Consolidated Financial Results for the Fiscal Year Ended March 31, 2013 [J-GAAP]May 13, 2013

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
General meeting of shareholders:June 27, 2013
Dividend payment date:June 28, 2013
Securities report issuing date:June 27, 2013
Preparation of earnings presentation material: None
Holding of earnings announcement:
None*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2013
(April 1, 2012 – March 31, 2013)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Operating Income

Ordinary Income

Net Income (Loss)

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2013

1,446,607(4.0)

35,7795.2

40,318

9.4

19,217–

Year ended March 31, 2012

1,507,227(5.2)

34,015(49.8)

36,843(41.3)(16,356)–

Note: Comprehensive income (loss):Year ended March 31, 2013: ¥42,121 million (–%)
Year ended March 31, 2012: ¥(17,340) million (–%)

Net Income(Loss)
per Share

Diluted Net
Incomeper Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2013

29.84

29.79

2.2

2.5

2.5

Year ended March 31, 2012(25.39)

–

(1.8)

2.3

2.3

Reference: Equity in earnings or losses of affiliates: Year ended March 31, 2013: ¥3,012 million
Year ended March 31, 2012: ¥345 million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2013

1,578,976

937,055

56.6

1,386.86

As of March 31, 2012

1,608,806

914,21354.2

1,352.71

Reference: Stockholders’ equity: As of March 31, 2013: ¥893,124 million As of March 31, 2012: ¥871,229 million(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at Endof the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2013

100,497(72,587)(36,236)

212,062

Year ended March 31, 2012

108,603(80,126)(32,833)

216,279

2. Dividends
Dividends per Share
First
Quarter-end

SecondThird
Quarter-end Quarter-end

Year-end

AnnualTotal Dividends(Annual)Dividend
Payout Ratio(Consolidated)

Dividends to
Net Assets
Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Year ended March 31, 2012

–

16.00

–

16.00

32.00

20,627–

2.3

Year ended March 31, 2013

–

16.00

–

16.00

32.00

20,625

107.2

2.3

Year ending March 31, 2014
(Forecast)

–

16.00

–

16.00

32.00

89.6

3. Consolidated earnings forecasts for the year ending March 31, 2014
(April 1, 2013 – March 31, 2014)(Percentages show change from corresponding year-ago period.)
Operating
IncomeNet Sales
Full year

Ordinary Income

Net Income
per Share

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,530,000

5.8

48,00034.2

49,00021.5

23,000

19.7

35.71

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
Yes
4) Restatement of revisions:No
Note: DNP changed depreciation methods starting in this fiscal year, and this change falls under the
category of “changes in accounting policies that are difficult to distinguish from changes in accounting
estimates.” For further details, see the section titled, “4. Consolidated financial statements, (5) Notes
regarding consolidated financial statements,” on page 27.
(3) Number of common shares issued and outstanding
1) Number of common shares outstanding at endof each period (including treasury shares)
2) Number of treasury shares at end of eachperiod3) Average number of shares outstanding during
the period

As of March 31,
2013

700,480,693
shares

As of March 31,
2012

700,480,693
shares

As of March 31,
2013

56,490,329
shares

As of March 31,
2012

56,417,765
sharesYear ended
March 31, 2013

644,029,540
sharesYear ended
March 31, 2012

644,102,179
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2013
(April 1, 2012 – March 31, 2013)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating Income
Ordinary Income
Net Income (Loss)(Loss)Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2013

926,142(4.8)(3,988)–19,88484.8

14,933–

Year ended March 31, 2012

972,638(9.6)(4,678)–

10,760(65.2)(18,504)–

Net Income (Loss)
per Share

Diluted Net Income
per Share

Yen

Yen

Year ended March 31, 2013

23.17

–

Year ended March 31, 2012(28.71)–(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2013

1,247,963

659,47152.8

1,023.17

As of March 31, 2012

1,265,933

650,775

51.4

1,009.60

Reference: Stockholders’ equity: As of March 31, 2013: ¥659,471 million As of March 31, 2012: ¥650,775 million* Presentation of audit status
These consolidated financial results are exempt from auditing procedures based on the Financial
Instruments and Exchange Act. The financial statements are being audited based on the Financial
Instruments and Exchange Act at the time of the disclosure of these consolidated financial results.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was prepared. Actual results
may differ significantly due to a variety of factors.
See the “1. Analysis of operating results and financial position (1) Analysis of operating results” on pages
2–4 for information about earnings forecasts.

Contents
1. Analysis of operating results and financial position ............................................................................... 2(1) Analysis of operating results ........................................................................................................... 2(2) Analysis of financial position ........................................................................................................... 4(3) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2013and year ending March 31, 2014 .................................................................................................... 5(4) Business risks ................................................................................................................................. 5
2. Information on DNP ............................................................................................................................... 8
3. Management policies ........................................................................................................................... 12(1) Core policies ................................................................................................................................. 12(2) Medium- and long-term management strategy and key issues .................................................... 12
4. Consolidated financial statements ....................................................................................................... 16(1) Consolidated balance sheets ........................................................................................................ 16(2) Consolidated statements of income and comprehensive income ................................................. 18(3) Consolidated statements of changes in net assets....................................................................... 20(4) Consolidated statements of cash flows......................................................................................... 23(5) Notes regarding consolidated financial statements ...................................................................... 25[Notes on premise of a going concern] .......................................................................................... 25[Basis of presenting consolidated financial statements] ................................................................ 25[Changes in accounting policies] ................................................................................................... 27[Consolidated balance sheets]....................................................................................................... 28[Consolidated statements of income]............................................................................................. 28[Consolidated statements of changes in net assets] ..................................................................... 29[Segment information, etc.]............................................................................................................ 31[Per share information] .................................................................................................................. 34
	
  	
  	
  [Significant subsequent events]………………………………………………………………………….34
5. Non-consolidated financial statements ................................................................................................ 36(1) Non-consolidated balance sheets................................................................................................. 36(2) Non-consolidated statements of income....................................................................................... 37(3) Non-consolidated statements of changes in net assets................................................................ 38(4) Notes regarding non-consolidated financial statements ............................................................... 41[Notes on premise of a going concern] ......................................................................................... 41
6. Changes in directors and officers (as of June 27, 2013)...................................................................... 41

1

1. Analysis of operating results and financial position(1) Analysis of operating results1) Operating results for the fiscal year ended March 31, 2013
During the fiscal year ended March 31, 2013, Japan’s economy showed signs of improvement,
buoyed by restoration demand in the wake of the Tohoku–Pacific Ocean Earthquake, but conditions
remained challenging as a result of the European financial crisis, economic slowdowns in emerging
countries, and other factors.
In the printing industry, despite changes in the media environment, including growth in internet
advertising, overall demand was sluggish and the business environment remained difficult.
In this environment, the DNP Group (DNP) sought to aggressively develop its business and deliverproducts, services, and solutions tailored to the needs of its customers, based on its P&I Solutions
business vision (P&I stands for “printing technology” and “information technology”). DNP also
pursued “Production 21” Activities with the aim of establishing a robust production structure in all
facets of production, including quality, cost, and delivery time. Additionally, DNP worked to secure
earnings through the reorganization of domestic and overseas business structures from thestandpoint of overall optimization and actively pursued business expansion from global and social
perspectives.
As a result of these efforts, consolidated net sales for the year fell 4.0% year on year to ¥1,446.6
billion, consolidated operating income grew 5.2% to ¥35.7 billion, consolidated ordinary income grew
9.4% to ¥40.3 billion, and consolidated net income totaled ¥19.2 billion, up from a net loss of ¥16.3
billion in the previous fiscal year.
The results by segment are as follows.
[PRINTING]
Information Communication
In the Information Communication segment, DNP integrated the three business divisions responsible
for commercial printing, smart cards, and security solutions in October 2012 to bolster mutual
cooperation and establish a structure capable of creating comprehensive solutions. DNP is also
pursuing a business partnership with Nihon Unisys, Ltd. and launched specific initiatives to expand
cloud computing and platform service businesses.
In the Books and Magazines business, amid a continued slump in the publications market, booksales increased thanks to aggressive sales activities, but magazines decreased and overall sales
fell below prior-year levels.
In the Commercial Printing business, despite growth for campaign office and customer center
services and for point-of-purchase (POP) materials for in-store sales promotions, overall sales
decreased year on year on declines for flyers, pamphlets, catalogs, and other printed materials.
In the Business Forms business, smart card sales increased, including SIM cards and electronicmoney, but overall sales decreased year on year on a decline for information processing services(ranging from data entry to printing and shipment of personal mail and other items).
In the Education and Publications Distribution business, despite our efforts to increase sales in thee-book market, paper book sales remained weak and overall sales decreased from the previous
year.
As a result of the above, overall segment sales fell 1.4% year on year to ¥704.7 billion but
operating income grew 2.9% to ¥15.9 billion.

2

Lifestyle and Industrial Supplies
In the Packaging business, sales increased year on year on growth for paper containers, flexible
packaging, PET bottle aseptic filling systems, and other products.
In the Lifestyle Materials business, the domestic housing market is gradually recovering, and sales
increased year on year on continued firm sales of eco-friendly products that use DNP’s proprietary
Electron Beam coating technology.
In the Industrial Supplies business, despite growth for energy-related products, including lithium
ion rechargeable battery soft packages and photovoltaic cell sealing materials, overall sales
decreased year on year on a decline for anti-reflection films used in flat-panel displays.
As a result of the above, overall segment sales fell 0.3% year on year to ¥521.4 billion andoperating income fell 12.0% to ¥28.0 billion.
Electronics
In the Electronics segment, to respond to rapid changes in the business environment, DNP sought toimprove profitability by integrating the two business divisions responsible for display components
and electronic devices in June 2012, and also focused on the development of new products,
including touch panel components.
In the LCD Color Filter business, DNP worked to promote sales of small- and medium-sized filters
for smart phones and tablets, but overall sales decreased year on year as a result of lower global
demand for LCD panels and a decline in sales from transferring operations at the Sakai plant inAugust 2012.
In the Electronic Devices business, conditions remained difficult in the semiconductor market, andsales fell below prior-year levels on declines for photomasks and etched products, including harddisk suspensions.
As a result of the above, overall segment sales fell 19.7% year on year to ¥180.5 billion andoperating losses totaled ¥0.3 billion, versus losses of ¥4.6 billion in the previous fiscal year.
[BEVERAGES]
Beverages
Amid tough market conditions characterized by weak consumer spending and stiffer sales
competition, DNP worked to expand sales of Coca-Cola and Georgia, both core products, and I
LOHAS, a brand of mineral water that uses “ecoru Bottle Shiboru,” a lightweight PET bottle.
As a result of the above, mineral waters and tea beverages increased, but carbonated beverages
decreased, and overall segment sales fell 1.4% year on year to ¥56.2 billion and operating income
fell 64.7% to ¥0.4 billion.

32) Forecast for the fiscal year ending March 31, 2014
Concerning the future outlook, despite some positive signs from government policies to overcome
deflation and promote an economic recovery, DNP also anticipates the effects of a prolonged
financial crisis in Europe and slowdowns in overseas economies, including emerging countries. In
the printing industry, DNP expects an overall increase in costs, including electricity rates and raw
material prices, and a decline in order prices due to weak domestic demand and stiffer competition.
Accordingly, the future outlook remains uncertain.
During the fiscal year ending March 31, 2014, DNP intends to pursue growth initiatives based on
the catch phrase of “creating what everyone will take for granted in the future,” underpinned by its
P&I Solutions business vision. This entails the development of new products and services that solve
the problems that face companies, consumers, and society, and making these products and services
a natural part of their everyday lives. Pursuing these efforts from a global perspective should help
contribute to the sustainable advancement of society. DNP will also continue pursuing ”Production
21” Activities to bolster its business foundation, strive to enhance productivity, and work to secure
earnings and stable business growth over the medium to long term.
For the fiscal year ending March 31, 2014, DNP forecasts consolidated net sales of ¥1,530.0
billion, consolidated operating income of ¥48.0 billion, consolidated ordinary income of ¥49.0 billion,
and consolidated net income of ¥23.0 billion.
(2) Analysis of financial position
1) Assets, liabilities, and net assets
Total assets at the end of the current fiscal year decreased by ¥29.8 billion from the end of theprevious fiscal year to ¥1,578.9 billion, due mainly to decreases in notes and trade receivable andwork in progress.
Total liabilities decreased by ¥52.6 billion from the end of the previous fiscal year to ¥641.9 billion,
due mainly to decreases in notes and trade payable and provision for retirement benefits.
Net assets increased by ¥22.8 billion from the end of the previous fiscal year to ¥937.0 billion, due
mainly to increases in valuation difference on available-for-sale securities and foreign currencytranslation adjustments.
2) Cash flows
Consolidated cash flow provided by operating activities totaled ¥100.4 billion (¥108.6 billion in theprevious fiscal year), due mainly to ¥35.1 billion in income before income taxes and minority
interests and ¥80.2 billion in depreciation.
Cash flow used in investing activities totaled ¥72.5 billion (¥80.1 billion in the previous fiscal year),due mainly to ¥66.2 billion in payments for purchases of property, plant and equipment. Cash flowused in financing activities totaled ¥36.2 billion (¥32.8 billion in the previous fiscal year), due mainly
to ¥20.6 billion in dividends paid.
As a result, cash and cash equivalents at the end of the fiscal year decreased by ¥4.2 billion fromthe end of the previous fiscal year to ¥212.0 billion.

4

The trends in DNP’s cash flow indicators are shown below.
Year ended
March 2009

Year ended
March 2010

Year ended
March 2011

Year ended
March 2012

Year ended
March 2013

Equity ratio (%)

58.5

56.6

55.1

54.2

56.6

Market value-based
equity ratio (%)

37.7

50.3

39.6

33.9

36.1

Debt-to-cash flow ratio(year)

0.9

1.2

1.6

2.1

2.3

Interest coverage ratio(times)

79.7

63.9

52.6

33.2

28.8

Notes:***

Equity ratio: Total stockholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Debt-to-cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest expenses
The above indicators are calculated based on consolidated financial figures.
Market capitalization is calculated as: Fiscal year-end share price × fiscal year-end number of shares
outstanding (excluding treasury stock)
Cash flow: Cash flow provided by/used in operating activities on the consolidated statements of cash flows
Interest-bearing debt: All liabilities on the consolidated balance sheet that accrue interest charges
Interest expenses: Interest expenses on the consolidated statements of cash flows(3) Basic policies regarding the allocation of profits and dividends for the year ended
March 31, 2013 and year ending March 31, 2014
An important policy of the Company is to pass on profits to shareholders.
Profits are allocated based on a policy of paying stable dividends to shareholders and withconsideration for financial results and the dividend payout ratio. For future business expansion, theCompany strives to retain profits and strengthen its financial constitution and management base.
Retained earnings are used to invest in research and development related to new products andtechnologies, to invest in equipment needed for developing new businesses, and to implement
strategic alliances, including mergers and acquisitions. At the same time, the Company considers
flexible capital policies while also taking into consideration market trends as well as its need forcapital. The Company believes that these efforts will contribute to higher profits that can then bepassed on to shareholders in the future.
Based on this policy, the Company intends to pay a year-end dividend of ¥16 per share, which
together with the interim dividend of ¥16 per share brings the full-year dividend to ¥32 per share, thesame as in the previous fiscal year.
The forecast dividend for the fiscal year ending March 31, 2014 is ¥32 per share, the total of a ¥16interim dividend and a ¥16 year-end dividend.
(4) Business risks
The performance and the results of DNP could be significantly affected by a variety of factors andcircumstances that might arise in the future. Because DNP is aware of these risk factors, its policy is
to strive to minimize their potential effects.
The following are the major factors that the DNP management views as risks.

51) The Japanese economy and consumption trends
DNP engages in a wide range of businesses with an extremely large number of corporate customers,
and conducts its business so as not to overly depend on specific customers. DNP does most of its
business in the Japanese market and overseas sales account for about 14% of net sales.
Nevertheless, if consumer spending and other components of domestic demand slump, owing todomestic economic weakness in sympathy with global economic trends, declines in order volume
and unit prices may affect our corporate performance.
2) Changes in the electronics market
Electronics is one of DNP’s most strategically important segments. We intend to establish a stableprofit base for this segment by building business strategies based on meticulous
information-gathering, establishing highly profitable production systems, and focusing on thedevelopment of very competitive, high added value products. Nevertheless, the performance of thissegment could be affected by global fluctuations in the market for display components and/or
semiconductor-related products, such as sudden changes in the supply-demand balance or a sharp
drop in unit prices.
3) Fluctuations in raw material procurement
We work hard to secure stable supplies and maintain optimal price by procuring raw materials suchas printing paper and film from multiple suppliers in Japan and overseas. However, there is somepotential for temporary imbalances between supply and demand due to sharp fluctuations inpetroleum prices, sudden surges in demand from emerging markets, and the impact of majordisasters. We intend to cope with such instances by negotiating with our customers and business
partners. However, if it should become extremely difficult to secure supplies, or if purchasing prices
rise markedly, it is possible that DNP’s performance could be affected.
4) Development of new products, technologies, and services
DNP uses its printing and information technologies to develop and provide to a broad range ofindustries products, technologies, and services that meet the needs of corporate customers andconsumers. In recent years, the pace of technological innovation in these areas has been
accelerating, and customers’ needs have been rapidly diversifying. We believe that in the future,competition in the area of product development will become more intense than ever before, and it ispossible that DNP’s performance could fluctuate significantly due to unforeseeable changes inmarket trends or a shortening of product life cycles.
5) Currency fluctuations
Particularly in fields such as Lifestyle and Industrial Supplies, and Electronics, we are expanding ourdealings in products and services with overseas customers. Because we expect the effects ofcurrency rates to gradually become more important, we use such means as foreign exchange
forward contracts to hedge the risks of currency fluctuations. Nevertheless, it is possible that radical
swings in currency values could have a more serious effect on DNP’s performance.

66) Legal regulations, etc.
We conduct our business based on strict compliance with the law and social ethics. Wherever we
operate, in Japan or overseas, we are subject to a wide variety of legal regulations and restrictions,
including laws related to product liability, monopoly prohibitions, the protection of personal
information, patents, taxes, imports and exports, etc. We can imagine that in the future such
regulations could become even more restrictive. Market and industry trends may change
substantially as a result of deregulation. If that should occur, it is possible that DNP’s businessperformance could be affected by limitations on its business activities, the burden of responding to
the changes, or increased costs.
7) Environmental protection and stricter regulations
DNP is affected by laws and regulations in Japan and other countries regarding energy conservation,
the use of harmful substances, the prevention of air pollution, water quality protection, waste
treatment, and product recycling. Such regulations may be strengthened because of the impact of
global climate trends. In addition, if soil is contaminated by harmful substances and the Company is
faced with the situation of being responsible for assessing and cleaning up the environmental
pollution, then the Company’s business could be substantially affected.
8) Information security and personal information protection
With computer networks and information systems playing an ever-greater role in keeping businessactivity going, the risks of information system malfunctions, breaches of personal information, andother events, owing to software and hardware problems and viruses, have risen. DNP regards theprotection of data and personal information as a top priority. It is doing all it can to protect andmaintain systems and data by strengthening its organization and training employees, but if problems
arise in these areas, then its business activity could be affected.
9) Disasters
We take steps to protect our production equipment and other major facilities from being damaged bydisasters such as fires or earthquakes. In addition, we divide our work among multiple production
bases and make every effort to prevent disasters from causing production stoppages or
disturbances in our ability to supply products. We also use various types of insurance to transfer risk.
Nevertheless, DNP’s performance could be substantially affected in the event of major earthquakes
or other natural disasters, terrorist attacks, disease outbreaks, or other unexpected events thatcause production stoppages or major damage or interference with social infrastructure.

7

2. Information on DNP
DNP includes 149 subsidiaries and 17 affiliated companies. Its two main businesses are Printing andBeverages. The former encompasses Information Communication, Lifestyle and Industrial Supplies,
and Electronics.
The businesses and segments of DNP are outlined below. The four business segments cited
below are the same as the reporting segment categories.
[PRINTING]
Information Communication
Production/sale of textbooks, books, weekly/monthly/quarterly magazines, advertisements, stockand other securities certificates, business forms, and cards; manufacture/sale of businessequipment and systems; and planning/design/construction/management of stores and advertising
media
Major companies
Production

OGUCHI BOOK BINDING & PRINTING CO., LTD.
DNP AV Center Co., Ltd., DNP SP Tech Co., Ltd.
DNP Graphica Co., Ltd., DNP Book Factory Co., Ltd.
DNP Digitalcom Co., Ltd., DNP Data Techno Co., Ltd.
DNP Data Techno Kansai Co., Ltd.
DNP Total Process Warabi Co., Ltd.
DNP Multi Print Co., Ltd., DNP Media Art Co., Ltd.
DNP Media Create Co., Ltd., DNP Media Support Co., Ltd.
DNP Media Techno Kansai Co., Ltd.

Production and sales

Tien Wah Press (Pte.) Ltd.

Sales and services

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD., 2Dfacto, Inc.
DNP Art Communications Co., Ltd., DNP Social Links Co., Ltd.
mobilebook.jp, Inc., Maruzen Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
Maruzen Bookstores Co., Ltd., TRC, Inc.
Junkudo Co., Ltd., Yushodo Co., Ltd.
honto Book Services Co., Ltd., BUNKYODO Co., Ltd.
* Nihon Unisys, Ltd., BOOKOFF CORPORATION LIMITEDAll About, Inc., Kyoiku Shuppan Co., Ltd.
SHUFUNOTOMO Co., Ltd.
The shares of Maruzen CHI Holdings Co., Ltd., Nihon Unisys, Ltd. and
BOOKOFF CORPORATION LIMITED are traded on the Tokyo Stock
Exchange, and the shares of INTELLIGENT WAVE INC., BUNKYODOGROUP HOLDINGS CO., LTD. and All About, Inc. are traded on the
Osaka Securities Exchange’s JASDAQ market.

8Lifestyle and Industrial Supplies
Manufacture/sale of containers and packaging products, packaging equipment and systems, interior
and exterior construction materials, photographic materials, and industrial supplies
Major companies
Production

DNP Technopack Co., Ltd., Sagami Yoki Co., Ltd., DNP IMS Co., Ltd.
DNP Advanced Optics Co., Ltd., DNP Energy System Co., Ltd.,DNP Ellio Co., Ltd., DNP Lifestyle Materials Co., Ltd.

Production and sales

Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya Co., Ltd.
DNP Hoso Co., Ltd., DNP IMS Malaysia Sdn. Bhd.
PT DNP Indonesia, DNP Plastic Molding (Shanghai) Co., Ltd.
DNP Vietnam Co., Ltd., DNP Electronics America, LLC
DNP IMS America Corporation, DNP Denmark A/SDNP IMS Netherlands B.V.

Sales and services

DNP ID System Co., Ltd., DNP Lifestyle Materials Marketing Co., Ltd.
DNP DreamPages Co. Ltd., DNP Field Eyes Co., Ltd.
DNP Photo Imaging Co., Ltd., DNP Fotolusio Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP Photo Imaging Europe SAS

Electronics
Manufacture/sale of precision electronic components and other products
Major companies
Production

DNP LSI Design Co., Ltd., DNP Color Techno Sakai Co., Ltd.
DNP Signage Technology Co., Ltd., DNP Fine Electronics Co., Ltd.
DNP Precision Devices Himeji Co., Ltd.
DNP Micro Technica Co., Ltd.

Production and sales

DNP Color Techno Kameyama Co., Ltd., DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd., DNP Photomask Europe S.p.A.
DNP Photomask Technology Taiwan Co., Ltd.

Sales

DNP Taiwan Co., Ltd.

9

Other companies with multiple types of businesses
Production and sales

DNP Hokkaido Co., Ltd., DNP Tohoku Co., Ltd.
DNP Chubu Co., Ltd., DNP Shikoku Co., Ltd.
DNP Nishinippon Co., Ltd., DNP Fine Chemicals Co., Ltd.
D.N.K. Co., Ltd.
* DIC Graphics Corporation

Sales and services

DNP Logistics Co., Ltd., DNP Trading Co., Ltd.
DNP Accounting Services Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
DNP Asia Pacific Pte. Ltd., DNP Corporation USA
DNP America, LLC, DNP Holding USA Corporation[BEVERAGES]
Beverages
Centered on Hokkaido Coca-Cola Bottling Co., Ltd.; manufacture/sale of soft drinks and juices
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies

10Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers
Information Communication

Lifestyle and Industrial Supplies

Electronics(Production and sales)
DNP IMS Malaysia Sdn. Bhd.
PT DNP Indonesia
DNP Plastic Molding (Shanghai) Co., Ltd.
DNP Vietnam Co., Ltd.
DNP Electronics America, LLC
DNP IMS America Corp.
DNP Denmark A/SDNP IMS Netherlands B.V.

(Production and sales)
Tien Wah Press (Pte.) Ltd.

Beverages(Sales)DNP Taiwan Co., Ltd.

(Production and sales)
DNP Photomask Europe S.p.A.
DNP Photomask Technology Taiwan Co.,Ltd.

(Sales and service provision)
DNP Photo Imaging Europe SAS

Dai Nippon Printing Co., Ltd.

(Production)
OGUCHI BOOK BINDING &PRINTING CO., LTD.
DNP AV Center Co., Ltd.
DNP SP Tech Co., Ltd.
DNP Graphica Co., Ltd.
DNP Book Factory Co., Ltd.
DNP Digitalcom Co., Ltd.
DNP Data Techno Co., Ltd.
DNP Data Techno Kansai Co., Ltd.
DNP Total Process Warabi Co., Ltd.
DNP Multi Print Co., Ltd.
DNP Media Art Co., Ltd.
DNP Media Create Co., Ltd.
DNP Media Support Co., Ltd.
DNP Media Techno Kansai Co., Ltd.

(Sales and service provision, etc.)
Maruzen CHI Holdings Co., Ltd.
INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS
CO., LTD.
2Dfacto, Inc.
DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd.
mobilebook.jp, Inc.
Maruzen Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
Maruzen Bookstores Co., Ltd.
TRC, Inc.
Junkudo Co., Ltd.
Yushodo Co., Ltd.
honto Book Services Co., Ltd.
BUNKYODO Co., Ltd.
Nihon Unisys, Ltd. *BOOKOFF CORPORATION
LIMITED*All About, Inc.*
Kyoiku Shuppan Co., Ltd.*SHUFUNOTOMO Co., Ltd.*DNP Tohoku Co., Ltd.
DNP Shikoku Co., Ltd.

(Production)
DNP Technopack Co., Ltd.
Sagami Yoki Co., Ltd.
DNP IMS Co., Ltd.
DNP Advanced Optics Co., Ltd.
DNP Energy System Co., Ltd.
DNP Ellio Co., Ltd.
DNP Lifestyle Materials Co., Ltd.

(Production and sales)
Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya
Co., Ltd.
DNP Hoso Co., Ltd.

(Production)
DNP LSI Design Co., Ltd.
DNP Color Techno Sakai Co., Ltd.
DNP Signage Technology Co., Ltd.
DNP Fine Electronics Co., Ltd.
DNP Precision Devices Himeji Co.,Ltd.
DNP Micro Technica Co., Ltd.

(Production and sales)
DNP Color Techno Kameyama Co.,Ltd.
DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd.

(Sales and service provision, etc.)
DNP ID System Co., Ltd.
DNP Lifestyle Materials Marketing
Co., Ltd.
DNP DreamPages Co., Ltd.
DNP Field Eyes Co., Ltd.
DNP Photo Imaging Co., Ltd.
DNP Fotolusio Co., Ltd.
LIFESCAPE MARKETINGCORPORATION(Production and sales)
DNP Fine Chemicals Co., Ltd.

D.N.K. Co., Ltd.

DIC Graphics Corporation*(Sales and service provision, etc.)
DNP Logistics Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Asia Pacific Pte. Ltd.

DNP Trading Co., Ltd.
DNP Human Services Co., Ltd.
DNP Corporation USA

DNP Accounting Services Co., Ltd.
DNP Facility Services Co., Ltd.
DNP America, LLC

Printing businessNotes: *Hokkaido Coca-Cola Bottling Co., Ltd.
(Production and sales)(Production and sales)
DNP Hokkaido Co., Ltd.
DNP Chubu Co., Ltd.
DNP Nishinippon Co., Ltd.

: Equity-method affiliated companies (Otherwise, subsidiaries): Flow of products, materials and services

11

DNP Holding USA Corp.

Beverages
business3. Management policies(1) Core policies
DNP has been striving to contribute to society by providing new value-added products and services
through its business activities, based on a management concept of contributing to the sustainablegrowth of the society and the emergently evolving society of the 21st century. With a business visionof P&I Solutions (P&I stands for “Printing Technology” and “Information Technology”) to realize its
management concept, DNP will continue to solve the problems of corporate clients, consumers, andsociety by making the most of its strengths in printing and information technologies.
Additionally, to promote fair and appropriate corporate activity and fulfill its corporate social
responsibilities (CSR), DNP strictly complies with laws and social ethics based on the DNP Group
Code of Conduct and ensures proper business activities through an internal control system. The
Company strives to conduct business in good faith to earn the deep trust of its various stakeholders,
including shareholders, customers, consumers, and employees.
(2) Medium- and long-term management strategy and key issues
DNP aims to steadily expand over the medium- to long-term, based on its P&I Solutions businessvision.
Research and development are extremely important corporate activities for DNP, a company thathas expanded its fields of business by developing applications of printing and information
technologies. Especially important in these times of rapid change are “business-generating” types ofresearch and development that examine problems from consumers’ point of view and provide goodsolutions. In addition to developing innovative products, services and business models, DNP
carefully manages and makes use of the intellectual assets generated by its research.
At the same time, in view of the host of challenges that face Japan and other countries, DNP
believes that a social perspective is important in developing businesses that address the needs ofsociety. Our Social Innovation Laboratory conducts research into social issues and seeks to give
shape to the businesses that DNP should pursue, and based on its activities, DNP is working tocreate new businesses based on the themes of information distribution, environment and energy,
health and medical care, and comfortable living.
Additionally, amid expectations for a contraction of the domestic market, due partly to a falling birthrate and aging population, global business operations have become increasingly important ascompanies expand overseas and markets become borderless. DNP has pursued overseas businessfor roughly five decades since opening the Hong Kong office in 1964, and we had 24 sales offices
and 12 plants in 15 countries and regions at the end of March 2013. To prepare a global strategy andimprove business results through interdepartmental cooperation, we established a new organization
to control overseas business in April 2012. We also created an integrated production and sales
structure to facilitate the efficient pursuit of production, sales, and development in the best suited
regions.

12

Initiatives in the different businesses and segments[PRINTING]
Information Communication
The Information Communication segment is broadly involved with the optimal expression of
information and expansion into a diverse range of media. It also provides a wide range of solutions
that are closely connected with the business processes of our customers.
In the Books and Magazines business, we are focusing on hybrid production solutions that
address both paper media and electronic media. In June 2012, we launched “honto” as a hybrid
bookstore network service that handles sales of paper books at physical bookstores (e.g., Maruzen,
Junkudo, and Bunkyodo) and online bookstores, as well as sales of e-books through online
bookstores. In addition to a shared loyalty points program and recommendation services, we arebolstering efforts to provide the optimal delivery of content desired by consumers in terms of time,location, and media.
In the Commercial Printing and Business Forms businesses, we are working to develop newservices and businesses to respond to greater diversity in consumer values and the advance andglobalization of information communication technology, based on a new structure launched in
October 2012 through the integration of business divisions. We deliver highly unique and effective
solutions by combining our established customer bases as well as our products and services.
Drawing on a robust information security infrastructure and diverse range of information media (e.g.,
websites and in-store sales promotions), we are bolstering personal marketing based on consumer
information. We are also expanding Business Process Outsourcing (BPO) services in which DNP
enhances a company’s business efficiency by handling a variety of its business processes, including
the operation of financial business centers, customer centers, and campaign offices.
Lifestyle and Industrial Supplies
The Lifestyle and Industrial Supplies segment provides products and services that properly respondto corporate clients’ and consumers’ diverse needs, including environmental protection anduniversal design. In addition, the segment is developing unique, advanced products in new fields
where there are strong social needs, such as energy and life science.
In the Packaging business, we seek to increase market share for advanced products such as
Innovative Barrier (IB) film, which delivers outstanding impermeability to water vapor and oxygen,making it ideal for packaging foods, medical supplies, and other products. We are also focusing on
environmentally friendly products, including biomass plastic packaging material. Amid expectations
for rapid growth in the ASEAN market, we intend to expand our plant in Indonesia after commencing
operations at our plant in Vietnam in April 2013. In Japan, we reorganized our production divisions
across the country and integrated these operations into a single production subsidiary in October
2012. We are working to enhance our business competitiveness further by building an optimal
production structure and reforming our cost structure.
Our Lifestyle Materials subsegment works closely with manufacturers of household equipment
and decorative materials, addressing the entire building industry supply chain starting with the
project planning phase. In addition to high value-added products that use DNP’s proprietary Electron
Beam coating technology, we are pursuing the development of products suited to smart houses andsmart cities, including exterior components with superior weather resistance and energy-saving
interior components that increase illumination through efficient light diffusion.

13

In the Industrial Supplies business, we are focusing on the development of new optical film
products that employ clean converting technologies to increase quality based on coating, laminating,and other technologies. In the Information Media Supplies business, we are expanding our businessworldwide through the expansion of production facilities for thermal transfer ink ribbons for printing
barcodes at the Pittsburgh plant in the US and the construction of a new plant in Malaysia to makedye-sublimation thermal transfer recording media for photo printing in September 2013. In the
Energy Systems business, we seek to increase productivity and profitability for soft packs used inlithium-ion rechargeable batteries and photovoltaic cell components.
Electronics
The Electronics segment is working to respond to the rapidly changing needs of companies andconsumers by bolstering DNP’s patterning, microfabrication, and other world class technologies,
developing new advanced products, rigorously cutting costs, and improving investment efficiency.
In the LCD Color Filter business, we are working to stabilize operations by focusing on ourstrength in high-definition, high-quality small- and medium-sized filters for smart phones and tablets,
an area in which strong growth is expected.
In the Photomasks business, we seek to respond precisely to miniaturization needs and tap into
growing overseas demand through our overseas production facilities. To respond to next-generation
semiconductor products, we are pursuing the development of nanoimprint lithography technology
and extreme ultraviolet (EUV) lithography technology.
We are also developing new products such as components for organic EL displays and touch
panels, and are focusing on new markets to serve as new earnings sources.
[BEVERAGES]
Beverages
The business environment surrounding the beverage industry is expected to remain harsh, withintensified competition over market share amid continued stagnation in consumption.
Given these conditions, we drew up a medium-term management plan that proposes a vision for
the future in which our contribution to local Hokkaido communities, through Coca-Cola’s brandstrength and close working relationships between Hokkaido society and DNP’s Hokkaido-based
beverages operations, serves as a foundation for sustainable growth. Based on this plan, we will
pursue four strategies aimed at achieving sustained growth: “blazing a new trail,” “winning in themarketplace,” “offering new value,” and “implementing group-wide cost control.” Additionally, with thegoal of being a company that is trusted and recognized by local communities, we are working tostrengthen our internal control systems and corporate governance and to maintain and improve
quality, safety, and the environment based on Coca-Cola’s propriety integrated management systemcalled KORE.

14

Strengthened organization
DNP aims to increase its overall group strength by further reinforcing cooperation among businessdivisions, and to offer wide-ranging solutions by engaging in more taiwa (exchange of viewpoints
and ideas that leads to identification and resolution of problems) with corporate clients andconsumers. In order to expand DNP’s business, we will cooperate with other companies that haveparticular strengths in addition to making the most of our own unique technologies. We have alreadyformed strategic alliances with other companies and implemented mergers and acquisitions in suchbusinesses as electronics, digital photos, and publications distribution. In the future, we will continue
to actively pursue such alliances both domestically and overseas.
In addition, we are moving ahead with the redevelopment of Tokyo’s Ichigaya district, in order tofurther promote our business vision of providing P&I Solutions. Currently the project planning andsales offices of various business units are scattered throughout the Tokyo Metropolitan area. We willconcentrate these in the Ichigaya district, together with DNP group headquarters functions. We arealso working on consolidating manufacturing sites by developing new businesses and reviewing ourframeworks for manufacturing and distribution. We began this redevelopment project in 2010, andaim to complete it in 2017. In January 2013, we opened the Communication Plaza dot DNP in the
DNP Ichigaya Tamachi Building (Shinjuku, Tokyo) as a consumer contact venue for informing more
people about DNP’s diverse range of products and services and giving them opportunities to try
reading e-books, make photo books, and have other experiences with the aim of expanding B to C
business.
Reinforcing DNP’s business continuity plan (BCP)
Aiming for a “disaster-proof DNP Group,” we established the “DNP Group Basic Code for Disaster
Response” and we implement disaster prevention and preparedness measures on a daily basis inline with our disaster prevention plan. After the Tohoku–Pacific Ocean Earthquake, we reviewed ourbusiness continuity plan (BCP), reconsidered our overall product supply chain, enhanced distribution
and alternative production systems, and reconfigured our production bases in Japan and overseas
in order to minimize the potential impact that a disaster could have on our business. In addition, in
response to power shortages and price hikes, we will continue to carefully conserve energy andintroduce in-house power generation equipment.
Contributing to the realization of a sustainable society
DNP’s various environmental initiatives to build a sustainable society that coexists with natureinclude a proprietary environmental management system, global warming prevention, zero waste
emissions, biodiversity protection, thorough management of volatile organic solvent and chemical
substance, and green purchasing.
In the fiscal year ended March 31, 2013, we calculated greenhouse gas emissions (Scope3) not
only for our manufacturing operations, but also indirect emissions throughout our entire supply chain.
Additionally, considering that paper procurement as part of our business activities depends heavily
and has a large impact on the ecosystem, we prepared the DNP Group Guidelines for Procurementof Paper for Printing and Converting with the goal of maintaining sustainable forest resources.
Additionally, DNP Fine Chemicals Utsunomiya’s Odaka plant (Minamisoma, Fukushima) was shut
down as a result of the Tohoku–Pacific Ocean Earthquake, and responding to a request from thenational and local governments working to rebuild this area, DNP decided to donate the plant’s landand buildings to the city of Minamisoma in April 2013.

15

4. Consolidated financial statements(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2012
(As of March 31, 2012)

Year ended March 31, 2013
(As of March 31, 2013)

217,518
385,101
91,91239,356
19,8508,691
24,228(3,703)782,956

213,630
367,765
91,04729,03018,977
10,27723,305(2,883)751,150542,222(328,707)
213,514866,990(722,663)
144,326
142,149
35,410147,634(103,469)
44,165579,566

529,760(333,740)
196,019
818,946(689,595)
129,350
154,005
22,921
138,564(102,406)
36,157538,454

9,975
25,211
2,818
38,005

7,481
25,5162,482
35,480136,703
1,764
34,58040,372(6,034)
207,387
824,959

189,657
9,658
25,16735,385(5,977)
253,890827,825864
25889
1,608,806–––
1,578,976

ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
Merchandise and finished products
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Business startup costs
Other
Total deferred assets
TOTAL ASSETS

16

(Million yen)
Year ended March 31, 2012
(As of March 31, 2012)

Year ended March 31, 2013
(As of March 31, 2013)

276,353
51,809
5,648
660
8,598
15,01985,090443,179

249,567
47,296
6,805
50,7609,014
16,00478,336
457,784

153,060
19,147
1,963
33,22944,012
251,413694,593

102,800
19,5482,170
26,44133,175
184,135
641,920

114,464
144,898
723,459(94,172)888,649

114,464
144,898
722,057(94,226)
887,193

4,370

18,908(14)(21,775)8(12,986)(17,420)5,930

1642,967914,213
1,608,806

16
43,915937,055
1,578,976

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Reserve for bonuses
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Deferred tax liabilities
Provision for retirement benefits
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

17

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes and minority
interests
Current income taxes
Deferred income taxes
Total income taxes
Income (Loss) before minority interests
Minority losses
Net income (loss)

18

Year ended
March 31, 2012
1,507,227
1,246,878
260,349
226,334
34,015

Year ended
March 31, 2013
1,446,607
1,186,557
260,049
224,269
35,779

3,469
345
7,209
11,024

3,464
3,012
8,356
14,833

3,424
1,109
3,661
8,195
36,843

3,482
1,046
5,765
10,29540,318

2,213
78
87
2,379

9,321
155
710
10,187

5,067
25,013
1,147
5,322
36,550

6,478
3,563
2,659
2,652
15,353

2,672

35,151

17,2102,300
19,511(16,838)(482)(16,356)

17,079(314)
16,765
18,386(831)
19,217

Consolidated statements of comprehensive income(Million yen)

Income (Loss) before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to ：Shareholders of parent company
Minority interests

19

Year ended
March 31, 2012(16,838)

Year ended
March 31, 2013
18,386

3,697

14,290(2)(4,194)

7
9,276

(1)

161

(501)
(17,340)

23,73542,121(16,596)(744)

42,568(446)

(3) Consolidated statements of changes in net assets(Million yen)

Year ended
March 31, 2012
Stockholders’ equity
Common stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Change of scope of consolidation
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Increase in treasury stock from increase inequity-method affiliates
Total changes of items during the period
Balance at the end of current period
Total stockholders’ equity
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Change of scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Increase in treasury stock from increase inequity-method affiliates
Total changes of items during the period
Balance at the end of current period

20

Year ended
March 31, 2013

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

760,452

723,459(20,628)(16,356)–(8)(36,992)
723,459(20,626)
19,21717(10)(1,401)
722,057(94,113)(94,172)

(76)
16

(38)
16

–

(32)

(59)
(94,172)(53)(94,226)

925,702888,649(20,628)(16,356)–(76)
8(20,626)
19,217
17
(38)
6

–

(32)

(37,052)
888,649(1,455)887,193(Million yen)

Year ended
March 31, 2012
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Net deferred gains (losses) on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive
incomeBalance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Stock acquisition rights
Balance at the beginning of current period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period

21

Year ended
March 31, 2013

832

4,370

3,537

14,538

3,537
4,370

14,53818,908

(12)

(14)

(2)

23

(2)
(14)

23
8

(18,000)(21,775)(3,775)

8,788(3,775)(21,775)

8,788(12,986)(17,180)(17,420)(240)

23,350(240)(17,420)

23,350
5,930

16
16

16
16

43,90242,967

(934)

947

(934)
42,967947
43,915

(Million yen)

Year ended
March 31, 2012
Total net assets
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Change of scope of consolidation
Purchase of treasury stock
Disposal of treasury stock
Increase in treasury stock from increase inequity-method affiliates
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period

22Year ended
March 31, 2013

952,440914,213(20,628)(16,356)–(76)
8(20,626)
19,217
17
(38)
6

–

(32)

(1,174)24,298(38,227)
914,213

22,842
937,055

(4) Consolidated statements of cash flows(Million yen)

Year ended
March 31, 2012
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Decrease of doubtful receivables, net
Decrease of provision for retirement benefits, net
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gain on sales of investment securities
Net loss on devaluation of investment securities
Net losses (gains) on sale or disposal of fixed assets
Decrease in trade receivables
Decrease (Increase) in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchases of subsidiary stocks
Proceeds from transfer of business
Interest and dividends received
Other
Net cash used in investing activities

23

Year ended
March 31, 2013

2,672
95,82925,013(8,428)(5,449)(345)
3,335(3,469)
3,424
(39)
1,149
2,888
18,726(11,758)
2,828
2,751
129,130(942)(19,585)
108,603

35,15180,2003,563(1,043)(6,694)(3,012)
3,019(3,464)
3,482
(140)
2,691
(2,816)
19,481
12,295(31,665)
8,638
119,689(1,703)(17,487)
100,497

538

(275)

(74,673)(66,216)

5,998(2,468)
277
(538)
–
4,003
(13,264)(80,126)

14,718(14,138)
489
–
8,091
3,971
(19,227)(72,587)(Million yen)

Year ended
March 31, 2012
Cash flows from financing activities
Net increase (decrease) in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Proceeds from stock issuance to minority shareholders
Payments for purchases of treasury stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase (Decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of year

24

Year ended
March 31, 2013

677
7,025
(6,259)1,188(2,603)–(76)(0)(3,269)(20,628)(433)(8,453)(32,833)(5,490)7,450(6,437)
500
(660)
1,882
(38)
(1)
(3,494)(20,626)(405)(8,914)(36,236)(1,716)4,133(6,072)
222,056(4,192)
216,279295(25)

216,279

212,062(5) Notes regarding consolidated financial statements[Notes on premise of a going concern]
None[Basis of presenting consolidated financial statements]
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 120
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd.
INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD.
2Dfacto, Inc., DNP Color Techno Kameyama Co., Ltd.
DNP Technopack Co., Ltd., DNP Nishinippon Co., Ltd.
DNP Fine Chemicals Co., Ltd., DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 13
Major companies:
Nihon Unisys, Ltd.
BOOKOFF CORPORATION LIMITED, All About, Inc.
Kyoiku Shuppan Co., Ltd., SHUFUNOTOMO Co., Ltd.
DIC Graphics Corporation
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
Newly included:
3 DNP Vietnam Co., Ltd. and two other companies
Excluded:
DNP Technopack Yokohama Co., Ltd. and seven other8
companies(Application of equity method)
Newly included:
1

Nihon Unisys, Ltd.

3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 27 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 23 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, BUNKYODO GROUPHOLDINGS CO., LTD. and seven other companies have fiscal years that end on August 31, andmobilebook.jp, Inc.’s fiscal year ends on September 30. Consequently, financial statements basedon provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates and provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

254) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securitiesThose with market
prices available

Fair market value based on market prices as of the balance
sheet date
(The related valuation differences are directly included in net
assets and the sale prices computed by the moving-averagemethod.)Those without market
prices available

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

For figures shown on the balance sheet, the book value
write-down method based on the decrease in profitability isused.

Merchandise

Mainly cost based on the specific identification method

Finished products, work inprogress

Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

Mainly cost based on the most recent purchase method(b) Depreciation and amortization of significant assets• Property, plant and equipment The Company and its domestic consolidated subsidiaries(except for lease assets)
use the declining balance method.
However, depreciation of machinery and equipment at theKurosaki Plant No. 1 (2nd-Stage plant), Plant No. 3 andHimeji Plant is computed by the straight-line method.
Depreciation of buildings (excluding building fixtures)acquired after April 1, 1998, is computed by the straight-line
method.
Assets with an acquisition cost of at least ¥100,000 and lessthan ¥200,000 are depreciated mainly over three years by
the straight-line method. Foreign consolidated subsidiaries
mainly use the straight-line method.
• Intangible fixed assets(except for lease assets)

Mainly the straight-line method
Software used internally is amortized using the straight-line
method over the Company’s estimate of the useful life of theassets (not more than five years).

• Lease assets

Lease assets with no transfer of ownership
These lease assets are depreciated over the lease periodusing the straight-line method with no residual value.
Finance lease transactions that do not transfer ownershipand commenced on or before March 31, 2008 are accounted
for based on the method for ordinary lease transactions.

26

(c) Basis for recording significant allowances• Allowance for doubtful
To cover possible losses on doubtful accounts, theaccounts
allowance for doubtful accounts is based on historicaldefault rates for normal accounts and on estimates of theamounts that may not be recoverable for specific overdue
accounts.
• Reserve for bonuses

To cover payments of employee bonuses in the following
fiscal year, the reserve for bonus is based on the estimatedamount that is attributable to the current fiscal year.

• Provision for retirement
benefits

To cover future payments of employee retirement benefits,provisions for employees’ retirement benefits are based on
an amount incurred by the fiscal year-end based on
estimated retirement benefit liabilities and pension plan
assets at the end of the fiscal year.
Prior service costs are amortized using the straight-line
method over a certain number of years that is equal to orless than the average future service period of eligible
employees at the time the costs are incurred (generally six
years).
Actuarial gains/losses are amortized beginning in the fiscal
year in which the gains/losses are recognized and using thedeclining balance method over a certain number of years
that is equal to or less than the average future service periodof eligible employees at the time the actuarial gains/losses
are incurred (generally nine years).

(d) Accounting treatment of consumption taxes
National and local consumption taxes are excluded from transaction amounts.
(e) Amortization of goodwill and negative goodwill
Goodwill and negative goodwill incurred prior to March 31, 2010 are amortized using thestraight-line method for a period of not more than 20 years. In the current fiscal year,
straight-line amortization over five years is generally used.
(f) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows are short-term
investments with an original maturity of three months or less, are subject to insignificant risk ofchanges in value, and can be easily converted into cash and drawable funds as needed.
[Changes in accounting policies][Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates]
In line with revisions of the Corporation Tax Act, Dai Nippon Printing Co., Ltd. and domestic
consolidated subsidiaries changed to a depreciation method based on the revised act for property,
plant and equipment acquired on or after April 1, 2012 starting in this fiscal year.
This change has an immaterial impact on earnings.

27

[Consolidated balance sheets]

1. Guarantee obligation
2. Discounts on notes receivableYear ended
March 31, 2012
¥56 million¥704 million

Year ended
March 31, 2013¥34 million¥643 million

Year ended
March 31, 2012
¥31,690 million

Year ended
March 31, 2013
¥30,820 million[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses, and cost of sales)

2. Impairment losses
In the current fiscal year, DNP recorded impairment losses for the following asset groups.
Location
Tobata, Kitakyushu etc.

PurposeEnergy-related component
production equipment, etc.

Type
Machinery, buildings andstructures, otherIn calculating impairment losses, DNP groups assets based mainly on the business groups thatserve as profit/loss units. It also considers impairment losses for each individual item for loaned
assets and idle assets.
As a result, DNP lowered the carrying amounts of asset groups with diminished profitability totheir recoverable amounts, and recorded this decrease as an impairment loss (¥3,563 million)
under extraordinary losses.
Asset group breakdown: Energy-related component production equipment (¥2,750 million) andother (¥813 million). Fixed asset category breakdown: machinery (¥1,844 million), buildings andstructures (¥924 million), and other (¥794 million).
DNP determines recoverable amounts of idle assets based on net selling prices and otherassets based on value in use. However, because selling prices are difficult to calculate for idle
assets, DNP mainly lowers carrying amounts to their residual value. DNP calculates value in use
mainly by discounting future cash flows by 10%.

28

[Consolidated statements of changes in net assets]
The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
1. Types and number of shares outstanding and treasury stock(Shares)

Outstanding shares

Stock type

Number ofshares at the
beginning of
the year
ended March
2012

Increase in
number ofshares during
the year
ended March
2012

Common stock

700,480,693

Decrease in
number ofshares during
the year
ended March
2012–

Number ofshares at theend of theyear ended
March 2012–

700,480,693

Treasury stock
Common stock
56,338,163
89,456
9,854
Notes:
1. The increase of 89,456 treasury shares is due to the repurchase of odd-lot shares.
2.

56,417,765

The decrease of 9,854 treasury shares is due to the sale of odd-lot shares.

2. Stock acquisition rights and treasury stock acquisition rights
Number of shares (Shares)
Company name

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2012
(Million yen)

Stock
type

Beginning of
the year
ended March
2012

Increase

Decrease

End of theyear ended
March 2012

–

–

–

–

–

16

–

–

–

–

16

Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Total dividends

Dividend pershare (Yen)

Resolution

Stock type

General meeting ofshareholders on
June 29, 2011

Common stock

10,31416

March 31, 2011

June 30, 2011

Board of Directors’
meeting on
November 10, 2011

Common stock

10,31316

September 30,
2011

December 9,
2011(Million yen)

(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 28, 2012

Commonstock

10,313

Source ofdividends
Retainedearnings

29

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2012

June 29,2012

The year ended March 31, 2013 (April 1, 2012 – March 31, 2013)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March2013

Outstanding shares

Common stock

700,480,693––

700,480,693

Treasury stock

Common stock

56,417,765

82,541

9,977

56,490,329

Notes:

1.

2.

Increase in
number ofshares during
the year
ended March2013

Decrease in
number ofshares during
the year
ended March
2013

Number ofshares at theend of theyear ended
March 2013

Treasury stock increased by 82,541 shares, comprising 58,810 shares from the repurchase of
odd-lot shares and 23,731 shares from the return of shares resulting from an increase inequity-method affiliates.
The decrease of 9,977 treasury shares is due to the sale of odd-lot shares.

2. Stock acquisition rights and treasury stock acquisition rights
Number of shares (Shares)
Company name

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2013
(Million yen)

Stock
type

Beginning of
the year
ended March
2013

Increase

Decrease

End of theyear ended
March 2013

–

–

–

–

–

16

–

–

–

–

16

Dividend pershare (Yen)Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 28, 2012
Board of Directors’
meeting on
November 8, 2012

Stock type

Total dividends(Million yen)

Common stock

10,31316

March 31,2012

June 29, 2012

Common stock

10,31316

September 30,
2012

December 10,
2012(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 27, 2013

Commonstock

10,312

Source ofdividends
Retainedearnings

30

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2013

June 28,
2013

[Segment information, etc.]
1. Overview of the reporting segments
DNP’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
DNP bases its business divisions on the products and services provided and develops its
business activities based on a comprehensive domestic and overseas strategy for eachbusiness division. The four reporting segments are Information Communication, Lifestyle andIndustrial Supplies, Electronics, and Beverages.
Information Communication is involved in the production and sale of publications,commercial printed matter, and business forms and in educational and publications distribution.
Lifestyle and Industrial Supplies is involved in the production and sale of packaging materials,
interior and exterior construction materials, photographic materials, and industrial supplies.
Electronics is involved in the production and sale of precision electronic components and otherproducts. Beverages is involved in the production and sale of carbonated and non-carbonatedbeverages.
2. Method of calculating sales, income/loss, assets, and other items by reporting
segment
The accounting method used for reporting business segments is generally the same as statedin “Basis of presenting consolidated financial statements.”
Reporting segment income (loss) figures are based on operating income (loss).
Inter-segment sales and transfers are based on third-party transaction prices.
As noted in the section titled, “Changes in accounting policies that are difficult to distinguishfrom changes in accounting estimates,” in line with revisions of the Corporation Tax Act, DNPchanged to a depreciation method based on the revised act for property, plant and equipment
acquired on or after April 1, 2012 starting in this fiscal year. As a result, DNP changed its
deprecation method for reporting segments to a method based on the revised Corporation Tax
Act. This change has an immaterial impact on reporting segment income or losses.

31

3. Information on sales, income/loss, assets, and other items by reporting segment
The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
Reporting segment(Million yen)Amounts
reportedon
Adjustment
consolidated
Note 1
financial
Note 2statements

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Outside customers
Inter-segment

708,5316,106

516,8176,024

224,809
1

57,0693

1,507,227
12,135–(12,135)

1,507,227–
1,507,227

Beverages

Total

Net sales

Total

714,637

522,842

224,81157,072

1,519,363(12,135)

Segment income (loss)

15,48831,839(4,647)1,334

44,014(9,999)34,015

Segment assets

620,615565,398

287,957

45,6601,519,631

89,174

1,608,806

24,041

25,53240,441

3,436

93,4502,378

95,829

1,586

1,672

167

0

3,426

–

3,426

234

–

24,773

4

25,013–25,01329,90539,52023,503

3,864

96,793

1,395

98,188Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Increase in property,
plant and equipment
and in intangible fixed
assets
Notes:

1.

2.

Figures are adjusted as follows.
(1) Segment income (loss) is adjusted for costs related to basic research not assignable to areporting segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income (loss) is adjusted to reflect operating income as reported in the consolidated
financial statements.

The year ended March 31, 2013 (April 1, 2012 – March 31, 2013)
Reporting segment

Net sales
Outside customers
Inter-segment(Million yen)Amounts
reportedon
Adjustment
consolidated
Note 1
financial
Note 2statements

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

698,362
6,364

511,464
9,960

180,506
1

56,2732

1,446,607
16,328–(16,328)

1,446,607–
1,446,607

Beverages

Total

Total

704,727

521,425

180,50756,276

1,462,935(16,328)

Segment income (loss)

15,94428,028(304)

470

44,139(8,359)35,779Segment assets

606,572

583,120

238,828

45,887

1,474,408

104,568

1,578,976

22,255

26,46725,956

3,976

78,656

1,544

80,200

1,533

1,410

325

0

3,270

–

3,270

704

2,761

9

32

3,508

55

3,563

27,26732,596

20,128

7,114

87,1071,206

88,314

Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Increase in property,
plant and equipment
and in intangible fixed
assets
Notes:

1.

2.

Figures are adjusted as follows.
(1) Segment income (loss) is adjusted for costs related to basic research not assignable to areporting segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income (loss) is adjusted to reflect operating income as reported in the consolidated
financial statements.

32

(Related information)
The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,314,933
Notes:

1.
2.
3.

Asia

Other regions

133,477

Total

58,817

1,507,227

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
Taiwan, South Korea, China, Indonesia
Other:
United States, France, Germany, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2013 (April 1, 2012 – March 31, 2013)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,250,987
Notes:

1.
2.
3.

Asia

Other regions

137,537

Total

58,082

1,446,607

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
Taiwan, South Korea, China, Indonesia
Other:
United States, France, Germany, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.

33

[Per share information]
Year ended March 31, 2012
(April 1, 2011 – March 31, 2012)

Year ended March 31, 2013
(April 1, 2012 – March 31, 2013)

Net assets per share¥1,352.71

Net assets per share¥1,386.86

Net loss per share¥(25.39)

Net income per share¥29.84

Diluted net income per share¥29.79Year ended
March 31, 2012

Year ended
March 31, 2013

(As of March 31,
2012)(As of March 31,
2013)

Diluted net income per share is not reported
because a net loss per share was recorded.

Note: Basis of calculations
1. Net assets per share(Million yen)914,21342,98416
42,967

Net assets at fiscal year-end pertaining to common
stock(Million yen)871,229

893,124

Number of common shares outstanding(Thousand shares)

Number of common treasury shares(Thousand shares)

700,480
56,417700,480
56,490

Number of common shares at fiscal year-end used
for the calculation of net assets per share(Thousand shares)

644,062

643,990

Year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

Year ended
March 31, 2013
(April 1, 2012 –March 31, 2013)

Total net assets(Million yen)Amount excluded from total net assets(Million yen)

Of which, stock acquisition rights(Million yen)

Of which, minority interests

937,055
43,931
16
43,915

2. Net income (loss) per share and diluted net income per share(1) Net income (loss) per share
Net income (loss)(Million yen)

(16,356)

19,217

Amounts not attributable to commonshareholders(Million yen)––

Net income (loss) pertaining to common stock(Million yen)

(16,356)

19,217

Average number of common shares outstanding
during the fiscal year

(Thousand shares)

644,102644,029(2) Diluted net income per share
Net income adjustment(Million yen)

–

(31)

Of which, impact of dilutive stock of consolidated
subsidiaries(Million yen)

–

(31)

Increase in common stock(Thousand shares)––[Significant subsequent events]
None[Disclosure omission]
Disclosure of notes on such items as tax effect accounting, marketable securities, and retirement
benefits is omitted because such disclosure in the release of Financial Results is not considered to34

be important.

35

5. Non-consolidated financial statements(1) Non-consolidated balance sheets(Million yen)

Year ended
March 31, 2012
(As of March 31, 2012)

Year ended
March 31, 2013
(As of March 31, 2013)

145,540
34,836
264,358
4,915
14,8292,276
3,502
28,061(1,838)496,483

133,226
33,717
253,860
3,759
11,4452,061
4,476
25,330(1,261)
466,616

411,354(245,917)
165,436
32,344(24,503)
7,840
697,803(592,394)
105,409
1,169(1,050)119
48,586(40,764)
7,821
119,314
8,562(1,902)
6,659
31,142443,744398,871(250,004)
148,867
31,685(24,381)
7,304
637,526(552,208)
85,317
1,282(1,089)193
49,174(41,462)
7,711
131,483
2,529(1,317)
1,211
16,098398,187

17,218
6,058
23,27618,3044,580
22,884

115,883
132,552894
9,754
25,84333,301(15,800)
302,429
769,450
1,265,933

153,566
149,719
2,008
16,821
17,36137,815(17,016)
360,275
781,347
1,247,963

ASSETS
Current assets
Cash and time deposits
Notes receivable
Trade receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery
Accumulated depreciation
Machinery, net
VehiclesAccumulated depreciation
Vehicles, net
Equipment
Accumulated depreciation
Equipment, net
Land
Lease asset
Accumulated depreciation
Lease asset, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in securities in affiliates
Investments in capital of affiliates
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

36

37

(Million yen)
Year ended
March 31, 2012
(As of March 31, 2012)

LIABILITIESCurrent liabilities
Notes payable
Trade payable
Current portion of bonds
Lease obligations
Accounts payable - otherAccrued expenses
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Reserve for disaster losses
Provision for loss on liquidation of affiliates
Notes payable for facilities
Other
Total current liabilities
Long-term liabilities
Bonds
Lease obligations
Asset retirement obligations
Long-term accounts payable
Provision for retirement benefits
Reserve for environmental measures
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for special depreciation
Reserve for depreciation reduction of fixed
assetsOther reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

38

Year ended
March 31, 2013
(As of March 31, 2013)

18,306
180,672–
793
51,725
14,453
162,277
6,208
150
1,106
–
1,240
5,675
442,608

14,996
173,137
50,000432
38,217
14,754
170,805
6,800
155
744
200
898
2,080
473,222150,000
6,199
3,068
6,343
6,865
73
172,549
615,158

100,000
839
1,101
6,177
7,081
70
115,270
588,492

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,300

6,335

956

44

38

432,780
19,047
481,506(94,148)646,721382,780
68,728475,803(94,169)
640,996

4,061

18,473(7)
4,053
650,775
1,265,933

1
18,474659,471
1,247,963

(2) Non-consolidated statements of income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on liquidation of affiliates
Gain on exchange of stock
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on devaluation of investment securities
Loss on devaluation of securities in affiliates
Disaster losses and provision of reserve fordisaster
Other
Total extraordinary losses
Income (Loss) before income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income (loss)

39

Year ended
March 31, 2012
972,638
871,886
100,752
105,431(4,678)Year ended
March 31, 2013
926,142826,122
100,019
104,008(3,988)647
9,933
56,246
66,826417
18,01445,82464,2562,366
49,021
51,388
10,7602,366
38,01740,383
19,884

496
68
1,751
–
3
2,319

7,004
154
–
1,869
–
9,028

3,688
20,097
976
2,030

5,329
2,818
2,631
1,557

386

–

1,885
29,064(15,984)
220
2,299
2,519
(18,504)

1,454
13,79015,121
670
(481)
188
14,933

(3) Non-consolidated statements of changes in net assets(Million yen)

Year ended
March 31, 2012
Stockholders’ equity
Common stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Capital reserve
Balance at the beginning of current period
Balance at the end of current period
Total capital surplus
Balance at the beginning of current period
Balance at the end of current period
Retained earnings
Legal reserve
Balance at the beginning of current period
Balance at the end of current period
Other retained earnings
Reserve for loss on overseas investment
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for loss on overseas
investment
Total changes of items during the period
Balance at the end of current period
Reserve for special depreciation
Balance at the beginning of current period
Changes of items during the period
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Total changes of items during the period
Balance at the end of current period
Reserve for depreciation reduction of fixed
assetsBalance at the beginning of current period
Changes of items during the period
Reversal of reserve for depreciation
reduction of fixed assets
Total changes of items during the period
Balance at the end of current period
Other reserve
Balance at the beginning of current period
Changes of items during the period
Reversal of other reserve
Total changes of items during the period
Balance at the end of current period

40

Year ended
March 31, 2013

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

144,898
144,898

144,898
144,898

23,30023,30023,30023,300

0

–

(0)

–

(0)
–

–
–

7,492

6,335

357
(1,514)(1,156)
6,335–(5,379)(5,379)
956

46

44

(1)

(5)

(1)
44

(5)
38

432,780

432,780––
432,780(50,000)(50,000)
382,780

(Million yen)

Year ended
March 31, 2012
Retained earnings brought forward
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for losses on overseas
investment
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Reversal of reserve for depreciation
reduction of fixed assets
Reversal of other reserve
Cash dividends paid
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for losses on overseas
investment
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Reversal of reserve for depreciation reductionof fixed assets
Reversal of other reserve
Cash dividends paid
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total stockholders’ equity
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period

41

Year ended
March 31, 201357,02919,047

0

–

(357)
1,514

–
5,379

1

5

–
(20,628)(18,504)(8)(37,982)
19,04750,000(20,626)
14,933(10)
49,681
68,728520,647

481,506

–

–

–
–

–
–

–

–

–
(20,628)(18,504)(8)(39,140)
481,506–(20,626)
14,933(10)(5,703)475,803(94,088)(94,148)

(76)
16
(59)
(94,148)

(38)
16
(21)
(94,169)

685,922646,721(20,628)(18,504)(76)8(39,200)
646,721(20,626)
14,933(38)
6(5,725)640,996(Million yen)

Year ended
March 31, 2012
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Net deferred gains (losses) on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period

42

Year ended
March 31, 2013

763

4,061

3,298

14,412

3,298
4,061

14,412
18,473

(10)

(7)

2

8

2
(7)

8
1

752

4,053

3,301

14,420

3,301
4,053

14,42018,474

686,674

650,775(20,628)(18,504)(76)8(20,626)
14,933
(38)
6

3,301

14,420(35,899)
650,775

8,695
659,471(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]
None
6. Changes in directors and officers (as of June 27, 2013)
1) New director candidates (at the Ordinary General Meeting of Shareholders to be held on June
27)
Takashi Saito
Managing Director(currently Senior Corporate Officer)
Director

Satoru Inoue(currently Deputy General Manager of Technical & Engineering
Division)

2) Directors to be retired (at the end of the Ordinary General Meeting of Shareholders to be heldon June 27)
Kazumasa Hiroki
Managing Director(to be assigned as Adviser)
Managing Director

Yoshiki Nozaka(to be assigned as President of DNP Fine Chemicals Co., Ltd.)

3) New corporate officer candidates
Kiyotaka Nakagawa
Corporate Officer(currently General Manager of honto Business Operations)
Corporate Officer

Naohiko Sugimoto(currently General Manager of Ichigaya Publication Printing
Operations)

Corporate Officer

Shuichi Kobayashi(currently Deputy General Manager of Packaging Operations)4) Corporate officers to be retired
Tatsuro Kitayuguchi
Senior Corporate Officer(to be assigned as Adviser)
Corporate Officer

Yasuo Takeda(to be assigned as Adviser)5) Corporate officers to be promoted
Senior Corporate Officer
Morihiro Muramoto(currently Corporate Officer)

43