Consolidated Financial Results for the Fiscal Year Ended March 31, 2015 [J-GAAP]May 14, 2015

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
General meeting of shareholders:June 26, 2015
Dividend payment date:June 29, 2015
Securities report issuing date:June 26, 2015
Preparation of earnings presentation material: None
Holding of earnings announcement:
None*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2015
(April 1, 2014 – March 31, 2015)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2015

1,462,118

0.9

48,173(3.8)

53,7590.9

26,923

5.0

Year ended March 31, 2014

1,448,550

0.1

50,09840.0

53,28532.2

25,641

33.4

Note: Comprehensive income: Year ended March 31, 2015: ¥165,683 million (197.4%)
Year ended March 31, 2014: ¥55,717 million (32.3%)
Diluted Net
Incomeper Share

Net Income
per Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2015

41.82

41.44

2.7

3.2

3.3

Year ended March 31, 2014

39.82

39.65

2.8

3.4

3.5

Reference: Equity in earnings of affiliates: Year ended March 31, 2015: ¥2,171 million
Year ended March 31, 2014: ¥742 million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2015

1,809,462

1,124,093

59.6

1,675.63

As of March 31, 2014

1,574,753

976,38659.2

1,447.96

Reference: Stockholders’ equity: As of March 31, 2015: ¥1,078,828 million

As of March 31, 2014: ¥932,329 million(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at Endof the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2015

85,730(50,540)(23,864)

212,762

Year ended March 31, 2014

120,108(58,370)(80,038)

199,813

2. Dividends
Dividends per Share
First
Quarter-end

SecondThird
Quarter-end Quarter-end

Year-end

AnnualTotal Dividends(Annual)Dividend
Payout Ratio(Consolidated)

Dividends to
Net Assets
Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Year ended March 31, 2014

–

16.00

–

16.00

32.00

20,62380.4

2.3

Year ended March 31, 2015

–

16.00

–

16.00

32.00

20,62076.5

2.0Year ending March 31,
2016 (Forecast)

–

16.00

–

16.00

32.00

68.7

3. Consolidated earnings forecasts for the year ending March 31, 2016
(April 1, 2015 – March 31, 2016)(Percentages show change from corresponding year-ago period.)
Net Income
Operating
Attributable to
Net Income
Ordinary Income
IncomeOwners ofper Share
ParentNet Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,510,000

3.3

52,0007.9

55,0002.3

30,000

11.4

46.60

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): Yes
Newly included: –Excluded: 1 DNP Photomask Technology Taiwan Co., Ltd.
Note: For further details, see the section titled, “5. Consolidated financial statements, (5) Notes regarding
consolidated financial statements [Basis of presenting consolidated financial statements],” on page 24.

(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No
Note: For further details, see the section titled, “5. Consolidated financial statements (5) Notes regarding
consolidated financial statements [Changes in accounting policies],” on page 27.
(3) Number of common shares issued and outstanding
1) Number of common shares outstanding
As of March 31,
at end of each period (including
2015
treasury shares)
2) Number of treasury shares at end of
As of March 31,
2015
each period
3) Average number of shares outstanding
Year ended
March 31, 2015
during the period

700,480,693 As of March 31,
shares2014

700,480,693
shares56,647,614 As of March 31,
shares2014

56,586,830
shares643,867,888
Year ended
shares March 31, 2014

643,945,619
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2015
(April 1, 2014 – March 31, 2015)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating Income
Ordinary Income
Net Income(Loss)Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2015

999,023

8.7

(469)

–

24,424(7.8)

21,863

74.2

Year ended March 31, 2014

919,016

(0.8)

3,447

–

26,483

33.2

12,547(16.0)Net Income
per Share

Diluted Net Income
per Share
Yen

Yen

Year ended March 31, 2015

33.93

–

Year ended March 31, 2014

19.47

–

(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2015

1,429,806

768,42453.7

1,192.50

As of March 31, 2014

1,228,480

666,16254.2

1,033.71

Reference: Stockholders’ equity: As of March 31, 2015: ¥768,424 million As of March 31, 2014: ¥666,162 million* Presentation of audit status
These consolidated financial results are exempt from auditing procedures based on the Financial
Instruments and Exchange Act. The financial statements are being audited based on the Financial
Instruments and Exchange Act at the time of the disclosure of these consolidated financial results.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was prepared. Actual results
may differ significantly due to a variety of factors. See the “1. Analysis of operating results and financial
position (1) Analysis of operating results” on pages 2–4 for information about earnings forecasts.

Contents
1. Analysis of operating results and financial position ............................................................................... 2(1) Analysis of operating results .......................................................................................................... 2(2) Analysis of financial position .......................................................................................................... 4(3) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2015
and year ending March 31, 2016 .................................................................................................... 5(4) Business risks ................................................................................................................................ 5
2. Information on DNP ............................................................................................................................... 8
3. Management policies........................................................................................................................... 12(1) Core policies ................................................................................................................................. 12(2) Medium- and long-term management strategy and key issues .................................................... 12
4. Basic approach in the choosing of accounting standards ................................................................... 15
5. Consolidated financial statements ....................................................................................................... 16(1) Consolidated balance sheets ....................................................................................................... 16(2) Consolidated statements of income and comprehensive income ................................................ 18(3) Consolidated statements of changes in net assets ...................................................................... 20(4) Consolidated statements of cash flows ........................................................................................ 22(5) Notes regarding consolidated financial statements ...................................................................... 24[Notes on premise of a going concern].......................................................................................... 24[Basis of presenting consolidated financial statements] ................................................................ 24[Changes in accounting policies] ................................................................................................... 27[Consolidated balance sheets] ...................................................................................................... 27[Consolidated statements of income] ............................................................................................ 27[Consolidated statements of changes in net assets] ..................................................................... 28[Segment information, etc.] ........................................................................................................... 30[Per share information] .................................................................................................................. 33[Significant subsequent events]..................................................................................................... 34
6. Non-consolidated financial statements ................................................................................................ 35(1) Non-consolidated balance sheets ................................................................................................ 35(2) Non-consolidated statements of income ...................................................................................... 37(3) Non-consolidated statements of changes in net assets ............................................................... 38(4) Notes regarding non-consolidated financial statements ............................................................... 40[Notes on premise of a going concern] ......................................................................................... 40
7. Changes in directors, statutory auditors and officers (as of June 26, 2015) ....................................... 40

1

1. Analysis of operating results and financial position(1) Analysis of operating results1) Operating results for the fiscal year ended March 31, 2015
Japan’s economy maintained a gradual recovery trend during the fiscal year ended March 31, 2015,
aided by government economic policies and monetary easing by the Bank of Japan. However, theeconomy has still not reached a full-fledged recovery, due partly to sluggish consumer spending
after the consumption tax hike and higher prices for imported products due to the continued weakyen.
The printing industry continued to face a tough business environment, due partly to a decline inorder prices on account of weak demand and stiffer competition, and higher raw material prices.
In this environment, the DNP Group (DNP), based on its P&I Solutions business vision,
aggressively pursued domestic and overseas business from consumer and social perspectives
under the catchphrase “Today’s Innovation is Tomorrow’s Basic.” It also worked to improve earnings
by implementing structural reforms, including business structure reorganization from the standpointof overall optimization.
In the Information Communication segment, amid weak demand for paper printed material, DNP
reorganized and consolidated its nationwide organizational structure in July 2014 with the aim ofenhancing competitiveness. It formed a business and capital alliance with MK Smart Joint Stock
Company, Vietnam’s leading manufacturer of smart cards, in March 2014, and worked to bolster thecompetitiveness of the smart card business in Southeast Asia.
In the Lifestyle and Industrial Supplies segment, DNP reorganized and consolidated its nationwide
sales divisions in the Packaging business to facilitate quick and precise planning proposals andoptimal sales activities. In the Industrial Supplies business, DNP made Foto Fantasy Inc., which
operates an automated photograph printing systems business in the US, a subsidiary in December
2014. It also accelerated the global expansion of its photo printing dye-sublimation thermal transfer
printing media business (color ink ribbons and receiver paper).
In the Electronics segment, DNP transferred the Optical Films business from the Lifestyle andIndustrial Supplies segment in April 2014 in an effort to promote new product development andenhance competitiveness. It also sought to improve earnings by reworking production lines,
consolidating production facilities, and rebuilding its organizational structure.
As a result of these activities, consolidated net sales grew 0.9% year on year to ¥1,462.1 billion,
consolidated operating income fell 3.8% to ¥48.1 billion, consolidated ordinary income grew 0.9% to¥53.7 billion, and consolidated net income grew 5.0% to ¥26.9 billion.
Business segment results are presented below.
DNP changed its reportable business segments effective from the current fiscal year, andcomparison and analysis of this fiscal year’s performance are based on the new business segments.
[PRINTING]
Information Communication
In the Books and Magazines business, DNP aggressively pursued planning proposals and sales
activities, but the publication market continued to slump and sales of books and magazines bothdecreased year on year.
In the Commercial Printing business, pamphlet sales were on par with the previous year, but
overall sales decreased on weak sales of flyers, catalogs, and other products.
In the Business Forms business, smart card sales increased for financial institutions and2electronic money, and settlement services expanded favorably, including international brand prepaid
card systems. However, Information Processing Services (IPS; ranging from data entry to printing
and shipment of personalized mail and other items) were sluggish, and overall sales fell below
year-ago levels.
In the Education and Publications Distribution business, DNP worked to expand business in the“honto” hybrid bookstore network that combines physical bookstores, online bookstores, and e-booksales services, including by releasing “honto pocket” as an e-reader pre-loaded with e-book content
and launching “honto with” as a smartphone application that allows users to search bookstore
inventories. Moreover, the library support, publishing, and other businesses also performed well, andoverall sales increased from the previous year.
As a result of the above, overall segment sales fell 0.2% year on year to ¥698.9 billion andoperating income fell 36.7% to ¥7.5 billion.
Lifestyle and Industrial Supplies
In the Packaging business, paper packaging fell below year-ago levels, but overall sales increased
from the previous year on firm sales for plastic film packaging and paper cups, and sales growth for
PET bottle aseptic filling systems.
In the Lifestyle Materials business, DNP focused on sales of eco-friendly products and otherproducts that use its proprietary Electron Beam coating technology and worked to increase domestic
market share and aggressively expand to overseas markets. However, sales decreased year on
year, affected by a decline in domestic housing starts caused by the consumption tax hike.
In the Industrial Supplies business, sales of photovoltaic module components increased from lastyear. Dye-sublimation thermal transfer printing media for photo printing had strong sales in the North
American and European markets, and as the Malaysian plant launched full operations in Southeast
Asian markets, sales in this business rose sharply from last year.
As a result of the above, overall segment sales grew 2.5% year on year to ¥479.4 billion andoperating income grew 10.5% to ¥23.9 billion.
Electronics
In the LCD Color Filter business, TV filters were firm, but sales fell below year-ago levels on declines
for PC and mobile device filters.
Semiconductor photomask sales decreased from last year, despite tapping into firm overseas
demand, as a result of sluggish sales in Japan.
In the Optical Films business, overall sales increased year on year, buoyed by growth for LCD
polarizing plate films.
As a result of the above, overall segment sales fell 0.7% year on year to ¥230.3 billion andoperating income fell 2.7% to ¥24.4 billion.
[BEVERAGES]
Beverages
The soft drink industry continued to face a tough market environment, as manufacturers vied formarket share through price competition. However, DNP worked to expand market share by releasing
new products and strengthening sales of core brand products. It also focused on acquiring newcustomers by developing in-store sales points and expanding home delivery services.
As a result of the above, sales rose sharply for I LOHAS, a brand of mineral water that uses alightweight PET bottle, and overall segment sales grew 8.8% year on year to ¥59.6 billion while
operating income grew 65.2% to ¥1.0 billion.

32) Forecast for the fiscal year ending March 31, 2016
Concerning the future outlook, DNP expects various measures taken by the government and Bank ofJapan to contribute to raising corporate earnings, improving the employment and income
environment, and sustaining a gradual economic recovery. However, it is also concerned about the
impact of overseas economic slowdowns. In the printing industry, DNP expects conditions to remaindifficult amid a rise in raw material prices and decline in order prices due to weak domestic demandand stiffer competition.
During the fiscal year ending March 31, 2016, DNP intends to work to expand its business under
the catchphrase “Today’s Innovation is Tomorrow’s Basic,” based on its P&I Solutions businessvision. This entails the development of new products and services that solve the problems that facecompanies, consumers, and society, and making these products and services a natural part of theireveryday lives. DNP will leverage its strengths in the aggressive pursuit of its business activities tocreate this new value. It will also work to raise productivity further to establish a more robust
business foundation.
For the fiscal year ending March 31, 2016, DNP forecasts consolidated net sales of ¥1,510.0
billion, consolidated operating income of ¥52.0 billion, consolidated ordinary income of ¥55.0 billion,
and consolidated net income attributable to parent company shareholders of ¥30.0 billion.
(2) Analysis of financial position
1) Assets, liabilities, and net assets
Total assets at the end of the current fiscal year increased by ¥234.7 billion from the end of theprevious fiscal year to ¥1,809.4 billion, due mainly to an increase in investment securities.
Total liabilities increased by ¥87.0 billion from the end of the previous fiscal year to ¥685.3 billion,
due mainly to an increase in deferred tax liabilities.
Net assets increased by ¥147.7 billion from the end of the previous fiscal year to ¥1,124.0 billion,
due mainly to an increase in valuation difference on available-for-sale securities.
2) Cash flows
Consolidated cash flow provided by operating activities totaled ¥85.7 billion (¥120.1 billion in theprevious fiscal year), due mainly to ¥51.0 billion in income before income taxes and minority
interests and ¥67.0 billion in depreciation.
Cash flow used in investing activities totaled ¥50.5 billion (¥58.3 billion in the previous fiscal year),due mainly to ¥52.6 billion in payments for purchases of property, plant and equipment. Cash flowused in financing activities totaled ¥23.8 billion (¥80.0 billion in the previous fiscal year), due mainly
to ¥20.9 billion in dividends paid.
As a result, cash and cash equivalents at the end of the fiscal year increased by ¥12.9 billion fromthe end of the previous fiscal year to ¥212.7 billion.

4

The trends in DNP’s cash flow indicators are shown below.
Year ended
March 2011

Year ended
March 2012

Year ended
March 2013

Year ended
March 2014

Year ended
March 2015

Equity ratio (%)

55.1

54.2

56.6

59.2

59.6

Market value-based
equity ratio (%)

39.6

33.9

36.1

40.4

41.6

Debt-to-cash flow ratio(year)

1.6

2.1

2.3

1.5

2.2

Interest coverage ratio(times)

52.6

33.2

28.8

40.6

35.1

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(3) Basic policies regarding the allocation of profits and dividends for the year ended
March 31, 2015 and year ending March 31, 2016
An important policy of Dai Nippon Printing Co., Ltd. (the Company) is to pass on profits toshareholders.
Profits are allocated based on a policy of paying stable dividends to shareholders and withconsideration for financial results and the dividend payout ratio. For future business expansion, theCompany strives to retain profits and strengthen its financial constitution and management base.
Retained earnings are used to invest in research and development related to new products andtechnologies, to invest in equipment needed for developing new businesses, and to implement
strategic alliances, including mergers and acquisitions. At the same time, the Company considers
flexible capital policies while also taking into consideration market trends as well as its need forcapital. The Company believes that these efforts will contribute to higher profits that can then bepassed on to shareholders in the future.
Based on this policy, the Company intends to pay a year-end dividend of ¥16 per share, which
together with the interim dividend of ¥16 per share brings the full-year dividend to ¥32 per share, thesame as in the previous fiscal year. As a result, the consolidated dividend payout ratio will be 76.5%.
The forecast dividend for the fiscal year ending March 31, 2016 is ¥32 per share, the total of a ¥16interim dividend and a ¥16 year-end dividend.
(4) Business risks
The performance and the results of DNP could be significantly affected by a variety of factors andcircumstances that might arise in the future. Because DNP is aware of these risk factors, its policy is
to strive to minimize their potential effects.
The following are the major factors that the DNP management views as risks.

51) The Japanese and overseas economies and consumption trends
DNP engages in a wide range of businesses with an extremely large number of corporate customers,
and steadily conducts its business so as not to overly depend on specific customers. DNP does
most of its business in the Japanese market, but if consumer spending and other components ofdomestic demand slump, owing to domestic economic weakness in sympathy with global economic
trends, declines in order volume and unit prices may affect its corporate performance.
Additionally, DNP could be directly or indirectly affected by market trends in various industries inJapan or overseas. In particular, electronics-related industries are susceptible to global declines inunit prices caused by an expansion of production in emerging countries and changes in demand,and DNP’s performance could be affected by major changes in market trends.
2) Overseas business activities
DNP conducts overseas business activities in the Americas, Europe, Southeast Asia, and elsewhere,
and these activities face risks including social and political turmoil caused not only by economic
factors such as unexpected changes in law and regulations, stricter environmental laws andregulations, fragility of industrial infrastructure, and difficulty of hiring and securing personnel, butalso by terrorism, war, and other factors. DNP’s performance could be affected if its overseas
business activities are obstructed as a result of these risks materializing.
3) Development of new products and services
DNP uses its printing and information technologies to develop and provide to a broad range ofindustries products and services that solve problems facing companies, consumers, and society.
The pace of technological innovation in these areas has been accelerating, and customers’ needs
have been rapidly diversifying. We believe that, in the future, competition in the area of productdevelopment will become more intense than ever before in Japan and overseas, and it is possiblethat DNP’s performance could fluctuate significantly due to unforeseeable changes in market trends
or a shortening of product life cycles.
4) Strategic business and capital alliances and corporate acquisitions
DNP engages in strategic business and capital alliances and corporate acquisitions, and its
performance could be affected if it is unable to achieve initially expected results and synergies as aresult of deterioration in the business environment affecting the companies and businesses involvedin these alliances and acquisitions.
5) Fluctuations in raw material procurement
We work hard to secure stable supplies and maintain optimal price by procuring raw materials suchas printing paper and film from multiple suppliers in Japan and overseas. However, there is somepotential for temporary imbalances between supply and demand due to sharp fluctuations inpetroleum prices, sudden surges in demand from emerging markets, the impact of major disasters,
the depletion of natural resources, and climate change. DNP will respond during such times bynegotiating with client companies and business partners, but its performance could be affected if raw
materials procurement becomes extremely difficult or if purchasing prices rise sharply.
6) Currency fluctuations
Particularly in fields such as Lifestyle and Industrial Supplies, and Electronics, we are expanding ourdealings in products and services with overseas customers. Because we expect the effects ofcurrency rates to gradually become more important, we use such means as foreign exchange
forward contracts to hedge the risks of currency fluctuations. Nevertheless, it is possible that radical
swings in currency values could have a more serious effect on DNP’s performance.

67) Environmental protection and stricter environmental regulations
DNP is affected by legal regulations in Japan and other countries related to energy conservation,
climate change prevention (e.g., reduction of greenhouse gas emissions), reduction of the use ofharmful substances, air pollution prevention, water quality protection, waste treatment, and productrecycling. These regulations could possibly be strengthened or changed in the future. In addition,
DNP’s business could be substantially affected if faced with a situation in which soil is contaminatedby harmful substances and it is held responsible for assessment and cleanup.
8) Information security and personal information protection
Computer networks and information systems have become essential tools for conducting business,and there are now greater risks of software and hardware defects, computer virus infections, andpersonal data leaks. DNP regards the protection of data and personal information as a top priority. It
is doing all it can to protect and maintain systems and data by strengthening its organization andtraining employees, but if problems arise in these areas, then its business activity could be affected.
9) Respond to changes in legal regulations, etc.
We conduct our business based on strict compliance with the law and social ethics. Wherever we
operate, in Japan or overseas, we are subject to a wide variety of legal regulations and restrictions,
including laws related to product liability, monopoly prohibitions, the protection of personal
information, patents, taxes, imports and exports, etc. We can imagine that in the future such
regulations could become even more restrictive. On the other hand, market and industry trends maychange substantially as a result of deregulation. If that should occur, it is possible that DNP’sbusiness performance could be affected by limitations on its business activities, the burden of
responding to regulatory changes, or increased costs.
10) Disasters
DNP takes steps to protect production equipment and other major facilities from fires andearthquakes, seeks to disperse production facilities, and works to minimize production shutdowns
and product supply disruptions caused by disasters. We also use various types of insurance totransfer risk. Nevertheless, DNP’s performance could be substantially affected in the event of major
earthquakes, natural disasters such as heavy rainfall or flooding caused by climate change, disease
outbreaks, or other unexpected events that cause production shutdowns or significantly damage or
impair social infrastructure.
11) Lawsuits and fines
DNP works to establish corporate ethics throughout the group and earn the trust of society by eachand every employee complying with laws and regulations in conducting business activities,
maintaining higher ethical standards than required by society, and contributing to maintaining andadvancing orderly and freely competitive markets with a consistently fair attitude. Nevertheless,
DNP’s performance could be affected in the event of being subject to lawsuits and resulting fines inJapan or overseas.

7

2. Information on DNP
DNP Group includes the Company, 144 subsidiaries, and 19 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 DNP are broadly outlined below. The four business segments
cited below are the same as the reporting segment categories.
[PRINTING]
Information Communication
Production/sale of textbooks, books, weekly/monthly/quarterly magazines, promotional materials,
securities certificates, business forms, cards, settlement-related services, and business equipment
and systems; and planning/design/construction/management of stores and advertising media
Major companies
Production

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

Production and sales

Tien Wah Press (Pte.) Ltd.
*MK Smart Joint Stock Company

Sales and services

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

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

DNP Technopack Co., Ltd., Sagami Yoki Co., Ltd.
DNP Imagingcomm Co., Ltd., DNP Ellio Co., Ltd.
DNP Advanced Materials Co., Ltd., DNP Lifestyle Materials Co., Ltd.
DNP Hoso Co., Ltd.

Production and sales

Aseptic Systems Co., Ltd., DNP Fine Chemicals Utsunomiya Co., Ltd.
DNP Imagingcomm Asia Sdn. Bhd., DNP Imagingcomm Europe B.V.
DNP Imagingcomm America Corporation, Foto Fantasy, Inc.
PT DNP Indonesia, DNP Vietnam Co., Ltd.

Sales and services

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

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

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

Production and sales

DNP Color Techno Kameyama Co., Ltd., DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd.
DNP Denmark A/S, DNP Photomask Europe S.p.A.
*Photronics DNP Mask Corporation

Sales

DNP Taiwan Co., Ltd.

Companies with multiple types of businesses
Production and sales

DNP Fine Chemicals Co., Ltd., D.N.K. 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.
DNP Human Services Co., Ltd., DNP Facility Services 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

9

[BEVERAGES]
Beverages
Centered on Hokkaido Coca-Cola Bottling Co., Ltd.; manufacture/sale of soft drinks and juices
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies

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

Customers
Information Communication

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

Electronics

Beverages(Sales)DNP Taiwan Co., Ltd.
(Production and sales)
DNP Denmark A/S
DNP Photomask Europe S.p.A.
Photronics DNP Mask Corporation*(Sales and service provision)
DNP Photo Imaging Europe SAS

Dai Nippon Printing Co., Ltd.

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

(Production)
DNP Technopack Co., Ltd.
Sagami Yoki Co., Ltd.
DNP Imagingcomm Co. Ltd.
DNP Ellio Co., Ltd.
DNP Advanced Materials Co. Ltd.
DNP Lifestyle Materials Co., Ltd.
DNP Hoso Co., Ltd.

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

DNP Shikoku Co., Ltd.

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

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

(Sales and service provision, etc.)
DNP ID System Co., Ltd.
DNP Lifestyle Materials Marketing
Co., Ltd.
DNP Field Eyes Co., Ltd.
DNP Photo Imaging Japan Co., Ltd.
LIFESCAPE MARKETINGCORPORATION

D.N.K. 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.

DNP Information Systems Co., Ltd.

DNP Chubu Co., Ltd.
DNP America, LLC

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

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

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

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

11

Beverages
business3. Management policies(1) Core policies
DNP has been striving to contribute to the sustainable growth of society by providing newvalue-added products and services through its business activities, based on a management concept
of contributing to the emergently evolving society of the 21st century. With a business vision of P&I
Solutions (P&I stands for “Printing Technology” and “Information Technology”) to realize its
management concept, DNP will continue to solve the problems of corporate clients, consumers, andsociety by making the most of its strengths in printing and information technologies.
Additionally, to promote fair and appropriate corporate activity and fulfill its corporate social
responsibilities (CSR), DNP strictly complies with laws and social ethics based on the DNP Group
Code of Conduct and ensures proper business activities through an internal control system. DNP
strives to conduct business in good faith to earn the deep trust of its various stakeholders, including
shareholders, customers, consumers, and employees.
(2) Medium- and long-term management strategy and key issues
DNP is working to expand its business over the medium to long term through the aggressive pursuitof business activities under the catchphrase “Today’s Innovation is Tomorrow’s Basic,” based on its
P&I Solutions business vision. To create the new value implied by its catchphrase, DNP hasorganized and analyzed social problems and identified the four growth domains of “knowledge andcommunication,” “food and healthcare,” “environment and energy,” and “lifestyle and mobility.”In the “knowledge and communication” domain, DNP endeavors to support people’s lives andpromote culture through the secure and reliable transmission of information in an information society.
In addition to the production of information media and content, the company seeks to facilitate
two-way communication by providing information platforms enabling the secure and reliable	 exchange of information that people want, at the time they want, and in the format they want.
In the “food and healthcare” domain, DNP seeks to help maintain healthy, high-quality, and secure
lifestyles in a super-aging society. In addition to life sciences and foods, it intends to expand to
agriculture and other areas of business.
In the “environment and energy” domain, DNP will work to achieve a society of low environmental
impact that combines economic growth and environmental preservation. It seeks to develop
environmentally friendly products in terms of resource saving, energy saving, and recycling, and toprovide energy management and other solutions.
In the “lifestyle and mobility” domain, DNP endeavors to create more comfortable living spaces by
providing advanced materials with a variety of functions for homes and automobiles.
DNP will pursue aggressive business activities to deliver products, services, and platforms thatleverage its strengths, mainly in these domains. It will also work to raise productivity further toestablish a more robust business foundation.
Initiatives in the different businesses and segments[PRINTING]
Information Communication
The Information Communication segment is broadly involved with the optimal expression of
information and expansion into a diverse range of media. It provides new solutions from thestandpoints of consumers and companies.
The DNP Kashiwa Data Center offers a high level of information security, and we opened the12facility in December 2013 to strengthen the foundation of our information business. We deployed thecloud computing technology of our capital partner Nihon Unisys, Ltd., connected the data centers ofboth companies, and built the largest scale of service infrastructure in Japan. We are using thisinfrastructure to deliver a variety of solutions, including the “honto” hybrid bookstore that offers both
paper books and e-books, integrated payment services, e-flyer services, and business process
outsourcing (BPO).	
  We seek to expand information communication business that draws on theperspective of consumers
In the Commercial Printing and Business Forms businesses, we consolidated and reorganized ournationwide sales, planning, and production organization in July 2014. We are pursuing overall
optimization based on the new structure, and seek to expand earnings and raise capital efficiency
through greater production efficiency and other means. We also strive to increase competitivenessand develop new business models.
In the Imaging Communication business (includes photo printing), we expect demand to expandfor value-added services that are better tailored to consumer needs, including photo printing
systems and photo book production. We are moving aggressively to offer new solutions thatleverage IT. To facilitate solutions development, we transferred this business from the Lifestyle andIndustrial Supplies segment in April 2015. We are working to expand business based on a global
production and sales network for dye-sublimation and resin-type thermal transfer printing media.
Lifestyle and Industrial Supplies
The Lifestyle and Industrial Supplies segment provides products and services in Japan andoverseas that respond precisely to the diverse needs of companies and consumers, including
through efforts to protect the global environment and support universal design.
In the Packaging business, we are working to expand market share for high-performance products,
including the Innovative Barrier (IB) film series of transparent films with excellent barrier properties tokeep out oxygen and moisture, and the Biomatech series of biomass plastic packaging materials as
environmentally friendly products that use biomass as raw material. Amid ongoing economic growthin ASEAN, we have been manufacturing and selling packaging in Indonesia since 1972, and have
top market shares for daily goods, foods, and other product segments. Leveraging this experience,
we opened a new plant in Vietnam in May 2013. We are using these facilities to deliver
high-value-added products and services to global companies, including Japanese companies
expanding overseas.
In the Lifestyle Materials business, we seek to address a full range of needs related to comfortableliving space. These include high-valued-added products such as wall and floor coverings that use
DNP’s proprietary Electron Beam coating technology; the proposal of living space designs throughspace planning, living environment assessment, and Kansei (emotional) engineering; and thedevelopment of simple construction methods. Additionally, the DNP Sumai Mirai Lab, established in
October 2014, leads our efforts to create new products and services to realize the “home of the
future” through the pursuit of comfort and richness in a variety of living spaces, including homes,
offices, and transportation, based on cooperation between industry, government, and academia.
Electronics
In the Electronics segment, we integrated the business unit responsible for display products andsemiconductor photomasks and the business unit responsible for optical films including LCD surface
films in April 2014. By combining the technology and expertise of these two business units, we seek
to respond to the rapidly changing needs of companies and consumers by developing new products(including advanced products) and rigorously cutting costs.
Under this structure, in the LCD Color Filter business, we will draw on DNP’s strength in13

processing and materials technologies to develop new products for high-definition smartphones and4K and 8K TVs, for which demand is expected to expand.
In the Photomasks business, to support the miniaturization and cost-saving needs ofsemiconductor makers, we are focusing on preparing a development and supply structure forcutting-edge products with a line width of 15nm and commercializing next-generation
microfabrication technologies such as nanoimprinting. We revamped our sales and production
structure in the semiconductor production photomask business in Taiwan in April 2014. Goingforward, we seek to increase competitiveness in the rapidly changing semiconductor market,
especially in Southeast Asia.
For optical films, we are focusing on developing new products, mainly for flat-panel displays, thatleverage converting technologies for processing materials in a clean work environment.
[BEVERAGES]
Beverages
In the beverage industry, we expect a tough business environment amid continued market sharecompetition. Under these conditions, we are working to execute the three strategies of increasing
market share, overwhelming the competition, and cutting groupwide costs based on the vision
outlined in our new medium-term business plan. Leveraging the global brand strength of our
Coca-Cola business, we intend to beat our competition based on our local capabilities as a true
Hokkaido company, contribute to local Hokkaido communities by consistently delivering new value
and services, and establish a business foundation capable of sustained growth.
Additionally, with the goal of being a company that is trusted and recognized by local communities,
we are working to bolster corporate governance by building and operating internal control systems
and to maintain and improve quality, safety, and the environment based on Coca-Cola’s propriety
integrated management system called KORE.
Expansion of contact with consumers
DNP is working to deepen communication with consumers from their perspective to gain a better
understanding of their various problems and then develop products and services that address these
problems.
As part of these efforts, we have conducted campaigns using DNPenguin as an original
advertising character since 2012. We also opened the “Communication Plaza dot DNP” in
Shinjuku-ku Tokyo in January 2013, and have held planning exhibitions, events, and workshops for
consumers. This facility has been used by a large number of people, and has attracted around
100,000 visitors during the two years since opening. We opened “The Lab. CAFE Lab.” in April 2013as a communication cafe in which consumers can try reading e-books. It is located in Knowledge
Capital, a multi-use facility inside Grand Front Osaka where companies, universities, and research
institutes pursue cross-sector collaboration.
	 Strengthened organization
DNP aims to increase its overall group strength by further reinforcing cooperation among businessdivisions and to offer a wide range of solutions by deepening taiwa (exchange of viewpoints andideas that leads to identification and resolution of problems) with companies and consumers toactively develop new products and services that contribute to accurate problem-solving.
To expand DNP’s business, we have formed strategic alliances with other companies andconducted mergers and acquisitions in such businesses as information communication, publications

14

distribution, digital photos, and electronics products. In the future, we will work to cooperate withother companies possessing various strengths both domestically and overseas. We will also move
forward in redeveloping the Ichigaya district of Tokyo as a foothold for pursuing our business visionof providing P&I Solutions under the catchphrase “Today’s Innovation is Tomorrow’s Basic.” Theproject planning and sales offices of various business units are now scattered across the Tokyo
Metropolitan Area, and we intend to concentrate these together with the group’s headquarter
functions in the Ichigaya district in an effort to leverage their various strengths and bolster
cooperation.
Reinforcing DNP’s business continuity plan (BCP)
Aiming for a “disaster-proof DNP Group,” we established the “DNP Group Basic Code for Disaster
Response” and we implement disaster prevention and preparedness measures on a daily basis inline with our disaster prevention plan. Since the Tohoku–Pacific Ocean Earthquake, we have worked
to minimize the potential impact that a disaster or abnormal weather conditions could have on ourbusiness by reviewing our business continuity plan (BCP) and by enhancing distribution andalternative production systems and reconfiguring our production bases in Japan and overseas tostrengthen our overall product supply chain. In addition, in response to power shortages and pricehikes, we will continue to carefully conserve energy and introduce in-house power generationequipment.
Contributing to the realization of a sustainable society
Global climate change is a growing concern, including rising temperatures and water shortages.	
 DNP’s various environmental initiatives to build a sustainable society that coexists with natureinclude a proprietary environmental management system, global warming prevention, zero waste
emissions, water use reduction, biodiversity protection, thorough management of volatile organic
solvents and chemical substances, development of environmentally friendly products, and green
purchasing.
DNP calculates greenhouse gas emissions (Scope3) in Japan and overseas not only for our
manufacturing operations, but also indirect emissions throughout our entire supply chain, and is
working toward a global reduction of greenhouse gas emissions. We have also established targets
for the fiscal year ending in March 2031 in order to step up our efforts to prevent global warming. To
protect biodiversity, we have prepared procurement guidelines and are cooperating with suppliers,
given that our business activities depend heavily and greatly impact the ecosystem and that paper isclosely related to climate change and forest resources. We are also using company sites to create
green spaces connecting the surrounding environment and living creatures.
Thanks to these initiatives, DNP was chosen as a sector leader for the prevention of forest
destruction in an assessment by CDP, which attracts interest from global institutional investors.
4. Basic approach in the choosing of accounting standards
DNP Group uses Japanese GAAP in preparing consolidated financial statements. It plans to
consider IFRS going forward and respond appropriately based on domestic and overseas
circumstances.

155. Consolidated financial statements(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2014
(As of March 31, 2014)

Year ended March 31, 2015
(As of March 31, 2015)

203,212356,981
91,681
28,50919,464
8,677
27,319(2,791)
733,054

210,979
366,068
97,231
28,27822,3958,540
30,450(822)
763,122536,978(341,652)
195,326
787,368(668,465)
118,903
153,159
27,577
138,791(105,220)
33,571
528,538

537,358(352,718)
184,639774,271(675,358)
98,913
154,093
41,457
138,307(104,621)
33,686
512,790

4,477
25,0262,246
31,751

3,276
25,281
2,024
30,583217,059
9,078
19,234
11,08330,801(5,848)281,409841,699
1,574,753

397,116
8,958
65,9306,600
32,875(8,514)502,966
1,046,340
1,809,462

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

16

(Million yen)
Year ended March 31, 2014
(As of March 31, 2014)

Year ended March 31, 2015
(As of March 31, 2015)

249,604
48,961
12,4808,942
17,31081,122
418,422

258,887
53,370
10,241
8,074
17,42887,401
435,404

101,800
17,5052,231
29,55028,857
179,945598,367

103,750
20,58565,86032,34827,419249,964
685,368

114,464
144,898
727,070(94,322)892,110

114,464
144,898
737,241(94,386)
902,217

34,597

147,914

3
144
5,473

(0)
7,247
21,44940,218

176,61016
44,040976,386
1,574,753

16
45,248
1,124,093
1,809,462

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

17

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

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

18

Year ended
March 31, 2014
1,448,550
1,176,077
272,472
222,374
50,098Year ended
March 31, 2015
1,462,118
1,182,954
279,163
230,989
48,173

3,738
742
1,068
4,958
10,507

4,138
2,171
1,754
4,472
12,536

2,914
1,074
3,331
7,320
53,285

2,453
1,348
3,148
6,950
53,759

1,009
348
960
2,318

245
4,442
157
4,845

4,870
–
2,125
6,995

2,186
4,342
1,014
7,543

48,60851,061

14,588
7,224
21,813
26,794
1,153
25,641

14,096
8,474
22,571
28,4901,566
26,923

Consolidated statements of comprehensive income(Million yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) 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：Shareholders of parent company
Minority interests

19

Year ended
March 31, 2014
26,794

Year ended
March 31, 2015
28,49015,124

113,1631
13,098
–

(30)
6,991
15,199697

1,868

28,92355,717137,192
165,683

54,456
1,260

163,315
2,367

(3) Consolidated statements of changes in net assets
The year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Million yen)
Stockholders’ equity

Balance at the beginningof current period
Changes of items during
the period
Cash dividends paid
Net income
Change of scope ofequity method
Purchases of treasury
stock
Disposal of treasurystock
Net changes in items
other thanstockholders’ equity
Total changes of items
during the period
Balance at the end ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

144,898

722,057(94,226)

887,193(20,624)(20,624)

25,64125,641

(3)

(3)

(0)

(97)

(97)

1

0
–

–

–

5,012

(95)

4,916

114,464

144,898

727,070(94,322)892,110

Accumulated other comprehensive income

Balance at the beginningof current period
Changes of items during
the period
Cash dividends paid
Net income
Change of scope ofequity method
Purchases of treasury
stock
Disposal of treasurystock
Net changes in items
other thanstockholders’ equity
Total changes of items
during the period
Balance at the end ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeStockacquisitionrights

18,908

8(12,986)

–

5,930

16

Minority
interests

43,915

Total net
assets937,055(20,624)
25,641(3)(97)
015,689(5)

13,131

5,473

34,288–125

34,413

15,689(5)

13,131

5,473

34,288–125

39,33034,597

3

144

5,473

40,21816

44,040976,386

20

The year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(Million yen)
Stockholders’ equity

Balance at the beginningof current period
Cumulative impact ofaccounting changes
Balance at the beginningof current period
reflecting accountingchanges
Changes of items during
the period
Cash dividends paid
Net income
Change of scope of
consolidation
Change of scope ofequity method
Purchases of treasury
stock
Disposal of treasury
stock
Other
Net changes in items
other thanstockholders’ equity
Total changes of items
during the period
Balance at the end ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

144,898

727,070(94,322)4,000
114,464

144,898

731,070

892,1104,000(94,322)896,111(20,621)(20,621)

26,92326,923

(140)

(140)

9

9

(1)
0

(66)

(66)

2

1

0

0
–

–

0

6,170

(64)

6,106

114,464

144,898

737,241(94,386)

902,217

Accumulated other comprehensive income

Balance at the beginningof current period
Cumulative impact ofaccounting changes
Balance at the beginningof current period
reflecting accountingchanges
Changes of items during
the period
Cash dividends paid
Net income
Change of scope of
consolidation
Change of scope ofequity method
Purchases of treasury
stock
Disposal of treasury
stock
Other
Net changes in items
other thanstockholders’ equity
Total changes of items
during the period
Balance at the end ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeStockacquisitionrights34,597

3

144

5,473

40,21816

34,597

3

144

5,473

40,218

16

Minority
interests

Total net
assets44,040976,386

(505)

3,494

43,534

979,881(20,621)
26,923
(140)
9
(66)
1
0
113,316

(3)

7,102

15,976

136,392–

1,713

138,105

113,316

(3)

7,102

15,976

136,392–

1,713

144,212

147,914

(0)

7,247

21,449176,61016

45,248

1,124,093

21

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

Year ended
March 31, 2014
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Increase (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 on sales of investment securities
Net loss on devaluation of investment securities
Net losses on sale or disposal of fixed assets(Increase) Decrease in trade receivables(Increase) Decrease in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease 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 intangible fixed assets
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
Interest and dividends received
Other
Net cash used in investing activities

22

Year ended
March 31, 2015

48,60873,458140(515)(7,478)
718
(742)
3,648
(3,738)
2,914
(384)
488
3,898
15,084
3,042(6,147)
1,702
134,698(249)(14,341)
120,108

51,061
67,03379
700(14,798)150(2,171)
1,989(4,138)2,453(4,455)67
1,980(12,507)(5,711)
4,766
14,871
101,371(153)(15,487)
85,730(1,484)

2,161(54,875)(52,627)

7,167(7,921)
1,231(7,765)

3,961(2,329)7,845(8,988)

–

(675)

796

–

5,126
(646)
(58,370)

4,989(4,876)(50,540)

(Million yen)

Year ended
March 31, 2014
Cash flows from financing activities
Net increase 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 minority 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
Increase in cash and cash equivalents resulting fromchange of scope of consolidation
Decrease in cash and cash equivalents resulting from themerger of consolidated subsidiaries
Increase in cash and cash equivalents resulting from themerger of non-consolidated subsidiaries
Cash and cash equivalents at end of year

23

Year ended
March 31, 2015

168
9,227
(7,453)
850(50,760)(97)(1)(2,955)(20,625)(440)(7,950)(80,038)

4,028
11,152(10,232)
2,946(1,850)(66)(0)(2,442)(20,612)(364)(6,422)(23,864)

6,051

2,789

(12,248)
212,062

14,115
199,813–64–(1,274)–43

199,813

212,762(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: 112
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd.
INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD.
SHUFUNOTOMO Co., Ltd., 2Dfacto, Inc.
DNP Color Techno Kameyama Co., Ltd.
DNP Technopack Co., Ltd., DNP Fine Chemicals Co., Ltd.
DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 12
Major companies:
Nihon Unisys, Ltd.
BOOKOFF CORPORATION LIMITED, All About, Inc.
Kyoiku Shuppan Co., Ltd., DIC Graphics Corporation
Photronics DNP Mask Corporation
MK Smart Joint Stock Company
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
Newly included:
3 Foto Fantasy, Inc. and two other companies
Excluded:
10 DNP Photomask Technology Taiwan Co., Ltd. and nine othercompanies(Application of equity method)
Newly included:2
Excluded:2

Photronics DNP Mask Corporation
MK Smart Joint Stock Company
Compagnie de Découpe de l'Ouest-CDO SAS and one othercompany

DNP specified subsidiary DNP Photomask Technology Taiwan Co., Ltd. (DPTT) was absorbed in amerger by Photronics, Inc. subsidiary Photronics Semiconductor Mask Corp. (name changed to
Photronics DNP Mask Corporation; PDMC) during the current fiscal year.
As a result of this merger, DNP has removed DPTT from consolidation due to its elimination andhas added PDMC as an equity method affiliate.

243) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 25 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 24 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, BUNKYODO GROUPHOLDINGS CO., LTD. and seven other companies have fiscal years that end on August 31, andmobilebook.jp, Inc.’s fiscal year ends on September 30. Consequently, financial statements basedon provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates and provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.
4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securitiesThose with market
prices available

Fair market value based on market prices as of the balance
sheet date
(The related valuation differences are directly included in net
assets and cost of sales is computed mainly by themoving-average method.)Those without market
prices available

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

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

Merchandise

Mainly cost based on the specific identification method

Finished products, work inprogress

Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

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

25

• Intangible fixed assets(except for lease assets)

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

• Lease assets

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

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

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

(d) Accounting treatment of retirement benefits
Net defined benefit liability is recorded to prepare for employee retirement benefits at an
amount derived by subtracting pension plan assets from retirement benefit obligations basedon the amount expected at the end of the current fiscal year. 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.
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 thetime 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 less than
the average future service period of eligible employees at the time the actuarial gains/losses
are incurred (generally nine years).
Unrecognized actuarial gains/losses and unrecognized prior service costs are adjusted fortax effects and recorded in remeasurements of defined benefit plans in accumulated othercomprehensive income under net assets.
(e) Accounting treatment of consumption taxes
National and local consumption taxes are excluded from transaction amounts.
(f) Amortization of goodwill and negative goodwill
Goodwill and negative goodwill incurred prior to and on March 31, 2010 are amortized using thestraight-line method for a period of not more than 20 years. In the current fiscal year,
straight-line amortization over five years is generally used.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows are short-term
investments with an original maturity of three months or less, are subject to insignificant risk ofchanges in value, and can be easily converted into cash and drawable funds as needed.

26

[Changes in accounting policies]
DNP adopted the provisions of the main clauses in Paragraph 35 of the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and in Paragraph 67 of the Guidanceon Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, March 26, 2015) starting in
the current fiscal year.
Accordingly, DNP has revised the method of calculating retirement benefit obligations and service
costs; changed the method of attributing expected retirement benefits to periods from a straightline-basis to a benefit formula basis; and changed the method of determining a discount rate from amethod in which bond duration as the basis for determining the discount rate is determined based ona number of years similar to the average remaining service period of employees to a method thatmainly uses multiple discount rates established for each period of expected retirement benefit
payments.
With the adoption of the Accounting Standard for Retirement Benefits, in accordance with thetransitional treatment stipulated in Paragraph 37, DNP reflected in retained earnings the amount of
the impact of the change in the method of calculating retirement benefit obligations and service costsat the start of the current fiscal year.
As a result, net defined benefit liability at the start of the current fiscal year increased by ¥2,392
million, net defined benefit asset increased by ¥9,190 million, and retained earnings increased by¥4,000 million.
Additionally, operating income increased by ¥1,566 million, and both ordinary income and income
before income taxes and minority interests increased by ¥1,628 million in the current fiscal year.
The impact on per share information is listed in the relevant section.
[Consolidated balance sheets]

1. Guarantee obligation
2. Discounts on notes receivableYear ended
March 31, 2014
¥33 million¥664 million

Year ended
March 31, 2015
¥22 million¥625 million

Year ended
March 31, 2014
¥30,820 million

Year ended
March 31, 2015
¥31,748 million[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses, and cost of sales)27

[Consolidated statements of changes in net assets]
The year ended March 31, 2014 (April 1, 2013 – March 31, 2014)
1. Types and number of shares outstanding and treasury stock(Shares)

Outstanding shares

Stock type

Number ofshares at the
beginning of
the year
ended March
2014

Increase in
number ofshares during
the year
ended March2014

Common stock

700,480,693

Decrease in
number ofshares during
the year
ended March2014–

Number ofshares at theend of theyear ended
March 2014–

700,480,693

Treasury stock
Common stock
56,490,329
97,392891
Notes:
1. The increase of 97,392 treasury shares is due to the repurchase of odd-lot shares.
2. The decrease of 891 treasury shares is due to the sale of odd-lot shares.

56,586,830

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

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2014
(Million yen)

Stock
type

Beginning of
the year
ended March
2014

Increase

Decrease

End of theyear ended
March 2014

–

–

–

–

–

16

–

–

–

–

16

Dividend pershare (Yen)Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 27, 2013
Board of Directors’
meeting on
November 7, 2013

Stock type

Total dividends(Million yen)

Common stock

10,31216

March 31,2013

June 28,
2013

Common stock

10,31116

September 30,
2013

December 10,
2013(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 27, 2014

Commonstock

10,311

Source ofdividends
Retainedearnings

28

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2014

June 30,
2014

The year ended March 31, 2015 (April 1, 2014 – March 31, 2015)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March2015

Outstanding shares

Common stock

700,480,693––

700,480,693

Treasury stock

Common stock

56,586,830

62,594

1,810

56,647,614

Notes:

1.
2.

Increase in
number ofshares during
the year
ended March2015

Decrease in
number ofshares during
the year
ended March
2015

Number ofshares at theend of theyear ended
March 2015

The increase of 62,594 treasury shares is due to the repurchase of odd-lot shares.
The decrease of 1,810 treasury shares comprises 1,668 shares from the sale of odd-lot shares,
132 shares from the return of shares sold by equity-method affiliates, and 10 shares fromchanges in equity ownership ratios in equity-method affiliates.

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

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2015
(Million yen)

Stock
type

Beginning of
the year
ended March
2015

Increase

Decrease

End of theyear ended
March 2015

–

–

–

–

–

16

–

–

–

–

16

Dividend pershare (Yen)Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 27, 2014
Board of Directors’
meeting on
November 6, 2014

Stock type

Total dividends(Million yen)

Common stock

10,311

16

March 31,2014

June 30,
2014

Common stock

10,31016

September 30,
2014

December 10,
2014(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 26, 2015

Commonstock

10,310Source ofdividends
Retainedearnings

29

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2015

June 29,
2015

[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.
DNP bases its business divisions on the products and services provided and develops its
business activities based on a comprehensive domestic and overseas strategy for eachbusiness division. The four reporting segments are Information Communication, Lifestyle andIndustrial Supplies, Electronics, and Beverages.
(2) Products and services in each reporting segment
Information Communication is involved in the production and sale of publications, commercial
printed matter, and business forms and in educational and publications distribution. Lifestyleand Industrial Supplies is involved in the production and sale of packaging materials, interior
and exterior construction materials, photographic materials, and industrial supplies.
Electronics is involved in the production and sale of precision electronic components and otherproducts. Beverages is involved in the production and sale of carbonated and non-carbonatedbeverages.
(3) Changes in reporting business segments, etc.
DNP changed its reportable business segments effective from the current fiscal year.
DNP shifted the Optical Films business from the Lifestyle and Industrial Supplies segment to
the Electronics segment as a result of integrating the business unit responsible for display
products and semiconductor photomasks and the business unit responsible for optical films
including LCD surface films in April 2014.
Segment information for the previous fiscal year has been prepared based on the newreportable business segments. This information is presented under “The year ended March 31,
2014 (April 1, 2013 – March 31, 2014)” in the section titled, “3. Information on sales,
income/loss, assets, and other items by reporting segment.”
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.
As noted in the section on changes in accounting policies, DNP changed the method of
calculating retirement benefit obligations and service costs effective from the current fiscal
year, and has accordingly made a similar change in the method of calculating retirement
benefit obligations and service costs for business segments.
As a result of this change, compared with the previous method, segment profits for thecurrent fiscal year increased by ¥741 million for Information Communication, by ¥375 million
for Lifestyle and Industrial Supplies, by ¥215 million for Electronics, and by ¥141 million for
Beverages.

30

3. Information on sales, income/loss, assets, and other items by reporting segment
The year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialNote 2statements

Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Outside customers
Inter-segment

694,947
5,355

466,805867

231,991054,804
3

1,448,5506,226–(6,226)

1,448,550–
1,448,550

Beverages

Total

Net sales

Total

700,303467,673

231,992

54,8081,454,776(6,226)

Segment income

11,90021,72325,117651

59,394(9,295)50,098Segment assets

629,818

527,063

300,11345,4701,502,465

72,287

1,574,753

21,95622,44623,7103,909

72,023

1,435

73,458

2,665

1,101

100

0

3,868

–

3,868

134

–

–

6

140

–

140

23,681

25,777

9,512

3,559

62,530934

63,464

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

1.

2.

Figures are adjusted as follows.
(1) Segment income 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.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

The year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialNote 2statements

Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Outside customers
Inter-segment

693,6495,303

478,540912

230,2978

59,6319

1,462,118
6,233–(6,233)

1,462,118–

Total

698,952

479,452

230,305

59,6401,468,352(6,233)

1,462,118

Beverages

Total

Net sales

Segment income

7,534

23,99624,427

1,076

57,034(8,861)

48,173

Segment assets

793,144554,707

310,759

46,3591,704,970

104,491

1,809,462

22,59820,94818,361

3,840

65,7491,284

67,033

959

1,038

17

0

2,015

–

2,015

61

–

–

17

79

–

79

17,75018,48014,348

3,553

54,132891

55,024

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

1.

2.

Figures are adjusted as follows.
(1) Segment income 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.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

31

(Related information)
The year ended March 31, 2014 (April 1, 2013 – March 31, 2014)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,232,092
Notes:

1.
2.
3.

Asia

Other regions

152,500

Total

63,956

1,448,550

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
Taiwan, South Korea, China, Indonesia
Other:
United States, France, Germany, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2015 (April 1, 2014 – March 31, 2015)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,231,913
Notes:

1.
2.
3.

Asia

Other regions

160,680

Total

69,524

1,462,118

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

32

[Per share information]
Year ended March
31, 2014(April 1, 2013 –March 31, 2014)

Year ended March
31, 2015(April 1, 2014 –March 31, 2015)

Net assets per share¥1,447.96¥1,675.63

Net income per share¥39.82¥41.82

Diluted net income per share¥39.65¥41.44

Year ended
March 31, 2014

Year ended
March 31, 2015

(As of March 31,
2014)(As of March 31,
2015)

Note: Basis of calculations
1. Net assets per share(Million yen)

976,386
44,05616
44,040Net assets at fiscal year-end pertaining to common
stock(Million yen)932,329

1,078,828

Number of common shares outstanding(Thousand shares)

Number of common treasury shares(Thousand shares)

700,480
56,586700,480
56,647

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

643,893643,833

Year ended
March 31, 2014
(April 1, 2013 –March 31, 2014)

Year ended
March 31, 2015
(April 1, 2014 –March 31, 2015)

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

Of which, stock acquisition rights(Million yen)

Of which, minority interests

1,124,093
45,26416
45,2482. Net income per share and diluted net income per share(1) Net income per share
Net income(Million yen)

25,641

26,923

Amounts not attributable to commonshareholders(Million yen)––

Net income pertaining to common stock(Million yen)

25,641

26,923

Average number of common shares outstanding
during the fiscal year

(Thousand shares)

643,945643,867(2) Diluted net income per share
Net income adjustment(Million yen)

(110)

(240)

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

(110)

(240)

Increase in common stock(Thousand shares)––

3. As noted in “Changes in accounting policies,” DNP has adopted the Accounting Standard for
Retirement Benefits, etc, and applied the transitional treatment stipulated in Paragraph 37 of the
Accounting Standard for Retirement Benefits.
As a result, for the current fiscal year, net assets per share increased by ¥8.64, net income pershare increased by ¥2.44, and diluted net income per share increased by ¥2.42.

33

[Significant subsequent events]
None[Disclosure omission]
Disclosure of notes on such items as tax effect accounting, marketable securities, and retirement
benefits is omitted because such disclosure in the release of Financial Results is not considered to
be important.

34

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

Year ended
March 31, 2014
(As of March 31, 2014)

Year ended
March 31, 2015
(As of March 31, 2015)

110,844
33,050243,102
3,344
11,042
1,990
4,123
29,032(1,688)434,842

121,001
43,790263,459
4,401
9,339
1,514
3,972
27,816(1,031)
474,263

402,951(258,561)
144,389
31,867(24,998)
6,869
617,999(542,954)
75,044
1,267(1,123)
144
50,268(42,324)
7,944
131,026
2,293(1,220)1,073
22,374
388,866

408,262(270,025)
138,237
32,026(25,661)
6,365
577,832(518,456)
59,375
1,301(1,177)
124
49,224(41,492)
7,732
131,049
1,858(1,057)
801
38,694382,379

19,581
3,555
23,137

20,651
2,628
23,280180,126
154,4542,213
12,753
6,625
36,931(11,470)
381,634
793,638
1,228,480

341,749
149,978
2,922
13,144–56,265(14,177)
549,883
955,543
1,429,806

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

35

(Million yen)

Year ended
March 31, 2014
(As of March 31, 2014)

Year ended
March 31, 2015
(As of March 31, 2015)

14,110173,614368
41,353
15,347
189,772
7,366
178
100
1,555
2,902
446,670

14,016
213,667
268
39,966
16,028198,237
7,556
148
106
644
2,349
492,988

100,000
758
1,103
6,153
7,563
68
–
115,647
562,317

100,000
574
1,124
5,994
7,688
72
52,938168,393661,382

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,300

26

0

34

29

382,780
61,584
467,725(94,265)
632,822382,780
51,105457,215(94,329)622,248

33,340146,176(0)33,339666,162
1,228,480(0)146,175
768,424
1,429,806

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

36

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

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

37

Year ended
March 31, 2014
919,016
811,894
107,121103,674
3,447

Year ended
March 31, 2015
999,023882,293
116,729
117,198(469)

289
16,24540,04656,580222
19,13536,851
56,2091,939
31,60433,544
26,483

1,575
29,73931,31524,424

350
262
33
646

34
4,147
2,249
6,431

3,864
314
5,227
184
9,590
17,539
160
4,832
4,992
12,547

1,661
16
10
53
1,741
29,115
330
6,921
7,251
21,863

(3) Non-consolidated statements of changes in net assets
The year ended March 31, 2014 (April 1, 2013 – March 31, 2014)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Balance at the beginning ofcurrent period
Changes of items during
the period
Reversal of reserve for
special depreciation
Reversal of reserve fordepreciation reduction of
fixed assets
Cash dividends paid

114,464Retained earnings
Other retained earnings

Capitalreserve

Total capitalsurplusLegalreserve

144,898

144,898

23,300Reserve for
specialdepreciation

Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

956

38

382,780

68,728475,803

929

–

4

–

(20,624)(20,624)

12,547

12,547

(0)

(0)

(929)
(4)

Net income
Purchases of treasury
stock
Disposal of treasury stock
Net changes in items
other than stockholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

–

–

–

–

(929)

(4)

–

(7,143)(8,077)

114,464

144,898

144,898

23,30026

34382,780

61,584

467,725

Stockholders’ equity

Balance at the beginning ofcurrent period
Changes of items during
the period
Reversal of reserve for
special depreciation
Reversal of reserve fordepreciation reduction of
fixed assets
Cash dividends paid

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecuritiesNet
deferred
gains(losses)onhedgesTotalvaluationandtranslation
adjustments

Total
net
assets(94,169)

640,996

18,473

1

18,474659,471

–

–

–

–

(20,624)(20,624)

12,547

12,547

(97)

(97)

(97)

1

0

0

Net income
Purchases of treasury
stock
Disposal of treasury stock
Net changes in items
other than stockholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Valuation and translation adjustments–

14,866(1)

14,865

14,865(95)(8,173)

14,866(1)

14,865

6,691(94,265)

632,822

33,340(0)33,339666,162

38

The year ended March 31, 2015 (April 1, 2014 – March 31, 2015)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Balance at the beginning ofcurrent period
Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during
the period
Reversal of reserve for
special depreciation
Reversal of reserve fordepreciation reduction of
fixed assets
Cash dividends paid

114,464

114,464Retained earnings
Other retained earnings

Capitalreserve

Total capitalsurplusLegalreserve

144,898

144,898

23,300144,898

144,898

23,300Reserve for
specialdepreciation

Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

26

34

382,780

61,584

467,725

3,676

3,676

65,261

471,402

26

–

5

–

(20,621)(20,621)

21,863

21,86326

34382,780(26)(5)

Net income
Purchases of treasury
stock
Disposal of treasury stock
Decrease from corporate
divestiture
Net changes in items
other than stockholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

–

–

–

(26)

(5)

–

(14,155)(14,187)

114,464

144,898

144,898

23,300029

382,780

51,105457,215

Disposal of treasury stock
Decrease from corporate
divestiture
Net changes in items
other than stockholders’equityTotal changes of items
during the period
Balance at the end ofcurrent period

Valuation and translation adjustments

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecuritiesNet
deferred
gains(losses)onhedgesTotalvaluationandtranslation
adjustments

Total
net
assets(94,265)

632,822

33,340(0)33,339666,162

3,676(94,265)

636,499

3,676
33,340(0)33,339669,839

–

–

–

–

(20,621)(20,621)

21,863

21,863

(66)

(66)

(66)

2

1

1

(15,427)(15,427)

Net income
Purchases of treasury
stock

(1)
(15,427)–

Stockholders’ equity

Balance at the beginning ofcurrent period
Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during
the period
Reversal of reserve for
special depreciation
Reversal of reserve fordepreciation reduction of
fixed assets
Cash dividends paid

(1)
(15,427)–

112,836(0)

112,835

112,835(64)(14,251)

112,836(0)

112,835

98,584(94,329)622,248

146,176(0)

146,175

768,424

39

(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]
None
7. Changes in directors, statutory auditors and officers (as of June 26, 2015)
1) Director to be promoted
Senior Managing Director
Managing Director

Tokuji Kanda(currently Managing Director)
Satoru Inoue(currently Director)

2) New auditor candidates (at the Ordinary General Meeting of Shareholders to be held on June
26)
Standing Statutory Auditor Kazunari Tanaka(currently Expert Adviser, General Manager of Internal Auditing
Division)Standing Statutory Auditor Naoki Hoshino(currently General Manager of Finance & Accounting Division)3) Auditors to be retired (at the end of the Ordinary General Meeting of Shareholders to be heldon June 26)
Standing Statutory Auditor Kenji Noguchi(to be assigned as Adviser)Standing Statutory Auditor Minoru Yoneda(to be assigned as Adviser)
4) New corporate officer candidates
Hirofumi Hashimoto
Corporate Officer(currently General Manager of Strategic Business Planning
Department)
Corporate Officer

Kazuhiko Sugita(currently General Manager of Planning and Administration
Department of Ichigaya Publication Printing Operations andhonto Business Operations)

Corporate Officer

Masafumi Kuroyanagi(currently Deputy General Manager of Finance & Accounting
Division)40