TOPPAN : Transcript for Fiscal 2025 Results Briefing & Medium Term Plan Presentation

Fiscal 2025 Results Briefing & Medium-Term Plan Presentation May 14, 2026

Satoshi Oya Representative Director, President & COO

Takashi Kurobe Director, Senior Managing Executive Officer & CFO

Kazunori Katsumura Managing Executive Officer, Electronics

In attendance at today's briefing are Satoshi Oya, Representative Director, President & COO, and Takashi Kurobe, Director, Senior Managing Executive Officer & CFO, from TOPPAN Holdings; and Kazunori Katsumura, Managing Executive Officer, Electronics, TOPPAN Inc.

Today, CFO Kurobe will first provide an overview of the full-year financial results for the fiscal year ended March 2026 and an outlook for the fiscal year ending March 2027. Then, COO Oya will explain the Medium-term Plan 2028. After that, we will have a question-and-answer session. The entire event is expected to last approximately 90 minutes.

The presentation materials are available under Materials for Investor Briefings in the Investors section of the TOPPAN website.

Before we begin, we would like to remind everyone that, in the following discussion, we may make forward-looking statements based on our current expectations, all of which are subject to risks and uncertainties. We would like you to kindly understand in advance that actual results may differ from the projections.

Mr. Kurobe will now give an explanation.

Overall

• Companywide sales increased by 5% due to the addition of the Sonoco TFP business and other new entities to consolidated results.

• Operating profit decreased by 21% due to underperformance of food packaging in North America, a delay in the recovery of earnings in the FC−BGA business, and the removal of Tekscend Photomask (TPC) from consolidated results from H2.

• Non−GAAP profit excluding M&A−related and other costs decreased by 3.5%. Information & Communication

• Sales and operating profit showed a slight decrease. Although textbook sales declined, growth was seen for areas such as digital business and smart cards, resulting in generally flat growth overall.

  Living & Industry

• Sales increased significantly due to the addition of the TFP business and other new entities, but profit decreased due to factors such as one−time acquisition− related costs and a slump in North American food packaging demand. Non−GAAP operating profit increased substantially.

  Electronics

• Profit decreased significantly due to the removal of Tekscend Photomask (TPC) from the scope of consolidated results. The FC−BGA business is on a recovery trend with an increase in the proportion of high−value−added products.

- Progress made in reconfiguring the business portfolio, largely flat−growth for non−GAAP earnings. ROE of more than 5% achieved.

TOPPAN Holdings Inc. 3

I will give an explanation of the financial results for the fiscal year ended March 2026. Please take a look at page three.

Consolidated net sales totaled JPY1,805 billion, up 5% YoY, while non-GAAP operating profit, excluding M&A-related expenses and other items, declined by 3.5% to JPY94.1 billion. Non-GAAP operating profit fell approximately JPY3 billion short of the revised plan announced at the time of the interim results. The main reasons for the underachievement are that, although the performance in the Information & Communication segment exceeded the plan, in the Living & Industry segment, demand for packaging in North America was sluggish, and the manufacturing with a slower takt time for FC-BGAs in the Electronics field had a negative impact.

ROE, which has been designated as a key indicator in our medium-term plan, was 5.4% on a non-GAAP basis and 4.9% on a GAAP basis, largely meeting our target of 5%. The Company repurchased JPY30 billion of its own shares as planned, and will pay a dividend of JPY58 per share, an increase of JPY2 YoY.

- Profit increased in growth businesses but decreased overall due to TPC's removal from the scope of consolidation.

TPC

Erhoeht-X

businesses,

others

Infrastructure

Cyclical

businesses

97.6 method

Impact of bonus

provision period

+14.0

+6.0 94.1

84.5 standardization

−13.1

+0.1 costs

development +5.3

−5.4

Semiconductors −4.7 Existing

−0.3

Foreign

exchange impact

−5.4

transition to equity

Japan SX / Overseas Living

(JPY bn)

Fiscal 2024

Non-GAAP operating profit

Fiscal 2025

Non-GAAP operating profit

*Due to the change in accounting policy from fiscal 2025, fiscal 2024 results presented here have been retrospectively adjust ed.

TOPPAN Holdings Inc. 4

Please move on to page four. I will discuss YoY changes of non-GAAP operating profit.

First, since Tekscend Photomask became an equity-method associate in H2, operating profit of JPY84.5 billion, which is the operating profit excluding profits of JPY13.1 billion in H2 from the photomask business, is the starting point. The effect of unification of the bonus reserve period and infrastructure development costs decreased operating profit by JPY5.4 billion and JPY0.3 billion, respectively.

In each of the growth businesses, Erhoeht-X and Japan SX/overseas living added JPY5.3 billion and JPY14 billion, respectively, while semiconductors lost JPY5.4 billion. Profit in cyclical businesses decreased by JPY4.7 billion, while existing businesses were positive JPY6 billion due to the contribution of restructuring effects. Due to these factors, non-GAAP operating profit was JPY94.1 billion.

- Secure media business saw growth and achieved plan. Digital business improved profit margins and contributed to profits.

TOPPAN Holdings Inc. 5

I will explain the situation by segment. Please move on to page five.

Net sales in the Information & Communication segment remained unchanged from the previous year at JPY923.2 billion, while non-GAAP operating profit increased by 3.2% to JPY53.4 billion. Non-GAAP operating profit in the segment exceeded the revised plan of JPY49.7 billion, which was announced at the interim results briefing, and sub-segments other than the digital business exceeded the revised plan.

By sub-segment, Digital Business posted higher sales due to the newly consolidated HID and dzcard in the overseas security business and contributions from the government ID business, as well as growth in the domestic security and marketing DX businesses. Profit increased due to higher sales in each business.

In BPO, sales decreased due to the impact of large projects in the previous fiscal year, but excluding one-time gains, sales would have increased, due to focusing on winning orders for continuous projects in the financial and public sectors. Although profit for the full year decreased, it has improved since H2.

In Secure Media, net sales increased due to strong sales of smart cards and DPS. Profit increased due to higher sales and improved profitability of DPS.

In Communication Media, net sales declined due to continued market contraction in publication and commercial printing and the cyclical nature of the textbook business. Profit decreased due to the impact of textbooks, despite improvements from structural reforms in publication and commercial printing.

- Overall profit increased with the business being steadily scaled. Non−GAAP profit increased in all categories.

TOPPAN Holdings Inc. 6

Page six is a summary of Erhoeht-X results for your reference.

As for the full-year results, overall sales increased due to significant growth in the marketing DX and security businesses. Profit also increased due to steady progress in scaling up, and profits in all categories increased on a non-GAAP basis as well.

- Sales and profit increased significantly due to the contribution of large −scale M&A, but profit fell short of plan due to worsening market conditions.

TOPPAN Holdings Inc. 7

Next is the results of Living & Industry. Please move on to page seven.

Sales in the Living & Industry segment increased by 31.4% YoY to JPY723 billion, and non-GAAP operating profit increased by 30.5% to JPY50.8 billion, falling short of the revised plan for both packaging and décor materials.

In the Packaging business, overseas sales increased due to the newly consolidated SONOCO TFP business and Irplast, as well as steady sales of films in Asia and barrier films in Europe. Profit decreased due to sluggish demand for food packaging in North America caused by inflation, the impact of the delay in the full-scale adoption of SX packaging by European customers, and one-time M&A expenses. As for Japan, sales increased due to steady sales of SX packaging, but profit remained flat due to the impact of equipment trouble in H1.

In the Décor Materials business, overseas, sales increased due to strong sales of decorative sheets in Europe and South America, and profit increased due to the effects of cost reductions and structural reforms. In Japan, both sales and profit increased due to an increase in the market share of decorative sheets and growth in the spatial design business.

Packaging Overall

-Sales by Region-

SX Packaging

-Sales by Region-

*Excluding SX packaging sales of Sonoco TFP business

- Large−scale acquisitions have contributed to a significant increase in sales overseas. SX packaging expansion is focused on Europe and Asia.

TOPPAN Holdings Inc. 8

Please move on to page eight. This is the sales of packaging and SX packaging by region.

In the overall packaging business on the left, the overseas ratio rose from about 35% to the mid-50% due to the consolidation of SONOCO's TFP business in the Americas and the new consolidation of Irplast in Italy in Europe, as well as increased demand for barrier films overseas.

On the right side, strong demand overseas, especially in Europe and Asia, is driving SX packaging sales growth. We have designated the global market as a growth area and will continue to expand, focusing on SX packaging, in which we have a competitive advantage.

- Although sales and profit declined due to Tekscend Photomask being removed from the scope of consolidation , FC−BGAs have been recovering rapidly since H2 as we take in demand for high−value−added products.

TOPPAN Holdings Inc. 9

Next is the Electronics segment. Please move on to page nine.

Net sales in the Electronics segment declined by 34.2% YoY to JPY186.3 billion. Non-GAAP operating profit decreased by 36.1% to JPY34.1 billion, which was below the plan. Foreign exchange rates had a negative impact of approximately JPY0.7 billion, mainly in the semiconductor business.

In the Semiconductor business, overall sales and profit declined due to the impact of the deconsolidation of Tekscend Photomask, and the revised plan was not achieved. However, a comparison of Q4 earnings with that of Q3 shows a 17% increase in net sales and a 25% increase in profit, indicating a steady recovery.

In the focus area of FC-BGAs, both sales and profit in Q4 exceeded the level of the same period last fiscal year due to an increase in the proportion of AI-related and other high-value-added products. Regarding the production with a slower takt time as reported in the last financial results briefing, measures have been implemented and are steadily improving. We are on track to return to full production in June. The current level of inquiries remains high, and we are firmly committed to responding to customer needs.

On the other hand, in the Display business, both sales and profit declined, but the revised plan was achieved. Although sales declined significantly due to the withdrawal from the TFT-LCD front-end process business, profit improved as a result of structural reforms in display solutions.

- Continued improvement for semiconductor−related business centered on FC−BGAs.

TOPPAN Holdings Inc. 10

Please move on to page 10. This is the quarterly performance excluding Tekscend Photomask. You can see that, after bottoming out in Q1, the performance of our semiconductor business, centering on FC-BGAs, has been steadily recovering.

That concludes the summary of the results for each segment.

O Gross profit margin:

Worsened by 0.5% point. Proportion of high−value−added items in product mix declined due to factors such as TPC's removal from the scope of consolidation, a delayed recovery for FC− BGAs, and slow demand for food packaging in North America.

O SG&A expenses:

SG&A ratio increased by 0.7% point to 19.8%. The main cause was an increase due to new additions to the scope of consolidation.

O Non−GAAP operating profit:

Decreased by JPY 3.5 billion. Profit decreased due to earnings from core operations being unable to offset factors pushing profit down, such as TPC's removal from the scope of consolidation (−JPY 13.1 billion) and the impact of the standardization of bonus provision period (−JPY 5.4 billion).

O Non−operating income/expenses:

Equity in earnings of affiliates increased (+JPY 5.8 billion) due to TPC becoming an equity− method associate. Despite an increase in interest paid due to an increase in borrowings associated with acquisitions, non−operating income increased to positive JPY 8.6 billion (positive JPY 4.5 billion in previous year).

TOPPAN Holdings Inc. 11

Please move on to page 11. I will explain the main points of the income statement here.

Gross profit deteriorated by 0.5 points for the year. This was due to the deconsolidation of Tekscend Photomask, a delayed recovery of FC-BGAs, and a slowdown in demand for food packaging in North America. The ratio of SG&A expenses increased 0.7 points. The increase is mainly due to new additions to consolidation results. Non-operating income and expenses expanded from a positive JPY4.5 billion in the previous fiscal year to a positive JPY8.6 billion. The main factors were the impact of making Tekscend Photomask an equity-method associate and a JPY5.8 billion increase in equity in earnings of affiliated companies.

⃝ Cash & deposits

Decreased mainly due to payment for acquisition of Sonoco TFP business.

⃝ Inventories

Increased mainly due to acquisition of Sonoco TFP business.

⃝ Intangible assets

Sonoco TFP business goodwill, etc.

⃝ Short−term borrowings, Long−

term Borrowings and Bonds/convertible bonds

The change is due to converting short−term financing borrowed in association with acquisitions into long− term financing.

⃝ Treasury shares Decreased due to cancellation.

⃝ Valuation difference on available−for−sale securities

Decreased due to divestment of investment securities

• Investment securities Number of stocks held

End of March 2025: 174 stocks

End of March 2026: 156 stocks

(Following the sale of some or all of shareholdings of 36 stocks)

→ Results for year ended March 2026 Extraordinary income: JPY 54.2 billion Extraordinary losses: JPY 1.1 billion

Ratio to net assets (including deemed−owned shares): 12.3%

TOPPAN Holdings Inc. 12

Please move on to page 12. The consolidated balance sheet as of March 31, 2026, is shown in the table here. The acquisition of SONOCO's TFP business and the conversion of Tekscend Photomask into an equity-method associate are the main reasons for the change, but since there have been no major changes since the announcement of the Q3 results, I will skip a detailed explanation.

Please move on to page 13.

As a result of the sale of strategic shareholdings as planned, the ratio to consolidated net assets as of March 31, 2026, was 12.3%, achieving the target of less than 15% set in the medium-term plan. We will continue divestment of strategic shareholdings and improve the efficiency of our assets. In addition, under the new medium-term plan to be launched this fiscal year, we aim to achieve less than 7% by the end of March 2029.

That concludes the results for the fiscal year ended March 2026.

(JPY bn)

*The periods for treasury share purchases are May 15, 2025 to May 14, 2026 for fiscal 2025 and May 15, 2026 to May 14, 2027 fo r fiscal 2026 and are not aligned with the fiscal year.

TOPPAN Holdings Inc. 15

Next, I will explain the financial forecast for the fiscal year ending March 2027. Please move on to page 15.

For the current fiscal year, full-year net sales are expected to increase by 6.6% YoY to JPY1,925 billion, non-GAAP operating profit to increase by 7.3% to JPY101 billion, non-GAAP net profit to increase by 5.2% to JPY75 billion, and non-GAAP ROE to be 5.7%. As per today's timely disclosure, the Company will repurchase JPY50 billion of its own shares this fiscal year.

(JPY bn)

TOPPAN Holdings Inc. 16

Next is the forecast by segment. Please move on to page 16.

In the Information & Communication segment, net sales are expected to increase by 4.6% YoY to JPY966 billion, with non-GAAP operating profit up 14.2% to JPY61 billion. In the Living & Industry segment, net sales are expected to rise by 14.4% to JPY827 billion, with non-GAAP operating profit up 26% to JPY64 billion. In the Electronics segment, net sales are expected to decline by 13% to JPY162 billion, with non-GAAP operating profit down 29.6% to JPY24 billion.

- Profit is expected to increase as the impact of TPC's transition to an equity−method associate is offset by

reduction in one−time costs and growth of respective businesses.

TPC

transition to

equity

Decrease in one-time M&A costs for Living

Living

+9.0 -7.2

Electronics

+9.5

Adjustment,

-4.1

method

Information

+3.0

Impact of bonus

provision period standardization

+5.4

+4.3

Advanced semiconductor packaging

-1.3

Fiscal 2025

Non-GAAP operating profit

Fiscal 2026

Non-GAAP operating profit

TOPPAN Holdings Inc. 17

Please move on to page 17. This is YoY changes in operating profit.

Starting from JPY81.1 billion excluding the impact of TPC's conversion to an equity method associate, the unification of the bonus reserve period had a positive impact of JPY5.4 billion. In the business segments, Information & Communication will add JPY4.3 billion, and Living & Industry will add JPY3 billion due to the decrease in M&A-related one-time expenses. Other business growth is expected to add JPY9 billion.

In Electronics, there is a negative impact of JPY7.2 billion due to development costs for advanced semiconductor packaging, but excluding these costs, overall growth in Electronics, mainly in semiconductors, will be positive JPY9.5 billion. We expect a negative JPY4.1 billion in adjustment expenses in total, including a negative JPY2.5 billion due to the reclassification of expenses with the Information & Communication segment as a result of the integration of the three companies. Due to these factors, non-GAAP operating profit is expected to be JPY101 billion.

Businesses redefined to accelerate portfolio transformation

• Previous sub-segments: FY2025 results (JPY bn) ■ New sub-segments: FY2025 results (JPY bn)

TOPPAN Holdings Inc. 18

Please move on to page 18. Before we get into the explanation of the Information business, we have reviewed its sub-segments, so I will explain them first.

The classification up to the previous fiscal year is as shown on the left side. In the current fiscal year, businesses previously under Communication Media will be moved to the Security, IoT Solutions, Marketing, BPO, Securities & Business Printing, Information Printing, and Information (Other) sub-segments. There will be seven in all.

The name of the segment has also been changed to Information Solutions. Accordingly, the businesses within each sub-segment have been reclassified based on the new definitions. Please check this page for the main businesses that will be reclassified.

1000

• Segment Net Sales (JPY bn)

  • Segment Operating Profit (JPY bn)/ Margin

    900.0

    9 5.5 9 3.

    966.0

    						Sub-segment	Forecast
    						Security
    						IoT Solutions
    						Marketing
    						BPO
    Sub-segment	Net sales	% of sales	GAAP operating profit	Non-GAAP operating profit
    Information overall	966.0 (+42.7)	100%	Approx. 6% (+9.5)	Approx. 6% (+7.1)
    Security 258.0 (+36.6) 27% Approx. 7% (+4.2)				Approx. 8% (+3.4)		Securities & Business Printing
    IoT Solutions 22.0 (+3.6) 2% Approx. −5% (+1.5)				Approx. −3% (+1.9)
    Marketing 119.0 (+16.9) 12% Approx. 8% (+3.0)				Approx. 8% (+2.6)
    BPO 75.0 (+3.5) 8% Approx. 3% (+1.6)				Approx. 3% (+1.3)		Information Printing	contracting market and reduced volume
    Securities & Business Printing 140.0 (−5.5) 14% Approx. 9% (+3.8)				Approx. 11% (+3.4)
    Information Printing 220.0 (−16.9) 23% Approx. 4% (−4.2)				Approx. 4% (−5.0)
    Information (Other) 132.0 (+4.6) 14% Approx. 4% (−0.4)				Approx. 4% (−0.5)		Information (Other)	19

    • Revenue growth in overseas governmental ID business by leveraging TOPPAN's global infrastructure

    • Growth of digital services and stable contracts for smart cards and DPS in Japan

    • Revenue growth through expansion of bundled services such as diagnostic test management and traceability, where IoT devices and systems are combined

    • Increased sales and shift towards high−profit business with high− added−value contracts based on solving clients' business challenges

    • Enhanced profit margin by using AI to increase productivity

    • Increased contracts for complex tasks specific to public, financial, and infrastructure industries. Service model based on BPR and AI.

    • Enhanced profit margin by standardizing common work processes and reducing low−profit operations

    • Improved profitability through contract selection

    • Increased revenue overseas through IPO related printing and US election solutions

    • Strategic selection of contracts to improve profitability amidst

    • Continue to consider production equipment optimization and consolidation of sites

    • Reduced profits due to cyclical nature of textbooks

    70 Non-GAAP operating profit 8.0%

    48.9 51.7 53.4 61.0

• Sub-segment Forecast

  900

  800

  700

  600

  500

  400

  300

  00 100

  0

  60

  50

  40

  30

  20

  0 0

  FY 3 FY 4 FY 5 FY 6(Plan)

  %

  %

  5%

  %

  FY23 FY24 FY25 FY26(Plan)

  Non-GAAP Operatin Profit Operatin Profit

  OP Mar in

  Non-GAAP OP Mar in
  
  

  6.0%

  4.0%

  2.0%

  0.0%

  • Sub-segment Net Sales and Operating Profit

    *(Change) / Unit: JPY bn

    TOPPAN Holdings Inc.

    I will explain the forecast by segment. Please move on to page 19.

    As shown in the sub-segment sales and profit in the lower left-hand corner, we will compensate for the decrease in profit from information-related printing by expanding earnings in other sub-segments. We will focus on the segments that are expected to show large increases in non-GAAP operating profit.

    The Security sub-segment will leverage its global foundation to expand overseas sales in the government ID business. As for Japan, we will promote growth in digital services and obtain stable orders for smart cards and DPS. The Marketing business will promote sales growth of high value-added projects and improvement of profit margins through the use of AI by making integrated proposals based on the client's business issues.

    In Securities & Business Printing, we expect sales growth from IPO-related orders overseas and US election solutions. In Information Printing, we will continue to study the optimization of production facilities and consolidation of bases, in parallel with strategic order selection to improve profitability.

    Living & Industry: Fiscal 2026 Forecast

    Growth of both revenue and profit, driven by steady growth in overseas business and decrease in one −time M&A−related costs

• • Segment Net Sales (JPY bn)

    00

    827.0

    723.0

    537.4

    550.

    800

    700

    600

    500

    400

    300

    200

    00 0

    FY23 FY24 FY25 FY26(Plan)

• Segment Operating Profit (JPY bn)/ Margin

  Non-GAAP operating profit

  32.4 38.9 50.8 64.0

  70 0.0%

  7%

  %

  7%

  8% 8.0%

  6.0%

  4.0%

  2.0%

  0.0%

  60

  50

  40

  30

  20

  0 0

  FY23 FY24 FY25 FY26(Plan)

  Non-GAAP Operatin Profit Operatin Profit

  OP Mar in Non-GAAP OP Mar in

  • Sub-segment Net Sales and Operating Profit *(Change) / Unit: JPY bn

    Sub-segment	Net sales	% of sales	Overseas sales %	GAAP operating profit	Non-GAAP operating profit
    Living & Industry overall	827.0 (+104.0)	100%	-	Approx. 6% (+16.4)	Approx. 8% (+13.5)
    Packaging	670.0 (+93.8)	81%	55%	Approx. 6% (+14.1)	Approx. 8% (+11.4)
    Décor Materials	157.0 (+10.2)	19%	65%	Approx. 7% (+2.3)	Approx. 7% (+2.2)

    Sub-segment	Forecast
    Packaging	Irplast to full−year earnings, growth of barrier films in Europe and organic growth in Asia. Continued expansion of SX packaging also.
    Décor materials

    • Sales growth due to contribution of TFP business and

    • Increased profits from sales expansion and reduction of M&A related one−time costs (+JPY 7.8 bn)

    • Overseas: Increased revenue and profits from sales growth due to market recovery and cost reducing measures such as bringing ink manufacturing in −house

    • Japan: Increased sales and profits from scaling spatial design business

  • Sub-segment Forecast

    • Sales by Region - Packaging Overall

      400

  • Sales by Region - SX Packaging

    350

    300

    250

    200

    50

    00 50

    0

    Japan Oversea total US Europe Asia, others

    TOPPAN Holdings Inc.

    FY25 FY26
    
    

    40

    20

    00 80

    60

    40

    20

    0

    SX 33%

    Japan Oversea total US Europe Asia, others

    FY25 FY26
    
    

    20

    Please move on to page 20. This is the forecast for Living & Industry. As shown in the table above right, we expect to increase sales and profit in both the packaging and décor materials businesses.

    In Packaging, net sales are expected to increase due to the TFP business and Irplast's contribution to the full-year results, the expansion of production at the Czech plant for barrier film in Europe, and organic growth in Asia, while SX packaging is also expected to continue to expand. Profit is expected to increase due to a decrease in the previous fiscal year's one-time M&A-related expenses of JPY7.8 billion and higher profit resulting from sales expansion.

    In the Décor Materials business, we expect profit improvement as market conditions in Europe and the Americas are gradually recovering, and we will continue to expand overseas sales and implement cost reduction measures such as the in-house production of inks.

    Electronics: Fiscal 2026 Forecast

    Profit decrease due to deconsolidation of TPC and rising R&D costs for advanced semiconductor packaging, but significant increase in profit for FC−BGA

2 .5

8 .3

2.0

• • Segment Net Sales (JPY bn)

  • Segment Operating Profit (JPY bn)/ Margin

• Sub-segment Net Sales and Operating Profit

  *(Change) / Unit: JPY bn

  300

  283.3

  60 Non-GAAP operating profit

  49.8 53.4 34.1 24.0

  Sub-segment	Net sales	% of sales	GAAP operating profit	Non-GAAP operating profit
  Electronics overall	162.0 (-24.3)	100%	Approx. 15% (-9.7)	Approx. 15% (-10.1)
  Semiconductors	116.0 (−24.4)	70%	Approx. 21% (−8.6)	Approx. 21% (−8.9)
  (Excl. advanced packaging)	−	−	Approx. 28%	Approx. 28%
  Displays	46.0 (+0.1)	30%	Approx. 1% (−1.0)	Approx. 1% (−1.2)

  24.0%

  250

  200

  50

  00

  50

  G%

  G%

  8%

  5%

  22.0%

  40

  20.0%

  308.0%

  206.0%

  04.0%

  50 0

  0

  2.0%

  FY23 FY24 FY25 FY26(Plan)

  Non-GAAP Operatin Profit

  Operatin Profit
  
  

  Sub-segment	Forecast
  Semiconductors
  Displays

  • Decreased revenue and profit due to impact of TPC changing to equity method associate.

  • New Niigata line to contribute production of FC−BGAs, and increase in proportion of AI−related products to significantly increase sales and profits.

  • Cost increase due to acceleration of advanced packaging R&D

  • Increased revenue and profit from installation of wide line for anti−reflective film

  • Declining revenue and profits for color filters as business downsizes

• Sub-segment Forecast

  FY23 FY24 FY25 FY26( )

  OP Mar in Non-GAAP OP Mar in
  
  

  • Non-GAAP Operating Profit of Semiconductor Business Excluding Photomasks from Last Year and Advanced Packaging This Year

34.

.4

2

24.0

- 3

( .2)

(7.3)

40

35

30

25

20

5

0 5

0

FY25

TPC

FY25(E:-TPC)

Advanced Packa in R D

Seniconductors

Displays

FY26(Plan)

TOPPAN Holdings Inc. 21

Please move on to page 21. This is the forecast for Electronics.

As noted to the right, both sales and profit are expected to decline for both semiconductors and displays. In the semiconductor business, the deconsolidation of Tekscend Photomask and higher development costs for advanced semiconductor packaging are main reasons for the decline in sales and profit. On the other hand, FC-BGA is expected to grow significantly in terms of sales and profit due to the contribution of the new production line in Niigata and the increased proportion of AI-related products.

In the display business, sales and profit of anti-reflective films are expected to increase due to the launch of new production lines, but sales and profit of color filters are expected to decrease due to business downsizing.

That concludes the forecast for the fiscal year ending March 2027.

The most significant impact is in the Living segment. We will work to minimize the impact by passing through price increases and sourcing

alternative products.

Main impacts by segment

Addressing price increases

• Minimize impact on business by passing through all cost increases associated with the situation in the Middle East

  onth in light of price increases and negotiating with customers in a

  gressing smoothly.

• Although we have generally secured enough inventory for Q1 at the current time, the status for Q2 and beyond remains uncertain due to the fluidity of the situation.

• We will maintain productivity by securing procurement channels, including using alternatives, and carefully managing raw

material usage and inventory.

TOPPAN Holdings Inc. 22

Lastly, I will explain the impact due to the Middle East situation. Please move on to page 22.

Although the largest impact will be felt in the Living & Industry segment, the entire company is committed to minimizing the impact by passing on purchasing price increases to selling prices and procuring alternative products. Our policy is to pass on all price increases to minimize the impact on our business. As for the current status of our efforts, we are making steady progress by reviewing prices every month and negotiating with customers in a timely manner.

Regarding procurement concerns, currently we have secured inventories, but since there is uncertainty from Q2 onward, we will continue to secure procurement routes, including the use of alternative products. In light of these measures, we have not factored in the Middle East impact in our earnings forecast. We will continue to monitor the situation closely to determine the impact on future performance.

That is all from me. Next, President Oya will explain the Medium-term Plan 2028.

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 GAAP operating profit margin

Non−GAAP operating profit Non−GAAP operating profit margin

© TOPPAN Holdings Inc. 3

Now, I will explain the details of the new medium-term plan starting in the current FY2026.

First, this is a review of the previous medium-term plan. These are the changes in management indicators over a five-year period, including the three years of the previous medium-term plan. As shown on the left, operating profit for FY2025 decreased in both non-GAAP and GAAP due to the impact of increased amortization of goodwill and intangible assets and one-time expenses resulting from M&As, as well as the deconsolidation of the photomask business from H2. On the right side, non-GAAP ROE has been improving steadily over the three years of the previous medium-term plan.

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.

© TOPPAN Holdings Inc. 4

Next is trends in management indicators for three years. Operating profit for the final year fell short of the original plan shown on the right. The SG&A expense ratio is also on an upward trend and we recognize that controlling this ratio is an issue to be addressed. With regard to ROE, while we set a goal of achieving 5% on a core business basis, non-GAAP ROE was 5.4%, achieving the target, but we recognize that the ROE level is still 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

Information Solutions

Non−GAAP operating margin

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

Living & Industry

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.

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

© TOPPAN Holdings Inc. 5

Next is a review by segment. In the Information segment, the shift of business to digital expanded sales, but the contribution to earnings was lacking due to upfront costs associated with shifting human resources and developing solutions. In addition, proposing customized solutions for each customer left us with challenges in improving profitability. We will review this strategy and reap the rewards in this medium-term plan.

In Living & Industry, the Company carried out M&As to expand its SX revenue, mainly in the packaging business, and proceeded to acquire an overseas footprint. Non-GAAP operating profit has expanded significantly, although the full generation of global synergies is yet to come. In Electronics, although there was a deconsolidation of the photomask business due to an IPO aimed at maximizing business value, the semiconductor-related business grew significantly due in part to growth from tapping into FC-BGA market growth.

Overview

Three key challenges identified for new MTP.

Previous MTP Summary

Achievements Challenges

• Net sales: ✓ Operating profit: Acquisitions drove growth Short of initial target

  Increase in SG&A ratio

• Capital efficiency: ✓ ROE:

  Achieved initial ROE target of

  5% Remains at low level

  Solid improvement in non−

  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

Companywide

• Raise Business Profitability

• Control SG&A Ratio

• Enhance Capital Efficiency

By Segment

© TOPPAN Holdings Inc. 6

Next is a summary of the previous medium-term plan. Based on the review from a company-wide perspective and by segment, we have organized the key issues into three categories. First is to improve business profitability, second is to control the SG&A ratio, and third is to improve capital efficiency. We have identified these three key issues and aim to maximize corporate value by resolving them in the current medium-term plan.

Companywide Vision

Harness Talent

Enhance Trust

Protect the Future

Deliver Value

TOPPAN's Purpose & Values

Optimizing business, human assets, and

capital to deliver true value to the world

True Value Transformation

• 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

    Vision for each

    segment

Information Solutions Living & Industry Electronics

© TOPPAN Holdings Inc.

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

7

Now, I will explain the details of the current medium-term plan. First, I would like to talk about what the TOPPAN Group as a whole is aiming for.

We have newly defined our goal for the six-year period of the current and next medium-term plans as "True Value Transformation: Optimizing business, human assets, and capital to deliver true value to the world." In order to realize our vision, we have also redefined our material issues. As shown, in each of our three business segments we will provide valuable products and services to solve customer and social issues, and practice sustainability management to enhance social and economic value.

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

Robust pursuit of transformational profitability

enhancement and capital efficiency

Sustainable growth

Non−GAAP

Non−GAAP

operating profit JPY 145.0 bn

Operating profit JPY 130.0 bn

Non−GAAP 5.4%

ROE

ROE 4.9%

operating profit JPY 94.1 bn

Operating profit JPY 67.1 bn

Non−GAAP

operating profit JPY 210.0 bn

Operating profit JPY 200.0 bn

9.0%

8.0%

ROE

ROE

Previous MTP

2025

11.5%

10.0%

ROE

Non−GAAP

ROE

2031

MTP

2028

Non−GAAP

Vision

Management Indicators & Priority Initiatives

True Value Transformation

Optimizing business, human assets, and capital to deliver true value to the world

© TOPPAN Holdings Inc. 8

Next are the management targets and priority measures.

The current medium-term plan targets non-GAAP ROE of 9%, GAAP ROE of 8%, non-GAAP operating profit of JPY145 billion, and GAAP operating profit of JPY130 billion for the final year of the plan, FY2028. And to achieve this goal, we will pursue initiatives to dramatically improve profitability and thoroughly pursue capital efficiency. Beyond that, we will strive to achieve sustainable growth, aiming for levels of non-GAAP ROE of 11.5%, GAAP ROE of 10%, non-GAAP operating profit of JPY210 billion, and GAAP operating profit of JPY200 billion by FY2031.

To this end, we have consolidated three priority initiatives to be implemented during the three-year period of the current medium-term plan. First, we will make each segment highly profitable through "business portfolio transformation." Second, we will curb the Company-wide SG&A ratio through "corporate reform". As the third and final measure, we will improve asset efficiency through "balance sheet reform." By focusing on these three measures, we will achieve our business targets.

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.

Operating profit (JPY bn)

FY2025

Percentage of

FY2028 FY2031

total operating

profit

42%

39%

41%

42%

34%

*Excluding photomask business operating profit in FY2023 and FY2025

17% 19%

33%

(44.2) (42.0) (40.0)

© TOPPAN Holdings Inc.

Approx. -JPY 10 bn

(Sales: Approx. -JPY 170 bn)

Approx. -JPY 20 bn

(Sales: Approx. -JPY 200 bn)

9

Next is the breakdown of non-GAAP operating profit by segment.

By FY2031, we aim for each segment to achieve a similar scale of profit contribution. In the Electronics segment, as of FY2028, overall growth appears to be slight due to upfront costs from development investments in advanced semiconductor packaging, but excluding upfront costs, profits will grow solidly due to growth in existing FC-BGA business.

In FY2031, the seeds sown in the current medium-term plan will bear fruit, and the profits of Electronics will increase dramatically. In addition, as stated in the bottom row, we will incorporate the implementation of structural reforms, including the sale of businesses with net sales of approximately JPY170 billion and profits of JPY10 billion, during the current medium-term plan period, and will make serious efforts to transform our portfolio.

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

© TOPPAN Holdings Inc. 10

Listed here is the positioning of the main businesses in each segment.

The main idea is to realize a virtuous cycle of profit growth by allocating cash generated from the stable expansion businesses, listed as the third item from the top, to the priority growth businesses and strategic focus businesses, listed as the first and second items from the top. In parallel, the Company will also proceed with structural reforms to improve profitability and efficiency, focusing on the businesses for improvement and transformation, listed at the bottom. We will implement structural reforms while considering all options, including our own efforts and the best owner's perspective.

And since this April, we have revamped the organization overseeing all operations in Japan from a business perspective, and performance and resources will become more visible. This will allow us to further strengthen business management using ROIC and promote its use in performance management, investment decisions and evaluation, and other indicators.

Priority Initiative 1: Business Portfolio Transformation

Increase profits by enhancing competitive advantages for higher profitability, while also improving efficiency

5.0

- .3

0.4

3.5

60

70

.5 78.0

.7

G23.2

53.4

• 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.

50

40

30

Fine tune strengths

(across real world, digital, and AI)

to increase profitability

© TOPPAN Holdings Inc.

11

Strategic Direction

Performance Targets

3.8

90

80

FY2025 FY2026 FY2028 FY2025 FY2026 FY2028

• Operating Profit Change (JPY bn)

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

00.0 80.0

60.0

40.0

20.0

0.0

G85.0

CAGR

G .0 2%

.0

,000

800

600

400

200

0

• Net Sales (JPY bn)

,200

Info. Printing

Printing

Improve efficiency and

earnings in existing printing businesses

Securities & Business

%

%

8%

78.0

53.4

and earnings of existing printing businesses.

Business Climate

TOPPAN's Competitive Advantages

Next, I will explain the strategies by segment.

First is Information Solutions. Our performance targets are net sales of JPY985 billion, non-GAAP operating profit of JPY78 billion, and a profit margin of 8% in FY2028. Profit growth over the three-year period will be achieved by increasing profits in the sub-segments described here. As for the business environment of the Information Solutions segment, we will pay heed to advancing AI, the decreasing population in Japan, and the growing ID solutions market.

And in such a business climate, based on a deep understanding of the issues onsite, we will combine real products and services such as smart cards, tags, and sales promotion support at stores with digital services to design optimal operations. We will also provide hands-on assistance spanning from analysis and consulting to operational support using primary data collected, and will also provide necessary secure infrastructure for accumulating data using our security and authentication technology. These are our advantages.

Based on the business environment and our competitive advantages, our two main strategic pillars are to increase profitability by further refining our superiority in the Information Solutions segment by combining our hybrid real and digital solutions with AI, and to thoroughly improve profitability and efficiency in the existing printing business.

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 273.0

• Non-GAAPOperating Profi(tJPY bn/) Margin0%

  8% 8%

  30

  • Net Sales (JPY bn)

    35

    CAGR

    30.0

• Non-GAAPOperating Profi(tJPY bn)/ Margin

250

200

50

00 50

0

7%

22 .7

25

20

5

0 5

0

30

25 22.0

208.3

5

0 5

0

18% 8%

-3%

- 5%

3

-2

-7

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

Strategy

Strategy

• 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.

© TOPPAN Holdings Inc.

• 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 indust−rsypecific packages and explore global expansion.

  12

  Next is strategies by sub-segment.

  The Security business is targeting a non-GAAP operating margin of approximately 10% in FY2028. The first strategy is to expand services tied to government IDs, such as global election solutions, and leverage our domestic track record to capture market growth in the manufacture and issuance of ID/smart cards and other media. In Japan, we will capture stable demand. Based on stable businesses in Japan and overseas, we will build ID infrastructure such as "authentication", "authorization", and "trails" to manage IDs and visual information, and provide a service package that combines media and digital to further increase profitability.

  The IoT Solutions business is targeting a non-GAAP operating margin of 8% in FY2028. This business is positioned as a strategic focus business, and we aim to establish the foundation of a profit model during this medium-term plan period, and to make a full-fledged contribution to earnings in the next medium-term plan. The strategy is to establish a recurring revenue model by providing end-to-end services for the supply of RFID and other IoT devices and system operation of ID management. This profit model will be established in the four areas described here, with a view to global expansion.

  Priority Initiative 1: Business Portfolio Transformation

  Sub-segment Strategies: Information Solutions
  
  

  Marketing

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

0

%

3%

2%

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

Performance Targets

Performance Targets

• • Net sales (JPY bn)

    40

    G.0

    • Non-GAAP Operating Profi(tJPY bn)/ Margin

      8%

      7%

      CAGR27.0

      0%

      • Net sales (JPY bn)

        00

        CAGR

      • Non-GAAP Operating Profi(tJPY bn)/ Margin

        20

        00

        80

        60

        40

        20

        0

        02.0

        8%5

        0 5

        0

        80 7 .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 ofline and digital marketing services to create competitive advantage ■ Concentrate resources on highly complex difficult tasks that cannot be

          • AI is homogenizing the customer experience when only using digital measures, making ofline handled by AI alone

            experiences more valuable.

          • Moving away from routine tasks that are now commonly being switched to AI, TOPPAN

          • TOPPAN has expertise and experience with sales aids that optimize the value of ofline customer will focus on complex, high−stakes operations in public, financial, and infrastructure

            experience.

            sectors that come with regulatory compliance and sophisticated decision making that

            combines people, systems, and AI.

          • Develop our integrated digital and ofline marketing service to create a competitive advantage. cannot rely on AI alone for decision making, thus requiring a business design that

        • Add value by delivering tail−omr ade 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−hinouse development and AI adoption

      • Reduce costs by proportionally reducing outsourcing and boosting efficiency through AI use.

      © TOPPAN Holdings Inc.

      • 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

  operational sites to reduce costs by improving capacity utilization. 13

  Next is the Marketing business. The marketing business is targeting a non-GAAP operating margin of approximately 10% in FY2028. The strategy is to build a competitively advantageous position through the implementation of marketing services that integrate real and digital solutions.

  In a society where AI is the norm, we believe that the value of real experiences will become even more important, so we are amassing experience and know-how in supporting sales promotions in stores and other real contact points. This background allows us to build a unique and advantageous position that our competitors do not have. In this context, we will increase unit prices by making integrated proposals based on the business issues of our clients. We will also increase profit margins by promoting in-house production and reducing costs through the use of AI.

  The BPO business is targeting a non-GAAP operating margin of about 6% in FY2028. The strategy is to concentrate resources on highly difficult and complex tasks that cannot be completed by AI alone. AI will be implemented in the operational infrastructure to automate operations and add value with AI operational assurance. In addition, the Company will promote the integration of duplicated functions at BPO sites nationwide to improve profit margins.

  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%0%

200

50

00 50

0

44.840.0

CAGR 0%

44.0

20

5

0 5

0

0%

250

200

50

00 50

0

237.2 220.0

CAGR

-7%

G0.0 20

5

0 5

0

% 4% 4%

Strategy

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

FY2025 FY2026 FY2028

Strategy

• Enhance profitability through contract selection/direction

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

• Enhance profitability through a selective sales strategy

  • Demand for publication and commercial printing will continue to decrease and

  • Leverage synergies to strengthen profit management to phase out supply businesses and otherbottoming out will present a challenging situation.

    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

• 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.

  •

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

    Further restructure operational sites.

    • Establish solid growth internationally

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

© TOPPAN Holdings Inc. 14

Next is the Securities & Business Printing and Information Printing businesses. The Securities & Business Printing business aims for a non-GAAP operating margin of approximately 10% in FY2028, and the Information Printing business aims for a non-GAAP operating margin of approximately 4%. The strategy is basically the same for both businesses. As the domestic market will continue to shrink, we will thoroughly promote the selection of orders and improvement of conditions to improve profitability.

In Securities & Business Printing, TOPPAN management methods will be deployed to the former TOPPAN Edge to improve profitability by strengthening profit management. In addition, we will implement further structural reforms, such as reducing the number of production facilities and reorganizing bases, in order to reduce fixed costs and lower invested capital.

Priority Initiative 1: Business Portfolio Transformation

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

Performance Targets

G 5.0

827.0 CAGR

723.0 8%

• Net Sales (JPY bn)

  ,000

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

00

800

600

400

200

0

FY2025 FY202 FY2028

8 .0

4.0

50.8

80

60

40

20

0

FY2025 FY202 FY2028

TOPPAN's Competitive Advantages

• Ability to develop unique SX products that contribute to solving

  • Non-GAAP Operating Profit Change(JPY bn)

23.0 1.6

5.8

.7 86.0

50.8 3.0

100

90

80

70

60

50

40

30

20

10

0

environmental issues

• Global supply chain for deployment of competitive products worldwide

• Ability to develop global network to reduce procurement risks

  ⇒Establish businesses that increase

  both societal and economic value simultaneously.

  FY2025

  © TOPPAN Holdings Inc.

  One-time Factors

  Packaging - Japan Packaging - Global

  Décor - Global

  Décor - Japan

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

  FY2028 (Plan)

  15

  Next is the strategies for Living & Industry.

  Our performance targets in the Living & Industry segment are net sales of JPY915 billion, non-GAAP operating profit of JPY86 billion, and a profit margin of approximately 9% in FY2028. Profit growth over the three-year period is as shown here, and will be achieved by expanding overseas business.

  As for the business climate in the Living & Industry segment, we will focus on the advancing circular economy, the growth of the mainstream market, and geopolitical risks. While the current situation in the Middle East and other factors are having an impact on raw material price hikes and procurement concerns, we see this as both a risk and an opportunity to expand SX, as the need for solvent-free production is increasing.

  In this business environment, with this business segment we will aim to simultaneously increase social and economic value by leveraging our competitive advantages such as the development of unique SX products that contribute to solving environmental issues, a global supply system that enables the worldwide deployment of environmentally superior products, and the establishment of a global network that reduces procurement risks. Based on the business environment and our competitive advantages, our strategy for Living & Industry is to strengthen profitability by promoting the SX strategy, capture stable demand, and create synergies through global collaboration.

  Next is the strategies by sub-segment.

  Priority Initiative 1: Business Portfolio Transformation

  Sub-segment Strategies: 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

CAGR82.0

47.057.0 7%

7%

8%

G%

80

60

40

20

0

Performance Targets

FY2028

FY2025 FY2026 FY2028 FY2025 FY2026

575.G

CAGR 733.0

8%

70.0

800

600

400

200

0

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

• Net Sales (JPY bn)

200

50

00 50

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

G%

%

7%

20

5

0 5

0

FY2025 FY2026 FY2028

0

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.

© TOPPAN Holdings Inc.

• 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 −ihnouse and expand production technologies overseas to reduce costs

    16

    The Packaging business is targeting a non-GAAP operating margin of about 9% in FY2028. The strategy is to achieve stable earnings through organic growth, mainly in the Asia-Pacific region, where economic and population growth is expected, and in the Americas, where the customer base has been strengthened through large-scale M&As. Based on this stable revenue base, we will further enhance profitability by developing and supplying high value-added SX packaging globally through a vertically integrated strategy that combines film deposition and barrier technologies. In addition, the Company will also achieve higher profit margins through cost synergies from global procurement of raw materials and an increase in the in-house production rate of films.

    The Décor Materials business is targeting a non-GAAP operating margin of about 9% in FY2028. Our strategy is to expand our market share by strengthening quality and design, and by operating a new plant in Turkey. And we will promote high value-added products by strengthening overseas sales of film-based decorative sheets and repositioning ourselves as a spatial design business in Japan. We will also continue our efforts to improve profit margins through cost reductions, including the in-house production of inks and the global deployment of domestic production technologies.

    Priority Initiative 1: Business Portfolio Transformation

    Segment Strategy: Electronics
    
    

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

    packaging business.

    Performance Targets

    • Net Sales (JPY bn)

      230.0

      CAGR

      8 .3

      2.0

      7%

      250

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

      Business Climate
      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
      
      

      G% 20% 22%

      200

      50

      00 50

      0

      60

      508%

      24.0

      40 34.

      30

      20

      0 0

      5%%

      37.0

      FY2025 FY2026 FY2028

      34.

      21.5

      0.9

      37.0

      (13.0)

      (6.5)

    • Non-GAAP Operating ProfitChange(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)

17

Next is the strategies for Electronics.

Our performance targets are net sales of JPY230 billion, non-GAAP operating profit of JPY37 billion, and a profit margin of approximately 16% in FY2028. Although profit growth over the three-year period will be small in total because of the IPO of the photomask business and the significant impact of lower profits from development expenses for advanced semiconductor packaging, semiconductor-related profits will grow significantly due to the growth of the existing FC-BGA business. This medium-term plan period will be a strategic investment phase for advanced semiconductor packaging, which will be a major growth driver in the next medium-term plan.

As for the business climate in the Electronics segment, we will be paying attention to the long-term growth of the semiconductor market, the increasing sophistication of required technologies and quality, and the increasing size of flat panel displays. In such a business environment, we will develop and supply cutting-edge key devices based on our technological superiority. In addition, we will focus our resources on the semiconductor packaging business, including advanced products, by leveraging our strong partnerships with customers and material manufacturers, who drive technology advancements.

The two pillars of our strategy are to achieve high profitability and high growth in the semiconductor packaging business and to implement structural reforms in low-profit businesses.

Priority Initiative 1: Business Portfolio Transformation

Focusing management resources on semiconductor packaging business to achieve high growthFocusing on stable growth of a-nretiflective films and establishing foundations for-next

with FC-BGAs and make strategic investments in-gneenxetration products. generation businesses, whilme plementinsgtructural reforms to phase out display solutions.

Performance Targets

Performance Targets

4

3

2

0

3%

5%

0%

200

CAGR

78.0

• 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%

3G.8

60 24% 28.0% 27%

50 4 .4 47.0 4%

50

00 50

0

.0

23%

40

20

0

2 %

G% 40

30

20

0 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.

© TOPPAN Holdings Inc.

• 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)

18

Next is the strategies by sub-segment.

The Semiconductor business is targeting a non-GAAP operating margin of 19% in FY2028. Excluding the development of advanced semiconductor packaging, the profit margin for FY2028 will be approximately 27%. Our strategy is to maintain high profitability and growth in our existing FC-BGA business. We will focus on three priority targets: high-end switches, AI ASICs, and server CPUs. We will increase the utilization ratio and achieve significant growth in sales and profit by increasing the mix of high-value-added products, mainly in Niigata, which started new lines last fiscal year, and Singapore, which will start operation in this fiscal year.

And in the next medium-term plan, we will make strategic investments in advanced semiconductor packaging to contribute to profits. Specifically, we will make investments in the development and mass production of glass cores/interposers.

The Display business is targeting a non-GAAP operating margin of about 5% in FY2028. Our strategy is to expand earnings from anti-reflective films through the effect of investment in ultra-wide lines, and to launch a next-generation display business such as light control devices and QD materials. In addition, the small- and medium-sized TFT LCD display solutions business is scheduled to end in FY2027 through the implementation of structural reforms.

These are the strategies for each segment, and the details will be explained again at the IR day on June 12.

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

© TOPPAN Holdings Inc.

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.

  19

  Next is an investment strategy to achieve profit targets.

  The total investment for this three-year period of the medium-term plan is planned to be JPY500 billion. In particular, we will aggressively invest in priority growth businesses and strategic focus businesses, allocating JPY265 billion, more than half of the total amount. The breakdown of the JPY335 billion investment plan, which includes business investment and capital investment in priority growth and strategic focus businesses, is as shown on the right, with 60% in Electronics, strategically focused on advanced semiconductor packaging and FC-BGAs in the semiconductor-related business.

  Priority Initiative 2: Corporate Reform
  
  

  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.

  MTP target: SG&A ratio improvement of around 2pt (FY2025: 19.8%)

*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.

Next, I would like to discuss the second priority initiative, corporate reform. During the three years of the current medium-term plan, we will work to curb the SG&A expense ratio, which has continued to rise.

We will work to improve the SG&A ratio by a 2 percentage point level over the next three years from 19.8% in FY2025. Our approach to improvement is to redeploy personnel in the indirect departments, including the holdings and business-side staff, and to streamline and consolidate the indirect department operations. Regarding operational efficiency and consolidation, we will consider consolidating personnel and operations, aiming for a 30% reduction in workload. We will also continue to reduce outsourcing costs. To realize this goal, we will promote appropriate allocation of human resources through human resource management reforms, and improve operational efficiency and sophistication through the promotion of company-wide AI use.

In human resource management reform, we will clarify necessary human resource requirements and personnel size based on our business strategy, and promote appropriate allocation of human resources. To this end, we will implement a talent management system to visualize skills. In Company-wide AI promotion, we will accelerate the transformation to more efficient and sophisticated operations through the use of AI. To this end, the Company will establish an AI transformation network to link and standardize data and processes of company-wide operations, including the divisions of the holding company, to improve efficiency from a company-wide perspective.

The target for improvement in the SG&A ratio includes the effects of structural reforms such as divestiture of businesses, in addition to increased efficiency of operations in indirect departments.