DNP GroupCSR Report 2007 Information and Data
April 2006-March 2007

CONTENTS
Corporate Citizenship41-1 - 41-2

: Seminars on Philanthropy Programs, Web Sites of

For an Inspiring Workplace

21-1• Corporate Citizenship through Design and Arts

Our Philanthropy• Personnel Data
• Transparent and Fair Hiring Practices

23-1 - 23-3

• Support for Employees Seeking Career Advancement: Personnel System

23-4 - 23-5

25-1

25-2 - 25-5

For Environmental Conservation and a Sustainable Society

51-1 - 51-2

• Support for Employees Seeking Career Advancement: Transition of waste emissions, Transition of total waste: Training Programs (Overview)

generation, Wastepaper collection/Wastepaper collection• Efforts to Create an Energetic Workplacerate, Transition of the amount of recycled water, Transition: Respecting Diversityof the amount of rainwater, Water Input-Output• Efforts to Create an Energetic Workplace

57-1: Flexible Work Styles

25-6 - 25-7

• Use of Recycle Materials: Transitions of CO 2 emissions and fuel use for• Efforts to Create an Energetic Workplace: Creating Healthy and Safe Workplaces• Reducing Global Warming and the Climate Change Impact

transportation

59-1 - 59-4

• Reduction of Environmental Pollutants: Chemical Substances subject to the PRTR Law,

33-1

For New Value Creation

Dichloromethane emissions, Dioxin emissions, CFC• Research & Development to Contributions to the Emergently

substitute emissions, SOx emissions, NOx emissions,

Evolving Society

VOC emissions, COD emissions, Nitrogen emissions,: Research & Development System, Investment of

Phosphorous emissions

61-1 - 61-3

• Sites for Environmental Disclosure• Intellectual Property Rights Management Efforts

61-4 - 61-5

• ISO14001 Certification Acquisition: Framework for Promoting Intellectual Property

61-5• Eco Action 21 Certificates61-6 - 61-9

• Environmental Accounting: ISO9000 Certification Status, HACCP9000 Certification Status

61-10• Environmental Education• Efforts to Create a Crisis Action Plan

61-11

• Achievements in Environmental Issues

Research and Development

33-2

35-1

35-2

• Acquiring Cetification for Quality Assurance: Survey on Earthquake Risks35-3 - 35-4

37-1

63-1 - 63-2

: Step in Eco-Audit and Contents, Features of Eco-

• Realizing a Universal Society: Packaging Design Guidelines - USE·FULL ®Packaging -Audits, Features Regarding the Expertise and• To Promote Reputable Activities with Suppliers

Independence of Eco-Audits, Types of Notifications: Requests from the DNP Group to its Suppliers

and Corrections Issued in the Eco-Audit

63-3 - 63-4

• Share Information: Total number of shares issued, Shareholders at term end,
Breakdown by size of holdings, Breakdown by type ofshareholder• Environmental Risk Management: Legal compliance situation

Seeking to Increase Share Value

39-1• DNP's Own Environmental Management System

65-1• Current Status of Environmental Impact: Trends in Eco-Efficiency

For an Inspiring Workplace

Personnel Data
DNP (as of March 31, 2007)
Number of directors on the Board (Non-consolidated)

Male: 26 persons

Female: None

Total: 26 persons

Senior Expert (Leadership position level 2 and above) (Non-consolidated)

Male: 1,271 persons

Female: 14 persons

Total: 1,285 persons

Number of employees (Non-consolidated)

Male: 7,775 persons

Female: 1,228 persons

Total: 9,003 persons

Average age (Non-consolidated)

Male: 37.8 years old

Female: 29.9 years old

Aggregate: 36.7 years old

Average number of years continuously employed (Non-consolidated)

Male: 14.8 years

Female: 8.2 years

Overall: 13.9 years

Number of employees (Consolidated)

Male: 32,369 persons

Female: 5,371 persons

Total: 37,740 persons

Executive officers in overseas Group companies (Consolidated)

Local: 39 persons

Japan: 87 persons

Total: 126 persons

Transparent and Fair Hiring Practices
We provide opportunities equally to anyone who shares our corporate vision and wants to work with us to realize their potential. We use equitable methods to select and hire employees. We also actively participate ininternship programs.
Type of Hiring

New hiring
We inform candidates of the type of person weare looking for, the steps in our hiring process, thetiming of each step, and what we are looking for inThis Year Results

Previous Year Results

FY2007 new hires

FY2006 new hires(DNP only)(DNP only)• Regular employees:• Regular employees:

150 persons

140 persons(99 males, 51 females)(95 males, 45 females)• Technical staff:• Technical staff:

260 persons

230 persons(208 males, 52 females)(180 males, 50 females)

We advertise broadly via the Internet, with no age

FY2006 mid-career hires

FY2005 mid-career hires

restrictions. We explain clearly and specifically the(DNP only): 57 persons(DNP only): 78 persons

In response to requests from schools and stu-

During August - September

During August - September

dents seeking experience in the working world,

2006:

2005:

we provide students with opportunities to gain

105 interns were accepted in

68 interns were accepted inwork experience. These opportunities do not nec-

74 categories

42 categories

each interview. In order to avoid mismatches, weassign young employees as recruiting partners togive candidates a real-life picture of our company.

Mid-career hiring

job duties of the positions we seek to fill.

Internships (arranged jointly with affiliates)

essarily lead to regular employment.

21-1

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Support for Employees Seeking Career Advancement (1)[Personnel System]
SystemProgramThis Year Results

Previous Year Results

We p e r i o d i c a l l y r e c r u i tinternal staff and advertise
positions requiring
specialized knowledge andpositions in new businessesor new product developIn-house recruiting
systemment. Anyone with ability,
experience, and the desire
to be challenged is free
to apply. The purpose is a

[FY2006][FY2005]

Number of recruits: 120

Number of recruits: 78

Number of transfers: 51

Number of transfers: 55(42.5%)(70.5%)

connection within the company to discover talented
human resources and to lot
employees to realize theirpotential.

We provide training, financing, and other types of
In-house venture

support for employees who

FY2006: 0 company

systemhave entrepreneurial aspi-(Accumulated: 5 companies)

rations and want to start an

FY2005: 1 company*(Accumulated: 5 companies)* January 2006/YouToo

independent new business.

The employee gains experience in another department
or office for a fixed term and
In-House Learning inthen returns to his or her

a Different

original position, with the

Department

goal of improving work skills

FY2006: 3 persons

FY2005: 3 persons

This program pays incen-

Increase in employees with

Increase in employees withtives to employees who

qualifications for specialized

qualifications for specialized

acquire specialized knowl-

knowledge and technology

knowledge and technology

edge, skills, or qualifications

necessary for work, primar-necessary for work, primarily

needed for their job (covers

ily IT-related work

IT-related work

about 90 types of qualifica-

FY2006: 593 persons re-

FY2005: 372 persons re-tion, up to 100,000 yen).

ceived qualifications

ceived qualifications(the program was introduced
by an employee's suggestion).

Qualification support
program23-1

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Support for Employees Seeking Career Advancement (2)[Personnel System]
SystemProgramThis Year Results

Previous Year Results

Employees with valuable production
skills are designated as “Meisters”
and we train, appraise and treat
them for the succession of their
Meister systemtechnical skills, which is the basisof manufacturing. Meisters take onroles for the whole organization as

FY2006: 0 designatedCumulative total throughend March 2007: 47

FY2005: 3 designatedCumulative total
through end March
2006: 47

well as in each division that they belong, so as to cultivate successors
by passing on their talents.

Employees with advanced specialSpecial skills
recognition program

ties, whose talents are recognized

FY2006: 3 designatedparticularly widely both inside the

Cumulative total throughcompany and outside, receive spe-end March 2007: 16

cial compensation.

FY2005: 1 designatedCumulative total
through end March
2006: 13

Introduction of the following
monthly salary systems:“Role learning salary and

Ranking and salaryrole basic salary”, which

Introduction of evalu-

Individual performance is evaluatedare evaluated based onation based on “roles”

according to his/her current role

employee’s learning sta-and “performance”

and results and ranked accordingly.

tus for general staff andinto monthly salaries.

Monthly salary and bonus standards

development status for

Bonuses paid based

are interlocked, while seniority is ex-

managers of each ranking.

on “employee assess-cluded from evaluation.

“Role performance salary”,

ment” and uniformity inwhich is evaluated basedranking.

on the employee’s ranking
and performance during
the period.
At regular intervals, employees sit
down with their supervisors to set
Evaluation / compensation systems(management by
objective system, etc.)

future performance targets andtheir evaluate past performance.
Employees and supervisors
increase mutual understanding
through discussion and counseling.

Personnel evaluation expanded to include generalstaff beginning with the2005 winter bonus.

Evaluation results are directlyreflected in salaries and bonuses.

23-2

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Support for Employees Seeking Career Advancement (3)[Personnel System]
SystemProgramThis Year Results

Previous Year Results

to further their careers, andFY2006 Persons participat-

FY2005 Persons participat-

for any other requests theying in self-reporting system

ing in self-reporting system

may have related to their life

interviews:

interviews:

plans. When the company

120 transferred out of 302

80 transferred out of 287

FY2006

FY2005

We ask employees whether
they want to change positions or workplaces in order

Self-reporting systemagrees, steps are taken
to realize the employee’s
wishes.

Award system(Awarded in June 2006)(Awarded in June 2005)

This system includes• For job performance• For job performance

awards for job performance,(special annual award):(special annual award):

achievement of goals, and47 awards

41 awards

years of service (25 years)• For achievement of goals• For achievement of goals- based on results achieved(special annual award):(special annual award):

semiannually and annually.

23-3

26 awards

26 awards• For years of service:• For years of service:

461 persons

381 persons

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Support for Employees Seeking Career Advancement (4)[Training Programs (Overview)]
Staff
Labor management
education

Sales

Planning andDevelopment

Research andDevelopment

Technical
Engineering

Planning
enforcement training

Production
Management

Production

IE experts training
Technical seminars (90 courses)

New entry
staff education

Leader’s expertisetraining

Solution business training
Networking with external entities
Pricing training
Sales and planning seminar
Project management training
Sales and planning intellectual
properties basic

Engineering intellectual
properties basic

Sales and planning intellectual
properties advanced

Engineering intellectual
properties advance
Mechatronics training
IT experts training

Seminar for administrator qualification
Seminar for information security administrator qualification
Training for the third type lead electric technician qualification
New business development support seminar
New career design training
Business manner instructor training
Instructor guidance training
New entry employee instructor education

Normalization seminar
Sign language course (regular, advanced)
International communication skills (English, Chinese, Korean)Inter-cultural management training
Computer literacy education
Seminar to support women’s careers

23-4

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Support for Employees Seeking Career Advancement (5)[Training Programs (Overview)]
Staff

Sales

Planning andDevelopment

Research andDevelopment

Technical
Engineering

Production
Management

Production
Health and safety
management

Law on the preventionof Delay in the Payment
of Subcontracting Charges
and Related Matters

Law on the prevention of Delay in the Payment
of Subcontracting Charges and Related Matters

Environmental
issues and business

Environmental issues and business
Beginner’s course of contract

Management indicators
Key financial figures
Beginner’s course of cost and profit
Beginner’s course of export management
Network learning

Beginner’s course of product Liability Act
Antitrust law
Insider trading regulations
Personal information protection
Beginner’s course of information security
Computer virus check course
Beginner’s course of CSR
Mental health course
Sexual harassment prevention course
Beginner’s course of career design
Beginner’s course of printing technology
About colors

Correspondence
courses (CAPA)

Staff

Sales

Mandatory for all employees

23-5

Planning andDevelopment

Research andDevelopment

Technical
Engineering

Production
Management

Production

200 courses

Mandatory for first and second year entry employees

Development of Personnel that Contribute to an Emergently Evolving SocietyFor an Inspiring Workplace

Efforts to Create an Energetic Workplace (1)[Respecting Diversity]
Activities

ProgramThis Year Results

Previous Year Results

We achieved the legally mandated
ratio of disability employment, basedon the premise that people with disabilities should be able to function
normally in society. We educate
workplace leaders so they can unHiring people with

derstand employees’ special needs.

disabilities• Workplaces and facilities are
adapted to allow people with dis-

FY2006: disabled

FY2005: disabled

employee rate 1.87%

employee rate 2.00%(DNP only)(DNP only)

abilities to work
• Hiring throughout the year
• Normalization training for managers of workplaces with people withdisabilities

Rate of users of thissystem in FY2006:

Hiring seniors

Employees who want to continue

65.8%

working as seasoned profession-

Modified qualification

Rate of users of thisals after reaching their mandatory

requirements with more

system in FY2005:

retirement age may be hired as aclarity and details, ac-61.9%“senior officer”.

cording to employee’s
standpoint since April
2006.

• Started “Seminar to
support women’s• We conducted training seminars
for managers about supporting
Eliminating gender bias
from the workplace

women’s careers• We expanded career opportunities
for women• We sent female managers to outside training seminars

careers” for women
employees and thesupervisors.
• From June 2003 to
March 2006: 1,825
managers participatedin training to support

From June 2003 to
March 2005: 1,825
managers participatedin training to support
women’s careers.

women’s careers.
(It was non-enforced
in 2006)25-1

Efforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (2)[Flexible Work Styles]
SystemProgramThis Year Results

Previous Year Results

Flexible employment system incorEmployment system

porating:

Applied to over 63.3%• Flex time systemof our employees over-• Discretionary working systemall (DNP only)• Part-time working hours

Diverse leave system that accom-

Leave systemmodates individual lifestyles.

2006: Percentage of

2005: Percentage of• Annual paid vacation

employees who took

employees who took(maximum of 20 days a year)

an annual paid leave:an annual paid leave:• Childcare leave

34.4% (DNP only)

32.7% (DNP only)

2006: 77 persons took

2005: 50 persons took

leave under this system

leave under this system(DNP only)(DNP only)

can feel secure about taking leave

Registered wiwiw

Registered wiwiw• Life-support leave• Until April 30 of the child’s second
year, or until a child is 18 months
Childcare leave

old• An employee can take childcare
leave up to twice per child during
the childcare leave period.

This system is designed to create
an environment in which employees
facing childbirth and childcare duties
and then returning to the workplace

members as of Marchmembers as of March

Back-to-Work fromsmoothly, and also so that they

2007: 54

2006: 81Childcare Program

can display their full abilities while

Kangaroo Club mem-

Kangaroo Club mem-balancing work and home duties.

bers in January 2007:

bers in January 2006:

It includes an Internet program,

Tokyo, 27; Osaka, 10Tokyo, 11; Osaka, 9

Up to 366 days per eligible family

2006: 0 persons took

2005: one person took

member; no limit on the number ofleave under this system

leave under this system

times(DNP only)(DNP only)“wiwiw”, for support for returning towork after childcare, and a back-towork seminar, Kangaroo Club.

Family nursing care
leave

25-2

Efforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (3)[Flexible Work Styles]
SystemProgramThis Year Results

Previous Year Results

As of March 2007, 45

As of March 2006, 30

persons were registeredpersons were registeredas candidate

as candidate

This makes it possible, undercertain conditions, for former
employees who, having been
"re-work" Systemforced to stop work for childcare(See chart below)

or nursing care purposes, findthat their life circumstances havechanged and would like to become
employees again.

["re-work" system]

Retirement

1) Apply for registration
2) Issue registration
statement

Hiring (newemployment contract)

Period for finding job (for one year)
Registration period(for five years)

Registerer
During period for having birth,childcare or nursing care(Max. for five years)

Re-employment if matchedto needs at a workplace

Retired due to having birth,childcare or nursing care

Worked for morethan three years as
an employee

Trial hiring (employment contract
for a fixed term)

Confirm contact information Re-employment application
4) Send registration statemeRecruitment information
Re-employment introduction nt and job requirement form

Trial period
Working for threemonths asa contracted
employee for a
fixed term

Work asa full time
employee

Work asa part time
employee<Trial period>
For three months Period to
examine the possibility
for hiring for the company
and individual

Each general affairs division

Registration

Group Hello Work(DNP human services)
Recruitment information
3) Send recruitment
form

Introduce person wishingre-employment

General affairs of each DNP
operational division

25-3

Recruitment information
3) Send recruitment
form

Introduce person wishingre-employment

General affairs of each DNPGroup company

Efforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (4)[Flexible Work Styles]
SystemProgramThis Year Results

Previous Year Results(financial planning, housing

FY2006: The office handled

FY2005: The office handled

Consultation

selection, design and

1,535 cases

1,192 cases

officeconstruction), legal issues

Conducted on site clinics at 6

Established the Kansai Con-

(inheritance, family matters,sites since January 2007.

sultation Office in July 2005

FY2006: 718 consultations

FY2005: 651 consultations• Distribution of design books• Distribution of design books

Consultation with specialists for the topics of housing

and accidents), taxes, andsexual harassment.
Provides information aboutpensions, employment
Life Plan Consulting Center

insurance, motivation forliving, lifelong education,etc. to assist individuals
with planning for life after
retirement

to 45-year-olds• Preparation guidance for
55-year-olds
Joint labor-management
Life planning

programs, such as distri-promotion systembution of magazines andholding seminars

ing center

Mutual relief
association

Provides counseling andguidance regarding careerdevelopment• Briefing sessions are held

regarding public pensions

regarding public pensions

and employment insurance

and employment insurance

for people of the ages of 58

for people of the ages of 58

and 59.

and 59.

• FY2006:• FY2005:

guidance 939 persons at-

guidance 651 persons at-tended guidance and briefing

tended guidance and briefing

sessions

sessions

the center• Career design development• FY2005: 137 persons usedthe center• Career design development

coursecourse25 persons

69 persons(conducted three times)(conducted five times)

FY2006

FY2005

Continuous creation of in-• Congratulatory or condo-• Congratulatory or condo-

dependent structures forlence benefit: 7,595 cases

lence benefit: 7,277 cases

mutual relief efforts funded• Loans: 121 cases• Loans: 109 cases

jointly by the company and• Children’s scholarships (stu-• Children’s scholarships (stu-dent grants and pension):dent grants and pension): 75

54 casescases

the labor unions.

25-4

55-year-olds• Briefing sessions are held

• FY2006: 136 persons used
Career counsel-

to 45-year-olds• Preparation guidance forEfforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (5)[Flexible Work Styles]
SystemHealth management
systemProgramThis Year Results

Previous Year Results"Health examination management sys-

January to December

January to Decembertem" on the Intranet makes it possible

2006

2005

to access one's own health examina-

Percentage of people who

Percentage of people whotion results, including past results, via aunderwent general medi-

underwent general medi-

personal computer.

cal examinations: 99.39%

cal examinations: 99.35%

2006: 83,544 persons vis-

2005: 82,512 persons vis-

ited the clinics

ited the clinics

14 clinics throughout Japan. In addition
to employees covered by medical insurClinics

ance, these clinics treat the nonworking
dependents of those employees (up to
the age of 16).

Creation and implementa-

Smoking measures

Smoking measures conducted basedtion of the “DNP Groupon the Group Guideline at each work-

Smoking Guideline” thatsite to prevent nonsmokers from sec-

stipulates standards forondhand smoke.

separate smoking areasand smoking regulations.
January to December

January to December

Consultation system for employees

2006

2005

Telephone healthand their families to provide advice

Telephone health consul-

Telephone health consul-

consultationfrom medical specialists about diseasetation (including family

tation (including family

Mental healthor medical therapy. It also provides

members)

members)

consultation officesupport for health maintenance throughMental health consultation

Mental health consultation

nutrition consultation and exercise

Nutrition consultation and

Nutrition consultation andconsultation.

exercise consultation

exercise consultation

Total of 6,077 cases

Total of 6,898 cases

Health consultation officeNutrition consultation,
exercise consultation

DNP is shoring up educational
programs and expanding in-house
consultation opportunities so as tosupport and improve employee mental
health. We have continued as we didlast year in implementing mental healtheducation by distributing our guidebook
Mental Healthand holding lectures. We also created
our own videos and intranet-based
courses, and made these courses
mandatory for all employees.
We also offer checkups by specialists
at the Tokyo Ichigaya medical clinic andat health insurance union clinics in the
Kansai area in order to promote early
detection (prevention) and treatment.

25-5

Efforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (6)[Creating Healthy and Safe Workplaces]
All of our employees want to work in a safe and pleasant environment, so we conduct our own health andsafety activities. Our basic policy is to support the creation of comfortable and pleasant working environments
and working styles that make room for family life. Accordingly, we created a system of health and safety activities for all employees to participate in, and we attach great importance to this system.
The Central Health and Safety Committee has been established at Headquarters through joint labor-management cooperation, as well as in each operation and affiliate company.

SystemThis Year Results

Previous Year Results

Major standards and guidelines
1) Workplace environment
Standards and guidelines

improvement

Management and employees together• Workplace environment standards

established the Central Health and Safety• guidelines for preventing noise in

Committee within the head office. Each Opera-

the workplacetion and the Group company has a similar• guidelines for tobacco smoking

system for discussing and promoting health2) Preventing work-related

and safety related activities.

accidents• Guidelines for preventing industrial
accidents caused by machinery, etc.

Skill improvement
Promotes activities that are tailored to each
workplace, and seeks to improve employees'
skills when necessary to allow the Health and
Safety Committees to function effectively.

Employees holding qualifica-

Employees holding qualifica-

tions as of March 2007

tions as of March 2006

Industrial sanitation administra-

Industrial sanitation administra-

tor: 385

tor: 349

Operation chief: 2,367

Operation chief: 2,126

Completed technical course

Completed technical course

for restricted work operations:for restricted work operations:

6,051

5,522

Completed special educational

Completed special educationalcourse: 1,955

course: 2,282

DNP’s accident rate is low

DNP’s accident rate is low

Accident prevention

compared to the industry-wide

compared to the industry-wide

We analyze potential hazards and take steps

average and even compared

average and even compared

to prevent accidents involving revolving ma-

to the average for all types ofto the average for all types ofchinery, which is a major cause of industrial

printing industries

printing industries

accidents.

Jan - Dec 2006: Industrial ac-

Jan - Dec 2005: Industrial ac-

cident rate*: 0.44%

cident rate*: 0.50%* Industrial accident rate: the number of employees who missed work due to a work-related
accident divided by the total number of hours worked in units of 1 million hours

25-6

Efforts to Create an Energetic Workplace

For an Inspiring Workplace

Efforts to Create an Energetic Workplace (7)[Creating Healthy and Safe Workplaces]
SystemThis Year Results

Previous Year Resultsa part of emergency medication system since

Number of AED placed as of

Number of AED placed as ofJuly 2005. At each site, AED are placed at aMarch 2007: 54

March 2006: 22

Placement of automatic external defibrillators(AED)
We have placed medical devices that administer an electric shock to the heart in the event of
sudden heart failure (automatic external defibrillators (AED) at our worksites nationwide.
We proceeded to install them nationwide as

security office so as to be able to use them 24hours a day in response to an initial report foran emergency request, by receiving qualification courses in emergency skills taught by theFire Defense Agency. We also assign medical
staff who have received technical education
provided by specialized agencies at each clinic

25-7

Efforts to Create an Energetic Workplace

For New Value Creation

Research & Development to Contributions to the Emergently Evolving Society[Research & Development System]
Our Research & Development Division develops the seeds of solutions in a broad range of R&D fields, and creates systems that take the commercialization of these seeds into the market.
The Research & Development Division consists of the Research & Development Centers (8 specialized laboratories), the Nano-Science Research Centers (two specialized laboratories), the Media Technology ResearchCenter, Electronic Module Development Center, the Technology Development Center, and six business specificlaboratories (Packaging, Living Space Materials, Opto-materials (Formerly Advanced Industrial Supplies), Information Media Supplies, Display Components, and Electronics Devices). They all work closely with our business
operations in seeking to create new values.

Controlled by Head Office
Development
supportProduction technologies;
equipment development

Controlled by Operations

Advanced Technology & Business
Development Division

Technology Development Center

R&D on new products andtechnologies

Improvement of existing products andtechnologies/Development of products
and technologies for the division

Books and Magazines

Lifestyle Materials
Opto-Materials/Industrial Supplies
Information Media Supplies

Electronics

Display Components
Electronics Devices

Technical section of each operations

Lifestyle andIndustrial Supplies

Media Technology Research Center

Packaging

Nano Science Research Center

Communication and Information

Research & Development Center

IPS/Business Forms

Electronic Module Development Center

Commercial Printing

Information
Communication

Packaging Laboratory
Lifestyle Materials Laboratory
Opto-Materials Laboratory
Information Media Supplies Laboratory
Displays Components Laboratory
Electronic Devices Laboratory

New Business Fields

Commercialization projects

Investment of Research and Development (billions of Yen)
30.1

300
28.6
280
260

26.3

240
220
200

33-1

'04

'05

'06

Management in Support of P&I Solutions

For New Value Creation

Intellectual Property Rights Management Efforts[Framework for Promoting Intellectual Property]
DNP's IP-protection framework consists of four sections and employs seven in-house attorneys. The Patented
Technology Section addresses IP related to basic research and DNP's main business segments: Information
Communication, Lifestyle and Industrial Supplies, and Electronics. The Licensing Section handles contracts
and legal issues related to IP. The Kansai Intellectual Property Section handles both patent and license related
functions for Kansai and the rest of western Japan, combining the functions of the first two sections. The Planning Management Group proposes IP strategy and operates DNP's patent information management system.
In addition, an IP representative is assigned to each development base in Japan, so that our IP activities can
be closely linked to our business operations.

IP Framework
Patented Technology Section
Information
Communication

Lifestyle andIndustrial Supplies

In-house
attorneys (7)Electronics

Basic ResearchProtect and make use of innovations that resulted from research and development activities(1) Support creation of IP in line with our R&D strategy(2) Support the creating of R&D patent portfolios(3) Educate employees about R&D-related IP issues

Licensing Section

Representative staff(1) Discover patents, utility modes, and designs; acquire rights (2) Promote use of IP in businessactivities (3) Handle IP-related problems that arise in the course of doing business (patents, utility
modes, designs, etc.). patent research, treatment of other companies' patents, support for businessactivities (4) Public relations related to patents, etc.

R&D Center

Technology
Development
CenterOperational
divisions(1) Handle IP-related contracts (drafts, review, etc.) (2) Support all types of business activities related to
IP: trademarks, copyrights, prevention of unfair competition, Law for Preventing Unjustifiable Extra or
Unexpected Benefits and Misleading Representation, etc. (3) Apply for trademarks, acquire and manage
rights, research other companies' rights (4) Consult, negotiate, handle disputes related to every aspectof IP issues

Kansai Intellectual Property Division
Maintains joint functions with the Patent Technology Division and License Division in Kansai and areas
to the west.

Planning Management Section(1) Propose IP strategy; disseminate information (2) Create patent research system/operate patent
management system/create infrastructure to support research and development activities (3) Serve as asecretariat for promoting IP business strategies (4) Run clerical operations related to IP

33-2

Management in Support of P&I Solutions

For New Value Creation

Acquiring Certification for Quality Assurance
ISO9000 Certification Status

Operations/Group companies

Factory

Obtained in:Commercial Printing Operations, DNP Media Create

Enokicho, Oji, Akabane, Utsunomiya

Aug. 2002

Information Communication Kansai Operations, DNP Media Create Kansai

Osaka, Neyagawa, Ono

Jul. 2001

Information Communication Kansai Operations, DNP Data Techno Kansai

NaraDec. 1999

IPS Operations, DNP Data Techno

Warabi, Enokicho, Ushiku

Nov. 1997

DNP Seihon

AkabaneOct. 2002

DNP Digital Com

Data Processing Center

Dec. 1999

Information Media Supplies Operations, DNP IMS

Sayama, Okayama

Nov. 1994

Opto-Materials Operations, DNP Opto-Materials

Okayama, Mihara

Feb. 2003

Lifestyle Materials Operations, DNP Lifestyle Materials

Tokyo, Kobe, Okayama

Nov. 1997

Lifestyle Materials Operations, DNP Ellio

Tokyo, Osaka

Sep. 1998

DNP Technopack Yokohama

Yokohama

Mar. 1998

DNP Technopack Tokai

Nakatsugawa

Nov. 1999

Packaging Operations, DNP Technopack

Sayama, Izumizaki

Apr. 1998

Packaging Operations, DNP Techno Polymer

Kashiwa, Kansai

May 1999

Packaging Operations, DNP Techno Film

Kashiwa, Izumizaki

Mar. 2002

Packaging Operations, DNP Cup Techno

SayamaSep. 2002

Packaging Operations, DNP Technopack Kansai

Kyoto, Tanabe

Jun. 1998

Electronics Devices Operations, DNP Fine Electronics

Kamifukuoka, Kyoto, Kuki

Nov. 1994

Display Components Operations, DNP Precision Devices

Mihara, Otone

Dec. 1997

DNP LSI Design

Sapporo, Akabane, Kansai, Fukuoka

Dec. 2004

DT Fine Electronics

Kawasaki, Kitakami

Oct. 2002

Advanced Colortech

Kitakyushu

Mar. 2000

DNP Hokkaido

SapporoOct. 2000

DNP Tohoku

SendaiNov. 2000

DNP Shikoku

TokushimaJan. 2002

DNP Nishinippon

ChikugoFeb. 2000

DNP Information Systems

Sapporo, Yamagata, Tokyo, Nagoya, Osaka, Fukuyama, Fukuoka, Others Apr. 1999

DNP Facility Services

Tokyo

Aug. 2001

The Inctec

Tokyo, Kasaoka

Jun. 2003

DNP IMS America

U.S.A. (Concord)

Apr. 1997

DNP Indonesia

Indonesia (Jakarta)

May 2002

DNP Photomask Europe

Italy (Agrate)

Jan. 2005

Tien Wah Press

SingaporeMay 2002

HACCP9000 Certification Status

35-1

Departments

Factory

Obtained in:

Packaging Operations, DNP Technopack Yokohama

Yokohama

Jun. 2000

DNP Facility Services

Cafeteria at C&I Building

Mar. 2000

DNP Hoso

AkabaneMar. 2002

Management in Support of P&I Solutions

For New Value Creation

Efforts to Create a Crisis Action Plan
[Survey on Earthquake Risks]
In creating a BCP (Business Continuity Plan), DNP has developed necessary measures for business continuity
in the event of an earthquake, which is the scenario of greatest concern, by assuming the significance of earthquake of the site based on a survey on earthquake risks.
DNP promotes a survey on earthquake risks which assesses potential impacts based on the intensity andstructure of buildings and specifications of production and utility facilities, from the ground and earthquake environment of each production site across the country.
The surveys were conducted from February 2005, and separately implemented in three periods. They will bedone at 51 sites for regional inspections and completed by March 2009. By making improvements at each site
after prioritization along with the survey, we can develop management consistently prepared for earthquakes.

35-2

Management in Support of P&I Solutions

For New Value Creation

Realizing a Universal Society (1)[Packaging Design Guidelines - USE ·FULL ® Packaging -]We are continuing to pursue efforts in life-related packaging, such as foods, beverages and daily items.
“USE·FULL® ” stands for DNP’s packaging design guideline, which focuses on “gentle” designs from consumers’ view points. Having three key words; “Universal Design” (gentle for people), “Symphony of Function”(gentle for products) and “Ecology” (gentle for the environment), we put efforts into various socially conscious
packaging designs.

Packaging Design Guidelines - USE·FULL® Packaging -DNP's five criteria for Universal Design
1) Easy expression of necessary information
2) Use in simple intuitively understood ways
3) Flexible and safe when used
4) Appropriate weight and size5) Usable without excessive force or movement

Gentle for people

Basic packaging Functions
DNP's five basic environmentallyconscious rules
1) Reduce2) Reuse
3) Recycling4) Sustainability5) Reduce the effect on environment(Utilization of Life Cycle Assessment topackaging design)

35-3

Gentle for products

1) Preserve the contents
2) Provide ease of use
3) Provide information

Gentle for the environment

Management in Support of P&I Solutions

For New Value Creation

Realizing a Universal Society (2)
DNP's five criteria for Universal Design in Packaging Design Guidelines - USE·FULL® Packaging -Universal Design in Packaging

The UD Concept: Packaging that enables the comfortable use of products for as many people as possible.

DNP's Five criteria for Universal Design
Principle 1)

Easy expression for necessary information

User information, such as expiry dates and ingredients, is in simple language and is expressed withappropriate and easy-to-understand features such as color, letter size, layout, and embossing.
Examples: packages with easy-to-understand opening designs, Braille using embossing techniques, illustrations
using pictograms and other similar expressions.

Principle 2)

Use in simple intuitively understood ways

Products can be used properly without being influenced by factors such as experience, knowledge,
or visibility.
Examples: packages with openings big enough to grasp with your fingers, packages that are easy to hold, andpackages that can be distinguished by their shape.

Principle 3)

Flexible and safe when used

Offers consumers choice in use and has a safety-oriented design for users.
Examples: packages that do not easily transmit heat, packages made of materials that easy on the hands, andpackages that are easy to store.

Principle 4)External view

Sectional view

Appropriate weight and size

Products that have a certain degree of freedom in choice with a variation of size and volume forcarrying, storage, and so forth.
Examples: package sizes according to use, packages that can be repacked in to smaller portions, importancegiven to mobility by being lightweight and compact.

Principle 5)

Usable without excessive force or movement

Can be handled with minimum strength and without resorting to unnatural postures or movements
Examples: Packages that can be opened from either side, easy-to pour bottles, and products placed in easy-toremove packages.

Option 1)

Products with attractive shapes and expressions
The overall package is appealing and has pleasant designs and shapes

Option 2)

Easy to separate and discard
Products with shapes and structures that are easy to dispose of and separate for garbage collection

35-4

Management in Support of P&I Solutions

For New Value Creation

To Promote Reputable Activities with Suppliers[Requests from the DNP Group to its Suppliers]
In addition to the DNP Group CSR Procurement Criteria, a set of requests made of suppliers by the DNPGroup has also been established, so as to move our CSR activity another step forward. In addition to alreadyexisting procurement requirements, such as competitive cost, superior quality, and reliable delivery, these include the creation of a BCP (Business Continuity Plan) as part of a risk management system, contributions tosociety, the creation of a sound corporate climate, and others.
While these requests do not require the same level of compliance as the CSR Procurement Criteria, meeting them helps to achieve the goal of mutually maintaining and improving the corporate competitiveness of the
DNP Group and the suppliers.
Requests from the DNP Group to its Suppliers• Competitive Prices• Superior Quality• Safety and Stability of Products• Reliability and Speed of Delivery• Establish a Risk Management System to Deal With Disasters and Other Emergencies• Stable Management• Provide Information Promptly• Nurturing Human Resources• Create a Sound Corporate Culture• Social Contributions

37-1

Management in Support of P&I Solutions

Seeking to Increase Share Value

Share Information
Total number of shares issued: 730,480,693 shares
Shareholders at term end: 31,364 shareholders

Breakdown by size of holdings
Under 1,000 shares 0.18%
50,000 shares or more 1.72%
10,000 shares or more 2.62%
1,000 shares or more 6.04%
100,000 shares or more 13.98%
1,000,000 shares or more 75.46%

Breakdown by type of shareholder
Brokerage firms 2.18%
Own shares 4.87%
Individuals 10.53%
Other domestic corporations 12.78%
Overseas investors 34.53%
Financial institutions 35.11%

39-1

IR Activities

Corporate Citizenship

Corporate Citizenship through Design and Arts
[Seminars on Philanthropy Programs]• ggg, ddd Gallery Talk
Along with the graphic design exhibits held at the ggg Gallery in
Ginza and the ddd Gallery in Nanba, we also conduct talk showsfeaturing graphic designers and art directors among students andprofessionals. (Admission is free.)ggg: since 1995
12 times a year: A total of 152 shows• Total number of participants: approximately 11,900 persons
ddd: since 1992
10 times a year: A total of 130 shows• Total number of participants: approximately 11,270 persons• MMF Art Seminars
These are sponsored by the Maison des Musées de France (MMF)
in Ginza, which provides information about art museums and works
of art in France and sells museum goods. The lectures, the topics
of which are different each time, are held at the DNP Ginza building
and are led by museum curators, critics, and researchers.
Held since 2003: Irregular dates; total of 34 lectures up to now.
• Total number of participants: 1,531 persons• CCGA Seminars
Series of seminars by inviting experts in various areas of artwork,
i.e. the annual topic of “art in elderly age...”Held since 2005: Four times a year, total 8 times.
• Total number of participants: 439 persons

41-1

Social Contributions

Corporate Citizenship

Corporate Citizenship through Design and Arts
[Web Sites of Our Philanthropy]• DNP Gallery (ggg, ddd, CCGA, Graphic
Design Archive)

http://www.dnp.co.jp/gallery/index_e.html• Maison des Musées de France (MMF)• DNP Museum Information
Japan-artscape
DNP’s art information website, specializes
in art museum and artwork information. The
site has received high marks for its groundbreaking efforts and received the 2005
Japan Mecenat Awards, Mecenat Award for
Art Information and Culture. We also started
the international version for English speaking readers, for better understanding ofJapanese arts, in September 2006.
• Japanese version: twice per month renewal
International version: once a month renewal• Access: 1.5 million page view per month<Japanese>
http://www.dnp.co.jp/artscape<International>
http://www.dnp.co.jp/artscape/eng/

http://www.museesdefrance.org/top.html• Louvre - DNP Museum Lab

http://museumlab.jp/english/index.html

41-2

Social Contributions

For Environmental Conservation and a Sustainable Society

Use of Recycled Materials
Transition of waste emissions (1,000 tons)
800
63

600

222
400

93

Descending order
Others

200

75

72

65

63

148

142

166

180

158

144

94

97

99

100

94

97

202

195

189

185

186

182

503

65

482

59

Electronics
Lifestyle and Industrial Supplies

268

Information Communication

0

'00

'01

'02

'03

'04

'05

'06

Transition of total waste generation (1,000 tons)
180
17
120

20
Descending order

60

18

17

16

91

16

92

14

67

32

25

21

27

25

26

30

34

37

39

39

38

42

19

19

17

16

14

12

10

OthersElectronics
Lifestyle and Industrial Supplies
Information Communication

0

'00

'01

'02

'03

'04

'05

'06

Wastepaper collection/Wastepaper collection rate (tons %)
2,000

60.7

62.3

1,015

1,074

1,500
1,000

68.4

73.8

74.4

71.2

80

1,231

1,242

1,298

1,299

60
40

500

20

0
Year
Waste paper collection
Cardboard
Magazines
Newspapers
High quality paper
General waste
Waste paper collection + general waste amount
Waste paper collection rate
Number of sites

'01

'02

'03

'04

'05

'06

2001
1,015
125
740
78
72
657
1,672
60.7%
25

2002
1,074
154
770
65
86
651
1,725
62.3%
27

2003
1,231
165
930
65
71
569
1,800
68.4%
29

2004
1,242
195
906
52
88
441
1,683
73.8%
30

2005
1,298
234
953
31
80
446
1,743
74.4%
29

2006
1,299
177
1,006
34
82
526
1,826
71.2%
30

0

* Compiled from data obtained at sites where relevant information was available.

51-1

Realizing a Sustainability SocietyFor Environmental Conservation and a Sustainable Society

Use of Recycled Materials
Transition of the amount of recycled water (1,000 m3)
600,000
500,000

473,500

479,600'01'02

559,700

523,600

529,400

532,100

'03

'04

'05

'06

5,140

5,200

'05

'06

400,000
300,000
200,000
100,000
0

Transition of the amount of rainwater used (m3)
7,000

6,310

6,000
5,000

4,850

4,820

4,660

'01

'02

'03

4,000
3,000
2,000
1,000
0

Water Input-Output'04(The total amount for the DNP Group in FY 2006)

Evaporation 2,900,000m3

Wastewater 14,000,000m3
Flow of processes that use the water
recycling system 559,700,000m3

INPUT
Flow of processes that do not use the
OUTPUT
water recycling system 14,200,000m3

Water consumption
17,100,000m3

51-2

Product 200,000m3

Hokkaido Coca-Cola
Bottling and the The
Inctec use a portion of
its water consumption
amount in products.

Realizing a Sustainability SocietyFor Environmental Conservation and a Sustainable Society

Reducing Global Warming and the Climate Change Impact
Transitions of CO2 emissions and fuel use for transportation
120

12

114

Target

95

100
8.3
80

10

7.8

84

7.8

78 7.8Target

84

7.8

59

60

8

6

40

4

20

2

0

'00

'01

'02

'03

'04

Per unit CO2 emissions for transportation (ton/1 million ton, km)

57-1

7.9

75 7.9'05'06

Fuel use for transportation (Kl/1 billion yen)

For the Global Environmental and SocietyFor Environmental Conservation and a Sustainable Society

Reducing Environmental Pollutants (1)Chemical Substances subject to the PRTR Law
Substance(tons; dioxins: mg-TEQ)

HandledEmissions to Air

Emissions to Public Waters

Transferred to the Sewer System

Zinc compound (water-soluble)

3.0

0.0

0.0

3.0

Bis (2-ehtylhexyl) adipate

1.5

0.0

0.0

0.0

2-Aminoethanol

27.6

0.0

0.0

2.7

Isophorone-di-isocyanate

20.5

0.0

0.0

0.0

bisphenol A type epoxy resin

2.3

0.0

0.0

0.0

Ethyl-benzene

230.4

3.3

0.0

0.0

Ethylene glycol

1.9

0.0

0.0

0.0

Ethylene glycol monoethyl ether

18.5

0.9

0.0

0.0

Ethylene glycol monomethyl ether

53.1

1.8

0.0

0.0

Epsilon-caprolactam

20.0

0.0

0.0

0.0

Xylene

304.0

7.4

0.0

0.0

Silver and its water soluble compounds

22.4

0.0

0.0

0.1

Chromium & chromium (III) compounds

151.6

0.0

0.0

0.0

Hexavalent chromium compounds

30.1

0.0

0.0

0.0

Cobalt and its compounds

4.2

0.0

0.0

0.0

Acetic acid 2-ethoxyethyl

1.0

0.0

0.0

0.0

Inorganic cyanide compound

1.5

0.2

0.0

0.0

1,1 Dichloro-1-fluroethane

10.0

10.0

0.0

0.0

Dichloromethane

5.0

0.3

0.0

0.0

Dioxins

0.0

2.2

0.0

0.0

Water soluble copper salts

620.4

0.0

0.0

0.0

1,3,5-trimethylbenzene

6.7

0.1

0.0

0.0

19,470.8

1,093.4

0.0

0.0

169.8

0.0

0.0

0.0

2,063.4

0.0

0.0

0.0

632.3

0.0

0.0

0.0

Hydroquinone

4.1

0.0

0.0

4.1

Phenol

6.5

0.0

0.0

0.0

Di-n-butyl phthalate

1.4

0.0

0.0

0.0

Bis (2-ethylhexyl) phthalate

16.8

0.1

0.0

0.0

1,2,4-Benzenetricarboxylic acid-1,2-anhydride

10.6

0.0

0.0

0.0

Boron and its compounds

24.6

0.0

0.0

0.0

Octylphenol ether

11.7

0.0

0.0

0.1

Poly (oxyethylene) nonylphenol ether

55.6

2.0

0.0

0.0

Formaldehyde

3.3

3.3

0.0

0.0

Manganese compounds

10.6

0.0

0.0

1.3

24,017.2

1,122.8

0.0

11.3

TolueneLead and its compounds
NickelNickel compounds* Above figures include substances over 0.5t annually for special first class substances and over 1t for other substances, except dioxin, in accordance with the
PRTR Law (36 substances and 34 plants).

59-1

For the Global Environmental and SocietyFor Environmental Conservation and a Sustainable Society

Reducing Environmental Pollutants (2)Chemical Substances subject to the PRTR Law
Substance(tons; dioxins: mg-TEQ)

Transferred as Waste

Recycled

Zinc compound (water-soluble)

0.0

0.0

0.0

0.0

Bis (2-ehtylhexyl) adipate

0.3

0.0

1.3

0.0

2-Aminoethanol

25.0

0.0

0.0

0.0

Isophorone-di-isocyanate

0.0

0.0

20.5

0.0

bisphenol A type epoxy resin

0.0

0.0

2.3

0.0

Ethyl-benzene

2.2

50.1

83.7

91.1

Ethylene glycol

0.0

0.0

1.8

0.0

Ethylene glycol monoethyl ether

2.5

0.0

5.8

9.3

Ethylene glycol monomethyl ether

4.3

0.0

23.2

23.8

Epsilon-caprolactam

1.5

0.0

18.5

0.0

Xylene

5.2

57.1

95.4

139.0

Silver and its water soluble compounds

4.8

9.8

2.7

4.9

Chromium & chromium (III) compounds

44.0

79.0

28.6

0.0

Hexavalent chromium compounds

0.3

0.1

16.8

12.9

Cobalt and its compounds

1.3

1.1

1.9

0.0

Acetic acid 2-ethoxyethyl

0.2

0.0

0.9

0.0

Inorganic cyanide compound

0.6

0.0

0.0

0.7

1,1 Dichloro-1-fluroethane

0.0

0.0

0.0

0.0

Dichloromethane

0.0

0.0

0.0

4.6

Dioxins

195.4

0.0

0.0

0.0

Water soluble copper salts

170.5

337.8

110.7

1.4

1,3,5-trimethylbenzene

0.1

3.7

0.1

2.7

1,577.3

3,100.6

5,126.8

8,572.7

121.1

0.0

48.7

0.0

Nickel0.0

929.7

1,102.2

31.4

Nickel compounds

98.6

533.1

0.0

0.6

Hydroquinone

0.0

0.0

0.0

0.0

Phenol

0.0

0.0

6.4

0.1

Di-n-butyl phthalate

0.0

0.0

1.3

0.1

Bis (2-ethylhexyl) phthalate

1.6

0.0

13.4

1.7

1,2,4-Benzenetricarboxylic acid-1,2-anhydride

0.6

0.0

10.0

0.0

Boron and its compounds

16.8

0.0

7.8

0.0

Octylphenol ether

0.0

0.0

11.6

0.0

poly (oxyethylene) nonylphenol ether

3.2

0.0

2.5

47.9

Formaldehyde

0.0

0.0

0.0

0.0

Manganese compounds

2.4

1.9

4.9

0.0

2,084.4

5,104.0

6,749.8

8,944.9

TolueneLead and its compounds

Consumed Removed/Consumed* Above figures include substances over 0.5t annually for special first class substances and over 1t for other substances, except dioxin, in accordance with the
PRTR Law (36 substances and 34 plants).

59-2

For the Global Environmental and SocietyFor Environmental Conservation and a Sustainable Society

Reducing Environmental Pollutants (3)Dichloromethane emissions (tons)

SOx emissions (tons)
75

45

56.5
30

50

24.9

15

25.2

25
3.6

0

'02

'03

0.6

0.3

0.3

'04

'05

'06

22.6

20.4
17.2

0

'02

Dioxin emissions (mg-TEQ)

'03

'04

'05

'06

NOx emissions (tons)

250

853.8
214.9

800

200
150

33.9

44.5

50
'00

22.2

723.6

15.4

'02

'03

'01

'04

'04

'05

'06

10,662949

11,227
1,123
10,104

200
3.1

2.2

'05

'06

0

'02

CFC substitute emissions (tons)
40

702.1

400

100

0

626.7

600

660.3

37.5

VOC emissions (tons)
25,000

37.5
29.8

30

'03

20,00012,642
1,242

15,00018.9

2019,0682,204

10,000
10.0

10
0

5,000
'02

'03

'04

'05

'06

0

16,864

11,400

9,713

'03

'04

'05

Descending order

59-3

PRTP-listed VOC'06
PRTR-unlisted VOC

For the Global Environmental and SocietyFor Environmental Conservation and a Sustainable Society

Reducing Environmental Pollutants (4)COD emissions (tons)

49.7

50

Phosphorous emissions (tons)
52.9

53.3

54.3

1.6

41.1

40

2.0
1.5
1.1

30

1.0

20
0.5

10
0

'03

'02

'04

'05

0

'06

'02

'03

0.4

0.4

0.3

'04

'05

'06

Nitrogen emissions (tons)
28.3

30

20

21.3

20.3
14.6

14.0

'05

'06

10

0

59-4

'02

'03

'04

For the Global Environmental and SocietyFor Environmental Conservation and a Sustainable Society

Sites for Environmental Disclosure
The following consolidated manufacturing sites are subject to disclosure in this report.

Hokkaido/Higashi-ku, Sapporo

Saitama/Miyoshi, Iruma• DNP Hokkaido• Tsuruse Plant, DNP Opto-Materials

Plate-making/printing/bookbinding/manufacturing of packaging (Others*)

Manufacturing of electronic precision parts

Kiyota-ku, Sapporo(Lifestyle and Industrial Supplies)• Sapporo Plant, Hokkaido Coca-Cola Bottling

WarabiBeverage manufacturing (Others)• Warabi Plant, IPS Operations
Plate-making/printing/processing (Information Communication)

Miyagi/Miyagino-ku, Sendai

Sayama• DNP Tohoku• Sayama Plant, DNP Technopack

Plate-making/printing/bookbinding/manufacturing of packaging (Others)

Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)• DNP Cup Techno
Fukushima/Izumizaki, Nishi Shirakawa• Izumizaki Plant, DNP Technopack
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Molding and processing of various types of paper containers(Lifestyle and Industrial Supplies)• Sayama Plant, DNP IMSManufacturing of thermal transfer carbon ribbons

Tochigi/Nishikatacho, Kamitsuga• DNP Graphica
Printing/bookbinding (Information Communication)

Ibaraki/Ushiku• DNP Data Techno(Lifestyle and Industrial Supplies)*1: Through 2006.9.30, DNP Kenzai*[Others]: Group companies that manufacture products not related to the Group’s
Information Communication, Lifestyle andIndustrial Supplies, and Electronics divisions or related to several divisions.

Manufacturing of various types of Smart cards (Information Communication)

Saitama/Otone, Kita Saitama• Otone Plant, DNP Precision Devices
Manufacturing of electronic parts for displays (Electronics)

Shiraoka, Minami Saitama• Shiraoka Plant, DNP Offset
Offset printing (Information Communication)

Kawaguchi• Kawaguchi Plant, DNP Offset
Offset printing (Information Communication)

Miyoshi, Iruma• Tsuruse Plant, Ichigaya Publication Printing
Operations
Plate-making/printing plate/printing/bookbinding(Information Communication)• Tokyo Plant, DNP Lifestyle Materials*1
Plate-making/printing plate/printing/processing(Lifestyle and Industrial Supplies)

61-1

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Saitama/Fujimino

Kanagawa/Midori-ku, Yokohama• Kamifukuoka Plant, DNP Fine Electronics/DNP Precision Devices• Tokyo Plant, The Inctec

Manufacturing of electronic precision parts (Electronics)

Manufacturing of ink, varnish, pigments and dyes (Others)

Kuki

Odawara• Kuki Plant, Ichigaya Publication Printing Operations• Sagami Yoki

Printing/bookbinding (Information Communication)

Manufacturing of laminated tubes (Lifestyle and Industrial Supplies)• Kuki Plant, DNP Fine Electronics/DNP Precision Devices

Aikawa, Aiko

Manufacturing of electronic precision parts (Electronics)• Tokyo Plant, DNP Ellio
Printing and processing of metal sheets

Chiba/Kashiwa(Lifestyle and Industrial Supplies)• Kashiwa Plant, DNP Techno Polymer

Saiwai-ku, Kawasaki

Molding, processing and printing of plastic containers• DT Fine Electronics(Lifestyle and Industrial Supplies)

Manufacturing of semiconductor photomasks (Electronics)• DNP Techno Film
Manufacturing and processing of synthetic resin films

Gifu/Nakatsugawa(Lifestyle and Industrial Supplies)• DNP Technopack Tokai
Manufacturing/printing/processing of packaging

Tokyo/Shinjuku-ku(Lifestyle and Industrial Supplies)• Ichigaya Plant, Ichigaya Publication Printing Operations
Plate-making/printing plate/printing/bookbinding (Information Communication)

Aichi/Moriyama-ku, Nagoya• DNP Facility Services• DNP Tokai

Meal services, etc.

Printing/bookbinding/manufacturing of packaging (Others)• Enokicho Plant, Commercial Printing Operations
Plate-making/printing/bookbinding (Information Communication)

Kyoto/Minami-ku, Kyoto

Shinagawa-ku• Kyoto Plant, DNP Fine Electronics• DNP SP Tech

Manufacturing of electronic precision parts (Electronics)

Manufacturing of various advertising and promotional materials (Others)

Ukyo-ku, Kyoto

Kita-ku• Kyoto Plant, DNP Technopack Kansai• Akabane Plant, DNP Offset*2

Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Printing (Information Communication)

Kyotanabe• Akabane Plant, Commercial Printing Operations• Tanabe Plant, DNP Technopack Kansai

Plate-making/printing/bookbinding (Information Communication)

Printing plate/printing (Lifestyle and Industrial Supplies)• DNP Seihon
Bookbinding (Others)

Nara/Kawanishi, Shiki• DNP Logistics• DNP Data Techno Kansai

Packaging/shipping (Others)

Plate-making/printing/processing (Information Communication)• DNP Hoso
Processing of filling and packaging (Others)

Osaka/Hirakata• D.N.K• Kansai Plant, The Inctec

Printing and manufacturing of machine tools (Others)

Manufacturing of ink, varnish, pigments and dyes (Others)

Neyagawa
Kanagawa/Tsuzuki-ku, Yokohama• Neyagawa Plant, DNP Media Create Kansai• DNP Technopack Yokohama

Printing (Information Communication)

Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)• Kansai Plant, DNP Techno Polymer
Molding, processing and printing of plastic containers(Lifestyle and Industrial Supplies)• Osaka Plant, DNP Ellio
Printing and processing of metal sheets*2: Through 2006.3.31, DNP Ichigaya Publication Printing Operations

61-2(Lifestyle and Industrial Supplies)

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Hyogo/Kita-ku, Kobe
• Kobe Plant, DNP Lifestyle Materials*

Fukuoka/Yahatanishi-ku, Kitakyushu
3• Kurosaki Plant No. 1 and Plant No. 2,*4 DNP Precision Devices

Printing/processing (Lifestyle and Industrial Supplies)

Manufacturing of color filters (Electoronics)

Ono

Tobata-ku, Kitakyushu• Ono Plant, DNP Media Create Kansai• DAP Technology

Plate-making/printing/bookbinding (Information Communication)

Manufacturing of rear panels for plasma (Electoronics)

Minami-ku, Fukuoka
Okayama/Okayama• Fukuoka Plant, DNP Nishinippon• Okayama Plant, DNP IMS

Plate-making/printing/bookbinding/manufacturing of packaging (Others)

Manufacturing of dye-sublimation transfer materials

Chikugo(Lifestyle and Industrial Supplies)• Chikugo Plant, DNP Nishinippon
3• Okayama Plant, DNP Lifestyle Materials*

Plate-making/printing/bookbinding/manufacturing of packaging

Plate-making/printing plate/printing/processing(Others)(Lifestyle and Industrial Supplies)• Okayama Plant, DNP Opto-Materials
Manufacture of electronic parts, etc. (Lifestyle and Industrial Supplies)*3: Through 2006.9.30, DNP Kenzai*4: Through 2006.9.30, The Production Unit of Advanced Color Tech
was transferred.

Hiroshima/Mihara• Mihara Plant, DNP Precision Devices
Manufacturing of electronic precision parts (Electronics)

Tokushima/Tokushima• DNP Shikoku
Plate-making/printing/manufacturing of packaging (Others)

Other Domestic Consolidated Affiliates• DNP Art, DNP Total Process Ichigaya, DNP Uniprocess, and DNP Techtas Ichigaya are covered under a portion of the Ichigaya Plant, Ichigaya Publication Printing Operations• DNP Butsuryu Systems Ichigaya is covered as a division of the plants under the Ichigaya Publication Printing Operations (Ichigaya Plant,
Tsuruse Plant, Kuki Plant)• DNP Media Create and DNP Butsuryu Systems Shouin are covered as a division of the Enokicho Plant, Commercial Printing Operations• DNP Total Process Warabi and DNP Techtas Warabi are covered as a division of the Warabi Plant, IPS Operations• DNP Micro Technica is covered as a division of the Kamifukuoka Plant, DNP Fine Electronics• Of the companies treated as consolidated companies under financial accounting practice, we excluded 12 companies without manufacturing
divisions, such as DNP Trading• We established DNP IMS Odawara (in October 2006) and DNP Fine Chemical (in January 2007) for the business transferred to us from
Konica Minolta Holdings in fiscal 2007. We began compiling the data for these two companies in fiscal 2007, so as to improve our data compilation system.
• We began compiling the data for DNP Color Techno Kameyama, which was established (in September 2006) at the Sharp Kameyama Plant
No. 2 in Mie Prefecture in fiscal 2007, so as to improve our data compilation system.

Overseas Consolidated Manufacturing Affiliates• DNP IMS America (US, processing thermal transfer ribbons)• DNP Electronics America (US, manufacturing and sales of precision electronics parts)• DNP Denmark (Denmark, manufacturing and sales of precision electronics parts)• Tien Wah Press (Singapore/Malaysia, plate-making/printing/bookbinding)• DNP Indonesia (Indonesia, plate-making/printing/bookbinding, manufacturing and sales of packaging)• DNP Photomask Europe (Italia, manufacturing and sales of precision electronics parts)

61-3

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

ISO14001 Certification Acquisition (1)ISO14001 Certificates

Site

Date*

Registration Organization

Okayama Plant, Information Media Supplies Operations

Nov. 1997

JIA-QA*

Mihara Plant, Display Components Operations

Jul. 1998

DNV*

DNP Facility Services*

Apr. 2000

AJA*

Okayama Plant, Lifestyle Materials Operations

Jul. 2000

JIA-QA

Sayama Plant, DNP Technopack

Dec. 2001

DNV

Kobe Plant, Lifestyle Materials Operations

Jan. 2002

JIA-QATokyo Plant, The Inctec

Jan. 2002

JCQA*

Kansai Plant, The Inctec

Jan. 2002

JCQA

Utsunomiya Plant, The Inctec

Jan. 2002

JCQA

Ushiku Plant, IPS Operations

Mar. 2002

DNV

DNP Technopack Tokai

Mar. 2002

JCQA

Tien Wah Press (Singapore)May 2002

PSB*

Chikugo Plant, DNP Nishinippon

Jun. 2002

DNV

Kyoto Plant, Electronics Devices Operations

Jul. 2002

DNV

Sayama Plant, Information Media Supplies Operations

Oct. 2002

JIA-QADNP Media Create Kansai

Mar. 2003

JIA-QA

Kurosaki Plant No. 2, DNP Precision Devices

Jan. 2004

JCQA

Tokyo Plant, Lifestyle Materials Operations

Jan. 2004

JIA-QA

Kamifukuoka Plant, Electronics Devices Operations

Mar. 2004

AJA

Fukuoka Plant, DNP Nishinippon

Jun. 2004

DNV* Indicates the first registration date.
* DNP Facility Services acquired the certificate as part of a comprehensive management system for quality, environment, labor safety and food sanitation;
the initial registration organ was JIC-QA (JIC Quality Assurance Ltd.)* [JIA-QA]: Japan Gas Appliances Inspection Association, QA Center* [DNV]: Det Norske Veritas AS (Norway)* [AJA]: Anglo Japanese American Registrars Ltd.
* [JCQA]: Japan Chemical Quality Assurance Ltd.
* [PSB]: PSB Certification Pte Ltd. (Singapore)

61-4

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

ISO14001 Certification Acquisition (2)ISO14001 Certificates
Site

Date*

Registration Organization

Itabashi Area, DNP Logistics

Oct. 2004

AJA

Tokyo Plant, DNP Ellio

Jan. 2005

LRQA*

Osaka Plant, DNP Ellio

Jan. 2005

LRQA

Warabi Plant, IPS Operations

Mar. 2005

DNV

Nara Plant, DNP Data Techno Kansai

Jun. 2005

DNV

Tien Wah Press (Johor Bahru)

Nov. 2005

PSB

Otone Plant, Display Components Operations

Mar. 2006

DNV

Kashiwa Plant, DNP Techno Polymer

Mar. 2006

JACO*

Kansai Plant, DNP Techno Polymer

Mar. 2006

JACO

DNP Photomask Europe

Apr. 2006

CISQ*

Akabane Area, DNP Logistics

Dec. 2006

AJA

Kashiwa Plant, DNP Techno Film

Mar. 2007

DNV

Izumizaki Plant, DNP Techno Film

Mar. 2007

DNV

DNP IMS Odawara

Mar. 2007

JQA*

DT Fine Electronics*

mar. 1997

JACO* Indicates the first registration date.
* DT Fine Electronics registered as part of Toshiba Corporation (Semiconductor Company) (Kawasakishi, Kanagawa Pref.)* [LRQA]: Lloyd’s Register Quality Assurance Ltd.
* [JACO]: Japan Audit and Certification Organization for Environment and Quality* [CISQ]: Federazione Certificazione Italiana dei Sistemi Qualit Aziendali (Italy)* [JQA]: Japan Quality Assurance Organization

Eco Action 21 Certificates
Eco Action 21 Certificates

Site

Date*

Registration Organization

Tokyo Head Office, Dai Nippon Trading

Jan. 2006

IGES** IGES: The Institute for Global Environmental Strategies

61-5

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Environmental Accounting
Purpose(1) Use as an environmental management tool for the DNP Group• Environmental accounting produces a breakdown of environmental conservation costs that can be used as a reference for determining the effectiveness of environmental conservation activities.
• Environmental accounting data is used to determine the cost of individual environmental facilities, the Group’s overall budget for environmental conservation, and the amount of investment in environmental activities.
• Environmental accounting is used to monitor and evaluate the effects and achievements of activities performed throughout the year in order to ensure
continuous improvement in our environmental performance.
(2) Use as a tool for communicating with society• Environmental accounting provides the means for the public release of our environmental conservation efforts and their results.
• We use the reception concerning our environmental accounting reports as received from shareholders, clients, and local communities as a reference
for improving our approach to environmental conservation.

[Environmental Accounting Calculation Bases]
1) Period covered: April 1, 2006 through March 31, 2007 (Environmental conservation facilities are those considered as of March 31, 2007)
2) Scope of coverage: Of companies subject to our consolidated financial accounting, environmental accounting was applied to the Group’s domestic manufacturing companies (44companies), one distribution company, one in-house food catering company.
3) Monetary unit: All monetary figures are expressed in billions of yen, rounded off to the nearest million.
4) Announcement format: Used the format in the 2005 version of the Environmental Accounting Guidebook by the Ministry of the Environment.
5) Basis for the environmental conservation cost
• The environmental conservation costs include depreciation expenses for investments. Depreciation is applied in accordance with corporate tax law regulations.
• Personnel costs for full-time workers were calculated at the average labor cost per person, while personnel costs for workers holding two or more posts were calculated at 1/10 or
1/5 the average personnel cost per person, depending on the worker’s assigned duty.
• R&D costs are the total costs incurred by our 10 R&D centers in the development of environmentally conscious products and manufacturing equipment
6) Basis for environmental conservation benefits• DNP uses consumption per added-value as an indicator for the volume of resources (energy and water) spent on business activities, as well as for the volume of waste materials
and CO2 emissions.
Furthermore, the DNP Group uses the added-value total of the company concerned as an indicator of the volume of business activities, given that companies within the Group perform product transactions. The added-value amount is calculated pursuant to the “Management Analysis of Japanese Corporations” issued by the Ministry of the Economy, Tradeand Industry.
• Environmental pollutant emissions’ volume into the air for the business area costs from this period refers to the total volume of VOCs.
• The benefit related to goods produced by business activities is the benefit of the reduction of CO2 emissions when disposing of or recycling containers or packaging.
• The benefit related to the environmental impact of transportation is the benefit of reduced CO2 emissions during the transportation of products by the distribution company subject to
DNP’s consolidated accounting.
7) Bases for the calculation of the economic benefit of environmental conservation activities• The benefit corresponding to global environmental conservation and resource circulation costs are calculated respectively as saving energy costs by energy conservation and saving waste disposal costs by resource conservation.
The reduction amount is calculated as follows: ((Benchmark period unit consumption - unit consumption for the current period) x business activity amount for the current period).
• The calculation of business activities was performed using the added-value indicated in Item 6 of the above benefit calculation basis.
• For unit consumption, we used energy cost/added-value and waste disposal cost/added value.
• The benchmark period unit consumption is the gross average value for the three-year period up to and including the previous term. However, energy costs are adjusted to current
price levels in calculating unit consumption due to severe uctuations in prices.

[Results of Our Environmental Accounting]
Table (1) Environmental conservation costs (Categories corcesponding to business activities)
Investment

Category

Expense(Unit: billion yen)

Details of Major Efforts

2005

2006

2005

2006

Pollution prevention cost

0.997

0.794

2.200

3.386

Global environmental conservation cost

0.220

0.139

0.725

0.615 Switch to gas for fuel, inverter installation, insulation installation

Resource circulation costs

0.102

0.148

3.008

3.130 Increase in compressors, separation recycling, zero emissions (conversion to RPF / cement ingredients), use of recycled water(Total business area costs)

1.318

1.081

5.933

7.131

(2) Up/downstream cost

0.115

0.004 Recycling system development(3) Administration cost

2.078

2.003

(4) R&D cost

2.696

2.465 Research and development into environmentally conscious products and production methods(5) Social activities cost

0.021

0.013 Cleanup of areas outside the plant compound, support for activities of environmental conservation groups(1) Business area cost(6) Environmental remediation cost
Total

1.318

1.081

0

0.238

10.84211.854

Increase in deodorizing equipment, expansion of wastewater treatment facilities, Wastewater treatment tankinstallation

ISO14001 inspection and registration costs, environmental measurement costs, environmental report composition
costs

Environmental conservation costs to total costs ratio
Category

61-6(Unit: billion yen)

Consolidated Total Costs

Costs

Ratio

Details of Major Environmental Conservation Costs

Investment of current period

162.885

1.081

0.66% Deodorizing equipment, expansion of wastewater treatment facilities, Switch to gas for fuel, insulation installation

R&D cost of current period

30.112

2.465

8.19%

Non-PVC decorative sheets, Biomass materials, product weight reduction, materials for charging photovoltaic cells waterbased inks, etc.

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Table (2) Environmental conservation benefits
Category

Category of indicator showing
benefit

Value
2005

2006

Remarks

Difference(1) Environmental conservation benefit related to resources input into business activities• Benefit arising from supplied resources

Total energy
input volume

Input volume
of water

Energy consumption (TJ)

20,10021,3101,210

All consumed energy was converted into
average value in calories

Added-value unit consumption for
the above (TJ/1 billion yen)

0.423

0.437

0.014

Energy increased by 0.014TJ per 1 billion yen
in added value

Water usage (in thousands of tons)

15,65317,0891,436

Water supply, industrial water, and well water

Added-value unit consumption for
the above (1,000 tons/1 billion yen)

0.318

0.351

0.033

Water increased by 33m3 per 1 billion yen

2,734

2,732

-2

Total weight of paper, plastic, ink and metals

12.9

12.6

-0.3

Ratio of unwanted materials that are main raw
materials

Supplied amount (in thousands of
Input volume oftons)main raw materials(paper, plastic,
Amount of undesired materials
metal, etc.)
generated/supplied (%)• Environmental conservation benefit related to waste or environmental impact originating from business activities

Emissions to
the air

Water quality

Water emission
volumeVolume of green
gas emission

61-7

SOx emissions (tons)

20.4

17.2

-3.2

Calculated from supplied energy

NOx emissions (tons)

723.6

853.8

130.2

Calculated from supplied energy

Environmental pollutant emissions
volume(VOC emissions volume) (tons)

10,662

11,227565

Including 12 substances covered by the PRTR
report

COD discharge (tons)

53.3

53.4

0.1

Calculated from the amount of discharged
water and average concentration

Emissions of environmental
pollutants(354 PRTR substances) (tons)

0.0

0.0

0.0

4 substances discharged in 2005

Generated undesired materials(1,000 tons)

502.7

481.6

-21.1

Including undesired materials other than main
raw materials

Discharged waste (1,000 tons)

91.1

92.3

1.2

Total waste subcontracted to waste disposal
companies

Added-value unit consumption for
the above(ton/1 million yen)

0.185

0.189

0.004

Waste emissions per added-value increased

Recycle rate (%)

98.5

98.9

0.4

Not achieved for waste plastics (4.4%) andglasses (76.1%)

Emissions of environmental
pollutants(354 PRTR substances) (tons)

2,261

2,084

-177

Total for 25 substances reported

Emissions of greenhouse gasses(1,000 t-CO2)

973

1,123

150

Total GHG including emissions by incineratorsand drying furnaces

Added-value unit consumption for
the above (ton-CO2/1 billion yen)

18.8

21.3

2.5

Increased 2.5 tons of emissions per 1 billion
yen added-value

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Table (2) Environmental conservation benefits
Category

Category of indicator showing
benefit

Value
2005

2006

Difference

Remarks(2) Environmental conservation benefit related goods and services produced from business activities• Benefit related to goods produced by business activities
386.0

361.4

-24.6

Emitted at incineration and recycling of used
containers and packaging

1.38

1.25

-0.13

Reduction of CO2 emissions of 0.13t per 1t of
product

CO2 emissions during thetransportation of products (tons)

4,481

4,144

-337

7.5% reduction of CO2 emissions

CO2 emissions during thetransportation / (weight x distance)(tons/million tons·km)

59.0

84.2

25.2

CO2 emissions increased by 25.2 tons for eachton of goods transported 1 million ton-km

CO2 emissions (1,000 t-CO2)

CO2 emissions after
product shipment CO emissions / volume of products
2(t-CO2/t)(3) Other environmental conservation benefit• Benefit related to the environmental impact of transportation

Table (3) Economic Benefits of Environmental Conservation Activities
Economical benefits of environmental conservation activities(Unit: billion yen)AmountRemarks

2005

2006

Difference

256.639265.807

9.168

Sales up 3.6% over 2005

0.938

Increased along with rising metal prices(1) Increased sales• Economic benefit of R&D costs
Sales of environmentally conscious
products(2) Increased income• Benefit of resource recycling costs income from recycling undesired materials
income from recycling undesired
materials

2.148

3.086

(3) Cost saving• Benefit corresponding to global environmental conservation and resource circulation costs

61-8

Saving energy costs by energy
conservation-0.590-1.684-1.094

Increased energy consumption per added-value

Saving disposal processing cost by
resource conservation

0.335

0.270

-0.065

Improvement per unit due to reduction ofemissions

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society[Evaluation of 2006 Environmental Accounting Performance Data]
Environmental conservation cost and environmental conservation activities
1) Investment in environmental facilities decreased by 0.237 billion yen (18%) over the previous year. While
there was an increase in wastewater treatment facilities, such as water purification tanks, this represents
a decrease over the previous year because of stepped down VOC measures (catalytic incinerator andsolvent collection equipment).
2) Business area costs increased in comparison to the previous year, but this was mainly due to increased
investment in plant facilities (Kurosaki Plant No. 2).

Environmental conservation benefit
1) An approximately 0.42 billion investment (0.76 billion yen the previous year) in solvent collection andelimination facilities was made in 2006, and emissions of VOCs were reduced by 565 tons.
2) SOx emissions were reduced due to the fuel use reduction resulting from the warm winter. NOx emissions increased because of an increase in plant facilities using steam (Kurosaki Plant No. 2).
3) A decrease in unit orders, mainly at the Electronics Division, caused reduced added value, resulting in aworsening in specific consumption from output since the previous fiscal year.

Economic benefit of environmental conservation measures
1) Sales of environmentally-conscious products increased by 3.6% in comparison with the previous year, so
we were unable to achieve the targeted 10% increase.
2) Income from the recycling of undesired materials increased by 0.938 billion yen in comparison with theprevious year, due to market recovery and better separation and collection.
3) The cost reduction benefit is calculated according to "Environmental Accounting Calculation Bases" (61-6(7)). An economic benefit of 0.270 billion yen was gained through improved resource conservation fromthe better rate of undesired materials output achieved through “Manufacturing 21”, and also from advances in adding value through the separation and collection, as well as the recycling, of undesired materials.
At the same time, we expanded the Electronics Division, which uses a large volume of energy, so no
economic benefit was seen in relation to energy conservation.

Issues Henceforth
1) Make further improvements in eco-efficiency through “Manufacturing 21” activity and eliminate all wastefrom production processes.
2) Continue fuel conversions (fuel oil gas, LPG natural gas) so as to improve per unit greenhouse gas emissions.

61-9

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Environmental Education
No. in attendancein 2006 (Total
Participants)

All new
recruits

When joining
the company

537persons(4,210 persons)

1999

Technicians

At irregularintervals

71persons(385 person)

Environmental
Issues andBusiness(required)

Environmental information
to be used when presenting
customers with proposals
concerning environmentoriented businesses

2000

Employeeswith morethan 2 years
experiencein the sales
and planning
divisions

Employees
can decide forthemselves

2,645 persons(11,482 persons)(Optional)

Beginners class on ISO 14001
and LCA

Programscheduledevery year

All employees
of DNP Group

Semiannual

Environmental
Issues of
the Group(required)

Domestic & international
trends in environmental issues,
revisions in environmental
laws, degree of achievementof environmental targets, newtargets, issues concerning
specific sites

1993

Site members
and factoryrelated
personnel ofthe operations'group
environmental
committee

Twice a year
upon issuingthe Eco-Report

Course Name

Description

Education for
New Recruits

Environmental
Activity
Overall(required)

Basic environmental knowledge
and conservation efforts of the
DNP Group

1994

Technical
SeminarEnvironment(optional)

Environmental laws andregulations

Network
Leaning

Correspondence Course

Eco-report
Training

61-10

Time of year

Type of Training

Held inEligibility

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Achievements in Environmental Issues
1972

Establishes the Environment Department within thehead office to promote pollution prevention measuresand communication with local residents

1990

Makes new efforts to deal with global environmental
issues by establishing the Eco-Plan Promotion Officewithin the Environment Department

1992

Establishes the DNP Group Corporate Pledge andCode of Conduct for DNP Group Employees

1992

Establishes the Eco-Plan Promotion Targets, thefundamental voluntary plan based on the Environmental Declaration of the Codes of Conduct, and starts
activities by 4 sub-committees

1993

Starts the Eco-Report System, which is part of the
DNP Group environmental management system

1994

Remodels and expands the Environment Department
into the Environment & Product Liability Department tostrengthen our efforts towards environmental issues,
including taking responsibility for the disposal of
products we produce

1995

DNP wins the International Trade and Industry
Minister’s Prize in the "Fourth Global Environmental
Awards", which commend companies and groups that
contribute to the conservation of the global environment. (The Awards were established in 1991 by theJapan Industrial Journal and the Fuji Sankei Communications Group, with special support by WWF Japanand sponsorship by the Ministry of the Environment,
the Ministry of the Economy, Trade and Industry, andthe Japan Federation of Economic Organizations.)

1996

Begins performing the Eco-Audit, the internal environmental audit performed by the Eco-Plan Promotion
Office to upgrade the Eco-Report System

1997

Okayama Plant, Information Media Supplies Operations becomes the first in the printing industry toacquire ISO 14001 certification

1998

Mihara Plant, Display Components Operationsacquires ISO 14001 certification
Publish the DNP Group Environmental Activity Report

2000

The Eco-Plan Promotion Office is dismantled andreplaced with DNP Environmental Committee tostrengthen the system for promoting environmental
activities
The affiliate DNP Facility Services becomes the first in
the world to be certified as a comprehensive systemwith quality, environment, office safety and HACCP
Okayama Plant, Decorative Interiors Operationsacquires ISO 14001 certification

2001

DNP Tokai, and Sayama Plant, DNP Technopack acquires ISO 14001 certification

61-11

2002

DNP Tokai acquires FSC-CoC certification
Acquisition of ISO 14001 certification by: Kobe Plant,
Decorative Interiors Operations, The Inctec (Tokyo, Kansai, and Utsunomiya Plants), Ushiku Plant,
BF Operations, DNP Technopack Tokai, Tien Wah
Press, Chikugo Plant, DNP Nishinippon, Kyoto Plant,
Electronics Devices Operations, Sayama Plant, Information Media Supplies Operations

2003

Environmental Report Division receives the "6th Environmental Report Grand Prize" for superior reporting
Acquisition of ISO 14001 certification by: Ono Plant,
DNP Media Create Kansai, Advanced Colortech,
Tokyo Plant, Decorative Interiors Operations, Kamifukuoka Plant, Electronics Devices Operations
Commercial Printing Operations, DNP Media Create
Kansai, DNP Trading acquire FSC-CoC certification,
while Packaging Operations acquires PEFC-CoC certification.
Two types of fused thermal transfer materials of theInformation Media Supplies Operations receive EPD"Type III" environmental labeling certification and registration.

2004

The "14th Global Environment Grand Prize" awarded
by the Minister for the Environment
The "7th Environmental Report Prize" awarded for Excellence
Fukuoka Plant, DNP Nishinippon, DNP Logistics, DNP
Erio (Tokyo and Osaka Plants), Warabi Plant, BF Operations acquire ISO14001.
Eco-Report System implemented at overseas sites.

2005"8th Environmental Report Prize / Sustainability Report Prize” awarded for Excellence
DNP Data Techno Kansai, Johore Bahru Plants, Tien
Wah Press, Otone Plants, Display Products Operations, DNP Techno Polymer (Kashiwa and Kansai
Plants) acquire ISO14001.
Ichigaya Publication Printing Operations, DNP Tohoku,
Yokohama Plant, Packaging Operations acquire FSCCoC certification, and DNP Tokai acquires PEFC-CoC
certification.

2006

DNP Photomask Europe, Akabane Area, DNP Logistics, DNP’ Techno Film (Kashiwa Plant and Izumisaki
Plant), DNP IMS Odawara acquire the certification of
ISO14001.

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

DNP's Own Environmental Management System (1)Step in Eco-Audit and Contents
Preparation and notificationof annual plan

<Eco-Audit Contents>
Compliance Audit

Auditing teamPromoted by Head Office

Lead Auditor

Formation of auditing team

Auditor

Auditor
Adjustment of auditing schedule

Auditing team, Sites subject to audit

Auditor Qualification

Eco-Audit Notification Lead Auditor

Preparation of audit notification

Person designated or selected from auditors
by the Head Office Promotions Office Manager

Auditing team, Sites subject to audit

Notification to sites ofimpending audit

Auditors(1monthinadvance)

Persons having qualification who completed
special training course.
Other persons recognized as being suitableby the Promotions Office Manager

Performance of eco-audit

Auditing team

Auditor's pre-audit meeting

Allocation of roles, briefing on the site environment, confirmationof deficiency notices in the previous audit

Confirmation of applicable standards, scope of audit,
auditor assignment, types of deficiency notifications,warnings during the audit, confirmation of documentation

Open Meeting(1) Compliance audit (Air, water, sewer, noise, vibration,odors, qualified personnel, energy conservation, waste)(2) Operations audit(Reduction of waste, global warming prevention,
reduction of chemical substances)Document Checking

Record of correction
and measures
performed sheetsfrom previous audit

Auditor's Meeting

Preparation of Audit Report and Requests for Improvement Measures

Closing Meeting

Description of audit results and content of requests for improvements

Audit Report and Requests for
Improvement Measures

Completion of Eco-Audit

Correction Measures
Performed sheet(2) On-site Inspections• Site location and relationship withsurrounding sites• Conformity to statutory facility
document audit(type, number, scale, etc.)• State of management of individual
facilities and equipment, existenceof abnormalities• Emergency containment in case ofabnormality or emergency• Site picture taking• Appropriateness of actual work
performed

Operations Audit

Consistency of documents, state of management ofrelated facilities, site conditions

Site Confirmation

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DNP Group
Eco-Audit checklist(1) Document Audit• Site location• Type and number of statutory
facilities• Types of waste• Energy Consumption• Exhaust and wastewater channels• Changes in facilities, production
processes since the last audit• Applicable laws
• State of improvement of
notifications of deficiencies inprevious audit• State of submission of statutory
notifications, reports, and changes• Frequency of measurement, validityof measured data, traceability of clata• Changes in management personnel
due to internal transfers

Acceptance of Audit Reportand Requests for
Improvement Measures

Audited site manager

Preparation of Correction
Measures Performed sheet

Audited site

Approval

Audited Site Promotions Office Manager

Approval

Audited Site Environmental Committee Chair

Approval

Auditing Team Chief Auditor

Approval

Head Office Promotions Office Manager

Approval

Head Office Environmental Committee Chair(1) Confirmation of validity ofsite policy and established targets• Performance in the previous term
• Consistency with DNP Group policy
Continuity of performance inprevious term
• Validity of established targets(2) Confirmation of the validity of
implementation programs• Consistency between targets andprograms• Effectiveness of the programs• Possibilities of the programs• Possibilities of fulfillment of the
programs• Promotion system and schedule(3) Confirmation of achievementof implementation items,
performance and targets• Records of activities performed• State of progression of the programs• Effects of the programs
performance of indicator• Achievement of targets

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

DNP's Own Environmental Management System (2)[Eco-Audits]• Features of Eco-Audits
The DNP Group has been conducting eco-audits for environmental issues in the company since 1996. The
promotional office at company headquarters plans, selects a team of auditors, carries out the plans, andperforms the appropriate verification on the corrective action response papers. The chair of the Environment
Committee at headquarters then approves the results of the audit and the corrective action response papers.
Feature (1)By bringing together the expertise inherent in the products and manufacturing processes and the independence of the sites, the auditors are able to obtain significant and objective results from their auditing.
Feature (2)In the Eco-Audit we place importance on in on-site confirmation of actual items. In addition, we point out factors for which danger is projected and request preventive action when needed.
Feature (3)In addition to confirmation on compliance, we confirm the status of continuous improvements and corrections being made towards the achievement of the environmental targets. When necessary, we require
audited sites to review plans (Compliance audit and operations audit).

Features Regarding the Expertise and Independence of Eco-Audits

Type of Audit

Expertise of auditors regarding products andmanufacturing processes

Independence of auditors (sites)

Eco-Audit

ISO14001 External Audit
ISO14001 Internal Audit(We promote ISO14001 certificates for each site.)

Types of Notifications and Corrections Issued in the Eco-Audit

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Types of Notifications

Improvement required

Improvement required

Submission of a written description of correction measures performed or improvement plans

Improvement consideration & examination

Submission as necessary of a written description of results of consideration/examination or
improvement plans

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Environmental Risk Management[Legal compliance situation]
While we make all efforts to comply with environmental laws and regulations, over the past three years we haveexperienced 5 incidents of water quality abnormalities in wastewater, 1 case of inadequacy of qualified personnel, and 1 case of odor in excess of standards.
There are no ongoing legal disputes involving environmental issues. We have unfortunately had some complaints from areas neighboring our plants concerning noise and odors.
Whenever we receive such complaints, we launch a thorough investigation into the cause of the problem andwork to make improvements to prevent a recurrence.
August 24, 2004/Ushiku Plant
An accident occurred when the BOD and COD value of the final discharged water was above the standard criterion. It was caused by a good quantity of isoprophy alcohol and anon used for printing in the air conditioning
drains in the plants. We exchanged the pipes to clear the drainage in the drains which completed our measuresagainst reoccurrence.
July 27, 2005/Ushiku Plant
An inspection plate cover accidentally came off of a wastewater pipe, discharging wastewater, but the wastewater gate was immediately closed and the wastewater pumped out. Although the wastewater contained no
toxins, about 500 liters escaped into public water, so we filed an accident report with the authorities. Wechanged the method for fastening the inspection plate cover under the guidance of the authorities.
February 9, 2006/Ushiku Plant
An on-site inspection by the public authorities revealed that the BOD and COD values of the plant's final effluent were in excess of the standard. The cause of this turned out to be an excess volume of injections of methanol used in testing to improve sludge processing ability. Under the guidance of the authorities we took measures to prevent recurrence by installing a control system that adjusts the amount of methanol injected basedon the wastewater throughput burden.
February 24, 2006/Tanabe Plant
Despite being a Type 1 Designated Electricity Management Plant, an Energy Manager had not yet been appointed. Therefore, the authorities issued a warning upon conducting an on-site inspection.
We reported the appointment of an Energy Manager the following March, which was acknowledged by theauthorities.
October 17, 2006/Tanabe Plant
An onsite inspection by the authorities revealed that the BOD value for water discharged into the sewer wasabove the standard. The cause was the inadvertent discharge of dampening water (containing alcohol) usedcyclically in the planographic printing process into the sewer instead of the collection tank. We took steps toprevent recurrence by thoroughly re-training the workers handling the changing of the dampening water, andfastening an operating bulb that cannot be opened up easily.

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Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Environmental Risk Management[Legal compliance situation]
February 14, 2007/Izumisaki Plant
An onsite inspection by the authorities revealed that the BOD value for water finally discharged into the sewer
was above the standard. Further measurement was conducted but no abnormal values were noted. The authorities ordered us to continue to look into the cause of the initial excess BOD measurement so as to prevent
recurrence.
February 26, 2007/Ichigaya Plant
An onsite inspection by the authorities of odor levels of revealed that emission concentrations from offsetting
rotary presses at two locations were above the standard. The cause was fissures that developed in the deodorization equipment due to heat exhaustion, or possibly that the deodorizing medium had degraded. The fissures
were repaired, and the medium replaced. We revised the inspection criteria for the deodorization equipment forearly detection of abnormalities, so as to prevent recurrence.

63-4

Our Environmental Management Foundation

For Environmental Conservation and a Sustainable Society

Current Status of Environmental Impact
Trends in Eco-Efficiency

12

11.3

110

120
105

9.5

10

100
7.5

8

80
5.6

6

60

62
4.5

48

4

4.6
40

39
2

0

Eco-Efficiency (Output/EIP)

Eco-Points (1 billion EIP)

85

20

'01

'02

'03

'04

'05
EIP

'06

0

Eco-Efficiency

The DNP Group evaluates eco-efficiency using JEPIX*. The FY2006 eco-efficiency has dropped off by increasing pollutants such as emissions of VOCs (volatile organic chemicals), greenhouse gases and landfill
wastes, compared with previous year.
*[JEPIX]: Environmental Policy Priorities Index for Japan is a single index environmental evaluation system developed in Japan, which calculates the degree of overall environmental impact according to a single numeric value expressed as Eco-Points. The JEPIX Forum for the application of the JEPIX
methodology was held as part of the Ministry of Education, Culture, Sports, Science and Technology’s COE Project (International Christian University),
and our company participated in the project.

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Our Environmental Management Foundation