Japanese printing giant Toppan Holdings is ramping up its global expansion strategy, earmarking 50 billion yen ($326 million) for acquisitions through March 2026, as it shifts focus from its declining domestic printing business, Nikkei reported.
The Tokyo-based company has already deployed half of its 100 billion yen M&A budget, including a recent purchase of a Swedish ID management firm. Chief Financial Officer Takashi Kurobe indicated that future deals would target security and eco-friendly packaging sectors.
The strategic pivot comes as Toppan seeks to boost its international sales to 50% of total revenue, up from 35% last year. The company projects operating profit will climb 18% to 88 billion yen this fiscal year, driven by recovering packaging operations and growth in data-driven credit card services.
To improve shareholder returns, Toppan has accelerated stock buybacks, already surpassing its initial 100 billion yen target. The company is also dismantling its strategic shareholdings, a traditional Japanese business practice, having reduced cross-held positions from 231 to 188 companies.
A new Singapore-based financial subsidiary, housing $500 million in assets, will help fund the overseas expansion while managing currency risks. The company targets a return on equity of 5% by fiscal 2025, with ambitions to reach 8% in the following medium-term plan.
