3MEDIUM-TERM MANAGEMENT PLAN:
BUSINESS STRATEGY BY SEGMENT

Business Strategy by Segment

Shibuya Miyashita Park powered by metaverse

Smart Communication
Major products and services

Smart Communication• Imaging communication

DNPʼs strengths

Provide new customer experience value by utilizing high-definition image processing technology, as well as thecapability to securely deliver large volumes of digital data, and integrate and optimize business processes
Accomplishments and trust such as dye-sublimation thermal transfer photo media products with theworld-leading share and smart cards for financial institutions with the leading share in Japan
Examples of our core technology• Information Security• Content & XR communication• MarketingTechnology that has evolved fromauthentication to identify individuals
and perform encryption for safe andsecure transfer data

Information
security

Information
processing

Image
processing
andrecognition

Technology for high-definition
processing of still or moving images, orfor identifying people and scenery, etc.,from target image data

Technology that converts text, graphics
and other data into an optimal format
for various information media

Media
conversion
technologies

Project
planning
anddesignDataanalysis

Technology that extracts and organizes
data on consumer information service
usage trends, purchasing records,
weather, etc., and processes it inaccordance with a specific purpose• Publishing• Education

The main businesses of the Smart Communication segment include imaging
communication, where we boast the top global market share in dye-sublimation
thermal transfer printing media; Information Security, where we offer solutions
such as Business Process Outsourcing (BPO) and authentication security;content and XR communication, a new area; and other domains such as
marketing, publishing and education.
In this segment, we promote collaboration and service development withdomestic and overseas companies by leveraging the expertise we havecultivated through our BPO business, such as the ability to securely distributelarge volumes of data and integrate and optimize complicated and extensive
business processes in addition to high-definition image processing technology.

We aim to generate maximum returns on invested capital through efficient and effective investments.
In terms of expansion investments, we will explore investments to drive global expansion in areas such
as Information Security, where market growth is expected, and imaging communication, where themarket is robust.
At the same time, with respect to paper printed materials, which continue to decline, we willcontinue to promote rationalization of the paper media business through structural reforms such asreevaluating production processes and reallocating resources.
In this segment, in fiscal 2022, sales amounted to 720.2 billion yen and operating income was 26.7
billion yen. In fiscal 2025, we will aim for sales of 726 billion yen and operating income of 31 billion yen.

Basic strategy

Efficient investment with a view to balancing invested capital andcash generation
Consider utilizing core values for collaboration and service
development with companies inside and outside Japan
Rationalization of locations and systems according to market trends
and business size
KPI (FY2025)

Sales and operating income targets

Market environment(¥ billion)

Sales
Operating income

26.7

726.0

723.0

721.0

720.2

28.0

29.0

31.0

726 billion yen (101% compared to FY2022)
Operating income 31 billion yen (116% compared to FY2022)
Sales

28

2022

2026

4.6

5 trillion yen

Global market
for digital ID
solutions

2021

2030

Globalsublimationtransfer photo
media market

ActionConsider investment in global expansion of imaging communication
and Information Security
Rationalization of paper media businessJapanese
BPO market

Globalmetaverserelated market
FY2022
results

FY2023
Targets

FY2024
Targets

FY2025
Targets

CAGR 17 %
2023

2026

CAGR 2 %2030$ 678.8 billion*CAGR = Compound Annual Growth RateDNP Integrated Report 202329

3 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY BY SEGMENT

Focus business area strategy

New business

Promoting stable business

Content & XR communication
One of DNPʼs strengths is our worldwide network of diverse
content holders and creators. We also have a track record inhigh-definition image processing technology and complex
copyright processing developed in the archiving business andInformation Security business, and the capability to distributelarge volumes of data in the real world and digitally while
securely authenticating individuals and information, and tointegrate and optimize business processes.
Building upon these strengths, we aim to seamlessly andsecurely bridge the real and virtual worlds, contributing to theadvancement of the information society. The global
metaverse-related market is expected to continue expanding
significantly, and DNP is actively pursuing the expansion of thisas a new business. In this field, we aim to approximately double
our fiscal 2022 sales in fiscal 2025.

Imaging communication
Sublimation transfer photo media products andservice creation“ Virtual Akihabara,” a fusion of real and virtual spaces

DNP has achieved the worldʼs leading market share withdye-sublimation thermal transfer printing media developed based on
printing technologies such as coating. As the way people enjoy
photography evolves with the times, DNP leverages these products
and various services, particularly in the realm of photo printing, todevelop the photo imaging business. In recent years, driven by thewidespread use of smartphones and social media, consumer needs
have expanded beyond printed photos to experiences. In response,
DNP offers a wide range of services, from photography andprocessing to print sales, as well as cloud-based image sales andservices, all while prioritizing data security and privacy protection
with a high-security infrastructure and system.

TOPIC

Business strategy / Investment plan

Early creation of unique fan service business spanning real and digital worlds
by utilizing Tokyo Anime Center and Web3 for fans of IP holders*Creation of business supporting both real and virtual corporate activities
including authentication security technology, AI-based DX services and BPO
Creation of a business providing new customer experience value leading tocultural and regional development based on the accomplishments by digitallyarchiving over 100,000 artworks with art museums, galleries and cultural
facilities, etc. in Japan and overseas

Tokyo Anime Center© The Association of Japanese Animations (AJA).
© Dai Nippon Printing Co., Ltd.

* IP holder: A person or group who owns a variety of content (intellectual property) such as games and anime

Promoting digital transformation andaccelerating the rollout of new photo services
DNP has established a network of “ Ki-Re-i” ID photo printing machines across Japan,
enabling electronic application processes for various official certificates andqualifications. We are also expanding the application, for example by providing a service
for collating and using profile photos taken by a “ Ki-Re-i” to create employee ID cards.
Moreover, we aim to provide consumers in Japan and abroad with a range of services
that enhance the photography experience at theme parks, events and other venues.

Growth rate indexed against FY2022 as 100

Outlook for global
metaverse-related market* Prepared by DNP based on WHITE PAPER
Information and Communications in Japan(Ministry of Internal Affairs and Communications)$678.8 billion

FY2025 Over 2X(vs. FY2022)$47.5 billion
FY2022

FY2025

Our aim2022 forecast

2030 forecast

TOPIC“Midokoro walk®” interactive content system
DNP has created more than 100 interactive systems since launching the DNP Museum Lab initiativein 2006, with the goal of delivering cutting-edge viewing experiences. The “ Midokoro Series”
represents a range of systems developed by drawing upon the accumulated technologies andexpertise, envisioning diverse experiential scenarios rooted in culture and the arts.
One of these systems, “ Midokoro walk ®,” harnesses “cross-modal perception,” when two or
more senses interact with each other. DNP provides new cultural experiences by creating the feelingof walking through a virtual environment using virtual reality (VR) such as the Mazarin Gallery in theRichelieu site of Bibliothèque nationale de France.

30

Photo-related service solutions

DNP Virtual Experience
VR presentation gateway
Data provided by Anshin Project Japan Inc.

Sales plan

Dye-sublimation thermaltransfer printing media

Image of a VR experience using“ Midokoro walk ®” at the Mazarin Gallery©DNP Dai Nippon Printing Co., Ltd. 2021,
with the courtesy of the Bibliothèque nationale de France.

Information Security
Business Process Outsourcing (BPO)
In the past, DNP has contributed to the BPO business with support
24/7. Now, we are deploying the latest technologies to expand thisbusiness using artificial intelligence (AI) and RPA*, from both
domestic and international locations. Our services are designed tohelp companies and organizations address their business challenges
swiftly and efficiently, tackling pressing social concerns such aslabor shortages and the need for workstyle reforms through businessprocess reengineering.
* Robotic Process Automation (RPA): Business automation using robots (software) that utilize AI

Authentication and security technology
We offer advanced authentication technology, systeminfrastructures, smart card manufacturing and payment services
with a leading market share in Japan. We also provide physicalsecurity solutions such as security gates and surveillance cameras
for offices, factories and other locations. Our services encompass
sensitive information and physical security solutions, utilizing digitalauthentication methods for object authentication and facialrecognition for personal authentication, ensuring enhanced security
and convenience in daily life.

DNP Integrated Report 202331

3 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY BY SEGMENT

Business Strategy by Segment

Life & Healthcare
Major products and services

Life & Healthcare• Mobility and industrial high-performance materials• Medical & healthcare• Packaging• Living spaces

DNPʼs strengths

Provide essential value for security, safety, health, comfort and the environment with a variety of functionalfilms leveraging converting technology, our unique material processing technology
Accomplishments and reliance on battery pouches for lithium-ion batteries with the world-leading share, andPET bottle aseptic filling systems and products for household interior and exterior decoration with the leading
share in Japan.
Examples of our core technology
With this processing technology, coating
material can be thinly and uniformly
applied and attached to a substratesurface. By combining this technology with
substrate design technology, it is possible
to form coating films with a variety offunctions such as optical properties,
barrier properties and heat resistance.

Coating

A technology that uses a vacuum tovaporize a material and deposit it on asubstrate material such as plastic film to
produce an ultrathin film of high purity

Vacuumdeposition

Precision
coatingEB®
hardeningtechnologies

A technology that instantly makes resins andcoating films highly functional by irradiatingthem with electron beams. This enables to
impart functions with long-term durability
such as scratch resistance, weather
resistance, soiling resistance, andantibacterial and antiviral properties.

Postprocessing

Laminating

A technology that evenly bonds
separately-produced materials including
films, metals and resins. Bonding multiple
functional materials according to theapplication produces even better results.

• Beverages

The main businesses of the Life & Healthcare segment include the mobility andindustrial high-performance materials business represented by the worldʼs top
share of battery pouches for lithium-ion batteries and mobility interior andexterior decorative materials; the medical & healthcare business, which
encompasses bulk pharmaceutical manufacturing and medical packaging; andthe packaging, living spaces and beverages businesses, which encompass
aseptic filling systems for PET bottles and products for household interior andexterior decoration.
In this segment, we will invest in manufacturing facilities for battery pouches
for lithium-ion batteries and in focus businesses centered on medical andhealthcare business and promote investment in the global expansion of existing
packaging and living spaces businesses.

We will continue to develop new products leveraging converting technology and our uniquematerial processing technology, and actively explore collaborations and service developmentwith domestic and international companies to consistently deliver value for safety, security,
health, comfort and the environment.
In fiscal 2022, sales in this segment amounted to 541.3 billion yen and operating
income was 7.9 billion yen. With the above initiatives, we will aim for sales of 542 billion yen
and operating income of 24 billion yen in fiscal 2025.
To achieve our goals, we will strive to boost business profitability by reorganizing bases
and optimizing resources in the packaging business as well as in other businesses in parallelwith investment to expand focus businesses.

Basic strategy

Expand business through large-scale capital investment centered onbattery pouches
Investment in growth areas centered on medical & healthcare andglobalConsider utilizing core values for development of new products, andfor collaboration and service development with companies insideand outside Japan
KPI (FY2025)

Sales and operating income targets
Sales
Operating income

2022 Global market

Globalmarket for
EV + PHEV

495.0
451.3

32

Approx.
10.5 million units
2023

21.0
18.0

2018
7.9

FY2022
results

Global market forpharmaceuticals
FY2023
Targets

FY2024
Targets

FY2025
Targets

2030

CAGR 17%,
approx. 42 million units

24.0

542 billion yen (120% compared to FY2022)
Operating income 24 billion yen (304% compared to FY2022)

Expansion of battery pouch production capacity
Medical & healthcare investment: 10 billion yen or more
Reorganization of facilities in packaging-related business

542.0

524.0

Sales

ActionMarket environment(¥ billion)

2030

141

216 trillion yen(Total for small molecules,
bio and cellular pharmaceuticals)*CAGR = Compound Annual Growth RateDNP Integrated Report 2023

33

3 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY BY SEGMENT

Focus business area strategy

Growth-driving businesses

Focus business area strategy

Mobility and industrial high-performance materials

Medical & healthcare

DNP provides products and services supporting EV range extension,
automated driving and comfortable mobile spaces, starting with battery
pouches for lithium-ion batteries and mobility interior and exterior decorative
materials. On the back of growth in the global market for Plug-in HybridElectrical Vehicle (PHEV), DNP is planning major investments to expand our
production capacity for battery pouches and other products, aiming toincrease overall business sales in fiscal 2025 to 180% the fiscal 2022 level.
We are also developing components and materials related to clean
energy and energy management. In addition, we hope to quickly
commercialize MaaS*, which is gaining traction worldwide, beginning with ademonstration test of a cold chain logistics service for last mile delivery in
the Philippines that combines a digital delivery management system and
DNP Multifunctional Insulated Box.

With a solid foundation of proprietary strength in Printing & Information (P&I)
cultivated over a long period of time, DNP has been engaged in thepharmaceutical packaging business derived from food packaging technology,
and active pharmaceutical ingredients (API) business that takes advantage ofprecision organic synthesis technology. From an early stage, DNP has
focused on advanced medical fields such as regenerative medicine and willcontinue to support advanced medical business with AI-driven testing
technology. At the same time, we are developing services leveraging ICT and
online technology in fertility treatment, telemedicine and medical checkups.
Against this backdrop, in April 2023, we began a strategic businessalliance with CMIC HOLDINGS Co., Ltd., which operates as a Contract
Research Organization (CRO) and Contract Development and Manufacturing
Organization (CDMO). As part of the alliance, CMIC CMO Co., Ltd., which
operates a pharmaceutical formulation business, joined the DNP Group as acapital participation subsidiary.

*Mobility as a Service (MaaS) refers to the provision of mobility solutions, such as automobiles, as a service.

Business strategy / Investment plan

Business strategy / Investment plan

Major investment in expansion of production capacity for battery
pouches, etc. Promotion of supply to appropriate regions such as
Europe and the United States
Accelerate development of components for clean energy, energy
management and sensors, key devices, etc. supporting
comfortable mobile spaces
Development and mass production of decorative film for exterioruse, and molding and laminating systems
Early commercialization of MaaS from the trial period
Accelerate new product development for industrial
high-performance materials

Sales plan

Growth rate indexed against FY2022 as 100

New business

Environmentally friendly
and aestheticallyappealing decorative
film for exterior roofs,
and molding andlaminating systems

Next-generation
decorative panels
realizing the advanced
seamless design ofautomobile interiors

Outlook for global market for EV+PHEV＊LMC automotive

Expand API business at DNP Fine Chemicals Utsunomiya andformulation business at CMIC CMO, and establish an
integrated system spanning from the development andmanufacture of API through to formulation development andmanufacture through alliances with both companies
Develop value-added pharmaceuticals by combining the
packaging technology of DNP with the drug formulation
technology of CMIC CMO
Promote digital transformation (DX) in clinical trial support
business through the alliance with the CMIC Group andpursue healthcare solutions to maintain and promote healthsuch as pre-symptomatic measures designed to reduce therisk of lifestyle-related diseases
Sales plan

Growth rate indexed against FY2022 as 100(10 thousand units)

FY2025 80% increase(vs. FY2022)

Global market outlook forsmall molecules
Small molecules
Of which, highly potent API

FY2025 Over 7X

CAGR 17% (2023→2030)

CMIC CMOʼs Shizuoka Plant and measuring instruments(vs. FY2022)¥ 122
trillion¥ 110
trillion¥ 21
trillion

FY2022

FY2025

Our aim20192020 2021 2022 2023

2024

2025 2026 2027

2028 2029 2030

TOPIC

34

FY2025

Our Aim2018¥ 42
trillion

2030

TOPIC

Promoting the expansion and practical implementation of
EV models equipped with wireless charging capability
In recent years, there has been growing anticipation for wireless charging as a means to accelerate
the shift to EVs, eliminating the need for a cable to connect the charger and car body. This technology
reduces charging burden and increases convenience. In March 2023, DNP, in collaboration with
Sojitz Corporation and DAIHEN Corporation, became the first in Japan to obtain registration approval
for commercial EVs equipped with wireless charging capability and began on-road performance tests.

FY2022Estimate by DNP based on various materials

Supporting the pharmaceutical industryʼs value chain
and creating new value
Image of a thin, light sheet-type coil forhigh-capacity wireless charging

The resources of the DNP Group and the CMIC Group will be combined to provide
further enhanced support to the pharmaceutical value chain and new value proposals
in the pharmaceutical industry and the fields of medical checkups and healthcare.
* CMIC Group launched the first CRO in Japan in 1992 and provides comprehensive support in the development, manufacture, sale and marketing of pharmaceuticals.

DNP Integrated Report 2023

35

FOCUS

Business
Strategy for
Major
Products

Growth-driving businesses

Mobility and industrial high-performance materials
DNP Denmark

Lithium-ion battery pouches

EuropeInstallation of slit
processing line

secured the worldʼs top market share. Demand for thisproduct extends to various applications, including
information devices, automotive, electric bicycles andenergy storage.

Tobata Plant

To meet forecast growth in demand for EVs over the
medium to long term, we will focus investments toincrease the production capacity of battery pouches forautomotive applications. In particular, we are promoting
production in the best locations in Europe and the UnitedStates. For Europe, a new slit processing line has been
built at the Denmark Plant and operations are underway.
In the United States, we are exploring the construction ofJapan
Mother plant• Jumbo roll manufacturing• Slit processing

US
Manufacturing plant
Construction underconsideration

a local manufacturing plant to meet growing demand on
the back of preferential policies for EVs.
Through these business expansion strategies, we aim
to maintain the top share in the global market andstrengthen our production system to achieve 100 billion
yen in overall sales of battery pouches for lithium-ion
batteries by fiscal 2025.

Business strategy / Investment plan

Consider expansion of production capacity for the increasein EV demand from FY2023.
Promotion of supply to appropriate regions such as Europe
and the United States.
Installation of post-process line in Europe (Denmark Plant),
with operation scheduled to start in FY2023.

DNPʼs strengths
Battery module

Global standard
Stable track record even for use
with large-scale batteries
Certified to IATF 16949 automotive
quality management systems(Saitama Prefecture)(Fukuoka Prefecture)

DNP will leverage its strengths in converting technology and strive toestablish itself as the industryʼs de facto standard, enhancing its
presence in the global market. Furthermore, we will expand theapplications of battery pouches and maintain and strengthen its global
market share leadership. Looking toward 2040 and 2050, we aim tocontribute to a sustainable society where people can live with security,
health and well-being by supporting the extension of the driving rangeof electric vehicles (EVs) through our products and services.
In the field of EV batteries, efforts are being made to
improve driving performance and energy efficiency,
focusing on increasing capacity, reducing weight andthinner designs. DNP leverages its converting (material
processing) technology to develop battery pouches,
which serve as the outer casing for lithium-ion batteries.
These pouches achieve the required heat resistance,
vibration resistance and long lifespan for EVs, and have

Tsuruse Plant

Battery cell

Aim for 100 billion yen in sales by FY2025
for lithium-ion battery pouches overall
Structure of a lithium-ion
battery to which abattery pouch is applied

Leveraging the strengths of battery pouches
that safely and securely encase lithium-ion
batteries to expand into various applications

The power to create new value

to generate value

The sales
acumento expand valueMarket trends

Global No.1
market share
Domestic No.1
market shareTab

Laminated
electrodeBattery pouch(exterior material)

The foresight to discover value
Leveraging our All DNP converting technology and anticipating market shifts and the trend towards
electrification, we aim to establish the de facto standard for battery pouches in the domestic andinternational battery industry.

CoatingLaminating
technologies

Materials
development

Assessment
andanalysis

The ability to generate value
Our applied expertise in functional films, honed in packaging materials for products such as food andpharmaceuticals (through coating and lamination technologies), is now being leveraged and extended to thedevelopment of outer casing materials for lithium-ion batteries, making batteries thinner and lighter.

The sales acumen to expand value
We bolster our competitive edge through comprehensive patent applications, in-house designed materials andself-developed production facilities, as well as external collaborations. With a strong foundation of high quality, aproven track record and trusted relationships with our partners and customers, we expand our presence globally.

36

Battery pouches business performance and targets (volume)
US demand

Short-term

to discover value

The ability

Medium- to
Long-term

The foresightSignificantly impacted by market
conditions such as a slump in
consumption due to the recoil
following the surge in stay-at-homedemand due to the COVID-19
pandemic
Although significantly affected bymarket conditions such as adecrease in automotive
manufacturing caused by thesemiconductor shortage, a gradual
recovery is being madeConsideration is being given to theconstruction of a new manufacturing plant in
the US to cater to the increase in demandcaused by EV incentives in the US.

Continuous strong sales expected
due to growing EV demand
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026
resultresultresultresultresultresultresult forecast forecast forecast forecast

DNP Integrated Report 202337

3 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY BY SEGMENT

Business Strategy by Segment

Electronics
Major products and services

Electronics• Digital interfaces• Semiconductors

The main businesses in the Electronics segment are the digital interface
business, which includes optical films for displays and metal masks for
manufacturing organic light-emitting diode (OLED) displays, both of which boast
the worldʼs top market share, and the semiconductor business, which includes
photomasks for manufacturing semiconductor products and lead frames forsemiconductor packaging materials.
DNP has positioned the Electronics segment as a whole as a growth-driving
business and will actively make capital investments in this area going forward.

DNPʼs strengths

Develop industry-leading products leveraging large surface area functionalization technology, micro and nanomodeling technology, optical control technology, etc.
Accomplishments and trust from products with a world-leading share in areas such as metal masks for OLED
displays and optical films for displays
Examples of our core technology
We utilize our distinctive optical design
technology as the foundation,
incorporating precision thin-film clean
coating technology and converting
technology, including LCD coating, todeliver optical film products with awide range of functionalities.

This technology forms high-resolution
replica images by exposing aphotosensitive agent applied to thesubstrate's surface to light or electron
beams, thus creating the original image.

Basic strategy

Microfabrication

Clean
converting

Precision
coating

Photolithography

PatterningThis involves etching technology,
where materials undergo chemicalcorrosion and removal to achieve thedesired structure, and molding
technology, utilizing molds made ofmetal, glass, or resin to replicate thematerial's uneven shape on a printed
substrate.

Coating

Wet coating is a process in which
inked materials are thinly and uniformly
applied to cover the surface of a
substrate. When combined with
substrate design technology, it allows
for the creation of coatings withvarious functionalities.

DNP leverages its unique strengths in large-area functionalization technology, micro/nanomodeling technology derived from microfabrication technology used for stamps, and opticalcontrol technology, which enables the design of colors and the reflection and refraction oflight. Using these technologies, we will continue developing cutting-edge products for theelectronics industry. Furthermore, through alliances with external partners, we aim to expand
our value proposition within the semiconductor supply chain.
In this segment in fiscal 2022, sales amounted to 203.5 billion yen and operating income
was 46.9 billion yen. We will aim for sales of 230 billion yen and operating income of 52
billion yen in fiscal 2025.

Accelerate expansion of existing businesses through active capital
investment
Consider utilizing core values for development of new products, andfor collaboration and service development with companies insideand outside Japan
KPI (FY2025)

230 billion yen (113% compared to FY2022)
Operating income 52 billion yen (111% compared to FY2022)

Sales

ActionInvestment in expansion of production capacity for metal masks for
manufacturing OLED displays
Approx. 20 billion yen
Investment in expansion of production capacity for optical films
for displays
13 billion yen or more
Investment in expansion of production capacity for photomasks, etc.
20 billion yen or more
Expansion of provision of value to the semiconductor supply chain
through external alliances

Sales and operating income targets

Market environment(¥ billion)

Sales
Operating income

To reach

300 million

230.0
203.5

212.0

197.0

52.0

Globaldisplay market

2023

47.0

46.9

square meters in 2030
2030

CAGR 3.8%

42.0

100 trillion yen
Globalsemiconductor
marketin 2030
2023

2030

CAGR 5%
FY2022
results

38

FY2023
Targets

FY2024
Targets

FY2025
Targets*CAGR = Compound Annual Growth RateDNP Integrated Report 2023

39

3 ｜ MEDIUM-TERM MANAGEMENT PLAN: BUSINESS STRATEGY BY SEGMENT

Focus business area strategy

Growth-driving businesses

Focus business area strategy

Digital interfaces

Growth-driving businesses

Semiconductors

We will continue to make aggressive capital investments in line withthe expansion of the global market for displays, particularly in metalmasks for manufacturing OLED displays and optical films fordisplays. Our plans call for an investment of approximately 20 billion
yen in a new metal mask production line for manufacturing OLED
displays at the Kurosaki Plant (Fukuoka Prefecture) and more than
13 billion yen in a new wide-range optical film production line at the
Mihara Plant (Hiroshima Prefecture) to expand production capacity.
By increasing applications to include Extended Reality (XR) andin-vehicle displays, we hope to contribute to the evolution of theinformation society by safely and seamlessly connecting the real anddigital worlds.
Through these efforts, we aim to raise the sales of digitalinterface business in fiscal 2025 to 112% of the fiscal 2022 level.

We provide fine devices essential in the semiconductor supply chain,with a focus on photomasks for manufacturing semiconductor products
and lead frames for semiconductor packaging components. We plan tomake capital investments of at least 20 billion yen at domestic andoverseas production bases in order to expand production capacity forphotomasks and other products and will also promote alliances withexternal parties.
Moreover, we are working to develop nanoimprint technology to
reduce power consumption in semiconductor manufacturing processes.
We formed a capital and operational alliance with SCIVAX Co., Ltd. toaccelerate the mass production of nanoimprinted products such as
optical elements for mobile devices and bio-device elements throughNanoimprint Solutions Co., Ltd., a joint venture with SCIVAX.
Image of the Mihara Plant (Hiroshima Prefecture), where a new
wide-range coating device has been added

Business strategy / Investment plan

Investment of approx. 20 billion yen in expansion of
production capacity for metal masks for manufacturing
OLED displays, scheduled to commence operation in
FY2024
Investment of 13 billion yen or more in the expansion of
production capacity of ultrawide optical film, scheduled
to commence operation in FY2025
Expansion of applications such as XR and automotive
displays

Sales plan

Growth rate indexed against FY2022 as 100

Optical design technology is used tocontrol light reflection and reduceglare in lighting and other applications

Outlook for the global display market* Estimate by DNP based on various materials

350,000
300,000(vs. FY2022)

Investment of 20 billion yen or more in expansion of
production capacity for photomasks, etc. in Japan andoverseas
Accelerate the mass production of nano-imprinted
products such as optical elements for mobile devices andbio-device elements through Nanoimprint Solutions, ajoint investment with SCIVAX
Expand value provision to the semiconductor supply chain
through external alliances
Image of an OLED display
manufactured using metalmasks(Area: km2)

FY2025 12% increase

Photomask (master for making semiconductors)

Business strategy / Investment plan

Smartphones
IT
TV

CAGR 3.8% (2023→2030)

Sales plan

Growth rate indexed against FY2022 as 100

87(vs. FY2022)

250,000

5

200,000

4

1
0
FY20220

FY2025

Our aim

2015

2020

2025

2030

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

TOPIC

40

CAGR 5% (2023→2030)

LOGIC
MemoryOther

250,000
Our aim* Estimate by DNP based on various materials

3

100,000

FY2025

Vapor chambers (metallic
heat-dissipation components)(communication,
power semiconductors, etc.)

6150,000

FY2022Global market outlook for semiconductors($10 billion)

FY2025 15% increase

Lead frame for compact
semiconductor packages

TOPIC

Addition of a wide-range coating device for high functional optical film

Capital and operational alliance in foundry business for the mass
production of nanoimprinted products

DNP has increased the number of wide-range coating devices suitable for the manufacture of highfunction optical film with a maximum width of 2,500 mm. The device has been added at the Mihara
Plant in Hiroshima Prefecture in response to the ongoing shift to large screen televisions. As a result,production capacity, on an area basis, has increased by more than 15%. This will boost the productivityof film for 65-inch large-screen TVs with horizontal and vertical dimensions of 1436.4 mm x 809.0 mm.

In this alliance, we will combine DNP ʼs strengths in cutting-edge nanoimprint master mold manufacturing technology,
mass production and quality control know-how, with SCIVAX ʼs strengths in mass-production manufacturing equipment
capable of high-precision nanoimprinting and equipment design technology, among other areas. As a result, we willdevelop a system in Japan that can rapidly respond to the mass production outsourcing needs of manufacturers inJapan and overseas, which, in the future, will also lead to capabilities in responding to global supply chain risks.

DNP Integrated Report 2023

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