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TOPPAN Holdings (TOPP.Y) 2025 Earnings Call Presentation
2025-09-05 01:30
Financial Performance & Targets - Information & Communication business achieved net sales of JPY 929.3 billion and a non-GAAP operating profit of JPY 50.2 billion in FY2024, with an operating margin of 5.4%[7] - The FY2025 plan aims to increase profit through scaling the digital business and structural reforms of existing businesses[9] - The company projects sales of JPY 907.0 billion and a 7% non-GAAP operating margin for FY2025, and targets sales of JPY 921.0 billion with a non-GAAP operating margin of over 10% by FY2030[30] - The company aims to increase the portion contributed by growth fields to 60% by FY2030, with sales of JPY 542.0 billion and a non-GAAP operating margin of 10%+[30] Business Strategy & Growth Initiatives - The company is shifting from providing standalone digital solutions to "continuous services" that combine multiple solutions, including operational support, to establish a cyclical business model[17, 19] - The company is concentrating on target markets and bolstering proposal activities, focusing on Security, Marketing DX, BPO, and IoT/Auto-ID, with a combined SAM of approximately JPY 6.1 trillion in 2030 and a market growth rate of approximately 7.6%[20, 21] - The company is integrating TOPPAN, TOPPAN Edge, and TOPPAN Digital to strengthen and optimize resources, aiming to visualize the skills of approximately 6,000 DX personnel and reallocate resources[23, 24] - The company is strengthening AI utilization and AI service development to enhance internal productivity and accelerate the provision of high-value-added services incorporating AI[25, 26] Security DX - The company aims to expand its security DX business by shifting from a physical-centric business to a more digital one, centered on data management in secure environments[52, 53] - The company estimates the security DX market potential in Japan to be nearly JPY 2 trillion with a CAGR of approximately 10%[67] - The company is leveraging businesses and manufacturing facilities acquired through M&A to expand the payment and personal ID businesses, focusing on the Global South[76, 78] Marketing DX - The company aims to contribute to "subtraction (reducing costs through marketing BPR)" and "addition (generating profit by enhancing customer experience)" in clients' businesses through marketing DX[94] - The company estimates the marketing DX market with an estimated SAM of JPY 1.3 trillion in FY2024 and a CAGR of 7.7%[96, 97] - The company aims to achieve JPY 100 billion in sales for Marketing DX by FY2030 by providing end-to-end marketing DX and accelerating talent development[117] BPO - The company's BPO business delivers value by leveraging strengths in highly-specialized BPR consulting and business process design capabilities, rooted in an understanding of systems and industries cultivated in the public and financial sectors[140] - The company estimates the SAM of BPO for complex operations is approximately JPY 630 billion, with a CAGR of approximately 5.0%[143] - The company intends to expand sales revenue from JPY 77.0 billion to JPY 83.0 billion towards 2030, growing complex operations at a CAGR of 10% and shifting the proportion of complex operations from 40% to 60%, aiming to enhance profitability and raise operating profit margin from 8% to 15%[164, 165] IoT / Auto-ID - The company is shifting from single items and a one-time model to integrated packaged services and a continuous model in the IoT/Auto-ID business[173] - The company's mission is to give an ID to everything, generate data, and create customer value to enable a society in which all "things" are linked[178] - The company estimates the 2025 SAM for high-value-added RFID markets to be JPY 252.7 billion, growing to JPY 404.2 billion by 2030, with a CAGR of 9.9%[183]