal 2031 by implementing our three priority initiatives.

25→28

CAGR

2.3%

24.7%

15.5%

28→31

CAGR

4.5%

15.4%

13.1%

MTP 2028 Actions

• Enhance marketing capabilities and talent in

  business development

  Strengthen our talent pool to identify hidden customer needs and drive business development

• Increase rate of commercialization

Standardize process of commercialization, increase feasibility, and accelerate early scaling

• Implement focused investing

Make companywide assets transparent to allow for concentrated investment in promising areas

Business development

depts.

R&D depts.

Market perspective

New Business Creation

Technology perspective

IP depts.

IP

Secure competitive edge through prompt establishment of IP rights

Strategic collaboration

Business depts.

Industry perspective

Exploring industry and customer challenges accompanying national policy and market trends

Strengthening Management Foundations

Initiative 1

Establish environment to maximize use of AI and data

• Business-area-specific initiatives

Business process reengineering for increased productivity

Value creation through business transformation

© TOPPAN Holdings Inc. 25

Strengthening Management Foundations

‌Policy for new executive

1 compensation system

1. Recruit and retain highly capable and diverse management personnel who contribute to achievement of management strategies

2. Provide incentives for medium- to longterm increases in the corporate value of the Group and the resolution of social issues

3. Design a system with high levels of fairness, transparency, and rationality

© TOPPAN Holdings Inc.

26

• Fixed ■ Performance-linked bonus ■ Restricted-stock compensation

• Fixed ■ Performance-linked bonus ■ Performance-linked restricted-stock compensation

10%

2 Compensation structure

• Raise the proportion of variable compensation by setting the ratio of fixed to variable compensation at roughly 50:50 for baseline performance

• Performance-linked conditions applied to restricted-stock compensation Current system

3 Evaluation indicators and calculation method for variable compensation

• Evaluation indicators will be the MTP's financial and ESG performance indicators and the calculation method will reflect level of achievement in the payout rate

• We will introduce malus/clawback provisions to ensure transparent and fair risk management

Performance-linked bonus

(Short-term incentive)

=

Baseline amount by

position

×

KPI-based payout rate

Performance-linked

restricted-stock

compensation

(Long-term incentive)

=

Baseline amount by

position

×

KPI-based payout rate

50～150%

50～150%

＊Revision of the performance-linked restricted-stock compensation system is subject to approval of the relevant proposal at the 180th Ordinary General Meeting of Shareholders to be held in June.

Strengthening Management Foundations

・Defining required talent and skills and mapping the skills of employees to shape a talent portfolio aligned to business

・Raising business competitiveness by securing the talent needed for business strategy through talent management, including recruitment, development, and deployment

Basic policy of MTP

Priority initiatives for human capital

Main activities

Vision

Business portfolio transformation

Corporate reform

1. Optimizing the talent portfolio and enhancing career autonomy

   Raising talent and organizational

2. competitiveness by pursuing the

   "deshika" strategy focused on unique

   strengths*

   Strengthening talent base and

3. governance to support sustainable growth of global business

   • Personnel plans aligned with business strategies

   • Enhancing effectiveness of succession planning

   • Supporting career autonomy for all employees

   • Using AI for qualitative improvement of work style

   • Recruiting talent needed for business

   • Developing talent needed for business

   • Developing and expanding global talent

   • Strengthening personnel infrastructure of overseas subsidiaries

Stock of talent needed for business

Talent management that enables talent flow aligned to business strategy

Talent base to support global business

Sustainable corporate growth

Enhancing

competitiveness

Achievement of MTP targets

4

Creating the foundations for human capital management

(Culture conducive to taking on challenges / diverse talent / diverse work styles, working environments providing safety and peace of mind)

*Deshika: A differentiation strategy to strengthen the TOPPAN Group as an organization by honing the unique strength of individuals 27

Strengthening Management Foundations

Targeting net zero Scope 1, 2, and 3 greenhouse gas (GHG) emissions in fiscal 2050, we are working proactively to streamline energy use, manage energy, and use renewable energy.

54.6% reduction by fiscal 2030; net zero by fiscal 2050 (base year=fiscal 2017)

• GHG emission reduction

  GHG Emission Reduction Targets

  Scope 3

  Digital transformation, proactive adoption of low-carbon materials, and cooperation with suppliers

  6,904 kt

  16.5%

  reduction

  54.6%

  reduction

  Net zero

  5,323 kt

  3,135 kt

  Scope 1&2

  （1,000 t-CO2e）

  Energy-saving, procurement of low-carbon energy and renewable energy

  1,552 kt

  41.8%

  reduction

  54.6%

  reduction

  Net zero

  904 kt

  705 kt

  2017年度	2025年度	2030年度	2050年度	2017年度	2025年度	2030年度	2050年度
  (Base year figure)	(Forecast)

  28

  Strengthening Management Foundations

  Natural Capital

  Activities based on TOPPAN Group Environmental Vision 2050

  
  
  

  ‌Contributing to Resource Circulation

Aiming for zero waste emissions in fiscal 2050 by reducing discharge and

reusing and recycling waste

• Final landfill disposal reduction

  Aiming for a society that coexists in harmony with nature, balancing conservation with socioeconomic activity, by reducing threats to biodiversity and working to preserve land and marine environments

• Contributing to conservation of regions in which humans

  coexist with nature both inside and outside the Group

  Reduce by 60% by fiscal 2030 (base year=fiscal 2017)

  KPI

Fiscal 2030: Contribute to the conservation of regions in which humans coexist with nature both inside and outside the Group, covering an area equivalent to 10% of the total area of manufacturing sites

43%

60%

• Confirming legality in procurement of paper raw materials

Fiscal 2025 onwards: 100%

FY2017 FY2025 FY2030

• Waste plastic material recycling rate increase

• Aiming for zero deforestation and promoting use of sustainable forest resources

• Conducting legality surveys of paper suppliers across the Group to complete confirmation of all suppliers

Increase by 9%pt by fiscal 2030 (base year=fiscal 2017)

Implementing water-saving measures and preventing pollution via water discharge at sites with high water stress to contribute to optimal water use and improved water quality

• Reducing water withdrawal at sites with high water risk

  Fiscal 2030: Achieve targets for at least half of relevant sites

  KPI

FY2017 FY2025 FY2030

9%pt increase

*Target sites from fiscal 2026 onwards are being reviewed in conjunction with business reorganization

Fiscal 2030: Zero cases of action taken by authorities due to

exceeding regulatory threshold values

• Contributing to water quality improvement through appropriate water discharge quality

29

Strengthening Management Foundations

Activities based on TOPPAN Group Environmental Vision 2050

‌