Given the complex and diverse issues facing society today, where predicting the future is difficult, companies are required to be more flexible than ever and take on new challenges. TOPPAN has constantly evolved the printing technologies it has cultivated since its establishment in 1900, to address a multitude of social challenges and provide new value to society.

To support the digital innovation of our society and customers and drive our own digital transformation, building a better, sustainable future, we will continue to embrace the DNA passed down since our founding, which entails making proactive use of the latest technologies based on the key concepts of Digital Transformation (DX) and Sustainable Transformation (SX).

In addition to DX/SX-related businesses, we are working on one of our medium-term management objectives: to launch more research themes for future growth and create new businesses centered around business models and technologies that will give us a competitive edge.

We will continue to promote synergy within the Group and open innovation with various companies and research institutions while honing our sensitivity to societal changes and taking the lead in shaping future value as a company committed to creating social value. This will allow us to contribute to the realization of a sustainable society.

Our R&D system includes the R&D Strategy Office, which is on a mission to build a cross-departmental technological administrative base; the Business Development Division, which possesses research, new business development, and strategic investment functions and aims for new business creation in areas of disruptive innovation; and the technical development departments of each operating company. These divisions and departments collaborate on R&D efforts while keeping an eye on the market.

In advancing research and development, we will also continue to create value that responds to the rapidly changing society and environment by strategically utilizing intellectual property, harnessing synergies within the TOPPAN Group, and driving co-creation with customers and external research institutions.

For the transformation of our business portfolio, we have designated fiscal years 2020-2022 as the Foundation Building Phase and 2023-2025 as the Result Delivery Phase. Starting from fiscal 2020, we have defined and prioritized investment areas for R&D resources to advance research and development for new business creation.

To set the stage for achieving results in fiscal 2023 and beyond, we are enhancing our R&D budget for priority investment areas that respond to social issues and technological trends, as well as for infrastructure development that supports these areas. This enhancement is aimed at boosting our technological capabilities and accelerating the creation of new businesses.