Interim report
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Consolidated Financial Results for the Three Months Ended June 30 , 2026 [ Japanese GAAP ] Company name : TOPPAN Holdings Inc. Code number : 7911 Accounting Standards FASF MEMBERSHIP August 12 , 2026 Stock exchange listing : Tokyo Stock Exchange URL : https://www.holdings.toppan.com/en/ Representative : Satoshi Oya , Representative Director , President & COO Contact : Takashi Kurobe , Director , Senior Managing Executive Officer & CFO Scheduled date of commencing dividend payments : - Availability of supplementary briefing material on quarterly financial results : Available Phone : + 81-3-3835-5665 Schedule of quarterly financial results briefing session : Scheduled ( for securities analysts and institutional investors ) ( Amounts of less than one million yen are rounded down . ) 1. Consolidated Financial Results for the Three Months Ended June 30 , 2026 ( April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( % indicates changes from the previous corresponding period . ) Non - GAAP Operating profit Net sales Operating profit Ordinary profit Three months ended June 30 , 2026 June 30 , 2025 Million yen 457,318 397,561 % Million yen % Million yen 15.0 ( 1.3 ) 25,410 16,189 57.0 20,024 % 47.9 Million yen % 22,963 53.1 15.3 13,541 20.1 15,002 ( 9.9 ) ( Note ) Comprehensive income : Three months ended June 30 , 2026 : ¥ 60,688 million [ − % ] Three months ended June 30 , 2025 : ¥ 2,045 million [ ( 96.9 ) % ] Non - GAAP profit attributable to Profit attributable to EBITDA owners of parent owners of parent Three months ended Million yen % Million yen % June 30 , 2026 25,719 175.0 21,674 131.3 Million yen 43,108 June 30 , 2025 9,352 16.8 9,370 ( 4.8 ) 32,269 % 33.6 2.6 Non - GAAP basic earnings per share Basic earnings per share Diluted earnings per share Three months ended Yen Yen Yen June 30 , 2026 76.89 June 30 , 2025 91.24 32.35 32.41 ( Note ) Non - GAAP operating profit is a profit indicator that indicates the ability to generate earnings from the core business , obtained by adjusting operating profit for one - time expenses or expenses with little relationship to the core business , such as " amortization of goodwill and intangible assets related to acquisitions , ” “ M & A - related expenses , " and " stock compensation - related expenses . " expenses , " Non - GAAP profit attributable to owners of parent is a profit indicator obtained by adjusting profit attributable to owners of parent for “ amortization of goodwill and intangible assets related to acquisitions , ” “ M & A - related " stock compensation - related expenses , ” “ restructuring - related expenses , ” “ gain or loss on sale of investment securities , " and other related tax expenses and non - controlling interests . EBITDA is a profit indicator that indicates cash generating ability , obtained by adjusting operating profit for “ depreciation of property , plant and equipment ” and “ amortization of goodwill and intangible assets . ”
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(2) Consolidated Financial Position Total assets Net assets Equity ratio As of Million yen Million yen % June 30, 2026 2,571,679 1,453,426 53.7 March 31, 2026 2,558,184 1,410,067 52.3 (Reference) Equity: As of June 30, 2026: ¥1,379,862 million As of March 31, 2026: ¥1,337,193 million 2. Dividends Annual dividends 1st quarter-end 2nd quarter-end 3rd quarter-end Year-end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 – 28.00 – 30.00 58.00 Fiscal year ending March 31, 2027 – Fiscal year ending March 31, 2027 (Forecast) 29.00 – 29.00 58.00 (Note) Revision to the forecast for dividends announced most recently: No 3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2027 (April 1, 2026 to March 31, 2027) (% indicates changes from the previous corresponding period.) Net sales Non-GAAP operating profit Operating profit Ordinary profit Million yen % Million yen % Million yen % Million yen % Full year 1,925,000 6.6 101,000 7.2 80,000 19.2 83,500 10.3 Non-GAAP profit attributable to owners of parent Profit attributable to owners of parent EBITDA Non-GAAP basic earnings per share Basic earnings per share Million yen % Million yen % Million yen % Yen Yen Full year 75,000 5.2 55,000 (15.1) 175,000 13.0 270.82 198.57 (Note) Revision to the financial results forecast announced most recently: No
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* Notes: (1) Significant changes in the scope of consolidation during the period: Yes Newly included: – Excluded: 2 companies (TOPPAN Edge Inc. and 1 other company) (Note) For details, please refer to “Business Combinations, Etc.” on page 13 of the attached document. (2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: No (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1) above: No 3) Changes in accounting estimates: No 4) Retrospective restatement: No (Note) For details, please refer to “Notes on Changes in Accounting Policies” on page 10 of the attached document. (4) Total number of issued shares (common shares) 1) Total number of issued shares at the end of the period (including treasury shares): June 30, 2026: 294,706,240 shares March 31, 2026: 294,706,240 shares 2) Total number of treasury shares at the end of the period: June 30, 2026: 14,113,701 shares March 31, 2026: 12,766,325 shares 3) Average number of shares during the period: Three months ended June 30, 2026: 281,883,230 shares Three months ended June 30, 2025: 289,111,034 shares (Note) The number of treasury shares subtracted for calculating the total number of treasury shares at the end of the period and the average number of shares during the period (three months) includes the Company’s shares owned by the ESOP trust. * Review of the attached quarterly consolidated financial statements by certified public accountants or audit firms: No * Explanation of the proper use of financial results forecast and other notes The earnings forecasts and other forward -looking statements herein are based on certain assumptions relating to economic situations and market trends deemed reasonable as of the date of publication of this document. Actual results may differ from these forecasts due to a wide range of factors.
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1 Table of Contents 1. Overview of Operating Results, Etc. ...................................................................................................................... 2 (1) Overview of Operating Results .......................................................................................................................... 2 (2) Overview of Financial Position .......................................................................................................................... 4 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ................... 4 2. Quarterly Consolidated Financial Statements and Primary Notes .......................................................................... 5 (1) Quarterly Consolidated Balance Sheets ............................................................................................................. 5 (2) Quarterly Consolidated Statements of Income and Comprehensive Income ..................................................... 7 Quarterly Consolidated Statements of Income ................................................................................................... 7 Quarterly Consolidated Statements of Comprehensive Income ......................................................................... 9 (3) Notes to the Quarterly Consolidated Financial Statements .............................................................................. 10 (Notes on Going Concern Assumption) ........................................................................................................... 10 (Notes in the Case of Significant Changes in Shareholders’ Equity) ............................................................... 10 (Notes on Changes in Accounting Policies) ..................................................................................................... 10 (Notes on Statements of Cash Flows) .............................................................................................................. 10 (Notes on Segment Information, Etc.) ............................................................................................................. 11 (Business Combinations, Etc.) ......................................................................................................................... 13
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2 1. Overview of Operating Results, Etc. (1) Overview of Operating Results During the three months under review (from April 1, 2026 to June 30, 2026), the business outlook remained uncertain given geopolitical risks, including the Iran conflict, as well as foreign exchange rate fluctuations. In addition, mandatory disclosures and regulations on sustainability, including decarbonization across the entire supply chain and resource circulation, have been gaining full momentum globally. Furthermore, the rapid acceleration of the implementation across society of next -generation digital technologies, including artificial intelligence (AI), and the growth in the AI semiconductor and digital infrastructure markets supporting these technologies is expected to further increase market opportunities. On the other hand, the surge in power demand and environmental impact associated with the proliferation of AI, along with rising cyber risks and ethical challenges, have further heightened the importance of appropriate risk management and corporate governance. Amid this environment, under the key concept of “True Value Transformation” established in its new Medium Term Plan starting this fiscal year, the Group will refine business, human resources, and capital to provide true value to the world. Furthermore, with the objective of executing a strategy that integrates management resources and customer bases, and accelerating the creation of synergies and the enhancement of competitiveness, the Company merged TOPPAN Inc., TOPPAN Edge Inc., and TOPPAN Digital Inc. in April 2026. In addition, the Company has introduced a business unit structure with three objectives: strengthen individual businesses by aligning operations and organizations and clarifying strategies for each business , implement business-specific management to enable optimal allocation of business resources, and create further synergies. By transitioning from the previous structure of area-based divisions to a business-based management framework, the Company will reinforce its businesses and expand its solution offerings into adjacent domains. The name of the Information segment and the definitions of its categories have been revised in accordance with the growth strategy based on the new Medium Term Plan starting this fiscal year. However, there has been no change to the treatment of reportable segments. Segment name Categories Before change Information & Communication Digital Business BPO Secure Media Communication Media After change Information Solutions Security IoT Solutions Marketing BPO Securities & Business Printing Information Printing Information (Other) As a result, for the three months ended June 30, 2026, net sales increased by 15.0% from the same period of the previous fiscal year to ¥457.3 billion. Operating profit increased by 47.9% to ¥20.0 billion and ordinary profit increased by 53.1% to ¥22.9 billion. Profit attributable to owners of parent increased by 131.3% to ¥21.6 billion. In addition, non-GAAP operating profit increased by 57.0% to ¥25.4 billion, while non-GAAP profit attributable to owners of parent increased by 175.0% to ¥25.7 billion. Trends by business segment during the three months ended June 30, 2026 are as follows.
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3 Information Solutions In the secur ity business, sales rose, reflecting the positive impact of the previous fiscal year’s acquisition of dzcard Group, an entity based in Thailand that provides smart card solutions throughout Asia. In the IoT s olutions business, sales increased due to the acquisition of new projects primarily in the domestic public sector. In the marketing business, sales decreased following the absence of one -time projects handled in the previous fiscal year. Going forward, the Company will aim to expand orders while shifting toward large-scale, high-margin projects by realizing higher value-added services and higher unit pricing. In the BPO business, sales remained at the same level , supported by the acquisition of projects mainly in the public sector. In securities and business printing, while domestic sales declined due to structural reforms, overall sales increased thanks to the expansion of overseas financial printing services. In the information printing business, sales decreased due to declines in publication and commercial printing. Going forward, the Company will continue to drive structural reforms to improve profitability in this business, including optimizing its product mix and consolidating sites. Additionally, the Company established the “AI Innovation Research Center,” an endowed research organization dedicated to advancing AI research and its social implementation, in collaboration with the University of Tokyo. By further strengthening the cutting-edge AI-related technologies and R&D capabilities of the University of Tokyo, and leveraging the operational expertise and data cultivated by private enterprise s and other organizations across diverse business domains, this center aims to support implementation across society. Through these efforts, the Company seeks to contribute to strengthening Japan’s industrial competitiveness while realizing a society that prioritizes well-being and where AI enriches people’s lives. As a result, net sales in the Information Solutions segment increased by 0.5% from the same period of the previous fiscal year to ¥211.2 billion, operating profit increased by 23.3% to ¥6.2 billion, and non-GAAP operating profit increased by 11.9% to ¥7.6 billion. Living & Industry In the packaging business, as the shift to environmentally friendly packaging materials gains momentum, highlighted by the start of application of the Packaging and Packaging Waste Regulation (PPWR) in the EU in August 2026, the Company is strengthening the global supply system for sustainable (SX) packaging, including barrier film manufacturing. Overseas, sales increased, due to strong demand in Asia, along with contributions from acquisitions in the previous year of an Americas-based thermoformed and flexible packaging business and Irplast S.p.A., a manufacturer and seller of high-environmental-performance films. In Japan, under the sustainable brand SMARTS™, expansion was seen in SX packaging employing water -based flexographic printing under the SX Production Method™, a packaging production technology that significantly reduces solvent use, resulting in increased sales. In the décor materials business, overseas, the Company expanded sales of decorative sheets in Europe and North America and cultivated markets in emerging countries, while in Japan, the Company saw strong orders for environmentally friendly decorative sheets and the expace™ brand for spatial design, alongside the contribution from the acquisition of Arrowers Corp. in January 2026, resulting in increased sales in this business as a whole. Regarding the material cost increases driven by the situation in the Middle East, the Company minimized the impact through price pass-throughs, while mitigating procurement concerns by leveraging its global procurement network. As a result, net sales in the Living & Industry segment increased by 57.3% from the same period of the previous fiscal year to ¥214.2 billion, operating profit increased by 56.7% to ¥14.6 billion, and non-GAAP operating profit increased by 85.4% to ¥18.5 billion.
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4 Electronics In the semiconductor business, against a backdrop of advancements in AI and other digital technologies and the resulting growth of the semiconductor market, the Company has acquired multiple customer qualifications for its advanced FC-BGAs, high-density semiconductor packaging substrates, while demand for telecommunications - related applications has also increased. In addition, to meet the demand for large -scale, multilayer, high -end products for cutting-edge semiconductors, the new manufacturing line that commenced mass production in January 2026 at the Niigata Plant, which is the Company’s production base for FC -BGA substrates, has been operating smoothly. Meanwhile, the Company is preparing for the startup of a pilot production line for advanced semiconductor packaging at the Ishikawa Plant, which is a new site for technology development a nd mass production. Furthermore, the Company established a new plant in Singapore to produce FC -BGA substrates in partnership with Broadcom Inc., and is currently making preparations to expand its production capacity through a three-site structure comprising the Singapore, Niigata, and Ishikawa Plants. Overall sales for this business decreased due to the transition of Tekscend Photomask Corp. to an equity- method associate, although sales increased when excluding this factor. In the display- related business, sales increased, led by higher sales of anti -reflective films. Additionally, the Company completed the sale of all its shares in Giantplus Technology Co., Ltd., which was an equity- method associate, in June 2026. As a result, net sales for the Electronics segment decreased by 33.4% year on year to ¥37.6 billion, operating profit increased by 3.2%, to ¥9.3 billion, and non-GAAP operating profit increased by 2.4% to ¥9.3 billion. (2) Overview of Financial Position Total assets as of the end of the first quarter of the fiscal year under review increased by ¥13.4 billion from the end of the previous fiscal year to ¥2,57 1.6 billion. This is attributable mainly to increases of ¥21.3 billion in investment securities, ¥6.1 billion in construction in progress, ¥6.0 billion in raw materials and supplies, ¥5.5 billion in work in process, ¥3.7 billion in cash and deposits, and ¥3.4 billion in merchandise and finished goods, despite a decrease of ¥36.5 billion in notes and accounts receivable - trade, and contract assets. Liabilities decreased by ¥29.8 billion from the end of the previous fiscal year to ¥1,118.2 billion. This primarily reflects decreases of ¥28.8 billion in deposits received, which is included in ‘other’ under current liabilities, and ¥18.4 billion in provision for bonuses, despite an increase of ¥22.5 billion in short-term borrowings. Net assets increased by ¥4 3.3 billion from the end of the previous fiscal year to ¥1,45 3.4 billion. This is attributable mainly to increases of ¥24.2 billion in valuation difference on available-for-sale securities, ¥14.5 billion in foreign currency translation adjustment, and ¥11.2 billion in retained earnings, despite an increase of ¥6.3 billion in treasury shares. (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information No change has been made to the forecasts for financial results announced on May 14, 2026. The Company will appropriately disclose any change that occurs.
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5 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheets (Million yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 438,866 442,652 Notes and accounts receivable - trade, and contract assets 478,429 441,927 Securities 2,500 1,000 Merchandise and finished goods 79,401 82,829 Work in process 37,824 43,345 Raw materials and supplies 64,312 70,319 Other 79,833 83,296 Allowance for doubtful accounts (7,523) (8,551) Total current assets 1,173,644 1,156,820 Non-current assets Property, plant and equipment Buildings and structures, net 211,998 213,766 Machinery, equipment and vehicles, net 201,854 198,640 Land 136,539 136,622 Construction in progress 64,354 70,460 Other, net 39,014 39,074 Total property, plant and equipment 653,763 658,564 Intangible assets Goodwill 103,844 104,018 Other 177,636 177,846 Total intangible assets 281,481 281,864 Investments and other assets Investment securities 340,051 361,385 Other 109,443 113,175 Allowance for doubtful accounts (199) (130) Total investments and other assets 449,295 474,431 Total non-current assets 1,384,540 1,414,859 Total assets 2,558,184 2,571,679
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6 (Million yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 161,168 169,694 Short-term borrowings 125,066 147,618 Current portion of long-term borrowings 17,814 17,399 Income taxes payable 13,614 7,426 Provision for bonuses 38,409 19,993 Provision for share awards 7,420 7,420 Other provisions 8,459 8,832 Other 257,300 210,704 Total current liabilities 629,253 589,090 Non-current liabilities Bonds payable 130,000 130,000 Long-term borrowings 218,039 217,333 Lease liabilities 31,319 31,859 Retirement benefit liability 41,412 42,933 Other provisions 10,477 8,805 Other 87,612 98,230 Total non-current liabilities 518,862 529,162 Total liabilities 1,148,116 1,118,253 Net assets Shareholders’ equity Share capital 104,986 104,986 Capital surplus 119,211 119,211 Retained earnings 990,765 1,001,968 Treasury shares (45,227) (51,566) Total shareholders’ equity 1,169,735 1,174,599 Accumulated other comprehensive income Valuation difference on available-for-sale securities 55,987 80,285 Deferred gains or losses on hedges (690) (619) Foreign currency translation adjustment 94,443 109,034 Remeasurements of defined benefit plans 17,717 16,562 Total accumulated other comprehensive income 167,457 205,263 Non-controlling interests 72,874 73,563 Total net assets 1,410,067 1,453,426 Total liabilities and net assets 2,558,184 2,571,679
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7 (2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated Statements of Income Three Months Ended June 30 (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Net sales 397,561 457,318 Cost of sales 302,258 346,578 Gross profit 95,302 110,740 Selling, general and administrative expenses Freight costs 7,124 7,277 Provision of allowance for doubtful accounts 283 1,163 Remuneration, salaries and allowances for directors (and other officers) 29,860 25,258 Provision for bonuses 3,767 9,459 Provision for bonuses for directors (and other officers) 135 132 Retirement benefit expenses 1,286 765 Provision for retirement benefits for directors (and other officers) 87 75 Travel expenses 1,589 1,641 Research and development expenses 4,537 4,713 Other 33,088 40,228 Total selling, general and administrative expenses 81,761 90,715 Operating profit 13,541 20,024 Non-operating income Interest income 1,259 1,837 Dividend income 1,735 1,516 Share of profit of entities accounted for using equity method 546 3,056 Foreign exchange gains 4,233 – Other 1,158 1,205 Total non-operating income 8,933 7,615 Non-operating expenses Interest expenses 1,583 2,637 Loss on derivatives 3,723 – Other 2,167 2,038 Total non-operating expenses 7,473 4,676 Ordinary profit 15,002 22,963
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8 (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Extraordinary income Gain on sale of non-current assets 74 59 Gain on valuation of investment securities 418 – Gain on sale of investment securities 3,051 799 Reversal of losses on sales of shares of subsidiaries and associates – 873 Gain on revision of retirement benefit plan – 577 Gain on sale of shares of subsidiaries and associates – 135 Insurance claim income – 36 Gain on reversal of environmental expenses 4 26 Reversal of special retirement expenses 23 – Subsidy income 19 – Total extraordinary income 3,591 2,508 Extraordinary losses Loss on sale and retirement of non-current assets 374 275 Loss on tax purpose reduction entry of non-current assets 19 – Loss on sale of investment securities 383 395 Loss on valuation of investment securities 59 100 Impairment losses – 61 Extra retirement payments 22 185 Loss on liquidation of subsidiaries and associates 84 – Loss on sale of shares of subsidiaries and associates 0 – Total extraordinary losses 944 1,018 Profit before income taxes 17,648 24,453 Income taxes - current 2,722 5,287 Income taxes - deferred 1,198 (3,472) Total income taxes 3,921 1,814 Profit 13,727 22,638 Profit attributable to non-controlling interests 4,357 964 Profit attributable to owners of parent 9,370 21,674
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9 Quarterly Consolidated Statements of Comprehensive Income Three Months Ended June 30 (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Profit 13,727 22,638 Other comprehensive income Valuation difference on available-for-sale securities 7,135 24,253 Deferred gains or losses on hedges 3,183 71 Foreign currency translation adjustment (20,436) 15,765 Remeasurements of defined benefit plans, net of tax (313) (1,143) Share of other comprehensive income of entities accounted for using equity method (1,251) (897) Total other comprehensive income (11,682) 38,049 Comprehensive income 2,045 60,688 Comprehensive income attributable to Comprehensive income attributable to owners of parent (827) 59,480 Comprehensive income attributable to non-controlling interests 2,873 1,208
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10 3) Notes to the Quarterly Consolidated Financial Statements (Notes on Going Concern Assumption) There is no relevant information. (Notes in the Case of Significant Changes in Shareholders’ Equity) The Company acquired 1,454,400 treasury shares for ¥6,507 million during the three months ended June 30, 2026 in accordance with a resolution of the Board of Directors at its meeting held on May 14, 2026. As a result of this acquisition, treasury shares increased by ¥6,339 million, reaching ¥51,566 million as of June 30, 2026. (Notes on Changes in Accounting Policies) (Application of the Practical Guidelines on Accounting for Financial Instruments) The Company has applied the “Practical Guidelines on Accounting for Financial Instruments” (Transferred Guidance No. 9, March 11, 2025) from the beginning of the first quarter of the fiscal year under review. This application has no impact on the quarterly consolidated financial statements. (Notes on Statements of Cash Flows) The Company did not prepare quarterly consolidated statements of cash flows for the three months ended June 30, 2026. Depreciation (including amortization of intangible assets excluding goodwill) and amortization of goodwill for the three months are as follows. (Million yen) For the three months ended June 30, 2025 For the three months ended June 30, 2026 Depreciation 17,866 20,470 Amortization of goodwill 860 2,614
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11 (Notes on Segment Information, Etc.) I. For the three months ended June 30, 2025 1. Information on net sales and profit (loss) by reportable segment (Million yen) Reportable segment Adjustment (Note) Total Information Solutions Living & Industry Electronics Subtotal Net sales Net sales to outside customers 206,641 134,347 56,572 397,561 － 397,561 Inter-segment net sales or transfers 3,613 1,871 41 5,526 (5,526) － Total 210,254 136,218 56,614 403,087 (5,526) 397,561 Segment profit (Operating profit) 5,049 9,322 9,035 23,407 (9,865) 13,541 Amortization of goodwill and intangible assets related to acquisitions 1,243 502 8 1,754 － 1,754 M&A-related expenses 106 6 － 112 － 112 Stock compensation-related expenses 428 186 67 682 99 781 Non-GAAP operating profit 6,827 10,017 9,110 25,956 (9,766) 16,189 (Note) The adjustment for segment profit includes corporate expenses in the amount of - ¥9,912 million not allocated to the reportable segments. The relevant corporate expenses are mainly costs relating to the Company’s head office sections and basic research sect ions. Non-GAAP operating profit is a profit indicator that indicates the ability to generate earnings from the core business, obtained by adjusting operating profit for one-time expenses or expenses with little relationship to the core business, such as “a mortization of goodwill and intangible assets related to acquisitions,” “M&A-related expenses,” and “stock compensation-related expenses.”
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12 II. For the three months ended June 30, 2026 1. Information on net sales and profit (loss) by reportable segment (Million yen) Reportable segment Adjustment (Note) Total Information Solutions Living & Industry Electronics Subtotal Net sales Net sales to outside customers 207,520 212,189 37,608 457,318 － 457,318 Inter-segment net sales or transfers 3,770 2,106 76 5,953 (5,953) － Total 211,291 214,295 37,685 463,272 (5,953) 457,318 Segment profit (Operating profit) 6,226 14,605 9,327 30,159 (10,134) 20,024 Amortization of goodwill and intangible assets related to acquisitions 1,413 3,949 － 5,363 － 5,363 M&A-related expenses － 22 － 22 － 22 Non-GAAP operating profit 7,639 18,577 9,327 35,544 (10,134) 25,410 (Note) The adjustment for segment profit includes corporate expenses in the amount of -¥10,063 million not allocated to the reportable segments. The relevant corporate expenses are mainly costs relating to the Company’s head office sections and basic research sections. Non- GAAP operating profit is a profit indicator that indicates the ability to generate earnings from the core business, obtained by adjusting operating profit for one-time expenses or expenses with little relationship to the core business, such as “ amortization of goodwill and intangible assets related to acquisitions” and “M&A-related expenses.” 2. Change in reportable segment (Change in name of reportable segment) Effective from the beginning of the first quarter of the fiscal year under review, the name of the reportable segment previously referred to as “Information & Communication” has been changed to “Information Solutions.” This change represents a revision to the segment name only and has no impact on segment information. Segment information for the first quarter of the previous fiscal year is also presented using the new segment name. (Method of measuring reportable segment profit or loss) To more appropriately evaluate and manage the performance of each reportable segment, the Company introduced a business unit structure at the beginning of the first quarter of the fiscal year under review, transitioning from the area - based divisional struc ture to the business-based management framework. Accordingly, the allocation method for inter - segment expenses has been revised. The impact of this change on segment information is immaterial.
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13 (Business Combinations, Etc.) (Merger of consolidated subsidiaries) At its meeting held on March 13, 2025, the Company’s Board of Directors resolved to implement an absorption-type merger with TOPPAN Inc. as the surviving company and TOPPAN Edge Inc. and TOPPAN Digital Inc. as the absorbed companies. On September 25, 2025, these wholly owned subsidiaries of the Company concluded an absorption -type merger agreement concerning the said absorption-type merger, and the absorption-type merger was carried out with an effective date of April 1, 2026. 1. Overview of the transaction (1) Names of subsidiaries merged and their businesses Name of surviving company: TOPPAN Inc. Business: Information Solutions, Living & Industry, Electronics, etc. Name of absorbed company: TOPPAN Edge Inc. Business: Information solutions, hybrid BPO, communication media, and security products Name of absorbed company: TOPPAN Digital Inc. Business: Developing DX business strategies for the entire TOPPAN Group, creating and promoting new DX businesses, DX -related research & development, providing IT infrastructure (2) Date of the business combination April 1, 2026 (3) Legal form of the business combination An absorption-type merger in which TOPPAN Inc. is the surviving company and TOPPAN Edge Inc. and TOPPAN Digital Inc. are the absorbed companies. (4) Name of the entity after the business combination TOPPAN Inc. (5) Other matters This absorption-type merger was carried out in order to consolidate the Group’s management resources and customer base, generate group-wide synergies, and enhance competitiveness across its information and other business segments, ultimately driving further Group growth. 2. Overview of accounting treatment applied The transaction has been processed as a transaction under common control in accordance with the Accounting Standard for Business Combinations (ASBJ Statement No. 21, January 16, 2019) and the Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, January 16, 2019).