DNP Group Sustainability Briefing FY2023

October 30, 2023
Dai Nippon Printing, Co., Ltd.
Ⓒ2023 Dai Nippon Printing Co., Ltd. All Rights Reserved.

Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital

Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto2

Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital

Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto3

Concepts and Policies behind DNP’s Sustainable Management

Brand Statement

Creating future standards
The DNP Group will strive to realize a sustainable, better
society and well-being lives by connecting individuals andsociety and creating new value.
4Concepts and Policies behind DNP’s Sustainable Management
The DNP Group will strive to realize a sustainable, better society and well-being lives
by connecting individuals and society and creating new value.

Healthy societies and economies, andcomfortable, prosperous lives areachieved through a sustainable planet.

With the environment, society, and theeconomy undergoing rapid changes inrecent years, we will create value thatmitigates the negative aspects ofvarious risks while amplifying theirpositive impacts, in order to enhance
the sustainability of the environment,
society, and the economy.

From DNP Group Integrated Report 2023 p.12

5

A “better future” aimed for by DNP
Reinforcing the business base with the aim of realizing sustainability is part of our initiatives to increase
corporate value. The Group will take a long-term view to conducting business activities that create a better future.
Risks & business opportunities/
Input/Management resources

DNP’s value creation/business strategy/business modelSocial issues that will
be solved by DNPBusiness model

Economicrisk

The “better future” aimed for DNP

Creating future standards
A society where people canlive safe, secure, healthy andwell-being lives

Socialrisk
Environmental
risk

INPUT (management
resources)

An information society thatconnects real and digital

A society that realizes abalance between economic
growth and the global
environment

A society where people
mutually respect each other

From DNP Group Integrated Report 2023 p.14-15

6

Sustainability Briefing
In response to the expectations of investors, DNP will evolve the sustainability
briefings into a place for dialogue on medium-to long-term direction.

2021 ESG Briefing

Introduction to DNP’s
overall ESG approach/individual themes

2022 Sustainability Briefing

Introducing DNP’s sustainability
activities focusing on selected
themes2023 Sustainability Briefing

Incorporating the core non-financial
capital elements of DNP’ssustainability into the Medium-termManagement Plan and making them
part of strategy

7Medium- to long-term direction
Incorporating the core non-financial capital elements of DNP’s sustainability into theMedium-term Management Plan and making them part of strategy

Reinforcing
human capital

Enhancingintellectual
capitalEnvironmental
initiatives

From DNP Group Integrated Report 2023 p.9

By implementing the above initiatives and also expanding disclosure especially on
focus business areas, we will expedite achieving a PBR of more than 1.0X.

8

Reinforcing the business base
By reinforcing the business base, which is one of the most important management themes, we will support the creation of value.

Human capitalIntellectual capital

DNP version of “compensation and related policies thatare more closely founded on a job-oriented perspective”
Implementation completed

R&D investment
Continue at a scale of 30 billion yen per year
Number of users of data management
infrastructure
3,678→Approx. 6,000 (FY2022→FY2025）

Development and level of engagement with DVO system
100% by end of FY2025
Engagement survey score
Up 10% (FY2022 → end of FY2025)
DX literacy standard basic education
Completion of course by 27,500 people targeted
Percentage of female managers
8.4% → 12% or higher (FY2022→F2025）
Percentage of males taking childcare leave
83.6% →100% (FY2022→FY2025）

Environmental
Reduction of GHG emissions
Early achievement of initial plan of 40% reduction
by 2030 compared to FY2015
Resource recycling percentage
51.7%→56.7% (FY2015→FY2025）
Reduction of water usage
35% (FY2015→FY2025)
Guidelines for Procurement of Paper for Printing
and Converting
Percentage of items compliant: 100% by end of
FY20309

Reinforcing the business base
By reinforcing the business base, which is one of the most important management themes, we will support the creation of value.

A “better future” aimed for by DNPInformation
infrastructure thatconnects real and digital

Value creation

Reinforcing
human capital
Enhancingintellectual
capitalEnvironmental
initiatives

A society where people canlive safe, secure, healthy
and well-being lives

A society that realizes abalance between economic
growth and the global
environment

A society where people
mutually respect each
other

Support for career autonomy of employees and strengthening of organizational capability; hiring, personnel assignment, and reskilling based on human resource
portfolio
Health and productivity
management that increases thehappiness of employees

Promotion of D&I utilizing
diverse individuality

Creation of new businesses and strengthening; global rollout of technological strengths; strengthening of stablebusinesses and cultural reform
Realization of data management
infrastructure

Building a decarbonized,
recycling-oriented society,that is in harmony withnatureEnhance corporate governance to implement the BasicManagement Policy

10Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto

11

Reinforcing Human Capital
Dramatically increase “human creativity (added value productivity)” globally,based on the Human
Capital Policy to clearly connect investment in people to the enhancement of corporate value.
Human Capital Policy
The company respects its employees, and these respected employees drive the growth of the company
as well as enriching society.

[Nurturing human capitals who can be active in society(both within and outside DNP)]
SocietyGrounded in the Human Capital Policy

Human Capital Policy

Previously announced
people-related
policies, visions, anddeclarations, etc.

Company

Respect
employees
Respected
employees enrichsociety

Respected employees drive
the growth of the company

Employees

Integrated and strategic
initiatives to strengthen
human capital・Fostering of a better organizational culture
・Accelerate investments in people aimed at contributing to
the development of diverse human resources

Opens the way to further
improvements in corporate value

12Reinforcing Human Capital
The link between reinforcing human capital and enhancing corporate value
Material
issues

Initiatives

Specific measures

Direct effects andimpact on theinternal
environment

Financial and corporate value

1

2

3

4

From DNP Group Integrated Report 2023 p.44-45

13

1 Support for career autonomy of employees and strengthening of organizational capability
Implementation of a DNP version of “compensation and related policies that are more closely founded on a job-oriented perspective”

Policies for unique hybrid personnel system that combines the merits ofmembership-based and job-based systems for autonomous career development
Promotion of multi-track career and job grade systems that allow independent selectionof management or specialist roles

Visualization of careergoals and required skills
by job group= Career autonomy
supportFrom DNP Group Integrated Report 2023 p.46

14

2 Health and productivity management that increases the happiness of employees
Management reform based on DNP Group Declaration on Health
Promotion of the DVO (DNP Value Objectives) Penetration Program, which wasintroduced as part of management reforms, to achieve full integration of DVO
throughout the company and establish a new management style[DVO Penetration Program (adherence and penetration of the system)][Overall picture/management process]

Check-in Check-out
Meeting1-on-1
meetings・Objectives set on quarterly (3-monthly) basis
・Progress checked weekly (CICO meetings)
・Monthly 1-on-1 meetings implemented

Set team
objectives
Finalconfirmation

manager of division

AP objective-setting session
1st layer implemented

Generalmanager of
departmentHead ofsectionMember

Set team
objectives
Confirm details
Scrutiny
Align objectives

AP objective-setting session
2nd layer implemented

Team objective-setting
session implemented＋
AP objective-sharing
sessionBottom-up process

1-on-1
meetings

Generalmanager ofdivisionTop-down process

Monthly(supervisors/
workers)

1-on-1
meetings

Policies/objectives
announced by general

Deplo
yment
withindivision&kickoff

Implementation phase

Third
month

Value creation

Secondmonth

Implemented in around 1 monthManagement
reformThematic meetings(team)

DNP Value Objectives DVO system-

First
month

Foster team awareness/visualize results and processes/support
for autonomous careers

Quarter (three months)

3rd layer implemented15

2 Health and productivity management that increases the happiness of employees
Management reform based on DNP Group Declaration on HealthWhite departments (health): 10 departments received awards

Green departments (safety): 10 departments received
awardsHealth and Wellbeing Awards launched in FY2023 to assess elements other than business profitability.
These honor outstanding initiatives aimed at the building of a vibrant workplace culture and the strengtheningof organizational and team capabilities that are the basis of value creation.
A total of more than 1,000 volunteer judges voted to choose the award winners from among the 130 or so entries. 16

3 Hiring, personnel assignment and reskilling based on human resource portfolio
Implementation of personnel assignment to focus business areas and reskilling

Internal human resources
Expansion of professional track system

Fellow
Chief
Specialist
Principal
Specialist

External human resources
Acquiring high-level experts through external recruitment

Professional staff
As part of “compensation and related policies that are moreclosely founded on a job-oriented perspective,” multi-track
careers are positioned separately from management, and theoperation of the “professional track” system is being expanded
as a mechanism to enable personnel with expertise in specificfields, areas, or technologies (beginning with focus businesses)
to maintain and enhance their expertise.

Promoting development of DX personnel

Professional staff
System for using individual employment contracts to recruit
individuals with exceptionally advanced knowledge and skills
in a specific area of expertise
Associate staff
System for recruiting external candidates with compensation
set slightly higher to reflect market value
Actual recruitment of expert personnel
From DNP Group Integrated Report 2023 p.47

・Seek the acquisition of knowledge and skills based on the DX literacy standard in order to ensure that by the endof FY2025 all 27,500 people targeted have finished the DX literacy standard basic education, and that employees inall roles are DX foundational personnel.
・Select DX promotional personnel as personnel to fulfill the specialized role of promoting DX in all business areas,and develop their abilities to a high level based on the DX promotion skill standard.

Reassignment of personnel to focus business areas and reskilling・Reassignment of personnel to manufacturing departments within growth-driving businesses after reskilling・Strengthen DX reskilling training to facilitate job changes

Associate staff

FY 2020
FY 2021
FY 2022

Use of external professionals
External personnel
in side jobs

(persons)

Take on experts from outside the company toperform side jobs for a limited period174 Promotion of D&I utilizing diverse individuality
Cultivation of a corporate culture that allows diverse people to shine
In terms of outcomes up to the end of FY2022, in order to enhance diversity in decisionmaking we are accelerating the increase in the percentage of female managers, andbuilding mechanisms to form a pipeline.
The target is to increase the percentage of female managers from 8.4% in FY2022 to 12%
by the end of FY2025.
From DNP Group Integrated Report 2023 p.49
General Manager of Department/Chief Specialist or
higher・Training to develop nextgeneration of executive leaders
Sponsorship program

Management

Head of
Section/Principal
Specialist

Leader class
Leadership

Generalemployees<Illustration of number of female
employees by grade>

Corporate Officers and Deputy General Managers ofDepartment act as sponsors

・Process of recruitment to managerial
positions (basic management training)
Practical leadership training

12％

D&I Promotion Leader (General Manager of Division) acts asmentor・Career design training (“Challenge”
level)<Initiatives for each level>

18

Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto

19

What are DNP’s unique strengths?
[DNP’s intellectual capital]

Creating value by anticipating changes in the world outside and in markets through its strengths
in P&I (printing and information)

Basic printing
processes
Intellectual
capital basedon printing
technologies

Feedback
Project
planning

Text/Information
processing

Information
processing

Fonts/media
conversion/image processing
and recognition/data
analysis/information security

FilmmakingPlate
makingMicrofabrication

Molding/etching/precisionengraving/photolithography/holograms

Printing

Bookbinding andpost-processing

Precision
coating

Postprocessing

Product delivery/
Effectiveness assessment

Bookbinding/aseptic
filling/plastic
molding/transfer
processing/laminating

Coating/printing/EB andUV curing/vacuum film
deposition

P&I

Printing &Information

Value provided by DNP
Nanoimprinting

Manufacture of objects and materials
Improvement ofexperiential value

Analog and digital/Real and virtual

Environmental
awareness
Style and functionality

Remote services

Smartfunctionality

Increasing display value
Cathode-ray tubes → liquid crystal →organic EL

Minimizing foodloss
Ultra-longpreservation

Wellbeing

DNP’s unique hybrid digital transformation (DX)

Sterilization

Solving energy problems

Shift toEVs

Next-generation mobility

20What intellectual capital strategies are being implemented during the period of theMedium-term Management Plan?
[Basic strategy for
Combining strengths in P&I and collaboration with partners to bolster our business portfolio
enhancing intellectual capital] from the perspective of intellectual capital

1

2

3

4
From DNP Group Integrated Report 2023 p.50

21

1 What are the combined strengths of ALL DNP?
[Development framework] By combining our “P&I” strengths, we aim for intensive promotion of new business themes thatrealize a better future

Each business unit promotes short-term development in various fields.
Head office R&D department promotes medium- to long-term research and development,
which includes new business areas.
In 2021 we established the Research and Business Development Centerand integrated “seeds development” and “business development”
functions.

We are also promoting collaboration with external partners to create new value,such as the development with Microwave Chemical Co., Ltd. of a transparent
conductive film that balances a high level of transparency and conductivity.

Research and development expenditures (consolidated)
Investments in FY2022 continued at the 30 billion yen level
Fiscal year ended March 2023: 32.4 billion yen
Head office development department: About 20.2 billion yen
Business segment total: About 12.2 billion yen
From DNP Group Integrated Report 2023 p.53

22

2 Enhancing intellectual capital: investments in growth-driving businesses[Growth-driving businesses] Concentrate investments in focus business areas and promote business structure transformation
to build a strong business portfolio

3 casestudies23

3

Refinement and acceleration of global rollout of DNP’s unique technology and products[Battery pouches]

Highly rated by the battery industry as the standard for battery pouches

Bolster competitiveness by combining
the coating and lamination technologies
honed in packaging materials for
products such as food andpharmaceuticals as well as an
exhaustive range of patent applications,self-designed materials, and internallydeveloped production facilities
Structure of a lithium-ion battery towhich a battery pouch is applied

Highly rated by the battery industry as the standard forbattery pouches

Tab

Laminated
electrodeBattery pouch(exterior material)

Aiming for sales of 100 billion yen by 2025 forlithium-ion battery pouch business as a whole24

3 What investments for growth are we making to maintain our top global share?
[Battery pouches]

Installation of new slit processing line in Denmark Plant
Construction of manufacturing plant under consideration in US

Business strategy/investment plan
・Expand production capacity to meet EV demand in FY2023 and beyond
・Promote supply to appropriate regions such as Europe and the United States,with installation of post-process line in Europe (Denmark Plant), operation ofwhich is scheduled to start in FY2023

25

3

Refinement and acceleration of global rollout of DNP’s unique technology and products[Metal masks] Boost production capacity to meet rising demand caused by shift to larger organic EL displays
Achieved top share globally, primarily in smartphones, by leveraging
proprietary photolithography and etching technologies.
We also possess a wide range of materials, manufacturing methods,
and product-related patents and know-how. We are rated highly for ouroutstanding technology development capabilities, as well as for ourability to provide stable supply of high-quality, high precision products

Installation of new large metalmask production line at Kurosaki
Plant (Fukuoka Prefecture)

Schematic depiction of vapor deposition process
External view of Kurosaki Plant(Kitakyushu City, Fukuoka
Prefecture)26

3

Refinement and acceleration of global rollout of DNP’s unique technology and products[Optical film] Increase manufacturing lines in anticipation of the needs of the market and customers
In 2018 we were the first company anywhere in theworld to introduce,
for thewide-range
production ofcoating
protective
Installationof additionalfilms for polarizers,
wide-range coating
equipment
equipment
for high-functionality
opticalfilm
that can make efficient use of film with widths of up
to 2,500 mm, which are used for 65-inch screens. In
order to further leverage this competitive advantage,
we have added wide-range coating equipment at the
Mihara Plant.

Installation of additional widerange coating equipment for highfunctionality optical film

Structural diagram of LCD display panel

Image of the Mihara Plant, where wide-range coating equipment
has been added[DNP’s strengths]
・Optical design technology
・Materials design technology
・In-line multilayer coating technology
・Wide-range coating technology27

4 What is DNP’s approach to DX?
[Data-driven management] Building of data management infrastructure to provide new added value
to FY2019
Data is fragmented

FY2020 - FY2021

FY2022

Building of data-integrated infrastructure
Users of data management
infrastructure

FY2022 results

3,678 people

FY2023

FY2024FY2025

Data management infrastructure
FY2023 results

5,512 people

2025 target

6,000 people*Data-integrated infrastructure: a platform that consolidates data from various systems within the DNP Group*Data management infrastructure: a platform enabling the data consolidated by the data-integrated infrastructure
to be processed, analyzed, visualized, and used for management decisions

We are building a data management infrastructure that not only enables
sales and production data and other data that contributes to businessgrowth to be consolidated, processed, visualized, and analyzed for the
purpose of prompt decision-making, but also provides new value
By modernizing business systems in focus business areas where we canexert our competitive advantages, we will feed back strategic data to
the data management infrastructure
From DNP Group Integrated Report 2023 p.55

28

FY2023 - FY2025

Policies aimed at realizing the Medium-term Management Plan
Anticipate
market changes
by reading
megatrends andexpandfocus businesses
in growth areas×

Combine DNP’sunique strengths
and boostcooperation withpartners+

Generatevalue
throughDX

29

Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto30

Business activities and environmental activities
Aim for coexistence of business activities with global environment, and promote environmental conservation throughout the supply chain.

31

DNP Group Environmental Vision 2050
Working to realize the “three societies” of our Environmental Vision by both creating value and strengthening our business base.
Initiatives in the Medium-term Management Plan (FY2023-FY2025)

Creating value
・Transforming business portfolio based on
environmental impact and added value
・Expanding the development andutilization of low-carbon materials
・Decarbonization of products and services
through calculation and reduction of CO2
emissions for each product・Creating recycling scheme and expanding
the utilization of recycled materials

Strengthening business base・Clarifying environmental impact
・Introducing renewable energy
・Investing in energy-efficient facilities,
optimizing production bases to addressenvironmental impact
・Minimizing the impact of businessactivities on ecosystems
・Ensuring traceability of raw materials andtransparency of supply chain

1

2

3

From DNP Group Integrated Report 2023 p.56

*1 Super eco-products are products and services that DNP deems to be exceptionally environmentally conscious based on its proprietary criteria.
*2 Resource recycling percentage is the rate of unneeded materials, excluding valuable materials such as paper, etc., recycled by either material or chemical recycling.

32

1 Response to climate change utilizing TCFD framework
In preparation for realizing carbon neutrality in 2050, we will respond flexibly and strategically to climate risks.
Type

Climate risk

Financial and other effects on DNP

Negative

Period ofimpactLevel of Likeliho
impactod

MediumMediumHigh

Mandatory adoption ofrenewable energy

Increased capital expenditures for the
introduction of renewable energy, and increased
expenses for purchasing Non-Fossil Certificate

MediumLow

High

Introduction of carbon tax

Increase in operating costs caused byintroduction of carbon tax

Long term

MediumHigh

Low

Acceleration of carbon neutrality Increasing requests for carbon reductions, passin supply chain
through of raw material prices

Short tomediumterm

MediumHigh

High

Acceleration of technologicalinnovations

Increased investment in the development of newtechnologies, loss of markets due to delays indevelopment

MediumMediumHighMarket/reputation

Changes in customer
behavior

Market consolidation

Loss of markets due to a lack of carbon
reduction, acceleration of the shift to nonpetrochemical products, requests for replacementof non-environmentally conscious materials withalternative materials

MediumIncreased concern
among stakeholders

Decline in corporate value,
exclusion from investments

Loss of markets due to a lack of carbon
reduction, outflow of human resources and anincrease in hiring costs

Urgency

Increased damage from wind Suspension of operations
and flood
Disruption of supply chains

Increased regulation of
GHG emissions

Technology

Increased capital expenditures accompanying
efforts to encourage energy saving

Policies, laws and regulations

Transition risk

Raising emission reduction
targets becomes mandatory

Transition to low-carbon
technologies

Chronic

Physical risks

Increase in temperature
Long-term heatwaves

Water-related risks in river
basinsPositive

Responseーーー

Short tomediumterm

Medium

High

ー

ー

ー

Secure an advantage by calculating CO2 emissions
over product lifecycle, and developing the calculation
business

MediumMediumHigh

MediumPromotion of development for use of next-generation
fuels, rising demand in related divisions following
widespread popularization of EVs, widespread adoptionof low carbon technology for semiconductor production

Short tomedium
term

High

High

Growth in focus business areas such as those related tohigh-performance materials for mobility and industry, andsemiconductors

Low

High

Expansion of market for low-carbon product andservices, expansion of market for alternatives to existing
plastic products

MediumHigh

High

Development of low-carbon products and services
Greater use of recycled and biomass materials
Build system for calculating CO2 over product life cycle

Short tomediumterm

MediumMediumIncreased information disclosure, stronger engagement
Competitive edge as a leading sustainability company

MediumMediumMediumStrengthening activities in response to external requests,
increase in corporate value as a result of better disclosure

Decreased earnings, increased cost of disastercountermeasures, construction of production
systems at multiple bases

Short term

Medium

High

ー

ー

ー

ー

Strengthening of disaster countermeasures at production
bases
Increased transparency/redundancy in supply chain

Hindrance to operations due toaverage temperature increases, Increased energy expenses, increased capitalincrease in costs due to growing expenditures
demand for cooling

MediumMediumHigh

Short tomediumterm

MediumHigh

Decreased earnings, increased cost of disastercountermeasures, construction of production
systems at multiple bases

MediumShort tomediumterm

MediumHigh

Suspension of site operations

ー

Period of Level of Likeliho
impactimpactod

Growth in sales of products related to solar power
generation, promotion of development for the use ofnext-generation fuelsー

Increase in demand for products utilizing functional films
to control light and temperature
MediumHigh

Introduce renewable energy in preparation for carbon
neutrality in 2050, systematically implement capital
expenditures based on internal carbon pricing, promote
expansion and development of energy-related businesses,
build system for calculating CO2 over product life cycle, andreduce emissions

Strengthening of disaster countermeasures at production
bases
Construction of production systems at multiple bases
Accelerate development of products utilizing functional films,
and expand applications

33

1 Response to climate change
We have reviewed BCP on the assumption of a major natural disaster, and strengthened measures related to facilities and management.
Assuming greater risk of flooding from rivers and inland waters, we are implementing measures to prevent flooding of buildings,
and utility facilities
Learning from the experience of sites such as Warabi, Ushiku, Kamiya, Nara, and Kyoto Minami that have already acquired certification for
ISO22301 (business continuity management systems: BCMS), we are raising the BCMS level at other locations
In order to mitigate procurement risk, we will select suppliers and secure appropriate levels of raw material inventory
Main flooding countermeasures
Fiscal year

Plant

Nara Plant: raising of electricity transformer facilities
Measures2019

Kanagawa(Kawasaki)

Water barriers installed around utility facilities andbuildings

2021

Saitama (Warabi)

Raising of electricity transformer facilities

2021

Nara (Kawanishi)

Raising of electricity transformer facilities

2022

Aichi (Nagoya)

Water barriers around buildings

2022

Kyoto (Kyoto
Minami)

Improvements to water barriers around buildings

2023

Hokkaido (Sapporo)

Water barriers around electricity transformer facilities

Measures have been completed for 100% of locations assumed to be at risk
from rivers in Japan

34

1 Roadmap for achieving carbon neutrality by 2050
2030 targets expected to be achieved early. Accelerating initiatives to achieve net-zero GHG emissions by 2050.
Conversion of business portfolio: optimization of production bases
Energy saving activities, replacement with high-efficiency equipment: Switch to LED lighting, update aging facilities toenergy-saving types, repair compressed airleaks, reduce air conditioning load, turn off
power when facilities are idle, boost regularcleaning of utility facilities
Introduction of renewable energy

Actual36.5%

reduction

From DNP Group Integrated Report 2023 p.58

35

1 Reducing emissions throughout the supply chain
By strengthening our cooperation with main suppliers, we seek to reduce emissions throughout the supply chain.

[Calculation method]
Conforms to the Basic Guidelines on Accounting for Greenhouse Gas Emissions throughout the Supply Chain Ver. 3.3.
・Scope 1 emissions associated with transportation by Group companies are included in Category 4. Category 8 is included in Scope 1 and 2.
・Category 10 is excluded from the calculation because the percentage contained in final products is very small.
・Category 11 consists only of emissions from domestic PET plastic beverage bottles. ・Categories 13 and 14 are not applicable. Beginning in FY2021, we based the emissions per unit on IDEA.
[Scope of calculations]
Main domestic locations (excluding Hokkaido Hokkaido Coca-Cola Products, the Bookstore Group, etc.) and main overseas sites (PT DNP Indonesia, DNP Imagingcomm America Corporation, DNP Imagingcomm
Asia Sdn. Bhd.)36

2 Efficient use of resources throughout the supply chain
Promote shift from heat recovery to material or chemical recycling, primarily for plastics.
Few

Highpurity
monomaterial
plastics

PET

Impurities

Olefins

Many

Multilayer
products
Laminated
products

Material
recycling

Increase in resource recycling *percentage for DNP waste
Target: Increase of five points from 51.7 → 56.7%(2015 → end of FY2025)
Actual: FY2022 58.0% (improvement of 6.7 points)

Chemicalrecycling・Monomerization
・Conversion to oil
・Conversion to gas

・Concentrating on plastics where high volumes of waste occur, we will
work with partner companies to categorize waste more finely, convert tosingle materials (mono-materials), and to move to chemical recycling.
*Resource recycling percentage: material or chemical recycling as a percentage of waste

Cooperation between government and private sector Demonstration experimentfor visualization of plastic resource recycling
・Saitama Prefecture and seven companies areworking together to ensure traceability from thepoint at which they are recovered from stores totheir reuse in products
・Information on the flow of resource recycling andCO2 emissions is communicated to consumers inan easily understandable manner to foster changes
in their awareness37

3 Protecting and nurturing natural capitalThrough the creation of areas of greenery and the sustainable procurement of raw materials,
we aim to minimize the impact on biodiversity and achieve harmony with regional ecosystems.
Growing a new forest in urban area “Ichigaya-no-Mori” (Ichigaya Forest)
・We are growing a new forest of varietals native to the region, and as close tonatural as possible, as part of the redevelopment of the Ichigaya area.
・The area of greenery has been expanded steadily since 2015, and now covers
around one third of the site’s area (15,000 m²).
・In October 2023, it was selected as a “harmony with nature site,” as certified
by the Ministry of the Environment. It also won the Minister of Land,
Infrastructure, Transport and Tourism Award in the 43rd Urban Greening Prize.
Our efforts were rated highly for creating a forest of varietals native to theregion, the greening of man-made services using fertile soil, and the structure ofactive maintenance and management by employees.

Sustainable raw material procurement
Target: 100% conformance with DNP Group Guidelines for
Procurement of Paper for Printing and Converting by FY2030
Actual: FY2022 94%
・In cooperation with suppliers we will confirm the legality of raw
materials, and work to ensure traceability.

38

39

Sustainability Briefing(1) Concepts and Policies behind DNP’s Sustainable Management
President Yoshinari Kitajima(2) Reinforcing Human Capital

Senior Managing Director Kenji Miya

(3) Enhancing Intellectual Capital Senior Managing Director Masato Yamaguchi(4) Environmental Initiatives

Corporate Officer Hideto Sakata(5) Governance Initiatives

Managing Director Hirofumi Hashimoto40

Enhancing governance to realize the Basic Management Policy(“better future” envisioned by DNP)

Governance system that promotes businessstrategy
provide new value, with the aim of creating a sustainable, better society and well-being lives.

Enhance corporate
governance system■Boldly addressing the challenges ofvarious business opportunities throughsound entrepreneurship■Earning the trust of various stakeholders■Strengthening the process forappropriately assessing risks, applying
assessments in the medium- to long-term
management strategies and converting
the risks into business opportunities.

From DNP Group Integrated Report 2023 p.68

41

A management team with members from diverse backgrounds
A variety of business issues are deliberated by a diverse management team
Background of the Company’s Directors and Statutory Auditors

From DNP Group
Integrated Report 2023 p.67

42

A management team with members from diverse backgrounds
A variety of business issues are deliberated by a diverse management teamOutside Directors

４ personsMain items discussed at Board of Directors meetings during the fiscal year ended March 2023

Directors

Management strategy

12 persons
Internal Directors

8 persons(of which 1 is afemale Director)

Statutory Auditors
OutsideStatutory Auditors

5 persons

3 persons(of which 1 is a female
Statutory Auditor)• Progress of operations in line with the Mediumterm Management Plan
• Formulation of the Basic Management Policy• Formulation of the new Medium-termManagement Plan, etc.

Sustainability• Formulation of Human Capital Policy• Revision of the DNP Group Environmental Policy• Status of Sustainability Committee activities, etc.

Dialogue with shareholders•Holding of financial results briefings, sustainability briefings, etc.
•Status of dialogue with institutional investors, etc.

Governance•Key personnel, organizational units and remuneration•Evaluation of the effectiveness of the Board of Directors•Status of internal audits, etc.

Other

•Individual investments, etc.

Internal Statutory Auditors

From DNP Group Integrated Report 2023 p.67

2 persons43Ensuring the effectiveness of the Board of Directors to improve governance
Past improvement activities using questionnaire surveys to evaluate effectiveness
In April of every year, we conduct a questionnaire
survey to evaluate effectiveness in which all
Directors and Statutory Auditors participate.
Based on the results of the survey and the statusof improvement issues, we report the issues tobe addressed to the Board of Directors.

Main issues in which improvements madeSupervisory function of theBoard of Directors

Increase in the number of Outside Directors
Reorganization of the Sustainability Committee

Appointment and remuneration
systemSetting up/increasing members of Advisory
Committee, compilation of skills matrix
Establishing of Secretariat of the Board of

Operation of the Board of Directors Directors, beginning of prior explanations ofagenda items

From DNP Group Integrated Report 2023 p.70

Relationship with shareholders

Feedback to management on status of IR
activities, including ESG briefings

Support for outside
directors/statutory auditors

Regular holding of meetings for outside
directors/statutory auditors, factory tours

44Outside Director expectations for the Board of Directors
Initiatives for 2023 based on the results of the evaluation of effectiveness
Ensure sufficient time for deliberations by
the Board of Directors
Deep discussions of management issues
based on social changes that are not tied
to individual projects
Outside Director Yoshiaki Tamura

Outside Director Hiroshi Shirakawa

Initiatives for the current fiscal year (from the 2023 evaluation of effectiveness for the Board of Directors)
Further measures for progress at theBoard of Directors meetings

Standardization of meeting material formats to secure
time for deliberations and enhancement of content ofprior explanations given before meetings, etc.

Further enhancing communication
between management and outside
officers to enhance the effectivenessof the Board of Directors

Status of DNP’ business operations and content of
dialogues with shareholders, etc.
45

Disclaimer
The earnings forecasts, medium-term management targets, and other forward-looking statements
contained in these materials represent DNP’s judgement of the current outlook based on information
available at the time of preparation, and involve potential risks and uncertainties.
Actual performance may therefore differ materially from these forward-looking statements due tochanges in the various assumptions on which they are based.