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TOPPA
N FO
RMS REPO
RT 2016
TOPPAN FORMS REPORT 2016Year ended March 31, 2016
INTEGRATION AND
ENHANCEMENT
e TOPPAN FORMS REPORT 2016
MANAGEMENT PHILOSOPHY
“SAN-EKI ICHIJO– Tria juncta in uno–Contributions”Toppan Forms–An Innovative Business PioneerThe business origin of Toppan Forms Co., Ltd., is found in its management philosophy of “san-eki
ichijo–tria juncta in uno–contributions.” This philosophy has been passed down continuously
over the years and has served as the fundamental meaning of the Company’s existence. “San-eki
ichijo” refers to three kinds of benefits: societal benefits, corporate benefits, and individual
benefits. Societal benefits are those that contribute to economic development by creating new
value that answers the needs of society and meets the expectations of customers. Corporate
benefits are those that help realize sustainable growth by raising profits through fair business
activities. Individual benefits are those that build a prosperous lifestyle for each of our employ-
ees and allow them to conduct their work with pride and a sense of mission. In order to realize
these three kinds of benefits, we have been developing our business as an innovative business
pioneer in a way that clearly differentiates ourselves from a typical business forms manufacturer.
Toppan Forms’ Well-Established History in Business Innovation
CONTENTS
1 Integration and Enhancement
4 Consolidated Financial Highlights
6 To Our Stakeholders
8 A Message from the President
12 Review of Operations
20 Corporate Governance
26 Board of Directors
28 Research and Development
30 Human Resources
31 Corporate Social Responsibility
32 Financial Section
62 Corporate Information
62 Principal Subsidiaries and A�liates
63 Investor Information
About this Toppan Forms Report
Toppan Forms Report 2016 has been published
to serve as a communication tool to help the
Company develop stronger trust-based relation-
ships with its shareholders and other investors
as well as all of its other stakeholders. The pur-
pose of this report is not only to disclose infor-
mation regarding the Company’s operating
performance, financial position, and manage-
ment initiatives, but it is also to deepen the
reader’s understanding of the superior position
that the Company has developed in the fields
of printing, information management,
and communication.
Toppan Forms Report 2016 focuses on expanding
information on our ESG (environment, social, and
governance) activities in order to facilitate an
understanding of our long-term value creation
among all of our stakeholders.
Toppan Forms views business forms as a vessel for information rather than mere slips of paper. By changing the composition of that vessel, whether it is paper, plastic, or some type of online content, the Company has created a wide variety of products and solutions. In addition, through the strong security systems we have established in order to handle valuable information, we have built strong relationships with its customers based on trust. Bringing together the accomplishments we have made throughout the years, we will work to realize sustainable growth by venturing into new business domains.
TOPPAN FORMS REPORT 2016 11
The Position Toppan Forms Has Established over the Years
Net Sales
¥273.2 billion
Operating Income
¥13.7 billion
Operating Income Margin
5.0 %
ROE
5.8 %
in the printing business
share in the domestic business forms market
share in the domestic data print services (DPS) market
A Company Evaluated Highly by Society
Diversity Management Selection 100*1
Selected in 2014
Competitive IT Strategy Company brand*2
Selected for two consecutive years
Nadeshiko Brand*2
Selected for three consecutive years
Health and Productivity Management brand*2
Selected for the �rst time in 2016
*1 Selections are made by the Ministry of Economy, Trade and Industry (METI), and a company can only be selected once.*2 Selections are made by METI and the Tokyo Stock Exchange. Selections are carried out every year, with the selected companies
being replaced each year.
Consolidated Business Performance in Fiscal 2016
No. 3
No. 1
No. 1
2 TOPPAN FORMS REPORT 2016
Aspirations for Sustainable Growth across Four Businesses
Centered on Vessels for InformationSince its establishment as a company specializing in business forms, Toppan Forms has expanded
beyond business forms to create unprecedented products and solutions in a variety of domains,
guided by its efforts to meet the changing needs of customers from generation to generation.
At the time of its foundation, Toppan Forms dealt only in the domain of business forms, a specific
domain within the printing business. Today, we have expanded our range of businesses to include
data print services (DPS), business process outsourcing (BPO), information and communications
technology (ICT), merchandise businesses, and overseas businesses. In these ways, we have trans-
formed into a company that provides a wide variety of solutions and is no longer contained within
the framework of being just a printing company.
* This integrated report presents Toppan Forms’ operations in four business segments to reflect the actual conditions of the Company’s business activities. For accounting purposes, the Financial Review section divides the Company’s business into two segments.
Overseas Business
Printing Business
(Business forms)
(DPS)(BPO)(Others)
Merchandise Business
ICT Business Printing Business
(Business forms)
Sales Composition Ratio for Fiscal 2016*
Security systems
Original business domains
Customer base
The Competitive Edge of Toppan Forms
7.7 %
68.0 %5.4 %
18.9 %
TOPPAN FORMS REPORT 2016 3
Net Sales
¥300.0 billion
Operating Income
¥20.0 billion
Operating Income Margin
6.7 %
ROE
7.0 %
With the adoption of “accelerate business expansion in the information management domain” in its medium-term management plan,
Toppan Forms is working to develop highly profitable products and solutions unique to the Company.
Creating new payment scenarios through the development of an
e-money payment platform
Developing businesses and BPO ser-vices that respond to both paper and digital media for government agen-cies as well as for manufacturing and other industries
Supporting the design of more e�ective noti�cation materials from a neuroscienti�c perspec-tive by measuring and analyzing eye movement and brain waves
Consolidated Financial Targets
for Fiscal 2021
Creation of Businesses as an Innovative Business Pioneer That Anticipates Global Trends
Following the accelerated progression of IT in various fields, including IoT and FinTech, the needs of the market have become even more diverse. With a focus on this rapidly evolving operating environment, Toppan Forms is leveraging its long-cultivated technologies in information management to develop new businesses. Specifically, we are creating unique solutions that differ from our competitors. Such solutions include services that combine both paper and digital media, highly specialized BPO services, a cloud-based electronic money (e-money) payment platform, and a total support service for business forms that leverages data analysis. By providing these unique solutions, we will continue to achieve sustainable growth while contributing to the realization of an affluent society and establishing next-generation de facto standards.
4 TOPPAN FORMS REPORT 2016
(Millions of yen) (Thousands of U.S. dollars*1)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016
Business Results Net sales ¥212,327 ¥219,197 ¥228,565 ¥235,895 ¥231,617 ¥224,305 ¥227,049 ¥243,799 ¥261,411 ¥265,886 ¥273,217 $2,424,717 Operating income 15,717 16,088 15,178 15,687 12,997 10,308 10,908 11,887 12,270 12,607 13,675 121,358 Operating income margin (%) 7.4 7.3 6.6 6.6 5.6 4.6 4.8 4.9 4.7 4.7 5.0 – Profit attributable to owners of parent 9,392 9,684 8,752 8,791 7,512 5,030 5,590 7,109 7,322 7,835 9,361 83,074 R&D expenditure 2,174 2,242 2,556 2,697 2,258 2,413 2,269 2,075 1,928 1,781 1,497 13,283 Capital expenditure 5,851 10,173 9,828 9,619 10,275 11,261 5,596 12,998 10,317 6,334 7,555 67,045 Depreciation 4,835 5,013 6,369 8,561 8,904 8,512 8,566 7,470 8,375 8,633 9,159 81,282
Financial Position Total assets ¥182,705 ¥186,902 ¥185,237 ¥185,636 ¥187,094 ¥186,576 ¥190,550 ¥200,510 ¥208,005 ¥224,358 ¥228,612 $2,028,860 Total net assets 118,432 125,285 127,888 133,894 138,631 140,886 143,701 150,264 155,308 163,916 165,785 1,471,287
Cash Flows Net cash provided by operating activities ¥13,319 ¥10,625 ¥ 13,524 ¥ 15,685 ¥14,520 ¥ 17,427 ¥11,670 ¥17,183 ¥ 13,882 ¥26,420 ¥14,362 $127,460 Net cash used in investing activities (5,458) (8,247) (11,948) (10,110) (9,783) (12,504) (5,898) (8,822) (15,927) (7,790) (5,467) (48,521) Free cash flow 7,861 2,378 1,576 5,575 4,737 4,923 5,772 8,361 (2,045) 18,630 8,895 78,939 Net cash used in financing activities (4,074) (2,805) (6,420) (3,488) (3,768) (3,575) (3,242) (2,950) (2,675) (2,933) (2,831) (25,125)
Per Share Data*2 (yen) Net income per share ¥ 81.42 ¥ 84.98 ¥ 77.24 ¥ 79.20 ¥ 67.68 ¥ 45.32 ¥ 50.37 ¥ 64.05 ¥ 65.96 ¥ 70.59 ¥ 84.33 $ 0.75 Shareholders’ equity per share 1,082.39 1,129.46 1,162.99 1,199.04 1,245.62 1,263.23 1,289.67 1,348.07 1,393.46 1,457.40 1,475.11 13.09 Cash dividends per share 24.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 0.22
Financial Indicators (%) Return on equity (ROE) 7.9 7.7 6.8 6.7 5.5 3.6 3.9 4.9 4.8 5.0 5.8 Return on assets (ROA) 5.1 5.2 4.7 4.7 4.0 2.7 2.9 3.5 3.5 3.5 4.1 Equity ratio 67.6 68.9 69.7 71.7 73.9 75.2 75.1 74.6 74.4 72.1 71.6
Non-Financial Data Number of employees (consolidated) 6,224 6,483 6,641 7,357 7,529 7,598 7,715 7,827 11,429 11,964 12,049 Percentage of female employees (non-consolidated) (%) 11.2 11.6 12.5 13.2 13.7 14.1 17.4 18.0 18.3 19.5 20.0 Percentage of female managers (non-consolidated) (%) 0.8 0.8 1.2 2.2 2.1 2.3 2.7 3.0 3.9 4.6 4.8 CO2 emissions*3 (t-CO2) 48,812 47,612 49,732 50,750 50,389 52,723 48,950 47,776 49,670 49,227 48,731 Volume of waste generated (t) 28,716 28,715 30,400 29,101 27,756 26,955 26,176 24,053 24,153 25,080 24,541
*1 U.S. dollar amounts have been converted from yen, for convenience only, at the rate of ¥112.68 = US$1, as at March 31, 2016.
*2 The computations of net income per share and shareholders’ equity per share are based on the weighted-average number of common stock outstanding during each year. Treasury stock held during each year are excluded. Cash dividends per share represent the actual amounts applicable to the earnings of the respective years.
*3 CO2 emissions were calculated based on the Ministry of the Environment’s Guidelines for the Calculation Method for Greenhouse Gas Emissions from Businesses (2003).
70,000
0
140,000
210,000
280,000
12 13 14 15 160
4,000
8,000
12,000
16,000
0
1.5
3.0
4.5
6.0
12 13 14 15 160
2,500
5,000
7,500
10,000
0
1.5
3.0
4.5
6.0
0
60,000
120,000
180,000
240,000
12 13 14 15 16
Net Sales / Operating Income
(Millions of yen) (Millions of yen)
Profit Attributable to Owners of Parent / ROE(Millions of yen) (%)
Total Assets / ROA
(Millions of yen) (%)
Net Sales Operating Income (right) Profit Attributable to Owners of Parent ROE (right)
Total Assets ROA (right)
CONSOLIDATED FINANCIAL HIGHLIGHTS Toppan Forms Co., Ltd. and Consolidated Subsidiaries Year ended March 31
TOPPAN FORMS REPORT 2016 5
0
50,000
100,000
150,000
200,000
0
25.0
50.0
75.0
100.0
12 13 14 15 16–30,000
–15,000
0
15,000
30,000
12 13 14 15 16 12 13 14 15 160
25
50
75
100
Total Net Assets / Equity Ratio
(Millions of yen) (%)
Cash Flows
(Millions of yen)
Net Income Per Share
(Yen)
Total Shareholders’ Equity
Equity Ratio (right)
Net Cash Provided by Operating Activities
Net Cash Used in Investing Activities
Net Cash Used in Financing Activities
(Millions of yen) (Thousands of U.S. dollars*1)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2016
Business Results Net sales ¥212,327 ¥219,197 ¥228,565 ¥235,895 ¥231,617 ¥224,305 ¥227,049 ¥243,799 ¥261,411 ¥265,886 ¥273,217 $2,424,717 Operating income 15,717 16,088 15,178 15,687 12,997 10,308 10,908 11,887 12,270 12,607 13,675 121,358 Operating income margin (%) 7.4 7.3 6.6 6.6 5.6 4.6 4.8 4.9 4.7 4.7 5.0 – Profit attributable to owners of parent 9,392 9,684 8,752 8,791 7,512 5,030 5,590 7,109 7,322 7,835 9,361 83,074 R&D expenditure 2,174 2,242 2,556 2,697 2,258 2,413 2,269 2,075 1,928 1,781 1,497 13,283 Capital expenditure 5,851 10,173 9,828 9,619 10,275 11,261 5,596 12,998 10,317 6,334 7,555 67,045 Depreciation 4,835 5,013 6,369 8,561 8,904 8,512 8,566 7,470 8,375 8,633 9,159 81,282
Financial Position Total assets ¥182,705 ¥186,902 ¥185,237 ¥185,636 ¥187,094 ¥186,576 ¥190,550 ¥200,510 ¥208,005 ¥224,358 ¥228,612 $2,028,860 Total net assets 118,432 125,285 127,888 133,894 138,631 140,886 143,701 150,264 155,308 163,916 165,785 1,471,287
Cash Flows Net cash provided by operating activities ¥13,319 ¥10,625 ¥ 13,524 ¥ 15,685 ¥14,520 ¥ 17,427 ¥11,670 ¥17,183 ¥ 13,882 ¥26,420 ¥14,362 $127,460 Net cash used in investing activities (5,458) (8,247) (11,948) (10,110) (9,783) (12,504) (5,898) (8,822) (15,927) (7,790) (5,467) (48,521) Free cash flow 7,861 2,378 1,576 5,575 4,737 4,923 5,772 8,361 (2,045) 18,630 8,895 78,939 Net cash used in financing activities (4,074) (2,805) (6,420) (3,488) (3,768) (3,575) (3,242) (2,950) (2,675) (2,933) (2,831) (25,125)
Per Share Data*2 (yen) Net income per share ¥ 81.42 ¥ 84.98 ¥ 77.24 ¥ 79.20 ¥ 67.68 ¥ 45.32 ¥ 50.37 ¥ 64.05 ¥ 65.96 ¥ 70.59 ¥ 84.33 $ 0.75 Shareholders’ equity per share 1,082.39 1,129.46 1,162.99 1,199.04 1,245.62 1,263.23 1,289.67 1,348.07 1,393.46 1,457.40 1,475.11 13.09 Cash dividends per share 24.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 0.22
Financial Indicators (%) Return on equity (ROE) 7.9 7.7 6.8 6.7 5.5 3.6 3.9 4.9 4.8 5.0 5.8 Return on assets (ROA) 5.1 5.2 4.7 4.7 4.0 2.7 2.9 3.5 3.5 3.5 4.1 Equity ratio 67.6 68.9 69.7 71.7 73.9 75.2 75.1 74.6 74.4 72.1 71.6
Non-Financial Data Number of employees (consolidated) 6,224 6,483 6,641 7,357 7,529 7,598 7,715 7,827 11,429 11,964 12,049 Percentage of female employees (non-consolidated) (%) 11.2 11.6 12.5 13.2 13.7 14.1 17.4 18.0 18.3 19.5 20.0 Percentage of female managers (non-consolidated) (%) 0.8 0.8 1.2 2.2 2.1 2.3 2.7 3.0 3.9 4.6 4.8 CO2 emissions*3 (t-CO2) 48,812 47,612 49,732 50,750 50,389 52,723 48,950 47,776 49,670 49,227 48,731 Volume of waste generated (t) 28,716 28,715 30,400 29,101 27,756 26,955 26,176 24,053 24,153 25,080 24,541
*1 U.S. dollar amounts have been converted from yen, for convenience only, at the rate of ¥112.68 = US$1, as at March 31, 2016.
*2 The computations of net income per share and shareholders’ equity per share are based on the weighted-average number of common stock outstanding during each year. Treasury stock held during each year are excluded. Cash dividends per share represent the actual amounts applicable to the earnings of the respective years.
*3 CO2 emissions were calculated based on the Ministry of the Environment’s Guidelines for the Calculation Method for Greenhouse Gas Emissions from Businesses (2003).
6 TOPPAN FORMS REPORT 2016
TO OUR STAKEHOLDERS
Pioneering in a New Era with Information Management Solutions
Shu SakuraiChairman & CEO
Koichi SakataPresident & COO
TOPPAN FORMS REPORT 2016 7
Through a resolution passed at the General Meeting of Shareholders held in June 2016 and endorsed at a subsequent
Board of Directors’ meeting, Toppan Forms has instituted a new management structure. Under the new structure, the
Company has appointed Shu Sakurai as chairman and representative director and Koichi Sakata as president and
representative director.
In 1965, Toppan Forms was established as a joint venture between Japan’s largest comprehensive printing company
TOPPAN PRINTING CO., LTD., and the then world’s largest business forms manufacturer Moore Corporation Limited, of
Canada. Since then, Toppan Forms has been working to constantly create new products and solutions as well as advance
into new markets as an industry-leading company alongside the progression of computerization in Japan.
However, our development as a company has been far from an easy journey. In recent years, economic conditions
have worsened both in Japan and overseas due to impacts of global financial crises and the Great East Japan Earthquake.
In addition, the domestic market for the printing business, which represents Toppan Forms’ core business, has steadily
contracted, resulting in the continuation of extremely unfavorable circumstances for the Company.
Within this adverse operating environment, questions arise as to how we can realize sustainable growth.
In accordance with our management philosophy of “san-eki ichijo–tria juncta in uno–contributions,” we have stated
that the meaning of our existence is to proactively contribute to society as an innovative business pioneer. Based on this
premise, which could also be considered the origin of our foundation, we have adopted “to become the unparalleled
No. 1 in personal information handling with ‘overwhelming quality’ and ‘absolute security’,” as our basic management
policy and have worked to enhance both the quality of our services and the effectiveness of our solid security systems
that we have established through our business forms, DPS, and BPO operations. We have also made efforts to enhance
solutions centered on “information management.”
At the start of fiscal 2017, the year ending March 31, 2017, we introduced “accelerate business expansion in the infor-
mation management domain” as an additional policy to complement our basic management policy. Amid the wide
variety of crucial strategies that companies are implementing in their business activities, we have formulated the “information
strategy” to guide our actions in the information management domain, which we view as the greatest strength of the
Toppan Forms Group. In doing so, we have set out on a course to accelerate the expansion of businesses that specialize
in information management.
Our roots lie in the printing of business forms. However, not being constrained to the printing domain, we have been
working to transform ourselves into a company that offers a wide range of information management solutions. By taking
advantage of the opportunities the new management structure provides us, we will accelerate the speed of this transfor-
mation as we aim to realize sustainable growth through our unique business model.
In this endeavor, we would like to ask our stakeholders for your continued understanding and support.
August 2016
Shu SakuraiChairman & CEO
Koichi SakataPresident & COO
8 TOPPAN FORMS REPORT 2016
On Being Appointed Company PresidentMy name is Koichi Sakata. On June 29, 2016, I was appointed president and representative director of Toppan Forms. In coopera-
tion with chairman and representative director Shu Sakurai, I intend to lead the Toppan Forms Group on a path to further growth.
Under our current medium-term management plan, not only we are strengthening our existing businesses, we are also
aggressively making investments geared toward creating new businesses. In doing so, we are making efforts under a proactive
strategy to develop a pillar for future profits and realize medium-to-long-term growth. Over the half a century since its founding,
Toppan Forms has upheld the proud tradition of accomplishing growth. As president, I will put forth my best effort in order for
the Company to realize sustainable growth over the next 50 to 100 years.
Business PerformanceOperating EnvironmentIn the fiscal year under review, Japan’s economy made a gradual recovery as corporate earnings and the employment environ-
ment improved, primarily in non-manufacturing industries. On the other hand, consumer spending came to somewhat of a
standstill. Furthermore, there were concerns of economic slowdowns in emerging countries in Asia, including China, and in
resource-rich countries, in addition to the risk of a downturn in corporate earnings due to yen appreciation and falling stock prices.
As a result, the overall operating environment remained unstable.
Under these conditions, the Toppan Forms Group worked to secure new contracts in its BPO operations, centered on DPS,
while focusing its efforts on expanding sales in new businesses, such as original solutions that combine paper media with IT and
e-money payment platforms.
A MESSAGE FROM THE PRESIDENT
Koichi SakataPresident & COO
Maximizing Our Collective Value through
the Establishment of a Flexible Organization and
the Development of Dynamic Human Resources
Net Sales
¥273.2 billion (compared with previous fiscal year: +2.8% )
Operating Income
¥13.7 billion(compared with previous fiscal year: +8.5% )
Profit Attributable to Owners of Parent
¥9.4 billion (compared with previous fiscal year: +19.5% )
TOPPAN FORMS REPORT 2016 9
Consolidated Business Performance in the Fiscal Year under ReviewWith steady growth in our DPS and BPO businesses helping to drive overall growth, we achieved
increases in both sales and income for the fifth consecutive year in fiscal 2016. Specifically, net
sales rose 2.8% year-on-year, to ¥273.2 billion, operating income increased 8.5%, to ¥13.7 billion,
and profit attributable to owners of parent was up 19.5%, to ¥9.4 billion. As a result, the operat-
ing income margin edged up 0.3 percentage points, to 5.0%, and ROE rose 0.8 percentage
points, to 5.8%.
In addition to the increase in income that accompanied higher sales, we successfully reduced
costs through recent efforts to reorganize and consolidate our manufacturing bases. By reduc-
ing the number of domestic manufacturing bases from 40 to 26, we have lowered procurement
costs and promoted more efficient operations, thereby realizing significant cost reductions.
Going forward, we are examining further consolidation of our manufacturing bases, primarily in
the Tokai region, with the aim of ultimately maintaining about 20 bases.
Steady Implementation of Five Key InitiativesIn fiscal 2016, we adopted “accelerate business expansion in the information management domain” as an additional policy to com-
plement our basic management policy. This new policy helps to better clarify the strengths of the Group as well as the direction
toward which the Group should head and the domains on which it should focus. Specifically, we are implementing five key initia-
tives: combining paper media and IT; enhancing personalized marketing; maximizing effects of investments; strengthening the
revenue base; and creating work environments for greater job satisfaction.
1 Combining paper media and IT
Backed by our solid information security systems and thorough BCP systems, we are further sharpening our competitive edge by
leveraging our long-cultivated form management technology to enhance our lineup of services that combine paper media and
IT. In doing so, we are solidifying our position as a partner to our customers as they pursue business expansion. To promote this
key initiative, we launched the Enterprise Form Management Service (EFMS), which provides companies with total support for the
management of paper and digitalized business forms over their life cycle. Going forward, we will undertake initiatives to expand
the applications of EFMS, promoting the expansion of sales by targeting not only customers in the financial industry but also
those in the manufacturing and logistics industries as well as government agencies.
2 Enhancing personalized marketing
Aiming to realize optimal communication based on data analysis of individual customer attributes and behavior history, we are
making efforts to discover new markets by reinforcing our marketing capabilities and melding our content management technol-
ogies–a strongpoint of the Company–with variable data printing technologies. In the fiscal year under review, we took steps to
further improve the quality of our printing through the use of variable data printers, working to take on projects that require high
levels of printing quality in which variable data printing had been difficult to perform previously, such as the printing of direct
mail for cosmetic manufacturers. By reinforcing our operations in such upstream domains as data analysis, we aim to provide
highly competitive services that incorporate variable data printing technologies.
3 Maximizing effects of investments
To respond to the changing operating environment and expand our business, we are actively carrying out strategic investments.
These investments are intended to strengthen our functions in the field of IT, add value to our outsourcing services, and secure
new business partners, primarily in ASEAN countries.
As for specific examples of how we are implementing this key initiative, we established TF Payment Service Co., Ltd., in Japan in
December 2011. We have completed the development of the Thincacloud e-money payment platform, which is managed by TF
Payment Service, and have been making genuine progress in increasing the service’s sales in a variety of industries. In overseas,
we have been expanding conventional businesses as well as businesses in the domains of BPO and ICT. At the same time, we have
made strides in entering the markets of ASEAN countries, primarily through Data Products Toppan Forms Ltd., which became
a subsidiary in March 2015.
10 TOPPAN FORMS REPORT 2016
Further more, in addition to regular capital expenditure, we plan to carry out total investment of ¥10.0 billion by fiscal 2018
with a focus on the future. This undertaking will include strategic investments in M&A and new businesses, primarily in the fields
of IT services, BPO, project consulting, and overseas development.
4 Strengthening the revenue base
We are making efforts to improve profitability and promote products and solutions with high added value. These efforts include
reducing costs by consolidating manufacturing bases and raising productivity, reorganizing Group companies in an optimal
manner, and developing solutions that leverage our strengths.
In fiscal 2016, we promoted further reductions in manufacturing costs by capitalizing on the effects of consolidating our manu-
facturing bases, an effort we engaged in through fiscal 2015, and raising productivity. At the same time, we worked to increase
profits and innovate our business through proactive investments in IT. We are currently examining further consolidation of our
manufacturing bases, primarily in the Tokai region, as we aim to strengthen our revenue base even more going forward.
5 Creating work environments for greater job satisfaction
By promoting “diversity and integration,” we are working to foster a corporate culture that encourages women to play an active
role and realizes a work-life balance and appropriate health management for our employees, thereby increasing job satisfaction.
While it goes without saying, our growth as a company is linked to the personal growth and development of our employees.
As such, we will accelerate initiatives to cultivate outstanding human resources that support the sustainable growth of the Group
as well as efforts to create work environments that fosters greater job satisfaction.
Through these five key initiatives, we aim to achieve net sales of ¥300.0 billion, up 9.8% compared with the year ended March 31,
2016, operating income of ¥20.0 billion, up 46.3%, an operating income margin of 6.7%, up 1.7 percentage points, and ROE of 7.0%, up
1.2 percentage points by fiscal 2021.
Strategies of Corporate Activities and Business Domains of Toppan Forms
Accelerate business expansion in the Information Management domain
1 Combining paper media and IT
2 Enhancing personalized marketing
3 Maximizing effects of investments
4 Strengthening the revenue base
5 Creating work environments for greater job satisfaction
Corporatecommunication
domain
Informationstrategy Database,
big data
Informationdomain
Promotion &advertising strategy
Campaigns,events, �yers,
POP advertisingcatalogs
Product strategyPacking, materials,
books, publications,electronics
Branding & publicrelations strategy
Corporate public relations,cultural activities
Corporateactivities
Toppan Forms
TOPPAN FORMS REPORT 2016 11
Toward Realizing Sustainable GrowthAiming to Improve the Transparency of Our ManagementAmid the growing interest toward corporate governance, Japanese corporations are pushing for various reforms to existing cor-
porate governance structures. In November 2015, we announced our Corporate Governance Basic Policy, which lays out our basic
approach and status of initiatives with regard to corporate governance.
Additionally, in July 2016, we reduced the number of Company directors from 15 to 11 and increased the number of outside
directors to two. In this way, we are making efforts to transform our corporate governance structure into one that encourages
efficient and prompt decision making as well as more substantive debate. While I can say with confidence that we have been
holding free and lively debate at meetings of the Board of Directors for many years, these recent reforms ensure that discussions
will be held in a more constructive and meaningful manner. Also, to more clearly separate the roles of management and business
execution, we will continue to promote governance reforms that ensure the fairness and transparency of our management,
including the appointment of additional outside directors.
Improving Our Ability to Respond to Changes through a Diverse Group of Human ResourcesAs we aim to realize growth amid rapidly changing social conditions, I believe that the role our human resources play will become
even more significant. While we started out as a company specializing in business forms, we now engage in a wide variety of
businesses, a reflection of the major changes that markets have undergone over the past half a century. Going forward, the
importance of developing flexible human resources who have the ability to respond to change will increase further.
Moreover, responding appropriately to change is essential for us as an organization. The continual creation of new products,
services, and technologies calls for a high level of business sensitivity that can anticipate market trends as well as in-house sys-
tems where anticipated trends can be accurately communicated to relevant departments. It is also necessary to have sufficient
R&D capabilities to create products that can actually respond to new market trends as well as enough strength on an organiza-
tional level and on an individual level to tie all of these aspects together. I believe that forming a flexible organization that
encourages open communication will help us to improve the way we respond to change.
By drawing on the diversity of human resources from various backgrounds, we are enhancing the ability for our employees and
the Company as a whole to respond appropriately to change. In order to maximize the Group’s collective value, I intend to put a
greater focus on developing and utilizing human resources.
Together with Our StakeholdersShareholder ReturnsIn regard to our policy on shareholder returns, we consider the consolidated payout ratio to be an important management indi-
cator and, as such, adopt a basic policy of providing a continuous and stable dividend. In the fiscal year under review, we issued
dividend payments totaling ¥25.00, making for a consolidated payout ratio of 29.6%.
In ClosingAs an innovative business pioneer, we are working to provide solutions that put the resolution of social issues above all else.
In our 50-year history, we have accumulated a variety of assets, including an extensive customer base, which we established
through our business forms operations; know-how on the management of various information, including personal information,
which we cultivated in our DPS operations; trust-based relationships with our customers; and solid security systems. By combin-
ing these assets with cutting-edge technologies, we will take on the challenge of creating new products, solutions, and busi-
nesses–in a way that only Toppan Forms can do–with the aim of realizing sustainable growth. I would like to ask our shareholders
and other investors for their continued support as we go about tackling this challenge.
August 2016
President & COO
12 TOPPAN FORMS REPORT 2016
REVIEW OF OPERATIONS
Business Performance in Fiscal 2016
In 2016, the fiscal year ended March 31,
2016, sales in the Printing Business segment
increased 2.6%, to ¥185.8 billion. Specifically,
for business forms, the Company offered
plans and proposals for blanket contracts to
undertake work related to the procurement
and management of printed materials, cen-
tering on forms. In addition, the Company
promoted proposals to improve printed
materials using scientific approaches.
Despite these efforts, sales of business
forms decreased due to several factors,
including the effects of reduced demand
brought about by the spread of digitaliza-
tion, a decline in delivery slip volume, and a
drop in unit prices following increasingly
simple orders from customers.
Sales rose year on year in our DPS opera-
tions, despite a decrease in volume that
accompanied efforts by corporations to
reduce costs and declining demand in
direct mail for sales proposals. This increase
was due primarily to solid growth in
contracts for blanket outsourcing of print-
ing operations, mainly from public offices
and local governments, in addition to the
Company’s efforts to capture demand for
personal printing materials that utilize
digital printing technologies.
The performance of BPO services was
solid due to an expansion in contract areas
for existing projects as well as the incorpo-
ration of new projects, primarily received for
financial institutions. This solid performance
helped drive the increase in sales for the
Printing Business segment.
While there were several negative
impacts, such as the decline in sales of busi-
ness forms, profitability improved at the
operating income level thanks to higher
profits accompanying the increase in sales
in other areas as well as our thorough
efforts to reduce manufacturing costs by
improving productivity and consolidating
our manufacturing bases.
The Printing Business segment is one of the main pillars that supports earnings creation
for Toppan Forms. Today, the segment is also the core business of the Company, acting as
the starting point for the technologies used to develop our ever-more diverse lineup of
products and solutions. The segment primarily operates in the fields of business forms,
data print services (DPS), and business process outsourcing (BPO).
(Millions of yen)
Business Forms Data Print Services (DPS)
Business Process Outsourcing (BPO) Others
Net Sales and Composition Ratio
PRINTING BUSINESS SEGMENT
Business Forms
Transportation and delivery slips
Mail-related forms
POSTEX sealed postcard series
Environment-friendly business forms
Data Print Services (DPS)
Business mail for notifications
Direct mail for sales promotions
Personalized marketing tools
Personalized educational materials
Business Process Outsourcing (BPO)
Document scanning
Data input
Customer service and call center operations
Database management
68.0%
14 15 160
50,000
100,000
150,000
200,000
TOPPAN FORMS REPORT 2016 13
As the printing market in Japan continues to contract, we are work-
ing to further develop and evolve our printing business, shifting
from business forms to the BPO domain, which incorporates
standard business forms and DPS operations.
In regard to recent market trends, we are seeing an increase in the
blanket outsourcing of back-office tasks at financial institutions as
procedures become ever more complex due to the diversification
of various services. This trend of outsourcing a wide variety of office
tasks can be seen at public offices and local governments as well,
primarily in fields related to social security, taxes, and disaster con-
trol, due to the promotion of improvements in service quality and
the response to the introduction of the “My Number” national identi-
fication number system. At Toppan Forms, we are assessing these
kinds of needs and promoting efforts to
incorporate new projects in highly
technical, highly profitable domains.
In addition to these efforts, we estab-
lished and commenced the Enterprise
Form Management Service (EFMS),
which melds paper and digital media,
with the purpose of accelerating the combination of paper media
with IT, a key initiative adopted in our medium-term management
plan. EFMS is a hybrid form management platform that centralizes
conventional digital form solutions, which we have provided on an
individual project basis, and provides comprehensive support
throughout the life cycle of both paper and digital forms, from
origination to disposal.
EFMS has been designed to target not only the financial industry
but also government agencies and other customers primarily in the
manufacturing industry, and it is believed to have the potential of
realizing a scale that reaches tens of billions of yen. Going forward,
we will work to further enhance
Company strengths, including our top-
class information security systems,
which securely handle personal infor-
mation; our form design know-how,
which we have cultivated as an indus-
try-leading company; our variable data
printing technologies, which realize
changes in content from one printed
piece to the next; and our highly tech-
nical operational design capabilities,
which innovate the office tasks of our
customers. We will also carry out proac-
tive IT investments. In doing so, we will
accelerate the creation of new busi-
nesses and services unique to the
Company that anticipate changing
market needs.
Mitsuyuki HamadaManaging Director & CIO,Division Manager of Corporate Planning Division
Leveraging Our Strengths in Our Growth Strategies
Establish a Unique Position in the Information Management Domain by Leveraging Our Strengths in Both Paper and Digital Media
Integration and Enhancement
Since its foundation, Toppan Forms has
viewed business forms as an instrument for
information and has worked to develop its
business in a way that clearly distinguishes
itself from other companies. Throughout the
process of branching out from business
forms to incorporate DPS operations, which
handle information, and BPO services, which
respond to the blanket outsourcing of office
tasks, we have established trust-based rela-
tionships with our customers that allow us
to handle all kinds of valuable information,
including personal information. We have
also made efforts to bolster our security sys-
tems to handle these kinds of important
information properly.
Supported by the accomplishments we
have made over the years, we are develop-
ing new solutions through a variety of
means, including the utilization of variable
data printing technologies that leverage
cutting-edge digital printers, of which the
Company owns a world-leading number,
the enhancement of personalized marketing
based on big data analytics, and the combi-
nation of paper media and IT. Although the
business forms market in Japan is contract-
ing, we will continue to realize sustainable
growth going forward, as we have always
done, by accelerating our efforts in the
information management domain, an area
where the Company excels.
14 TOPPAN FORMS REPORT 2016
14 15 160
3,000
6,000
9,000
12,000
15,000
Business Performance in Fiscal 2016
In fiscal 2016, the year ended March 31,
2016, sales in the ICT Business segment rose
6.9% year on year, to ¥14.6 billion. Sales in
the web solutions field were up as we pro-
moted efforts to expand sales of highly
profitable original solutions that use smart-
phones. In the card solutions field, sales also
increased, reflecting our success in captur-
ing solid domestic demand for point cards
and ID cards. Turning to the RFID solutions
field, sales were down due to a decline in
orders for RFID tags in the wake of the com-
pletion of projects to change frequency
bands in accordance with revisions to
Japan’s Radio Act. Operating income for the
ICT Business segment increased due primar-
ily to our efforts to bring in highly profitable
projects centered on web solutions.
In the ICT Business segment, we deal with digital management systems
for document data and a wide range of non-contact type cards, such as
ID cards and e-money cards. We also operate a cloud-based e-money
payment platform.
Web Solutions
Digital management systems for document data
Web invoice delivery and browsing services
Digital business forms
Smart device solutions
Card Solutions
Smart cards
ID cards
E-money cards
Card issuance systems
Card issuance outsourcing
Radio Frequency Identification (RFID) Solutions
RFID tags and labels
RFID devices
Maintenance services
Package software, cloud-based services
Near Field Communication (NFC) Solutions
Thincacloud e-money payment platform
NFC modules
(Millions of yen)
Net Sales and Composition Ratio
ICT BUSINESS SEGMENT
5.4%
For web solutions, we are cooperating with the Printing Business
segment to promote efforts geared toward the combination of
paper media and IT.
In regard to card solutions, we are leveraging the know-how we
possess on personal information management, which we cultivated
through our DPS operations and BPO services, to take on a large
number of contracts for processing card issuance related to personal
information. We are also working daily to evolve our card manufacturing
Leveraging Our Strengths in Our Growth Strategies
REVIEW OF OPERATIONS
TOPPAN FORMS REPORT 2016 15
technology. Furthermore, we are promoting collaboration with the
Central Research Center to develop printing technologies that leverage
our unique ink, which is resistant to hand grease and does not wear
thin easily, as well as high-performance card materials. Furthermore, we
maintain records of the entire process related to card issuance and have
in place a system at our main domestic plants that allow us to quickly
respond to quality-related inquiries from customers after cards have
been delivered. These efforts have garnered high praise from our cus-
tomers. Going forward, we will further enhance our competitiveness by
working to differentiate ourselves from other companies through tech-
nology that guarantees quality.
As for RFID solutions, with the recent spread of the Internet of
Things (IoT), RFID systems are being widely introduced primarily
in the automobile and precision equip-
ment manufacturing industries. RFID
differs from barcodes and QR codes as it
is able to read objects even when they
are outside the line of sight. As such,
RFID can be used in a variety of situations.
Further, as RFID can be used repeatedly,
RFID solutions help to reduce overall costs and improve efficiency.
The Thincacloud e-money payment platform is the representative
example of our NFC solutions. We have recently completed work to
make this platform compatible with the six major brands of e-money
cards in Japan–Suica, the representative transportation-type smart
card, WAON, nanaco, Edy, QUICPay, and iD. In addition to being intro-
duced at all stores of electronics retailer Yodobashi Camera Co., Ltd.,
Thincacloud is realizing steady expansion in such ways as being
adopted in automatic check-in machines for All Nippon Airways
Co., Ltd., as well as at game arcades managed by Sega Entertainment
Co., Ltd. As we have completed the development phase for Thincacloud
and are finally reaching the phase for
sales expansion, we will actively pro-
mote efforts to increase sales in areas
that have yet to see a major introduc-
tion of e-money, such as at the retail
stores of small and medium-sized com-
panies situated primarily in more rural
areas as well as at amusement facilities.
In addition, we plan to undertake
initiatives to develop differentiated
IoT-related products and solutions that
leverage AI technologies. By doing so,
we will promote the creation of new
businesses in order to realize sustainable
growth going forward.
Develop New Solutions through the Combination of Information Management Know-How and Cutting-Edge Technology
Integration and Enhancement
The origins of the card and RFID solutions
of Toppan Forms lies in the Company’s busi-
ness forms with embedded magnetic
stripes that were often used for airline
boarding passes. These forms instilled a
desire in the Company to add even more
information to paper media digitally so that
the media can be easily linked with other
systems. The Company’s development of
magnetic ID cards that stored data for the
purposes of personal authentication derived
from this desire. As technology progressed,
we succeeded in developing not only these
magnetic ID cards but also contact IC
chip-in smart cards and non-contact type
smart cards. The technology we cultivated
for non-contact type smart cards has
allowed us to develop our RFID solutions.
While our products cover a wide range
of areas, they all share a common ground
in being vessels for containing information.
We aim to provide solutions that can store
and communicate information in an appro-
priate, secure, and speedy manner. To real-
ize this aim, we will focus our efforts on
creating new solutions while effectively
incorporating expertise and ideas from
partner companies and other organizations.
Masami NaruseOperating Officer,Business Division Manager of ICT Business Division
16 TOPPAN FORMS REPORT 2016
Business Performance in Fiscal 2016
In 2016, the year ended March 31, 2016,
sales in the Merchandise Business segment
rose 0.3% year on year, to ¥51.7 billion.
While we worked in our office supplies
operations to attract bulk purchasing proj-
ects using the online sales system
O-TASCARRY, sales decreased due to the
review of low-margin projects. Sales were
up in the office equipment-related business,
owing to our efforts to increase sales of
high-value-added products, such as equip-
ment geared toward local governments in
connection with the “My Number” national
identification system as well as a signage
solution that responds to the inbound
travellers needs of retail companies. With
respect to our system operation contract
business, sales rose as a result of an increase
in the number of new system operation
contracts, primarily from financial institutions
and IT companies, and the incorporation of
new projects.
Also, profitability improved on the oper-
ating income level for the Merchandise
Business segment, accompanying the rise in
sales of our high-value-added original prod-
ucts, the increase in the number of new
system operation contracts, and the
improvement in the prices of copy paper.
(Millions of yen)
Net Sales and Composition Ratio
18.9%
14 15 160
10,000
20,000
30,000
40,000
50,000
60,000
MERCHANDISE BUSINESS SEGMENTThe Merchandise Business segment handles a variety of services, from providing
customers with office supplies to the design, manufacture, sale, and maintenance
of peripherals and related devices in our business forms operations. In addition, this
segment also deals with such original products as temperature management
systems and processed film and label products.
Office Supplies
Office goods and supplies
Gift and novelty items
O-TASCARRY online sales system
Office Equipment-Related Business
Form processors
System devices
Security devices
Original Products
MechaCool temperature management system
Delivery materials
Processed films and labels
System Operation Contract Business
Development personnel dispatching services
Operations personnel dispatching services
REVIEW OF OPERATIONS
TOPPAN FORMS REPORT 2016 17
To improve profitability, which has been a recent issue, Toppan Forms
is implementing a wide variety of initiatives. With the completion of
our review of low-margin projects for office supplies, which we have
been undertaking until now, our next task is to review procurement
and delivery structures. In doing so, we will continue to work toward
achieving further improvements in profitability.
In addition, we are focusing our efforts on developing original
products with high added value. For example, with our high-
performance refrigerant MechaCool, we are developing new logistics
solutions that combine special packaging shaped in accordance
with the intended use of our customers and cloud-based tempera-
ture tracing systems that leverage RFID technology. We are being
approached by several companies both in Japan and overseas that
are showing interest in these solutions.
For the “My Number” national identifi-
cation number system introduced in
2015, we have developed and are now
selling PASiD, a product that signifi-
cantly simplifies the counter services of
local governments related to individual
number cards and individual number notification cards. One special
characteristic of PASiD is that it combines the three functions of
authenticity assessment, scanning, and printing into one machine.
PASiD has been receiving favorable reviews for its high level of per-
formance and has been introduced in more than 40% of local gov-
ernment offices nationwide.
Also, we expect to complete renewal work for our online sales
system O-TASCARRY, which we have been promoting since the previ-
ous fiscal year, in fiscal 2017. O-TASCARRY differs from conventional
online sales systems for office supplies in that it allows customers
to manage inventories, place additional orders for various printed
materials, and manage orders from vari-
ous locations all by themselves, thereby
simplifying the various procedures
related to making purchases. In our
renewal work, we have made efforts to
improve the convenience of O-TASCARRY
through the addition of new functions
and other means.
Going forward, we aim to realize sus-
tainable growth. To this end, we will
enhance profitability by strengthening
our relationship with customers
through O-TASCARRY and expanding
sales of original products with high
added value.
Realize a Highly Profitable Financial Structure through
the Provision of Original Products and Solutions
MERCHANDISE BUSINESS SEGMENT Leveraging Our Strengths in Our Growth Strategies
Integration and Enhancement
Toppan Forms began as a company that
engaged in the manufacture and sale of
business forms. Since its foundation, the
Company has worked to develop equip-
ment related to business forms that reduce
the burden of office work for its customers,
including detachers that can continuously
cut and sort business forms as well as sealers
that process its POSTEX sealed postcards.
With the aim of developing original prod-
ucts with even more added value, we are
leveraging the expertise and know-how
that we have cultivated in the mechatronics
domain and working Groupwide to bolster
our development and sales structures.
Specifically, through collaboration
between Toppan Forms, which oversees
product development, Techno Toppan
Forms Co., Ltd., which handles sales and
maintenance, and J-SCube Inc., which
undertakes the development and sale of
scanner equipment, we are moving ahead
with the continuous development of highly
competitive products. As an innovative
business pioneer, we will create new prod-
ucts that meet the needs of the generation
going forward.
Hiroshi ItoSenior Operating Officer,Business Division Manager of Merchandise Division
18 TOPPAN FORMS REPORT 2016
7.7 %
(Millions of yen)
0
5,000
10,000
15,000
20,000
25,000
14 15 16
Business Performance in Fiscal 2016
In fiscal 2016, the year ended March 31,
2016, sales in the Overseas Business seg-
ment rose 7.2% year on year, to ¥21.1
billion. The performance in the Merchandise
Business segment was poor due to the
impact of such factors as the review of low-
margin projects, primarily in Hong Kong.
However, in the Printing Business and ICT
Business segments, performance was strong
due to the positive impact of including Data
Products Toppan Forms Ltd. which has been
consolidated as a subsidiary. This positive
impact contributed to the increase in sales.
As for profitability, operating income in the
Overseas Business segment decreased due
to the impact of loans with default
possibility following the economic slow-
down in China.
In the Overseas Business segment, we handle a wide range of products and
solutions. In a similar fashion to our domestic businesses, these products and
solutions are not limited to the field of printing but include the fields of ICT
and merchandise as well.
Now that 10 countries of ASEAN have established the ASEAN
Economic Community (AEC), high levels of economic growth are
expected in Southeast Asia. Under these circumstances, Toppan Forms
will accelerate business growth overseas by implementing the follow-
ing three strategic initiatives.
The first initiative is to expand existing businesses. To steadily build
upon the results we have accomplished thus far, we will provide DPS
and BPO services with high added value in Hong Kong, Singapore,
Thailand, and other regions and elsewhere in Southeast Asia.
With a view to realizing medium-term growth, the second initia-
tive is to develop new businesses and cultivate new demand in
Net Sales and Composition Ratio
OVERSEAS BUSINESS SEGMENT
Leveraging Our Strengths in Our Growth Strategies
Printing Fields Business forms
DPS services
BPO services
Merchandise Fields
IT-related products
Distribution refrigeration systems
Enterprise resource planning (ERP) and other solutions-based software
ICT Fields Cards (cash cards, credit cards, transportation-related smart cards)
Card issuance systems (national identification cards)
RFID solutions
Toppan Forms (Hong Kong) Ltd. Data Products Toppan Forms Ltd.
REVIEW OF OPERATIONS
TOPPAN FORMS REPORT 2016 19
Drive Growth Overseas by Prioritizing
Local Business Development
regions in Southeast Asia where we have an established customer
base. Specifically, we will offer flexible services that meet the grow-
ing needs of existing customers, including information management
services that leverage ICT and data collection services that utilize
personal authentication technology through smart devices. In doing
so, we will work to actively incorporate new projects.
The third initiative is to expand our overseas business operations
into new regions of Southeast Asia. From a long-term perspective,
it is extremely important for us to expand into areas where we
have yet to establish a local presence if we are to realize future
growth. We aim to develop products and solutions in accordance
with the economic conditions of each country or region. For exam-
ple, in Indonesia, the Philippines, and Malaysia, three countries that
are seeing a rise in the middle class,
the use of loans and credit cards is
becoming more widespread. As such,
we will take steps to capture demand
for delivering notifications related to
loans and credit cards. For countries in
the Mekong region, such as Thailand
and Vietnam, where the establishment of infrastructure is flourish-
ing, we will provide infrastructure systems that process payments
via transportation-related smart cards and credit cards.
In addition, we are establishing an environment to promote
these strategic initiatives in such ways as establishing a new office
in Singapore and local branches in Thailand and Vietnam. By accu-
rately assessing the needs of local markets, we will steadily imple-
ment these three strategic initiatives amid constantly changing
economic conditions.
Integration and Enhancement
Soon after its establishment in 1965, Toppan
Forms established offices in Hong Kong
and Singapore and has been operating in
these countries for nearly 50 years. In that
time, the Company has built relationships
of trust with local companies and govern-
ments and has expanded original busi-
nesses deeply rooted in local communities.
These relationships and businesses
represent a strongpoint of our operations
in Hong Kong and Singapore.
Going forward, we will continue to
respect the independence of each Group
company as we aim to realize Groupwide
growth through the exchange of informa-
tion and business collaboration. To pro-
mote these efforts, we have increased the
number of personnel at our Tokyo Head
Office, which manages all Group compa-
nies overseas. We have also established a
division to support local businesses as well
as a division to unify fundamental business
aspects, such as quality and security.
Primarily through these two divisions, we
will work to support the growth of our
overseas subsidiaries.
Also, our brand power overseas is still
relatively weak, and only certain regions
are aware of the fact that we are a com-
pany that can provide various solutions as
an innovative business pioneer. However,
looking across the globe, our technologies
that handle both paper and digital media
have an extremely high level of competi-
tiveness. As such, we will provide appro-
priate services in accordance with the
economic development of Southeast Asia
as we aim “to become the unparalleled
No. 1 in personal information handling” in not
only Japan but also other countries in Asia.
Hayato HirabayashiOperating Officer, Business Division Manager of International Business Division
20 TOPPAN FORMS REPORT 2016
CORPORATE GOVERNANCE
Aiming to Realize Corporate Governance That Drives
Growth over the Medium to Long Term
Kyoichi HoriFull-time Corporate Auditor
Entering the Company in 1971, Mr. Hori worked in the Accounting
Division and the Internal Control Department before being
appointed to the position of corporate auditor in 2012.
Kazuko RudyOutside Director
In addition to lecturing as a market researcher at the Graduate School of Management,
Ritsumeikan University, Ms. Rudy serves as the vice president of The Japan Academic
Society of Direct Marketing and as an outside auditor at Seven & i Holdings Co., Ltd.
She was appointed as an outside director at Toppan Forms in 2015.
Hori | Since Toppan Forms was listed on the Tokyo Stock
Exchange in 1998, the Company has been undertaking various
reforms to its governance. One of the major reforms we have made
in recent years was the appointment of our first outside director, Ms.
Rudy, which has significantly changed the atmosphere at meetings
of the Board of Directors. With a heightened awareness of outside
perspectives, we have realized that some aspects of our business we
considered to be a matter of course are actually aspects on which
we should hold further deliberations after once again clarifying and
examining them. As a result, we have been focusing our discussions
on more substantial subjects, which I feel has undoubtedly intensi-
fied the debates we hold at the Board meetings. Japan’s Corporate
Governance Code, which was established in 2015, has adopted
“active deliberation” as one of its basic principles, and I believe that
the increased intensity of debate held by the Board derives from
that principle.
Rudy | I receive extremely detailed explanations on agenda items
prior to Board meetings, and I ask questions on anything that con-
cerns me in regard to the background and reason for an agenda
item’s proposal, including the sequence of events that led up to the
proposal. Through these kinds of questions, I can get a clear sense of
the way a company has developed from past to present as well as its
approach to the future. As such, I make sure that those providing me
with explanations prior to Board meetings take their time to thor-
oughly illustrate the agenda item to me. In the case that I disagree
with an agenda item, I often ask questions directly to the officers
attending the Board meetings who are responsible for the agenda
item. I will not hold deliberations or make a decision on an agenda
item if I have any remaining doubts concerning that item.
Toppan Forms has a clear-cut way of advancing its deliberations.
For example, after a decision is made on an investment, the progress
of that investment is continuously monitored to identify if there are
Promoting Governance That Reflects the Company’s Corporate Culture
TOPPAN FORMS REPORT 2016 21
Rudy | As an outside director, no matter how much I learn about
a company, it is difficult for me to form opinions from the same per-
spective as those who view the workplace on a day-to-day basis.
Given this situation, I place particular focus on verifying whether or
not a company’s monitoring functions are working properly from a
broad perspective. In corporate management, it is essential for moni-
toring functions to be working appropriately. Accordingly, I believe
that putting such functions in place allows a company to implement
new strategies for sustainable growth. One of my responsibilities as
an outside director is to solidify aspects of a strategy that will serve as
the strategy’s foundation.
Another one of my responsibilities is to provide the Company with
ideas and advice from a marketing perspective. While a company’s
internal directors are well-versed in the industry, that can sometimes
limit their ability to think outside the box. In such cases, I work con-
stantly to offer my input from a perspective that differs from that of a
company’s internal staff.
Hori | Ms. Rudy’s participation in Board of Directors’ meetings has
helped deepen the content of our deliberation. In a similar manner,
the presence of an outside director has worked to promote reforms
to the Company’s governance. Furthermore, in our deliberations, the
way in which we react to internal and external opinions differs. As
such, I would like to ask the outside directors to offer open-heartedly
their input from an objective perspective.
any discrepancies with the Company’s initial expectations. With the
lack of ambiguity in the various content of Board meetings, I get the
sense that the Board members share a clear and common goal.
Hori | Avoiding ambiguity in the various content of our delibera-
tions is something we have maintained a particularly high awareness
of over the past few years. In addition, we are placing more emphasis
on identifying risks. With the rapid changes in modern-day society, it
is becoming extremely difficult to make predications on what condi-
tions will be like even a few years down the road. When it comes to
promoting an agenda item, we work to clarify both the agenda item’s
long-term and relatively short-term risks. In doing so, we advance
deliberations in a way in which all members, both inside and outside,
can agree upon the final decision.
Rudy | I am of the understanding that Toppan Forms has actively
promoted innovations even before the establishment of Japan’s
Corporate Governance Code. With its experience in discovering new
markets on its own initiative as an innovative business pioneer, I
believe that Toppan Forms has in place a corporate culture that does
not fear new challenges or changes. Amid the strong trend of
Japanese companies to adhere strictly to a conservative approach,
I believe that Toppan Forms possesses outstanding qualities as an
innovative corporation.
Another important characteristic of the Company is the extremely
open and transparent corporate culture it has forged. When we talk
about corporate governance, this kind of corporate culture is abso-
lutely essential. My experience working as a consultant with a wide
variety of companies has shown me that, if a company has an encour-
aging atmosphere for employees to voice their opinions, then that
company typically has an in-house environment where monitoring
functions work efficiently.
Hori | I am very happy to hear that Ms. Rudy, with her outside per-
spective, feels that way about our corporate culture. Our corporate
DNA, which helped foster this corporate culture, has been gradually
passed on since the time of the Company’s founding. I believe we can
pass on this DNA in an even better form going forward by intertwin-
ing it with our corporate governance system.
Fulfilling the Role of Outside Director
Continually Transforming Our Corporate GovernanceHori | Improving the efficiency of the Board of Directors is a cru-
cial management task. Until now, the Articles of Incorporation have
stipulated that the Board shall not exceed 23 members. However,
we have changed that limit to 15. In actuality, we reduced the total
number of directors from 15 to 11 in June 2016. In accompaniment
with this reduction, we lowered the percentage of directors who
also work as executive officers. Going forward, we must accelerate
these kinds of efforts to separate the roles of management and
business execution.
Rudy | While discussion is often held on the appropriate number
of outside directors for a company, determining a number in a purely
superficial manner is not something a company should pursue. In
addition, future trends in the management policies of corporations
will result in increases in the numbers of female and foreign directors.
Amid the reduction of board members and the acceleration of efforts
to separate the roles of management and business execution, it is
important for the Board of Directors at Toppan Forms to promote
debate that gives ample consideration toward the future direction
and prospects of the Company, without focusing too much on
outside appearances.
Hori | I agree with Ms. Rudy. With a large number of directors,
simply debating an agenda item in detail consumes so much time
that we are unable to analyze future market trends and determine
crucial management strategies. To avoid this problem, it is absolutely
essential to reduce the number of directors while also promoting the
transfer of authority. These kinds of efforts are not something that
produce results quickly, and we as a company still have many issues
to tackle in regard to strengthening our governance. As such, we will
continue to deliberate ways to improve the current state of our man-
agerial ranks and Board of Directors as we promote further innova-
tions going forward.
22 TOPPAN FORMS REPORT 2016
CORPORATE GOVERNANCE
Toppan Forms places the establishment and maintenance of a strong corporate governance system, the system
through which all aspects of business operations are monitored and executed, among its top management priorities,
as this system is essential in improving both corporate value and shareholder value.
Corporate Governance System
The Board of Directors comprises 11 members, with two of the
members being outside directors. As a general rule, meetings of the
Board of Directors are held on a monthly basis and on an extraordi-
nary basis as necessary. At these meetings, agenda items are deliber-
ated on in a time-efficient and appropriate manner. In addition to
Board of Directors’ meetings, the Company periodically holds
Management Meetings, where important management issues are
discussed, and Executive Committee meetings, where information
regarding business strategies are shared and discussed. Through this
system, the Company works to ensure that management decisions
are made in an expedient manner and business operations are con-
ducted efficiently. With a position that is independent from the Company’s manage-ment, the independent outside directors offer the Company appro-priate advice based on their individual expertise in regard to
realizing sustainable growth and improving the Company’s corpo-rate value over the medium to long term. At the same time, these directors monitor the Company’s management by holding delibera-tions and passing resolutions at Board of Directors’ meetings. In addition to having independent outside directors attend Board meetings, the Company works to provide the outside directors with ample opportunities to regularly exchange opinions with its man-agement, including the president and representative director, as well as the Board of Corporate Auditors, which includes outside corporate auditors. Furthermore, Toppan Forms has elected to operate as a company with a Board of Corporate Auditors. Through its four members, of whom two are outside corporate auditors and one is a full-time auditor, the Board of Corporate Auditors carries out various auditing activities. The corporate auditors attend important meetings, includ-ing Board of Directors’ meetings, and conduct audits of principal business sites and subsidiaries. In addition, the corporate auditors closely monitor the business execution of directors.
Corporate Governance Basic Policy
Toppan Forms established and disclosed the Corporate Governance Basic Policy in November 2015, which aims to explain to share-
holders and other investors the Company’s basic approach and the status of initiatives related to corporate governance as well as the
Company’s response to Japan’s Corporate Governance Code. Details of this policy can be found in the Corporate Governance Report*
and on our corporate website.
http://www.toppan-f.co.jp/english/ir/governance.html* Corporate Governance Report is in Japanese only
Outside Officer Attendance at Board of Directors’ and Board of Corporate Auditors’ Meetings Held in Fiscal 2016
Outside Directors Board of Directors Board of Corporate Auditors
Kazuko Rudy 11 / 11*1 —
Hideki Amano —*2 —*2
Outside Auditors
Noriaki Kinoshita 14 / 15 13 / 13
Kunio Sakuma 13 / 15 11 / 13
Akiko Obata 11 / 11*1 8 / 8*1
*1 Newly appointed on June 26, 2015
*2 Newly appointed on July 1, 2016
URL
TOPPAN FORMS REPORT 2016 23
Accounting AuditorCPA
Auditing
Reporting
Instruction/Education
Auditing
Auditing
Auditing Auditing
Cooperation
Division DirectorsOperating O�cer
Auditing O�ce
Operating Divisions
Group CompaniesInternal Reporting SystemCorporate Ethics Hotline
Management Meeting
General Meeting of Shareholders
Company-wide Risk ManagementCommittee
Individual Risk ManagementCommittees at each Operating
Division and Subsidiary
Board of Corporate AuditorsBoard of Directors
Supervision
Emergency ResponseHeadquarters
Representative Director
Cooperation
Appointment/Dismissal
Appointment/Dismissal
Appointment/Dismissal
Appointment/Dismissal
Director Responsible forRisk Management
Speci�c Risk ManagementCommittees
Nomination andRemuneration Committee
Appointment of Directors and Corporate Auditors
Toppan Forms appoints candidates for director and corporate audi-tor who possess a level of knowledge, experience, and capability that will enable them to conduct management or auditing duties in an appropriate, equitable, and efficient manner. Outside directors and outside corporate auditors are appointed from candidates who possess extensive experience and insight in business administration, compliance, internal controls, accounting, and other fields and who are deemed to be independent from the management of the Company. Based on this policy, candidates for director and corporate auditor are determined by the Board of Directors. In addition, the Company discloses the reasons for the appointment of candidates for directors and corporate auditors in reference materials for the General Meeting of Shareholders at the time of appointment. In order to secure a higher level of transparency in the appoint-ment of these candidates, the Company has established an advisory committee for director nomination and remuneration. This committee holds deliberations regarding director nomination and
remuneration and reports the results to the Board of Directors. The committee also includes outside directors and outside corporate auditors.
Basic Policy for Director Remuneration
The remuneration of directors comprises a fixed compensation based on director position and a performance-based compensation decided through consideration of the director’s level of contribution to business performance. Both the fixed and performance-based amounts are paid within a compensation framework determined by resolution at the General Meeting of Shareholders. In addition, in order to enhance incentives for long-term, performance-linked com-pensation, a determined amount of the fixed monthly remuneration for full-time directors is set aside for the purpose of acquiring the Company’s shares, thereby aligning the interests of full-time direc-tors with shareholders. The amount set aside is then allocated to the purchase of the Company’s shares through the Toppan Forms Directors Shareholding Association.
Corporate Governance System
Amount of Remuneration Paid to Directors and Corporate Auditors (Fiscal 2016)
Subject of Remuneration Number of People Remuneration Amount
Directors (Outside directors) 17(1) ¥481 million (¥5 million)
Corporate auditors (Outside corporate auditors) 4(3) ¥33 million (¥18 million)
Total (Outside directors and corporate auditors) 21(4) ¥514 million (¥23 million)
24 TOPPAN FORMS REPORT 2016
Board of Directors’ Effectiveness and Evaluation
The Company is working to enhance the effectiveness of delibera-
tions by the Board of Directors through the clarification of issues,
challenges, and risks, as well as relevant countermeasures, at
Management Meetings held by management executives prior to
holding deliberations at the Board meetings. In order to facilitate
smooth and lively discussions by the Board of Directors and to
ensure that an issue is thoroughly examined, the Company distrib-
utes Board of Director materials prior to Board meetings. In particu-
lar, the Company explains in advance the content of the Board
meetings to outside directors and outside corporate auditors.
Directors ask related departments to provide information neces-
sary for the performance of duties, and these departments provide
such information to the directors in an appropriate manner. Outside
professionals provide advice to directors as necessary. Furthermore,
directors receive regular reports on management conditions, which
they use to ensure appropriate risk management and conduct over-
sight of business execution. The Corporate Planning Department,
serving as the administrative office of the Board of Directors, sup-
ports directors in the performance of their duties.
For evaluating the effectiveness of the Board of Directors, the
Company has all of its directors and corporate auditors conduct a
self-assessment once a year regarding the Board of Directors’ struc-
ture and management as well as the content of the Board’s
deliberations. The Board of Directors then holds debates based on
the reported results of these self-assessments. An overview of the
evaluation of the Board’s effectiveness is included in the Corporate
Governance Report.
Support Structures for Directors and Corporate Auditors
The Company conducts training with a focus on compliance to
provide newly appointed directors with the opportunity to acquire
necessary knowledge as well as to understand their roles and
responsibilities. Following their appointment, directors participate
in a variety of training and are afforded opportunities for interaction
with outside personnel in order to acquire new knowledge and
enhance their ability to respond to changes in the operating
environment. At the same time, the Company conducts an annual
training session in which all directors participate, providing an
opportunity for directors to develop their management competency
and pursue mutual self-improvement.
The Company’s corporate auditors participate in external training
sessions and network meetings aimed at enhancing their ability to
respond to changes in the auditing environment and at encouraging
self-improvement. In this way, the Company makes concerted efforts
to provide corporate auditors with opportunities to acquire the
knowledge necessary to work as an auditor as well as promote their
understanding of individual roles and responsibilities.
Independence from Parent Company
TOPPAN PRINTING CO., LTD., is the parent company of Toppan Forms,
possessing 60.74% of the Company’s voting rights as of March 31,
2016. Toppan Forms has used the original business know-how and
technologies it possesses to establish a solid, independent business
foundation. Toppan Forms does not maintain either a debtor–creditor
relationship, a guarantor–guarantee relationship, or a licensor–
licensee relationship with the parent company. Moreover, only one
Company director holds a position concurrently with the parent
company, and only a small number of employees are transferred
between Toppan Forms and the parent company. For these reasons,
Toppan Forms maintains independence in its business operations,
although sharing its corporate philosophy with that of the parent
company.
Furthermore, while the Company shares an order-receiving rela-
tionship with the parent company for some products and services,
this does not constitute a significant percentage of the Company’s
business. When such transactions occur, however, they are carried
out in a fair, appropriate manner, on conditions similar to those of
regular business transactions. In addition, the Company takes heed
to ensure that these transactions are not conducted with biased
judgment. Going forward, the Company will continue to ensure its
independence from the parent company. The Company will also
continue to make appropriate judgments regarding transactions
with the parent company to prevent the interests of the Company’s
minority shareholders from being unjustly impaired.
IR-Related Activities
Toppan Forms understands the importance of communicating cor-
porate and business management information to its shareholders,
other investors, and other stakeholders. In order to disclose appro-
priate information to our stakeholders in a timely manner, our
IR-specialist staff, who support the members of our top manage-
ment as well as department managers, engage in numerous IR
activities.
Within these daily IR activities, the Public Relations Department
acts as a point of contact with stakeholders. Through cooperation
between our IR-specialist staff and the IR Committee, which com-
prises the Corporate Planning Department, the General Affairs
Department, the Finance Department, and the Public Relations
Department, we work to disclose information in a way that is easy to
understand for a large number of stakeholders, who are recipients of
such information. Furthermore, we conduct visits by senior manage-
ment to overseas investors in the United States and countries in
Europe and Asia at least once a year, in principle, based on the
shareholder composition.
The opinions, questions, and other useful information we receive
through this kind of dialogue with our stakeholders are reported to
management in a timely and appropriate manner, where the infor-
mation is subsequently leveraged in the revision of management
strategies and other areas.
CORPORATE GOVERNANCE
TOPPAN FORMS REPORT 2016 25
Compliance
In order to better incorporate compliance and corporate ethics
into its daily business operations, the Company has developed the
Toppan Forms Group Action Guidelines, and it is working to dissemi-
nate awareness and advance the implementation of these guidelines
throughout the Company.
With the goal of cultivating a compliance-based mindset in daily
business operations, the Legal Department is spearheading numer-
ous compliance-related training and education programs. Further,
compliance promotion representatives and compliance promotion
leaders have been established at each business site to help support
employees in practicing good compliance. We are also educating
employees at overseas Group companies with regard to the Toppan
Forms Group Action Guidelines in order to further the dissemination
of these guidelines throughout the Toppan Forms Group.
Also, we have set up the “corporate ethics hotline” to act as an
internal reporting system. With this hotline, we have established two
points of contact to which matters can be reported: the Company’s
Legal Department and an external law firm. In addition, internal
regulations stipulate that informants are provided with appropriate
protection to ensure that they do not suffer prejudicial treatment.
Risk Management
The Company has developed a comprehensive risk management
system to identify risks and to respond to them in an appropriate
way should they arise. Risk management is primarily handled by
five specific risk management committees that work under the
Company-wide Risk Management Committee, which is chaired by
the director responsible for risk management, to manage major
risk exposure throughout the Group. These committees are the
Company-wide Information Security Committee, the BCM Promotion
Committee, the Quality Committee, the Company-wide
Environmental Promotion Committee, and the Compliance
Committee. Additionally, individual risk management committees
have been established in each operating division and at each
subsidiary. These bodies work together in conducting risk manage-
ment activities.
Further, in response to the Japanese government (the Cabinet
Office, the Ministry of Economy, Trade and Industry), as well as cus-
tomers, prompting companies to formulate BCPs in the event of an
earthquake or other natural disaster, the social necessity to establish
business continuity management (BCM) systems is rising. Against
this background, in 2010, Toppan Forms took the lead over other
companies in the industry and acquired the BS (British Standard)
25999-2 standard, which was the global standard in BCM at the time.
Based on this standard, the ISO 22301 and JISQ 22301 standards
were developed, being issued in 2012 and 2013, respectively. In
December 2013, Toppan Forms became the first company in the
industry to acquire certification for JISQ standard.
Information Security
The Data Print Services (DPS) business is one of the Company’s core
businesses. In this business, we are entrusted by our customers with
sensitive information, including personal information. We, therefore,
realize that proper information management is not only necessary in
order to maintain the trust of our customers, but it is also an impor-
tant element of our responsibility toward society.
The Company has subsequently established the Basic Principles
for Information Security and the Personal Information Protection
Policy. Moreover, we have developed the Information Security
Guidelines with the aim of reconciling the differing levels of informa-
tion security awareness among Group companies and operating
divisions. In addition, we are subsequently developing a uniform
information security level throughout the Group. Through these
efforts, we are developing information security systems that are best
suited to Toppan Forms, the industry’s leading company. We are also
actively acquiring certification from external organizations. Currently,
three Group companies have received ISO 27001 certification, while
12 Group companies have received PrivacyMark certification.
Main IR-Related Activities
Activities Details
Presentations for analysts and institutional investors Twice a year
Presentations for overseas investors One to three times a year, president or chief financial officer conducts individual
meetings with overseas investors to explain business performance
Factory tours for investors Three times a year
Disclosure of IR-related materials Multiple times throughout the year through summaries of financial results, securities reports, annual reports, shareholder newsletters, and presentation materials from briefings on financial results
Establishment of dedicated IR office Part of Public Relations Department
26 TOPPAN FORMS REPORT 2016
BOARD OF DIRECTORSAs of July 1, 2016
1 5
2
3
4
Chairman & CEOShu Sakurai
President & COOKoichi Sakata
Board of Directors
Senior Managing DirectorsToshiro Masuda
Akira Kameyama
Managing DirectorsKenichi Fukushima
Mitsuyuki Hamada6
4
8
1514
12
13
2 613
91011
5
7
TOPPAN FORMS REPORT 2016 27
8
9
14
15
DirectorsNaoki Adachi
Kazuko Rudy*1
Hideki Amano*1
Kyoichi Hori*2
Noriaki Kinoshita*3
Board of Corporate Auditors
*1 Outside director
*2 Full-time corporate auditor
*3 Outside corporate auditor
7 Keitaro Fukushima
Yasuhiro Okada
Kunio Sakuma
Akiko Obata*311
10 12
13
28 TOPPAN FORMS REPORT 2016
RESEARCH AND DEVELOPMENT
Overview of Research and Development
The research and development (R&D) activities of Toppan Forms
were originally centered on materials and manufacturing machinery
technologies related to printed paper forms. However, over time,
the Company expanded the scope of its R&D activities to cover a
broader range of R&D domains in response to a variety of changes
in the external environment. These changes included a rise in the
volume of information being exchanged and the emergence of new
communication methods, which followed the advent of computer-
ization and the increase of logistics services, as well as the diversifi-
cation of customer needs.
The Central Research Center of Toppan Forms was established in
1971 inside the Hino Plant, which was then the Company’s main
plant. At that time, the domain that we focused our R&D activities on
was mechatronics, which helped enable us to respond to the
increasingly complex methods and processes for printing paper
forms, including developing paper form materials and the high-per-
formance manufacturing machinery to handle such printed paper
forms. Aiming for an optimal lineup of forms for the various uses of
each customer, such as forms for transportation slips and aircraft
boarding passes, we engaged in R&D activities that drew on our
wealth of technologies and expertise. After dissolving our capital
alliance with Moore Corporation, we began to carry out R&D activi-
ties in fields related not only to paper media but also to ICT in the
latter half of the 1990s. Today, we are making efforts in R&D domains
that deal with our Merchandise Business segment, including the
development of high-performance refrigerants. While the scope of
our R&D activities has expanded to meet the changing needs of the
market, the essence of these activities—to provide products and
Contributing to the Growth of Toppan Forms through an Efficient R&D Structure That Focuses on Both the Medium Term and the Long Term
R&D Structure That Promotes Collaboration among Business Segments
One special characteristic of the Toppan Forms R&D structure is the concept of placing on-site operations first. The Company’s operations are divided into the four business segments of Printing, ICT, Merchandise, and Overseas, which means that the range of R&D domains in which the Company must engage is extensive. Our researchers are actively involved in marketing and factory operations and cooperate with the Sales, Factory, Sales Promotion, and other departments. When necessary, our researchers attend meetings with customers to directly exchange opin-ions. These efforts by our researchers help us to steadily capture market demand and respond promptly to subtle changes in product manufac-turing and design. Accordingly, our researchers provide the driving force behind the development of proposal-based solutions centered on high-value-added products and solutions that only Toppan Forms can provide. Moreover, the concept of placing on-site operations first helps us to improve not only the efficiency of our R&D activities but also our levels of customer satisfaction.
Mizuhiro TaniOperating Officer,Center Manager of Central Research Center
TOPPAN FORMS REPORT 2016 29
Initiatives for New Business Creation from a Medium-to-Long-Term Perspective
Over the 45-year history of our Central Research Center, we have created a wide variety of products that have been ahead of their time. Examples of these products include our POSTEX sealed post cards and our paper for copy slips that use microcapsule ink. By leveraging the experience and expertise we have long cultivated, our R&D activities help contribute to the Company’s future growth. At the moment, we are promoting product development in the field of industrial materials using microcapsule technology, which represents a core technology of Toppan Forms. Furthermore, we are moving forward with product development related to printed electronics that leverage the Company’s patented “silver salt ink” technology. While the products generated through both these development efforts are still in the test marketing stage, we have already been receiving favorable reviews from customers. As such, we aim to promptly develop and commercialize these products so that they may become the next mainstay products of the Company. In addition, we are taking steps to create new businesses through cooperation with external institutions, including collaborative development with the New Energy and Industrial Technology Development Organization. We report the selected research themes and the status of progress to the Company’s managerial ranks once a year. Also, we promote our R&D activi-ties while investigating and verifying relevant market needs and scale regarding a particular product, thereby realizing a high level of efficiency.
solutions centered on information—has remained unchanged since
our foundation.
Going forward, we will work to establish next-generation de facto
standards through the development of ground-breaking products
and solutions that will drive growth for the Company over the
medium to long term.
Organizational Structure of the Central Research Center
At the Central Research Center, we primarily conduct R&D activities
centered on materials and components. With a staff of approxi-
mately 50 researchers, these activities are carried out from a
medium-to-long-term perspective.
Efforts to Connect Our Technological Capabilities with Future Growth
With regard to future R&D activities, we believe there are three major issues that we must address. The first issue is the creation of new research themes. We strongly feel that there is a necessity for new products and solutions that will not only help extend our current R&D activities but also provide a pillar for future growth. The second issue is the development of human resources who can demonstrate strong leadership skills. As we currently have a group of primarily young employees that are ambitiously conducting research, we will work to develop human resources who can take on management positions to properly lead this group. The third issue is greater Company-wide collaboration among all R&D-related departments. With the Central Research Center acting as the foundation, we will make efforts to efficiently advance research at the center, product development in each operating division, and technological innovation at our factories. In doing so, we will strengthen collaboration Companywide. Toppan Forms is in the middle of making a significant transition from a company that manufactures business forms to a company that provides proposal-based solutions related to information services. Throughout this period of transition, we will undertake R&D initiatives to create new value while consistently listening to the opinions of our customers.
• Next-Generation Product Development Division
• Existing Business Supportive Development Division
• Research Theme Investigation and Planning Division
Factory
Sales
Sales promotion
Group companies and other institutions
Corporate staff
Central Research Center—Cooperating with Each Business Division to Promote Research
Central Research Center
30 TOPPAN FORMS REPORT 2016
Promoting the Creation of a Work Environment Where Each Employee Plays an Active Role
Basic Approach to Human Resources
Guided by its management philosophy “san-eki ichijo,” Toppan Forms
works to fulfill its mission as an innovative business pioneer. While
playing a vital role in resolving the issues facing our customers, we
aspire to be a company that is filled with employees of strong charac-
ter as well as a company that fulfills its responsibility as a member of
society. We have adopted the concepts of “diversity and integration”
as part of our management strategies and are advancing initiatives
aimed at maximizing results through the assembly of a diverse group
of human resources. As the business forms market in Japan continues
to gradually contract and economic conditions in China and other
Asian countries remain unclear, we currently face a less-than-desirable
operating environment. Under these circumstances, the development
of high-quality human resources, in addition to efforts to solidify our
financial base and improve our technological capabilities, is extremely
important in realizing sustainable growth for the Company.
Accordingly, we are working continuously to enhance the indi-
vidual capabilities of our personnel in a variety of ways while
making revisions to our approach when necessary. For example,
we are undertaking initiatives to create an environment where a
diverse group of personnel can play an active role in a wide range
of fields and conduct training tailored to each employee’s position
as well as career development training. In addition, we provide
financial assistance to employees to help them better develop
themselves professionally through self-study and implement
compliance training.
We will continue to promote the development of high-quality
human resources in a manner that best suits each employee and
takes into consideration individual career stages. In doing so, we will
grow to be a company that can respond swiftly to the various
changes occurring in the operating environment.
Aiming to Realize “Diversity and Integration” by Reforming the Way We Work
We have recruited and developed the necessary human resources to grow to be a company that can respond to the changes in the operating environment, which is becoming ever more sophisticated and complex, and established a work environment in which these human resources can actively participate. In 2006, we began promoting active roles for female employees. Since then, the percentage of female employees, as well as females in managerial positions, has been improving thanks to the detailed employment system we have in place. Also, with the increase in the number of families where both parents work, we have expanded our system for childcare leave to cover male employees with children and improved the ratio of employees taking childcare leave. In these ways, we have steadily established systems that can respond to changes in the workplace. As for our efforts to promote active roles for middle-aged and older employees, we have established a personnel system that allows employees who have reached the retirement age of 60 to continue their career in a managerial position. This system allows us to continue to draw on the long-cultivated experience and personal connections of older employees in our business operations. In addition, we are actively promoting the employment of people with disabilities through various means, including the deployment of personnel, such as psychiatric social workers and job coaches, to offer support to employees. In recognition of our efforts, we were certified as an “Excellent Company Employing People with Mental Disabilities, etc.” by Japan’s Ministry of Health, Labour and Welfare in March 2016. Without being satisfied with the status quo, we will continue to voluntarily reform the way we work as we aim to become a company where each employee can work with a sense of purpose.
HUMAN RESOURCES
Michiyo TerakamiGeneral Manager of General Affairs Department and Diversity Promotion Department,General Affairs Division
TOPPAN FORMS REPORT 2016 31
CORPORATE SOCIAL RESPONSIBILITY
Basic Approach to CSR
At Toppan Forms, we conduct business activities under our manage-
ment philosophy of “san-eki ichijo,” enabling us to exist in harmony
with stakeholders, the environment, and society as a whole through
mutually beneficial relationships, which provides the foundation to
continue to pursue sustainable growth. Since our establishment, our
business environment has undergone dramatic change. However,
despite this change, the Company’s pursuit of corporate benefits at
the same time as pursuing individual and societal benefits under
“san-eki ichijo” has remained unchanged. We believe that “san-eki
ichijo” reflects the type of corporate social responsibility (CSR) that
society expects us to practice. Going forward, we will therefore con-
tinue to fulfill our social responsibility by conducting business activities
under our management philosophy that are constantly in tune with
stakeholders, the environment, and society as a whole.
Policy on Environmental Management
Toppan Forms has established the Basic Environmental Principle and
Policies based on its management philosophy of “san-eki ichijo.”
Guided by these, the Company is engaging in various activities
related to the preservation of the environment.
CSR Procurement Standard
Toppan Forms has also established the CSR Procurement Standards
under the Toppan Forms CSR Procurement Guidelines. In cooperation
with its business partners (raw material, equipment, and product sup-
pliers; manufacturing and processing outsourcing companies), we are
taking the initiative in CSR-based procurement. We request that our
business partners abide by the CSR Procurement Guidelines, while we
also strictly abide by the guidelines throughout the Company. Through
cooperation with our business partners, we are promoting CSR initia-
tives across the supply chain. In this way, Toppan Forms aims to
improve corporate value for both itself and its business partners. We
believe that the underlying conditions for our business partners to
conduct transactions with the Company are an understanding and
appreciation of the aims of CSR-based procurement and adhering to
the CSR Procurement Standards.
Basic Environmental Principle
Toppan Forms recognizes the fact that environmental
preservation is an important issue which is shared by all
humans, and in order to ful�ll our social responsibility as a
corporation, we will continue to implement the appropriate
measures, involving our entire company.
Policies
1. “Protect the environment, and elevate employee awareness levels”
2. “Promote the conservation of resources and energy, and recycling”
3. “Comply with legislation”
4. “Reduce waste materials and prevent environmental pollution”
5. “Develop and sell green products”
6. “Support biodiversity”
More information about our CSR activities is available on our corporate website http://www.toppan-f.co.jp/english/csr/index.html
Promoting Nine CSR Themes
Customers• Assurance of product and service quality
and safety• Provision of products and services that
contribute to resolution of social issues
Shareholders and other investors• Fair and impartial disclosure of information
Business partners• Creation of a reliable supply chain
Employees• Respect for and utilization of human resources
• Adherence to laws and corporate ethics
• Pursuit of effective risk management
• Support of environmental preservation
Communities and society at large• Contribution to communities and society at large
“San-eki ichijo”
FINANCIAL SECTION33 Financial Review
36 Consolidated Balance Sheets
38 Consolidated Statements of Income
39 Consolidated Statements of Comprehensive Income
40 Consolidated Statements of Changes in Net Assets
42 Consolidated Statements of Cash Flows
43 Notes to Consolidated Financial Statements
61 Independent Auditor’s Report
This integrated report presents Toppan Forms’ operations in four business segments to re�ect the actual conditions of the Company’s business activities. For account-ing purposes, the Financial Review section divides the Company’s business into two segments.
32 TOPPAN FORMS REPORT 2016
TOPPAN FORMS REPORT 2016 33
12 151413 16
320
240
160
80
0
80.0
75.0
70.0
65.0
0
Net Sales Cost of Sales Ratio (right)
17.0
16.0
15.0
14.0
012 151413 16
20
15
10
5
0
6.0
5.0
4.0
3.0
012 151413 16
Operating IncomeOperating Income Margin (right)
Net Sales / Cost of Sales Ratio(Billions of yen) (%)
SG&A Expenses Ratio
(%)
Operating Income / Operating Income Margin(Billions of yen) (%)
Operating EnvironmentIn �scal 2016, the year ended March 31, 2016, although there was
sustained demand for outsourcing in connection with the “My
Number” national identi�cation system, the operating environment
for the business forms industry, remained di�cult due primarily to
rising costs related to raw materials, personnel, and logistics, as well
as lower prices resulting from consistent corporate e�orts to reduce
costs and develop IT and networks. At the same time, information
security measures took on greater importance, partly because of the
successive incidents of personal information leaks at public entities
and other organizations.
In this business environment, the Toppan Forms Group (the
“Group”) aimed to achieve sustainable growth by stepping up e�orts
to increase the number of business process outsourcing (BPO) con-
tracts centered on data print services (DPS) and worked to enhance
its production bases, including the Hino Center. The Group also
focused its e�orts on the expansion of new businesses, including its
own original solution that combines print media and IT, as well as an
e-money payment platform that such clients as a large consumer
electronics store, an airline company, and a company in the amusement
industry have decided to introduce.
Outside Japan, the Group strengthened its alliance with Data
Products Toppan Forms Ltd. (DPTF) in Thailand, which was made a
consolidated subsidiary, while focusing on the in-depth cultivation of
such markets as Hong Kong and Singapore.
In addition, the Group promoted further cost reduction in
manufacturing, mainly through the e�ect of integrating aggregated
manufacturing bases and improving productivity, in order to
strengthen pro�tability. The Group also worked toward business
innovation and improved earnings by aggressively investing in IT.
Income and ExpensesIn �scal 2016, net sales increased 2.8% year on year, to ¥273.2 billion
($2,425 million).
By segment, sales in the Printing Business rose 4.2% year on
year, to ¥212.9 billion ($1,889 million). Speci�cally, for business forms,
the Company o�ered plans and proposals for blanket contracts to
undertake work related to the procurement and management of
printed materials, centering on forms. In addition, the Company
promoted proposals to improve printed materials using scienti�c
approaches. Despite these e�orts, sales of business forms were down
1.5%, to ¥73.8 billion ($655 million), due largely to the e�ects of
reduced demand brought about by the spread of digitalization, the
decline in delivery slip volume, and the drop in unit prices following
increasingly simple orders from customers.
In our DPS operations, sales increased 6.8%, to ¥119.5 billion
($1,060 million), despite a decrease in volume that accompanied e�orts
by corporations to reduce costs and a declining demand in direct mail
for sales proposals. This increase was attributable primarily to solid
growth in contracts for blanket outsourcing of printing operations and
BPO, mainly from public o�ces, municipalities, and �nancial institu-
tions, in addition to the Company’s e�orts to capture demand for
personal printing materials that leverage digital printing technologies.
Turning to our ICT operations, sales were up 12.2%, to ¥19.6
billion ($174 million). This increase was due to the fact that such
positive factors as the inclusion of DPTF into the scope of consolidation,
FINANCIAL REVIEWToppan Forms Co., Ltd. and Consolidated Subsidiaries
34 TOPPAN FORMS REPORT 2016
240
180
120
60
0
8.0
6.0
4.0
2.0
0
Total Assets ROA (right)
12 151413 16
200
150
100
50
0
12.0
9.0
6.0
3.0
0
Total Net Assets ROE (right)
12 151413 16
Pro�t Attributable to Owners of Parent / Net Income per Share
(Billions of yen) (Yen)
Total Assets / ROA
(Billions of yen) (%)
Total Net Assets / ROE
(Billions of yen) (%)Billions of Yen
12
9
6
3
0
Yen
120
90
60
30
0
Pro�t Attributable to Owners of ParentNet Income per Share (right)
12 151413 16
the solid domestic demand for point cards and ID cards, and the
increased sales of solutions that utilize smartphones o�set negative
factors, including the decline in orders for RFID tags in the wake of
the completion of projects to change frequency bands in accordance
with revisions to the Radio Act.
Despite the adverse e�ects from the decline in sales of business
forms, pro�ts rose following the increase in sales in other areas. In
addition, the Company made thorough e�orts to reduce manufactur-
ing costs through such means as improving production e�ciency by
promoting mechanization and systematization. As a result, pro�t-
ability improved at the operationg income level.
Sales in the Merchandise Business fell 2.0% year on year, to
¥60.4 billion ($536 million). Speci�cally, sales of o�ce supplies prod-
ucts decreased due to the review of low-margin projects, despite the
Company’s e�orts to promote sales of developed products, such as
high-performance refrigerants geared toward the transport, distribu-
tion, and pharmaceutical industries, and to attract bulk purchasing
projects using the online sales system O-TASCARRY.
Sales were down in the o�ce equipment-related business as
well, owing to the review of low-margin projects primarily in Hong
Kong. The negative impact of this review o�set e�orts to increase
sales of high-value-added products, such as equipment geared
toward local governments related to the “My Number” national
identi�cation system as well as a signage solution that responds to
the inbound needs of retail companies.
With respect to the system operation contract business, sales
rose year on year as a result of the increase in the number of new
system operation contracts, primarily from �nancial institutions and
IT companies, and the incorporation of new projects.
Cost of sales rose 1.6%, to ¥215.2 billion ($1,910 million), follow-
ing the increase in net sales. The cost of sales ratio edged down 0.9
percentage points, to 78.8%. As a result, gross pro�t increased 7.4%,
to ¥58.0 billion ($515 million).
Selling, general and administrative (SG&A) expenses increased
7.1%, to ¥44.3 billion ($393 million). The SG&A expenses ratio edged
up 0.7 percentage points, to 16.2%. As a result, operating income rose
8.5%, to ¥13.7 billion ($121 million), and the operating income margin
increased 0.3 percentage points, to 5.0%.
The balance of other income and expenses for �scal 2016 was
income of ¥0.9 billion ($8 million), compared with income of ¥0.6
billion in the previous �scal year. Income before income taxes in-
creased 10.9%, to ¥14.6 billion ($130 million), and pro�t attributable
to owners of parent rose 19.5%, to ¥9.4 billion ($83 million).
Net income per share amounted to ¥84.33 ($0.75), which was
higher than ¥70.59 recorded in the previous �scal year. In addition,
return on shareholders’ equity (ROE) rose from 5.0% to 5.8%, and re-
turn on assets (ROA) increased from 3.5% to 4.1%.
TOPPAN FORMS REPORT 2016 35
Dividend PolicyToppan Forms encourages the medium-to-long-term holding of
Company stock on the basis of maintaining a consistent level of
dividends while also taking into account operating performance
and the dividend payout ratio. In �scal 2016, the amount for annual
dividends was ¥25.00 per share ($0.22), while the consolidated
dividend payout ratio was 29.6%.
Capital Expenditure / DepreciationCapital expenditure, primarily directed toward production facilities,
increased ¥1.3 billion year on year, to ¥7.6 billion ($67 million).
Depreciation was ¥9.2 billion ($81 million), up ¥0.5 billion year on year.
Financial PositionAt the �scal 2016 year-end, total current assets stood at ¥128.3 billion
($1,139 million), up ¥6.7 billion compared with the previous �scal
year-end. Total current liabilities were ¥56.0 billion ($497 million), up
¥0.4 billion. As a result, working capital climbed ¥6.3 billion, to ¥72.3
billion ($641 million), while the current ratio increased 10.5 percentage
points, to 229.0%.
Total net assets at the end of the �scal year under review stood
at ¥165.8 billion ($1,471 million), an increase of ¥1.9 billion compared
with the previous �scal year-end. While retained earnings were up
¥6.6 billion, remeasurements of de�ned bene�t plans fell ¥3.1 billion,
and valuation di�erence on available-for-sale securities decreased
¥1.4 billion. Furthermore, total assets amounted to ¥228.6 billion
($2,029 million), up ¥4.3 billion compared with the close of �scal
2015, due primarily to a ¥5.9 billion increase in cash and deposits.
Consequently, the equity ratio fell from 72.1% to 71.6%.
Cash FlowsNet cash provided by operating activities during the �scal year under
review totaled ¥14.4 billion ($127 million), a decrease of ¥12.1 billion
compared with ¥26.4 billion in the previous �scal year. Major in�ows
included income before income taxes of ¥14.6 billion ($130 million)
and depreciation of ¥9.2 billion ($81 million). Major out�ows included
income taxes paid of ¥4.4 billion ($39 million), decrease in accrued
consumption taxes of ¥2.0 billion ($18 million), and decrease in net
de�ned bene�t liability of ¥1.4 billion ($13 million).
Net cash used in investing activities amounted to ¥5.5 billion
($49 million), which was ¥2.3 billion less than the ¥7.8 billion used
in the previous �scal year. Major in�ows consisted of proceeds from
sales and redemption of investment securities of ¥3.8 billion ($34
million). Major out�ows included purchase of investment securities
totaling ¥4.1 billion ($36 million) and purchase of property, plant and
equipment of ¥3.7 billion ($33 million).
Net cash used in �nancing activities totaled ¥2.8 billion
($25 million), which was nearly on par with the ¥2.9 billion used in
the previous �scal year. Major out�ows consisted primarily of cash
dividends paid of ¥2.8 billion ($25 million).
As a result of the above, cash and cash equivalents at end of
period totaled ¥59.5 billion ($528 million), up ¥6.0 billion compared
with the previous �scal year-end.
36 TOPPAN FORMS REPORT 2016
CONSOLIDATED BALANCE SHEETSToppan Forms Co., Ltd. and Consolidated Subsidiaries March 31, 2015 and 2016
Millions of yen
Thousands of U.S. dollars
(Note 1)March 31 2015 2016 2016
AssetsCurrent assets Cash and deposits (Note 10) ¥ 53,680 ¥ 59,547 $ 528,462 Notes and accounts receivable–trade 49,522 49,692 440,998 Short-term investment securities (Notes 12 and 13) 1,101 1,303 11,560 Merchandise and �nished goods 7,975 7,920 70,290 Work in process 1,054 1,149 10,200 Raw materials and supplies 2,378 2,560 22,718 Prepaid expenses 1,553 1,735 15,399 Deferred tax assets (Note 15) 2,222 2,370 21,029 Other current assets 2,274 2,355 20,902 Allowance for doubtful accounts (122) (340) (3,013) Total current assets 121,637 128,291 1,138,545 Noncurrent assets Property, plant and equipment Buildings and structures 65,298 65,500 581,293 Accumulated depreciation (29,916) (31,813) (282,333) Buildings and structures, net 35,382 33,687 298,960 Machinery, equipment and vehicles 77,838 78,696 698,403 Accumulated depreciation (67,554) (68,527) (608,153) Machinery, equipment and vehicles, net 10,284 10,169 90,250 Tools, furniture and �xtures 14,855 15,356 136,282 Accumulated depreciation (11,347) (12,027) (106,736) Tools, furniture and �xtures, net 3,508 3,329 29,546 Land 23,369 23,314 206,904 Lease assets 494 610 5,417 Accumulated depreciation (445) (439) (3,897) Lease assets, net 49 171 1,520 Construction in progress 235 341 3,030 Total property, plant and equipment 72,827 71,011 630,210 Intangible assets Goodwill 1,126 910 8,076 Others 5,215 5,375 47,697 Total intangible assets 6,341 6,285 55,773 Investments and other assets Investment securities (Notes 6 and 13) 18,135 16,767 148,801 Long-term loans receivable 246 6 56 Long-term prepaid expenses 162 198 1,753 Lease and guarantee deposits 1,337 1,369 12,148 Insurance funds 2,149 2,122 18,832 Deferred tax assets (Note 15) 1,237 1,993 17,684 Other assets 735 774 6,872 Allowance for doubtful accounts (448) (204) (1,814) Total investments and other assets 23,553 23,025 204,332 Total noncurrent assets 102,721 100,321 890,315
Total assets ¥224,358 ¥228,612 $2,028,860
The accompanying notes are an integral part of these statements.
TOPPAN FORMS REPORT 2016 37
CONSOLIDATED BALANCE SHEETSToppan Forms Co., Ltd. and Consolidated Subsidiaries March 31, 2015 and 2016
Millions of yen
Thousands of U.S. dollars
(Note 1)March 31 2015 2016 2016
LiabilitiesCurrent liabilities
Notes and accounts payable–trade ¥ 24,203 ¥ 19,627 $ 174,182 Electronically recorded obligations–operating 10,417 14,134 125,436 Short-term loans payable (Note 21) 182 171 1,516 Accounts payable–other (Note 5) 2,006 2,648 23,504 Accrued expenses 5,285 5,825 51,691 Income taxes payable 2,251 2,543 22,568 Accrued consumption taxes 3,273 1,241 11,012 Provision for bonuses 4,815 5,053 44,845 Provision for directors’ bonuses 57 64 564 Asset retirement obligations (Note 16) – 171 1,519 Notes payable–facilities 297 327 2,902 Electronically recorded obligations–non-operating 636 1,968 17,464 Other current liabilities (Note 5) 2,243 2,254 20,010 Total current liabilities 55,665 56,026 497,213 Noncurrent liabilities Deferred tax liabilities (Note 15) 1,026 210 1,861 Net de�ned bene�t liability (Note 14) 2,329 5,459 48,450 Provision for directors’ retirement bene�ts 169 167 1,485 Asset retirement obligations (Note 16) 688 625 5,545 Others (Note 5) 565 340 3,019 Total noncurrent liabilities 4,777 6,801 60,360 Total liabilities 60,442 62,827 557,573
Net assetsShareholders’ equity Capital stock Authorized: 400,000,000 shares Issued: 115,000,000 shares 11,750 11,750 104,278 Capital surplus 9,270 9,270 82,268 Retained earnings 138,959 145,545 1,291,664 Treasury stock (Note 9) (2015: 4,003,515 shares, 2016: 4,003,515 shares) (4,917) (4,917) (43,633) Total shareholders’ equity 155,062 161,648 1,434,577 Accumulated other comprehensive income Valuation di�erence on available-for-sale securities 3,538 2,152 19,098 Foreign currency translation adjustment 1,188 1,028 9,121 Remeasurements of de�ned bene�t plans 1,978 (1,096) (9,729) Total accumulated other comprehensive income 6,704 2,084 18,490 Non-controlling interests 2,150 2,053 18,220 Total net assets 163,916 165,785 1,471,287
Total liabilities and net assets ¥224,358 ¥228,612 $2,028,860
The accompanying notes are an integral part of these statements.
38 TOPPAN FORMS REPORT 2016
Millions of yen
Thousands of U.S. dollars
(Note 1)
Year ended March 31 2015 2016 2016
Net sales (Note 17) ¥265,886 ¥273,217 $2,424,717 Cost of sales 211,911 215,222 1,910,030 Gross pro�t 53,975 57,995 514,687 Selling, general and administrative expenses (Note 7) 41,368 44,320 393,329 Operating income 12,607 13,675 121,358
Non-operating income Interest income 177 136 1,205 Dividend income 335 284 2,519 Equity in earnings of a�liates 140 111 989 Subsidy income 190 170 1,506 Others (Note 5) 403 389 3,454
1,245 1,090 9,673 Non-operating expenses Foreign exchange losses 15 38 335 Loss on insurance cancellation 78 52 463 Rent expenses 66 33 292 Provision of allowance for doubtful accounts 20 – – Others (Note 5) 241 50 438
420 173 1,528 Ordinary income 13,432 14,592 129,503
Extraordinary income Gain on sales of investment securities 194 636 5,644 Gain on step acquisitions 133 – – Others 103 16 138
430 652 5,782 Extraordinary loss Loss on retirement of noncurrent assets (Note 7) 95 180 1,598 O�ce transfer expenses (Note 7) 551 98 871 Anniversary project expenses (Note 7) – 260 2,312 Others (Note 5) 35 85 751
681 623 5,532 Income before income taxes 13,181 14,621 129,753
Income taxes (Note 15) – Current 4,660 4,653 41,291 – Deferred 651 472 4,186
5,311 5,125 45,477 Pro�t 7,870 9,496 84,276 Pro�t attributable to non-controlling interests 35 135 1,202
Pro�t attributable to owners of parent ¥ 7,835 ¥ 9,361 $ 83,074
The accompanying notes are an integral part of these statements.
CONSOLIDATED STATEMENTS OF INCOMEToppan Forms Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2015 and 2016
TOPPAN FORMS REPORT 2016 39
Millions of yen
Thousands of U.S. dollars
(Note 1)
Year ended March 31 2015 2016 2016
Pro�t ¥ 7,870 ¥ 9,496 $ 84,276 Other comprehensive income (loss) Valuation di�erence on available-for-sale securities 1,570 (1,397) (12,399) Foreign currency translation adjustment 746 (118) (1,050) Remeasurements of de�ned bene�t plans, net of tax 2,345 (3,074) (27,282) Share of other comprehensive income of entities accounted for
using equity method (30) (42) (370) Total other comprehensive income (loss) (Note 8) 4,631 (4,631) (41,101)Comprehensive income ¥12,501 ¥ 4,865 $ 43,175 Comprehensive income attributable to Owners of parent 12,451 4,741 42,072 Non-controlling interests 50 124 1,103
The accompanying notes are an integral part of these statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEToppan Forms Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2015 and 2016
40 TOPPAN FORMS REPORT 2016
Millions of yen
Thousands of U.S. dollars
(Note 1)
Year ended March 31 2015 2016 2016
Statements of changes in net assetsShareholders’ equity Capital stock Balance at beginning of current period ¥ 11,750 ¥ 11,750 $ 104,278 Cumulative e�ects of changes in accounting policies – – – Restated balance 11,750 11,750 104,278 Changes of items during the period Total changes of items during the period – – – Balance at end of current period 11,750 11,750 104,278 Capital surplus Legal capital surplus Balance at beginning of current period 9,270 9,270 82,268 Cumulative e�ects of changes in accounting policies – – – Restated balance 9,270 9,270 82,268 Changes of items during the period Total changes of items during the period – – – Balance at end of current period 9,270 9,270 82,268 Retained earnings Balance at beginning of current period 136,479 138,959 1,233,217 Cumulative e�ects of changes in accounting policies (2,580) – – Restated balance 133,899 138,959 1,233,217 Changes of items during the period Dividends from surplus (2,775) (2,775) (24,627) Pro�t attributable to owners of parent 7,835 9,361 83,074 Total changes of items during the period 5,060 6,586 58,447 Balance at end of current period 138,959 145,545 1,291,664 Treasury stock Balance at beginning of current period (4,917) (4,917) (43,633) Cumulative e�ects of changes in accounting policies – – – Restated balance (4,917) (4,917) (43,633) Changes of items during the period Purchase of treasury stock (0) – – Total changes of items during the period (0) – – Balance at end of current period (4,917) (4,917) (43,633) Total shareholders’ equity Balance at beginning of current period 152,582 155,062 1,376,130 Cumulative e�ects of changes in accounting policies (2,580) – – Restated balance 150,002 155,062 1,376,130 Changes of items during the period Dividends from surplus (2,775) (2,775) (24,627) Pro�t attributable to owners of parent 7,835 9,361 83,074 Purchase of treasury stock (0) – – Total changes of items during the period 5,060 6,586 58,447 Balance at end of current period 155,062 161,648 1,434,577 Accumulated other comprehensive income Valuation di�erence on available-for-sale securities Balance at beginning of current period 1,973 3,538 31,398 Cumulative e�ects of changes in accounting policies – – – Restated balance 1,973 3,538 31,398 Changes of items during the period Net changes of items other than shareholders’ equity 1,565 (1,386) (12,300) Total changes of items during the period 1,565 (1,386) (12,300) Balance at end of current period 3,538 2,152 19,098
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETSToppan Forms Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2015 and 2016
TOPPAN FORMS REPORT 2016 41
Millions of yen
Thousands of U.S. dollars
(Note 1)
Year ended March 31 2015 2016 2016
Foreign currency translation adjustment Balance at beginning of current period ¥ 472 ¥ 1,188 $ 10,541 Cumulative e�ects of changes in accounting policies – – – Restated balance 472 1,188 10,541 Changes of items during the period Net changes of items other than shareholders’ equity 716 (160) (1,420) Total changes of items during the period 716 (160) (1,420) Balance at end of current period 1,188 1,028 9,121 Remeasurements of de�ned bene�t plans Balance at beginning of current period (358) 1,978 17,553 Cumulative e�ects of changes in accounting policies – – – Restated balance (358) 1,978 17,553 Changes of items during the period Net changes of items other than shareholders’ equity 2,336 (3,074) (27,282) Total changes of items during the period 2,336 (3,074) (27,282) Balance at end of current period 1,978 (1,096) (9,729)Total accumulated other comprehensive income Balance at beginning of current period 2,087 6,704 59,492 Cumulative e�ects of changes in accounting policies – – – Restated balance 2,087 6,704 59,492 Changes of items during the period Net changes of items other than shareholders’ equity 4,617 (4,620) (41,002) Total changes of items during the period 4,617 (4,620) (41,002) Balance at end of current period 6,704 2,084 18,490 Non-controlling interests Balance at beginning of current period 639 2,150 19,083 Cumulative e�ects of changes in accounting policies – – – Restated balance 639 2,150 19,083 Changes of items during the period Net changes of items other than shareholders’ equity 1,511 (97) (863) Total changes of items during the period 1,511 (97) (863) Balance at end of current period 2,150 2,053 18,220 Total net assets Balance at beginning of current period 155,308 163,916 1,454,705 Cumulative e�ects of changes in accounting policies (2,580) – – Restated balance 152,728 163,916 1,454,705 Changes of items during the period Dividends from surplus (2,775) (2,775) (24,627) Pro�t attributable to owners of parent 7,835 9,361 83,074 Purchase of treasury stock (0) – – Net changes of items during the period 6,128 (4,717) (41,865) Total changes of items during the period 11,188 1,869 16,582
Balance at end of current period ¥163,916 ¥165,785 $1,471,287
The accompanying notes are an integral part of these statements.
42 TOPPAN FORMS REPORT 2016
Millions of yen
Thousands of U.S. dollars
(Note 1)
Year ended March 31 2015 2016 2016
Net cash provided by operating activities Income before income taxes ¥13,181 ¥14,621 $129,753 Depreciation 8,633 9,159 81,282 Amortization of goodwill 102 219 1,945 Loss on retirement of noncurrent assets 95 180 1,598 Gain on sales of investment securities (180) (627) (5,563) Decrease in allowance for doubtful accounts (9) (26) (230) Decrease in net de�ned bene�t liability (1,243) (1,425) (12,648) Decrease (increase) in provision for directors’ bonuses (9) 6 55 Decrease (increase) in provision for bonuses (179) 241 2,141 Interest and dividends income (512) (420) (3,724) Interest expense 6 7 59 Gain on maturity of insurance contract (Note 5) (11) (100) (889) Equity in earnings of a�liates (140) (111) (989) Decrease (increase) in notes and accounts receivable–trade 1,001 (254) (2,254) Decrease (increase) in inventories 484 (254) (2,256) Increase (decrease) in notes and accounts payable–trade 5,099 (838) (7,441) Increase (decrease) in accrued consumption taxes 2,662 (2,030) (18,019) Others, net (Note 5) 1,133 46 424 Subtotal 30,113 18,394 163,244 Interest and dividend income received 506 411 3,646 Interest expenses paid (6) (7) (59) Income taxes paid (4,193) (4,436) (39,371) Net cash provided by operating activities 26,420 14,362 127,460 Net cash used in investing activities Payments into time deposits (253) (253) (2,245) Proceeds from withdrawal of time deposits 253 370 3,283 Purchase of securities – (300) (2,662) Proceeds from sales of securities – 300 2,662 Purchase of property, plant and equipment (6,404) (3,707) (32,898) Proceeds from sales of property, plant and equipment 4 3 27 Purchase of investment securities (5,147) (4,107) (36,453) Proceeds from sales and redemption of investment securities 6,133 3,828 33,972 P urchase of investments in subsidiaries resulting in change in scope
of consolidation (Note 10) (1,309) – – Other payments (2,284) (2,735) (24,269) Other proceeds 1,217 1,134 10,062 Net cash used in investing activities (7,790) (5,467) (48,521)Net cash used in �nancing activities Net decrease in short-term loans payable (169) – – Repayments of �nance lease obligations (35) (41) (365) Cash dividends paid (2,775) (2,775) (24,626) Proceeds from share issuance to non-controlling shareholders 61 – – Dividends paid to non-controlling interests (15) (15) (134) Others, net (0) – – Net cash used in �nancing activities (2,933) (2,831) (25,125)E�ect of exchange rate change on cash and cash equivalents 119 (67) (597)Net increase in cash and cash equivalents 15,816 5,997 53,217 Cash and cash equivalents at beginning of period 37,681 53,497 474,775
Cash and cash equivalents at end of period (Note 10) ¥53,497 ¥59,494 $527,992
The accompanying notes are an integral part of these statements.
CONSOLIDATED STATEMENTS OF CASH FLOWSToppan Forms Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2015 and 2016
TOPPAN FORMS REPORT 2016 43
NOTES TO CONSOLIDATED FINANCIAL STATEMENTSToppan Forms Co., Ltd. and Consolidated Subsidiaries Years ended March 31, 2015 and 2016
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated �nancial statements have been translated from the consolidated �nancial statements of TOPPAN FORMS CO., LTD. (the “Company”) and its subsidiaries �led with the Director of the Kanto Local Finance Bureau in accordance with the Financial Instruments and Exchange Law of Japan and its related accounting regulations, and in conformity with accounting principles and practices generally accepted in Japan, which are di�erent in certain respects from the application and disclosure requirements of International Financial Reporting Standards. The consolidated �nancial statements are stated in Japanese yen, the
currency of the country in which the Company is incorporated and principally operates. The translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan and has been calculated at the rate of ¥112.68 to U.S.$1, the approximate rate of exchange on March 31, 2016. Such translations should not be construed as representa-tions that the Japanese yen amounts could have been or could be converted into U.S. dollars at that or any other rate. In addition, certain reclassi�cations of previously reported amounts have been made to conform to the current year presentation.
2. Summary of Signi�cant Accounting Policies
(1) Consolidation (a) Consolidated subsidiariesThe consolidated �nancial statements include the accounts of the Company and all of its subsidiaries (23 companies for the �scal years ended March 31, 2015 and 2016, respectively). Signi�cant subsidiaries are as follows: • Toppan Forms Central Products Co., Ltd. • Toppan Forms Tokai Co., Ltd. • Toppan Forms Logistics and Services Co., Ltd. • Toppan Forms Kansai Co., Ltd. • Toppan Forms Nishinihon Co., Ltd. • Toppan Forms (Sanyo) Co., Ltd. • TOSCO CORPORATION • Toppan Forms (Hong Kong) Ltd. • Toppan Forms (S) Pte. Ltd. • Toppan Forms Operation Co., Ltd. • Techno Toppan Forms Co., Ltd. • TF Payment Service Co., Ltd. • J-SCube Inc. • Data Products Toppan Forms Ltd.(b) Equity-method associatesInvestments in all associates (3 associates for the �scal years ended March 31, 2015 and 2016, respectively), where shareholdings are more than 20% and where the Company has signi�cant in�uence over operations, �nance and management, are accounted for using the equity method. The associate with the most signi�cant impact on the results of the Company is ZHEJIANG MATSUOKA PRINTING CO., LTD.(c) Period-end datesThe period-end date of T.F. Company Ltd. and 9 of its subsidiaries is December 31. The consolidated �nancial statements incorporate the accounts of these companies with adjustments for signi�cant transactions with the Company and consolidated subsidiaries arising during the period from January 1 to March 31.
(2) Valuation methods for major assets(a) SecuritiesSecurities held by the Company and its consolidated subsidiaries are classi�ed into two categories: Held-to-maturity debt securities are stated at cost after accounting for any premium or discount on acquisition, which is amortized over the period to maturity. Other securities for which market price or quotations are available are stated at fair value. Net unrealized gains and losses on these securities are reported as a separate component of net assets at a net-of-tax amount. Other securities for which market quotations are unavailable are stated at cost. In addition, subscriptions to investment funds (not a�liates) that are included in other investment securities are accounted for by the equity method based on the most recently available �nancial information. (b) DerivativesAll derivatives are stated at fair value, with changes in fair value being included in net income for the period in which they arise, except for derivatives that are designated as “hedging instruments”.(c) InventoriesMerchandise (supplies), raw materials and supplies are stated at the lower of cost or net realizable value determined by using the �rst-in, �rst-out method. Merchandise (machinery), �nished goods and work in process are stated at the lower of cost or net realizable value determined by using the speci�c identi�cation method.
(3) Depreciation and amortization of major assets(a) Property, plant and equipment (excluding lease assets)The declining-balance method is principally adopted. The same standard as is stipulated in the Corporate Tax Law of Japan is applied to the useful economic lives and the residual values for accounting purposes. However, depreciation of buildings acquired by the Company and its domestic consolidated subsid-iaries after April 1, 1998 is computed using the straight-line method in ac-cordance with the Corporate Tax Law of Japan. (b) Intangible assets (excluding lease assets)The straight-line method is adopted. Software for in-house use is amortized based on the straight-line method over the expected useful economic life of 5 years.(c) Lease assetsThe straight-line method is adopted over the lease term without residual value. (d) Long-term prepaid expensesThe straight-line method is adopted. The majority of assets have an amortiza-tion period of 5 years.
(4) Basis of provision(a) Allowance for doubtful accountsAllowance for doubtful accounts of the Company and its domestic consoli-dated subsidiaries is computed based on the past bad debt experience ratio for normal receivables, plus the estimated irrecoverable amount of doubtful receivables on an individual account basis.(b) Provision for bonusesProvision for bonuses to employees is provided for in the amount of the expected bonus payments to be made at the end of the �scal year.(c) Provision for bonuses to directors and corporate auditorsProvision for bonuses to directors and corporate auditors are provided for in the estimated amounts to be paid in respect of the �scal year. (d) Provision for directors’ retirement bene�tsThe Company and its domestic consolidated subsidiaries record accrued severance indemnities costs for directors and corporate auditors based on internal regulations. The Company had abolished the severance indemnities for directors and corporate auditors upon the closure of its annual sharehold-ers’ meeting held on June 29, 2006. According to the abolishment, the accrued severance indemnities for directors and corporate auditors, which were calculated and �xed based on the Company’s internal rules and the period from their admission up to June 29, 2006, are included in “Provision for directors’ retirement bene�ts” on the consolidated balance sheets.
(5) Accounting method for retirement bene�ts(a) Allocation of expected bene�t paymentsWhen calculating retirement bene�t obligation, the bene�t formula method is used to allocate expected bene�t payments .(b) Actuarial di�erences and prior service costsThe unrecognized prior service costs are being amortized on a straight-line basis over 15 years (the average remaining service period of employees when the unrecognized prior service costs are incurred). The unrecognized actuarial di�erences are being amortized on a straight-line basis primarily over 15 years (the average remaining service period of employees when the di�erences are incurred) from the period following that in which they occurred.
44 TOPPAN FORMS REPORT 2016
(6) Recognition for construction contractsThe percentage-of-completion method is adopted if the outcome of the construction activity is deemed certain during the course of the activity, otherwise the completed-contract method is adopted. The percentage of completion at the end of the �scal year is estimated based on the percentage of the costs incurred to the estimated total cost.
(7) Foreign currency translationThe translation of assets and liabilities denominated in foreign currency at the end of the �scal year is made at the period-end exchange rate. Exchange gains and losses resulting from foreign currency transactions and translation of assets and liabilities denominated in foreign currencies are included in the consolidated statements of income. All assets, liabilities, income and expense accounts of foreign subsidiaries and a�liates are translated using the current exchange rates at the respective balance sheet dates. Foreign currency translation adjustments resulting from such procedures are recorded in the consolidated balance sheets as a separate component of net assets.
(8) Hedge accountingGains and losses arising from changes in the fair value of derivatives desig-nated as “hedging instruments” are deferred as an asset or liability, and in-cluded in net income in the same period during which the gains and losses on the hedged items or transactions are recognized. Derivatives designated as hedging instruments by the Company are principally forward exchange contracts and interest rate swap contracts.
The related hedged items are trade accounts receivable and payable, and long-term debts. The Company has a policy of utilizing the above hedging instruments in order to reduce the Company’s exposure to the risk of foreign currency exchange rate �uctuations and interest rate �uctuations. Thus, the Company’s purchase of hedging instruments is limited to, at maximum, the amounts of the hedged items. The Company evaluates the e�ectiveness of its hedging activities by reference to the accumulated gains or losses on the hedging instruments and the related items from the commencement of the hedges.
(9) Amortization of goodwillGoodwill is amortized evenly over the estimated period during which the Company will receive bene�t.
(10) Cash and cash equivalentsCash and cash equivalents include all highly liquid investments, generally with original maturities of three months or less, those that are readily convertible to known amounts of cash and, thus, present an insigni�cant risk of changes in value.
(11) Consumption taxThe consumption tax withheld upon sale and consumption tax paid by the Companies on their purchases of goods and services is not included in revenue and cost or expense items, in the accompanying consolidated statements of income.
3. Accounting Changes
For the consolidated �scal year under review, the Company applied the following standards; “Accounting Standard for Business Combinations” (ASBJ Statement No. 21, September 13, 2013; hereinafter, the “Business Combination Standard”), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013; hereinafter, the “Consolidated Accounting Standard”), and the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013; hereinafter, the “Business Divestitures Accounting Standard”). As a result of the accounting method change the di�erences associated with changes in equity in subsidiaries remaining under control of the Company is recorded as capital surplus and acquisition-related costs are recorded as expenses in the �scal year in which the costs are incurred. For business combinations implemented on or after the start of the current �scal year, the accounting method has been changed to re�ect the adjustments to the allocated amount of acquisition costs on the �nalization of provisional accounting treatment in the consolidated �nancial
statements for the year containing the date of the business combinations. The Company applied the transitional treatment as prescribed in Item (4), Paragraph 58-2 of the Business Combination Standard, Item (4), Paragraph 44-5 of the Consolidated Accounting Standard, and Item (4), Paragraph 57-4 of the Business Divestitures Accounting Standard on the start of the consolidated �scal year under review and for the future years. In the consolidated statement of cash �ows for the consolidated �scal year under review, cash �ows related to acquisition or sale of share of subsidiaries not a�ecting the scope of consolidation are classi�ed into “Cash �ows from �nancing activities,” while cash �ows related to expenses arising from acquisi-tion of shares of subsidiaries not a�ecting the scope of consolidation are classi�ed into “Cash �ows from operating activities.” The changes made do not a�ect the consolidated �nancial statements or per share information in the �scal year under review.
4. Accounting Standard Issued But Not Yet Applied
“Implementation Guidance on Recoverability of Deferred Tax Assets” (Implementation Guidance of Corporate Accounting Standards No. 26, March 29, 2016)
(1) OverviewRegarding the treatment of the recoverability of deferred tax assets, a neces-sary review was conducted following the framework of Japanese Institution of Certi�ed Public Accountants Audit Committee Report No. 66” Audit Treatment of Determining the Recoverability of Deferred Tax Assets” whereby companies are now categorized into �ve categories and deferred tax assets are calculated based on each of these categories.
1) Treatment of companies that do not satisfy any of the category require-ments for (Category 1) through (Category 5)
2) Category requirements for (Category 2) and (Category 3)
3) Treatment related to future deductible temporary di�erences which cannot be scheduled in companies that qualify as (Category 2)
4) Treatment related to the reasonable estimable period of future pre-adjusted taxable income in companies that qualify as (Category 3)
5) Treatment in cases that companies that satisfy the category requirements for (Category 4) but qualify as (Category 2) or (Category 3)
(2) Date of adoptionNew accounting standard will be adopted from the start of the �scal year ending March 31, 2017.
(3) Impact of the adoption of the accounting standardAt the beginning of the next consolidated �scal year, the impact on the Company’s consolidated �nancial statements will be minimal.
TOPPAN FORMS REPORT 2016 45
5. Change in Presentation Methods
(1) Consolidated Balance SheetsIn the prior consolidated �scal year, “Accounts payable-other” was included in “Other current liabilities” under “Current liabilities.” In the current consolidated �scal year, the balance of “Accounts payable-other” increased and is now disclosed separately under “Other current liabilities” in the consolidated balance sheets due to the increase in the account balance. In order to re�ect this change in presentation, the consolidated �nancial statements has been revised for the previous consolidated �scal year. As a result, the ¥4,249 million for “Other current liabilities” under “Current liabil-ities” is now presented as “Accounts payable-other” of ¥2,006 million and “Other current liabilities” of ¥2,243 million for the previous consolidated �scal year. In the previous consolidated �scal year, “Lease obligations” was disclosed separately under “Noncurrent liabilities.” In the current consolidated �scal year under review, “Lease obligations” is no longer monetarily signi�cant and is now included in the amount for “Others” in the consolidated balance sheet. In order to re�ect this change in presentation, the consolidated �nancial statements for the previous consolidated �scal year have been revised. As a result, the ¥56 million for “Lease obligations” under “Noncurrent liabilities” was reorganized into the ¥509 million for “Others.” Accordingly, the amount listed for “Others” is now ¥565 million for the previous consolidated �scal year.
(2) Consolidated Statements of IncomeIn the previous consolidated �scal year, “House rent income” was disclosed separately under “Non-operating income.” In the current consolidated �scal year, “House rent income” is no longer monetarily signi�cant and is now included in the amount for “Others” in the consolidated statements of income. In order to re�ect this change in presentation, the consolidated �nancial statements for the previous consolidated �scal year have been revised. As a result, the ¥127 million for “House rent income” under “Non-operating income” was reorganized into the ¥276 million for “Others.” Accordingly, the amount listed for “Others” is now ¥403 million for the previous consolidated �scal year. In the previous consolidated �scal year, “Interest expenses” was disclosed separately under “Non-operating expenses.” In the current consolidated �scal
years, “Interest expenses” is no longer monetarily signi�cant and is now in-cluded in the amount for “Others” in the consolidated statements of income. In order to re�ect this change in presentation, the consolidated �nancial statements for the previous consolidated �scal year have been revised. As a result, the ¥6 million for “Interest expenses” under “Non-operating expenses” was reorganized into the ¥235 million for “Others.” Accordingly the amount listed for “Others” is now ¥241 million for the previous consolidated �scal year. In the previous consolidated �scal year, “Loss on disposal of noncurrent assets” was disclosed separately under “Extraordinary loss.” In the current consolidated �scal years “Loss on disposal of noncurrent assets” is no longer monetarily signi�cant and is now included in the amount for “Others” in the consolidated statements of income. In order to re�ect this change in presenta-tion, the consolidated �nancial statements for the previous consolidated �scal year have been revised. As a result, the ¥6 million for “Loss on disposal of noncurrent assets” under “Extraordinary loss” was reorganized into the ¥29 million for “Others.” Accordingly the amount listed for “Others” is now ¥35 million for the previous consolidated �scal year.
(3) Consolidated Statements of Cash FlowsIn the previous consolidated �scal year, “Gain on maturity of insurance con-tract” was included in “Others, net” under “Net cash provided by operating activities.” In the current consolidated �scal year the balance of “Gain on maturity of insurance contract” is now disclosed separately under “Net cash provided by operating activities” in the consolidated statements of cash �ows due to the increase in the account balance. In order to re�ect this change in presentation, the consolidated �nancial statements for the previous consoli-dated �scal year have been revised. As a result, the ¥1,122 million for “Others, net” of under “Net cash provided by operating activities” is now presented as “Gain on maturity of insurance contract” of ¥(11) million and “Others, net” of ¥1,133 million for the previous consolidated �scal year.
6. Notes to Consolidated Balance Sheets
Investments in a�liates
Millions of yenThousands of
U.S. dollars
2015 2016 2016
Investment securities (share stocks) ¥655 ¥722 $6,404
7. Notes to Consolidated Statements of Income
(1) Selling, general and administrative expensesThe major components of “Selling, general and administrative expenses” are as follows:
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Delivery costs ¥ 7,089 ¥ 6,716 $ 59,604Salaries and bonuses 14,578 14,971 132,859Pension costs 613 514 4,560Provisions for bonuses to employees 1,851 2,065 18,326Provisions for bonuses to directors and corporate auditors 57 64 564Provisions for retirement bene�ts of directors and corporate auditors 18 25 219Depreciation 2,550 2,080 18,464Rent expenses 1,675 1,294 11,481Research and development expenditure 1,781 1,497 13,283
(2) Research and development expenditureResearch and development expenditure, which is charged to the consolidated statement of income when incurred, and is included in selling, general and adminis-trative expenses, amounted to ¥1,781 million and ¥1,497 million (US$13,283 thousand) for the �scal years ended March 31, 2015 and 2016, respectively.
46 TOPPAN FORMS REPORT 2016
(3) The breakdown of loss on retirement of noncurrent assets
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Buildings and structures ¥16 ¥ 43 $ 379Machinery, equipment and vehicles 64 81 717Tools, furniture and �xtures 11 36 322Software 1 – –Others 3 20 180
¥95 ¥180 $1,598
(4) O�ce transfer expensesO�ce transfer expenses are the Company, group datacenter of the consolidated subsidiary and factory restructuring for the �scal year ended March 31, 2015 and transferring the head o�ce of a consolidated subsidiary for the �scal year ended March 31, 2016, respectively.
(5) Anniversary project expensesAnniversary project expenses refer to expenses paid in relation to the anniversary projects of the Company and its consolidated subsidiaries.
8. Notes to Consolidated Statements of Comprehensive Income
“Other comprehensive income (loss)” comprises the following:
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Valuation di�erence on available-for-sale securities Gains (losses) arising during the year ¥ 2,308 ¥(1,566) $(13,896) Reclassi�cation adjustments (173) (543) (4,818) Amount before income tax e�ect 2,135 (2,109) (18,714) Income tax e�ect (565) 712 6,315 Valuation di�erence on available-for-sale securities 1,570 (1,397) (12,399)Foreign currency translation adjustment Gains (losses) arising during the year 746 (118) (1,050)Remeasurements of de�ned bene�t plans, net of tax Gains (losses) arising during the year 3,142 (4,545) (40,336) Reclassi�cation adjustments 350 (10) (93) Amount before income tax e�ect 3,492 (4,555) (40,429) Income tax e�ect (1,147) 1,481 13,147 Remeasurements of de�ned bene�t plans, net of tax 2,345 (3,074) (27,282)Share of other comprehensive income of entities accounted for using equity method Gains (losses) arising during the year 2 (42) (370) Reclassi�cation adjustments (32) – – Share of other comprehensive income of entities accounted for using equity method (30) (42) (370)Total other comprehensive income (loss) ¥ 4,631 ¥(4,631) $(41,101)
9. Notes to Consolidated Statements of Changes in Net Assets
The following are notes to the consolidated statement of changes in net assets as of March 31, 2015.
(1) Shares issued
Share typePrevious �scal year-end
(Thousand shares)Increase
(Thousand shares)Decrease
(Thousand shares)Fiscal year-end
(Thousand shares)
Common stock 115,000 – – 115,000
(2) Treasury stock
Share typePrevious �scal year-end
(Thousand shares)Increase
(Thousand shares)Decrease
(Thousand shares)Fiscal year-end
(Thousand shares)
Common stock 4,003 0 – 4,004
TOPPAN FORMS REPORT 2016 47
(3) Matters related to dividends(a) Amount of dividends paid
Resolution Type of stockTotal amount of dividends
(Millions of yen)Dividend per
share (Yen) Date of record E�ective date
Annual shareholders’ meeting held on June 27, 2014
Commonstock
1,387 12.5March 31,
2014June 30,
2014Board of Directors’ meeting held on October 31, 2014
Commonstock
1,387 12.5September 30,
2014December 8,
2014
(b) Schedule of dividendsThe following shows those dividends with date of record in the �scal year ended March 31, 2015, for which the e�ective date is in the following consolidated �scal year.
Resolution Type of stockTotal amount of dividends
(Millions of yen)Fiscal resource
of dividendsDividend per
share (Yen) Date of record E�ective date
Annual shareholders’ meeting held on June 26, 2015
Commonstock
1,387Retainedearnings
12.5March 31,
2015June 29,
2015
The following are notes to the consolidated statement of changes in net assets as of March 31, 2016.(1) Shares issued
Share typePrevious �scal year-end
(Thousand shares)Increase
(Thousand shares)Decrease
(Thousand shares)Fiscal year-end
(Thousand shares)
Common stock 115,000 – – 115,000
(2) Treasury stock
Share typePrevious �scal year-end
(Thousand shares)Increase
(Thousand shares)Decrease
(Thousand shares)Fiscal year-end
(Thousand shares)
Common stock 4,004 – – 4,004
(3) Matters related to dividends (a) Amount of dividends paid
Resolution Type of stockTotal amount of dividends
(Millions of yen)Dividend per
share (Yen) Date of record E�ective date
Annual shareholders’ meeting held on June 26, 2015
Commonstock
1,387 12.5March 31,
2015June 29,
2015Board of Directors’ meeting held on October 30, 2015
Commonstock
1,387 12.5September 30,
2015December 7,
2015
Resolution Type of stockTotal amount of dividends (Thousands of U.S. dollars)
Dividend per share (U.S. dollars) Date of record E�ective date
Annual shareholders’ meeting held on June 26, 2015
Commonstock
12,313 0.11March 31,
2015June 29,
2015Board of Directors’ meeting held on October 30, 2015
Commonstock
12,313 0.11September 30,
2015December 7,
2015
(b) Schedule of dividendsThe following shows those dividends with date of record in the �scal year ended March 31, 2016, for which the e�ective date is in the following consolidated �scal year.
Resolution Type of stockTotal amount of dividends
(Millions of yen)Fiscal resource
of dividendsDividend per
share (Yen) Date of record E�ective date
Annual shareholders’ meeting held on June 29, 2016
Commonstock
1,387Retainedearnings
12.5March 31,
2016June 30,
2016
Resolution Type of stockTotal amount of dividends (Thousands of U.S. dollars)
Fiscal resource of dividends
Dividend per share (U.S. dollars) Date of record E�ective date
Annual shareholders’ meeting held on June 29, 2016
Commonstock
12,313Retainedearnings
0.11March 31,
2016June 30,
2016
48 TOPPAN FORMS REPORT 2016
10. Notes to Consolidated Statements of Cash Flows
(1) Cash and cash equivalents
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Cash and time deposits with original maturity of three months or less ¥53,680 ¥59,547 $528,462Less: Time deposits with original maturities of more than three months (183) (53) (470)
¥53,497 ¥59,494 $527,992
(2) Breakdown of assets received and liabilities assumed from companies converted to consolidated subsidiaries following the acquisition of stockFor the �scal year ended March 31, 2015, the breakdown of assets received and liabilities assumed from Data Products Toppan Forms Ltd. at the time of consolida-tion following the acquisition of stock, acquisition cost, and net cash out�ow to acquire the shares of newly consolidated subsidiary are as follows.
Millions of yen
Current assets ¥ 1,423Noncurrent assets 1,883Goodwill 822Current liabilities (391)Noncurrent liabilities (208)Non-controlling interests (1,407)Acquisition cost 2,122Equity method appraisal value up to the acquisition of control (124)Gain on step acquisitions (133)Cash and cash equivalents (556)Net cash out�ow to acquire the shares of newly consolidated subsidiary ¥ 1,309
11. Lease Transactions
(1) Finance lease transaction (lessee)Finance leases other than those which transfer ownership of property, plant and equipment to lessees are utilized. Lease assets consist mainly of production assets (machinery, equipment and vehicles) used in the printing business. Accumulated depreciation is computed by the straight-line method based on the period of those �nance leases with no residual value.
(2) Operating lease transaction (lessee)Minimum lease payments under non-cancellable operating leases for the �scal years ended March 31, 2015 and 2016 are as follows:
Millions of yenThousands of
U.S. dollars
March 31 2015 2016 2016
Due within 1 year ¥ 442 ¥ 456 $ 4,050Due after 1 year 1,397 1,337 11,869Total minimum lease payments ¥1,839 ¥1,793 $15,919
12. Financial Instruments
(1) Matters related to the status of �nancial instruments(a) Policies on the use of �nancial instrumentsThe Company invests temporary surpluses in highly secure �nancial assets and does not engage in speculative investment. The Company employs derivative transactions only to hedge against the market risks described below, and does not conduct such trades for speculative purposes.(b) Content of �nancial instruments and assessed risksCash and deposits involve the risk that the depository institution will default and become unable to repay the deposits. Short-term investment securities are subject to the risk of default by an issuing institution or �nancial brokerage �rm, as well as the risk of a substantial decline in fair value as a result of changes in the market environment which may result in the loss or impair-ment of principal investments. Claimable assets such as accounts receivable, notes receivable, loans receivable, and other collectibles, as well as such �nancial assets including lease and guarantee deposits, involve the risk of counterparties becoming unable to discharge their settlement duties due to worsening management or insolvency. Borrowings made from �nancial institutions by consolidated subsidiaries for which the Company has guaran-teed obligations involve the risk that a breach of contract with the guaranteed party by the Company’s consolidated companies could harm the Company’s reputation and force it to assume responsibility for the borrowings. Derivative contracts involve the risk of non-performance due to default and other factors.
Derivative contracts also involve the risk of substantial declines in market value owing to changes in the market environment resulting from foreign exchange rate and interest rate �uctuations, as well as the risk of substantial increases in obligations. Financial obligations on notes and accounts payable involve the risk of double payment owing to the transfer of obligations to a business partner, as well as the risk of being unable to avoid the e�ects of activities by antisocial elements. Loans payable involve the risk of a downturn in operating performance which could result in the attachment of collateral and the risk of being unable to sustain the existing conditions of �nancial agreements. Also, future interest rate increases could cause the Company’s obligations on loans payable and bonds payable to increase. Loans payable and other �nancial obligations also involve the risk that, as the result of a downturn in operating performance, the Company’s liquidity could fall to a level that renders it unable to ful�ll its payment obligations. A portion of the Company’s �nancial assets, such as cash and deposits, and certain �nancial obligations are denominated in foreign currencies as a result of the Group’s e�orts to expand its operations overseas. Consequently, exchange rate �uctuations could cause its asset values to decline or the cost of its obligations to increase. Cash, foreign currency col-lateral securities and notes receivable, equity securities and assets underlying marketable securities involve the risk that the Company may be unable to �le recovery claims as a result of theft, loss or �re.
TOPPAN FORMS REPORT 2016 49
(c) Risk management system related to �nancial instruments(i) Management of credit risk (the risk that a customer will default on its
transactional obligations) The Company manages its various claimable assets, such as accounts
receivable and notes receivable, according to separately formulated receiv-ables management regulations, with the aim of securing its receivables and boosting its capital e�ciency. Speci�c details regarding management are provided in the Company’s customer information management regulations.
In accordance with the provision for “credit management” in Article 2 of the Company’s customer information management regulations, on a monthly basis the Company determines the total fair value of its loans receivable, other receivables and other guaranteed obligations, con�rming the credit status of customer and collection delays to con�rm recoverability.
To lower its counterparty risk, the Company conducts derivative transactions only with highly rated �nancial institutions.
(ii) Management of market risk (the risk of foreign currency exchange and interest rate �uctuations)
The Company invests funds in accordance with separately formulated �nancial management regulations and �nancial management regulation implementation schedules to minimize risks related to capital, interest, liquidity and fund settlement.
On a quarterly basis, the Company determines the fair value of its holdings of marketable securities and the �nancial status of their issuers (corporate business partners) and reviews the status of its holdings on a regular basis.
The Company engages in derivative transactions only for the purpose of hedging risk, and does not conduct such transactions for speculative purposes.
(iii) Management of liquidity risk related to fund procurement (the risk of being unable to make payments on their due dates)
In accordance with its �nancial management regulations and �nancial management regulation implementation schedule, the Company formulates asset budget plans in line with its medium-term plans, reports on investments and performance at monthly investment meetings, and manages ongoing cash �ow.
The Company conducts medium- to long-term cash planning and raises funds as necessary by issuing corporate bonds or through bank loans to ensure the availability of appropriate levels of cash and raise capital e�ciency.
The Company has formulated �nancial management regulations, supplementary schedules and a�liated company management regulations with regard to the raising of funds through the issuance of corporate bonds and borrowings, and procedures for selecting �nancial institutions, and must follow these regulations.
By employing management methods that comply with its �nancial management regulations and supplementary schedules, the Company is able to determine accurately the total book values of cash and deposits, receivables and payables, and conducts cash planning accordingly to insulate itself from liquidity risk.
(d) Supplementary explanation regarding the fair value of �nancial instrumentsWith regard to the fair value of �nancial instruments, in addition to basing fair value on market value, the fair value of �nancial instruments that have no available market value is determined by using a rational method of calculation. However, as variables are inherent in these value calculations, the resulting values may di�er if di�erent assumptions are used.
(2) Matters related to the fair value of �nancial instrumentsThe following information relates to the aggregated book carrying amounts and fair values as of March 31, 2015 and 2016. Financial instruments that have no readily available fair values are not included in the information below.
Millions of yen
March 31, 2015Book carrying
amount Fair valueUnrealized gains
(losses)
Assets: (i) Cash and deposits ¥ 53,680 ¥ 53,680 ¥ – (ii) Notes and accounts receivable–trade 49,522 Allowance for doubtful accounts* (117)
49,405 49,405 – (iii) Short-term investment securities and investment securities 18,283 18,335 52 Total ¥121,368 ¥121,420 ¥52Liabilities: (i) Notes and accounts payable–trade ¥ 24,203 ¥ 24,203 ¥ – (ii) Electronically recorded obligations–operating 10,417 10,417 – (iii) Income taxes payable 2,251 2,251 Total ¥ 36,871 ¥ 36,871 ¥ –
* Allowances for doubtful accounts on notes and accounts receivable–trade have been omitted.
Millions of yen
March 31, 2016Book carrying
amount Fair valueUnrealized gains
(losses)
Assets: (i) Cash and deposits ¥ 59,547 ¥ 59,547 ¥ – (ii) Notes and accounts receivable–trade 49,692 Allowance for doubtful accounts* (332)
49,360 49,360 – (iii) Short-term investment securities and investment securities 16,750 16,804 54 Total ¥125,657 ¥125,711 ¥54Liabilities: (i) Notes and accounts payable–trade ¥ 19,627 ¥ 19,627 ¥ – (ii) Electronically recorded obligations–operating 14,134 14,134 – (iii) Income taxes payable 2,543 2,543 Total ¥ 36,304 ¥ 36,304 ¥ –
50 TOPPAN FORMS REPORT 2016
(a) Matters related to calculating the fair value of �nancial instruments and marketable securities
Assets(i) Cash and deposits and (ii) Notes and accounts receivable–trade As these instruments are settled within a short term and their fair values
and book values are assumed similar, book values are used as fair values. (iii) Short-term investment securities and investment securities The fair values of equity securities are determined by their prices on stock
exchanges. The fair value of bonds is determined according to prices indicated on bond exchanges or the values indicated by the �nancial institutions handling these transactions.
Liabilities(i) Notes and accounts payable–trade, (ii) Electronically recorded obligations–operating and (iii) Income taxes payable As these instruments are settled within a short term and their fair values
and book values are assumed similar, book values are used as fair values.
(b) Financial instruments for which fair value is not readily determinableBook carrying amount
Millions of yenThousands of
U.S. dollars
March 31 2015 2016 2016
Non-listed equity securities ¥952 ¥1,320 $11,710
These instruments are not included in (iii) Short-term investment securities and investment securities, as no market value is available, and their fair value is not readily determinable. The Company recognized impairment loss on non-listed equity securities of ¥5 million (US$40 thousand) for the �scal year ended March 31, 2016.
(c) Redemption schedule for monetary assets and the expected maturity values of marketable securities
Millions of yen
March 31, 2015 Within 1 yearOver 1 year but
within 5 yearsOver 5 years but
within 10 years Over 10 years
Cash and deposits ¥ 53,680 ¥ – ¥ – ¥–Notes and accounts receivable–trade 49,522 – – –Short-term investment securities and investment securities – Held-to-maturity debt securities (Corporate bonds) 1,100 1,680 2,208 – – Other securities that have maturity dates (Others) – 280 619 –Total ¥104,302 ¥1,960 ¥2,827 ¥–
Millions of yen
March 31, 2016 Within 1 yearOver 1 year but
within 5 yearsOver 5 years but
within 10 years Over 10 years
Cash and deposits ¥ 59,547 ¥ – ¥ – ¥–Notes and accounts receivable–trade 49,692 – – –Short-term investment securities and investment securities – Held-to-maturity debt securities (Corporate bonds) 1,300 1,900 1,909 – – Other securities that have maturity dates (Others) – 709 356 –Total ¥110,539 ¥2,609 ¥2,265 ¥–
Thousands of U.S. dollars
March 31, 2016Book carrying
amount Fair valueUnrealized gains
(losses)
Assets: (i) Cash and deposits $ 528,462 $ 528,462 $ – (ii) Notes and accounts receivable–trade 440,998 Allowance for doubtful accounts* (2,950)
438,048 438,048 – (iii) Short-term investment securities and investment securities 148,650 149,133 483 Total $1,115,160 $1,115,643 $483Liabilities: (i) Notes and accounts payable–trade $ 174,182 $ 174,182 $ – (ii) Electronically recorded obligations–operating 125,436 125,436 – (iii) Income taxes payable 22,568 22,568 Total $ 322,186 $ 322,186 $ –
* Allowances for doubtful accounts on notes and accounts receivable–trade have been omitted.
TOPPAN FORMS REPORT 2016 51
Thousands of U.S. dollars
March 31, 2016 Within 1 yearOver 1 year but
within 5 yearsOver 5 years but
within 10 years Over 10 years
Cash and deposits $528,462 $ – $ – $–Notes and accounts receivable–trade 440,998 – – –Short-term investment securities and investment securities – Held-to-maturity debt securities (Corporate bonds) 11,537 16,862 16,937 – – Other securities that have maturity dates (Others) – 6,291 3,159 –Total $980,997 $23,153 $20,096 $–
(d) Redemption schedule for lease obligations and other interest-bearing debt
Millions of yen
March 31, 2015 Within 1 yearOver 1 year but
within 2 yearsOver 2 years but
within 3 yearsOver 3 years but
within 4 yearsOver 4 years but
within 5 years Over 5 years
Short-term loans payable ¥182 ¥ – ¥ – ¥ – ¥– ¥–Lease obligations 30 23 17 14 2 –Total ¥212 ¥23 ¥17 ¥14 ¥2 ¥–
Millions of yen
March 31, 2016 Within 1 yearOver 1 year but
within 2 yearsOver 2 years but
within 3 yearsOver 3 years but
within 4 yearsOver 4 years but
within 5 years Over 5 years
Short-term loans payable ¥171 ¥ – ¥ – ¥ – ¥ – ¥–Lease obligations 56 53 46 34 22 –Total ¥227 ¥53 ¥46 ¥34 ¥22 ¥–
Thousands of U.S. dollars
March 31, 2016 Within 1 yearOver 1 year but
within 2 yearsOver 2 years but
within 3 yearsOver 3 years but
within 4 yearsOver 4 years but
within 5 years Over 5 years
Short-term loans payable $1,516 $ – $ – $ – $ – $–Lease obligations 493 468 412 304 196 –Total $2,009 $468 $412 $304 $196 $–
13. Marketable and Investment Securities
The following information relates to the aggregate book carrying amount and fair value of securities as of March 31, 2015 and 2016.
(1) “Held-to-maturity debt securities” whose market price or quotations are availableMillions of yen
March 31, 2015Book carrying
amount Fair valueUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. ¥ – ¥ – ¥ – (ii) Corporate bonds 3,108 3,178 70 (iii) Others – – –
3,108 3,178 70
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. – – – (ii) Corporate bonds 1,894 1,877 (17) (iii) Others – – –
1,894 1,877 (17) Total ¥5,002 ¥5,055 ¥ 53
52 TOPPAN FORMS REPORT 2016
Millions of yen
March 31, 2016Book carrying
amount Fair valueUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. ¥ – ¥ – ¥ – (ii) Corporate bonds 3,452 3,531 79 (iii) Others – – –
3,452 3,531 79
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. – – – (ii) Corporate bonds 1,677 1,652 (25) (iii) Others – – –
1,677 1,652 (25) Total ¥5,129 ¥5,183 ¥ 54
Thousands of U.S. dollars
March 31, 2016Book carrying
amount Fair valueUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. $ – $ – $ – (ii) Corporate bonds 30,636 31,340 704 (iii) Others – – –
30,636 31,340 704
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheets (i) Government bonds, Municipal bonds, etc. – – – (ii) Corporate bonds 14,883 14,661 (222) (iii) Others – – –
14,883 14,661 (222) Total $45,519 $46,001 $ 482
(2) “Other securities” whose market price or quotations are availableMillions of yen
March 31, 2015Market value
(= Book carrying amount) Acquisition costUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheets (i) Share stocks ¥ 9,873 ¥4,819 ¥5,054 (ii) Bond certi�cate – – – (iii) Others 1,395 1,295 100
11,268 6,114 5,154
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheets (i) Share stocks 19 21 (2) (ii) Bond certi�cate – – – (iii) Others 1,993 2,012 (19)
2,012 2,033 (21) Total ¥13,280 ¥8,147 ¥5,133
TOPPAN FORMS REPORT 2016 53
Millions of yen
March 31, 2016Market value
(= Book carrying amount) Acquisition costUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheet (i) Share stocks ¥ 7,311 ¥4,073 ¥3,238 (ii) Bond certi�cate – – – (iii) Others 1,952 1,864 88
9,263 5,937 3,326
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheet (i) Share stocks 447 498 (51) (ii) Bond certi�cate – – – (iii) Others 1,911 2,175 (264)
2,358 2,673 (315) Total ¥11,621 ¥8,610 ¥3,011
Thousands of U.S. dollars
March 31, 2016Market value
(= Book carrying amount) Acquisition costUnrealized gains
(losses)
Other securities whose market price or quotations exceed their book carrying amount on the consolidated balance sheet (i) Share stocks $ 64,887 $36,147 $28,740 (ii) Bond certi�cate – – – (iii) Others 17,321 16,544 777
82,208 52,691 29,517
Other securities whose market price or quotations do not exceed their book carrying amount on the consolidated balance sheet (i) Share stocks 3,963 4,418 (455) (ii) Bond certi�cate – – – (iii) Others 16,960 19,305 (2,345)
20,923 23,723 (2,800) Total $103,131 $76,414 $26,717
Investments held in unlisted stocks with acquisition book value of ¥297 million and ¥598 million (US$5,306 thousand) as at March 31, 2015 and 2016, respec-tively, are not included in the above disclosures of fair value since no quoted market prices are available, meaning that ascertaining fair values is considered to be extremely di�cult.
(3) “Other securities” sold in the current �scal yearMillions of yen
March 31, 2015Proceeds from sales of
“Other securities”Gain on sales of
“Other securities”Loss on sales of
“Other securities”
(i) Share stocks ¥ 110 ¥ 56 ¥ – (ii) Bond certi�cate – – – (iii) Others 3,200 138 14 Total ¥3,310 ¥194 ¥14
Millions of yen
March 31, 2016Proceeds from sales of
“Other securities”Gain on sales of
“Other securities”Loss on sales of
“Other securities”
(i) Share stocks ¥ 925 ¥618 ¥– (ii) Bond certi�cate – – – (iii) Others 2,698 18 9 Total ¥3,623 ¥636 ¥9
Thousands of U.S. dollars
March 31, 2016Proceeds from sales of
“Other securities”Gain on sales of
“Other securities”Loss on sales of
“Other securities”
(i) Share stocks $ 8,209 $5,483 $ – (ii) Bond certi�cate – – – (iii) Others 23,940 162 81 Total $32,149 $5,645 $81
54 TOPPAN FORMS REPORT 2016
14. Pension and Severance Plans
(1) Outline of pension and severance plans For de�ned bene�t pension plans, the Company and its consolidated subsidiaries adopted pension regulations or pension plans based on pension regulations, a contract-type de�ned bene�t corporate pension plan, and a lump sum pension plan. The Company and its nine major consolidated subsidiaries in Japan adopt a contract-type de�ned bene�t corporate pension plan. The entire bene�t amounts of these 10 companies have been transferred to a de�ned bene�t corporate pension for external contributions. At certain consolidated subsidiaries, the lump sum pension plan has been transitioned to a de�ned contribution pension plan as of March 2015. In addition, certain consolidated subsidiaries participated in the East Japan Stationery Sales Pension Fund, a diversi�ed welfare pension, through a multiem-ployer pension plan. The fund’s dissolution was approved on November 27, 2015, and the fund is in process of the fund dissolution. No additional payments for the fund’s dissolution is expected.
(2) De�ned-bene�t pension plans(a) Reconciliation of de�ned bene�t obligation at beginning and end of period
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
De�ned bene�t obligation at beginning of period ¥31,852 ¥35,950 $319,042Cumulative e�ects of change in accounting policies 3,984 – –Restated balance 35,836 35,950 319,042Service costs 1,947 1,954 17,343Interest costs 323 320 2,838Actuarial gains and losses incurred this period 107 3,660 32,479Retirement bene�ts paid (1,545) (1,422) (12,617)Increase due to business combination 99 – –
Decrease in liability for retirement bene�ts due to change of the plan to de�ned contribution pension plan (820) – –Others 3 0 4De�ned bene�t obligation at end of period ¥35,950 ¥40,462 $359,089
(b) Reconciliation of balance of plan assets at beginning and end of period
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Plan assets at beginning of period ¥28,772 ¥33,620 $298,373Expected return on plan assets 761 764 6,783Actuarial gains and losses incurred this period 3,249 (885) (7,857)Employer contribution 2,370 2,915 25,873Retirement bene�ts paid (1,532) (1,411) (12,533)Plan assets at end of period ¥33,620 ¥35,003 $310,639
(c) Reconciliation of de�ned bene�t obligation and plan assets with net de�ned bene�t liability and asset re�ected on the consolidated balance sheets
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
De�ned bene�t obligation for funded plan ¥ 35,819 ¥ 40,325 $ 357,875Plan assets at fair value (33,620) (35,003) (310,639)
2,199 5,322 47,236De�ned bene�t obligation for unfunded plan 130 137 1,214Net amount of de�ned bene�t liability and asset on the consolidated balance sheets ¥ 2,329 ¥ 5,459 $ 48,450
Net de�ned bene�t liability ¥ 2,329 ¥ 5,459 $ 48,450Net de�ned bene�t asset – – –Net amount of de�ned bene�t liability and asset on the consolidated balance sheets ¥ 2,329 ¥ 5,459 $ 48,450
(4) “Loss on valuation of investment securities”In the �scal year ended March 31, 2015, there was no loss on valuation of investment securities. The Company recognized impairment loss on non-listed equity securities of ¥5 million (US$40 thousand) for the �scal year ended March 31, 2016.
TOPPAN FORMS REPORT 2016 55
(d) Components of net periodic bene�t cost
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Service costs ¥1,947 ¥1,954 $17,343Interest costs 323 320 2,838Expected return on plan assets (761) (764) (6,783)Expense for actuarial losses 650 337 2,992Amortization of prior service costs (348) (348) (3,086)Net periodic bene�t cost of de�ned bene�t plan ¥1,811 ¥1,499 $13,304Gain on changing to the de�ned contribution pension plan ¥ (28) ¥ – $ –
(e) Remeasurements of de�ned bene�t plans, net of taxes
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Prior service costs ¥ (348) ¥ (348) $ (3,086)Actuarial gains and losses 3,840 (4,208) (37,343)
¥3,492 ¥(4,556) $(40,429)
(f ) Composition of items included in remeasurements of de�ned bene�t plans, net of taxes
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Unrecognized prior service costs ¥2,128 ¥ 1,780 $ 15,800Unrecognized actuarial gains and losses 793 (3,414) (30,302)
¥2,921 ¥(1,634) $(14,502)
(g) Plan asset information(i) Breakdown of plan assets Ratio of each component of plan assets to the amount of total pension assets
2015 2016
Bond certi�cate 38.9% 49.2%Share stocks 35.5 17.5Alternative investments 12.0 20.6General account 8.6 8.3Cash and deposits 5.0 4.4
100.0 100.0
A retirement bene�t trust established for the corporate pension plan accounts for 7.9% and 6.5% of plan assets for the �scal years ended March 31, 2015 and 2016, respectively. Also, a hedge fund investment is given as an alternative investment.
(ii) Method for calculating long-term rate of return on plan assets In calculating the long-term rate of return on plan assets, the Company considers the current distribution of plan assets and the projected future distribution as
well as the current rates of return for each of the assets included under plan assets and the expected future rates of return for these assets.
(h) Assumptions for making actuarial calculationsAssumptions used for making actuarial calculations in the �scal years ended March 31, 2015 and 2016 (shown using weighted average)
2015 2016
Discount rate 0.9% 0.1%Expected return on plan assets 2.9 2.5Expected rate of salary increases 4.4 4.3
(3) De�ned contribution pension systemThe required contribution amounts for the consolidated subsidiaries were ¥4 million and ¥53 million (US$470 thousand) for the �scal years ended March 31, 2015 and 2016, respectively.
56 TOPPAN FORMS REPORT 2016
15. Income Taxes
(1) The signi�cant components of deferred tax assets and liabilities
Millions of yenThousands of
U.S. dollars
2015 2016 2016
Deferred tax assets Provision for bonuses ¥ 1,553 ¥ 1,630 $ 14,466 Social insurance premiums on provision for bonuses 224 235 2,086 Enterprise tax 242 281 2,494 Net de�ned bene�t liability 958 2,082 18,473 Provision for directors’ retirement bene�ts 56 56 500 Allowance for doubtful accounts 172 111 988 Unrealized loss on investment securities 227 156 1,387 Unrealized loss on golf club membership 128 116 1,026 Asset retirement obligations 162 170 1,508 Net operating loss carry forwards of subsidiaries 387 361 3,205 Impairment loss 11 12 107 Others 793 837 7,424 Subtotal of deferred tax assets 4,913 6,047 53,664 Valuation allowance (483) (635) (5,633) Deferred tax assets, total 4,430 5,412 48,031Deferred tax liabilities Undistributed earnings of foreign subsidiaries (43) (38) (338) Valuation di�erence on available-for-sale securities (1,641) (930) (8,249) Depreciation (173) (161) (1,430) Others (140) (130) (1,162) Deferred tax liabilities, total (1,997) (1,259) (11,179)Deferred tax assets, net* ¥ 2,433 ¥ 4,153 $ 36,852
* Deferred tax assets are stated net in the following accounts of the consolidated balance sheets.
Millions of yenThousands of
U.S. dollars
2015 2016 2016
Current assets—deferred tax assets ¥ 2,222 ¥2,370 $21,029Long-term assets—deferred tax assets 1,237 1,993 17,684Long-term liabilities—deferred tax liabilities (1,026) (210) (1,861)Deferred tax assets, net ¥ 2,433 ¥4,153 $36,852
(2) The reconciliation between the statutory tax rate and the Company’s e�ective tax rate2015 2016
Statutory tax rate 35.6% 33.1%Non-deductible entertainment expense 1.1 1.0Non-taxable dividend income (0.3) (0.1)Per capita portion of resident tax 0.8 0.6Future declining of the enterprise tax rate 3.5 1.4Others (0.4) (0.9)E�ective tax rate 40.3% 35.1%
(3) Revision of values for deferred tax assets and deferred tax liabilities due to change in statutory tax rateFollowing the establishment of the Act for Partial Revision of the Income Tax Act and the Act for Partial Revision of the Local Taxation Act in the National Diet on March 29, 2016, the statutory tax rate used to calculate deferred tax assets and deferred tax liabilities in the consolidated �scal year under review (limited to those to be eliminated on or after April 1, 2016) has been changed from 32.2% to 30.9% for those expected taxes to be recovered or repaid from April 1, 2016 to March 31, 2018, and 30.6% for those expected taxes to be recovered or repaid on or after April 1, 2018. As a result, net deferred tax assets (deferred tax assets less deferred tax liabilities) decreased ¥169 million (US$1,497 thousand), income taxes–deferred (recorded under the Company’s expenses) increased ¥202 million (US$1,789 thousand), valuation di�erence on available-for-sale securities increased ¥42 million (US$374 thousand), and remeasurements for retirement bene�t plans decreased ¥9 million (US$83 thousand).
TOPPAN FORMS REPORT 2016 57
16. Asset Retirement Obligations
(1) Overview of asset retirement obligationsAsset retirement obligations of the Company are mainly statutory obligations with regard to the removal of property, plant and equipment in connection with real estate leasing agreements to restore them to their original condition.
(2) Method of calculating asset retirement obligationsAsset retirement obligations are calculated using the estimated useful life of assets and related yield on Japanese government bonds.
(3) Change in total asset retirement obligations during the consolidated �scal year under reviewIn the previous consolidated �scal year, the Company made revisions to the estimated restoration cost, and the asset retirement obligation increased by ¥175 million. Also, in the current consolidated �scal year, the Company made revisions to the estimated useful life of the assets based on additional information, and the asset retirement obligation increased by ¥32 million (US$284 thousand).
Millions of yenThousands of
U.S. dollars
Year ended March 31 2015 2016 2016
Balance at beginning of period ¥500 ¥688 $6,102Increase due to purchases of property, plant and equipment 86 72 637Changes due to ful�llment of asset retirement obligations (79) – –Increase due to changes in estimates 175 32 284Increases in other items 6 4 41Balance at end of period ¥688 ¥796 $7,064
17. Segment Information
(1) Outline of reporting segmentsThe Company’s reporting segments are composed of those individual business units for which separate �nancial information is available, and which are used by members of the Board of Directors for making decisions regarding the allocation of management resources, and to allow the periodic examination and evaluation of operating performance. The Company’s planning department based at its headquarters prepares the overall plan by product and service. The Company has separated its reporting segments on the basis of product and service into two reporting segments: printing business and merchandise business. The printing business consists of the printing of business forms and data printing services. The merchandise business is the sale of supplies and equipment and provision of services related to the printing business, business information operating services and other.
(2) Methods of calculating sales, income or losses, assets, liabilities and other items by reporting segmentAccounting policies and procedures followed by reporting segments are in principal the same as those indicated in “Note 2. Summary of Signi�cant Accounting Policies”. Pro�ts of reporting segments are based on operating income.
(3) Information related to amounts of sales, income or losses, assets, liabilities and other items for individual reporting segmentsSegment information for the �scal year ended March 31, 2015 is as follows:
Millions of yen
March 31, 2015Printing
businessMerchandise
business Total Adjustment *1 Consolidated *3
Net sales: Outside customers ¥204,286 ¥61,600 ¥265,886 ¥ – ¥265,886 Inter-segment – – – – – Total 204,286 61,600 265,886 – 265,886
Segment pro�ts 14,104 3,018 17,122 (4,515) 12,607 Segment assets ¥163,139 ¥22,154 ¥185,293 ¥39,065 ¥224,358
Others: Depreciation*2 ¥ 7,517 ¥ 304 ¥ 7,821 ¥ 812 ¥ 8,633 Increase of “Property, plant and equipment” and “Intangible assets” *2 5,611 137 5,748 529 6,277
*1 Adjustment to segment pro�ts of ¥(4,515) million includes corporate-level expenses that are not allocated to individual reporting segments. Such expenses comprise mainly non-segment speci�c general and administrative expenses. Adjustment to segment assets includes corporate-level assets of ¥39,065 million, which consist principally of surplus investment funds (term deposits and demand deposits) and long-term investment funds (such as marketable securities) which are non-segment speci�c. Adjustment to increase of “Property, plant and equipment” and “Intangible assets” of ¥529 million includes Group’s systems division’s assets, such as software.
*2 Depreciation and Increase of “Property, plant and equipment” and “Intangible assets” include long-term prepaid expenses.*3 Segment pro�ts are reconciled to the operating income included in the consolidated statements of income.
58 TOPPAN FORMS REPORT 2016
Segment information for the �scal year ended March 31, 2016 is as follows:
Millions of yen
March 31, 2016Printing
businessMerchandise
business Total Adjustment *1 Consolidated *3
Net sales: Outside customers ¥212,860 ¥60,357 ¥273,217 ¥ – ¥273,217 Inter-segment – – – – – Total 212,860 60,357 273,217 – 273,217
Segment pro�ts 15,627 2,808 18,435 (4,760) 13,675 Segment assets ¥166,568 ¥23,800 ¥190,368 ¥38,244 ¥228,612
Others: Depreciation*2 ¥ 8,085 ¥ 286 ¥ 8,371 ¥ 788 ¥ 9,159 Increase of “Property, plant and equipment” and “Intangible assets” *2 6,703 274 6,977 639 7,616
Thousands of U.S. dollars
March 31, 2016Printing
businessMerchandise
business Total Adjustment *1 Consolidated *3
Net sales: Outside customers $1,889,064 $535,653 $2,424,717 $ – $2,424,717 Inter-segment – – – – – Total 1,889,064 535,653 2,424,717 – 2,424,717
Segment pro�ts 138,681 24,924 163,605 (42,247) 121,358 Segment assets $1,478,239 $211,220 $1,689,459 $339,401 $2,028,860
Others: Depreciation*2 $ 71,753 $ 2,534 $ 74,287 $ 6,995 $ 81,282 Increase of “Property, plant and equipment” and “Intangible assets” *2 59,488 2,435 61,923 5,668 67,591
*1 Adjustment to segment pro�ts of ¥(4,760) million (US$(42,247) thousand) includes corporate-level expenses that are not allocated to individual reporting segments. Such expenses comprise mainly non-segment speci�c general and administrative expenses. Adjustment to segment assets includes corporate-level assets of ¥38,244 million (US$339,401 thousand), which consist principally of surplus investment funds (term deposits and demand deposits) and long-term investment funds (such as marketable securities) which are non-segment speci�c. Adjustment to increase of “Property, plant and equipment” and “Intangible assets” of ¥639 million (US$5,668 thousand) includes Group’s systems division’s assets, such as software.
*2 Depreciation and Increase of “Property, plant and equipment” and “Intangible assets” include long-term prepaid expenses.*3 Segment pro�ts are reconciled to the operating income included in the consolidated statements of income.
(4) Related information(a) Products and service Information of each product and service is presented in (3) above.(b) Geographic region(i) Sales Sales information is not presented geographically since sales to customers
located in Japan exceeds 90% of the net sales recorded in the consolidated statements of income.
(ii) Property, plant and equipment Property, plant and equipment information is not presented geographically
since property, plant and equipment located in Japan exceeds 90% of the property, plant and equipment recorded in the consolidated balance sheets.
(c) Main customersMarch 31, 2015 Millions of yen Related segment
Customer
Tokyo Electric Power Co., Inc ¥35,058Printing and Merchandise business
March 31, 2016 Millions of yen Related segment
Customer
Tokyo Electric Power Co., Inc ¥39,018Printing and Merchandise business
March 31, 2016Thousands of
U.S. dollars Related segment
Customer
Tokyo Electric Power Co., Inc $346,277Printing and Merchandise business
TOPPAN FORMS REPORT 2016 59
(5) Impairment loss on assets by reportable segmentNot applicable.
(6) Amortization of goodwill and unamortized balance by reportable segmentAmortization of goodwill and unamortized balance by reportable segment for the �scal years ended March 31, 2015 and 2016 are as follows:
Millions of yen
March 31, 2015Printing
businessMerchandise
business Total Adjustment Consolidated
Amortization of goodwill ¥ 102 ¥– ¥ 102 ¥– ¥ 102Balance at end of current period ¥1,126 ¥– ¥1,126 ¥– ¥1,126
Millions of yen
March 31, 2016Printing
businessMerchandise
business Total Adjustment Consolidated
Amortization of goodwill ¥219 ¥– ¥219 ¥– ¥219Balance at end of current period ¥910 ¥– ¥910 ¥– ¥910
Thousands of U.S. dollars
March 31, 2016Printing
businessMerchandise
business Total Adjustment Consolidated
Amortization of goodwill $1,945 $– $1,945 $– $1,945Balance at end of current period $8,076 $– $8,076 $– $8,076
(7) Gain on negative goodwill by reportable segmentNot applicable.
18. Related-Party Transactions
There are several related party transactions, including sales to Toppan Printing Co., Ltd., which owns 60.7% of the common stock of the Company. The transactions were made at arm’s-length prices that are considered to be equivalent to market prices. Sales to Toppan Printing Co., Ltd., for the �scal years ended March 31, 2015 and 2016 amounted to ¥10,767 million and ¥10,512 million (US$93,293
thousand), respectively. The balance of notes and accounts receivable from Toppan Printing Co., Ltd., as of March 31, 2015 and 2016 amounted to ¥2,135 million and ¥2,038 million (US$18,084 thousand), respectively. There are no related-party transactions by consolidated subsidiaries of the Company.
19. Earnings per Share Information
The computation of net income per share is based on the weighted-average number of common shares outstanding during each �scal year. Treasury stocks held during these �scal years are excluded.
Yen U.S. dollars
March 31 2015 2016 2016
Net assets per share ¥1,457.40 ¥1,475.11 $13.09Net income per share 70.59 84.33 0.75
As the Company had no diluted securities as at March 31, 2015 and 2016, the Company does not disclose amounts of diluted net income per share for the �scal years ended March 31, 2015 and 2016.
Basic net income per share
Millions of yenThousands of
U.S. dollars
March 31 2015 2016 2016
Pro�t attributable to owners of parent ¥ 7,835 ¥ 9,361 $83,074Pro�t attributable to owners of parent not available to common shareholders – – –Pro�t attributable to owners of parent available to common shareholders 7,835 9,361 83,074Weighted-average number of shares outstanding (thousand shares) 110,997 110,996 –
60 TOPPAN FORMS REPORT 2016
21. Schedule of Borrowings
Millions of yenThousands of
U.S. dollars
2015
2016
2016
Average interest rate (%)
Due date of payment
Short-term loans payable ¥182 ¥171 $1,516 1.27% –Lease obligations 30 56 493 – –Lease obligations (without current portion) 56 156 1,381 – From 2017 to 2021
¥268 ¥383 $3,390
(1) “Average interest rate” represents the weighted-average interest rate of term-end borrowings.(2) As interest included in lease payments is allocated on the straight-line method to each �scal year, the average interest rate of lease obligations is omitted. (3) The projected repayment amount of long-term debt (excluding debt scheduled to be repaid within one year) within �ve years after the consolidated balance
sheet date (i.e., March 31, 2016) are as follows:
Over 1 year and not
exceeding 2 years
Over 2 years and not
exceeding 3 years
Over 3 years and not
exceeding 4 years
Over 4 years and not
exceeding 5 years
Over 1 year and not
exceeding 2 years
Over 2 years and not
exceeding 3 years
Over 3 years and not
exceeding 4 years
Over 4 years and not
exceeding 5 years
Millions of yen Thousands of U.S. dollars
Lease obligations ¥53 ¥46 ¥34 ¥22 $468 $412 $304 $196
22. Schedule of Asset Retirement Obligations
As the balances of asset retirement obligations at the beginning and end of the current consolidated �scal year were less than one percent of the total balance of liabilities and net assets of the same periods, the asset retirement obligations details disclosure has been omitted.
20. Schedule of Bonds
Not applicable.
TOPPAN FORMS REPORT 2016 61
62 TOPPAN FORMS REPORT 2016
CORPORATE INFORMATIONAs of March 31, 2016
PRINCIPAL SUBSIDIARIES AND AFFILIATESAs of March 31, 2016
Name Country Main BusinessIssued Capital(Thousands)
Equity Held by the Company (%)
TOPPAN FORMS CENTRAL PRODUCTS CO., LTD.
Japan Manufacture of business forms ¥100,000 100.0
TOPPAN FORMS TOKAI CO., LTD.
Japan Manufacture of business forms ¥100,000 100.0
TOPPAN FORMS OPERATION CO., LTD.
Japan Operation and administration of computers ¥100,000 100.0
TECHNO TOPPAN FORMS CO., LTD.
Japan Sale, maintenance, and repair of o�ce equipment ¥100,000 100.0
TOPPAN FORMS LOGISTICS AND SERVICES CO., LTD.
Japan Delivery and keeping consignment of products ¥ 50,000 100.0
TOPPAN FORMS KANSAI CO., LTD.
JapanDistribution, delivery, and storage services Manufacture of business forms ¥ 50,000 100.0
TOPPAN FORMS NISHINIHON CO., LTD.
JapanDistribution, delivery, and storage services Manufacture of business forms ¥ 30,000 100.0
TOPPAN FORMS (SANYO) CO., LTD.
Japan Manufacture of business forms ¥ 50,000 100.0
TOSCO CORPORATION Japan Capital alliance and business tie-up ¥100,000 69.7
TF PAYMENT SERVICE CO., LTD. JapanInformation handling service and Settlement-of-accounts processing business by using Internet
¥810,000 83.2
J-SCube Inc. JapanDocument outsourcing services, equipment solutions, and sta� services
¥100,000 100.0
TOPPAN FORMS (HONG KONG) LIMITED
Hong KongManufacture of business forms Sale of plastic cards, computer supplies, DPS, and o�ce automation machines
HK$94,000 100.0*1
TOPPAN FORMS (S) PTE LTD SingaporeManufacture and sale of business forms, DPS, and sale of machines for processing business forms
S$1,226 100.0*2
DATA PRODUCTS TOPPAN FORMS LTD.
ThailandManufacture and sale of business forms, DPS, IC cards, and security-related products
Bht133,650 48.0*3
Total number of subsidiaries: 23Total number of a�liates: 3
*1 Indirectly owned through T.F. Company Ltd.*2 52.3% directly owned by the Company and 47.7% indirectly owned through T.F. Company Ltd.*3 Although equity held by the Company is less than 50%, the Company has substantial control over Data Products Toppan Forms Ltd., making it a subsidiary.
Company Name
TOPPAN FORMS CO., LTD.
Head O�ce
1-7-3 Higashi Shimbashi,Minato-ku, Tokyo 105-8311, Japan
Founded
May 1955
Capital
¥11,750 million
Number of Employees
1,879 (Non-Consolidated)12,049 (Consolidated)
Corporate Website
http://www.toppan-f.co.jp/english/
Contact
Public Relations DepartmentTel: 81-3-6253-5730Fax: 81-3-6253-5627
TOPPAN FORMS REPORT 2016 63
0.4%10.5%
12.5%
16.9%
59.7%
Brokers / Dealers in Financial Products
Other JapaneseCorporations
Japanese Individuals and Others
Japanese Financial Institutions
Foreign Institutionsand Individuals
4 5 6 1 2 37 8 9 10 11 12 4 5 6 1 2 37 8 9 10 11 12 4 5 6 1 2 37 8 9 10 11 12 4 5 6 1 2 37 8 9 10 11 12FY2013 FY2014 FY2015 FY2016
2,000
1,500
1,000
500
0
Stock Price(Yen)
Trading Volume(Thousand shares)
20,000
15,000
10,000
5,000
0
INVESTOR INFORMATIONAs of March 31, 2016
Stock Price Range and Trading Volume
Shareholdings by Type of Shareholder
Stock Listing
Tokyo Stock Exchange
Stock Code
7862
Fiscal Year
From April 1 to March 31
General Meeting of Shareholders
June
Capital Stock
Authorized: 400,000,000 sharesIssued: 115,000,000 shares
Stock Transaction Unit
100 shares
Independent Certi�ed Public Accountant
PricewaterhouseCoopers Aarata(Member Firm of PricewaterhouseCoopers LLP)
Transfer Agent
Mitsubishi UFJ Trust and Banking Corporation
Number of Shareholders
6,873
Major Shareholders
NameNumber of Shares Held (Thousands)
Percentage of Share Ownership (%)
TOPPAN PRINTING CO., LTD. 67,419 60.74
Japan Trustee Services Bank, Ltd. 6,796 6.12
The Master Trust Bank of Japan, Ltd. 2,985 2.69
CBNY-GOVERNMENT OF NORWAY 2,086 1.88
Toppan Forms Employees Shareholding Association 2,046 1.84
Trust & Custody Services Bank, Ltd. 1,642 1.48
J.P. MORGAN BANK LUXEMBOURG S.A. 1,444 1.30
UBS SECURITIES LLC-HFS CUSTOMER SEGREGATED ACCOUNT 1,360 1.23
CHASE MANHATTAN BANK GTS CLIENTS ACCOUNT ESCROW 1,019 0.92
The Nomura Trust and Banking Co., Ltd. 713 0.64
Note: Figures in the table above do not include the 4,003 thousand shares of treasury stock held by the Company on March 31, 2016. These shares were also excluded when calculating percentage of share ownership.
1-7-3 Higashi Shimbashi,Minato-ku, Tokyo 105-8311, Japanhttp://www.toppan-f.co.jp/english/InquiriesPublic Relations DepartmentTEL. 81-3-6253-5730 © TOPPANFORMS 2016 1 Printed in Japan
TOPPA
N FO
RMS REPO
RT 2016
COM16019-1608N-010
INTEGRATION AND
ENHANCEMENT
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