Toppan is Communication

Transcription

Annual Report 2001
Toppan is Communication
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The Trump Cards in Electronic Communications
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IC Cards
Touchdown of the
IC Card Era
Although IC cards were first adopted
widely in Europe, with rapid advances in
IT in Japan, we are on the verge of fullscale growth in demand. IC cards are
already being used in the credit card
and digital broadcasting industries and
Toppan’s Competitive Edge
will soon be introduced in a wide range
Toppan’s strength in the IC card mar-
of other applications, such as in banking,
ket is the ability to provide companies
mobile communications, transportation,
in a broad range of industrial fields with
and municipal government systems. IC
comprehensive support for IC card sys-
cards are expected to expand beyond
tems. Our operations extend from sys-
the framework of conventional card
tems planning and design to the
become an indispensable tool for con-
The Leading Domestic
Manufacturer
sumers in the 21st century.
In anticipation of the trend toward
facturing and issuance under stringent
greater use of IC cards, Toppan began
security control structures.
R&D at an early stage and became the
Furthermore, we are also engaged in
first company in Japan to commercialize
sales promotions and marketing analy-
the technology in 1983. Since that
sis to foster the expanded use of card
time, we have produced a number of
systems. Toppan draws on its experi-
highly reliable products for a wide
ence and results acquired through
range of industrial fields and built a
many years in the card business to
solid position as the top domestic man-
maintain the confidence of its cus-
ufacturer. The advanced security capa-
tomers.
businesses, and they are likely to
bilities required in IC cards are one of
Toppan’s technological fortes. It is this
knowledge, cultivated since our founding, that we have maximized in such
areas as securities printing. In realizing
an IC card society that assures consumers and companies convenience
and security, Toppan has taken the initiative to drive widespread adoption of
this promising technology.
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development of software and systems
for customized cards and card manu-
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Comprehensive Supply
System
We are on the verge of significant growth
in the use of IC cards. To provide total
support for customers, Toppan has built
a comprehensive supply system. Our
three domestic plants, including the flagship Takino Securities Plant in Hyogo
Prefecture, boast the leading-edge mass
production facilities. The Ranzan Plant in
Saitama Prefecture, completed in 1997,
manufactures and issues noncontact IC
cards and is targeted to become the top
card production facility in Asia.
Collaboration with Gemplus
In reinforcing our position in the domestic market, we entered a tie-up with
Gemplus International SA, of France,
which has the leading share of the global market for IC cards. In November
2000, Toppan and Gemplus equally
established Toppan Gemplus Services
Co., Ltd. (TGS), a joint venture for
domestic card issuance services. TGS
began operations in April 2001, and its
production capacity is expected to
steadily increase beyond an initial
500,000 cards per month. The business
development of TGS will utilize the parent companies’ extensive security technologies and solution development
capabilities in IC card issuance
operations.
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Highest Security Standards
in the World
In February 2001, Toppan’s IC cards
became the first from a domestic vendor to receive “Level 3 Product
Certification” from Visa International.
Level 3 certification acknowledges
achievement of the highest level of
security required by Visa International.
Very few card manufacturers in the
world hold this certification.
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Expanding Communication Mediums —Taking Analog to Digital
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Color Filters for LCDs
Top Global Market Share for
LCD Filters
Accompanying the spread of IT through
the global economy, the use of information and communications devices, such
as PCs and cellular phones, continues to
grow. The high-precision processing
technology developed by Toppan in its
Total Support Spanning
Product Planning to
Production
platemaking operations provides important support for these electronic
products. Our LCD color filters contin-
Toppan has a total support system for a
ued to record strong sales increases in
wide range of customer needs, from
the year under review, building on our
color filter pattern design to produc-
insurmountable number one position in
the global market.
Superiority of Toppan’s
Color Filter Technology
tion. We have two domestic production
plants, in Niigata and Shiga, and are
building other facilities overseas. In the
In 1999, Toppan became the first com-
previous fiscal year, we added a new
pany in the world to develop color fil-
large-scale production line to the flag-
ters compliant with European
ship Niigata Plant to meet growing
Broadcasting Union (EBU) standards.
demand and improve our production
We subsequently succeeded in develop-
capacity. The total production capacity
ing EBU-II color filters, which feature
of the Toppan Group, including the
enhanced color reproduction, as the
plant in Taiwan to come on line next
next generation of products. We began
year, will be three million 12-inch
the full-scale supply of EBU-II color fil-
equivalent units a month, setting
ters in spring 2001. These filters are
Toppan even further ahead of its near-
suitable for LCD televisions, which are
est competitors.
expected to enjoy strong growth in the
years ahead. At the same time, they feature superior operating qualities for PC
monitors, which, in the broadband era,
are increasingly being used for video
display. The research and development
of color filters, although centered at our
Technical Research Institute, also
involves close, ground level interaction
among the Electronics Research
Laboratory, and production and marketing divisions. Through this approach,
we have established a dominant, unrivaled technological edge in this field.
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Bolstering Our Position in the
Taiwanese Market
In recent years, Taiwan has become a
global manufacturing base for PCs and
peripherals, and the local procurement
of components and materials has intensified. Taiwanese manufacturers import
the majority of their LCDs from Japan,
and the need for local production is
increasing. In March 2001, Toppan and
Advanced Material Technology
Corporation in Taiwan established a new
company, Toppan CFI (Taiwan) Co.,
Ltd., for the production and sale of color
Global Acceptance of
Toppan’s Color Reproduction
Technology
filters. The construction of the plant has
Our color reproduction technology has
the start-up of operations, we will be
received high evaluations from a wide
well positioned to flexibly supply local
array of sources. Recently, our compo-
TFT manufacturers with high-quality
Color Filter Technology Leads
to New Business
Opportunities
nents and materials division received an
color filters. Our goal is to also obtain
In June 2001, Toppan and E Ink
award from the Society for Information
the top share of the rapidly expanding
Corporation, of the United States, a
Display, the world’s leading academic
Taiwanese market.
leader in electronic ink for paper-like
already begun, and production is scheduled to come on line in June 2002. With
displays, entered a strategic tie-up for
society in the field of displays.
the development of color electronic
paper. In return for capital investment
and development collaboration, Toppan
will receive, for a set period, exclusive
global rights to manufacture color filters
for electronic paper. The companies
agreed to cooperate in strategic projects, including the development of flexible color filters and flexible displays, as
well as in joint market development for
electronic POP materials and indoor display media.
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Mass Media Markets and the Drive for Personalization
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Bitway
www.bitway.ne.jp
Bitway, Toppan’s Internet-based content
distribution service established in July
1999, reached a cumulative total of 2.4
million purchases by August 2001, with
a monthly figure exceeding 180,000.
Bitway offers 30 content categories,
including fortune-telling, counseling,
games, music, and electronic books, and
more than 10,000 titles, making it one
of the largest content distribution systems in Japan. Revenues are divided
among the content provider, the sales
partner, and Toppan.
Bitway’s Expansion of the
Content Business
The content distribution market, prior to
Bitway’s arrival, lacked an effective sales
channel, irrespective of the superiority of
the contents produced. Today, however,
publishers, artists, and other content
providers can acquire a sales channel
Contents
submit
with access to 15 million subscribers via
Japan’s largest ISPs (Internet Service
Providers), our sales partners, by submitting their contents to Toppan. In addition, if they use Cross-Bitway, the
content provider does not have to build
a payment system that is compatible
with each ISP and can instead focus on
content creation. Also, content providers
receive a wide range of services, such as
Count-Bitway, which provides daily
reports on sales trends; the promotion of
debut contents; and total support for
electronic watermarks and other copyright protection. On the other hand,
users automatically pay for content purchases through their registered accounts
on ISPs or e-commerce sites, providing
convenience and security.
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-Publishers
-Artists
-Creators
-Film making
companies
Contents distribution
Contents
sales
To 15 million
subscribers
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Toward Further Growth
In the future, Toppan will work to
secure high-quality contents and to
add powerful new sales channels. In
addition, in response to the growing
use of mobile devices and broadband
networks, we will further accelerate our
acquisition of video content and our
development of transmission systems.
For example, in November 2001 we
plan to commence a new Bitway service that features the transmission of
Partner Companies in the
Content Distribution
Network
content to mobile terminals. The use of
■ Internet Initiative Japan Inc.
PDAs is increasing, and transmission
(To build the infrastructure for the con-
tests have started on next-generation
tent distribution network.)
cellular phones. In this environment,
■ M.Ken Co., Ltd.
the business of fee-based transmission
(To provide “LUCENTMARK” digital
to mobile terminals is beginning full-
watermark technology for the copy-
scale expansion, providing a promising
right protection of contents.)
market for our new Bitway service. In
■ Intel Corporation
the mobile field, we plan to engineer a
(To provide technical advice on the dis-
range of basic technologies, develop a
tribution of content using servers based
business model, cultivate our knowl-
on Intel architecture and on the distrib-
edge in mobile business operations,
ution of rich content.)
and strive to become a market leader.
■ Sun Microsystems K.K.
(To build the server infrastructure for
content distribution.)
■ IBM Japan, Ltd.
(To provide marketing systems infrastructure.)
Sales Partners
■ ASAHI Net, Inc. (ASAHI Net)
■ WebOnLine Networks, Ltd. (JustNet)
■ KOJIMA CORPORATION (Kojima Net)
■ 7dream.com (7dream.com)
■ KDDI CORPORATION (DION)
■ Plala Networks Inc. (plala)
■ Sony Communication Network
Corporation (So-net)
■ DreamNet Corporation (DreamNet)
■ NIFTY Corporation (@nifty)
■ JAPAN TELECOM CO., LTD.
(ODN (Open Data Network))
■ NEC Corporation (BIGLOBE)
■ Matsushita Electric Industrial Co., Ltd.
(Panasonic hi-ho)
Names in parentheses are ISPs or the
e-commerce sites operated by the companies.
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PROFILE
Since its founding in 1900, Toppan Printing Co., Ltd., has achieved noteworthy
growth and become a leader in Japan‘s printing industry. Today, the
Company‘s operations extend over a wide range of fields, including Securities
and Cards, Commercial Printing, Publications Printing, Packaging, Industrial
Materials, Electronics, Business Forms, and Multimedia.
The use of digital and communications technologies continues to register dramatic growth. Accordingly, Toppan is working to take advantage of
new opportunities in the printing business by maintaining a strong focus on
technical innovation, such as the incorporation of leading-edge technological
advances into its original printing technologies. The expanding range of multimedia technologies and the advance of desktop publishing are having an especially significant impact on the printing industry. Toppan has already
established positions of leadership in these fields, resulting in a wealth of new
business opportunities for the Company.
Toppan is committed to building on its traditional strengths as a
printing company to expand into a wider range of operations as an information and communications company that is a leader in the integration of printing and multimedia. The year 2000 marked the 100th anniversary of Toppan’s
establishment, and we have characterized this milestone as a symbolic “second
renaissance” of the Company. In the years ahead, Toppan will continue to
accept the challenges of recording dynamic growth and enhancing value for
customers.
Financial Highlights 13
Management Message 14
An Interview with Toppan’s CEO 16
Review of Operations 19
Forward-Looking Statements
This annual report includes certain “forward-looking statements.” These statements are based on management’s
current expectations and are subject to change in circumstances. Actual results may differ due to changes in
economic, business, competitive, technological, regulatory, and other factors.
Securities and Cards 20
Commercial Printing 21
Publications Printing 22
Business Forms 23
Packaging 24
Industrial Materials 25
Electronics 26
Overview of Principal Subsidiaries 28
Financial Section 29
Corporate Data 53
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Toppan Printing Co., Ltd. and Subsidiaries
FINANCIAL
HIGHLIGHTS
For the years ended March 31, 1999, 2000 and 2001
Millions of yen
1999
2000
Thousands of dollars*
2001
2001
% Change
For the Year:
Net sales ．．．．．．．．．．．．．¥1,223,439
¥1,237,082
¥1,293,837
$10,434,169
4.6
Operating income ．．．．．．．．．
65,217
65,267
67,431
543,798
3.3
Income before income taxes．．．．．
57,775
61,880
35,080
282,903
–43.3
Net income ．．．．．．．．．．．．
26,700
30,477
14,752
118,968
–51.6
Per share of common stock (yen and dollars):
Net income ．．．．．．．．．．．
¥37.29
¥42.54
¥21.00
$0.17
–50.6
Cash dividends．．．．．．．．．．
15.00
16.00
16.00
0.13
0.0
Capital expenditures ．．．．．．．． ¥100,921
¥81,146
¥99,051
$798,798
22.1
60,274
62,572
65,148
525,387
4.1
Total assets ．．．．．．．．．．．．¥1,267,357
¥1,301,180
¥1,380,156
$11,130,290
6.1
Depreciation and amortization ．．．．
At Year-End:
Shareholders’ investment ．．．．．．
683,906
703,599
716,085
5,774,879
1.8
Working capital ．．．．．．．．．．
233,420
239,431
200,253
1,614,944
–16.4
Long-term indebtedness ．．．．．．
114,242
115,679
90,792
732,194
–21.5
* U.S. dollar amounts are translated from yen at the rate of ¥124=U.S.$1, as at March 31, 2001.
NET SALES
(Billion ¥)
NET INCOME
(Billion ¥)
SHAREHOLDERS’ INVESTMENT
(Billion ¥)
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MANAGEMENT MESSAGE
In the fiscal year ended March 31, 2001, Toppan
strengthened its foundation for sustainable growth in
profitability and achieved solid results throughout its
business operations. While accelerating its transition to
an information and communications company, Toppan
was able to achieve a strong performance in difficult
economic conditions by providing comprehensive solutions from the customer’s point of view and by taking
an aggressive, tenacious approach to business challenges.
The following results show the Company’s steady performance improvement:
■ Consolidated net sales up 4.6%.
■ Gross profit margin up 1.5 percentage points.
■ Operating income up 3.3%.
The business fields that made the most significant contributions to expanded profitability were commercial
printing and electronics. In the year under review,
economic trends in Japan were mixed, and operating
conditions in the domestic printing industry remained
challenging. Demand for commercial printing, however, showed signs of recovery. Toppan worked to
aggressively provide comprehensive solutions using IT
and to obtain orders for integrated products and services. In electronics, demand for LCD color filters was
strong and we recorded a significant increase in sales,
centered on PCs.
Throughout this annual report, we discuss our initiatives
and accomplishments in the year under review. Here,
however, we would like to emphasize several achievements that are worthy of special attention.
■ In core printing operations, we reinforced our leadership position.
■ In LCD color filters, we maintained our top share of
the global market.
■ In IC cards, where significant growth in demand is
expected, we strengthened two domestic production facilities and established a joint venture company with Gemplus International SA, of France.
Hiromichi Fujita, Chairman & Representative
Director (left) and Naoki Adachi, President & CEO
Realigning Our Business for a New Age
Toppan formulated Toppan Vision 21 to spell out its fundamental approach to
business in five business fields for the 21st century. The three fields of Information
& Networks, Living Environment, and Electronics will tie together our operations
in Securities and Cards, Commercial Printing, Publications Printing, Packaging,
Industrial Materials, and Electronics. New areas of business will be created in
Personal Service, where we provide information and services to consumers, and
Next-Generation Products, where we develop and provide next-generation
products targeting growth markets, such as functional industrial materials. While
working to ensure strong growth prospects and profitability in each field, we will
increase our corporate value. The Company will also endeavor to raise the comprehensive strengths of the Toppan Group by maximizing its synergies.
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The Success of Customers
In all of its management policies, Toppan gives top priority to the success of its
customers. From innovative technological development to the front lines of marketing and detailed aspects of the production process, we have taken steps to further raise customer satisfaction by offering products and services that incorporate
creativity. In the future, in each of our business fields, we will continue to provide
comprehensive solutions that feature Toppan’s distinctive strengths.
In Information & Networks, we will strive to contribute to solving customer problems by making full use of IT to create new value with information processing and
management. In Living Environment operations, giving priority to the needs of
consumers, we will launch products with superior functionality and consideration
for the environment. At the same time, we will emphasize operations that include
software and services that raise the brand value of customer products. In
Electronics, we will provide high-quality, easy-to-use, advanced products that
meet needs related to the increasing sophistication of display technology. In addition, in providing leading-edge components for advanced semiconductors, we
will further expand into electronics-related design areas by heightening our semiconductor design capabilities. Meanwhile, in Personal Service and NextGeneration Products, we will strive to optimize our technical skills acquired
through our existing lines of business. At the same time, in bolstering Toppan
brand recognition, we will reinforce our technical and marketing capabilities,
develop new net businesses, and enter fields centered on advanced products in
emerging markets.
Responding to Market Needs
We are experiencing an era of dramatic change that is eclipsing world markets. To
take advantage of business opportunities resulting from rapidly changing markets,
corporations must always select the optimal strategy. This is true for Toppan as
well as for its customers. As we make the most of our strong base of customers,
cultivated throughout our business fields, we will provide comprehensive solutions
to market needs and thereby continue to establish a position of leadership in the
information and communications industry. In this way, Toppan will increase its
shareholders’ value, expand business with its partners, provide new opportunities
for its employees, and become a company that consistently contributes to the
success of its customers.
September 2001
Hiromichi Fujita
Chairman & Representative Director
Naoki Adachi
President & CEO
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AN INTERVIEW WITH TOPPAN’S CEO
■ Since you became president in June 2000, what issues have
you focused on?
I have devoted considerable attention to operational reforms designed to make
Toppan number one in the printing industry. In other words, increasing the speed
of our transition from an order-taking approach that has traditionally characterized the industry to become an information and communications company. We
made clear our determination to develop and commercialize new fields of business, reevaluate our existing businesses, and withdraw from fields with low profitability. Furthermore, we explained to customers and shareholders the details of
our corporate philosophy, creed, and Toppan Vision 21, which clarifies the direction we will take in the 21st century. Particular emphasis was placed on our
growth strategies for Information & Networks, Living Environment, Electronics,
Personal Service, and Next-Generation Products; all of these efforts being favorably received.
■ What were Toppan’s most notable achievements during the year?
In short, it was a year in which Toppan built a foundation for sustainable growth
in profitability. We recorded higher revenues and profits and, in a difficult operating environment, registered a truly consistent performance. That performance
indicates that our business model is functioning properly. Another significant
achievement was a widespread change in the attitudes of all employees, with
employee motivation reaching unprecedented levels across the Company, from
the front lines of marketing to production plants.
■ What is Toppan’s strategy for growth?
Currently, printing operations
account for the largest share of our
sales, but in the near future we will
focus our management resources
on the three areas of electronics, ebusiness, and ecology. Of these,
electronics has joined printing as
one of our major sources of profitability, and in the short term electronics will receive about 40% of
our capital investment. Over the
longer term, however we will develop next-generation products, such as electronic paper. Electronic paper refers to displays that produce paper-like image quality,
using LCD color filter technology. Toppan has entered an agreement with E Ink
Corporation, of the United States, to develop color electronic paper technology.
In those endeavors, we will not rely solely on our own original technology but, in
an age that demands speed, will also consider tie-ups with companies that present
superior technologies.
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■ What is Toppan doing to improve profitability in its mainstay
printing operations?
Demand for advertising is improving, and we recorded increased revenues in our
commercial printing operations; however, we are not satisfied with our profitability. This is because our rationalization efforts were not implemented in time for the
resulting cost savings to offset rising paper prices and the lower sales prices
caused by intensified competition. In the future, intelligence will become even
more important in a variety of areas, and a high level of planning ability will be
indispensable in obtaining comprehensive orders from customers. Toppan has
built a solid customer base in a wide range of industries while cultivating substantial technologies and expertise through business activities with customers. We will
allocate these valuable intellectual assets to fields with strong prospects for growth
and profitability. As one facet of improving our profitability, we aimed to scale our
workforce to 20,000 employees by March 2002, and having achieved that target
we are now reviewing to streamline the figure to 18,000. At the same time, we
will emphasize increased efficiency and laborsaving in administration through the
appropriate allocation of personnel and the full use of information technology.
In addition, to increase corporate value through improved profitability, which is a
foremost consideration, selective orders will take on an increasing importance in
our marketing activities. By providing products and services unique to Toppan, we
will resolve customers’ problems and further increase our competitiveness in the
market.
■ What are Toppan’s plans in IC cards and other new fields that
are drawing attention?
The IC card era has arrived, and recently customers have been expressing strong
interest in these products. In November 2000, we established a card issuance joint
venture company with Gemplus International SA, of France, which has the top
global share of the IC card market, and we have built a strong supply structure
with mass production facilities in Tokyo and Osaka. As IC cards are adopted on a
broad scale, we would like to contribute to the realization of a new socioeconomic
model that increases convenience for consumers and corporations while maintaining high levels of security. In Internet business, we are focused on the potential of
the broadband era. We expect Bitway, our content distribution service, to continue to perform favorably, with a more than twofold increase in sales in the current
fiscal year.
■ What environmental activities is Toppan engaged in?
I believe that environmental conservation and corporate management are completely compatible. Through reuse and recycling, each year we are reducing the
amount of waste that we generate,
and this is also steadily leading to
reductions in production costs. We
refer to environmental conservation in
our production activities as Eco-protection activities and to the development of environmentally friendly
products as Eco-creativity activities. In
a wide range of fields, such as packaging and industrial materials, our
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Eco-creativity activities have resulted in many innovative products that have been
highly evaluated in the marketplace. Moreover, by utilizing the wealth of knowledge that we have accumulated through transactions with a diverse range of customer industries, we have aggressively entered the field of environmental
communications, where we are providing a broad array of solutions. In October
2000, we sponsored a major exhibition and seminar of environmental communications that was attended by a large number of people. We also ask third parties
to review our annual Environmental Report to ensure its transparency and accuracy.
■ What is the goal of Toppan’s in-house venture capital operation?
Based on technology cultivated in printing operations, we have expanded our
business fields through the development of a string of innovative product lines,
such as packaging, industrial materials, electronics, and e-business. The goal of
our in-house venture capital system, started in January 2001, is to systematize this
type of corporate culture and to enhance it further. We have allocated ¥5 billion
to the system, which will support the establishment of new companies. In regard
to the new operations that are created through this system, we would expect to
see bold, aggressive net businesses as well as businesses based on new approaches
to existing operations, especially printing.
■ Toppan is referred to as a domestic-oriented printing company, but what
about its global developments?
Currently, overseas sales account for less than 10% of our sales, but we expect
that Toppan and other large domestic printing companies will in the future be
caught up in the wave of economic globalization. The establishment of a network
of production bases is an important management challenge for Toppan, which is
working to bolster its position in Asian markets, centered on electronics. We have
already strengthened our manufacturing and marketing capabilities in Taiwan and
plan to complete a new LCD color filter plant there in June 2002. Our major production facilities in North America comprise a plant in New Jersey that handles
commercial printing, a plant in Atlanta that primarily produces interior decor
materials, and an electronics plant in San Diego. We are steadily expanding our
production network, and we are now building a new plant in Poway, near San
Diego. We are also working to reinforce our tie-ups in marketing sectors through
offices in New York, Los Angeles, and London. We want to undertake developments that make use of our strengths as an information and communications
company that offers diverse solutions centered on printing.
In addition, in October 2000, we signed a collaborative agreement with the
Beijing Palace Museum in China to conduct research into digitizing cultural assets.
This joint research is targeted at a method of preserving and exhibiting on a semipermanent basis historical assets that are part of the world’s cultural heritage. The
first stage will involve the creation of virtual reality contents for the Forbidden City
and a digital archive of the cultural assets held by the museum.
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Naoki Adachi, President & CEO
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REVIEW OF OPERATIONS
The Toppan Group’s operations are organized into seven fields: Securities and
Cards, Commercial Printing, Publications Printing, Packaging, Industrial
Materials, Electronics, and Business Forms. In the year under review, some
recovery from the previous year was shown in performance in key business sectors in general. Although market conditions for our core commercial printing
operations still remained difficult, we registered a rise in commercial printing
sales. Electronics, for which Toppan has strong expectations, recorded the
highest growth among the Company’s business fields. As a result, Toppan
achieved an increase in net sales.
In the future, we will selectively focus our management resources on
electronics markets, which are expected to post solid growth. We also intend
to actively promote our e-business initiatives, including our digital solutions
and Internet businesses. We will continue working to fortify our earnings
structure in our core printing fields with an aggressive commitment to administrative reform and cost reductions.
Sales by Business Segment (Millions of yen)
1999
(% change)
2000
(% change)
2001
(% change)
2002*
(% change)
Securities and Cards
¥ 50,245
(–0.9%)
¥ 50,198
(–0.1%)
¥ 48,640
(–3.1%)
¥ 48,700
(+0.1%)
Commercial Printing
291,483
(–5.7%)
297,280
(+2.0%)
324,353
(+9.1%)
338,000
(+4.2%)
Publications Printing
181,522
(–6.7%)
177,159
(–2.4%)
175,286
(–1.1%)
179,400
(+2.3%)
Packaging
213,473
(–4.5%)
213,045
(–0.2%)
214,046
(+0.5%)
218,100
(+1.9%)
40,305
(–7.2%)
40,747
(+1.1%)
39,698
(–2.6%)
40,300
(+1.5%)
Electronics
132,611
(–8.7%)
140,691
(+6.1%)
167,361
(+19.0%)
185,500
(+10.8%)
Business Forms
175,797
(–0.5%)
180,521
(+2.7%)
189,465
(+5.0%)
196,000
(+3.4%)
Industrial Materials
* Estimated (as of May 22, 2001)
Note to Review of Operations
As explained in Note 12 of the Notes to Consolidated Financial
Statements, our consolidated segment information is presented for the
Printing and Other segments. The Review of Operations section of this
annual report, however, presents sales information for the Company’s
internal operational areas and for five major consolidated subsidiaries.
The information is presented in this manner so that readers can more
easily understand the performance trends for each of the Company’s
areas of operations. In the Review of Operations section of the annual
report, the sales figures for the consolidated subsidiaries are the consolidated sales figures for Toppan Forms Co., Ltd. (see page 23) and the
nonconsolidated figures for the other four subsidiaries (see page 28),
and the combined total of the sales figures for the other six fields represent the nonconsolidated sales of Toppan Printing Co., Ltd.
AR 01.10.24 6:24 PM ページ 20
SECURITIES AND CARDS
INFORMATION & NETWORKS
Overview of Performance
Sales of securities and cards in the year under review declined 3.1%, to ¥48.6 billion (US$392.3 million), accounting for 5.0% of the Company’s nonconsolidated
sales. We worked to secure new demand stemming from restructuring in the
financial industry and the entrance of new competitors into financial markets.
As a result, sales of negotiable securities expanded and sales of IC cards grew by
a large margin. Sales of magnetic cards, however, recorded a slight decline.
Market Trends and Toppan’s Response
Toppan is using advanced securities printing technologies and information management expertise to further strengthen its market presence as a leader in securities and cards. We provide integrated services in negotiable securities and cards
that extend from planning and design to production and issuance, and we are
taking the initiative in promoting the use of IC cards.
Sales of magnetic cards, such as credit cards, declined following the high
Y2K-related demand in the previous year. In PET cards, we faced difficult market
conditions due to the decline in game card demand in the second half of the year.
Sales of IC cards, however, recorded a significant increase. In negotiable securities,
demand for lottery tickets rose, and as a result of effective initiatives targeting the
development of new business with financial institutions, our key customers,
demand for products with holograms expanded.
Throughout the year under review, we worked to expand our market
shares in existing businesses. At the same time, we aggressively developed new fields
of business, such as IC cards and outsourcing services for the construction, operation,
and administration of customer databases. The use of IC cards is spreading from
Europe to countries around the world, and in Japan the full-scale introduction of card
systems has begun in credit cards, Electronic Toll Charge (ETC), and the amusement
industry. Moreover, IC card systems are expected to be introduced in the near future
in a number of additional areas, including banking, mobile communications, transportation facilities, and resident registration systems administered by municipal governments. In November 2000, Toppan established a card issuance joint venture
company with Gemplus International SA, of France, one of the global leaders in this
field. As a result, we now have a card issuance system that features the most
advanced security and system development capabilities. Also, in customer communications and support services for the financial industry, our provision of comprehensive
solutions making use of original marketing planning capabilities and advanced information processing skills has been highly evaluated. We secured new business in the
provision of overall outsourcing solutions and achieved steady gains in performance.
Strategy for the Future
Toppan will strive to expand the market shares of its existing products. To that end,
we will make continued efforts to secure new demand related to the reorganization
of the financial industry and the entrance of new competitors into the industry. We
will also develop new markets, such as in telecommunications and other sectors.
To improve profitability, Toppan will implement fundamental reforms in
production and, by strengthening operational tie-ups with suppliers, work to reduce
raw material costs. In preparation for the advent of a full-scale market for IC cards,
we will add a new production line at the Ranzan Plant to establish a complete system encompassing development, production, and issuance. Toppan will further
strengthen its position as the leading domestic manufacturer through nationwide
sales efforts as well as through expanded sales of such products as network certification cards (PKI), employee verification cards, and distribution tags. In e-business, we
will strive to expand our operations in the provision of outsourcing services for the
back-office processing of card applications. In addition, we will work to establish
new sources of revenue, such as expanding sales of passport printers in overseas
markets.
In the current year, we anticipate sales of securities and cards to total
¥48.7 billion, an increase of 0.1%.
20
Principal Products
Stocks, bonds, bank passbooks, product
coupons, gift certificates, lottery tickets,
business forms
Creation, processing, and printing of data
Magnetic cards, prepaid cards, IC card
systems
Development and design of security management systems
Consignee for communications management outsourcing
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 21
COMMERCIAL PRINTING
Toppan’s commercial printing sales rose 9.1% during the year under review, to
¥324.4 billion (US$2,615.8 million), accounting for 33.5% of the Company’s nonconsolidated sales. In an operating environment marked by higher advertising
expenditures, centered on the communications, beverage, and household appliance retail industries, the Company achieved this significant level of growth by
working to improve its planning and proposal capabilities to secure orders for
integrated services.
In commercial printing, Toppan’s core business area, the Company is reinforcing its
market position by providing comprehensive customer support in a wide range of
industries. Among the various products and services, we offer a broad array of printing media, marketing solutions that support advertising and promotions, space
media for use in commercial spaces, and digital solutions that facilitate e-business.
Companies with aggressive approaches to marketing increased their
spending on advertising and promotions; total advertising spending in Japan rose
7.2%. Toppan provided planning and proposal based solutions targeting customer convenience, and as a result recorded a significant increase in sales, centered on the appliance retail, credit card, and communications industries.
Favorable sales were recorded by such products as pamphlets, catalogs, flyers,
and POP (Point of Purchase) materials as well as by digital media related products.
On the other hand, demand for gifts and mail-order catalogs was sluggish.
Toppan took a number of steps to broaden its fields of business. Our
comprehensive consumer premium campaign services, for example, include
everything from administrative functions, such as reception, call center operation,
lotteries, and the input of applicant data, to fulfillment, such as product control
and shipping. In the field of environmental communications, we provided comprehensive support that extends from the development of internal systems and
the creation of strategies to the preparation of environmental reports and other
communications tools. We also worked to bolster our presence in environmental
communications by holding large-scale exhibitions and seminars to which leading
domestic and overseas opinion leaders were invited as lecturers. The expansion of
e-commerce has sparked an ongoing shift to the development of electronic catalogs, and in this setting the specifications of our GAMEDIOS resource server are
becoming a de facto standard in product, text, and image databases. In addition,
Toppan has established a position of leadership in the advertising printing industry through the achievement of notable results in the improvement of color management technology and in development.
In the future, Toppan will utilize its strengths in e-business to bolster its provision
of total solutions, with the goal of securing orders for integrated services.
Specifically, we will work to expand sales of comprehensive services for promotional campaigns and to meet higher demand for personalized marketing with our
Integrated Database Marketing (IDM) system and our Personal Marketing
Selective System (PMSS) as well as to increase sales of web solutions. We will thoroughly implement Total Productive Maintenance (TPM) and business process
reengineering to improve our productivity and quality while, at the same time,
installing new equipment in facilities throughout Japan. We will also strive to
speed up the digitization of prepress work, including remote proofing, which
increases the efficiency of color proof work; color management; and Computer To
Plate (CTP) printing, where plates are made without the use of film.
We expect commercial printing sales of ¥338.0 billion in the current
year, an increase of 4.2%.
21
Principal Products
Posters, catalogs, pamphlets, flyers,
calendars, POP materials, gifts, premiums,
space design and promotional events, sales
promotion planning, multimedia-related
activities
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 22
PUBLICATIONS PRINTING
Toppan’s publication printing sales declined 1.1% during the year under review,
to ¥175.3 billion (US$1,413.6 million), accounting for 18.1% of the Company’s
nonconsolidated sales. With the publications market remaining sluggish, book
sales were down, but sales of magazines showed only a slight decline due to the
receipt of orders for new magazines.
Toppan is reinforcing its strong market position in various ways. In addition to
printed publications in a broad range of genres, we produce such electronic
materials as DVDs and CDs. We also strive to support publishers, our mainstay
customers, by making production more efficient and by providing assistance in
new business development.
The publishing market contracted for the fourth consecutive term, due
principally to a combination of increased expenditures on cellular phones and the
Internet and a greater number of stores that sell both secondhand and new
books. In magazines, the trends toward separate volumes and magazine-books
strengthened. During the year under review, 209 new magazines were launched,
a significant increase of 37 from the previous year, while 135 were discontinued, 8
less than in the prior year. Personal computer magazines and women’s magazines
sold relatively well; however, general magazine sales showed a declining trend. In
books, the number of publications increased and a new paperback brand was
introduced, but there were no major bestsellers that activated the market.
Toppan’s book-related sales declined at about the same rate as the market
overall. Nonetheless, our aggressive marketing activities resulted in increased orders
for new magazines, which offset the marketwide decline in the number of issues
printed. We worked to improve quality while using our special strengths in digitization to target publishers with redoubled sales activities. Favorable sales results were
recorded by our Publishing Contents Database operations, where we input content
into a database and then use the database to support secondary applications, such
as on-demand printing and network distribution. We also received orders for
Publishing Fulfillment outsourcing services, which include not only publications
printing but also postal processing and other administrative tasks.
In order to improve production efficiency, we accelerated our adoption
of DTP and factory automation technologies in the year under review. We also
strengthened tie-ups between manufacturing, sales, and the Commercial Printing
Division and worked to minimize all types of losses. In addition, to help prevent
theft in bookstores, which is becoming a serious problem, we developed a security
tag system that inserts non-contact tags in books and magazines at the production stage.
Conditions in the publications market are expected to remain difficult. In this setting, we will strive to obtain orders for integrated services through the implementation of our differentiation strategy, which is centered on our original planning and
creative capabilities and our digitization technologies. By raising production efficiency and making planning proposals, we will work to secure orders for new magazines. We will also take steps to expand sales of on-demand printing, contents
database, and fulfillment services, which will undergo a full-scale launch in the current year. To improve overall profitability, we will strengthen the marketing capabilities of regional offices and upgrade the services we provide to corporations and
municipalities by making full use of our publishing centers. In production, we will
install specialized equipment to facilitate shorter delivery times for reprints.
We anticipate publications printing sales of ¥179.4 billion in the current
year, an increase of 2.3%.
22
Principal Products
Books, weekly magazines, monthly magazines, dictionaries, art books, textbooks,
multimedia publishing, publications planning and editing, mediating of acquisition
of overseas publishing rights
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 23
BUSINESS FORMS
Toppan Forms’ consolidated net sales rose 5.0%, to ¥189.5 billion (US$1,527.9
million). In a difficult operating environment marked by intensified price competition and higher paper prices, core business forms operations recorded solid
growth, centered on DPS (Data Print Services).
Toppan Forms’ main areas of business are the provision of business forms, such as
slips and invoices, and DPS and other printing services. DPS is an integrated service
for organizing, processing, printing, and delivering a range of business documents
based on data entrusted to Toppan Forms by its customers. Against a background
of recent advances in IT, Toppan Forms has expanded the information management services developed through DPS to media other than paper, such as digital
and electronic media. Toppan Forms is meeting a diverse range of information
management needs without any restrictions on the media, including Application
Service Provision (ASP) and other network-related services.
In business forms, sales prices declined due to intensified competition
while paper prices increased. However, higher sales were recorded by mail-related
forms, such as POSTEX (sealed postcards), and by printed materials for sales promotions.
With double-digit sales increases in recent years, DPS has become a driving force behind Toppan Forms’ growth. In an environment marked by expansion in the use of outsourcing, demand for invoices and other business mail was
strong. In addition, our DOD (Digital Printing on Demand) services, which facilitate small lots and short-term delivery, are ideal for direct marketing campaigns of
financial industry, which are centered on personalized marketing. As a result,
Toppan Forms secured new orders for DOD services, and sales increased.
In multimedia-related business, Toppan Forms is responding to the rapid
spread of the Internet with proposals for paperless information management services. In the year under review, Toppan Forms led the industry with the rollout of
its Digital Delivery Service, through which information that companies send to
customers and suppliers, such as statements and invoices, is delivered via the
Internet in a secure fashion.
The accelerating spread of the Internet is beginning to change overall social structures from the ground up. As a result, the structure of demand is changing rapidly
in industry and commerce, and it has become more important to accurately grasp
and rapidly respond to new customer needs. In the area of information management services suitable for paperless information flow, Toppan Forms is already
devoting resources to the development and marketing of network-related services
and products that incorporate digital technologies. In the future, Toppan Forms
will use its operational know-how and the close customer relationships that it has
built up over many years in the business forms industry to bolster its customer-oriented marketing capabilities and to create new demand as a comprehensive
provider of information management services.
Toppan Forms’ consolidated net sales in the current year are expected to
reach ¥196.0 billion, an increase of 3.4%.
23
Principal Products
Continuous forms, multi-function forms,
envelopes, direct mail, catalogs, cards, Data
Print Services (DPS), sales and maintenance
of equipment
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 24
PACKAGING
LIVING ENVIRONMENT
Toppan’s sales in the Packaging Division increased 0.5%, to ¥214.0 billion
(US$1,726.2 million), accounting for 22.1% of the Company’s nonconsolidated
sales. Toppan worked to expand sales of environmentally friendly products in
response to the full implementation of the Container Packaging Recycling Law in
April 2000. Sales of GL film and other flexible packaging materials were higher,
and demand for paper containers was strong.
As recycling takes on growing prominence throughout society, Toppan is using its
capabilities as a leader in packaging to provide products that are both economical
and environmentally friendly throughout their life cycles. Toppan also provides
products and solutions that help corporations to increase the strength of their brands.
Solid sales growth was recorded by products for the pharmaceutical industry and the telecommunications-related sector of the electronics industry, each of
which has been the target of aggressive new business development measures by
Toppan. Rapid growth in demand of GL film supported favorable sales of flexible
packaging materials, and demand for paper containers and corrugated cardboard
boxes was firm. However, due to the rapid shift toward environmentally friendly
products, market conditions for plastic products, especially those used in toiletries,
were difficult.
The reputation of GL film, one of Toppan’s strategic products, was further strengthened during the year under review. As a non-PVC product, GL film is
environmentally friendly, and it offers high barrier performance and functionality.
We have also developed GL-C bottle, which facilitates vapor deposition processing
on products with curved three-dimensional shapes, such as bottles. This product
was added to the GL series of transparent barrier products. For our Cartocan
paper beverage containers, we proposed new applications that take advantage of
Cartocan’s distinctive characteristics as a non-metal container. As a result, we
recorded a significant increase in Cartocan sales.
We bolstered our business in filling containers for other companies with the
launch of the Bottled Pouch and with the introduction of specialized equipment at
the Ranzan Plant that reinforced our production capabilities. Ecogloss recorded
increases in both the number of products in which it is used, centered on the food
industry, and the number of customers that are using it. As a result, Ecogloss drove
our growth in the paper container field. Expanding sales of environmentally friendly
products is a key part of Toppan’s growth strategy, and, in March 2001, we reinforced our position as an industry leader when we received ISO 14001 certification
for our environmental management systems in the Packaging Division’s development, planning, and marketing departments.
Market conditions for our conventional packaging products are expected to remain
sluggish. In response, Toppan will focus on the fundamental concepts of environmental friendliness and consumer convenience and incorporate universal design principles into its production development activities. We will work to further expand our
shares in the medical, pharmaceutical, and electronics markets, which hold strategic
importance for the Packaging Division. Also, the division will strive to raise its profitability by increasing the percentage of sales accounted for by environmentally
friendly products. To that end, we will enhance the functionality of and broaden the
range of uses for products in the GL series, such as retort pouches that can be used in
microwave ovens. With Cartocan, we will take steps to secure more orders in the field
of nutritious foods and will work to expand sales by setting Cartocan as a core product in our consignee filling operations, along with Bottled Pouch.
In the current year, we expect packaging sales of ¥218.1 billion, an
increase of 1.9%.
24
Principal Products
Planning, development, and manufacture
of packaging, including paper containers,
flexible packaging materials, liquid containers, cups, plastic containers, corrugated
cardboard containers, labels
Development and manufacture of packaging materials
Design and manufacture of packagingrelated systems equipment
Packing of products into containers (as outsourcing consignee)
Packaging-related consulting
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 25
INDUSTRIAL MATERIALS
LIVING ENVIRONMENT
Toppan’s sales of industrial materials decreased 2.6%, to ¥39.7 billion (US$320.1
million), accounting for 4.1% of the Company’s nonconsolidated sales.
Environmentally friendly products, a key focus for the Company in recent years,
enjoyed strong demand. But with the U.S. market sluggish, overseas sales declined.
As a result, the division’s sales were down slightly from the previous year.
Toppan uses its original expertise in printing technologies and materials development to supply residential construction companies and building materials manufacturers with a wide range of housing-related materials that feature functionality
and high added value. As a result, the Company has established a position as a
leader in the housing materials industry.
Domestically, the operating environment was challenging in the year
under review. With Japan’s sluggish economy, new housing starts declined from
the previous year, and intensifying competition among companies resulted in
lower sales prices. Overseas, the U.S. market was weak, and exports declined.
Nonetheless, aggressive marketing activities emphasizing the competitiveness of
our products enabled us to expand our market share. In particular, social concern
for the environment continued to grow, and we recorded higher sales of environmentally friendly products, which we have emphasized in recent years. Our major
environmentally friendly products include Toppan Ecosheet, a non-PVC decorative
sheet, and Toppan Ecowall, a non-PVC wallpaper. Each of these products was a
driving force behind the division’s performance. Also, our original 101 Series of
decorative sheets was favorably evaluated and strengthened our lineup of environmentally friendly products.
In marketing, we introduced a new web site (http://forest.topica.ne.jp/)
that features showroom functions and began to distribute information to architects
and interior designers. These activities helped us to bolster our customer base.
There is no expectation of a rapid recovery in housing starts, and market conditions are expected to remain difficult. In this setting, we will work to increase sales
of industrial materials by expanding our lineup of high-value-added, highly functional products, centered on environmentally friendly products. For example, we
will broaden the applications of Toppan Ecosheet from doors and walls to include
kitchens, bathrooms, and flooring by adding application-specific functions. We
will also work to expand sales of our 101 Coordination Floor, a product in our
original 101 Series, as a flooring material with superior design functionality, principally for use in multi-unit dwellings, such as condominiums. In addition, we will
bolster our product development and sales activities for recyclable materials.
In production, we will move ahead with environmental initiatives, such
as eliminating toluene and xylene from inks, solvents, and resins that we use.
In the current year, we expect sales of industrial materials to total ¥40.3
billion, an increase of 1.5%.
25
Principal Products
Decorative sheets, wallpaper, flooring,
furniture finishings, exterior finishings,
electromagnetic shields
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 26
ELECTRONICS
ELECTRONICS
Toppan’s sales in the Electronics Division increased 19.0%, to ¥167.4 billion
(US$1,349.7 million), accounting for 17.2% of the Company’s nonconsolidated
sales. Our mainstay LCD color filters continued to register significant growth, and,
among semiconductor-related products, photomasks and boards for semiconductor packages enjoyed firm demand.
Toppan uses the microfabrication technologies that it acquired through extensive
experience in platemaking in order to provide the display and semiconductor
industries with parts for advanced electronic components and devices. The technical strengths and quality of our products have been highly evaluated, and in each
of these fields we have established a position of market leadership. We have
steadily expanded the scale of our operations by continuously strengthening our
market competitiveness, and the Electronics Division has become the key driving
force of Toppan’s growth.
Display-Related Products
In display-related products, sales of LCD color filters, in which Toppan boasts the
top share of the global market, continued to record strong growth. The LCD display market was characterized by significant expansion in demand for products
used in notebook PCs, PC monitors, car navigation systems, and cellular phones.
Although slumping demand for PCs in the second half of the year had an adverse
influence, our dominant market position was unshaken. In this setting, Toppan
continued to expand production capacity by installing a large-scale production
line in the Niigata Plant. In technical development, we took steps to further
enhance the quality and functionality of our color filters. Specifically, we developed a new product that expands the color-reproduction capabilities of our EBU
(European Broadcasting Union) standard based color filter. This filter, the first of
its kind, is currently in mass production. Toppan’s color-reproduction technology
has been highly evaluated in the industry, and it recently received the Display
Material or Component of the Year award from the Society for Information
Display, a globally respected international organization.
On the other hand, sales of shadow masks for CRTs (Cathrode Ray
Tubes) declined from the previous year due to sluggish conditions in the market
for personal computer CRT monitors. However, Toppan worked to improve profitability by specializing in high-value-added, high-precision shadow masks and
focusing resources on the manufacture of these products.
Other products enjoying increasing demand included anti-reflection
filters for notebook computers and cellular phones as well as screens for highprecision, large-screen projection TVs.
Semiconductor-Related Products
In semiconductor-related products, sales of the division’s mainstay photomasks
were favorable. The semiconductor market itself entered an adjustment phase in
the second half of the fiscal year, but new product development in the semiconductor industry became more active, leading to higher demand for photomasks.
Toppan worked to expand its operations by making full use of its technical
strengths and entering cooperative ventures with semiconductor companies.
These efforts yielded steady results.
In addition, strong sales growth was recorded by BGA (Ball Grid Array)
semiconductor packaging, which meets needs for small surface mount areas and
high pin counts. In the year under review, we began the full-fledged operation of
mass production lines for both plastic and tape BGA packages, thus strengthening
our operational foundation.
26
Principal Products
Photomasks, leadframes, printed wiring
boards, shadow masks, color filters, design
and development of software for LSIs and
printed wiring boards, plastic molds
SALES
(Billion ¥)
AR 01.10.24 6:24 PM ページ 27
Sales of printed wiring boards increased from the previous year due to
the success of our mass production technologies for buildup, multilayer, high-density, and high-reliability boards.
The Electronics Division will focus its management resources on product lines with
high growth potential, while those product lines with low profitability and growth
potential will be streamlined through operational rationalization measures. In this
way, we will work to expand our electronics operations by concentrating our
investment on color filters, photomasks, and semiconductor packaging. In shadow
masks, we will make a transition to high-value-added products for high-precision
displays and large-scale TVs, rationalize our operations, and focus on profitability
in operational development.
In accordance with our growth strategy for LCD color filters, our global
operational development will center on Taiwan, where the LCD market has posted
rapid expansion in recent years, and we will strive to bolster our position as the
top manufacturer in the world. In Taiwan, we are providing technical assistance to
a local company to facilitate OEM (Original Equipment Manufacture), and we are
moving ahead with the construction of a new plant that will be operated by a
local subsidiary. In technology, our high purity color resist color filters and EBU
color filters have been highly evaluated in the industry, and with continued technical development we will reinforce the position of these products as the de facto
industry standards. In the future, we will take advantage of expanded production
capabilities and superior quality to achieve significant growth in sales in markets
around the world.
In photomasks, we will focus on developing and marketing advanced
masks that meet needs for greater precision in semiconductors and will emphasize
cooperative ventures with semiconductor makers. In addition, we will increase
production capacity for advanced masks at our Taiwan production base and work
to increase our share of global markets, including Taiwan.
We will also expand our sales of BGA packages through the full-scale
operation of our mass production line. Our goal is to rapidly develop BGA packages into one of the Electronics Division’s core products. We believe that our
aggressive strategic development measures will result in continued strong growth.
We expect sales of electronic products to reach ¥185.5 billion in the current year, an increase of 10.8%.
27
AR 01.10.24 6:24 PM ページ 28
OVERVIEW OF PRINCIPAL SUBSIDIARIES
■ Toppan Label Co., Ltd.
Representative Director: Kouji Sato
Common Stock: ¥1,000 million
Principal Business: Sales, manufacturing, and R&D of a wide range of labels and
label applications; Data print services and CD-R writing services; Total systematic
sales of labels and labeling machines, including label printers
For the years ended March 31, 2000 and 2001
Millions of yen
2000
2001
Net Sales ．．．．．．．．．．．．．．．．．．．．．¥11,914
¥13,123
Net Income (Loss)．．．．．．．．．．．．．．．．．．．．102
(191)
Of which, amortization of past service costs for the year ended March 31, 2001
was ¥511 million.
■ Toppan Cosmo, Inc.
Representative Directors: Shinji Kinoshita, Tatsuo Takizawa
Common Stock: ¥500 million
Principal Business: Sales and import/export of architectural and interior materials,
such as decorative sheets, decorative boards, and architectural materials
Millions of yen
2000
2001
Net Sales ．．．．．．．．．．．．．．．．．．．．．¥75,118
¥77,675
Net Income (Loss)．．．．．．．．．．．．．．．．．．．．436
(56)
was ¥1,164 million.
■ Tamapoly Co., Ltd.
Representative Directors: Masamichi Matsuki, Yasuo Matsuki
Principal Business: Manufacture and sales of polyethylene film and laminated
products
Millions of yen
2000
2001
Net Sales ．．．．．．．．．．．．．．．．．．．．．¥15,651
¥16,115
Net Income ．．．．．．．．．．．．．．．．．．．．．．530
465
was ¥347 million.
■ Froebel-Kan Co., Ltd.
Representative Director: Mamoru Kitabayashi
Principal Business: Publishing and sales of books; Manufacture and sales of
products relating to the education and development of preschool children
Millions of yen
2000
2001
Net Sales ．．．．．．．．．．．．．．．．．．．．．¥12,307
¥11,899
Net Income (Loss)．．．．．．．．．．．．．．．．．．．．188
(162)
was ¥396 million.
28
AR 01.10.24 6:24 PM ページ 29
FINANCIAL SECTION
Management’s Discussion and Analysis of Operating Results and Financial Condition 30
Consolidated Five-Year Financial Summary 33
Consolidated Balance Sheets 34
Consolidated Statements of Income 36
Consolidated Statements of Shareholders’ Investment 37
Consolidated Statements of Cash Flows 38
Notes to Consolidated Financial Statements 39
Report of Independent Public Accountants 52
AR 01.10.24 6:24 PM ページ 30
MANAGEMENT‘S DISCUSSION AND ANALYSIS OF
OPERATING RESULTS AND FINANCIAL CONDITION
■ OPERATING RESULTS
Summary
Toppan is one of Japan’s leading printing
companies, with operations extending to
securities and cards, commercial printing,
publications printing, packaging, industrial materials, electronics, and business
forms. The Company uses its strong competitive edge, which stems from a solid
base of customers in a wide range of
industrial fields, to establish a position of
leadership in each of its areas of business.
In the fiscal year ended March
31, 2001, the Company recorded an
increase in sales for the second consecutive term. Consolidated net sales rose
4.6%, to ¥1,293.8 billion (US$10,434.2
million), from ¥1,237.1 billion in the
previous year. This increase was the
result of balanced operational development in each field of business, with commercial printing and electronics making
especially strong contributions to sales.
In conducting its operations,
Toppan made significant strides in the
year under review. In all areas, customers were provided with high-valueadded products and services featuring
superior competitiveness. The Company
also strove to raise profitability by boosting production efficiency and succeeded
in enhancing its market presence.
Operating income rose 3.3%
from ¥65.3 billion in the previous year,
to ¥67.4 billion (US$543.8 million) in
the year under review. Net income was
NET INCOME
(Billion ¥)
(¥)
Net Income per Share
(right scale)
down 51.6%, to ¥14.8 billion (US$119.0
million). This decline was primarily attributable to amortization of past service
costs of ¥76.1 billion (US$613.7 million)
related to a change in the accounting
standard for retirement benefits.
Net Sales
Economic trends were mixed, and operating conditions in the printing industry
remained sluggish. Demand did recover,
however, in commercial printing. In the
year ended March 2001, Toppan’s consolidated net sales increased 4.6%, to
¥1,293.8 billion (US$10,434.2 million). In
the year ended March 2000, sales were
up 1.1%, to ¥1,237.1 billion. In the year
under review, higher sales were recorded
in commercial printing, packaging, electronics, and business forms, while sales in
securities and cards, publications printing,
and industrial materials declined.
In commercial printing, advertising and promotion demand rose, and
increased sales were registered by such
products as flyers, catalogs, and pamphlets. In packaging, demand was strong
for flexible packaging materials, films, and
labels. In electronics, growth in demand
for information and communications
equipment led to a significant increase in
sales of LCD color filters; demand for
semiconductor photomasks was also
favorable. In business forms, our Data
Print Services (DPS) recorded higher sales
as companies increasingly outsourced
their business mail operations.
RETURN ON SALES
In securities and cards, sales
of negotiable securities and IC cards
increased, but magnetic cards recorded
lower sales. In publications printing,
market conditions were difficult as sales
of magazines and books declined on
both a unit basis and a volume basis. In
industrial materials, meanwhile, demand
for housing materials, such as decorative
sheets and titanium paper, was strong.
Cost of Sales and Selling, General
and Administrative Expenses
The cost of sales rose 2.7%, to ¥1,077.0
billion (US$8,685.3 million). The rate of
increase in the cost of sales was less than
the 4.6% rate of increase in sales; therefore, the cost of sales as a percentage of
net sales decreased 1.5 percentage
points, to 83.2%. The growth in the cost
of sales was principally attributable to
higher sales and to increased depreciation and amortization accompanying
capital investment. We implemented
thorough cost-reduction measures in our
printing operations, which were the
principal source of profits in the year
under review. We also made progress
with raising the overall efficiency of facility utilization through total productivity
management activities, with streamlining processes through digitization, and
with enhancing labor efficiency through
administrative reforms. In addition to
increasing efficiency in facilities, personnel, and administration, Toppan is
working to further reduce costs by
RETURN ON EQUITY & ASSETS
(%)
(%)
Operating Income as % of Sales
Net Income as % of Sales
30
Return on Average Equity
Return on Average Assets
AR 01.10.24 6:24 PM ページ 31
strengthening production technology
capabilities, consolidating production
bases, and implementing globalization
initiatives, such as stepping up overseas
production. As a result of these efforts,
gross profit rose 14.8%, to ¥216.9 billion (US$1,748.8 million).
Selling, general and administrative (SG&A) expenses rose 20.9%, to
¥149.4 billion (US$1,205.0 million). The
ratio of SG&A expenses to net sales rose
to 11.5%, from 10.0% in the previous
year. The increase in SG&A expenses was
primarily attributable to higher transportation costs accompanying a change
in accounting treatment, which offset a
decline in labor expenses. (For further
information about the change in accounting standards related to transportation
costs, please refer to Note 2 to consolidated financial statements on Page 42.)
Research and development
expenses rose 2.6%, to ¥18.9 billion
(US$152.0 million). R&D expenses as a
percentage of net sales were about the
same as in the previous year, at 1.5%.
Toppan continues to invest aggressively
in R&D, with the objectives of ensuring
technological superiority in the market,
of raising the functionality of existing
products, and of developing high-valueadded products. Spending on R&D is
principally allocated to electronics and
e-business operations.
CASH DIVIDENDS PER SHARE
(¥)
Operating Income
Operating income rose 3.3%, to ¥67.4
billion (US$543.8 million), and the operating income margin was 5.2%, compared with 5.3% in the previous year.
Other Income (Expenses)
Net other expenses totaled ¥32.4 billion
(US$260.9 million), due primarily to
amortization of past service costs of
¥76.1 billion (US$613.7 million), which
offset gains on securities contributed to
the employee retirement benefit trust of
¥30.5 billion (US$246.0 million) and a
gain on sale of securities of ¥13.6 billion
(US$109.8 million). In financial income
and expenses, interest expense less interest and dividend income netted out to
an expense of ¥1.2 billion (US$9.8 million), an improvement from the expense
of ¥1.5 billion in the previous year.
Income before Income Taxes
As a result of the factors outlined above,
income before income taxes declined
43.3%, to ¥35.1 billion (US$282.9 million).
Income Taxes and Minority Interests
in Net Income of Consolidated
Subsidiaries
Provision for income taxes was down
43.6%, to ¥15.7 billion (US$126.6 million), while the statutory tax rate in
Japan was unchanged at 41.7%. The
effective tax rate, or the ratio of
provision for income taxes to income
NET CASH PROVIDED BY
OPERATING ACTIVITIES
(Billion ¥)
before income taxes, was about the
same level as in the previous year, at
44.7%.
The Company also recorded
¥4.6 billion (US$37.3 million) in minority interests in net income of consolidated subsidiaries, which is subtracted from
net income before minority interests in
net income of consolidated subsidiaries.
Net Income
Net income decreased 51.6%, to ¥14.8
billion (US$119.0 million). The ratio of
net income to net sales was 1.1%, compared with 2.5% in the previous year.
Return on assets (simple average of yearend figures for the year under review
and the previous year) was 1.1%, compared with 2.4% in the previous year.
Return on equity (same method of calculation) was 2.1%, compared with
4.4% in the previous year. Net income
per share fell to ¥21.00 (US$0.17), from
¥42.54 in the previous year.
■ FINANCIAL CONDITION
Toppan emphasizes the maintenance
of a strong financial condition and
works to generate cash flow sufficient for
the Company to make the investment
needed for smooth operational administration and investment in future strategic
growth. Toppan maintained a sound
financial position during the year under
review.
CAPITAL EXPENDITURES
(Billion ¥)
(Billion ¥)
Depreciation & Amortization
(right scale)
31
AR 01.10.24 6:24 PM ページ 32
Cash Flows
Net cash provided by operating activities
declined 15.6% during the year under
review, to ¥88.8 billion (US$716.5 million). This decrease was principally
attributable to gains on securities contributed to the employee retirement
benefit trust and to an increase in
accounts receivable.
Net cash used in investing
activities was down 6.3%, to ¥71.5 billion (US$576.5 million). Expenditures for
property, plant and equipment rose
21.9%, to ¥95.8 billion (US$772.8 million). To establish a foundation for future
growth, in recent years the Company
has invested aggressively in fields of
strategic importance, especially electronics. In other fields, however, we reduced
our capital investment in the year under
review on account of market trends.
Net cash used in financing
activities was down 70.1%, to ¥4.6 billion (US$37.4 million), due primarily to
the recording of proceeds from issuance
of common stock of consolidated subsidiaries to minority interests and to an
increase in proceeds from long-term
debt. Cash dividends paid totaled ¥11.5
billion (US$93.1 million).
Toppan maintained ample liquidity, with cash and cash equivalents at
year-end up 10.1%, to ¥139.9 billion
(US$1,128.2 million). Our fundamental
DEBT-EQUITY RATIO
(%)
policy is to maintain capital spending for
renewal and renovation purposes within
the limits of cash flow and to raise funds
in the capital market when necessary for
large investment projects, such as new
plant construction.
Assets, Liabilities and Shareholders’
Investment
Current assets at the end of the term
edged up 0.4% from the previous yearend, to ¥661.7 billion (US$5,336.5 million), while current liabilities totaled
¥461.5 billion (US$3,721.5 million),
an increase of 9.9%. Working capital
was down 16.4%, to ¥200.3 billion
(US$1,614.9 million), and the current
ratio was 1.43. Property, plant and
equipment, less accumulated depreciation, rose 5.2%, to ¥515.0 billion
(US$4,153.6 million).
Long-term indebtedness
decreased 21.5%, to ¥90.8 billion
(US$732.2 million) at year-end. The
debt-equity ratio remained at a low
level, improving 0.5 percentage points,
to 19.4%.
Shareholders’ investment rose
1.8%, to ¥716.1 billion (US$5,774.9 million), due to the recording of net unrealized holding gains on securities and to
higher retained earnings. The ratio of
shareholders’ investment to total assets
declined to 51.9%, from 54.1% at the
SHAREHOLDERS‘ INVESTMENT
(Billion ¥)
(%)
Equity Ratio
(right scale)
32
previous year-end. Net assets per share
rose 1.8%, to ¥1,023.85. Total assets
increased 6.1%, to ¥1,380.2 billion
(US$11,130.3 million).
■ DIVIDEND POLICY
Dividends per share were maintained at
¥16.00 (US$0.13). Toppan’s approach
to the payment of dividends is to provide shareholders with a stable yet gradually increasing flow of dividend
payments while retaining within the
Company the resources needed to
strengthen the foundation for future
growth.
The Company allocates
retained earnings to the renewal and
expansion of existing production facilities, principally in the strategically
important field of electronics, and to
investment in the fields of e-business
and environmental business. Through
these activities, Toppan works to
strengthen the Company and to achieve
future growth in profitability, and thus
to provide a stable return to shareholders through a steady increase in enterprise value.
TOTAL ASSETS
(Billion ¥)
AR 01.10.24 6:24 PM ページ 33
CONSOLIDATED FIVE-YEAR
FINANCIAL SUMMARY
For the years ended March 31, 1997, 1998, 1999, 2000 and 2001
Millions of yen
1997
Thousands of dollars*
1998
1999
2000
2001
2001
Net sales ．．．．．．．．．．．¥1,274,339
¥1,284,145
¥1,223,439
¥1,237,082
¥1,293,837
$10,434,169
Cost of sales ．．．．．．．．． 1,054,486
For the Year:
1,059,558
1,030,295
1,048,195
1,076,983
8,685,347
% of net sales ．．．．．．．．
82.7%
82.5%
84.2%
84.7%
83.2%
—
SG&A expenses ．．．．．．．．
131,711
130,262
127,927
123,620
149,423
1,205,024
10.3%
10.1%
10.5%
10.0%
11.5%
—
Operating income ．．．．．．．
88,142
94,325
65,217
65,267
67,431
543,798
6.9%
7.3%
5.3%
5.3%
5.2%
—
Income before income taxes ．．
71,814
107,322
57,775
61,880
35,080
282,903
Net income ．．．．．．．．．．
21,621
47,381
26,700
30,477
14,752
118,968
1.70%
3.69%
2.18%
2.46%
1.14%
—
% of average assets ．．．．．
1.90%
3.86%
2.08%
2.37%
1.10%
—
% of average equity ．．．．．
3.57%
7.40%
3.95%
4.39%
2.08%
—
Per share of common stock (yen and dollars):
Net income ．．．．．．．．．
¥30.25
¥65.50
¥37.29
¥42.54
¥21.00
$0.17
Cash dividends ．．．．．．．
14.00
15.00
15.00
16.00
16.00
0.13
R&D expenses．．．．．．．．．
¥15,874
¥ 17,131
¥ 18,875
¥18,369
¥18,850
$152,016
Capital expenditures ．．．．．．
78,495
128,734
100,921
81,146
99,051
798,798
Depreciation and amortization ．
53,724
57,824
60,274
62,572
65,148
525,387
Current assets ．．．．．．．．．¥ 628,598
¥ 711,977
¥ 643,415
¥ 659,182
¥ 661,725
$ 5,336,492
At Year-End:
Current Iiabilities．．．．．．．．
449,186
462,817
409,995
419,751
461,472
3,721,548
Working capital ．．．．．．．．
179,412
249,160
233,420
239,431
200,253
1,614,944
Cash and cash equivalents ．．．
139,723
167,251
114,221
127,057
139,899
1,128,218
net of depreciation ．．．．．．
385,535
445,916
476,649
489,467
515,046
4,153,597
Long-term indebtedness ．．．．
64,279
113,050
114,242
115,679
90,792
732,194
Total assets ．．．．．．．．．． 1,151,883
Property, plant and equipment,
1,300,649
1,267,357
1,301,180
1,380,156
11,130,290
Shareholders’ investment ．．．．
612,265
667,464
683,906
703,599
716,085
5,774,879
Equity ratio ．．．．．．．．．．
53.2%
51.3%
54.0%
54.1%
51.9%
—
Debt-equity ratio ．．．．．．．
16.4%
21.5%
20.7%
19.9%
19.4%
—
Number of employees ．．．．．
33,719
34,402
33,464
33,379
32,163
Number of common shares
outstanding ．．．．．．．．．
699,300
699,411
699,411
699,411
699,411
Other Statistics:
* U.S. dollar amounts are translated from yen at the rate of ¥124=U.S.$1, as at March 31, 2001.
Note 1: The consolidated results for the year ended March 31, 1997, reflect the ¥9,015 million ($72,702 thousand) write-off pertaining to the acquisitions of Toppan Moore Co.,
Ltd.’s and Avery Toppan Co., Ltd.’s goodwill.
Note 2: The consolidated results for the year ended March 31, 1998, reflect the ¥20,868 million ($168,290 thousand) gain on sale of investment in Toppan Forms Co., Ltd.
(Toppan Moore Co., Ltd. changed its name to Toppan Forms Co., Ltd. on April 1, 1997.)
33
AR 01.10.24 6:24 PM ページ 34
CONSOLIDATED
BALANCE SHEETS
As at March 31, 2000 and 2001
Millions of yen
2000
Thousands of dollars
(Note 1)
2001
2001
Assets
Current Assets:
Cash and cash equivalents (Note 1) ．．．．．．．．．．．．．．．．．
¥ 127,057
¥ 139,899
$ 1,128,218
Time deposit with original maturities over three months ．．．．．．．．
2,572
1,668
13,452
Marketable securities (Notes 1 and 3) ．．．．．．．．．．．．．．．．
61,259
19,285
155,524
Trade ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
385,937
410,350
3,309,274
Affiliates (Note 4) ．．．．．．．．．．．．．．．．．．．．．．．
1,125
977
7,879
Less: Allowance for doubtful receivables (Note 1)．．．．．．．．．．
(2,795)
(2,888)
(23,290)
Finished goods and merchandise ．．．．．．．．．．．．．．．．．
34,172
38,206
308,113
Work in process and raw materials ．．．．．．．．．．．．．．．．
36,315
37,994
306,403
Deferred income taxes (Notes 1 and 6) ．．．．．．．．．．．．．．．．
6,413
8,193
66,073
Other current assets ．．．．．．．．．．．．．．．．．．．．．．．．
7,127
8,041
64,846
Total current assets ．．．．．．．．．．．．．．．．．．．．．．．
659,182
661,725
5,336,492
Land ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
104,219
107,801
869,363
Buildings and structures ．．．．．．．．．．．．．．．．．．．．．．
360,765
390,252
3,147,194
Machinery and equipment ．．．．．．．．．．．．．．．．．．．．．
637,115
670,060
5,403,709
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
1,102,099
1,168,113
9,420,266
Notes and accounts receivable—
Inventories (Note 1)—
Property, Plant and Equipment, at cost (Notes 1 and 5):
Less: Accumulated depreciation ．．．．．．．．．．．．．．．．．．．
(612,632)
(653,067)
(5,266,669)
489,467
515,046
4,153,597
Investments in and advances to affiliates (Notes 1 and 4) ．．．．．．．．
45,001
46,145
372,137
Investment securities (Notes 1 and 3) ．．．．．．．．．．．．．．．．
58,866
106,542
859,210
Deferred income taxes (Notes 1 and 6) ．．．．．．．．．．．．．．．．
6,638
14,146
114,081
Long-term loans receivable from employees and other ．．．．．．．．．
42,026
36,552
294,773
Total investments and other assets ．．．．．．．．．．．．．．．．
152,531
203,385
1,640,201
Total Assets ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥1,301,180
¥1,380,156
$11,130,290
Net property, plant and equipment ．．．．．．．．．．．．．．．
Investments and Other Assets:
The accompanying notes to the consolidated financial statements are an integral part of these balance sheets.
34
AR 01.10.24 6:24 PM ページ 35
Millions of yen
(Note 1)
2000
2001
2001
Liabilities and Shareholders’ Investment
Current Liabilities:
Short-term bank borrowings, average interest 5.2% and
5.6% as at March 31, 2000 and 2001, respectively ．．．．．．． ¥
Current portion of long-term indebtedness (Note 5) ．．．．．．．．
23,495
¥
21,493
$
173,331
894
26,656
214,968
Trade ．．．．．．．．．．．．．．．．．．．．．．．．．．．
291,330
311,349
2,510,879
Construction ．．．．．．．．．．．．．．．．．．．．．．．．
47,406
42,762
344,855
Affiliates (Note 4) ．．．．．．．．．．．．．．．．．．．．．．
14,287
13,481
108,718
Accrued expenses ．．．．．．．．．．．．．．．．．．．．．．．
25,323
24,913
200,910
Income taxes (Notes 1 and 6) ．．．．．．．．．．．．．．．．．．
17,016
20,818
167,887
Total current liabilities ．．．．．．．．．．．．．．．．．．．．
419,751
461,472
3,721,548
Long-term indebtedness (Note 5) ．．．．．．．．．．．．．．．．
115,679
90,792
732,194
Employees’ severance and retirement benefits (Notes 1 and 7) ．．．．
23,555
62,949
507,653
Deferred income taxes (Notes 1 and 6) ．．．．．．．．．．．．．．
273
342
2,758
Other long-term liabilities ．．．．．．．．．．．．．．．．．．．．
406
617
4,976
Total long-term liabilities ．．．．．．．．．．．．．．．．．．
139,913
154,700
1,247,581
Minority Interests ．．．．．．．．．．．．．．．．．．．．．．．
37,917
47,899
386,282
as at March 31, 2000 and 2001 ．．．．．．．．．．．．．．
104,985
104,985
846,653
Additional paid-in capital ．．．．．．．．．．．．．．．．．．．．
117,738
117,738
949,500
Retained earnings ．．．．．．．．．．．．．．．．．．．．．．．
480,876
483,962
3,902,920
Net unrealized holding gains on securities (Notes 1 and 3) ．．．．．
—
14,358
115,790
Foreign currency translation adjustments (Note 1) ．．．．．．．．．
—
(4,953)
(39,944)
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
703,599
Less: Treasury stock．．．．．．．．．．．．．．．．．．．．．．．
—
Total shareholders’ investment ．．．．．．．．．．．．．．．．
703,599
716,085
5,774,879
Total Liabilities and Shareholders’ Investment ．．．．．．．．．． ¥1,301,180
¥1,380,156
$11,130,290
Notes and accounts payable—
Long-Term Liabilities:
Commitments and Contingent Liabilities (Note 11)
Shareholders’ Investment (Note 8):
Common stock, par value ¥50 per share;
Authorized—1,200,000,000 shares
Outstanding—699,411,267 shares
35
716,090
(5)
5,774,919
(40)
AR 01.10.24 6:24 PM ページ 36
CONSOLIDATED
STATEMENTS OF INCOME
Millions of yen
1999
(Note 1)
2000
2001
2001
Net Sales ．．．．．．．．．．．．．．．．．．．．．．¥1,223,439
¥1,237,082
¥1,293,837
$10,434,169
Cost of Sales ．．．．．．．．．．．．．．．．．．．． 1,030,295
1,048,195
1,076,983
8,685,347
Gross Profit ．．．．．．．．．．．．．．．．．．．．．
193,144
188,887
216,854
1,748,822
Selling, General and Administrative Expenses ．．．．．
127,927
123,620
149,423
1,205,024
Operating income ．．．．．．．．．．．．．．．．
65,217
65,267
67,431
543,798
Interest expense ．．．．．．．．．．．．．．．．．．．
(4,412)
(3,919)
(3,623)
(29,218)
Interest and dividend income ．．．．．．．．．．．．．
2,884
2,391
2,410
19,435
Rental income on leased equipment ．．．．．．．．．．
1,413
1,581
1,338
10,790
Amortization of past service costs (Notes 1 and 7) ．．．．
(2,564)
(1,694)
(76,104)
(613,742)
Foreign currency exchange losses ．．．．．．．．．．．
(2,030)
(900)
(224)
(1,806)
(2,336)
(492)
(603)
(4,863)
821
3,098
24,984
Other Income (Expenses):
Loss from valuation of marketable securities and
investment securities ．．．．．．．．．．．．．．．
Equity in earnings of affiliates (Note 1) ．．．．．．．．．
260
Gain on sale of property．．．．．．．．．．．．．．．．
2,620
340
4,075
32,863
Gain on sale of securities ．．．．．．．．．．．．．．．
1,779
6,053
13,609
109,750
Reversal of allowance for doubtful receivables (Note 1) ．．
1,496
—
—
—
retirement benefit trust (Notes 1 and 7) ．．．．．．．．
—
—
30,505
246,008
Special retirement benefits ．．．．．．．．．．．．．．
(2,782)
—
—
—
Centennial project expenses ．．．．．．．．．．．．．．
—
—
(2,154)
(17,371)
Restructuring costs ．．．．．．．．．．．．．．．．．．
—
—
(800)
(6,452)
Other, net．．．．．．．．．．．．．．．．．．．．．．
(3,770)
(7,568)
(3,878)
(31,273)
Other income (expenses) — net ．．．．．．．．．．．
(7,442)
(3,387)
(32,351)
(260,895)
57,775
61,880
35,080
282,903
Current ．．．．．．．．．．．．．．．．．．．．．．．
26,223
30,383
35,524
286,484
Deferred ．．．．．．．．．．．．．．．．．．．．．．
1,724
(2,565)
(19,826)
(159,887)
29,828
34,062
19,382
156,306
of Consolidated Subsidiaries ．．．．．．．．．．．．．
(3,128)
(3,585)
(4,630)
(37,338)
Net Income ．．．．．．．．．．．．．．．．．．．．．¥
26,700
Gains on securities contributed to the employee
Income before Income Taxes ．．．．．．．．．．．．．
Provision for Income Taxes (Notes 1 and 6):
Net Income before Minority Interests
in Net Income of Consolidated Subsidiaries ．．．．．
Minority Interests in Net Income
¥
30,477
¥
14,752
Yen
$
118,968
Dollars
(Note 1)
Per Share of Common Stock (Note 9):
Net income ．．．．．．．．．．．．．．．．．．．．．
¥37.29
¥42.54
¥21.00
$0.17
Cash dividends, applicable to earnings for the year ．．．．
15.00
16.00
16.00
0.13
The accompanying notes to the consolidated financial statements are an integral part of these statements.
36
AR 01.10.24 6:24 PM ページ 37
CONSOLIDATED STATEMENTS OF
SHAREHOLDERS’ INVESTMENT
Millions of yen
1999
(Note 1)
2000
2001
2001
Common Stock:
Beginning balance ．．．．．．．．．．．．．．．．．．．
¥104,985
¥104,985
¥104,985
$846,653
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥104,985
¥104,985
¥104,985
$846,653
¥117,738
¥117,738
¥117,738
$949,500
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥117,738
¥117,738
¥117,738
$949,500
¥444,741
¥461,183
¥480,876
$3,878,032
Net income ．．．．．．．．．．．．．．．．．．．．．．
26,700
30,477
14,752
118,968
．．．．．．．．．．．．．．．．．．
(10,841)
(10,491)
(11,540)
(93,064)
Directors’ bonuses ．．．．．．．．．．．．．．．．．．．
(355)
(293)
(333)
(2,685)
Additional Paid-in Capital:
Retained Earnings (Note 8):
Cash dividends paid
Effect of adoption of tax allocation accounting
(Notes 1 and 6) ．．．．．．．．．．．．．．．．．．．．
938
—
—
—
in subsidiaries and affiliates (Note 1) ．．．．．．．．．．．
—
—
207
1,669
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥461,183
¥480,876
¥483,962
$3,902,920
¥—
¥—
Increase resulting from changes in equity interest
Net Unrealized Holding Gains on Securities:
¥
—
$
—
Adoption of new accounting standard for
financial instruments (Notes 1 and 3) ．．．．．．．．．．
—
—
14,358
115,790
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥—
¥—
¥14,358
$115,790
¥—
¥—
¥
$
financial statements (Note 1) ．．．．．．．．．．．．．．
—
—
(4,953)
(39,944)
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥—
¥—
¥(4,953)
$(39,944)
¥—
¥—
¥—
$ —
Treasury stock acquired, net ．．．．．．．．．．．．．．．
—
—
(5)
(40)
Ending balance ．．．．．．．．．．．．．．．．．．．．．
¥—
¥—
¥(5)
$(40)
Foreign Currency Translation Adjustments:
—
—
Adjustment from translation of foreign currency
Treasury Stock:
37
AR 01.10.24 6:24 PM ページ 38
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Millions of yen
1999
(Note 1)
2000
2001
2001
Cash Flows from Operating Activities:
Income before income taxes ．．．．．．．．．．．．．．．．．
¥ 57,775
¥ 61,880
¥ 35,080
$ 282,903
60,274
62,572
65,148
525,387
567
76,104
613,742
(30,505)
(246,008)
Adjustments to reconcile income before income taxes
to net cash provided by operating activities:
Depreciation and amortization ．．．．．．．．．．．．．．．．
Amortization of past service costs ．．．．．．．．．．．．．．．
(473)
Gains on securities contributed to the employee
retirement benefit trust ．．．．．．．．．．．．．．．．．．．
—
—
Equity in earnings of affiliates ．．．．．．．．．．．．．．．．．
(260)
(821)
(3,098)
(24,984)
Gain on sale of securities ．．．．．．．．．．．．．．．．．．．
(1,779)
(6,053)
(13,609)
(109,750)
Other, net ．．．．．．．．．．．．．．．．．．．．．．．．．
2,481
7,591
13,957
112,557
(Increase) decrease in receivables．．．．．．．．．．．．．．
10,159
(3,886)
(22,710)
(183,145)
(Increase) decrease in inventories．．．．．．．．．．．．．．
2,606
(2,005)
(5,017)
(40,460)
Changes in current assets and liabilities—
Increase (decrease) in payables and accrued expenses ．．．．
(9,486)
10,854
7,737
62,395
Decrease in accrued income taxes ．．．．．．．．．．．．．
(47,561)
(28,015)
(31,792)
(256,387)
Other, net．．．．．．．．．．．．．．．．．．．．．．．．
(8,256)
Net cash provided by operating activities ．．．．．．．．．．
65,480
105,282
2,598
(2,455)
(19,798)
88,840
716,452
Expenditure for marketable securities．．．．．．．．．．．．．．
(62,926)
(51,557)
(9,079)
(73,218)
Proceeds from sale of marketable securities ．．．．．．．．．．．
53,069
61,488
39,434
318,016
Expenditures for property, plant and equipment ．．．．．．．．．
(110,558)
Cash Flows from Investing Activities:
(78,604)
(95,826)
(772,790)
Proceeds from sale of property, plant and equipment ．．．．．．
4,301
1,087
4,716
38,032
Expenditure for investment securities．．．．．．．．．．．．．．
(1,774)
(7,030)
(21,243)
(171,315)
Proceeds from sale of investment securities ．．．．．．．．．．．
1,019
6,472
17,390
140,242
Decrease in time deposits．．．．．．．．．．．．．．．．．．．
17,986
Other, net ．．．．．．．．．．．．．．．．．．．．．．．．．
(6,025)
(8,354)
(7,777)
(62,717)
Net cash used in investing activities ．．．．．．．．．．．．
(104,908)
(76,318)
(71,481)
(576,460)
Decrease of short-term borrowings ．．．．．．．．．．．．．．
(2,755)
(4,120)
(2,180)
(17,581)
Proceeds from long-term debt ．．．．．．．．．．．．．．．．
1,625
4,705
37,944
180
904
7,290
Cash Flows from Financing Activities:
Payments on long-term debt ．．．．．．．．．．．．．．．．．
(785)
815
(742)
(876)
(7,065)
Proceeds from issuance of common stock of
6,317
50,944
Cash dividends paid ．．．．．．．．．．．．．．．．．．．．．
(10,841)
(10,491)
(11,540)
(93,065)
Cash dividends paid to minority stockholders of subsidiaries．．．．
(787)
(949)
(1,016)
(8,194)
Other, net ．．．．．．．．．．．．．．．．．．．．．．．．．
200
(30)
(46)
(370)
(4,636)
(37,387)
consolidated subsidiaries to minority interests ．．．．．．．．．
—
—
Net cash used in financing activities ．．．．．．．．．．．．
(13,343)
(15,517)
Effect of Exchange Rate Changes on Cash and Cash Equivalents ．．
(259)
(611)
119
960
Net Change in Cash and Cash Equivalents ．．．．．．．．．．
(53,030)
12,836
12,842
103,565
Cash and Cash Equivalents at Beginning of Year ．．．．．．．
167,251
114,221
127,057
1,024,653
Cash and Cash Equivalents at End of Year ．．．．．．．．．．
¥114,221
¥127,057
¥139,899
$1,128,218
38
AR 01.10.24 6:24 PM ページ 39
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
1. Significant Accounting and Reporting
Policies
In the elimination of investments in subsidiaries, the assets
and liabilities of the subsidiaries, including the portion attributable
to minority shareholders, are evaluated using the fair value at the
time the Company acquired control of the respective subsidiaries.
Material intercompany balances, transactions and profits
have been eliminated in consolidation.
Also, under the Revised Accounting Principles, certain companies of which the Company has at least 15% and less than 20%
of the voting rights in the cases where the Company has the ability
to exercise significant influence over operating and financial policies
of the investees are also accounted for using the equity method.
Previously, only majority-owned companies were consolidated,
however, the effect of the change was not material.
The following is a summary of the significant accounting and
reporting policies adopted by Toppan Printing Co., Ltd.
(the “Company”) and its consolidated subsidiaries in the
preparation of the consolidated financial statements.
Basis of Presenting Consolidated Financial Statements
The Company and its consolidated domestic subsidiaries
maintain their accounts and records in accordance with the
provisions set forth in the Japanese Commercial Code and the
Securities and Exchange Law and in conformity with accounting principles and practices generally accepted in Japan
(“Japanese GAAP”), which are different from the accounting
and disclosure requirements of International Accounting
Standards. The accounts of overseas consolidated subsidiaries
are based on their accounting records maintained in conformity
with generally accepted accounting principles and practices
prevailing in the respective countries of domicile.
The accompanying consolidated financial statements are a
translation of the audited consolidated financial statements of
the Company which were prepared in accordance with Japanese
GAAP and were filed with the appropriate Local Finance Bureau
of the Ministry of Finance as required by the Securities and
Exchange Law.
In preparing the accompanying consolidated financial
statements, certain reclassifications have been made in the
consolidated financial statements issued domestically in order
to present them in a form which is more familiar to readers
outside Japan. The consolidated statements of cash flows for
1999 and shareholders’ investment for 1999, 2000 and 2001
have been prepared for the purpose of inclusion in the accompanying consolidated financial statements, although such
statements were not required for domestic purposes and were
not filed with the regulatory authorities.
The translations of the Japanese yen amounts into U.S. dollars
are included solely for the convenience of the readers, using the
prevailing exchange rate at March 31, 2001, which was ¥124 to
U.S.$1.00. The convenient translations should not be construed
as representations that the Japanese yen amounts have been,
could have been, or could in the future be, converted into U.S.
dollars at this or any other rate of exchange.
Inventories
Inventories are stated at cost, being determined primarily by
the following methods:
Merchandise
Finished goods
and work in process
Raw materials
First in, first out method
Average as determined by
the retail method
Average method
Depreciation
Depreciation of buildings, excluding building fixtures, is provided
under the straight-line method, and depreciation of other
plant and equipment is provided under the declining-balance
method over estimated useful lives. Effective rates of depreciation for the years ended March 31, 1999, 2000 and 2001, are
summarized below.
1999
Buildings and structures ．．． 6.9%
Machinery and equipment ．． 26.5%
2000
6.7%
27.4%
2001
6.8%
26.4%
The rates of depreciation are based on useful lives of
8 to 50 years for buildings and structures, and 2 to 15 years for
machinery and equipment.
Ordinary maintenance and repairs are charged to income as
incurred. Major replacements and improvements are capitalized.
Effective April 1, 1998, the Company changed its method
of recording depreciation of buildings, excluding building
fixtures, from the declining-balance method to the straight-line
method in order to match depreciation expense with revenue
more properly. The effect of this change was to decrease
depreciation expense by ¥3,331 million ($26,863 thousand),
and increase operating income and income before income
taxes by ¥2,651 million ($21,379 thousand) and ¥3,233 million
($26,073 thousand), respectively. The effect of this change on
the business segments is described in Note 12.
Also, effective April 1, 1998, in accordance with revisions of
the Corporation Tax Law, the Company shortened the estimated
useful lives of buildings, excluding building fixtures. The effect
of this change was to increase depreciation expense by ¥860
million ($6,935 thousand), and decrease operating income and
income before income taxes by ¥705 million ($5,685 thousand)
and ¥836 million ($6,742 thousand), respectively. The effect of
this change on the business segments is described in Note 12.
Principles of Consolidation
The Company prepared the consolidated financial statements
for the year ended March 31, 2000 and 2001 in accordance
with the revised Accounting Principles for Consolidated
Financial Statements (the “Revised Accounting Principles”).
The consolidated financial statements for 2000 and 2001 include
the accounts of the Company and all companies which are
controlled by the Company through substantial ownership
of more than 50% of the voting rights or through ownership
of a high percentage of the voting rights and the existence of
certain conditions evidencing control by the Company of the
decision-making body of such companies.
39
AR 01.10.24 6:24 PM ページ 40
securities is not readily available, such securities should be
written down to net asset value with a corresponding charge
in the income statement in the event net asset value declines
significantly. In these cases, such fair market value or the net
asset value will be the carrying amount of the securities at the
beginning of the next year.
Also, the new accounting standard for financial instruments,
effective from the year ended March 31, 2001, requires companies to state derivative financial instruments at fair value and
to recognize changes in the fair value as gains or losses unless
derivative financial instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and
meet certain hedging criteria, the Companies defer recognition of gains or losses resulting from changes in fair value of
derivative financial instruments until the related losses or gains
on the hedged items are recognized.
However, if interest rate swap contracts are used as hedges
and meet certain hedging criteria, the net amount to be paid
or received under the interest rate swap contract is added to
or deducted from the interest on the assets or liabilities for
which the swap contract was executed.
As a result of adopting the new accounting standard for
financial instruments, income before income taxes decreased
by ¥1,756 million ($14,161 thousand). Also, based on the
examination of the intent of holding each security upon
application of the new accounting standard on April 1, 2000,
held-to-maturity debt securities and available-for-sale securities
maturing within one year from the balance sheet date are
included in current assets, and other securities are included in
investments and other assets. As a result, at the beginning of
this fiscal year, securities in current assets decreased by ¥26,321
million ($212,266 thousand) and investment securities increased
by the same amount compared with what would have been
reported under the previous accounting policy.
The effect of this change on the business segments is
described in Note 12.
Software Costs
In accordance with the provisional rule of the JICPA’s Accounting
Committee Report No.12 “Practical Guidance for Accounting
for Research and Development Costs, etc.”, the Company
accounts for software in the same manner in 2000 and 2001 as
in 1999. The software costs are recorded in long-term loans
receivable from employees and other and amortized by the
straight-line method over estimated useful life of 5 years.
Securities, Derivatives and Hedge Accounting
Prior to April 1, 2000, listed securities were primarily stated at
lower of cost or market, cost being determined by the moving
average method. Other securities were primarily stated at
moving average cost.
Effective April 1, 2000, the Company and its consolidated
subsidiaries (the “Companies”) adopted the new Japanese
accounting standard for financial instruments (“Opinion
Concerning Establishment of Accounting Standard for Financial
Instruments” issued by the Business Accounting Deliberation
Council on January 22, 1999).
Upon applying the new accounting standard, all companies
are required to examine the intent of holding each security
and classify those securities as (a) securities held for trading
purposes (hereafter “trading securities”), (b) debt securities
intended to be held to maturity (hereafter “held-to-maturity
debt securities”), (c) equity securities issued by subsidiaries and
affiliated companies and (d) for all other securities that are not
classified in any of the above categories (hereafter “availablefor-sale securities”).
Held-to-maturity debt securities are stated at amortized
cost. Available-for-sale securities with available fair market
values are stated at fair market value. Unrealized gains and
unrealized losses on these securities are reported, net of applicable income taxes, as a separate component of shareholders’
investment. Realized gains and losses on sale of such securities
are computed using moving-average cost.
An explanation of the evaluation method of trading
securities was omitted since the Company does not own trading securities for 2001. Also, the explanation regarding equity
securities issued by subsidiaries and affiliated companies was
omitted, since investments in all subsidiaries were eliminated in
preparing the consolidated financial statements, and the
investments in all affiliated companies were evaluated using
the equity method.
Debt securities with no available fair market value are stated
at amortized cost, net of the amount considered not collectible.
Other securities with no available fair market value are stated
at moving-average cost.
If the market value of held-to-maturity debt securities and
available-for-sale securities declines significantly, such securities
are stated at fair market value and the difference between fair
market value and the carrying amount is recognized as loss in
the period of the decline. If the fair market value of equity
Allowance for Doubtful Receivables
Pursuant to the change in the Corporation Tax Law effective
in the year ended March 31, 1999, the Company adopted the
policy of providing the allowance for doubtful receivables in
an amount sufficient to cover possible losses on collection by
estimating individually uncollectible amounts and applying
a percentage based on collection experience to the remaining
accounts. The Company previously provided the allowance
using the formula provided by the Corporation Tax Law.
The effect of this change was to decrease selling, general
and administrative expenses and other expenses by ¥462 million
($3,726 thousand) and ¥46 million ($371 thousand), respectively, and to increase operating income and income before income
taxes by ¥462 million ($3,726 thousand) and ¥2,004 million
($16,161 thousand), respectively. The effect of this change on
the business segments is described in Note 12.
40
AR 01.10.24 6:24 PM ページ 41
At March 31, 2000, the Companies accrued liabilities for
lump-sum severance and retirement payments equal to 50%
of the amount required had all eligible employees voluntarily
terminated their employment at the balance sheet date. The
Companies recognized pension expense when, and to the
extent, payments were made to the pension plans.
Effective April 1, 2000, the Companies adopted the new
accounting standard “Opinion on Setting Accounting Standard
for Employees’ Severance and Pension Benefits”, issued by the
Business Accounting Deliberation Council on June 16, 1998
(the “New Accounting Standard”).
Under the New Accounting Standard, the liabilities and
expenses for severance and retirement benefits are determined
based on the amounts actuarially calculated using certain
assumptions.
The Companies provided allowance for employees’ severance and retirement benefits at March 31, 2001 based on the
estimated amounts of projected benefit obligation and the fair
value of the plan assets at that date.
The excess of the projected benefit obligation over the
total of the fair value of pension assets as of April 1, 2000 and
the liabilities for severance and retirement benefits recorded as
of April 1, 2000 (the “net transition obligation”) amounted to
¥76,104 million ($613,742 thousand), which was redeemed in
one lump sum. Prior service costs are recognized in expenses
in equal amounts within the average of the estimated remaining service lives of the employees (primarily 5 years). Actuarial
gains and losses are recognized in expenses using the straightline method within the average of the estimated remaining
service lives of employees (primarily 15 years), commencing
with the following period.
As a result of the adoption of the new accounting standard,
in the year ended March 31, 2001, severance and retirement
benefit expenses increased by ¥82,021 million ($661,460
thousand), operating income decreased by ¥5,755 million
($46,411 thousand) and income before income taxes decreased
by ¥81,859 million ($660,153 thousand) compared with what
would have been recorded under the previous accounting
standard.
In September 2000, the Company contributed, receiving no
cash, certain investment securities to its employee retirement
benefit trust. The market value of the contributed securities at
the time of contribution was ¥37,399 million ($301,605
thousand). Upon contribution of these securities, a “gain on
securities contributed to employee retirement benefit trust”
amounting to ¥30,505 million ($246,008 thousand) was
recognized. As a result, income before income taxes decreased
by ¥51,534 million ($415,597 thousand).
Effective April 1, 2000, the Companies adopted the new
Japanese accounting standard for financial instruments
(“Opinion Concerning Establishment of Accounting Standard
for Financial Instruments” issued by the Business Accounting
Deliberation Council on January 22, 1999).
Upon applying the new accounting standard, all companies
are required to classify receivables into the following three
categories and make provision for possible losses.
For receivables to insolvent customers who are undergoing
bankruptcy or other collection proceedings or in a similar financial
condition, the allowance for doubtful receivables is provided in
the full amount of such receivables, excluding the portion that is
estimated to be recoverable due to the existence of collaterals or
guarantees.
For the unsecured portion of receivables to customers not
presently in the above circumstances, but for which there is a
high probability of so becoming, the allowance for doubtful
receivables is provided for individually estimated uncollectible
amounts, primarily determined after an evaluation of collaterals,
guarantees and the customer’s overall financial condition.
For other receivables, the allowance for doubtful receivables
is provided based on the Company’s actual rate of receivable
losses in the past.
The effect on the consolidated income statement of adopting the new accounting standards was immaterial.
Income Taxes
The provision for income taxes is computed based on the
pretax income included in the consolidated statements of
income. The asset and liability approach is used to recognize
deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes.
Effective April 1, 1998, the Company adopted the new
accounting standard issued in October 1998, which requires
more accurate calculation regarding the recognition of the tax
effects attributable to temporary differences. As a result of this
change, total assets increased by ¥938 million ($7,565 thousand),
net income decreased by ¥62 million ($500 thousand) and the
ending balance of retained earnings increased by ¥938 million
($7,565 thousand).
Employees’ Severance and Retirement Benefits
The Companies provide two types of post-employment benefit
plans, unfunded lump-sum payment plans and funded noncontributory pension plans, under which all eligible employees
are entitled to benefits based on the level of wages and salaries
at the time of retirement or termination, length of service and
certain other factors. The pension plans cover 30% of total
severance and retirement benefits.
41
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Foreign Currency Translation
Consolidated Statements of Cash Flows
Foreign currency transactions are translated into Japanese yen
using the exchange rates in effect at the time of the transactions
or at the applicable exchange rates under forward exchange
contracts. Prior to April 1, 2000, current assets and liabilities
denominated in foreign currencies were translated at the exchange
rates prevailing at the end of each fiscal year, except that forward
exchange contract rates were used where applicable and the
resulting gains and losses were included in current income.
Non-current assets and liabilities denominated in foreign currencies
were translated at the exchange rates in effect at the time of the
transactions, except that forward exchange contract rates were
used where applicable.
Effective April 1, 2000, the Company and its consolidated
subsidiaries adopted the revised accounting standard for
foreign currency translation, “Opinion Concerning Revision of
Accounting Standard for Foreign Currency Translation”, issued
by the Business Accounting Deliberation Council on October
22, 1999 (the “Revised Accounting Standard”). Under the Revised
Accounting Standard, all short-term and long-term monetary
receivables and payables denominated in foreign currencies are
also translated into Japanese yen at the year-end rate.
The effect on the consolidated income statement of adopting the Revised Accounting Standard was immaterial.
Financial statements of consolidated overseas subsidiaries
are translated into Japanese yen at the year-end rate, except
that shareholders’ investment accounts are translated at
historical rates and income statement items resulting from
transactions with the Company at the rates used by the Company.
Due to the adoption of the Revised Accounting Standard,
the Company and its domestic subsidiaries report foreign
currency translation adjustments in shareholders’ investment
and minority interests. The prior year’s amount, which is
included in assets, has not been reclassified.
In preparing the consolidated statements of cash flows, cash on
hand, readily-available deposits and short-term highly liquid
investments with maturities not exceeding three months at the
time of purchase are considered to be cash and cash equivalents.
In accordance with the “Standards for Preparation of
Consolidated Cash Flow Statements, etc.” (the “New
Standards”), effective from the year ended March 31, 2000,
the Company is required to prepare consolidated cash flow
statements. The consolidated cash flow statement in 1999,
which was prepared for readers outside Japan although such
statement was not required, has been restated to conform to
the 2000 and 2001 presentation.
Reclassifications
Certain reclassifications have been made to previously reported
1999 and 2000 amounts to conform to the 2001 presentation.
These reclassifications had no effect on previously reported net
income or total shareholders’ investment.
2. Change of Accounting Policy
Transportation Costs
In past fiscal years, due to the difficulty of determining the
exact amount of transportation costs incurred by the distribution subsidiary attributable to the Company’s product delivery,
total transportation costs incurred by the subsidiary had been
included in cost of sales. However, effective April 1, 2000, it
was possible to distinguish transportation costs attributable to
the Company’s product delivery from total delivery cost, and
the Company changed its accounting treatment so that
transportation costs attributable to the Company’s product
delivery could be included in selling, general and administrative
expenses. As a result, gross profit in this fiscal year increased by
¥18,531 million ($149,444 thousand).
Research and Development
Expenses relating to research and development activities are
charged to income as incurred. Research and development
expenses include practical-application research expenses of the
Technical Development Departments. In addition, other research
expenses are incurred by the Toppan Technical Research Institute.
The amounts for the years ended March 31, 1999, 2000
and 2001, were as follows:
Millions of yen
1999．．．．．．．．．．．¥18,875
2000．．．．．．．．．．． 18,369
2001．．．．．．．．．．． 18,850
$152,218
148,137
152,016
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AR 01.10.24 6:24 PM ページ 43
3. Marketable and Investment Securities
Marketable securities and investment securities as of March 31, 2000 were comprised as follows:
Millions of yen
Marketable securities—
Marketable equity securities ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥ 4,406
$ 35,532
Interest-bearing bonds and other ．．．．．．．．．．．．．．．．．．．．．．．．．
56,853
458,492
¥61,259
$494,024
Marketable equity securities ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥51,803
$417,766
Non-marketable equity securities ．．．．．．．．．．．．．．．．．．．．．．．．．
6,213
50,105
Investment securities—
Interest-bearing bonds and other ．．．．．．．．．．．．．．．．．．．．．．．．．
850
6,855
¥58,866
$474,726
Interest-bearing bonds represent primarily those issued by the government, government-sponsored agencies and banks.
The unrealized gains applicable to current and non-current marketable equity securities as of March 31, 2000 were as follows:
Millions of yen
Current ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥15,007
$121,024
Non-current ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
79,651
642,347
The following tables summarize acquisition costs, book values and fair values of securities with available fair values as of
March 31, 2001:
(a) Held-to-maturity debt securities
Securities with available fair values exceeding book values
Millions of yen
Book value ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥11,993
$96,718
Fair value ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
12,001
96,783
Difference ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
8
65
Securities with available fair values below book values
Millions of yen
Book value ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥5,892
$47,516
Fair value ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
5,865
47,298
Difference ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
43
(27)
(218)
AR 01.10.24 6:24 PM ページ 44
(b) Available-for-sale securities
Securities with book values exceeding acquisition costs
Millions of yen
Type
Acquisition cost
Book value
Difference
Equity securities ．．．．．．．．．．．．．．．．．．．．．．．．
¥43,541
¥72,079
¥28,538
Bonds ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
2,434
2,491
57
Others ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
5,268
5,319
51
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥51,243
¥79,889
¥28,646
Type
Acquisition cost
Book value
$351,137
$581,282
Difference
$230,145
Bonds ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
19,629
20,089
460
Others ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
42,484
42,895
411
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
$413,250
$644,266
$231,016
Securities with book values below acquisition costs
Millions of yen
Type
Acquisition cost
Book value
Difference
¥16,307
¥13,664
Bonds ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
3,104
3,084
(20)
Others ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
2,628
2,036
(592)
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥22,039
¥18,784
¥(3,256)
¥(2,644)
Type
Acquisition cost
Book value
$131,508
$110,193
Difference
$(21,323)
Bonds ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
25,032
24,871
(161)
Others ．．．．．．．．．．．．．．．．．．．．．．．．．．．．
21,194
16,420
(4,774)
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
$177,734
$151,484
$(26,258)
The following tables summarize book values of securities with no available fair values as of March 31, 2001:
Millions of yen
Available-for-sale securities—
Non-listed equity securities．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥9,059
$73,056
1,613
Non-listed foreign securities ．．．．．．．．．．．．．．．．．．．．．．．．．．．
200
Non-listed domestic securities ．．．．．．．．．．．．．．．．．．．．．．．．．．
10
81
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥9,269
$74,750
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Planned redemption schedule of available-for-sale securities with maturities and held-to-maturity debt securities is as follows:
Millions of yen
Within one year
Over one year but
within five years
Over five years but
within ten years
Over ten years
Total
¥19,285
4,998
¥4,184
—
¥200
—
—
—
¥23,669
4,998
Total ．．．．．．．．．．．．．．．．．．．．．． ¥24,283
¥4,184
¥200
—
¥28,667
Over ten years
Total
Bonds—
Corporate bonds ．．．．．．．．．．．．．．．．．
Others ．．．．．．．．．．．．．．．．．．．．．．．
Within one year
Over one year but
within five years
Over five years but
within ten years
Bonds—
Corporate bonds ．．．．．．．．．．．．．．．．． $155,524
Others ．．．．．．．．．．．．．．．．．．．．．．．
40,306
$33,742
—
$1,613
—
—
—
$190,879
40,306
Total ．．．．．．．．．．．．．．．．．．．．．． $195,830
$33,742
$1,613
—
$231,185
Total sales of available-for-sale securities in the year ended March 31, 2001 amounted to ¥16,061 million ($129,524 thousand) and
the related gains and losses amounted to ¥13,788 million ($111,194 thousand) and ¥178 million ($1,435 thousand), respectively.
4. Investments in and Advances to Affiliates
(a) Combined unaudited financial information of affiliates as at each balance sheet date and for each of the years presented was as
follows:
Millions of yen
2000
2001
2001
Financial Position:
Assets—
Current assets ．．．．．．．．．．．．．．．．．．．．．．．
¥197,018
¥166,886
$1,345,855
Investments and other assets ．．．．．．．．．．．．．．．．．
173,528
186,285
1,502,298
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥370,546
¥353,171
$2,848,153
¥132,063
¥107,362
$ 865,823
Liabilities—
Current liabilities ．．．．．．．．．．．．．．．．．．．．．．
Long-term liabilities ．．．．．．．．．．．．．．．．．．．．．
73,865
79,006
637,145
Shareholders’ investment ．．．．．．．．．．．．．．．．．．
164,618
166,803
1,345,185
Total ．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥370,546
¥353,171
$2,848,153
Millions of yen
Operations:
Net sales．．．．．．．．．．．．．．．．．．．．．．．．
Costs and expenses ．．．．．．．．．．．．．．．．．．．
Net income
1999
2000
2001
2001
¥313,635
312,114
¥ 1,521
¥299,688
296,513
¥ 3,175
¥295,050
288,170
¥ 6,880
$2,379,435
2,323,951
$ 55,484
(b) Summarized below are significant transactions with affiliates for the years ended March 31, 1999, 2000 and 2001:
Millions of yen
Sales ．．．．．．．．．．．．．．．．．．．．．．．．．
Cost of sales—
Purchases of materials ．．．．．．．．．．．．．．．．
Subcontractors’ fees and others ．．．．．．．．．．．．
Interest and dividend income．．．．．．．．．．．．．．．
Rental income ．．．．．．．．．．．．．．．．．．．．．
1999
¥ 3,978
2000
¥ 3,616
2001
¥ 3,095
2001
$ 24,960
26,766
8,088
702
1,034
26,977
7,879
487
888
24,854
7,594
552
860
200,435
61,242
4,452
6,935
45
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5. Long-Term Indebtedness
Long-term indebtedness as at March 31, 2000 and 2001, is detailed in the table below:
Conversion/subscription price
Yen per share
Unsecured convertible bonds—
1.9%, due 2001 ．．．．．．．．．．．．．．．．．．． ¥1,645.10
1.4%, due 2005 ．．．．．．．．．．．．．．．．．．． 2,235.20
Unsecured bonds—
—
2.7%, due 2007 ．．．．．．．．．．．．．．．．．．．
Secured bonds—
—
2.5%, due 2004 ．．．．．．．．．．．．．．．．．．．
2.2%, due 2003 ．．．．．．．．．．．．．．．．．．．
—
1.8%, due 2005 ．．．．．．．．．．．．．．．．．．．
—
Unsecured loans—
—
Japanese banks, 1.6–5.8%, due 2002 through 2005 ．．．
Foreign banks, 2.1–7.6%, due 2002 through 2009．．．．
—
Mortgage loans—
Japanese banks, 2.6–2.7%, due 2002 through 2012 ．．．
—
Total long-term indebtedness ．．．．．．．．．．．．
Less: Current portion included in current liabilities．．．．．．
Net long-term indebtedness．．．．．．．．．．．．．
Millions of yen
2000
2001
2001
¥ 24,933
34,950
¥ 24,933
34,950
$ 201,073
281,855
50,000
50,000
403,226
500
300
200
500
300
200
4,032
2,419
1,613
3,231
608
1,452
3,797
11,710
30,621
1,851
116,573
(894)
¥115,679
1,316
117,448
(26,656)
¥ 90,792
10,613
947,162
(214,968)
$ 732,194
If all outstanding convertible bonds had been converted into
common stock as at March 31, 2001, approximately 30,792
thousand shares of common stock would have been issued.
As is customary in Japan, short-term and long-term bank
loans are made under general agreements which provide that
additional security and guarantees for present and future
indebtedness will be given upon request of the bank under
certain circumstances, and that any collateral so furnished will
be applicable to all indebtedness to that bank. To date, the
Company and its consolidated subsidiaries have not received
any such requests from the banks. In addition, the agreements
provide that the bank has the right to offset cash deposits
against any short-term or long-term debt that becomes due,
and in case of default and certain other specified events,
against all other debt payable to the bank.
As at March 31, 2001, property, plant and equipment with
a net book value of ¥4,902 million ($39,532 thousand) was
pledged as collateral for long-term indebtedness.
The convertible bonds are convertible into common stock at
the option of the holders, currently at applicable conversion prices
per share as listed in the preceding table. These conversion prices
are subject to adjustment for subsequent stock splits of common
stock and shares issued at less than market value. The outstanding
convertible bonds are redeemable at the option of the Company
at a price of 100% of the principal amount under certain conditions as provided in the respective agreements.
The unsecured convertible bonds are subject to certain
covenants such as restrictions on dividends, earnings and certain
additional secured indebtedness, as defined in the agreements.
The Company presently satisfies all required covenants.
The aggregate annual maturities of long-term loans subsequent to March 31, 2001 are as follows:
Fiscal year ending March 31
Millions of yen
2003 ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
¥1,552
$12,516
2004 ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
952
7,677
2005 ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
744
6,000
2006 ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
247
1,992
2007 and thereafter ．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．．
1,347
10,863
46
AR 01.10.24 6:24 PM ページ 47
6. Income Taxes
7. Employees’ Severance and Pension Benefits
The Company and its subsidiaries are subject to several taxes
(corporate, inhabitant and enterprise) based on income. The
aggregate statutory tax rates and the effective tax rates for the
years ended March 31, 1999, 2000 and 2001, are as follows:
As explained in Note 1, Significant Accounting and Reporting
Policies, effective April 1, 2000, the Companies adopted the
new accounting standard for employees’ severance and retirement benefits, under which the liabilities and expenses for
severance and retirement benefits are determined based on
the amounts obtained by actuarial calculations.
The liabilities for severance and retirement benefits included
in the liability section of the consolidated balance sheet as of
March 31, 2001 consists of the following:
Statutory tax rate
Effective tax rate
1999
47%
49%
2000
42%
45%
2001
42%
45%
Variance between the statutory tax rates and effective tax rates
consists primarily of the effect of permanently non-deductible
expenses and non-taxable income.
Significant components of the Company’s deferred tax assets
and liabilities as of March 31, 2000 and 2001, are as follows:
Millions of yen
2000
Projected benefit obligation ．．．¥ 255,765 $ 2,062,621
Unrecognized prior
service costs ．．．．．．．．．．
11,066
89,242
Less: Unrecognized actuarial
differences．．．．．．．．．．． (40,654)
(327,855)
Less: Fair value of pension assets ．．． (166,324) (1,341,323)
2001
(Deferred tax assets)
Bad debt reserve ．．．．．．¥ 1,366 ¥ 1,621
Accrued bonuses ．．．．．． 2,456
3,272
Enterprise taxes ．．．．．．． 1,654
1,931
Depreciation ．．．．．．．． 2,009
1,950
Employees’ severance and
retirement benefits ．．．． 4,586
23,316
Intercompany profits．．．．． 2,143
2,167
Net operating loss carry forwards． 3,429
3,314
Other ．．．．．．．．．．． 2,566
3,671
20,209
41,242
Less: Valuation allowance．．． (3,429) (3,314)
Total．．．．．．．．．．．． 16,780
37,928
2001
Liability for severance and
retirement benefits ．．．．．．． ¥ 59,853
$ 13,073
26,387
15,573
15,726
¥165
108
¥273
¥ —
342
¥342
188,032
17,476
26,726
29,604
332,597
(26,726)
305,871
Millions of yen
Service costs—benefits earned
during the year ．．．．．．．． ¥ 11,350
Interest cost on projected
benefit obligation ．．．．．．．
8,245
Expected return on plan assets．．．
(5,128)
Amortization of net transition
obligation ．．．．．．．．．．．
76,104
Amortization of prior service
costs ．．．．．．．．．．．．．
(1,230)
Severance and retirement benefit
expenses ．．．．．．．．．．． ¥ 89,341
2000
482,685
Thousands
of dollars
$ 91,532
66,492
(41,355)
613,742
(9,919)
$ 720,492
The discount rate and the rate of expected return on plan
assets used by the Company are mainly 3% and 3.5%, respectively. The estimated amount of all retirement benefits to be
paid at the future retirement date is allocated equally to each
service year using the estimated number of total service years.
Past service costs are recognized as an expense in equal amounts
mainly over 5 years, and actuarial gains/losses are recognized
in the consolidated income statement using the straight-line
method mainly over 15 years.
$
—
2,758
$2,758
The valuation allowance mainly relates to deferred tax
assets of the consolidated subsidiaries with operating loss carry
forwards for tax purposes that are not expected to be realized.
Also, the following table summarizes the significant differences between the statutory tax rate and the Company’s effective tax rate for financial statement purposes for the years
ended March 31, 2000 and 2001, respectively:
Statutory tax rate ．．．．．．．．．．．． 41.7%
Non-Japanese taxes ．．．．．．．．．． (0.4)
Non-taxable dividend income ．．．．． (2.0)
Non-deductible expenses ．．．．．．．
2.0
Per capita inhabitant tax．．．．．．．．
0.5
Consolidation adjustment of dividend ．．
1.6
Other ．．．．．．．．．．．．．．．．
1.6
Effective tax rate ．．．．．．．．．．．． 45.0%
$
Included in the consolidated statement of income for the
year ended March 31, 2001 are severance and retirement benefit
expenses comprised of the following:
(Deferred tax liabilities)
Tax purpose reserves regulated
4,608
37,161
by Japanese tax law．．．．． 3,544
Net unrealized gains on
securities ．．．．．．．．．
—
10,626
85,694
Other ．．．．．．．．．．．
185
355
2,863
Total．．．．．．．．．．．． 3,729
15,589 125,718
Deferred tax assets, net ．．．¥13,051 ¥22,339 $180,153
(Fixed liabilities)
Deferred tax liabilities
Depreciation ．．．．．．．．
Other ．．．．．．．．．．．
Total deferred tax liabilities ．．
Thousands
of dollars
Millions of yen
2001
41.7%
(0.7)
(3.6)
3.7
0.9
2.5
0.2
44.7%
47
AR 01.10.24 6:24 PM ページ 48
8. Shareholders’ Investment
Year-end dividends are approved by the shareholders after the
end of each fiscal year, and interim dividends are declared by the
Board of Directors after the end of each semi-annual period. In
accordance with the Commercial Code, the year-end dividends and
the related appropriation of retained earnings are not reflected in the
consolidated financial statements at the end of each fiscal year.
The maximum amount that the Company can distribute as
dividends is calculated based on the unconsolidated financial
statements of the Company in accordance with the Commercial
Code of Japan.
On June 28, 2001, the shareholders approved the declaration of
a year-end cash dividend totaling ¥5,595 million ($45,121
thousand), which was paid in that month to the shareholders of
record as at March 31, 2001, and the related appropriation of
profits to legal reserve of ¥573 million ($4,621 thousand).
The Japanese Commerical Code provides that an amount equivalent
to at least 10% of cash dividends paid and of other cash outlays in
each fiscal or interim six-month period be appropriated to a legal
reserve until such reserve equals 25% of the issued share capital.
In accordance with the new disclosure requirements
effective from the year ended March 31, 1999, legal reserve of
¥14,709 million ($118,621 thousand) is included in retained
earnings for 1999. Previously, it was presented as a separate
component of shareholders’ investment. The accompanying
consolidated financial statements for the years ended March 31,
1999 have been reclassified to conform to the 2000 and 2001
presentation.
The Code also provides that neither the additional paid-in
capital nor the legal reserve is available for cash dividends, but may
be used to reduce a capital deficit by resolution of the shareholders
or may be capitalized by resolution of the Board of Directors.
9. Per Share Data
accrual basis but include dividends approved after each fiscal
year-end and are applicable to the year then ended.
The number of shares of common stock outstanding used
in computing net income per share was as follows:
Net income per share is based on the weighted average number
of shares of common stock outstanding and dilutive common
stock equivalents. The convertible bonds were considered as
common stock equivalents and were included in the calculation of
earnings per share when they were dilutive. In computing net
income per share, net income is adjusted, at net of income taxes,
by interest expense on the convertible bonds.
Dividends per share shown in the accompanying consolidated statements of income have been presented on an
10. Derivative Financial Instruments
and Hedging Transactions
The Company and several subsidiaries (the “Companies”) use
derivative financial instruments selectively to manage interest
rate risk and foreign exchange risk.
The Companies enter into forward foreign exchange
contracts and currency swap contracts to reduce foreign
exchange risks and use interest rate swaps and interest rate
caps to manage floating interest rate risk. Also, the Companies
use bonds with derivative financial instruments.
To reduce the credit risk of counterparties in derivative
transactions, the Companies select major, creditworthy financial
institutions as counterparties.
The derivative transactions are executed and managed by
the Company’s Finance Department in accordance with the
established policies and within the specified limits on the
amounts of derivative transactions allowed. The Director in
charge of the Finance Department reports information on derivative transactions to the Board of Directors on a monthly basis.
Thousands of shares
1999．．．．．．．．．．．．．．．．．
2000．．．．．．．．．．．．．．．．．
2001．．．．．．．．．．．．．．．．．
730,195
730,197
730,198
The following summarizes hedging derivative financial
instruments used by the Companies and items hedged:
Hedging instruments:
Hedged items:
Forward foreign exchange Foreign currency trade receivables
contracts
and trade payables (including
future trading)
Currency swap contracts
Foreign currency bonds
Interest rate swap contracts Interest on foreign currency bonds
and loans payable
Interest rate cap contracts Loans payable
The Companies evaluate hedge effectiveness semi-annually
by comparing the cumulative changes in cash flows from or
the changes in fair value of hedged items and the corresponding changes in the hedging derivative instruments.
The following tables summarize market value information
as of March 31, 2000 and 2001, of derivative transactions for
which hedge accounting has not been applied:
48
AR 01.10.24 6:24 PM ページ 49
Currency Related
2000
Items not traded on exchanges
Millions of yen
Contracted amount
Type
Forward foreign exchange contracts—
Sell: Swedish krone ．．．．．．．．．．．．．．．．．．
Buy: U.S. dollars ．．．．．．．．．．．．．．．．．．．
Total ．．．．．．．．．．．．．．．．．．．．．．．
¥14
46
¥60
2001
Market value
¥—
—
¥—
¥14
46
¥60
Unrealized gains
(losses)
¥0
0
¥0
Millions of yen
Contracted amount
Type
Sell: U.S. dollars ．．．．．．．．．．．．．．．．．．．
Buy: U.S. dollars ．．．．．．．．．．．．．．．．．．．
Total ．．．．．．．．．．．．．．．．．．．．．．．
Over one year
¥3,062
245
¥3,307
2001
Type
Sell: U.S. dollars ．．．．．．．．．．．．．．．．．．．
Buy: U.S. dollars ．．．．．．．．．．．．．．．．．．．
Total ．．．．．．．．．．．．．．．．．．．．．．．
Over one year
¥—
—
¥—
Market value
¥2,864
266
¥3,130
Unrealized gains
(losses)
¥(198)
21
¥(177)
Thousands of U.S. dollars
Contracted amount
Over one year
$24,694
1,976
$26,670
Interest Related
2000
$—
—
$—
Market value
$23,097
2,145
$25,242
Unrealized gains
(losses)
$(1,597)
169
$(1,428)
Millions of yen
Contracted amount
Type
Over one year
Market value
Unrealized gains
(losses)
Interest rate swap—
Pay fixed, receive variable ．．．．．．．．．．．．．．．
¥197
¥ —
¥0
¥0
Interest rate cap—
Buy ．．．．．．．．．．．．．．．．．．．．．．．．．
150
150
1
1
Total ．．．．．．．．．．．．．．．．．．．．．．．
¥347
¥150
¥1
¥1
49
AR 01.10.24 6:24 PM ページ 50
11. Commitments and Contingent Liabilities
The Company and its subsidiaries were also contingently
liable as guarantors for the borrowings of certain affiliates,
subcontractors and employees, amounting to ¥888 million
($7,161 thousand) as at March 31, 2001.
The Company and its consolidated subsidiaries had cancellable
and non-cancellable long-term lease agreements, principally for
office space and computer equipment. Annual rental expenses for
the year ended March 31, 2001, were ¥21,368 million ($172,323
thousand).
Commitments outstanding as at March 31, 2001 for capital
expenditures approximated ¥28,051 million ($226,218 thousand).
As at March 31, 2001, certain subsidiaries were contingently liable
for trade notes receivable discounted with banks of ¥38 million
($306 thousand). The average interest rate of the notes discounted with banks was 6.8% per annum as at March 31, 2001.
Also, certain subsidiaries were contingently liable for trade
notes receivable endorsed of ¥11 million ($89 thousand).
12. Segment Information
As described in Note 1, effective April 1, 2000, the
Company and its consolidated subsidiaries adopted the new
accounting standard for employees’ severance and retirement
benefits (“Opinion on Setting Accounting Standard for
Employees’ Severance and Pension Benefits”). As a result, for the
year ended March 31, 2001, operating income of the
“printing” segment and “other” segment decreased by
¥5,370 million ($43,306 thousand) and ¥384 million ($3,097
thousand), respectively. Also, assets of the “printing” segment
and “other” segment increased by ¥30,825 million ($248,589
thousand) and ¥1,839 million ($14,831 thousand), respectively.
Companies adopted the new Japanese accounting standard for
financial instruments (“Opinion Concerning Establishment of
Accounting Standard for Financial Instruments”). As a result, for
the year ended March 31, 2001, assets of the “printing”
segment increased by ¥25,849 million ($208,460 thousand) and
the effect on the assets of the “other” segment was immaterial.
Companies adopted the revised accounting standard for
foreign currency translation. As a result, for the year ended
March 31, 2001, assets of the “printing” segment decreased
by ¥6,380 million ($51,452 thousand) and the effect on the
assets of the “other” segment was immaterial.
Geographical segment information was not presented as
the sales and assets of consolidated domestic subsidiaries for
the years ended March 31, 1999, 2000 and 2001, exceeded
90% of consolidated net sales and assets.
The overseas sales of the Company and its consolidated
subsidiaries for the years ended March 31, 1999, 2000 and
2001, were less than 10% of consolidated net sales.
The Company conducts various printing activities classified as the
“printing” segment and non-printing activities classified as the
“other” segment.
A summary of net sales, costs and expenses and operating
income by segment of business activities for the years ended March
31, 1999, 2000 and 2001, is shown on the next page.
As described in Note 1 (Depreciation), effective April 1, 1998,
the Company changed its depreciation method for buildings,
excluding building fixtures, from the declining-balance method to
the straight-line method. As a result of this change, operating
income and assets of the “printing” segment for the year ended
March 31, 1999, increased by ¥2,651 million ($21,379 thousand)
and ¥3,233 million ($26,073 thousand), respectively.
Also, as described in Note 1 (Depreciation), effective April
1, 1998, the Company shortened the estimated useful lives of
buildings, excluding building fixtures. As a result of this
change, operating income and assets of the “printing” segment
decreased by ¥701 million ($5,653 thousand) and ¥833 million
($6,718 thousand), respectively.
Also, as described in Note 1 (Allowance for doubtful
receivables), effective from the year ended March 31, 1999, the
Company changed the policy for providing the allowance for
doubtful receivables from using the formula provided by the
Corporation Tax Law to applying a percentage based on collection
experience to the remaining account. As a result of this change,
operating income and assets of the “printing” segment increased
by ¥434 million ($3,500 thousand) and ¥1,868 million
($15,065 thousand), respectively. Also, operating income and
assets of the “other” segment increased by ¥28 million ($226
thousand) and ¥136 million ($1,097 thousand), respectively.
50
AR 01.10.24 6:24 PM ページ 51
1999
Millions of yen
Printing
Net sales—
Outside customers ．．．．．
Intersegment ．．．．．．．
Total ．．．．．．．．．．
Costs and expenses ．．．．．
Operating income ．．．．．．
Assets ．．．．．．．．．．．
Capital expenditures ．．．．．
¥1,116,534
17,631
1,134,165
1,069,271
¥1,264,894
¥1,226,042
¥1,258,186
¥1,100,485
Other
¥106,905
47,278
154,183
153,860
¥
323
¥ 61,875
¥
293
¥
436
2000
¥1,129,755
18,139
1,147,894
1,084,815
¥1,263,079
¥1,264,114
¥1,261,633
¥1,180,484
Other
¥107,327
45,514
152,841
150,653
¥ 2,188
¥ 58,766
¥
365
¥
662
2001
¥1,182,205
18,392
1,200,597
1,134,997
¥ 65,600
¥1,330,336
¥ 64,039
¥ 97,959
Other
¥111,632
49,434
161,066
159,235
¥ 1,831
¥ 84,849
¥
422
¥ 1,092
2001
¥
¥
¥
¥
—
(64,909)
(64,909)
(64,909)
—
(20,560)
—
—
¥1,223,439
—
1,223,439
1,158,222
¥1,265,217
¥1,267,357
¥1,258,479
¥1,100,921
Total
¥1,237,082
63,653
1,300,735
1,235,468
¥ 1,265,267
¥1,322,880
¥ 1,261,998
¥1,181,146
Elimination
¥
¥
¥
¥
¥
—
(63,653)
(63,653)
(63,653)
—
(21,700)
—
—
Consolidated
¥1,237,082
—
1,237,082
1,171,815
¥1,265,267
¥1,301,180
¥1,261,998
¥1,181,146
Total
¥1,293,837
67,826
1,361,663
1,294,232
¥
67,431
¥1,415,185
¥
64,461
¥
99,051
Elimination
¥
¥
¥
¥
¥
—
(67,826)
(67,826)
(67,826)
—
(35,029)
—
—
Consolidated
¥1,293,837
—
1,293,837
1,226,406
¥ 67,431
¥1,380,156
¥ 64,461
¥ 99,051
Printing
Net sales—
Outside customers ．．．．
Intersegment ．．．．．．
Total ．．．．．．．．．
Operating income ．．．．．
Assets ．．．．．．．．．．．
Capital expenditures ．．．．
¥
Consolidated
Millions of yen
Printing
Net sales—
Total ．．．．．．．．．．
Assets ．．．．．．．．．．．
¥1,223,439
64,909
1,288,348
1,223,131
¥ 1,265,217
¥1,287,917
¥ 1,258,479
¥1,100,921
Elimination
Millions of yen
Printing
Net sales—
Total ．．．．．．．．．．
Assets ．．．．．．．．．．．
Total
$ 9,533,911
148,323
9,682,234
9,153,202
$ 529,032
$10,728,516
$ 516,444
$ 789,992
Other
$ 900,258
398,661
1,298,919
1,284,153
$ 14,766
$ 684,266
$
3,403
$
8,806
51
Total
$10,434,169
546,984
10,981,153
10,437,355
$ 543,798
$11,412,782
$ 519,847
$ 798,798
Elimination
$
—
(546,984)
(546,984)
(546,984)
$
—
$ (282,492)
$
—
$
—
Consolidated
$10,434,169
—
10,434,169
9,890,371
$
543,798
$ 11,130,290
$
519,847
$
798,798
AR 01.10.24 6:24 PM ページ 52
REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
To the Shareholders and the Board of Directors of
TOPPAN PRINTING CO., LTD.:
We have audited the accompanying consolidated balance sheets of TOPPAN PRINTING
CO., LTD. (a Japanese corporation) and subsidiaries as of March 31, 2000 and 2001, and the
related consolidated statements of income, shareholders’ investment and cash flows for each of
the three years in the period ended March 31, 2001, expressed in Japanese yen. Our audits
were made in accordance with generally accepted auditing standards in Japan and, accordingly, included such tests of the accounting records and such other auditing procedures as
we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the consolidated financial position of TOPPAN PRINTING CO., LTD. and subsidiaries as of March 31,
2000 and 2001, and the consolidated results of their operations and their cash flows for each
of the three years in the period ended March 31, 2001 in conformity with accounting principles generally accepted in Japan applied on a consistent basis during the periods,
except as noted in the following paragraph.
As explained in Note 1, in the year ended March 31, 2000, TOPPAN PRINTING CO., LTD.,
and subsidiaries prospectively adopted new Japanese accounting standards for consolidation
and equity method accounting and research and development costs. Also, as explained in
Note 1, in the year ended March 31, 2001, TOPPAN PRINTING CO., LTD. and subsidiaries
prospectively adopted new Japanese accounting standards for financial instruments, employees’ severance and retirement benefits, and foreign currency translation. Also, TOPPAN
PRINTING CO., LTD. and subsidiaries changed the method of recording depreciation of
buildings excluding building fixtures, effective April 1, 1999, as referred to in Note 1 and
Note 12, and the accounting treatment for transportation costs, effective April 1, 2000, as
referred to in Note 2, with which we concur.
Also, in our opinion, the U.S. dollar amounts in the accompanying consolidated financial
statements have been translated from Japanese yen on the basis set forth in Note 1.
Asahi & Co
(A Member Firm of Andersen Worldwide SC)
Tokyo, Japan
June 28, 2001
Statement on Accounting Principles and Auditing Standards
This statement is to remind users that accounting principles and auditing standards and
their application in practice may vary among nations and therefore could affect, possibly
materially, the reported financial position and results of operations. The accompanying
financial statements are prepared based on accounting principles generally accepted in
Japan, and the auditing standards and their application in practice are those generally
accepted in Japan. Accordingly, the accompanying consolidated financial statements and
the auditors’ report presented above are for users familiar with Japanese accounting principles, auditing standards and their application in practice.
52
AR 01.10.24 6:24 PM ページ 53
CORPORATE DATA
Board of Directors and Auditors 54
Consolidated Subsidiaries and Affiliates 56
International Network 58
Investor Information 60
AR 01.10.24 6:24 PM ページ 54
(As of June 28, 2001)
BOARD OF DIRECTORS
AND AUDITORS
Photo at Toppan Hall
Front row from left: Hiromichi Fujita and Naoki Adachi
Middle row from left: Shimpei Hasegawa, Tsuneyasu Kuromitsu, and Tohru Shimabukuro
Back row from left: Tetsuro Minami, Masao Tsuchiya, Yukio Tagawa, and Hiroshi Kukimoto
54
AR 01.10.24 6:24 PM ページ 55
Hiromichi Fujita
Tohru Shimabukuro
Sawako Noma
Kenji Ejima
Chairman & Representative
Senior Managing Director
Director
Senior Corporate Auditor
Tetsuro Minami
Masayasu Ishida
Hideo Yuasa
Director
Corporate Auditor
Masao Tsuchiya
Akihiro Nagata
Kohken Tsuchiya
Director
Corporate Auditor
Yukio Tagawa
Yoshio Sakamura
Shuurou Hikita
Director
Corporate Auditor
Hiroshi Kukimoto
Hideaki Kawai
Director
Shuji Higashida
Yukio Natori
Managing Director
Director
Koichi Miyazaki
Hiroshi Inoue
Managing Director
Director
Hiromichi Kono
Yoshiaki Tsuneda
Managing Director
Director
Tatsuo Yamamoto
Toshihiko Akiyama
Managing Director
Director
Takeshi Toyama
Takaharu Ariga
Managing Director
Director
Director
Naoki Adachi
President & CEO
Shimpei Hasegawa
Vice President
Tsuneyasu Kuromitsu
Vice President
Takashi Terachi
Director
Ryuzou Yabe
Director
Sakae Cho
Director
Hiroshi Yamazaki
Director
55
AR 01.10.24 6:24 PM ページ 56
(As of June 28, 2001)
CONSOLIDATED SUBSIDIARIES
AND AFFILIATES
Printing
SECURITIES & CARDS
PUBLICATIONS PRINTING
Tokyo Magnetic Printing Co., Ltd.*
Toppan Printing Co., (Shanghai) Ltd.
Toppan Forms Co., Ltd.
Toppan Forms (Hamamatsu) Co., Ltd.
Toppan Forms Operation Co., Ltd.
Toppan Forms Process Co., Ltd.
Techno Toppan Forms Co., Ltd.
Toppan Forms (Sanyo) Co., Ltd.
Kagawa Business Forms Co., Ltd.
Okinawa Business Forms Co., Ltd.
Toppan Forms (Hokkaido) Co., Ltd.
Toppan Forms Logistics and Services Co., Ltd.
Toppan Forms Logistics and Services Kansai Co., Ltd.
Toppan Forms Logistics and Services Nishinihon Co., Ltd.
TSB Co., Ltd.
T.F. Company, Ltd.
Toppan Forms (H.K.), Ltd.
Toppan Forms Computer Systems Ltd.
Manson Computer Forms Co., Ltd.
Toppan Forms Card Technologies Ltd.
Toppan Forms (Singapore) Pte. Ltd.
Toppan Gemplus Services Co., Ltd.*
Tosho Printing Co., Ltd.*
Hino Offset Printing Co., Ltd.*
Toppan Graphic Arts Co., Ltd.
Toppan Johhoku Printing Co., Ltd.
Toppan Seihon Co., Ltd.
Toppan Graphic Co., Ltd.
Tokyo Computer Type Co., Ltd.
T.M.G. Prepress Toppan Co., Ltd.
Kouyou Sangyo Ltd.
Digital House Co., Ltd.
Digital Publishing Service Inc.*
Toppan Printing Co. (America), Inc.
Toppan Printing Co., (Shenzhen) Ltd.
Toppan Printing Co. (H.K.) Ltd.
Toppan Servicing Co., Ltd.
Toppan Printing Co. (Australia) Pty. Ltd.
Toppan Printing (Taiwan) Co., Ltd.
PACKAGING
Toppan Label Co., Ltd.
Tamapoly Co., Ltd.
Toppan Containers Co., Ltd.
San-ei Shiki Ltd.
Totsudan Unyu Soko Ltd.
Totsudan Shiko Ltd.
Toppan Plastic Co., Ltd.
Toppan Packs Co., Ltd.
Toppan Carton Co., Ltd.
Toppan Gravure Prepress Co., Ltd.
Toppan Engineering Co., Ltd.
Toppan Kansai Packs Co., Ltd.
Toppan Captech Co., Ltd.
Toppan Fukuoka Shiko Co., Ltd.
Toppan Saga Yoki Co., Ltd.
Mikkabi Toppan Printing Co., Ltd.
Toppan Miyagi Kako Co., Ltd.
Kansai Bottling Co., Ltd.
Gunma Tama Kako Ltd.
Tama Kako Ltd.
Toppan Beverage Co., Ltd.
Wako Ltd.
PT Toppan Sampoerna Indonesia
Siam Toppan Packaging Co., Ltd.
COMMERCIAL PRINTING
Sobi Calendars Co., Ltd.
Toppan Display Co., Ltd.
Toppan Creative Communications Co., Ltd.
Toppan Graphic Communications Co., Ltd.
Osaka Toppan Display Co., Ltd.
Toppan Graphic Communications Kansai Co., Ltd.
Kumamoto Toppan Co., Ltd.
Toppan Idea Center Nishinihon Co., Ltd.
Kyushu Product Ltd.
Top Planning Ltd.
Kannabe Toppan Co., Ltd.
Toppan Aichi Kako Co., Ltd.
Toppan Multicreate Co., Ltd.
Toppan Hokkaido Insatsukako Co., Ltd.
Toppan Editorial Communications Co., Ltd.
Toppan and Moak Ltd.
Shanghai Toppan International Trading Co., Ltd.
56
AR 01.10.24 6:24 PM ページ 57
Others
INDUSTRIAL MATERIALS
CHEMICAL INDUSTRY
Toppan Kenzai Tech Co., Ltd.
Toppan Interamerica Inc.
Toppan Printing Co. (UK) Ltd.
Toppan Printing GmbH
Toyo Ink Mfg. Co., Ltd.*
PUBLISHING
Tokyo Shoseki Co., Ltd.*
Froebel-Kan Co., Ltd.
Froebel-Kan Hokurikuhanbai Co., Ltd.
Froebel-Kan Fukuokahanbai Co., Ltd.
Froebel-Kan Tohokuhanbai Co., Ltd.
ELECTRONICS
Niigata Toppan Printing Co., Ltd.
Toppan Electronics Fuji Co., Ltd.
Toppan Technical Design Center Co., Ltd.
Toppan Precision Board Ltd.
Toppan Shiga Seimitsu Co., Ltd.
Toppan Electronics, Inc.
Toppan Electronics Co., (Singapore) Pte. Ltd.
Toppan Chunghwa Electronics Co., Ltd.
Toppan Electronics (Taiwan) Co., Ltd.
Toppan CFI (Taiwan) Co., Ltd.
SALES
Toppan Cosmo, Inc.
SERVICES
Toppan Logistics Co., Ltd.
Total Media Development Institute Co., Ltd.
The Institute of Exhibition Art and Technology Co., Ltd.
The Institute of Cultural Communications, Ltd.
Toppan Travel Service Corp.
Top Rep Ltd.
Toppan Multisoft Ltd.
Toppan Management Systems (S) Pte., Ltd.
Toppan Multisoft (Shanghai) Ltd.
Toppan Management Systems (India) Pty., Ltd.
Toppan Security Service Co., Ltd.
Toppan Direct Mail Center Co., Ltd.
Toppan Techno Co., Ltd.
Kita-Osaka Shigyo Co., Ltd.
CyberMap Japan Corp.
Toppan Co., Ltd.
Toppan Hall Co., Ltd.
Toppan Human Information Services Co., Ltd.
Toppan Financial Services Co., Ltd.
Toppan M&I Ltd.*
* Companies marked with an asterisk are affiliates. Others are
consolidated subsidiaries.
57
AR 01.10.24 6:24 PM ページ 58
(As of June 28, 2001)
INTERNATIONAL
NETWORK
International Division
1, Kanda Izumi-cho,
Chiyoda-ku, Tokyo 101-0024, Japan
Phone: 81-3-3835-5741
Fax: 81-3-3835-0674
Locally Incorporated
Companies and Offices
Asia
■ Toppan Printing Co., Ltd.
Beijing Representative Office
No. 2215, Beijing Hotel, Beijing, 100004,
People’s Republic of China
Phone: 86-10-6513-8039
Fax: 86-10-6513-3113
Marketing and liaison
■ Toppan Printing Co., (Shanghai) Ltd.
No. 5583 Hu Nan Road, Pu Dong,
Shanghai, 201316,
Phone: 86-21-5822-1212
Fax: 86-21-5822-1543
Manufacture of bank cards, credit cards,
and prepaid cards
Shanghai Sales Office
Shanghai International Shopping Center,
Room 904, B Building,
527 Huaihai Zhong Road,
Shanghai, 200020,
Phone: 86-21-5306-1354
Fax: 86-21-5306-7296
■ Shanghai Toppan International Trading
Co., Ltd.
Electronics Operations
2nd Floor, 19 Factory Building,
61 Meisheng Road,
Wai Gaoqiao Free Trade Zone,
Shanghai, 200131,
Phone: 86-21-5868-5008
Fax: 86-21-5868-5028
Sales of electronic precision components
Commercial Printing Operations
Nan Zheng Building 601,
No 580 Nan Jing Road,
Shanghai, 200041,
(Under Application)
Phone: 86-21-5234-0442
Fax: 86-21-5234-0309
Sales and purchasing of commercial printing
■ Toppan Printing Co.,
(Shenzhen) Ltd.
No. 27 Industrial Zone,
Chuang Ye Road, Baoan District,
Shenzhen, 518101,
Phone: 86-755-781-2211
Fax: 86-755-780-1262
Book, magazine, and commercial
printing and paper carton packaging
■ Toppan Printing Co. (H.K.) Ltd.
1, Fuk Wang Street,
Yuen Long Industrial Estate,
Yuen Long, New Territories,
Hong Kong, People‘s Republic of China
Phone: 852-2561-0101
Fax: 852-2475-4321
Book, magazine, and commercial printing
■ Toppan Chunghwa
Electronics Co., Ltd.
1127-3 Hopin Road, Padeh City,
Taoyuan, Taiwan, 334
Phone: 886-3-364-3300 Ext. 200
Fax: 886-3-364-9922
Hsin-chu Office
4th Floor, No. 2, Ching-Shan Street,
Hsin-chu City, Taiwan, 300
Phone: 886-3-564-3000
Fax: 886-3-564-5000
Manufacture and sales of photomasks for
semiconductors
■ Toppan Electronics (Taiwan) Co., Ltd.
11th Floor, 109 Min Sheng E. Road, Sec. 3,
Taipei, Taiwan, 105
Phone: 886-2-2719-0065
Fax: 886-2-2719-0067
58
■ Toppan Printing (Taiwan) Co., Ltd.
Taipei, Taiwan, 105
Phone: 886-2-2719-1641
Fax: 886-2-2719-1642
Sales and marketing
■ Toppan CFI (Taiwan) Co., Ltd.
Taipei, Taiwan, 105
Phone: 886-2-2719-0065
Fax: 886-2-2546-9489
Manufacture and sales of color filters
■ Toppan Electronics Co.,
(Singapore) Pte. Ltd.
152 Beach Road, #02-07A Gateway East,
Singapore 189721
Phone: 65-392-0326
Fax: 65-392-0832
■ PT Toppan Sampoerna Indonesia
Jl. Raya Cibitung, Desa Telaga Asih,
Kecamatan Cibitung, Kabupaten Bekasi,
Jawa Barat, Indonesia
Phone: 62-21-883-1153
Fax: 62-21-8832-5946
Manufacture of flexible packaging
materials, paper carton packaging
materials, calendars, and other
commercial printing
■ Siam Toppan Packaging Co., Ltd.
543 Moo 4 Sukhumbit Road,
Tambon Preaksa, Amphur Muang,
Samutprakarn 10280, Thailand
Phone: 66-2-709-3110
Fax: 66-2-709-3115
Manufacture of paper carton and multi-color
process corrugated board
AR 01.10.24 6:24 PM ページ 59
Oceania
■ Toppan Printing Co.
(Australia) Pty. Ltd.
Level 13, 179 Elizabeth Street,
Sydney, NSW 2000, Australia
Phone: 61-2-9283-5611
Fax: 61-2-9283-5185
Sales and marketing
Americas
■ Toppan Printing Co. (America), Inc.
666 Fifth Avenue,
New York, NY 10103, U.S.A.
Phone: 1-212-489-7740
Fax: 1-212-969-9349
Book and magazine printing sales, commercial printing sales, sales promotion, and copyright and joint publication negotiation
New Jersey
1100 Randolph Road,
Somerset, NJ 08873, U.S.A.
Phone: 1-732-469-8400
Fax: 1-732-469-8225
Prepress services and commercial printing
Los Angeles Office
4551 Glencoe Avenue, Suite 230,
Marina del Rey, CA 90292, U.S.A.
Phone: 1-310-823-0050 Ext. 110
Fax: 1-310-823-0777
Book and commercial printing sales
■ Toppan Electronics, Inc.
Advanced Interconnect Division
7770 Miramar Road,
San Diego, CA 92126, U.S.A.
Phone: 1-858-695-2222
Fax: 1-858-695-6823
Manufacture and sales of printed wiring
boards
Electronic Components Division
3032 Bunker Hill Lane, Suite 108,
Santa Clara, CA 95054, U.S.A.
Phone: 1-408-982-0944
Fax: 1-408-982-0953
Electronic precision components sales
and marketing
■ Toppan Interamerica Inc.
1131 Highway 155 South,
McDonough, GA 30253, U.S.A.
Phone: 1-770-957-5060
Fax: 1-770-957-6447
Manufacture and sales of interior decor
materials
Irvine Office
20 Executive Park, Suite 130,
Irvine, CA 92614, U.S.A.
Phone: 1-949-474-8250
Fax: 1-949-474-8253
Sales and marketing
■ Toppan Printing Co., Ltd.
International Business Law Center
c/o Squire, Sanders & Dempsey,
One Maritime Plaza, Suite 300,
San Francisco, CA 94111, U.S.A.
Phone: 1-415-393-9839
Fax: 1-415-296-8382
Europe
■ Toppan Printing Co. (UK) Ltd.
Gillingham House,
38-44 Gillingham Street,
London SW1V 1HU, United Kingdom
Phone: 44-20-7828-7292
Fax: 44-20-7828-5310
European headquarters for sales of interior
decor materials, electronic precision components, book printing, and marketing
■ TTi Card Technology Europe Ltd.
Brindle Avenue, Coventry CV3 1JG,
United Kingdom
Phone: 44-24-7665-0505
Fax: 44-24-7665-9655
Sales of credit cards, IC cards, and others
■ Toppan Printing GmbH
Immermannstr. 14-16,
D-40210 Düsseldorf, Germany
Phone: 49-211-356648
Fax: 49-211-363688
Interior decor and industrial materials
sales and marketing
59
Technical Tie-ups with
Foreign Companies
Kliklok Corp. (Connecticut)
Graphic Packaging Corporation
(Connecticut)
Optigraphics Corp. (Texas)
Texas Instruments Incorporated (Texas)
Scholle Corp. (Illinois)
Golden Valley Microwave
Foods, Inc. (Minnesota)
Eastman Kodak Company (New York)
Blue Ridge Paper Products, Inc.
(Virginia)
Avery Dennison Corporation (California)
Weaver Popcorn Co., Inc. (Indiana)
Polaroid Corporation (Massachusetts)
Contra Vision Limited (London)
M-Pak Ltd. (London)
Mondex International Limited (London)
Société Internationale
Pour L’Innovation (Paris)
CP8 Technology (Louveciennes, France)
Michael Hörauf Maschinenfabrik
GmbH (Donzdorf, Germany)
Balzers Process Systems Gmbh
(Alzenau, Germany)
Koninklijke Philips Electronics N.V.
(Eindhoven, Netherlands)
Telstra Corp. Limited (Melbourne)
KMK Lizence Ltd. (Port Luis, Mauritius)
Choung Hsim Co., Ltd. (Taiwan)
Allied Material Technology Corp.
(Taiwan)
Worlds Incorporated (Boston)
AR 01.10.24 6:24 PM ページ 60
(As of March 31, 2001)
INVESTOR
INFORMATION
Head Office
Common Stock
1, Kanda Izumi-cho,
Chiyoda-ku, Tokyo 101-0024, Japan
Phone: (03) 3835-5741
Fax: (03) 3835-0674
Authorized—1,200,000,000 shares
Outstanding—699,411,267 shares
Stock Exchange Listings
Tokyo, Osaka, and Luxembourg
Established
1900
Tokyo Stock Exchange Code
7911
Number of Employees
32,163
Principal Shareholders
Number of Percentage
of total
shares held
(%)
(thousands)
Fiscal Year-End
March 31
Nippon Life Insurance Company
The Dai-ichi Mutual Life Insurance Company
The Bank of Tokyo-Mitsubishi, Ltd.
Japan Trustee Services Bank, Ltd.
The Chase Manhattan Bank
DB Equity Limited 615
The Sakura Bank, Limited
Employee Stock Club
State Street Bank and Trust Company
The Mitsubishi Trust and Banking Corporation
Ordinary General Meeting of Shareholders
Held in June.
Dates of Record for Shareholders
Ordinary general meeting of shareholders, year-end dividends:
March 31
Payment of interim dividends: September 30
Other dates announced as necessary.
29,458
29,329
27,428
19,390
19,033
18,561
17,561
13,783
12,858
11,727
4.21
4.19
3.92
2.77
2.72
2.65
2.51
1.97
1.84
1.68
Note: On April 1, 2001, The Sakura Bank, Limited, merged with The
Sumitomo Bank, Limited, to form Sumitomo Mitsui Banking Corporation. As
of March 31, 2001, Sumitomo Bank held 9,866 thousand shares (1.41%) of
Toppan stock.
Newspaper for Public Notice
Nihon Keizai Shimbun
Independent Public Accountants
Asahi & Co (A Member Firm of Andersen Worldwide SC)
Tokyo, Japan
Transfer Agent of Common Stocks
Handling Office
The Mitsubishi Trust and Banking Corporation
Corporate Agency Department
7-7, Nishi-Ikebukuro 1-chome,
Toshima-ku, Tokyo 171-8508, Japan
Phone: (03) 5391-1900
60
AR 01.10.24 6:24 PM ページ 61
Stock Price Range & Trading Volume (Tokyo Stock Exchange)
(¥)
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
Nikkei Stock Average (right scale)
Toppan Stock (left scale)
Stock Ownership Profile
By Type of Shareholder
(¥)
20,000
19,000
18,000
17,000
16,000
15,000
14,000
13,000
12,000
11,000
10,000
Securities companies
0.42%
(Thousand shares)
699,411,267
shares
50,000
40,000
Foreign companies
25.08%
Financial
institutions
41.29%
Monthly Volume
30,000
Other companies
14.27%
20,000
10,000
Individual investors
18.94%
0
By Number of Shares Held
Less than 1,000 shares
0.40%
More than 1,000 shares
11.87%
More than
10,000 shares
4.51%
699,411,267
shares
More than
1,000,000
shares
66.47%
More than
50,000 shares
2.05%
More than 100,000 shares
14.70%
Produced and printed in Japan by Toppan Printing Co., Ltd.
Except for the cover, this annual report was printed on
Toppan Green Paper Bagasse, 90% recycled paper and 10% bagasse.
61
C1-C4 01.10.24 6:51 PM ページ 1
http://www.toppan.co.jp/
TOPPAN 2001.10.!
Printed in Japan

Toppan is Communication

Transcription

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