Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 [J-GAAP]May 13, 2021

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.dnp.co.jp/eng/
Representative:
Yoshinari Kitajima, President
Contact person:
Daisuke Sasaki, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
General meeting of shareholders:June 29, 2021
Dividend payment date:June 30, 2021
Securities report issuing date:June 29, 2021
Preparation of earnings presentation material: Yes
Holding of earnings announcement:
Yes (for institutional investors and analysts)*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2021
(April 1, 2020 – March 31, 2021)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2021

1,335,439(4.7)

49,529(12.0)

59,907(6.1)

25,088(63.9)

Year ended March 31, 2020

1,401,894

0.0

56,274

12.8

63,786

9.5

69,497–

Note: Comprehensive income: Year ended March 31, 2021: ¥148,228 million (–%)
Year ended March 31, 2020: ¥2,536 million (–%)
Diluted Net
Incomeper Share

Net Income
per Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2021

89.32

89.28

2.6

3.4

3.7

Year ended March 31, 2020

235.18235.08

7.3

3.6

4.0

Reference: Equity in earnings of affiliates: Year ended March 31, 2021: ¥6,742 million
Year ended March 31, 2020: ¥6,050 million
Note: Year-on-year change in comprehensive income for year ended March 31, 2021 exceeded 1,000% and is therefore
shown as “-“.

(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2021

1,825,019

1,098,613

57.2

3,716.85

As of March 31, 2020

1,721,724

968,57453.2

3,260.38

Reference: Stockholders’ equity: As of March 31, 2021: ¥1,043,977 million

As of March 31, 2020: ¥915,779 million

(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents
at End of the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2021

61,681(56,284)(78,268)

304,223

Year ended March 31, 2020

93,937

191,057(41,280)

377,367

2. Dividends
Dividends per Share
First
SecondThird
Quarter-end 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, 2020

–

32.00

–

32.00

64.00

18,60927.2

2.0

Year ended March 31, 2021

–

32.00

–

32.00

64.00

17,976

71.7

1.8

Year ending March 31,
2022 (Forecast)

–

32.00

–

32.00

64.00

33.9

3. Consolidated earnings forecasts for the year ending March 31, 2022
(April 1, 2021 – March 31, 2022)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income Ordinary Income
Parent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,350,000

1.1

57,00015.1

65,0008.5

53,000111.3

188.69* 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: No
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of common shares issued and outstanding
1) Number of common shares outstandingat end of each period (including
treasury shares)
2) Number of treasury shares at end ofeach period
3) Average number of shares outstanding
during the period

As of March 31,
2021

324,240,346 As of March 31,
shares2020

324,240,346
shares

As of March 31,
2021
Year ended
March 31, 2021

43,363,670 As of March 31,
shares2020
280,879,143
Year ended
shares March 31, 2020

43,359,344
shares295,506,271
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2021
(April 1, 2020 – March 31, 2021)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Operating Loss

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2021

925,259(6.1)(1,155)–27,70980.4

12,644(57.9)

Year ended March 31, 2020

984,888

0.2(6,507)–

15,359(16.7)

29,998–Net Income
per Share

Diluted Net Income
per Share
Yen

Yen

Year ended March 31, 2021

45.02

–

Year ended March 31, 2020

101.51–(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2021

1,417,801

646,61245.6

2,302.03

As of March 31, 2020

1,359,719

560,33441.2

1,994.84

Reference: Stockholders’ equity: As of March 31, 2021: ¥646,612 million As of March 31, 2020: ¥560,334 million* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* 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 published. Actual results
may differ significantly due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Overview of operating results, etc., (4)Forecasts,” on pages 5-7.
The DNP Group will hold a briefing (conference call) for institutional investors and analysts regarding its
financial results and medium-term management plan on May 17, 2021. Materials used at the briefing will be
uploaded to the DNP website at around 14:00 JST on the same day.

Contents
1. Overview of operating results, etc........................................................................................................... 2(1) Overview of operating results for the year ended March 31, 2021 ................................................... 2(2) Overview of financial position for the year ended March 31, 2021 ................................................... 4(3) Overview of cash flows for the year ended March 31, 2021 ............................................................. 5(4) Forecasts ........................................................................................................................................... 5(5) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2021
and year ending March 31, 2022 ...................................................................................................... 7(6) Business risks ................................................................................................................................... 7
2. Information on the DNP Group ............................................................................................................. 11
3. Management policies ............................................................................................................................ 15(1) Core policies .................................................................................................................................... 15(2) Management targets ....................................................................................................................... 15(3) Medium- and long-term management strategy ............................................................................... 15
4. Basic approach to selecting accounting standards............................................................................... 17
5. Consolidated financial statements and key notes................................................................................. 18(1) Consolidated balance sheets .......................................................................................................... 18(2) Consolidated statements of income and comprehensive income ................................................... 20(3) Consolidated statements of changes in net assets ......................................................................... 22(4) Consolidated statements of cash flows ........................................................................................... 24(5) Notes regarding consolidated financial statements ........................................................................ 26[Notes on premise of a going concern] ........................................................................................... 26[Basis of presenting consolidated financial statements] ................................................................. 26[Consolidated balance sheets] ....................................................................................................... 28[Consolidated statements of income] ............................................................................................. 28[Consolidated statements of changes in net assets] ...................................................................... 29[Segment information, etc.] ............................................................................................................. 31[Per share information] ................................................................................................................... 35[Significant subsequent events] ...................................................................................................... 35
6. Non-consolidated financial statements and key notes ......................................................................... 36(1) Non-consolidated balance sheets ................................................................................................... 36(2) Non-consolidated statements of income ......................................................................................... 38(3) Non-consolidated statements of changes in net assets.................................................................. 39(4) Notes regarding non-consolidated financial statements ................................................................. 40[Notes on premise of a going concern] ........................................................................................... 40-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the year ended March 31, 2021
Business conditions surrounding the DNP Group during the fiscal year ending March 2021 were
unfavorable, with a sharp retrenchment in consumer spending and corporate activity due torestrictions on the movement of people and goods caused by the novel coronavirus (hereafter,
COVID-19). While worldwide economic activity gradually resumed around summer 2020, this wasfollowed by a renewed increase in global COVID-19 cases from autumn through winter. Uncertainty
regarding the outlook for containing COVID-19 increased in 2021, including the Japanese
government’s declaration of a state of emergency.
Amid these conditions, the DNP Group worked to create new value that meets people’s
expectations as well as resolving social issues in order to realize a better, more sustainable society
and provide more comfortable lifestyles. The DNP Group optimized its capital allocation to target
focus business areas with high profitability and prospects for market growth, such as data
distribution, the Internet of Things (IoT)/next-generation communications, mobility, and environment
by combining its unique strengths in printing and information (P&I) and forming deeper alliances with
its numerous partners. It also worked to build a strong business portfolio by restructuring to enhancecompetitiveness.
While demand for printed materials fell sharply during the fiscal year due to the cancellation of
events and exhibitions and the suspension of sales promotion activities, the adoption of remote
working, more widespread use of online learning and medical consultations, and accelerated uptakeof a variety of online services resulted in growth for IT services and IT equipment-related products
leveraging the DNP Group’s sophisticated information security platform. The heightened global
focus on reducing environmental impact also resulted in greater demand for environmentallyconscious products and services.
The DNP Group also worked to strengthen its business base to support long-term growth by using
information and communications technology (ICT) to improve productivity, revamping its internal
system platform, and accelerating its environmental, human capital, and human rights initiatives in
response to megatrends such as digital transformation (DX).
The DNP Group’s main business activities during the fiscal year included focusing on products suchas its battery pouches for lithium-ion batteries, metal masks used in the production of organic
light-emitting diode (OLED) displays, and optical film for displays, in which it has leading global
market shares, and smart cards, in which it holds the leading market share in Japan. It also worked
to strengthen businesses associated with Business Process Outsourcing (BPO), which handles
business processes on behalf of companies seeking to respond to labor shortages and work-stylereforms.
In the mobility business, one of its focus areas, the DNP Group worked to develop products andservices to support a “next-generation automotive society,” which requires lower environmental
impact, higher energy efficiency, and greater information security, safety, and comfort. Specifically,
the DNP Group developed and provided battery pouches for lithium-ion batteries used in electricvehicles (EVs) and other applications, decorative films and panels that enhance vehicles’
interior/exterior functionality and design, and security solutions leveraging encryption and othertechnologies.
In the IoT/next-generation communications and data distribution businesses, the DNP Group
worked to foster a safer and more enjoyable information society by developing products such astransparent antenna films compatible with the 5G standards that launched in Japan in March 2020and vapor chambers for smartphone heat dissipation components. The DNP Group also launched-2-

its XR (Extended Reality) communications business, which will develop and operate virtual spaces
in parallel with real-world urban spaces and facilities in cooperation with municipalities and facility
managers throughout Japan. These initiatives involve integrating real-world and virtual spaces using
technologies such as virtual reality (VR), augmented reality (AR), and mixed reality (MR) to create
PARALLEL CITY urban XR spaces in cooperation with regional communities, expanding the value
and functionality of real-world spaces to offer new experiences to consumers and revitalize regional
areas.
In its environmental business, the DNP Group fully launched sales of the va-Q-tec series of
specialized high-quality insulating boxes for pharmaceuticals developed by German vacuum
insulation panel manufacturer va-Q-tec AG. These products do not require power and can maintainultra-low temperatures (e.g., -20/-70°C) for long periods of time, making them suitable fortransporting COVID-19 vaccines.
As a result of the above, consolidated net sales for the year ended March 31, 2021 fell 4.7% year
on year to ¥1,335.4 billion, consolidated operating income fell 12.0% to ¥49.5 billion, consolidated
ordinary income fell 6.1% to ¥59.9 billion, and net income attributable to parent company
shareholders fell 63.9% to ¥25.0 billion. ROE, which the DNP Group has adopted as its key
profitability yardstick, was 2.6%.
Business segment results for the year ended March 31, 2021 are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, areas such as ID cards (mainly Japan’s social security andtax number (“My Number”) cards) and BPO saw steady growth, partly reflecting an increase indemand driven by the government’s economic stimulus measures. However, overall sales in the
Information Innovation business declined due to the substantial impact of falling demand forpamphlets, catalogs, and other printed media due to the cancellation or downscaling of events andpromotional campaigns throughout Japan.
In the Imaging Communication business, sales declined despite the gradual resumption of eventsand reopening of amusement facilities with measures to prevent infection in place and theaccompanying rebound in demand of photo shooting and printing services.
In the Publishing business, more time spent at home due to government stay-at-home requests
drove favorable e-book sales trends in the “honto” hybrid bookstore network, which handles bothprinted and electronic books, and an increase in the number of institutions outsourcing digital libraryservices. However, overall sales in the Publishing business declined due to the continuing
downtrend in printing orders for books and magazines.
As a result of the above, overall segment sales fell 6.6% year on year to ¥721.8 billion andoperating income fell 36.9% to ¥19.1 billion due to the decline in sales.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked in the environmental-related market to develop
and sell its GREEN PACKAGING series of environmentally conscious packaging, and achieved
positive results from manufacturing reforms including production and operational streamlining.
However, demand for commercial packaging materials for souvenirs and restaurant use declined
due to government stay-at-home requests. As a result, overall sales in the Packaging businessdeclined.
In the Living Spaces business, the DNP Group worked to create new demand by expanding its
lineup of products with antibacterial and antiviral functionality to combat infectious diseases.

-3-Enquiries regarding decorative films and interior and exterior decorative materials rebounded fromthe third quarter amid signs of a recovery in domestic and overseas automobile demand and thedomestic housing market, but sales in the Living Spaces business declined due to the considerable
impact from the delay or suspension of domestic housing construction and remodeling work throughthe second quarter.
In the High-Performance Industrial Supplies business, sales rose for battery pouches used in
automotive lithium-ion batteries due to increasing worldwide growth in demand for electric vehicles
that reduce environmental impact, and for battery pouches used in lithium-ion batteries for tabletsand smartphones, due mainly to an increase in teleworking. As a result, overall sales in the Industrial
Supplies business increased.
As a result of the above, overall segment sales fell 6.0% year on year to ¥368.0 billion but
operating income grew 25.3% to ¥13.9 billion, due partly to growth in the High-Performance
Industrial Supplies business and a decline in raw material prices.
Electronics
In the Display Components business, uptake of teleworking, online lessons, and greater time spentat home resulted in upbeat sales of optical films for tablets, monitors, and TVs. While sales of color
filters for LCD displays declined due to business structure reforms and streamlining, sales of metalmasks used in the production of organic light-emitting diode (OLED) displays remained constant,due partly to increased demand for these displays in smartphones. As a result, overall sales in the
Display Components business increased.
In the Electronic Devices business, sales rose due to an overall increase in demand driven by
growth in teleworking and online services and the launch of 5G.
As a result of the above, overall segment sales grew 5.6% year on year to ¥197.0 billion andoperating income grew 7.5% to ¥36.6 billion due to sales growth and benefits from businessrestructuring.
[BEVERAGES]
Beverages
Amid falling demand from tourist destinations and restaurants due to government stay-at-homerequests, the DNP Group endeavored to respond to lifestyle changes caused by the COVID-19
pandemic, such as greater demand from consumers drinking at home and an increase in restaurant
take-out demand.
Overall segment sales fell 7.0% year on year to ¥51.4 billion as growth in sales of the Lemondo
range of alcoholic beverages was offset by factors including the impact of government stay-at-homerequests, a decrease in tourists and hotel guests, and a decline in beverage demand due to thetemporary closure of restaurants and other businesses. Operating income also decreased 59.0%
year on year to ¥0.8 billion, due mainly to a decline in sales volume.
(2) Overview of financial position for the year ended March 31, 2021
Total assets at the end of the fiscal year increased by ¥103.2 billion from the end of the previous
fiscal year to ¥1,825.0 billion, due mainly to an increase in investment securities.
Total liabilities decreased by ¥26.7 billion from the end of the previous fiscal year to ¥726.4 billion,
due mainly to a decline in corporate bonds.
Net assets increased by ¥130.0 billion from the end of the previous fiscal year to ¥1,098.6 billion,
due mainly to an increase in valuation difference on available-for-sale securities.

-4-(3) Overview of cash flows for the year ended March 31, 2021
Cash and cash equivalents at the end of the current fiscal year decreased by ¥73.1 billion from theend of the previous fiscal year to ¥304.2 billion.
Cash flow provided by operating activities totaled ¥61.6 billion (¥93.9 billion in the previous fiscal
year), due mainly to ¥46.4 billion in income before income taxes and non-controlling interests and¥50.8 billion in depreciation.
Cash flow used by investing activities totaled ¥56.2 billion (cash provided of ¥191.0 billion in theprevious fiscal year), due mainly to a ¥50.9 billion in payments for purchases of property, plant andequipment.
Cash flow used in financing activities totaled ¥78.2 billion (¥41.2 billion in the previous fiscal year),due mainly to ¥52.4 billion in payments for redemption of bonds and ¥18.5 billion in dividends paid.
The trends in DNP’s cash flow indicators are shown below.
Year ended
March 2017

Year ended
March 2018Year ended
March 2019Year ended
March 2020

Year ended
March 2021

Equity ratio (%)

59.4

58.7

56.1

53.2

57.2

Market value-based
equity ratio (%)

42.4

36.9

45.0

37.5

35.7

Debt-to-cash flow ratio(year)

2.4

3.5

2.4

2.3

2.6

Interest coverage ratio(times)

32.6

21.9

33.4

59.8

42.6

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 paid
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 paid: Interest paid on the consolidated statements of cash flows(4) Forecasts
The ongoing upheaval in domestic and overseas economic, social, and environmental trends
suggests the need to establish a “new normal” given that the pandemic will likely take time to contain.
The need for environmentally conscious corporate activity is steadily increasing amid the focus on“green recovery” policies targeting a global economic rebound, and the announcement by Japan’s
Ministry of Economy, Trade and Industry (METI) in December 2020 of its “Green Growth Strategy
Through Achieving Carbon Neutrality in 2050” that aims to make Japan a carbon-free society.
The printing industry also needs to respond to changes in economic activity and lifestyles whileworking to prevent COVID-19 infections. The DNP Group is working to create new value amid
adverse business conditions by aligning with the megatrend of digital transformation (DX) andachieving synergies between printed material, digital content, and services. For example, the DNPGroup will focus on expanding its business by capturing new demand in areas such as digitalmarketing, e-books, educational ICT, next-generation healthcare and mobility, environmentallyconscious products and services, and antibacterial and antiviral products.

-5-

The DNP Group’s long-term goal is to constantly create value in order to foster connections between
individuals and society as part of its corporate philosophy: “The DNP Group connects individuals
and society, and provides new value.” The DNP Group will continue striving to create value that
resolves social issues and meets people’s expectations by combining its unique strengths in printing
and information (P&I) and innovating through deeper alliances with external partners to connect
people with areas such as education, healthcare, apparel, food, and housing.
The DNP Group has defined the following four growth areas where it aims to expand its businessby drawing on its strengths, and presented the following vision of the future it aims to achieve.
The DNP Group will use the value it creates to achieve the following goals: in Knowledge andCommunication, a future in which people around the world have greater opportunities for safe andsecure communication and can pass on and develop knowledge; in Food and Healthcare, a future inwhich people around the world are free from anxieties about their own lives and can live out theirwhole lives safely, securely, and with a high quality of life; in Lifestyle and Mobility, a future where allliving spaces worldwide that people occupy and move within are comfortable, safe, and secure; andin Environment and Energy, a future that reduces global environmental impact and allows people
worldwide to live sustainably in harmony with the earth.
The DNP Group has also defined several focus businesses based on an appropriate evaluation of
the value generated by its unique strengths in terms of profitability and market growth potential. It is
working to create a balanced, resilient business portfolio based on optimal allocation of its capital
resources, mainly in four focus businesses: data distribution, IoT/next-generation communications,mobility, and environmental.
The DNP Group also intends to unstintingly pursue diversity & inclusion in order to constantly
provide the value expected by the diverse society in which we live. It seeks both to respond tochange by accurately understanding and analyzing a variety of risks (volatility factors), and to effectchange that contributes to a better, more sustainable society and more enjoyable lifestyles.
As part of the DNP Group’s initiatives in individual business segments, in the Information
Communication segment it intends to focus on its BPO business, where overall demand isincreasing, and its payment service business, which is benefiting from greater uptake of cashless
payments. It also aims to expand its information media business that leverages digitaltransformation (DX), including hybrid marketing that combines real-world and digital sales channels
and the construction of PARALLEL CITY urban XR spaces in cooperation with regional communities,
while also focusing on the certification and security business that is essential to a digital society. In
the Publishing business, the DNP Group will continue to advance its “honto” hybrid bookstore
network business, which combines physical bookstores, online bookstores, and e-book services, thedigital library business, and content-related businesses, while continuing to review its production
platform and implement other restructuring to respond to the ongoing decline in demand for printed
media.
In the Lifestyle and Industrial Supplies segment, the DNP Group aims to increase sales of battery
pouches for automotive lithium-ion batteries in line with greater uptake of electric vehicles, and will
work to develop and provide products with antibacterial and antiviral functionality. It also aims toincrease profitability through a further shift toward high-value-added products such as its GREEN
PACKAGING series of environmentally conscious packaging and high-performance barrier film.
In the Electronics segment, the DNP Group targets steady growth in metal masks used in the
production of organic light-emitting diode (OLED) displays, leveraging the advantage of its leading
global market share, in response to greater uptake of OLED displays in smartphones, laptop
computers, and tablets. In optical films, where the DNP Group has secured leading global shares for
products such as anti-glare films, it targets volume and market share growth leveraging the-6-

production lines capable of exceptionally wide coating introduced at its Mihara plant. In addition toincreasing sales of products for OLED displays, the DNP Group intends to expand its new productlineup, for example to include foldable products.
The DNP Group will continue to streamline and make more effective use of its assets by reviewing
its fixed asset and investment securities holdings.
For the fiscal year ending March 31, 2022, the DNP Group forecasts consolidated net sales of¥1,350.0 billion, consolidated operating income of ¥57.0 billion, consolidated ordinary income of¥65.0 billion, and consolidated net income attributable to parent company shareholders of ¥53.0
billion.
(5) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2021 and year ending March 31, 2022
The DNP Group positions responding to the expectations of its shareholders and achieving
long-term growth to create a sustainable society while steadily returning profits to shareholders as
key management initiatives.
It will return profits by paying stable dividends to shareholders, taking factors including earnings
and payout ratio into account.
The DNP Group also intends to secure retained earnings and strengthen its business base inpreparation for future business development. It uses retained earnings to invest in research anddevelopment related to new products and technologies, equipment needed to develop new
businesses, strategic alliances and M&A, and human resources to support these activities. It
concurrently implements flexible capital policies while factoring in its capital requirements andmarket trends.
The DNP Group believes that these efforts will contribute to higher profits that can then be passed
on to shareholders in future.
Based on this policy, the DNP Group will pay a year-end dividend of ¥32 per share, and adding theinterim dividend of ¥32 per share, it plans to pay a full-year dividend of ¥64 per share in the current
fiscal year. This will result in a consolidated payout ratio of 71.7% for the current fiscal year.
For the fiscal year ending March 31, 2022, the DNP Group forecasts the interim dividend at ¥32
and the year-end dividend at ¥32, for a full-year dividend of ¥64.
(6) Business risks
The DNP Group’s three responsibilities as a company are “Value Creation,” “Integrity in Conduct,”and “Transparency (Accountability),” and it has constantly improved from a PDCA perspective byidentifying key themes aimed at achieving these responsibilities. The DNP Group also pursues
comprehensive risk management initiatives that involve an accurate understanding of environmental(E), economic, and social (S) issues and of the risks associated with them, with the aim of continuing
to provide new value based on its corporate philosophy. The DNP Group is also working tostrengthen its corporate governance (G) by building a framework for prompt and accurate
management decision-making, business execution, oversight, and audit.
The DNP Group aims to minimize the negative impact from risks and translate them into greaterbusiness opportunities by prioritizing CSR and ESG and management aimed at achieving asustainable society. It seeks to create new value by combining its unique strengths in P&I anddeepening alliances with external partners both to respond to rapid changes in the businessenvironment and effect proactive change to create a better future.
Amid the major economic and social impact from the COVID-19 pandemic both in and outside
Japan, the DNP Group is pursuing its corporate activities while prioritizing the health and safety of
employees and their families based on the DNP Group Safety and Health Charter. The DNP Group-7-

will continue to rapidly and correctly implement the necessary responses, including working toprevent infection both internally and externally and promoting work styles aligned with the newnormal, based on central and local government policy and the DNP Group’s response strategy.
1) Environmental risks○ Accelerated changes and initiatives relating to achievement of decarbonized, recycling-oriented
society in harmony with nature
・ Changes in response to global environmental and climate change (regulation, deregulation,scope, etc.)
・ Occurrence and growing impact of extreme weather and natural disasters
・ Accelerated reduction in greenhouse gas emissions
・ Review of energy-related policies, greater use of renewable energy, sharp swings in energy
prices・ Global infectious disease pandemics
・ Ocean contamination and soil pollution due to plastics, growing water risk
・ Accelerated loss of biodiversity/degradation of ecosystems/depletion of natural resources, andothersThe DNP Group constantly strives for a balance between its business activities and the global
environment. In March 2020, it drew up the DNP Group Environmental Vision 2050 to present its
ideals for 2050 from a long-term perspective, and is accelerating initiatives aimed at achieving adecarbonized, recycling-oriented society in harmony with nature. All of the DNP Group’s employees
will work to protect the environment and achieve a sustainable society through their strong
awareness of the relationships between all its business activities and the environment.
To respond to natural disasters, the DNP Group takes steps to protect production equipment andother major facilities from fires, earthquakes, and flooding, seeks geographical diversification of its
production facilities and raw material suppliers, and undertakes business continuity planning (BCP)
and appropriate management (BCM) to minimize production shutdowns and product supply
disruptions. The DNP Group also use various types of insurance to transfer risk. Nevertheless, the
DNP Group’s performance could be substantially affected in the event of major natural disasters,
infectious disease pandemics, or other unexpected events that cause production shutdowns or
significantly damage or impair social infrastructure.
The DNP Group’s business activities benefit from the natural environment in a variety of ways,
including the procurement of raw materials from forest resources to make printing paper and otherproducts and the use of water and energy in manufacturing processes. The DNP Group also
undertakes business activities that are closely connected with society, including securing diverse
human and material resources and building global supply chains. It clearly recognizes these
conditions and pursues a variety of initiatives to sustain its growth and that of society while ensuring
environmental sustainability.
Both in and outside Japan, moves are underway to tighten legal regulations and international
standards to respond to issues such as climate change and protecting biodiversity, and a greater
focus in assessments of enterprise value on companies’ stance toward resolving social issues. The
transition to a decarbonized society is an urgent global issue that requires infrastructure andbusiness structure reforms. The DNP Group will strive both to keep pace with these changes and toeffect proactive change aimed at creating a sustainable society and environment in order to increase
the positive impact on earnings and its corporate activity.

-8-2) Social risks○ Fulfilling social responsibilities, avoiding reputational risk・ Compliance violations, large-scale misuse or leakage of data, products/service quality issues,etc.
○ Securing and expanding human capital・ Pursuing diversity & inclusion: Initiatives to leverage human capital diversity as a strength,
female workforce participation, promotion of employment from a diverse range of countries andregions, creating employment opportunities for seniors and people with disabilities, etc.
・ Employee health management and safety/hygiene・ Personnel shortages due to personnel outflows/worsening hiring conditions, etc.
・ Inappropriate working conditions or terms of employment○ Escalating issues caused by major changes in society or megatrends
・ Social and political turmoil, increased country risk
・ Demographic changes (shrinking/aging population in developed markets, emerging market
population growth, etc.)
・ Increasing inequality between urban and regional areas and between individual
countries/regions
・ Food loss, ability to ensure safe, reliable food supply
・ Accelerating social changes such as information society and sharing economy
・ Increased importance of public health, and others
The DNP Group also intends to unstintingly pursue diversity & inclusion that draws on the strength
represented by its employees’ diverse backgrounds in order to develop and provide the diverse
value expected by the diverse society in which we live. The DNP Group is working to build a base forvalue creation that respects individuals’ diversity and revamp its corporate culture and personnel
systems in order to secure and increase human capital.
In the pursuit of its corporate activities, the DNP Group also complies with the United Nations
International Bill of Human Rights, Global Compact, and Guiding Principles on Business and Human
Rights and the International Labour Organization’s (ILO) Declaration on Fundamental Principles andRights at Work. In March 2020, it drew up the DNP Group Human Rights Policy with the aim ofincreasing awareness of and compliance with these initiatives. The DNP Group places the utmost
importance on human dignity and, on the assumption of disciplined behavior by its employees, aims
to offer work styles that consider the diversity of its workforce and a healthy, safe, and dynamic
workplace based on respect for individuals’ diversity, including their culture, nationality, race,
ethnicity, language, religion, values, gender, age, gender identity, sexual orientation, and any
disabilities. However, sudden changes in employment conditions could impede the DNP Group’s
ability to create a highly competitive organization if it is unable to secure and train personnel with thenecessary expertise or ability to flexibly respond to change.
The DNP Group’s overseas business activities in particular involve a diverse range of social,political, and economic variables. Its performance could be affected if its overseas businessactivities mainly in Europe, the U.S., and Southeast Asia are obstructed by unexpected changes inlaws and regulations governing the environment, society, and other areas, country risk, difficulties
with hiring and securing personnel, and the emergence of a variety of other risks relating to humanrights, military conflicts, etc.
Additionally, the DNP Group seeks to establish and rigorously uphold corporate ethics throughout
the group, and works to earn the trust of society by ensuring that all employees comply with laws
and regulations in all corporate activities, maintaining the high ethical standards expected by society,and contributing to maintaining and advancing orderly and freely competitive markets with a-9-consistently fair attitude. Nevertheless, the DNP Group’s performance could be affected if it issubject to lawsuits in Japan or overseas that result in fines or other penalties or reputational
damage.
3) Economic risks○ “New normal” initiatives: Accelerating digital transformation (DX), accelerating changes in work
styles, consumption behavior, educational conditions, global supply chain, etc.
○ Changes in domestic and overseas economic conditions and consumption trends, foreign
currency fluctuations
・ Aging IT/societal infrastructure, logistics issues
・ Changes in supply/demand balance for raw material procurement, etc.
○ Acceleration and diversification of technological innovation and intensification of developmentcompetition
・ Outflow or infringement of intellectual property
・ Decline in business performance or inadequate internal controls at partner companies
・ Increase in cyberattacks, and others
In relation to domestic and overseas economic conditions and consumption trends, the DNP Group
does business with an extremely large number of corporate customers in a wide range of industries
and pursues stable business activities supported by a business base that does not rely on specificindustries and companies. If consumer spending and other components of domestic demand slump
more than expected, owing to domestic and overseas economic fluctuations in connection with
global economic trends, its performance could be affected by a decrease in production volume,
decline in unit prices, and other factors. Electronics-related industries are particularly susceptible tochanges in production and demand in emerging markets and global declines in unit prices, and the
DNP Group’s performance could be affected by major changes in market trends.
The DNP Group expects the impact of foreign exchange rates to steadily increase as it pursues
business expansion in various overseas regions. It continues to hedge the risk of currency
fluctuations via an increase in local-market manufacturing, the use of foreign exchange forward
contracts, and other means, but its performance could be affected by drastic changes in foreignexchange rates.
The DNP Group provides new products and services by applying and advancing its printing andinformation technologies and by incorporating the strengths of partners outside the company. The
DNP Group’s performance could be affected by factors such as further intensification ofdevelopment competition in Japan and overseas and a delayed response to the new normal,
greater-than-expected shortening of product life cycles, and changes in market trends as therequirements that must be addressed by this development process become more diverse.
In addition, the DNP Group engages in strategic business and capital alliances and corporate
acquisitions, and its performance could be affected if it is unable to achieve initially expectedsynergies as a result of deterioration in the business environment affecting the companies andbusinesses involved in these alliances and acquisitions.
The COVID-19 pandemic has acted as a trigger for further progress with digital transformation(DX), accelerating changes in work styles and consumption behavior, education, healthcare, andglobal supply chains. The DNP Group’s performance could be affected if it fails to keep pace withthese trends.
In procuring raw materials and other items, the DNP Group works to ensure stable volume andmaintain optimal procurement prices, including by purchasing printing paper and film materials frommultiple suppliers in Japan and overseas. However, there is a risk of imbalances between supply-10-and demand due to sharp fluctuations in oil prices, sudden surges in demand in emerging markets,
the depletion of natural resources, the impact of climate change, and human rights issues resulting
from supply chain labor conditions. The DNP Group will respond during such times by negotiatingwith client companies and business partners, but its performance could be affected if the
procurement of raw materials or other items becomes extremely difficult or if purchasing prices rise
sharply.
In addition, global computer networks and IT systems have become essential tools for conducting
business, and there is an increasing risk from software and hardware defects, a constantly changing
variety of cyberattacks, computer virus infections, and personal data leaks. The DNP Group regards
information security and the protection of important data, including personal data, as a top
management priority, and is making every effort to maintain and manage systems and data bystrengthening its organization and training employees. However, its business activities could be
affected in the event of a malicious cyberattack, an incident involving important data, or other such
events.
2. Information on the DNP GroupThe DNP Group includes the Company, 151 subsidiaries, and 23 affiliated companies. Its two main
businesses are Printing and Beverages. The former encompasses Information Communication,
Lifestyle and Industrial Supplies, and Electronics.
The businesses and segments of the DNP Group are broadly outlined below. The four businesssegments cited below are the same as the reporting segment categories.
[PRINTING]
Information Communication
Production/sale of textbooks, books, weekly/monthly/quarterly magazines, promotional materials,
securities certificates, business forms, cards, payment-related services, photographic materials, andbusiness equipment and systems; and planning/design/construction/management of stores andadvertising media
Major companies
Production

OGUCHI BOOK BINDING & PRINTING CO., LTD.
DNP Imagingcomm Co., Ltd., DNP SP Solutions Co., Ltd.
DNP Graphica Co., Ltd., DNP Communication Design Co., Ltd.
DNP Book Factory Co., Ltd., DNP Data Techno Co., Ltd.
DNP Media Art Co., Ltd., DNP Media Support Co., Ltd.

Production and sales

DNP Imagingcomm Asia Sdn. Bhd., DNP Imagingcomm Europe B.V.
DNP Imagingcomm America Corporation, Tien Wah Press (Pte.) Ltd.
*MK Smart Joint Stock Company

Sales and services

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
K Photo Image Co., Ltd., CYBER KNOWLEDGE ACADEMY Co., Ltd.
DNP ID System Co., Ltd., DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd., DNP Digital Solutions Co., Ltd.
DNP HyperTech Co., Ltd., DNP Photo Imaging Japan Co., Ltd.
DNP PLANNING NETWORK Co., Ltd., DNP hollyhock Co., Ltd.
2Dfacto, Inc., DNP Metro Systems Co., Ltd., mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd., MARUZEN PUBLISHING CO., LTD.

-11-

MaruzenJunkudo Bookstores Co., Ltd.,
Toshokan Ryutsu Center Co., Ltd., honto Book Services Co., Ltd.
Colorvision International, Inc., DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC, Sharingbox SA* Nihon Unisys, Ltd., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd.
The shares of Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE
INC., Nihon Unisys, Ltd. and BOOKOFF GROUP HOLDINGSLIMITED are traded on the Tokyo Stock Exchange.
Lifestyle and Industrial Supplies
Production/sale of containers and packaging products, packaging equipment and systems, interior
and exterior decorative printed materials, high-performance industrial supplies, and other products
Major companies
Production

DNP Technopack Co., Ltd., N-Tech CO., Ltd.
Sagami Yoki Co., Ltd., DNP Ellio Co., Ltd.
DNP Advanced Materials Co., Ltd.
DNP Living Space Co., Ltd., DNP Hoso Co., Ltd.

Production and sales

DNP Tamura Plastic Co., Ltd., Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya Co., Ltd.
PT DNP Indonesia, DNP Vietnam Co., Ltd.

Sales and services

DNP Lifestyle Materials Marketing Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP・SIG Combibloc Co., Ltd.

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

DNP LSI Design Co., Ltd., DNP Fine Optronics Co., Ltd.
DNP Precision Devices Himeji Co., Ltd.

Production and sales

DT Fine Electronics Co., Ltd.
DNP Denmark A/S, DNP Photomask Europe S.p.A.
* Photronics DNP Mask Corporation
Photronics DNP Mask Corporation Xiamen

Sales

DNP Taiwan Co., Ltd.

Companies with multiple types of businesses
Production and sales DNP Fine Chemicals Co., Ltd., DNP Engineering Co., Ltd.
DNP Shikoku 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.

-12-

DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
DAP Technology Co., Ltd., DNP Hokkaido Co., Ltd.
DNP Tohoku Co., Ltd., DNP Chubu Co., Ltd.
DNP Nishi Nippon Co., Ltd.
DNP Asia Pacific Pte. Ltd., DNP Corporation USA
DNP America, LLC, DNP Holding USA Corporation[BEVERAGES]
Beverages
Production/sale of carbonated beverages, mineral waters, and other products, centered on
Hokkaido Coca-Cola Bottling Co., Ltd.
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies-13-Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers
Information Communication

Lifestyle and Industrial Supplies(Production and sales)
DNP Imagingcomm Asia Sdn. Bhd.
DNP Imagingcomm Europe B.V.
DNP Imagingcomm America
Corporation
Tien Wah Press (Pte.) Ltd.
MK Smart Joint Stock Company*(Production and sales)
PT DNP Indonesia
DNP Vietnam Co., Ltd.

Electronics(Production and sales)
DNP Denmark A/S
DNP Photomask Europe S.p.A.
Photronics DNP Mask Corporation*
Photronics DNP Mask Corporation
Xiamen*(Sales and service provision)
Colorvision International, Inc.
DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC
Sharingbox SA(Sales and service provision, etc.)
Maruzen CHI Holdings Co., Ltd.
INTELLIGENT WAVE INC.
K Photo Image, Co., Ltd.
CYBER KNOWLEDGE ACADEMY
Co., Ltd.
DNP ID System Co., Ltd.
DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd.
DNP Digital Solutions Co., Ltd.
DNP Photo Imaging Japan Co., Ltd.
DNP HyperTech Co., Ltd.
DNP PLANNING NETWORK Co.,Ltd.
DNP hollyhock Co., Ltd.
2Dfacto, Inc.
DNP Metro Systems Co., Ltd.
mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co.,Ltd.
Toshokan Ryutsu Center Co., Ltd.
honto Book Services Co., Ltd.
Nihon Unisys, Ltd. *BOOKOFF GROUP HOLDINGSLIMITED*
Kyoiku Shuppan Co., Ltd.*(Production and sales)
DNP Fine Chemicals Co., Ltd.
(Sales and service provision, etc.)
DNP Logistics Co., Ltd.
DNP Human Services Co., Ltd.
DNP Hokkaido Co., Ltd.
DNP Asia Pacific Pte. Ltd.

(Production)
DNP Technopack Co., Ltd.
N-Tech CO., Ltd.
Sagami Yoki Co., Ltd.
DNP Ellio Co., Ltd.
DNP Advanced Materials Co., Ltd.
DNP Living Space Co., Ltd.
DNP Hoso Co., Ltd.

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

(Production and sales)
DT Fine Electronics Co., Ltd.

(Sales and service provision, etc.)
DNP Lifestyle Materials Marketing
Co., Ltd.
LIFESCAPE MARKETINGCORPORATIONDNP・SIG Combibloc Co., Ltd.

DNP Engineering Co., Ltd.

DNP Shikoku Co., Ltd.

DIC Graphics Corporation*

DNP Trading Co., Ltd.
DNP Facility Services Co., Ltd.
DNP Tohoku Co., Ltd.
DNP Corporation USA

DNP Accounting Services Co., Ltd.
DAP Technology Co., Ltd.
DNP Chubu Co., Ltd.
DNP America, LLC

DNP Information Systems Co., Ltd.

Printing businessNotes: *(Production)
DNP LSI Design Co., Ltd.
DNP Fine Optronics Co., Ltd.
DNP Precision Devices Himeji Co.,Ltd.

(Production and sales)
Hokkaido Coca-Cola Bottling Co., Ltd.

Dai Nippon Printing Co., Ltd.

(Production)
OGUCHI BOOK BINDING &PRINTING CO., LTD.
DNP Imagingcomm Co., Ltd.
DNP SP Solutions Co., Ltd.
DNP Graphica Co., Ltd.
DNP Communication Design Co.,Ltd.
DNP Book Factory Co., Ltd.
DNP Data Techno Co., Ltd.
DNP Media Art Co., Ltd.
DNP Media Support Co., Ltd.

Beverages(Sales)DNP Taiwan Co., Ltd.

: Equity-method affiliated companies (Otherwise, subsidiaries): Flow of products, materials and services-14-

DNP Nishi Nippon Co., Ltd.
DNP Holding USA Corp.

Beverages
business3. Management policies(1) Core policies
As part of its corporate philosophy of connecting individuals and society and providing new value,
the DNP Group endeavors to conduct proactive business activities from a long-term perspective andsteadily enhance corporate value. As part of its business vision involving expansion in four core
growth areas via printing and information (P&I) innovations, it is working to create value by
combining its unique strengths in P&I and alliances with partners. Through these initiatives, the DNPGroup will ceaselessly work to create “Tomorrow’s Basic” and contribute to a sustainable, better
society and more enjoyable lifestyles.
The DNP Group seeks to develop and provide value that blends into people’s everyday lives byresolving social issues and meeting people’s expectations. This goal of constantly creating essential
value informs the DNP Group’s internal and external brand statement: “Today’s Innovation isTomorrow’s Basic.” To achieve this goal, the DNP Group works to fulfill what it considers to be its
three responsibilities as a company: “Value Creation,” “Integrity in Conduct,” and “Transparency(Accountability).”
An example of this on the closely watched environmental front is its move to accelerate initiatives
aimed at creating new value to achieve a decarbonized society, a recycling-oriented society and asociety in harmony with nature as part of the DNP Group Environmental Vision 2050 it formulated in
March 2020. Its response to the urgent and critical issue of climate change involves identifying risks
and opportunities associated with its business and using scenario analysis to evaluate the financial
impact. Through energy conservation activities, the adoption of and upgrade to high-efficiency
equipment, and the introduction of renewable energy, the DNP Group aims to achieve net-zerogreenhouse gas emissions from business activities at its own business locations by 2050, while
contributing to the development of a decarbonized society via its products and services. The DNPGroup discloses data in line with the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD).
(2) Management targets
The DNP Group is working to proactively develop and provide new value based on its corporate
philosophy amid significant economic, social, and environmental changes and a shift in individuals’
values. It has defined four growth areas in which it aims to leverage its strengths to expand its
business, and will work to steadily deliver on quantitative milestones tied to a specific timeline while
executing on its long-term strategy.
The DNP Group aims to generate operating income of ¥75 billion, an operating income to sales
ratio of 5.2%, and ROE of at least 5.0% in the fiscal year ending March 2025. In order to achievethese goals, it will first work to implement its medium-term management plan covering the threefiscal years ending March 2021 through March 2023.
(3) Medium- and long-term management strategy
The DNP Group will work to achieve the targets in its three-year medium-term plan that runs throughthe fiscal year ending March 2023 via the two basic strategies of creating value through P&I
innovations and strengthening the business infrastructure needed to support growth.
< Basic strategy 1> Creating value through P&I innovations[1-1: Creating value primarily in growth areas]
The DNP Group analyzes social issues, megatrends, and changes in individual values to identify
key issues based on areas of interest to its stakeholders and their importance to the DNP Group.
Megatrends include digital transformation (DX), the shift to a data economy, a decline in Japan’s-15-

population and increase in the global population, longer lifespans, the move toward smart cities, andthe creation of a decarbonized society.
In response to these trends, the DNP Group identifies the value it can create by leveraging its
unique strengths, and defines its focus businesses based on an appropriate evaluation of
profitability and market growth potential. It is working to create a balanced, resilient businessportfolio based on optimal allocation of its capital resources, mainly in four focus businesses: data
distribution, IoT and next-generation communications, mobility, and environmental.
[1-2: Providing value optimized to each country and region]
The DNP Group operates its global business based on a fine-grained examination of the value of its
products and services and an accurate understanding of the attributes of each country and region
and the issues and needs of its citizens. The DNP Group is working to further expand businesses inwhich it has a leading global market share, including battery pouches for lithium-ion batteries, metalmasks used in the production of organic light-emitting diode (OLED) displays, optical film fordisplays, and thermal transfer printing media for photo printing. It is also working to create new
businesses that will address the global market.
[1-3: Increasing value using all available restructuring approaches]
The DNP Group will promote a variety of group-wide reforms in order to build a strong businessportfolio. For instance, it is working to reduce the number of printed media production bases in the
Information Communication segment, review low-value-added products in the Lifestyle andIndustrial Supplies segment and streamline its bases, and downsize its color filters business in theElectronics segment. It will allocate the human resources, land, and facilities freed up by these
efforts to development and production in its focus businesses in order to reform its businessstructure and increase its competitiveness.
< Basic strategy 2> Strengthening business infrastructure needed to support growth[2-1: Strengthening financial and non-financial capital]
The DNP Group will work to strengthen its business base through the integrated use of both financial
and non-financial capital in order to achieve longer-term growth. In addition to pursuing a capital
strategy to support business growth, it is working to strengthen and expand its non-financial capital,
including human, intellectual, manufacturing, natural resources, and social relations, and willdevelop and implement specific action plans.
On the capital policy front, the DNP Group will invest in focus businesses, mainly in growth areas,in line with basic strategy (1). It will fund these business investments both from cash on hand, by
raising growth funding from third parties, and by reducing idle assets and selling strategic
shareholdings. It will also consider a comprehensive range of capital strategies, including improving
capital efficiency, stabilizing its financial position, and shareholder returns.
The DNP Group’s core strategies regarding human capital and human rights involve pursuing
diversity and inclusion as part of its key goals of developing a diverse workforce, diverse work styles,
and a culture that allows a diverse workforce to thrive, in order to create new value through respect
for the differences of each individual group employee and the combination of these diverse strengths.
The DNP Group has focused in particular on promoting the empowerment of women since the early
2000s, and it is taking steps to support female employees’ career development, revamp work styles,
and reform its overall management. It aims to have female managers represent at least 7.0% of thetotal by the end of the fiscal year ending March 2022, and to double the number of women in
managerial and leadership positions versus February 2016.

-16-

The DNP Group also drew up the DNP Group Declaration on Health on April 1, 2021, which
positions employee health as a key management issue and aims to strategically promote better
health while implementing health-focused management to improve employee vitality and invigorate
the organization.
[2-2: Strengthening corporate governance]
DNP seeks to strengthen corporate governance as a key management priority. It has created andimplemented a robust framework for prompt and accurate management decision-making, businessexecution, oversight, and audit.
At its June general shareholders’ meeting, DNP will propose the appointment of four outside
directors (a third of its 12-member board) and one female director. It intends to continue working toensure the diversity of its board. DNP analyzes and evaluates its board’s effectiveness once a year,
discusses the results of this analysis among its external directors, and shares them with the board.
To fulfil its social responsibilities as a company, the DNP Group encourages employees to follow
the DNP Group Code of Conduct and conducts a variety of training and education programs to
improve the compliance awareness of each and every employee.
4. Basic approach to selecting accounting standards
The DNP Group uses Japanese GAAP in preparing consolidated financial statements. It plans to
consider adopting IFRS going forward and respond appropriately based on domestic and overseas
circumstances.

-17-5. Consolidated financial statements and key notes(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2020
(As of March 31, 2020)

Year ended March 31, 2021
(As of March 31, 2021)

373,013
330,798
18,00078,19932,231
23,84929,279(1,361)
884,010301,162
324,625
19,00075,54027,81023,42034,975(716)
805,817

520,307(362,218)
158,089
696,459(631,443)
65,016
141,423
16,428
131,663(103,254)
28,409409,367

533,513(369,464)
164,049
699,897(626,186)
73,710141,808
13,238
128,735(101,513)
27,221420,029

1,187
20,237
1,291
22,7162,426
21,048
1,732
25,207

298,894
64,68913,88830,443(2,286)405,629
837,713
1,721,724

422,799
111,933
9,977
31,995(2,741)
573,964
1,019,201
1,825,019

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Marketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
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
Net defined benefit asset
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-18-

(Million yen)
Year ended March 31, 2020
(As of March 31, 2020)

Year ended March 31, 2021
(As of March 31, 2021)

238,066
39,05152,4907,008
16,621
18,945
20,636
87,831
480,651

226,606
37,321
3,570
2,545
7,123
19,284
17,68893,985408,125

107,120
5,977
54,66035,68742,821
26,230272,497753,149

103,550
11,56949,49135,174
95,99722,496318,279
726,405

114,464
145,024
676,346(122,911)
812,923

114,464
145,024
683,784(122,920)
820,352

110,051

202,0175(3,448)(3,751)

11(5,082)
26,678102,856

223,624

52,794
968,574
1,721,724

54,636
1,098,613
1,825,019

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans
Bonds redeemable within 1 year
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Repair reserve
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Repair reserve
Net defined benefit liability
Deferred tax liabilities
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 on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-19-

(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
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on sale of investment securities
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes andnon-controlling interests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders

Year ended
March 31, 2020
1,401,894
1,109,051
292,842
236,568
56,274

Year ended
March 31, 2021
1,335,439
1,058,525
276,914227,384
49,529

5,586
6,050
4,024
15,662

4,341
6,742
4,539
15,623

1,466
2,784
3,898
8,150
63,786

1,255
1,736
2,253
5,245
59,90730,24851,450–30
81,728

588
1,874
365
126
2,954

5,820
26,516
1,363
7,082
2,013
42,795

2,919
4,102
4,878
2,905
1,657
16,462

102,719

46,40026,063
4,560
30,62472,094

14,874
3,753
18,627
27,772

2,597

2,684

69,49725,088-20-

Consolidated statements of comprehensive income(Million yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

Year ended
March 31, 2020
72,094

Year ended
March 31, 2021
27,772(60,054)

91,94710(445)(8,894)8(2,324)
31,272

(174)

(448)

(69,558)
2,536

120,455
148,228

(527)
3,064

145,856
2,372

-21-

(3) Consolidated statements of changes in net assets
The year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

CapitalsurplusRetainedearnings

Treasurystock

114,464

144,765

626,949(62,898)

Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during theperiodTotalstockholders’equityCommonstock(821)
114,464

144,765

Cash dividends paid
Net income attributable toparent company
shareholders
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

626,127(821)(62,898)(19,279)

69,497

69,497258

Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock

0

0

0

(60,013)(60,013)00

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period822,459(19,279)

258

Disposal of treasury stock

823,281––258

50,218(60,013)(9,536)

114,464

145,024

676,346(122,911)

812,923

Accumulated other comprehensive income

Balance at the beginning ofcurrent period
Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during theperiodValuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets170,073(1)(2,398)5,208

172,881

50,4591,046,622(54)
170,019(54)(1)(2,398)5,208

172,827(875)
50,459(19,279)

Cash dividends paid
Net income attributable toparent company
shareholders
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock

69,497258

0(60,013)0

Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period

1,045,746(59,968)7(1,049)(8,960)(69,971)

2,335(67,635)(59,968)7(1,049)(8,960)(69,971)

2,335(77,172)

110,051

5(3,448)(3,751)

102,856

52,794

968,574-22-

The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,024

676,346(122,911)

812,923

Changes of items during theperiodCash dividends paid
Net income attributable toparent company
shareholders
Change of application ofequity method
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Purchases of treasurystock(17,977)(17,977)

25,08825,088

327

327

0

(0)

Disposal of treasury stock

0

(0)

(9)

(9)

0

0

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period

–

0

7,438

(9)

7,429

Balance at the end of current
period114,464

145,024

683,784(122,920)

820,352–

Accumulated other comprehensive income

Balance at the beginning ofcurrent period
Changes of items during theperiodValuationdifference on
available-forsale securities

Net deferredgains onhedgesForeigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets110,051

5(3,448)(3,751)

102,856

52,794

968,574(17,977)

Cash dividends paid
Net income attributable toparent company
shareholders

25,088Change of application ofequity method
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Purchases of treasury
stock

327

Disposal of treasury stock0

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period0(9)91,966

6(1,633)30,429120,768

1,841

122,609

91,966

6(1,633)30,429120,768

1,841

130,039

202,017

11(5,082)

26,678

223,634

54,636

1,098,613-23-

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

Year ended
March 31, 2020
Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Impairment loss
Decrease of doubtful receivables, net
Increase of net defined benefit asset
Increase of net defined benefit liability
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net (gain) loss on sale of investment securities
Net loss on devaluation of investment securities
Net (gain) loss on sale or disposal of fixed assets
Decrease in trade receivables(Increase) Decrease in inventories
Decrease in trade payables
Other
Sub-total
Payments for repair costs
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 purchase of stock in subsidiaries resulting
in change in scope of consolidation
Proceeds from purchase of stock in subsidiaries
resulting in change in scope of consolidation
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash provided by (used in) investing activities-24-

Year ended
March 31, 2021

102,719

46,40054,474
26,516(186)(7,441)
2,169(6,050)1,659(5,586)
1,466(50,086)
7,232(24,367)
22,195(1,286)(9,011)
10,235
124,652(14,076)(335)(16,302)93,93750,893
4,102(235)(3,380)363(6,742)994(4,341)
1,255
3,003
2,905
2,411
6,252
7,065
(11,530)(110)
99,306(8,116)(450)(29,058)
61,681

135,777(2,255)(39,932)(50,992)

46,104(1,028)
58,112

2,024
(944)
5,503

(1,154)(2,551)38

20(9,775)
9,196(6,281)
191,057(10,992)
8,260(4,357)(56,284)

(Million yen)

Year ended
March 31, 2020
Cash flows from financing activities
Net 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
Payments for purchases of treasury stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents resulting frommerger of non-consolidated subsidiaries
Cash and cash equivalents at end of year

-25-

Year ended
March 31, 2021

(3,424)2,700(2,521)
99,496(51,490)(60,060)(152)(1,570)(19,283)(509)(4,466)(41,280)(1,929)4,295(3,404)–(52,490)(9)(1)(1,447)(17,976)(551)(4,753)(78,268)

(118)

(416)

243,595
133,771(73,287)
377,367–143

377,367

304,223

(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: 119
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd., INTELLIGENT WAVE INC.
DNP Fine Chemicals Co., Ltd., DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 17
Major companies:
Nihon Unisys, Ltd., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd., DIC Graphics Corporation
Photronics DNP Mask Corporation
MK Smart Joint Stock Company
Photronics DNP Mask Corporation Xiamen
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
Newly included:
14 Sharingbox SA (previously an equity-method affiliate) and 13
other companies
Excluded:
3 DNP Multi Print Co., Ltd. and two other companies(Application of equity method)
Newly included:2
Excluded:4

Lifra, LLC. and one other company
BUNKYODO GROUP HOLDINGS CO., LTD. and three othercompanies

3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 35 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 26 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, mobilebook.jp, Inc. and one
other company have fiscal years that end on September 30, DNP Tamura Plastic Co., Ltd.’s fiscal
year ends on October 31, and DNP・SIG Combibloc Co., Ltd.’s fiscal year ends on December 31.
Consequently, financial statements based on provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates or provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

-26-4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securitiesThose with market
prices available

Those without 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 cost of sales is computed mainly by themoving-average method.)
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.
Mainly cost based on the specific identification method

Merchandise
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
mainly use the declining balance method.
(except for lease assets andHowever, depreciation of buildings (excluding building
right-of-use assets)
fixtures) acquired after April 1, 1998 and of building fixturesand structures acquired after April 1, 2016 are 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 andright-of-use assets)

Mainly the straight-line method
Software used internally is amortized mainly using thestraight-line method over the Company’s estimate of theuseful life of the assets (five years).

• Lease assets

Lease assets with transfer of ownership
These lease assets are depreciated using the samedepreciation method used for owned fixed 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.
These right-of-use assets are depreciated over the lease
period using the straight-line method with no residual value.

•Right-of-use assets-27-

(c) Basis for recording significant allowances
To cover possible losses on doubtful accounts, including• Allowance for doubtful
trade receivables and loans, the allowance for doubtful
accounts
accounts is based on historical default rates for generalaccounts and on estimates of the amounts that may not berecoverable based on examinations of the recoverability of
specific accounts including accounts at risk of default.
To cover payments of employee bonuses in the following• Reserve for bonuses
fiscal year, the reserve for bonus is based on the estimatedamount that is attributable to the current fiscal year.
The repair reserve is based on a rational estimate of the• Repair reserveamount of repair costs that will be required in the future to
repair defects for some products.
(d) Accounting treatment of retirement benefits• Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, a benefit formula is used to allocate expected
retirement benefit payments in the period until the end of the current fiscal year.
• Method of amortizing actuarial gains/losses and prior service costs
Prior service costs are amortized using the straight-line method over a certain number ofyears that is equal to or less than the average future service period of eligible employees at
the time the costs are incurred (generally six years).
Actuarial gains/losses are amortized starting in the next fiscal year after they are incurred
using the declining balance method over a certain number of years that is equal to or lessthan the average future service period of eligible employees in the fiscal year the actuarial
gains/losses are incurred (generally nine years).
(e) Accounting treatment of consumption taxes
National and local consumption taxes are excluded from transaction amounts.
(f) Amortization of goodwill
Goodwill is amortized using the straight-line method for an effective period not more than 20
years. In the current fiscal year, straight-line amortization over five years is generally used.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents comprise cash on hand, immediately withdrawable funds, andshort-term investments that can be easily converted to cash, have insignificant risk of changes
in value, and have maturities within three months of the purchase date.
[Consolidated balance sheets]

Discounts on notes receivables

Year ended
March 31, 2020¥534 million

Year ended
March 31, 2021
¥387 million

Year ended
March 31, 2020
¥33,603 million

Year ended
March 31, 2021
¥32,623 million[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses)-28-

2. Impairment losses
The DNP Group recorded impairment losses for the following asset groups in the current
consolidated fiscal year.
Location
Kashiwa City (Chiba), other

Application
Information system
related assets

Kuki City (Saitama),
Shiraoka City (Saitama), other

Publishing business
related assets

Other

Business assets

Category
Software, other
Buildings and structures,
machinery and equipment,
software, other
Buildings and structures,
machinery and equipment,
goodwill, otherIn calculating impairment losses, the DNP Group combines assets based mainly on the businessgroups that serve as profit/loss units. It also considers impairment losses for each individual item foridle assets.
As a result, the DNP Group lowered the carrying amounts of business asset groups withdiminished profitability to their recoverable amounts, and recorded this decrease as an impairment
loss (¥4,102 million) under extraordinary losses.
The impairment loss breaks down into buildings and structures at ¥168 million, machinery andequipment at ¥614 million, goodwill at ¥154 million, software at ¥2,609 million, and other at ¥555
million.
The DNP Group calculates the recoverable value of information system related assets andprinting business related assets based on usage value. The value of these assets is shown as zero,due to the lack of prospects for future cash flow from operating activities.
The DNP Group calculates the recoverable value of other business assets based on usage value
or net saleable value. The value of assets assessed based on usage value is shown as zero, due
mainly to the lack of prospects for future cash flow. The value of assets assessed based on net
saleable value is the planned sale value.
[Consolidated statements of changes in net assets]
The year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2020

Increase in
number ofshares during
the year
ended March
2020

Decrease in
number ofshares during
the year
ended March
2020

Number ofshares at theend of theyear ended
March 2020

Outstanding shares
Common stock
324,240,346––
324,240,346
Treasury stock
Common stock
22,420,745
20,938,721
122
43,359,344
Notes:
The
numberoftreasurysharesofcommonstock
increasedby
20,938,721
sharesdue to the1.
repurchase of 20,933,700 shares decided on by the Board of Directors, and by 5,021 shares dueto the repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 122 shares due to a decrease of 116
2.
shares resulting from the sale of odd-lot shares and by six shares due to a change in the DNPGroup’s ownership stake in an equity-method affiliate.

-29-

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 27, 2019
Board of Directors’
meeting on
November 12, 2019

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

9,658

32

March 31,2019

June 28,
2019

Common stock

9,620

32

September 30,
2019

December 10,
2019(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

Source ofdividends(Million yen)

General meeting ofshareholders on
June 26, 2020

Commonstock

Dividend
per share(Yen)

Retainedearnings

8,988

32

Dividend
record date

Effective
date

March 31,2020

June 29,2020

The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2021

Increase in
number ofshares during
the year
ended March
2021

Decrease in
number ofshares during
the year
ended March
2021

Number ofshares at theend of theyear ended
March 2021

Outstanding shares
Common stock
324,240,346––
324,240,346
Treasury stock
Common stock
43,359,344
4,444
118
43,363,670
Notes:The number of treasury shares of common stock increased by 4,444 shares due to the1.
repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 118 shares due to the sale of odd-lot
2.
shares.

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 26, 2020
Board of Directors’
meeting on
November 10, 2020

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,988

32

March 31,2020

June 29,
2020

Common stock

8,988

32

September 30,
2020

December 10,
2020(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 29, 2021

Common
stock

8,988

Source ofdividends
Retainedearnings-30-

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2021

June 30,
2021

[Segment information, etc.](Segment information)
1. Overview of the reporting segments(1) Method of determining 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.
The DNP Group bases its business divisions on the products and services provided anddevelops its business activities based on a comprehensive domestic and overseas strategy foreach business division. The four reporting segments are Information Communication, Lifestyleand Industrial Supplies, Electronics, and Beverages.
(2) Products and services in each reporting segment
Information Communication is involved in the production and sale of publications, commercial
printed materials, business forms, and photographic materials and in educational andpublications distribution. Lifestyle and Industrial Supplies is involved in the production and saleof packaging materials, interior and exterior decorative printed materials, high-performanceindustrial supplies, and other products. Electronics is involved in the production and sale ofprecision electronic components and other products. Beverages is involved in the production
and sale of carbonated beverages, mineral waters and other products.
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 figures are based on operating income. Inter-segment sales andtransfers are based on third-party transaction prices.

-31-

3. Information on sales, income/loss, assets, and other items by reporting segment
The year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
Reporting segment

Net sales
Outside customers
Inter-segment
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Investments inequity-method affiliates
Increase in property,
plant and equipment
and in intangible fixed
assets

Notes:

1.

2.

(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialstatements Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

769,749
3,329
773,079
30,416
796,797

390,271
1,086
391,357
11,144423,906

186,602–
186,60234,135
208,396

55,27021
55,292
2,047
49,9551,401,894
4,437
1,406,331
77,742
1,479,055–(4,437)(4,437)(21,468)
242,668

1,401,894–
1,401,894
56,274
1,721,724

23,547

16,022

9,654

2,788

52,0132,461

54,474Beverages

Total

446

1,213

–

–

1,659

–

1,659

16,187

2,545

5,205

1

23,9402,575

26,516

1,679

652

16,161–

18,493

41,471

59,96520,00821,265

11,802

2,666

55,742

1,419

57,162

Figures are adjusted as follows.
(1) Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments
and the elimination of inter-segment transactions.
(3) Impairment loss adjustments are related to companywide assets not allocated to reporting
segments.
(4) Investments in equity-method affiliates are adjusted for investments not allocated to reporting
segments.
(5) 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 is adjusted to reflect operating income as reported in the consolidated financial
statements.

-32-

The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Reporting segment

Net sales
Outside customers
Inter-segment
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Investments inequity-method affiliates
Increase in property,
plant and equipment
and in intangible fixed
assets

Notes:

1.

2.

(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialstatements Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

719,476
2,338
721,814
19,185
898,781

367,517489
368,006
13,965443,375

197,020–
197,020
36,690212,456

51,42517
51,443840
49,012

1,335,439
2,845
1,338,285
70,681
1,603,626–(2,845)(2,845)(21,151)
221,392

1,335,439–
1,335,439
49,5291,825,019

20,101

16,517

9,416

2,890

48,926

1,967

50,893

382

606

–

4

994

–

994

Beverages

Total

3,810

–

–

–

3,810

291

4,102

1,377

561

16,946–

18,88544,091

62,976

26,06730,024

11,987

1,931

70,011

1,638

71,649Figures are adjusted as follows.
(1) Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments
and the elimination of inter-segment transactions.
(3) Impairment loss adjustments are related to companywide assets not allocated to reporting
segments.
(4) Investments in equity-method affiliates are adjusted for investments not allocated to reporting
segments.
(5) 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 is adjusted to reflect operating income as reported in the consolidated financial
statements.

-33-

(Related information)
The year ended March 31, 2020 (April 1, 2019 – March 31, 2020)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,155,716
Notes:

1.
2.
3.

Asia

Other regions

169,658

Total

76,5191,401,894

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:
China, South Korea, Indonesia, Taiwan
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, 2021 (April 1, 2020 – March 31, 2021)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,089,608
Notes:

1.
2.
3.

Asia

Other regions

183,929

Total

61,901

1,335,439

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:
China, South Korea, Taiwan, Indonesia
Other:
United States, Germany, France, 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.

-34-

[Per share information]
Year ended
March 31, 2020
(April 1, 2019 –March 31, 2020)

Year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)

Net assets per share¥3,260.38¥3,716.85

Net income per share¥235.18¥89.32

Diluted net income per share¥235.08¥89.28Notes: 1. The basis for calculating net income per share and diluted net income per share is as follows.

(1) Net income per share
Net income attributable to parent company
shareholders
Amounts not attributable to commonshareholders
Net income attributable to parent company
common shareholders
Average number of common shares outstanding
during the fiscal year(2) Diluted net income per share
Adjustments to net income attributable to parent
company shareholders
Of which, impact of dilutive stock ofconsolidated subsidiaries and affiliates
Increase in common stockYear ended
March 31, 2020
(April 1, 2019 –March 31, 2020)

Year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)(Million yen)

69,49725,088(Million yen)––

(Million yen)

69,49725,088(Thousand shares)

295,506

280,879(Million yen)

(30)

(11)

(Million yen)

(30)

(11)

–

–

Year ended
March 31, 2020
(As of March 31,
2020)

Year ended
March 31, 2021
(As of March 31,
2021)

1,098,613
54,63654,636(Thousand shares)

2. The basis for calculating net assets per share is as follows.

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

Of which, non-controlling interests
Net assets at fiscal year-end pertaining to common
stock
Number of common shares outstanding(Million yen)

968,574
52,794
52,794(Million yen)

915,779

1,043,977(Thousand shares)

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

324,240
43,359324,240
43,363(Thousand shares)

280,881

280,876[Significant subsequent events]
Repurchase and retirement of own stock
DNP resolved at its Board of Directors meeting on May 13, 2021 to repurchase DNP sharespursuant to Article 156 of the Companies Act of Japan, which applies pursuant to Article 165,
Paragraph 3, of the Act, and to retire these shares pursuant to Article 178 of the Companies Act.
For details, see the May 13, 2021 “Announcement of Share Buyback” and “Announcement ofRetirement of Treasury Stock”.

-35-

6. Non-consolidated financial statements and key notes(1) Non-consolidated balance sheets(Million yen)

Year ended
March 31, 2020
(As of March 31, 2020)

Year ended
March 31, 2021
(As of March 31, 2021)

266,478
14,936
29,059224,819
2,494
10,313
1,017
38,166(858)
586,428

190,707
12,43426,852
220,541
2,577
8,612
1,117
43,837(249)
506,433

396,401(276,049)
120,351
29,398(24,771)4,626
537,760(495,203)
42,556
1,451(1,276)
174
50,639(42,401)
8,237
119,745
1,885(1,004)881
8,898
305,472

406,351(282,066)
124,285
31,072(25,027)
6,045
538,330(489,237)
49,092
1,519(1,328)
191
50,677(42,655)
8,022
119,530
2,003
(948)
1,055
10,859319,081

14,931
1,109
16,04015,365
1,067
16,432

236,229
141,928
1,603
62,15018,894(9,029)451,777
773,290
1,359,719

357,335
141,901
1,597
65,153
19,382(9,516)575,853
911,368
1,417,801

ASSETS
Current assets
Cash and time deposits
Notes receivable
Electronically recorded monetary claims
Trade receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
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 assets
Accumulated depreciation
Lease assets, 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
Prepaid pension costs
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-36-

(Million yen)

Year ended
March 31, 2020
(As of March 31, 2020)
LIABILITIESCurrent liabilities
Notes payable
Trade payable
Bonds redeemable within 1 year
Lease obligations
Accounts payable - otherAccrued expenses
Advances received
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Repair reserve
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
Repair reserve
Reserve for environmental measures
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for depreciation reduction of fixed
assetsOther reserves
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-37-

Year ended
March 31, 2021
(As of March 31, 2021)

11,275206,936
50,000329
40,84618,153
5,661
220,524
8,395
169
20,636944
5,194
589,067

11,986
194,317–341
47,47816,925
6,873
218,271
8,424
210
17,688647
971
524,136

100,000
672
1,482
5,425
10,02854,660324
37,69824
210,316
799,384

100,000
785
1,503
5,404
9,641
49,491
284
79,89940
247,051
771,188

114,464

114,464

144,8980
144,898

144,898–
144,898

23,30023,3002018232,780
59,928316,028(122,881)
452,509

232,780
54,597
310,695(122,890)
447,167

107,825

199,445

107,825
560,334
1,359,719

199,445646,612
1,417,801

(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
Equipment rental
Other
Total non-operating income
Non-operating expenses
Interest expense
Equipment rental expense
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 sale of investment securities
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income-38-

Year ended
March 31, 2020
984,888855,012
129,876
136,384(6,507)

Year ended
March 31, 2021
925,259
794,772
130,486
131,642(1,155)155
20,352
26,462
2,928
49,899103
24,07428,0272,608
54,813

1,073
20,9006,058
28,032
15,359855
22,312
2,780
25,94827,70924,94451,444
110
76,499

332
1,853
–
2,185

5,191
22,744
1,360
7,072
14,963
51,332
40,526
6,940
3,587
10,52729,998

2,519
3,371
4,853
2,812
863
14,42015,475
350
2,480
2,830
12,644

(3) Non-consolidated statements of changes in net assets
The year ended March 31, 2020 (April 1, 2019 – March 31, 2020)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

21

282,780(792)

305,3091–

Cash dividends paid

50,000(19,279)–(19,279)

Net income

29,99829,998

Balance at the beginning ofcurrent period

114,464

OtherlcapitalsurplusCapitalreserve

144,898–

Total capitalsurplus

Legal reserve

144,898

23,300Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(1)

Reversal of other reserve(50,000)

Purchases of treasury stock
Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period

0

–

–

0

0

–

(1)

(50,000)

60,72010,719114,464

144,8980

144,898

23,30020

232,780

59,928316,028

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period

0Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(62,868)

501,803

168,069

168,069

669,873

Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets–

Reversal of other reserve
Cash dividends paid
Net income

–

–

–

(19,279)
29,998(19,279)
29,998(60,013)Purchases of treasury stock(60,013)(60,013)

Disposal of treasury stock
Net changes in items otherthan stockholders’ equity

000(60,244)(60,244)(60,244)

Total changes of items during
the period(60,013)(49,293)(60,244)(60,244)(109,538)

Balance at the end of current
period(122,881)

452,509

107,825

107,825

560,334-39-

The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

20

282,780

59,928316,028

1–

Cash dividends paid

(17,977)(17,977)

Net income

12,644

12,644(0)(0)

Balance at the beginning ofcurrent period

114,464

OtherlcapitalsurplusCapitalreserve

144,8980

Total capitalsurplus

Legal reserve

144,898

23,300Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(1)

Purchases of treasury stock
Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period

(0)

–

–

(0)

(0)

–

(1)

–

(5,331)(5,332)

114,464

144,898–

144,898

23,30018

232,780

54,597

310,695

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period
Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(0)Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(122,881)

452,509

107,825

107,825

560,334––

Cash dividends paid

(17,977)(17,977)

Net income

12,644

12,644Purchases of treasury stock

(9)

(9)

(9)

Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period00091,62091,62091,620(9)(5,341)

91,62091,62086,278(122,890)

447,167

199,445

199,445646,612(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]None-40-