2MEDIUM-TERM MANAGEMENT PLAN:
BUSINESS STRATEGY / FINANCIAL STRATEGY
Create value primarily in growth areas

Reflecting on the Three-Year Plan (FY2020-FY2022)

Anticipating Change to Create
New Value in Challenging Times

Information
Communication

The Medium-term Management Plan spanning from fiscal 2020 to fiscal 2022 coincided with a period
greatly impacted by the COVID-19 pandemic. Amid rapidly changing circumstances, we were compelled torespond promptly and effectively, and we focused on high-profitability and market-growth potential
businesses, striving to expand our sales and profits.
In particular, during fiscal 2021, we achieved a 9.1% return on equity (ROE) thanks to improvements inthe operating income margin. However, in 2022, geopolitical risks, such as the Ukraine conflict, emerged,
leading to disruptions in the supply chain and causing raw material and energy prices to climb. As a result,while the ROE for the fiscal year ended March 2023 exceeded forecasts at 7.9%, operating income remained
at 61.2 billion yen, down 8.3% year on year.

(¥ billions)

FY2019results

FY2022
earnings
forecasts

FY2022
results

Segment
sales

773.0

710.0

720.2

Segment
operatingincome

30.4

29.0

26.7

Segment
sales

Lifestyle andIndustrial Supplies

391.3

408.0

Overview of growth-driving and stable Businesses

400.2

Segment
operatingincome

11.1

12.0

7.3

Segment
sales

186.6

212.0

203.5

Electronics

Management targets(¥ billions)

1,401.8

1,380.0

1,344.1

1,335.4

5.0%

3.7%

4.9%
4.5%

Earnings
forecast

Operating income

66.7
49.5

62.0

46.9

Smart cards used by financial institutions, “ My Number ”
government issued ID cards, BPO, etc. increased

Battery pouches

In addition to battery pouches for automotive use being affectedby the reduction in automotive production until around the
middle of the fiscal year, device demand also decreased for IT

Industrial
high-performancematerials

Demand for photovoltaic module components increased

Mobility interior andexterior materials

Although reduced automotive production had an impact
until the middle of the fiscal year, there was a recovery inthe second half

Optical films

A global slump in consumption and inventory adjustment
throughout the entire supply chain had an impact

Metal masks

The increase in the rate of use of OLED displays insmartphones, etc. contributed

Semiconductors

Although the market was seen to slow down from the
middle of the fiscal year, demand for product development
by client companies was steady

DNP has continued to undertake all kinds of structural reforms to further expand our corporate value.
For example, we have decided to expand domestic and overseas production lines for battery pouches,
domestic production lines for barrier films and eco-friendly packaging materials, and production lines forlarge-size metal masks, which are scheduled to start operation in the first half of fiscal 2024 and ultra-wide
surface materials for optical films, which are scheduled to start operation in the first half of fiscal 2025. Our goal
is to further expand business. On the other hand, we proceeded as planned with the downsizing of our paper
media production bases in Japan and overseas, the integration of bases in the Kansai region of our packaging
business, and the closure and sale of our Himeji plant for color filters. These moves were in response topersistently challenging businesses.
We have also implemented a variety of measures to expand our value, particularly in our focus businesses,
including mergers and acquisitions (M&A), capital and business alliances and the launch of operating companies.

61.2

Increase value using all available restructuring approaches

Operating income ratio

ROE

47.0

Secure information* The arrows indicate comparisons with targets

67.0

56.2

34.1

Strong sales of photographic materials and services in
Europe and Asia, in addition to the mainstay U.S. market

1,373.2

4.0%

Sales

Segment
operatingincomeImagingcommunication

Reorganization of operating bases andbusiness downsizing

FY2022FY2019results

FY2020results

FY2021
results

Targets

Results

7.3%

2.6 %

9.1%

Earnings forecast: 6.0 %7.9 %Target: Continuously achieve 5.0 % or above

Downsizing paper media
production bases

Information
Communication(Each fiscal year begins on April 1 and ends on March 31 of the following year)• Closure and sale of overseas site (Singapore)• Consolidation of domestic manufacturing sites(closure of Akabane area in Tokyo, etc.)• Consolidation of functions of preprocessing

divisions (pre-press)

Expansion measures

Expanding data distribution-related
business• Establishment of NTT EDX

18

Reviewing low value-added products
and restructuring business locations

Lifestyle andIndustrial Supplies• Integration of sites in the packaging-related

business (Kansai area)(Closure of Uzumasa Plant in Kyoto,
consolidation into Kyotanabe Plant)• Conversion of Sharing Box into a Group company• Acquisition of Color Vision International

Strengthening of
BPO service business• Establishment of DNP CoArise

In fiscal 2022, performance exceeded expectations in the imaging communication business, which benefited
from an upward trend in the overseas photo printing market; metal masks for manufacturing organic
light-emitting diode displays (OLEDs), which saw increased adoption in smartphones and other devices; andthe semiconductors business, driven by robust demand from customers for product development.
Secure information products such as smart cards and Business Process Outsourcing (BPO), andindustrial high-performance materials such as photovoltaic module components were mostly in line withinitial forecasts.
On the other hand, battery pouches for lithium batteries, which were affected by the global slump in
automobile production, mobility interior and exterior materials, and optical film-related businesses, impacted
by extraordinary demand for IT equipment shown during the COVID-19 pandemic, fell short of initial
forecasts.
The impact of raw material and energy price hikes was also significant, and we were not able tocompensate for the full amount by passing on prices. As for operating income by segment, Information
Communication and Lifestyle and Industrial Supplies fell short of forecasts, while Electronics was basically inline with expectations.

Expanding the imaging
communication business

Entry into XR communication business• Promotion of external collaboration and investment

Expanding production lines for barrier films, eco-friendly packaging materials, etc.
• Installation of barrier film production line at Tobata Plant (Fukuoka Prefecture)

Expanding production lines for lithium-ion battery pouches• Installation of production line at Tsuruse Plant (Saitama Prefecture)• Installation of post-process line in Europe (Denmark Plant), with operation scheduled to start in FY2023• Consider planning the strengthening of production capacity inside and outside Japan

including Europe and the US

Downsizing color filter business• Closure and sale of Himeji Plant

Electronics(Hyogo Prefecture)

Expand optical film production lines

Investing in electronic devices business• Installation of new large metal mask production line at • Increase of capital investment in photomasks

Kurosaki Plant (Fukuoka Prefecture), with operation
scheduled to start in the first half of FY2024• Installation of ultra-wide surfacing material production

line at Mihara West Plant (Hiroshima Prefecture), with
operation scheduled to start in the first half of FY2025

and lead frames• Capital and operating alliance with SCIVAX

in nano-imprinting

DNP Integrated Report 202319

2 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY / FINANCIAL STRATEGY

Reducing strategic
shareholdings

Listed stockholdings (2014 → end of FY2022)

280
260
240
220
200
180
160
140
120
100
80

Environmental
initiatives

D&I promotion

269
250

(as of July 2023)

237

222

204

-58％

191
150
129

2014

2015

2016

2017

2018

2019

2020

2021

111
2022

(FYE)

Accelerating Value Creation through theDevelopment of a Strong Business Portfolio
Mitsuru Tsuchiya, Senior Executive Corporate Officer

We, the DNP Group, are engaged in business activities tocreate a better future based on our corporate philosophy andin line with our Basic Management Policy. Within this context,
our Medium-term Management Plan for fiscal 2023 to fiscal
2025 places a strong emphasis on building a businessportfolio that can leverage our strengths over the medium tolong term, as a major pillar of our Business Strategy.

-36.5 ％ 1,200,000 763,000
Percentage of female managers(2020 → end of FY2022)

8.4%

Percentage of males taking childcare leave(2020 → end of FY2022)

54.3

Selection in

Selected in(DNP only one in the printing
industry)(23 years in succession)

6 GPIF indexes

tons

FTSE4Good

83.6%

CDP Climate
Change A List

Figure 1: Business Strategy: Medium- to Long-term business portfolio

We will promote concentrated investment and business structure transformation in focus business areas made up of
growth-driving and new businesses, and aim to generate further profits from our business activities. We also execute theNo.1 strategy through the evolution and cultivation of core technologies, M&A and co-creation with partners.
Large

Small

20

In this renewed approach, we have restructured DNPʼsbusinesses into four categories: “growth-driving businesses,”“new business,” “stable business” and “business forreforming,” based on the two axes of growth potential/
attractiveness of the market, and business profitability. By
implementing optimal strategies for each of these businessareas, we aim to enhance the Groupʼs corporate value.

GHG emissions (2015 → end of FY2022)

6.6
Acquisition of
external
evaluations

111

269

Number of securities

Medium-term Management Plan (FY2023-2025)

Appeal of market growth potential

Reflecting on the Three-Year Plan (FY2020-FY2022)

Strengthen business infrastructure to support growthBusiness Strategy

We have also continued to focus on strengthening business infrastructure underpinning growth.
For example, in terms of financial capital, before Japanʼs Corporate Governance Code was applied in2015, there were 269 strategic shareholdings at the end of fiscal 2014, but by the end of fiscal 2022, there
were 111, a reduction of nearly 60%.
In the non-financial capital related area, we have set a goal of reducing greenhouse gas (GHG) emissions by
40% in 2030 compared to 2015 levels in order to be carbon neutral by 2050, and already achieved a 36.5%
reduction by the end of fiscal 2022. With regard to diversity and inclusion, which leverages the diversity of ouremployees as one of our strengths, we have increased the percentage of female managers from 6.6% to 8.4%
and the percentage of male employees taking childcare leave from 54.3% to 83.6% in the past three years.
Our efforts are highly regarded by society. We are the only company in the industry to be selected as acomponent of all six environmental, social and governance (ESG) investments made by the Government
Pension Investment Fund (GPIF) and have been included in the FTSE4Good, the world's most prestigious
socially responsible investment index, for 23 consecutive years (as of July 2023). In recognition of our efforts
to combat climate change, we were certified as an “A List Company” by CDP, and in recognition of our
supplier engagement efforts, we have been selected for the fourth consecutive year to the highest-rated
Leader Board in CDP's Supplier Engagement Assessment.

New business
Content & XR communication
Medical & healthcare

Growth-driving businesses
Digital interfaces (Optical film, metal masks, etc.)
Semiconductors (Photomasks, lead frames, etc.)
Mobility and industrial high-performance materials(Battery pouches, etc.)

Business for reforming

Stable business

Existing printing
Beverage

Imaging communication (Photo media, etc.)
Information Security (BPO, authentication & payment)

Business profitability

Large

DNP Integrated Report 202321

2 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY / FINANCIAL STRATEGYAs of the beginning of fiscal 2023, we reorganized ourbusiness segments to clarify business domains and strategies
and to accelerate the execution of targeted initiatives. The
former Information Communication segment has beenrenamed the Smart Communication segment and the Lifestyleand Industrial Supplies segment has been renamed the Life &Healthcare segment. In addition, the Beverages business has

been transferred to the Life & Healthcare segment, enhancing
its contribution to comfortable living. As part of thisrestructuring, the Beverages segment itself has been
discontinued. Figure 3 illustrates the relationship between
these newly configured business segments (Figure 2) and ouroverall business portfolio.

Figure 2: Business segment reorganization and renaming (from the beginning of FY2023)

Previous business segments

New business segments

Information Communication

Smart Communication

Promote business using ICT

Lifestyle and Industrial Supplies

Life & Healthcare

Foster business growth by looking to expand
into the medical & healthcare sector.
Expand synergies with beverage businessElectronics

Drive growth primarily of core businesses

Electronics
Beverages

Figure 3: Business portfolio and positioning of each segment

Similarly, we will focus on the smart healthcare business,
including image diagnostics and online healthcare services,as part of the medical & healthcare business in the Life &Healthcare segment. In addition, in the Smart Communication
segment, the content & XR communication business willleverage connections with diverse intellectual property (IP)holders worldwide and make efforts in digital transformation(DX) utilizing artificial intelligence (AI) and advanced
information security technologies to contribute to theevolution of the information society. These growth-driving
businesses and new businesses together form the focus
business areas in our new Mid-term Management Plan.
The stable businesses featured in the lower-rightquadrant are critical in that they consistently generate cash
flows over an extended period. These encompass the global
deployment of products and services related to photo printing
in the imaging communication business, as well as Information
Security businesses in such areas as Business Process

Outsourcing (BPO), smart card services and authenticationand payment services. We will continue to invest in thesestable businesses with a focus on enhancing efficiency, while
carefully balancing capital allocation and cash generation.
The quadrant dedicated to business reforming in thelower left primarily includes the existing printing andbeverage businesses, which are currently less profitable,
primarily within the Smart Communication and Life &Healthcare segments. We are actively working on initiatives
to boost profitability, which includes adapting supply
capabilities and optimizing facilities in response to evolving
market conditions. In addition, we will leverage products andservices with unique strengths, such as the aseptic fillingsystems for PET bottles and products for interior and exterior
decoration for residential and non-residential use, both ofwhich command leading share in Japan. These will be
restructured through globalization efforts and boostingsynergies with other businesses.

Figure 4: Overview of business investment and operating income targets by segment
Growth investment andinfrastructuredevelopment investment

Reinvestment390 billion yen or more (cumulative amount for FY2023- FY2027)
Promote capital investment, global expansion and consideration of external alliances
centered on focus business areas.

Large

Digital interfaces (Optical film, metal masks, etc.)
Semiconductors (Photomasks, lead frames, etc.)(Battery pouches, etc.)

Existing printing
Beverage

Invest earnings obtained from stable businesses

Existing printing
Imaging communication(Photo media, etc.)

Business for reforming
Small

Mobility andindustrial
high-performancematerials

Business review
Strengthening of
profitability

Contraction andwithdrawal

Information Security(BPO, authentication & payment)

Stable businessBusiness profitability

Large

Promote concentrated investment and business structure transformation into focus
business areas made up of growth-driving businesses and new business with the aim ofbuilding a business portfolio resilient to changes in the business environment

We have positioned three businesses within thegrowth-driving businesses in the upper right quadrant of
Figure 3. The digital interface business encompasses
products such as optical film for displays, boasting theworld's top market share and metal masks for manufacturing
OLEDs. The semiconductor business includes items such as
photomasks for semiconductor production and lead frames,
both part of the Electronics segment. Additionally, in the Life
& Healthcare segment, the mobility and industrial
high-performance materials business is also positioned as a
22

growth-driving business. We will further expand thisbusiness, particularly focusing on battery pouches forlithium-ion batteries, which have the worldʼs top market
share in applications for mobile devices and electric vehicles(EVs).
In the medical & healthcare business of the Life &Healthcare segment, one of the upper-left quadrant showing
new businesses, we have plans to expand the pharmaceuticalsupport business, which includes active pharmaceuticalingredient manufacturing, formulation and medical packaging.

390 billion yen
or moreFocus business areas and growth investment

Medical &healthcare

Electronics

260
billion yen
or moreElectronics

for manufacturing organic light-emitting diodedisplays (OLEDs)•Expansion of production capacity for surface
material products such as ultra-wide optical films•Expansion of production capacity for photomasks,
etc. in Japan and overseas•Mass production of nano-imprinting throughcapital and operating alliance and joint investment
with SCIVAX•Expand value creation to the semiconductor supply
chain through external alliances.

(¥ billion/Ratio by segment)■ Electronics■ Life & Healthcare■ Smart Communication

Record earnings

130.0•Expansion of battery pouch production capacity,

Life &
Healthcare

promotion of supply to appropriate regions suchas Europe and the United States•Expansion of production capacity for barrier films,
eco-friendly packaging materials, etc.
•Strategic business alliances in medical &healthcare business (Investment in CMIC CMO
under CMIC HOLDINGS, etc.)•Early commercialization of MaaS from the trial
period•Consideration of external alliances

85.0
61.2

51%

50%

58%
(Including updating facilities, etc.)

Life & Healthcare

Operating income•Expansion of production capacity for metal masks

Infrastructure investment

Smart Communication
Content & XR
communication

Growth-driving businesses

Development

Focus business areas

Appeal of market growth potential

New business

28%
22%

Investment inestablishmentof infrastructure,
etc.

130
billion yen
or moreSmart
Communication•Imaging communication business global expansion•Information Security business global expansion•Creation of business for unique fan service

spanning real and virtual•Consideration of external alliances

10%
33%

28%

Adjustment

Adjustment

FY2022

FY202521%
Adjustment

FY2023-2027

DNP Integrated Report 202323

2 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY / FINANCIAL STRATEGY
We plan to invest 390 billion yen or more over five years fromfiscal 2023 to fiscal 2027 to advance our business strategy.
Of this, we will invest 260 billion yen or more in the fivebusinesses designated as focus business areas to drive
growth. In addition, we will expand the production capacity of
our major products, which have achieved top market shares
both domestically and internationally. We will also promotealliances with diverse external partners and enhance theglobal expansion of each business, accelerating our growth.
Further, we will invest 130 billion yen or more in building andmaintaining our business foundations, including updatingproduction facilities. For details on our key initiatives, pleaserefer to Figure 4.
Regarding the balance among the three segments, as
shown in the graph on the right in Figure 4, we anticipate
approximately 50% of operating income to come from
Electronics, 30% from Life & Healthcare and 20% from
Smart Communication. Excluding adjustments, such as
collaborative projects between segments, we aim to achieve
our target operating income of 85 billion yen in fiscal 2025
and the subsequent goal of 130 billion yen or more.

Figure 5: Reinforce business foundations through business structure reform
Strengthening measures

Expansion measures

Expansion of photo imaging business into emerging markets
Expansion of authentication security business
Expansion of BPO service business
Global expansion of content & XR communication businessLife & Healthcare

Reviewing low
value-added products
and restructuringbusiness locations• Reorganization of locations inpackaging-related business

Expansion of production capacity for lithium-ion battery pouches
Expansion of production capacity for barrier films,
eco-friendly packaging materials, etc.

Automation andproductivity
improvement

Maximization of medical & healthcare-related synergies

Expansion of production capacity for surface material products
such as optical films

Masafumi Kuroyanagi, Managing Director
To ensure a better future and sustain long-term value
creation, DNP is committed to continuously strengthening themanagement foundations underpinning our business
operations. We strive to practice integrated management that

Figure 1: Financial Strategy presented as a Basic Management Policy

actions for sustainable growth include optimizing our
locations and systems in alignment with market trends andbusiness scale across all segments and reallocating
resources from contracting divisions to areas with growthpotential.

• Create funding for investment in growth through cash flow generated through businessactivities, in addition to maximization of efficiency of funds including acceleration of
the reduction of assets held.
• Plan the largest acquisition of treasury shares in DNPʼs history with the aim of
improving capital efficiency.
• Seek to further enhance shareholder returns conscious of indicators such as earnings
per share (EPS) while maintaining stable finances for sustained corporate activity.

Through our financial strategy, we aim to generate 750 billion
yen or more in cash over the five-year period from fiscal
2023 to fiscal 2027. Subsequently, we intend to distribute
this cash strategically to facilitate ongoing business expansion
and enhance shareholder returns (see Figures 2 and 3).
We aim to generate operating cash flow of 440 billion yen
or more, serving as the foundation for growth investments.
We will actively invest in focus business areas and enhance
efficiency in existing businesses to achieve this goal. We
maintain an ongoing assessment of our strategic
shareholdings, considering factors such as their overall
impact, trading performance and prospects. Our strategy
24

combines the strengths of financial and non-financial capitalto achieve this goal. Specifically, our financial strategy isarticulated within our basic management policy as follows(see Figure 1).

Expansion of production capacity for photomasks, etc.
Expansion of value provision to semiconductor supply chain

The DNP Group is committed to strengthening our businessfoundation for creating new value, we achieve this throughthe continued advancement of both our financial andnon-financial strategies, alongside various structural reforms
within the scope of our business strategy. Our concrete

Generate capital for growth investments andstrengthen financial foundations throughshareholder returns

Global collaboration for barrier films

Expansion of production capacity for metal masks for
manufacturing organic light-emitting diode displays (OLEDs)

Electronics

Medium-term Management Plan (FY2023-2025)

Financial Strategy

Rationalization of
paper media business

Financial Strategy

Smart
Communicationentails executing the required divestments of strategic
shareholdings to generate 220 billion yen in cash and reduce
their share to below 10% of net assets. In addition, we will
accelerate the divestment of idle assets and explore
appropriate funding methods, including the utilization ofinterest-bearing debt, to optimize financial leverage andfunding efficiency, ultimately leading to the generation of 90
billion yen or more in cash.
Regarding strategic shareholdings, we conducted atender offer for a portion of our common shares in Recruit
Holdings Co., Ltd., resulting in the sale of a stake valued at60.8 billion yen. This achievement signifies that we have
DNP Integrated Report 202325

2 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY / FINANCIAL STRATEGY
already made substantial progress, nearing 30% of our goal
to sell 220 billion yen worth of strategic shareholdings overthe next five years.
As part of our cash allocation strategy, we plan to invest
390 billion yen or more of cash generated through measures
such as maximizing fund efficiency over the course of five
years in business growth and infrastructure development. At
least 260 billion yen of this will be allocated specifically to
our focus business areas, further accelerating our expansion,and securing a further competitive edge in global markets.
Additionally, in line with our cash allocation strategy, we will
actively pursue shareholder returns.
The DNP Group believes that to enhance the sustainabilityof its corporate activities and provide long-term value tosociety and individuals, it is important to maintain financial
stability while directing cash towards growth investments andactively distributing it to shareholders.

Based on these considerations, one of the measures DNP isplanning to achieve its earnings and capital structure goals is
to acquire approximately 300 billion yen worth of treasury
shares over the five-year period from fiscal 2023 to fiscal
2027. As the first round of this plan, we will acquire treasury
shares valued at 100 billion yen by March 2024, over thecourse of about one year. As shown in Figure 4, we
continuously strive to maximize shareholder value andregularly carry out share repurchases, with this round being

the largest in scale to date.
In addition to the share acquisition program, we also
cancelled 25 million shares, equivalent to around 8% of theissued shares, as of March 20, 2023. Regarding our holdingsof treasury shares, we will continue to evaluate options suchas further cancellations or potential utilization for activities
such as M&A, taking into consideration both domestic andinternational market conditions and the overall status of
DNPʼs business.

Figure 2: Financial Strategy: Cash allocation
Figure 4: Acquisitions of treasury shares (FY2002-2023*)
5 years from FY2023 to FY2027 Appropriate allocation of cash generated to further business growth and shareholder returns

100

Total share repurchase amount(¥ billions)

Cash generation

Cash allocation strategy

Generation of
750 billion yen or more in cash

Generation of operating C/F:
440 billion yen or more

Business investment

Sale of strategic shareholdings:(reduction to less than 10% of net assets)

Active shareholder returns

treasury shares• Cancellation of 25 million treasury

shares (equivalent to 8%)

Cash generation

Reduction of strategic
shareholdings and idle
assetsCash allocation strategy

Utilization of financial
leverage

26

Investment in focus
business areas andinvestment aimed at thecreation of management base

Reduction of equity capital
aimed at creation of
optimal capital structure

Balancing of financial
stability and optimal
capital allocation

25

0

2002

2003

2004

2005

2006

2007

2008

2015

2016

2017

2019

2021

2022

2023

FY

(*Each fiscal year begins on April 1 and ends on March 31 of the following year)

Dividend policy conscious of EPS and DPS

Figure 3: Financial Strategy: Priority measures

Stable generation ofoperating CF

Plan to implement the acquisition of treasury shares valued at
100 billion yen, the largest in scale to date

50

(First round)• Acquisition of 100 billion yen in

Reduction of idle assets, utilizationof interest-bearing debt,
maximization of cash efficiency:
90 billion yen or more

(FY2023)

75

Plan to acquire around
300 billion yen in treasury shares

220 billion yen

100

Shareholder returns

Growth investment and infrastructuredevelopment investment390 billion yen or more
Including investment into
focus business areas
260 billion yen or morebillion yen

In our shareholder return policy, we intend to actively
distribute profits in consideration of earnings per share (EPS)
and dividends per share (DPS).

We will continue to diligently execute the key initiatives ofour financial strategy while firmly making growth investments
to consistently create new value.

• Create 440 billion yen or more in operating cash flow over five years providing the source for
growth investment by promoting concentrated investment in focus business areas and promoting
business structure reform.
• Generate 220 billion yen in cash through the sale of strategic shareholdings and reduce themto less than 10% of net assets.
• Improve asset efficiency by reducing idle assets.

• Consider appropriate funding methods including the utilization of interest-bearing debt.

• Invest 390 billion yen or more over 5 years in business investment using cash generated
through the maximization of capital efficiency. Of this, invest 260 billion yen or more in focus
business areas.
• Plan to acquire a total of around 300 billion yen in treasury shares. Implement the first roundof acquisition of treasury shares valued at 100 billion yen.
• Cancel 25 million treasury shares (equivalent to 8%)• Consider treasury shares held, including cancellation and utilization in M&A based on future conditions.
• Stably maintain finances for sustained corporate activity, and actively allocate cash generated
through maximization of capital efficiency to shareholder returns.
• Execute shareholder return policy, taking into consideration earnings per share (EPS) anddividend per share (DPS).

DNP Integrated Report 2023

27