DNP Group CSR Report 2006
April 2005 - March 2006

DNP GroupCSR Report 2006

CONTENTS

April 2005 – March 2006

Editorial Policy/DNP Corporate Profile
Top Message

1

2

Promoting CSR

Society4

Corporate Governance

6

FY2005 Highlights

Society

8 Offering a Safe, Reliable, andConvenient Life with the Smart Card

10 We Seek to Develop a Workforce
of Independent, Cooperative
Professionals

12 Eco-Report System: Spanning
the Globe
Communications

32 Relations between DNP andCompliance with Laws and Social Ethics 34
Relationship with Employees 36
Social Contribution (Corporate Philanthropy) 44
Social Contribution (Local Communities) 46
Social Contribution
48(Our Business/Academic Research/Education)2005 CSR Awards

49

Environment
50 DNP and Global

14

Economy16 DNP and Economic Activity
Financial Data/Results of Each Segment 18
P&I Solutions (Research & Development) 20
P&I Solutions (Intellectual Property) 21
P&I Solutions (Toward Advancing the Information Society) 22
P&I Solutions (For Quality Improvement) 24
P&I Solutions (Purchasing Efforts) 26
P&I Solutions (Examples of New Value Creation) 28
IR Activities 31

Environmental Issues

Environmental Policy/
Environmental Management Structure 52
Environmental Management System 53
Internal Environmental Audit 54
Sites for Environmental Disclosure 56
Current Status of Environmental Impact 58
2005 Targets and Results 60
Environmental Pollutants 62
Measures Against Global Warming 64
Environmental Impact from Transport 65
Chemical Substances 66
Resource Recycling 67
Environmental Risk Management 70
Environmental Conscious Products 73
Green Purchasing/Environmental Label Certification 74
Certification Acquisition 75
Activities at Overseas Sites 76
Environmental Education 77
Environmental Accounting 78
Achievements of Environmental Issues 80
Independent Review Report 81

Editorial Policy

About the Cover~ Human-Plant Dialogue ~In the report, we describe the DNP Group's CSR efforts, categorizing them into threeprincipal areas - economic, social, and environmental aspects.
We present the highlights of topics worthy of mention in these three areas from our
CSR efforts in 2005.
We have sought to provide a clearer picture of these activities by including the wordsof those actually in charge of the various efforts.
In order to add a greater measure of objectivity to the evaluations of the activities, wehave elicited comments on the individual topics from third parties, along with advice on
improvements that could be made in the next year and beyond.
To ensure the reliability of the information in our "Environmental Performance" section (p. 52~80), we
submitted it to a third-party review conducted by the
Shin Nihon Environmental and Quality Management
Research Institute Co., Ltd. The report was granted theEnvironmental Report Assurance and Registration Markaccording to the "Environmental Report Assurance and Registration Mark Standards"
established by the Japanese Association of Assurance Organizations for Environmental Information.
In compiling this report, we have referred to the Global Reporting Initiative's "Sustainability Reporting Guidelines 2002" and the Japanese Ministry of the Environment's"Environmental Reporting Guidelines (2003 edition)."[Period covered by this report]
This report focuses on the period April 1, 2005 through March 31, 2006. In some instances, the reporting of information about important items not occurring within that
period may also be included.
We are able to carry out our daily
lives thanks to the blessings ofnature. In these times we often
hear terms such as "ecology" andLOHAS (Lifestyles of Health andSustainability). The notion that wemust reappraise and improve ourrelationship with the natural environment is becoming more andmore widespread.
The design chosen for thecover of this year's report employs
the silhouette of a leaf of the tropical philodendron plant, on which
the patterns of two human faces
have been superimposed. This
represents the dialogue between
humanity and nature, as well as
the dialogue between persons. It isemblematic of the call for dialogue
to form the basis for the resolutionof the various issues we face.

[Divisions Covered]This reports covers the CSR efforts of all companies and divisions in the DNP Group.
The data in the environmental section is compiled from a total of 57 sites in 47 of thecompanies included in the Group's consolidated financial accounting, including all 44
of our domestic manufacturing companies, one distribution company, one in-company
food service company, and one equity-method affiliate.

DNP Corporate Profile(as of March 31, 2006)

Company Name Dai Nippon Printing Co., Ltd.
Head Office

1-1, Ichigaya Kagacho 1-chome Shinjuku-ku, Tokyo 162-8001, Japan
Tel: +81-3-3266-2111
URL: http://www.dnp.co.jp/

Ryohei Kojima: Born in 1939 in Iwate.
Graduated in 1960 from the Musashino JuniorCollege of Art, with a degree in industrial design.
After working in San-Ai's publicity section, he
entered Light Publicity in 1963. In 1976, he established the Ryohei Kojima Design Office. He
has since been actively engaged in the design
field--advertising,artistic,public, environmental
and packaging design, in particular. His awards
include the Tokyo Art Directors Club Prize,
the Japan Sign Design Award, the Mainichi
Advertising Design Award Grand Prix, and the
New York Art Directors Club Merit Award.

E-mail: info@mail.dnp.co.jp

Established

October 1876

Capital¥114.464 billion

Employees

8,597 (Non-consolidated)

Sales Offices

45 locations in Japan

Main Plants (including affiliates)
R&D Facilities

35,596 (Consolidated)

21 locations overseas (including local affiliates)
37 domestic plants

7 overseas plants

11 locations in JapanTop Message

Deepening the "TAIWA,"
Looking Toward the Future

Yoshitoshi Kitajima
President
Dai Nippon Printing Co., Ltd.

The Japanese economy continued to recoversteadily in 2005, with the longest economic upturn
so far poised to come into view in 2006. At the sametime, there arose many issues calling to attention
the great influence of corporate activity on society,including the asbestos problem, corporate buyoutsquabbles, falsified earthquake resistance certifications, and accounting fraud. The Kyoto Protocol also
went into full effect, and the need for businesses tomaintain a strong awareness of the global environment increased greatly. There is no question thatbusinesses are assuming an ever more prominentrole in promoting the sustainable development of society.
Since the days before people started talking
about "CSR," DNP has been conducting businesswith our stakeholders, including both our clients andconsumers, in mind, and we have also engaged inenvironmental conservation. One particular exampleof this is the pursuit of the creation of new values
that take into account the many issues confronting
society in advance, as called for in the "DNP Group's
Vision for the 21st Century" established in 2001.
We are proud to have achieved the understanding
and recognition of our stakeholders, in particular ourclients, in the course of our efforts to "contribute to
the creation of an emergently evolving society" inthe five years since the establishment of the DNPGroup's Vision.
It has always been my contention that no "corporate management magic wand" exists. Rather, theimportant thing is to do what obviously needs to bedone, and to build continually upon those achievements. In other words, "focus on the fundamentals."
The DNP Group Corporate Pledge (enacted in 1992)
and the DNP Group Employees Code of Conduct,
which provides the standards for employee behavior,call for the thorough upholding of the fundamental

rules by all employees, including directors, and for
unswerving sincerity in conduct. DNP has received
great recognition for our CSR efforts, beginningwith our receiving the Minister for the Environment's"Reputable Company" Award and "Global Environment Awards" in 2005, as well as achieving 4thplace in the "Best Working Environment" rankings
announced in September by a newspaper company.
These awards provide recognition of the hardworking efforts of each individual member of the DNPGroup, and serve as proof positive of our focus on
the fundamentals.
The DNP announced our participation in of the
UN Global Compact in July 2006. The Global Compact covers ten principles in the areas of humanrights, labor, the environment and anti-corruption to
be maintained by good corporate citizens. The DNPGroup is making efforts to incorporate these ten
principles in our Group management, with the goalof continuing to raise our standards for sincere corporate behavior.
Along with "focusing on the fundamentals," wealso place emphasis on the principle of "TAIWA.""TAIWA" means more than simply conversationor the sharing of information; rather, it represents
the clarification of issues through the mutual exchange of opinions, and the attempt thereby to findsolutions. Meaningful "TAIWA" requires that one establish one's own sense of values while at the sametime recognizing the values of one's partner in the"TAIWA" while at the same time seeking to accomplish the task at hand.
DNP currently offers P&I Solutions*, which synthesizes our printing and information technologies
in providing solutions that meet our clients' needs. A
vital facet of our P&I Solutions is maintaining a solid"TAIWA" with our clients. In addition, by creating a
lively working environment we deepen our "TAIWA"

with our employees, while we build new work systems and structures that correspond to what is
actually required.
I believe that the first step toward creating moremeaningful "TAIWA" is to listen closely to what
the partner in the "TAIWA" is saying. I am certainthat DNP can further enhance our role in society
through the direct participation by every employee
in this kind of daily "TAIWA", thereby achieving aneven greater level trust within society. I believe thatthrough "TAIWA" we can become more attuned tothe issues faced by society, which enable us to contribute to society by grappling with issues directly
and thinking up solutions to them. "TAIWA" is in
this way especially important in the current social
context, in which mutual growth and harmony withsociety are so vitally required.
In October 2006, DNP celebrates the 130th year
since our founding. Our predecessor, Shueisha, wasfounded in 1876, during the rapid modernization ofJapan that took place in the early Meiji period. The
main issues at that time were the economic development to catch up to the level of Western civilization.
The hot metal letterpress printing used by Shueisha
was at that time a leading-edge technology. It represented the company's drive to contribute to thedevelopment of a civilized society, which was expressly called for in the company's regulations. Thisdrive to contribute to civilization lives on in the call to"contribute to the creation of an emergently evolving
society of the 21st century" expressed in the DNPGroup's Vision for the 21st Century established in
2001.
DNP will continue to engage in CSR efforts as
we seek to maintain corporate character and ourconstant drive to contribute to the development ofsociety.

* P&I Solutions: P&I Solutions is encompassed in our DNP Group's Vision for the 21st Century,
which was established in 2001. The concept phrase "P&I Solutions DNP" expresses our business vision, by which we seek solutions that meet our clients' needs through a synthesis of theexpertise DNP has gained over the years in printing technology and information technology.

rules by all employees, including directors, and for
unswerving sincerity in conduct. DNP has received
great recognition for our CSR efforts, beginningwith our receiving the Minister for the Environment's"Reputable Company" Award and "Global Environment Awards" in 2005, as well as achieving 4thplace in the "Best Working Environment" rankings
announced in September by a newspaper company.
These awards provide recognition of the hardworking efforts of each individual member of the DNPGroup, and serve as proof positive of our focus on
the fundamentals.
The DNP announced our participation in of the
UN Global Compact in July 2006. The Global Compact covers ten principles in the areas of humanrights, labor, the environment and anti-corruption to
be maintained by good corporate citizens. The DNPGroup is making efforts to incorporate these ten
principles in our Group management, with the goalof continuing to raise our standards for sincere corporate behavior.
Along with "focusing on the fundamentals," wealso place emphasis on the principle of "TAIWA.""TAIWA" means more than simply conversationor the sharing of information; rather, it represents
the clarification of issues through the mutual exchange of opinions, and the attempt thereby to findsolutions. Meaningful "TAIWA" requires that one establish one's own sense of values while at the sametime recognizing the values of one's partner in the"TAIWA" while at the same time seeking to accomplish the task at hand.
DNP currently offers P&I Solutions*, which synthesizes our printing and information technologies
in providing solutions that meet our clients' needs. A
vital facet of our P&I Solutions is maintaining a solid"TAIWA" with our clients. In addition, by creating a
lively working environment we deepen our "TAIWA"

with our employees, while we build new work systems and structures that correspond to what is
actually required.
I believe that the first step toward creating moremeaningful "TAIWA" is to listen closely to what
the partner in the "TAIWA" is saying. I am certainthat DNP can further enhance our role in society
through the direct participation by every employee
in this kind of daily "TAIWA", thereby achieving aneven greater level trust within society. I believe thatthrough "TAIWA" we can become more attuned tothe issues faced by society, which enable us to contribute to society by grappling with issues directly
and thinking up solutions to them. "TAIWA" is in
this way especially important in the current social
context, in which mutual growth and harmony withsociety are so vitally required.
In October 2006, DNP celebrates the 130th year
since our founding. Our predecessor, Shueisha, wasfounded in 1876, during the rapid modernization ofJapan that took place in the early Meiji period. The
main issues at that time were the economic development to catch up to the level of Western civilization.
The hot metal letterpress printing used by Shueisha
was at that time a leading-edge technology. It represented the company's drive to contribute to thedevelopment of a civilized society, which was expressly called for in the company's regulations. Thisdrive to contribute to civilization lives on in the call to"contribute to the creation of an emergently evolving
society of the 21st century" expressed in the DNPGroup's Vision for the 21st Century established in
2001.
DNP will continue to engage in CSR efforts as
we seek to maintain corporate character and ourconstant drive to contribute to the development ofsociety.

* P&I Solutions: P&I Solutions is encompassed in our DNP Group's Vision for the 21st Century,
which was established in 2001. The concept phrase "P&I Solutions DNP" expresses our business vision, by which we seek solutions that meet our clients' needs through a synthesis of theexpertise DNP has gained over the years in printing technology and information technology.

Promoting CSR

Society has placed its expectations and trust in DNP, and we have responded bycontributing to the development of a rich, emergently evolving society.
CSR means conducting activities based upon our management concept that enhance the role we must fulfill in society. We believe that in this way we can respond to the trust conferred upon us by society.

CSR and Our Management
Concept
DNP's management concept is summed up
as "The DNP Group will contribute to the creation of an intellectually active, rich, and 21st
century society with emergent evolution."In this way we are able to respond quickly
to the issues confronted by a society withdiverse values, and to contribute to society
by pouring our efforts into finding solutions.
DNP takes two approaches toward realizing
the goals of our management concept. The
first is to provide social value through ourbusiness, and we seek to achieve this bypromoting P&I Solutions as set forth in the
DNP Group's Vision for the 21st Century.
The second is to remain fully aware of our influence on society, and to therefore executeall of our activities sincerely while attempting
to view our corporate activities from society's
perspective. The main pillars of this effort
are to be found in our DNP Group Corporate
Pledge and in the DNP Group Employees
Code of Conduct, which sets forth clear
guidelines for the conduct of our employees.
We believe that we can realize the goals of
our management concept by implementing these two approaches simultaneously,
and thereby enhance the role we perform insociety.

Management Concept
The DNP Group will contribute to the creationof an intellectually active, rich, and 21st century
society with emergent evolution.

DNP Group's vision for the 21st Century

New
value
creation

Business VisionCorporate Culture

Providing a wide range of solutions
combining the printing andinformation technology expertise
fostered over the years by DNP.

Our guiding principles aimed atcreating an emergently evolving
corporate culture"Production Solutions""Business Design Solutions"

1. Customers and People's Lives
2. Observe, Listen and Think Carefully
3. Independence and Collaboration
4. Speed and a Spirit of Challenge
5. Openness and Fairness

Integrity
activities

P&I Solutions DNP

The DNP Group's Corporate Pledge
Code of Conduct for
DNP Group Employees

Results of CSR Management in 2005
DNP created an organizational structure consisting of the CSR Committee and the CSR Office, which is dedicated to ensuring that CSR efforts are carried out companywide. In FY2005, the second year since their creation, the CSR organizational
structure has been working to push ahead with effective measures, such as promoting a CSR perspective in each individual
business division and in the management of our affiliate companies. They also have been looking into ways to improve the CSR
consciousness of each employee.
1. The DNP Group CSR Report 2005 has been distributed to all directors and managers (approximately 1/3 of Group employees). Also, each director working as a Division Manager serves as an instructor in educational and consciousness-raisingprograms for division employees, and leads discussion about the CSR issues concerning their particular division.
2. The CSR Office conducted interviews at each business division and affiliate company to monitor the progress of CSR efforts,
and encouraged continuing improvement in CSR consciousness and awareness. It also worked improve CSR achievements
by creating a policy for the Action Plan for each business division in FY2006, based upon each CSR strategy.
3. The Network Learning "CSR Introductory Course" was made available to every employee at worksites with access to the
Network Learning program. The "CSR Introductory Course" was designed by the CSR Office, and by the end of March 2005
it had been completed by nearly all of the 20,000 employees that had been enrolled. It therefore has proved valuable in improving CSR awareness.
4. CSR lectures according to company rank, such as new employee training, Division Manager training, new manager training(for employees promoted from general employee to management), were put in place, with approximately 1,000 employees
participating.
5. CSR training was implemented according to the particular needs of each division. This was tied in with each Headquarters
division, with each management aspect pushed forward according to the CSR strategy. A particular example of this in
the current term was the establishment in connection with the Purchasing Division of the "DNP Group CSR Procurement
Criteria," which extended our CSR efforts to include our suppliers.

Importance of "TAIWA" with
Stakeholders
DNP places great emphasis on "TAIWA"
with all stakeholders. "TAIWA" allows us
to become quickly aware of changes insocial values and new social issues. In
this way we can successfully executegroup-wide management through sincere and responsible activities in areas
such as value creation, compliance withlaws and social norms, environmental
conservation, product safety, information
security, and health and safety.
We are c ontinuing to nur ture an
emergently evolving corporate culture
with a rela xed atmosphere throughrepeated "TAIWA" irrespective of thework place or rank. By encouraging"TAIWA" we are able to create work systems and environments that provide for a
lively approach to work. Active "TAIWA"
is also connected to the enhancementof training programs that support the development of professional staff who areboth independent and cooperative.
Through "TAIWA" in the course of ourbusiness with customers and consumers we are able to discover latent issues
that had not come to the customer's
at tention, in addition to issues that
had already been brought up. This"TAIWA" is shared with employees in theSales, Planning, R&D, and Production
Divisions, and in this way we are able
to offer the kind of solutions that can beprovided only by DNP.
Through "TAIWA" with our trading

partners we seek to develop sharedvalues, cooperate in CSR efforts, anddevelop mutual trust and competitive
strength. While we naturally contribute to the life of our local communities
by paying taxes and providing jobs,"TAIWA" with those communities enables us to share in finding solutions tocommon issues and to work toward local community development.
"TAIWA" forms the basis of DNP'sefforts to understand the expectations
and issues of concern to all of our
stakeholders. By making serious efforts

to resolve these issues we can enhance
our role in society, increase the trust
granted us by society, and improve ourenterprise value. At the same time, thisallows us to improve our accountability
to our shareholders and better meet their
expectations.
As embodied by our management
concept of "contributing to a society
with emergent evolution" DNP seeks torealize a sustainable society and environment by engaging in efforts to resolve
the variety of issues that we discoverthrough the process of "TAIWA".

"TAIWA" is a procss that entails identifying problems and finding solutions through the exchange of viewpoints
and ideas.

Corporate value
improvement/
Shareholders
Information
disclosure

Customers(consumers)"TAIWA"

Employees"TAIWA"

Discover latentissues/Offer
solutions"TAIWA""TAIWA"

DNP

Nurturing an emergently
evolving corporate culture
through dialogue

Employees"TAIWA""TAIWA""TAIWA"

Employees"TAIWA"
Local
communities

Employees

Employees

Information sharing/CSR cooperationand mutual competitive strength
Trading partners

Taxation and employment/
Development of local communities/
Resolution of common issues

Working toward a sustainable society and environment

Endorsement of the
Global Compact
The DNP Group announced its endorsement of the United Nations Global
Compact (GC) in July 2006. The GC
was proposed by UN Secretary General
Annan in 1999, and consists of 10 principles in four categories: Human Rights,
Labor Standards, Environment, andAnti-Corruption.
While the DNP Group Corporate
Pledge and Code of Conduct alreadyrequire the DNPGroup to conduct business inline with these10 principles,endorsement of
the GC provides
the DNP Group
with a further
opportunity todemonstrate our commitment to corporate integrity.

The Global Compact's ten principles
Human Rights

PRINCIPLE 1 : Businesses should support and respect the protection of internationally proclaimed human rights.
PRINCIPLE 2 : Businesses should make sure they are not complicit in human rights abuses.

Labour Standards

PRINCIPLE 3 : Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining.
PRINCIPLE 4 : Businesses should uphold the elimination of all forms of forced and compulsory labour.
PRINCIPLE 5 : Businesses should uphold the effective abolition of child labour.
PRINCIPLE 6 : Businesses should uphold the elimination of discrimination in respect of employment andoccupation.

Environment

PRINCIPLE 7 : Businesses should support a precautionary approach to environmental challenges.
PRINCIPLE 8 : Businesses should undertake initiatives to promote greater environmental responsibility.
PRINCIPLE 9 : Businesses should encourage the development and diffusion of environmentallyfriendly technologies.

Anti-Corruption

PRINCIPLE10 : Businesses should work against corruption in all its forms, including extortion and bribery.

Corporate Governance

We have established a corporate governance system that ensures fair and efficient business management.
DNP's corporate governance efforts have been strengthened. The corporate governance and internal control initiatives describedon this page were determined at the May 2006 Board of Directors meeting.

Current Corporate Governance
SystemDNP has adopted a business divisionsystem that is able to adapt swiftly tochanges in the business environment.
The system is set up so that directors
with specialized knowledge and experience in their respective fields participate
in the management decision-making
process and execute business, whilst at
the same time conducting oversight ofthe business execution of other directors.
Also, corporate officers selected at Boardof Directors meetings are charged with
enforcing items determined at the Boardof Directors meetings. Through close"TAIWA" with directors the opinions of
those involved at the actual worksites arereflected in management.
The Board of Directors is composed of
26 directors, including one from outside

the company. It is normally convened
monthly, and conducts appropriate andswift decision-making along with reportingon the execution of company business.
The directors oversee the execution ofeach others’ business, so that the proper
oversight functions are maintained. The
directors also meet at the Executive
Committee Meetings held monthly to exchange information so that management
decisions can be made efficiently.
DNP’s Board of Statutory Auditors is
composed of five auditors, including three
from outside the company. Each auditor
conducts audits of the business executedby the directors, according to the auditing
standards and responsibilities determinedby the auditors. The auditors keep closetabs on the execution of company business; the independent auditor explains
the auditing plan to the auditors at the
beginning of each term, while hearings
concerning the auditing situation are con-ducted as needed during the course of
the term, and audit results are reported
at the conclusion. The Audit unit has
been established to provide assistance tothe auditors, with a special support staff
working at the auditors direction.
* The external directors and the independent auditors
hold no stake in our company, including personal, asset, or trading relationships.

The DNP Group has established the DNPGroup Corporate Pledge and DNP Group
Employees Code of Conduct so as to improve the compliance awareness of each
employee. The Corporate Pledge and theCode of Conduct provide the standardsof conduct for all employees (including directors and auditors; please see below).
Employees are made thoroughly awareof the stipulations provided in these documents through training programs andother means, with the goal of maintaining
and improving a comprehensive corporate governance system.

DNP Group Corporate Pledge and Employee Code of Conduct
We believe that in order "to contribute to the creation of an emergently evolving
society" - the core of our Management Concept - it is necessary for every one of us
to become aware of his and her mission and responsibilities as a member of thatsociety, and we be allowed to share in its dreams and visions. And for each of us
to act with confidence and pride, we must always keep in mind our responsibilities
to society as we go about our business and our lives. The DNP Group Corporate
Pledge was developed with this in mind to provide a clear standard upon which all
Group employees can base their actions at all times. Top management is taking
the lead in propagating it throughout our organization. In addition, the DNP Group
Employees Code of Conduct contains even more clearly defined standards ofconduct covering items such as compliance, respect for human rights, and environmental conservation.
DNP Group Corporate Pledge• We will be alert and responsive to changes in society and the market, identifying
society's needs and leading the industry in finding solutions, while always approachingissues from the view point of people in their lives.
• We will provide both valuable products and services and original business models byfusing our leading-edge information technology with the printing technology that wehave built up over the years, and by fully utilizing the wealth of knowledge and expertise that we have developed through our long and varied experience in problem-solving.
• We will establish an emergently evolving and dynamic corporate culture in which eachindividual, while taking pride in himself or herself as a self-reliant professional andactively generating and sharing information, collaborates with and respects the individuality of his or her coworkers.
• We will strive to enhance our individual awareness and judgment, and to act quickly
and boldly, with out fearing failure, when faced with even the most difficult challenges.
• We will act in full compliance with legal and ethical standards and also strive to maintain free and fair competition with fair and open activities.
• We will work to preserve the Earth's environment and conserve natural resources tosafe guard the future of humanity.
• We will work to contribute to society through communication and cultural activities, andby becoming good corporate citizens deeply involved with the community.



Corporate Pledge

Code of Conduct

Code of Conduct for DNP Group
Employees
I. Fundamental Attitude
1. Compliance with the law andsocial ethics / 2. Respect for human rights / 3. Maintenance of agood workplace environment / 4.
Consideration for the environment/ 5. Reliability of product safety
II. Handling of Company Information
1. Protection of confidential corporate information / 2. Protection ofcustomer information / 3. Handlingof insider information / 4. Handlingof intellectual property rights / 5.
Use of computer networks
III. Fair corporate activities
1.Compliance with the Antitrust
Law / 2.Compliance with the
Subcontract or Payment Act /3.Compliance with the Truth-inAdvertising Law / 4.Compliancewith security trade restrictions
IV. Other General Matters

Internal Control System Policy
The DNP Board of Directors determined the basic policy for"the creation of a system for ensuring proper business (internal
control system)" in conjunction with the implementation of the
Corporate Law in May 2006. This constitutes one part of DNP's
overall effort to strengthen corporate governance. The main aspects of this policy are as follows.
[System for ensuring that the work executed by directors and employees conforms to all laws, regulations, and articles of incorporation.]
1) The "DNP Group Basic Compliance Regulations" shall be established,
and the Corporate Ethics Committee designated as the organization
responsible for managing the DNP Group internal control system based
upon these regulations.
2) The Product Safety Committee, Information Security Committee, andother headquarters organizations responsible up to now for legal, regulatory, and other controls shall, under the overall management of the
Corporate Ethics Committee, conduct inspections, guidance, and training
programs in the areas under their control.
3) The Information Disclosure Committee shall be established so as
to furnish a system for ensuring the accuracy of financial informationand the timely and proper disclosure of DNP's corporate data. This
Committee shall, under the overall management of the Corporate Ethics
Committee, conduct the timely and proper disclosure of corporate data.
4) The Auditing Department, which is independent of the business divisions, shall conduct the internal auditing, guidance, and educational
programs involved in the construction and operation of the systems necessary for ensuring the proper execution of DNP’s business.
5) The heads of each organization within the DNP Group shall determineautonomously the necessary systems and procedures appropriate to thecontent of each organization, and shall execute, inspect, evaluate, andimplement improvements of these systems and procedures.
6) The “Open Door Room” shall function as the contact point for thereporting of internal information within the DNP Group. The Open Door
Room shall be available to DNP Group employees for the reporting of legal infractions and other matters, and shall initiate the response to thesereports.
[Risk management regulations and other systems]
The creation of regulations and the execution of training programs andother items pertaining to compliance, the environment, disasters, productsafety, information security and other matters shall be conducted by the
Corporate Ethics Committee and other internal organizations, which shallwork to prevent the occurrence of risk and respond promptly when it does
occur. The organizations and directors charged with prompt response to
newly occurring risk shall be established.
[Systems for ensuring proper business within corporate groups]
1) We shall strive for full compliance with the DNP Group Corporate
Pledge and DNP Group Employee Code of Conduct, which govern the
conduct of all employees. In addition, all relevant regulations shall beestablished and prepared based upon the DNP Group Basic Compliance
Regulations.
2) Each DNP Group company shall determine autonomously the necessary systems and procedures appropriate to the content of eachorganization, and shall execute, inspect, evaluate, and implement improvements of these systems and procedures, based upon 1) above.
[System for reporting to the auditors, and system for ensuring that auditors canconduct audits effectively]
1) Directors and employees shall respond promptly when required by auditors to report on the execution of business.
2) The Auditing Department and the Corporate Ethics Committee shallreport to the auditors regularly concerning audit content and the operation of the internal control system.

Corporate Governance and Internal Control System Chart
General Meeting of Shareholders

Audit

Audit

Board of Directors
Representative Director

Corporate Ethics Committee

Guidance
Training

Environmental Committee
Complaint Handling Committee
Central Disaster Prevention Council
Legal and other main divisions

Audit(environmental safety division, labor division, technology division,accounting division, management division,
IP division, legal affairs division)

Corporate Social Responsibility Committee

Coordination

Audit

ReportingAssistance

Audit unit

(Autonomous implementation,
inspection, review, improvement)

Audit

Information Security Committee

Auditing Department

Group companies

Product Safety Committee

Guidance
Training

Business divisions

Oversight of internal controls

Corporate
officers

Audit

Information Disclosure Committee

Head office

Operating units

Accounting Auditors

Audit

Open Door Room

ReportingBoard of Statutory Auditors

Director in charge

Reporting

Guidance
Training

FY2005 Highlights

Offering a Safe, Reliable, and Convenient Life
with the Smart Card
In recent years Japan has gone from cash and credit cards to the full-scale introduction of Smart cards. DNP has a long history of
combining software development with hardware technologies, and has contributed to the evolution of Smart cards with greater
security to provide richer lifestyles.

Smart Card Era Has Arrived
The use of ATMs (automated teller
machines) and cash cards has greatly
affected our way of life. ATMs are now
found not only at banks, but also at otherlocations such as convenience stores.
The ability to access accounts and funds
24 hours a day has led the way to a convenient lifestyle. Unfortunately, in recent
years there has also been a surge incrimes involving cards and ATMs, creating a need for greater security.
DNP became convinced that the time
for secure, multi-functional Smart cards
had arrived. We began our researchmore than 25 years ago, and developed
our own Smart card software. By creating technologies with a balance of hardand software appropriate to the printing
and production of the cards, we are able
to provide reliable quality and technologythat meets the variety of expectations
placed on Smart cards at this time.

World's First Vein
Authentication System
Biometrics is the technology by which
the unique, individual data found in partsof the human body (biological organs),such as fingerprints, veins, the iris, andvoiceprints, are used for identification.
Because this biological information is
unique in every individual, it is enormously difficult to counterfeit or alter.
In 2004, DNP introduced the world's
first Smart card employing vein authentication.
The biometric data for the user's vein
pattern (registered pattern) is encoded
onto the Smart card prior to usage.
When the card is inserted into the ATM,a special device reads the biometric data
(reference pattern), and user authentication is complete if that data matches theregistered pattern on the card. The bio-

Photo courtesy of Hitachi, Ltd.



metric data for the vein pattern is stored
on the card.
In vein authentication, the vein pattern is read without contact being made,and user authentication is made by referencing the registered pattern, making itsuitable for hygienic, public use. The majority of financial institutions have alreadybegun introducing this system becauseof its user-friendliness, precision, andanti-counterfeiting characteristics. Smartcards with vein authentication capability
provide a high level of security to bothusers and financial institutions, and represent one of the most recent technologies
DNP has to offer.

Technologies for expanding theuse of Smart cards
Faced with an increase in theft fromsavings accounts due to the counterfeiting of cash cards, in January 2005 theJapanese Bankers Association resolved
to engage in preventative measures,such as converting regular cash cards
to Smart cards and employing biometricuser verification systems. Nevertheless,a broad array of development factors
had to be considered regarding the issu-

ance of Smart cards, such as Smart card
type, functions, issuance data transfer
systems, issuance systems, and encryption key control systems. A number offinancial institutions were simply overwhelmed. Therefore, in April 2005 DNP
put on offer a standard package with optimal specifications for the card issuanceprocess, based upon the know-how andtechnical abilities developed through the
production and issuance of nearly all of
the Smart ATM cards used by the megabanks. This resulted in great reductions
in both preparation time and costs, making it possible to deliver the Smart cash
cards quickly, reliably, and with security to
the issuing banks and their clients.
We also issued the first Smart cash
cards using two forms of biometric data
verification (finger vein pattern and palmvein pattern) in Japan in May 2006.
Financial institutions are currently using
one or the other method, so we recognized the need for an Smart cash cardthat can use both. By storing both finger
vein pattern and palm vein pattern dataon the same card it becomes possible touse the card at the ATMs of banks otherthan the issuer, improving convenience
for the user.
We have also developed a system

Safety & Convenience of Smart Cards
Takashi Nonaka
Managing Director
Mizuho Bank, Ltd.

W

e were faced with the urgent task of offering an Smart card realizing bothprotection against fraud and multi-functionality at time when the improvement of cash card security and customer service improvement were in demand.
Mizuho Bank had in August 2004 just begun offering a new service, the "Mizuho
Mileage Club," with the goal of offering our customers improved security and convenience, after which we proceeded with the transition to Smart cash cards. We
chose DNP to be our partner in this endeavor because they produced immediate
results in their work to create a multi-functional Smart card, and DNP has thecomprehensive capacity to offer a comprehensive Smart card service package,from software development through production and issuance that is rooted inthorough data management.
DNP has accumulated a deep knowledge of our bank and its needs by participating in thorough dialogue with us up to now. It is our hope that DNP willcontinue to strengthen Smart card security features, and provide an even greaterlevel of innovative proposals and service.

Economic Performancefor providing enhanced security to theincreasing number of users of internet
banking. Proving tests began in thespring of 2006 on a new log-in verification system using, a one-time password
generated by the Smart cash card thatis valid for only a single use, in addition
to the user name and password systemalready in use.

For safe data transfer
While DNP is involved in all mannerof credit card issuing processing, statement printing, fulfillment and distribution,
we receive an enormous volume of personal information from customers in ourplant. We have taken the greatest carein implementing security measures andpreventing data leaks. For example, after
the personal information is encrypted andsaved in media such as a CR-ROM, themedia is transported in a locked trunk by
a secure courier.
In October 2005 we developed a system for the safe transfer of the personal
information between customers and DNP
via the Internet. In this new system, called"Gendarme", personal computers for thedata transfer at both the customer's location and DNP plant employ Smart cards.
In addition to the popular ID and password
system, an electronic ID stored in the
Smart card is utilized for user authentication and for limiting access to the data,
which enhances the level of security.

"Gendarme" means "sentinel" in
French, and is also famous as the nameof a peak of Mt. Hotakadake in the Northern Japanese Alps. DNP chose the name"Gendarme" (registered trademark) tosymbolize a sentinel guarding personal
information.

Outline of Gendarme
Accessed via web browser (Internet Explorer) + Smart card + Desktop security software("TranC'ert,"an application developed by DNP).
SSL

SSL

(Secure Socket Layer)
communication code

Smart Card

(Secure Socket Layer)
communication code

customer
Finger-vein verification

Dedicatedin-house LAN

Internet

PC dedicated to handlingpersonal information
desktopsecurity+

Smart Card
DNP

Data Transfer
CenterConfirmation via
e-mailDNP IDC

Confirmation via
e-mailPC dedicated to handlingpersonal information
desktopsecurity+(Internet Data Center)

Palm-vein verification

Ensures physical security /automatic encoding on the server
User authentication with the electronic ID
stored in the Smart card and ID/password data.
PCs are protected by the TranC’ert desktop security function

Continue Considering the Client's Point of View
Akiko Mikami
Manager, Security
Market Development Division
NEC CorporationPersonal information is transferred when our company issues employee ID
cards. We had been looking into changing over to a new, high-security system because the need for the safe control and use of the personal information isgreater than ever. The "Gendarme" system offered by DNP employs a variety ofmechanisms to ensure safe and secure data transfer. Gendarme uses a highly
secure encryption process for all transferred data, and in addition to transferring
the data through the server at DNP's Internet Data Center it is also capable ofproviding user authentication through an electronic ID stored in the Smart card.
It is my hope that DNP will continue to offer products to society that take the client’s point of view into consideration.

FY2005 Highlights

We Seek to Develop a Workforce of Independent,
We strive to create a pleasant workplace environment in which each member considers his or her own career and life plans andcan perform with energy and professionalism.

"Meister System-Mastership recognition program": Professional craftsmen
We introduced our "Meister System" in 2001, which is focused on our production technicians who possess valuable professional skills. This system is geared to getting back to
the roots of industry by recognizing the importance of professional skills and thereby providing training, evaluation, and benefits. A "Meister" is expected to pass along his or her
superior skills not only within his or her own division, but also within the Group overall.
Of the 20,000 production technicians serving in the Production Division, which is
responsible for the bulk of our manufacturing, those granted the title "Meister" are recognized as having met the following three qualifications:

1) Specialized knowledge, skills, and creativity

Possesses inherent ability, intelligence, and sense. Has gained hands-on experience
working over many years in a specific field, and possesses a high degree of specialized
knowledge and skill. Exhibits a way of thinking, intuition, and sense in executing workthat sets him apart from others. Makes appropriate judgments irrespective of the kindof challenge confronted, displays a creativity that brings results as well as unique skills.

2) Degree of recognition and confidence received from colleagues

Is recognized by all as having superior skills in a specific field. Is trusted without question by people within and outside his or her Division, and his or her presence meansthat work will be executed smoothly.

3) LeadershipIs capable of providing that leadership that allows the passing on of his or own special
skills to subordinates.

"Meister" qualification reviews are held twice annually. As of the spring of 2006, 47 employees had been granted the "Meister" title, including "Meister Engraver" with over 40
years experience designing and engraving stock certificates, "Color Mixing Meister" (inkmixer) capable of mixing ink accurately solely by his own intuition, and others.
All employees earning the "Meister" title
receive a certificate of merit, which isdisplayed along with their photo at every
worksite. They wear a "Certified Meister"
nameplate, and receive a "Meister" stipend.

Meisters Acknowledged in FY2005
DNP Seihon: Hideo Kojima (left)
DNP Media Create Kansai: Yoshio Imanaka (center)
DNP Fine Electronics: Yukihiko Asano (left)"I have been passing on the skills I've developed to my juniors."
Hideo Kojima
Manager/Meister
Production Division
DNP SeihonI

have been working for 37 years in the book production
workshop, where they say that "you need 10 years justto learn to use the brush." In the spring of 2006, I was
granted the title of "Meister." I have done what I can to create a theoretical grounding for the experience and sensethat I have picked up over the years. I tell my younger colleagues to "try to see what the equipment designer had inmind." A clear understanding of the structure of the equipment allows one to think about the process for oneself,
which is of great benefit in quality control.
Now that I have become a "Meister" I feel inspired tolearn even more. I really felt proud to be a part of DNP
when I received the award in June.

10

Social Performance

Cooperative Professionals

Senior Staff System: Still putting know-how and technique to work
The Senior Staff System is a hiring system for DNP Group employees seeking to continue
working after mandatory retirement. The rise in the number people reaching the pensioneligibility age and the phenomenon of an aging/low-birthrate Japanese society are forcingchanges in the social environment. There is also concern that the sudden retirement of
the baby-boom generation will cause a shortage of workers in Japan. The sense of crisis
concerning the handing down of know-how and skill has come to be known as the "2007
Problem." In light of this, and the fact that both the workplaces and the employees havean increasing need for the effective use of the skills and experience that are only gained"on the job," DNP introduced the Senior Staff System in 2000. We sought to partially revise the qualification requirement standards to provide greater clarity and tangibility in accordance with the amendment of the Law for the Stabilization of Employment of the Agedin April 2006.
Basic Philosophy Underlying the Senior Staff System
1) Employees are gaining skills through their own on-the-job efforts that will continue tobe needed by the DNP Group after they reach retirement age.
2) The company offers employees the opportunity to cultivate their abilities.
3) Provide jobs throughout the DNP Group that continue to offer employment opportunities.
4) Seek to match up the needs of the company with those of society by being receptive todiversity in the workforce.
5) To set wages ensuring a fixed standard through combination with public benefits.
We are seeking to expand employment opportunities by offering a range of choices interms of the type of work and contracts available, and to eliminate worries over future increases in the age of eligibility for public retirement benefits.

In-House Venture System: Starting up a new business independently
The In-House Venture System was introduced in 2000 to provide support for
employees who have entrepreneurial
aspirations and want to start an independent new business. The system is tied tothe training provided in the New Business
Development Support Seminar, in which
trainees draw up plans and submit applications through their hands-on new business training. Every year about 20~30
employees apply, and if an applicationis accepted it enters the FS (feasibility)
period, receiving management resources
if necessary. Test marketing is conducted during the feasibility period, withthe final examination conducted at thestage where sales have been predicted.
If approval is granted, the company isestablished. These projects are co-funded by DNP and the employee that madethe proposal (with the company providing
51% or more of the capital). It is possible
for the employee that made the proposal
to be an executive of the venture.
YouTou, which operates a J-League
information website, was founded throughthis program in FY2005, with a total of
five companies created since its inception.

In-house Venture System
Call for proposals begun

Proposals received

Support of new business development
The central player who is involved withbusiness planning and development,
and interested people on the staff.
New business Development
Support Seminar

Examination/accepted
Promoted as a project
Venture business established

Studied and promoted
by related departments

Commercialization
promoted within
the department

I have turned my passion into my profession,and plan to keep at it.
Yousuke Yamada
President
YouTouI

have been in charge of new business development in the Planning Division forthe past 10 years. In March 2003, I created the "Reds Press" website. This site
is an entertainment information service for fans of the Urawa Reds soccer club,providing an Internet magazine that can be checked on a PC or cellular phone.
I am a big fan of sports, and while I had gathered a lot of information about the
Urawa Reds on my own on the Internet since 1998, much of it wasn’t verified.
Therefore, I decided to create a website where I could post the items that I wanted to find out about. We have increased the number of websites we run, such as
FC Tokyo, Vegalta Sendai, and Shonan Bellmare, and membership is in the tensof thousands. In January 2006 we started up YouToo, with the goal of expanding
our consumer-oriented business by building the experience we have gained overthe past three years. My goal is for this company to turn into something that satisfies fans’ demands.

11

FY2005 Highlights

Eco-Report System: Spanning the GlobeDNP has plants and offices in every region of the world, including Europe, the Americas, and Asia. We are moving forward both
domestically and overseas with our own EMS, the "Eco-Report System" (see P53), with the goal of creating harmony with all of
our local communities.

Efforts at overseas Manufacturing sites

Efforts at overseas Manufacturing sites

DNP Denmark

Tien Wah Press

residual
d in recycling
de
ee
cc
su
ve
We ha
away.
used to throw
resins that we
Our company produces and sells
optical screens for projection TVs. To
make the large screens we mix chemicals to create a thermosetting resin,which is poured into a mould hardened with hot water. Up until recently,
we had disposed the residual resin left
over in the resin feeding tank, but byadding new chemicals to the mix that
did not change the total contents it beBent Mejer-Larsen
came possible to recycle the residual
resin. This greatly reduces the amountof disposed resin. Using the recycled resin has caused no sacrifice of quality.

o-Report
effects of the Ec
tic
is
rg
ne
sy
e
th
le
Through
001, we are ab
ned with ISO14
System combi
to issues.
to give clarity
Tien Wah Press acquired ISO14001
certification at its Singapore plantin 2002, and at its Johor Baru plantin 2005. The synergy achieved by
combining this with the Eco-Report
System gives greater clarity to issues,
making it possible to continue making
improvements at production facilities. The Singapore plant was able tocut VOC emissions by 41% over the
Sahizan Abdul Hamid
previous year byswitching its film
laminating system from solvent-based to heatbath adhesion.

ISO14001 certification

Efforts at overseas Manufacturing sites

DNP Photomask Europe
O14001
forward with IS
We are moving
acquisition.
As a member of the DNP Group, ourcompany has been working to create
an environmental management system that will meet the requirements ofsociety and our customers, continue
to improve environmental performance, and increase efficiency. This
resulted in our acquiring ISO14001
certification in April
2006. We will continue to work hardin this area.

ISO14001 certification

12

Efforts at overseas offices

We have reduced paper usage at our offices.
We redoubled our efforts to reduce paper usage at our offices
in conjunction with the implementation of the Eco-Report System. These efforts are continuing through measures focusing
on the thorough elimination of waste and loss in paper use in
our offices.

Albert Trimarchi

Hung Shih Han, Ho Chia Lin, Liao Chien Hui
Taipei OfficeDaphne Takahashi
San Francisco OfficeEnvironmental Performance

Efforts at overseas Manufacturing sites

Efforts at overseas Manufacturing sites

DNP Indonesia

DNP Electronics America

ation toronmental educProviding envi
our employees.

At DNP Indonesia we are putting
particular effort into our employees’
environmental education. Rather thanmerely requiring them to acquire new
information passively, we encourage
the deepening of understanding ofenvironmental conservation throughdialogue with employees. We will seek
to implement a future approach that isboth global and local by implementing
the Eco-Report System.

Agus Cahyo Syamsu

unwanted
rts to eliminate
fo
ef
g
in
ak
m
e
We ar
oduction.
by improving prproduct waste

DNP Electronics America uses the
Employee Improvement Proposal
System and Skill Education/Evaluation System in our efforts to implement
production improvement through employee participation. We have greatly
reduced the volume of protective materials used for protect the quality ofpartly-finished products by revising ourmanufacturing process. Also, we arehaving success in cutting unwanted
product and industrial waste throughour efforts to improve our yield rates.

Paul Willoughby

Efforts at overseas Manufacturing sites

DNP IMS America
ssMaking progre
ogram.
conservation pr
gy
er
en
r
ou
with

Catherine R. Cummings
Silicon Valley Office

Wang Bing
Shanghai OfficeDiane Smith
Los Angels Office

We focused on reducing our useof electricity in FY2005. In addition
to installing a high-efficiency lighting system inside our plant, we are
employing dimmers that function automatically through the use of timers
and photocells. We have also repaired
defects in our air conditioning equipment, and have made adjustments forincreased efficiency. These measures
have resulted in an energy efficiency
improvement per man-hour of 22%
over last year.

Ernie Giavedoni

Kan Jeon Hee
Seoul Office13Communications

We place great emphasis on “TAIWA“ with stakeholders in our CSR efforts.

Through "TAIWA" we are able to deepen mutual understanding with stakeholders and uncover the issues they are faced with. By
working to find solutions to these issues we believe we can contribute to the growth of society.

Communications with different
categories of stakeholders
DNP believes that the building of a relationship of trust by engaging in thoroughStakeholders

stakeholder communications and the solid fulfillment of accountability are vital tocreating effective "TAIWA". We therefore
offer information meeting our stakeholders through a variety of media, in addition
to which we create "TAIWA" and elicit
Communication venues

Communication media

General Shareholders Meeting
Individual meetings with investors, plant tours, strategic
technology seminars, etc.

Shareholders andinvestors

Customers (consumers)

stakeholder opinions by taking a proactive approach to distributing surveys andholding discussions and forums.

Advertising
Information exchange through trade groups
Solution seminars (Seminars offering optimum solutions
for communication issues between corporations and consumers)
Participation in various business show
Client surveys, etc.

WebsiteShareholders newsletter (DNP Report)
Annual report
CSR Report, etc.
WebsiteCorporate Brochure
CSR Report
Pamphlets concerning our products and services
Our showrooms
Marketing dispatch (Informational magazine that approaches marketing from a "corporate and consumer
communication" perspective)
Solution dispatch (Informational magazine that presents
optimal solutions for corporate and consumer communication issues), etc.

Employees

Manager consultation (Management By Objective System)
Employee surveys
Life Planning, Mental Health, and other employee consultation offices
Employee social gatherings
Open Door Room, etc.

Intranet
In-house magazines/video reports
CSR Report
In-house magazine "Healthy Life"
Mental Health Guidebook
Second Life Design Book, etc.

Trading partners

Trade talks and information exchanges during follow-ups
Meetings for explanation of CSR Procurement Criteria
Inspections of purchased products for chemical content,etc.

WebsiteBasic Procurement Policy
DNP Group CSR Procurement Criteria
CSR Report
Green Purchasing Guideline
DNP Group Management Criteria for Chemicals, etc.

Local communities

Plant tours, acceptance of internships at plants
Dispatch of lecturers to educational institutions
Community cleanups
Community environmental conservation activities
Participation in local events
Local disaster, crime, and fire prevention
Lending of facilities
Internships
ggg, ddd, CCGA, etc.

WebsiteCorporate Brochure
Employment Guide
CSR Report
Graphic Design Annual, etc.

Web site
CSR Report:
once/year

In-house magazines:
4 times/year

14

Annual Report:
once/year

Graphic Design
Annual: once/year

Corporate Brochure

In-house video reports:
twice a month

Employment Guide

DNP Report(shareholders newsletter): 4 times/year

Plant tours

[DNP P&I Solutions Seminar]
DNP holds regular DNP P&I Solutions
Seminars to support the realization of
optimum corporate-consumer communications. We demonstrate and provide
examples of a variety of solutions forresolving issues arising in corporateconsumer communications, and eachseminar is attended by large numbers ofcorporate representatives.

Emergent Evolution Survey

Communication with students

When DNP announced its vision for the
21st century in 2001, it also began tomonitor our employees and customers.
It repeated the survey in 2003 and used
it to promote improvements that would
enable it better to meet the needs of bothgroups.

DNP works hard to engage in "TAIWA"
with university students, who will leadthe next generation. DNP participatedin the Corporate Staff Dispatch Course
held by the Keizai Koho Center in May
2005. The goal of the course was foruniversity students to get a real senseof the most recent trends in Japaneseindustry, with the course being taught
by actual corporate employee lecturers
sent to universities by the Keizai Koho
Center. A lecture entitled "The DNA of
CSR Solutions in Management Strategy"
was held for third- and fourth-year university students as part of the "Considering
Corporate Social Responsibility (CSR)"
course offered by the Keio University
Faculty of Business and Commerce. In
addition, DNP dispatches lectures tomany other universities so as to maintaincommunication with students.

[Employee Surveys][CSR Communication Seminar]
We h o l d o u r C S R C o m m u n i c a t i o n
S e m i n a r s a t l o c a t i o n s i n To k y o
and Osaka in coordination with theEnvironmental Control Center and theShin Nihon Environmental and Quality
Management Research Institute. This
program is designed to support the CSR
efforts of companies at a time in which
the importance of CSR in corporate communications is sharply increasing.
These seminars have been held since2000 (through 2004 they were entitled"Environmental Report Preparation
Seminars"), addressing and analyzing thelatest CSR communication know-how andtrends. The 2005 seminars were attended
by the representatives of approximately
160 companies.

The September 2005 survey addressed
the issue of moving forward with P&I
Solutions. It called attention to the necessity for connections and information
sharing among the divisions.
These results were incorporated inaction programs (medium-term plans) of
the individual divisions, which clarified
the roles and strengths of each divisional
and individual, and set forth measures
to promote a structure and system tofacilitate interchange. In particular, aneffort was made to foster awareness in
the individual employee of being part of awhole in all of his or her doings, with theemphasis being placed on communication and collaboration in the workplace,divisional mental dealings, and a wide
range of other settings and relationships.
Specifically, we worked to expand theemergent-evolution support systems andefforts for which there was a greatest
demand, including the introduction of an
intracompany exchange study program,use of the company’s intranet network
to re-energize our information exchange
venues, etc. In addition, we have put together trans-divisional task-force teams
comprised of specialized sales and planning sections with people well-versed in awide range of products and services andthose with expertise in a particular field.
We also have established similar overarching project teams to identify common
customer problems and issues. We arethus working to bolster our ability to provide solutions to customer needs.

[Customer Survey (interview method)]
Concurrent with the employee survey, we
conducted an interview survey of 17 clientcompanies. Regarded as the unadulterated firsthand views of the customer andmarket, the results were fed back to therelevant division and used to assist us inproviding services and quality that offer ahigher level of satisfaction, and were incorporated into measures to enhance our
P&I Solutions.

Corporate Museums
in Kansai
DNP published this guidebook,"83
Corporate Museums and Resource
Centers", which lists locations such as art
museums, resource centers, and field trip
facilities in four counties in two prefectures in the Kansai area, and distributed it
free of charge to 708 elementary schools
in the Kyoto/
Osaka/ Kobe area.
It was createdfor use in field trip
selection in school
courses, background knowledge,
and study at home.

15

Economy

DNP and Economic Activity
DNP was founded in 1876 for the purpose of making a contribution to the rapid modernization of Japan occurring at that timethrough its core printing business. At the end of World War II, DNP continued to support the drive toward creating a rich lifestylethrough printing technology, in particular through the application and development of "expansion printing." In the 21st Century,
DNP will continue to engage in new value creation by developing its P&I Solutions, which creates a synthesis of printing and information technologies.

Business of Civilization
Our predecessor, Shueisha, began operations in 1876
and took up the challenge of familiarizing the youth ofJapan with the Western ideas and information necessary for Japan to take its place among modern civilized
nations. The printing company's mission of propellingmodernization through the printing business is symbolized by stipulations in the company's regulations on the"business of civilization".

Shueisha at its founding"Kaisei Saigoku Risshihen"("Self-Help": by Samuel Smiles)

Dissemination of hygienic
individual containers

Offering functional
living spaces

Dissemination of color TVs
made in Japan

Paper container printing

Construction material printing

Shadow mask

Expansion Printing
In the period after WWII, DNP expanded the applicationof the printing technologies developed since its founding to areas such as interior materials, packaging, andelectronic products. This was the beginning of expansion printing. We are also engaged in making advancesin the security technology necessary for cash vouchersand credit cards, as well as the digital technologies thatprovide for media diversification. We continually strive torealize ever more advanced information communications.

16

Digitalization of data

Diversification of media

CD-ROM edition of the "Kojien (Japanese dictionary) 3rd Edition"

Portal site Media Galaxy

Security technology"Print club" boom

Smart Cards

Dye-sublimation transfer materials

Economic Performance

Environmental- and health-conscious living spaces

Child safety

Food safety

WS Safmalle

KIDS IN FEEL

Aseptic filling system for PET bottles
Photo courtesy of FUJITSU LIMITEDEntertainment information service

Stronger security

P&I Solutions

Urawa Reds fan site: "Reds Press"

In the 21st Century society, DNP seeks to offer solutions to latent issues that had not cometo the customer's attention, in addition to thosethat have already been brought to our attention.
"TAIWA" is the key to discovering these latent issues. Through P&I Solutions DNP offers strong
support for the growth of a sustainable society.

Palm-vein verification
Smart Cash Card

MEMS (Micro Electro Mechanical Systems)
Three-dimensional accelerator sensor chipof 0.9mm square

Universal design

Base for next-generation industrial technology

Elbow pouch®

Trend analysis

Photomask original of blood capillaries

Word of mouth follow-up site using keywords [BLOG360]

Diffusion of digital printing

Revascularization through print technology
Self-printing system "Print Rush"DNP announced the "DNP Group's Vision for the 21st Century" in 2001, wherein we set forth our goal of "contributing to thecreation of an emergently evolving society of the 21st century."
The 21st Century society is an emergently evolving society in which there is a diversity of values held by individuals, and asthese values converge they in turn create new values. DNP is moving forward with P&I Solutions, which synthesizes our printing and information technologies in providing solutions to the issues arising from the creation of these new values. DNP seeks
in this way to support universal design, environmentally-conscious products, advanced data communications, and safe andsecure lifestyles, and to contribute to upgrading the electronic technologies that play a large part in their success.

17Financial Data/Results of Each Segment

We have increased sales and profits by promoting reform

The DNP Group--engaged in a wide range of businesses. Within a severe business climate, we have promoted reforms in bothour operational and cost structures based on our concept phrase of P&I Solutions DNP, achieving record sales and profits in theprocess.
Printing encompasses a wide range
of operations, from its Information
Communication segm e n t - i n c l u d i n gpublishing and commercial printing,
Smart cards, and network-related businesses - to its Lifestyle and Industrial
Supplies segment - including packaging,decorative interiors, information media
supplies and industrial supplies - and its
Electronics segment - including display
components and electronics devices.
Beverages operations involve theproduction and marketing of cola andjuices, mainly through the Hokkaido
Coca-Cola Bottling.
At the base of our printing operations lies the fundamental concept of P&I
Solutions DNP. The "P" in P&I refers toprinting technology, while the "I" refers
to information technology. DNP is working to provide customers with solutions
combining the printing technologies it has
cultivated over many years with the infor-

mation technologies it began developingin the early 1970's.
In addition to developing our business and offering products and services
corresponding to customer needs, in
FY2005 we initiated group-wide efforts to
reduce costs through our "Manufacturing
21"activities, working hard to maintain ourbusiness results. As a result, consolidat-

Net sales (billions of yen)

Operating Income (billions of yen)
1,507.5

1,500
1,311.9

1,309.0

1,354.1

1,424.9

1,200

ed sales for the term were¥1.5075 trillion,
with consolidated revenues of ¥120.6 billion, consolidated profits of ¥124.7 billion,
and consolidated term net profits of ¥65.1
billion. We therefore achieved our best
results ever for consolidated sales, consolidated revenues, consolidated profits,
and consolidated term net profits.

DNP Group's Consolidated Business Results (FY ending March 2006)
Net sales

1,507.5 billion yen (up 5.8% over the previous term)

Net operating Income

120.6 billion yen (up 0.1% over the previous term)

Ordinary Income

124.7 billion yen (up 3.5% over the previous term)

Net Income

65.1 billion yen (up 8.8% over the previous term)

Ordinary Income (billions of yen)

150

150
120.5

120

120.6

120.4

120

102.4
900

89.8

90

600

60

60

300

30

30

'01

'02

'03

'04

'05

Net Income (billions of yen)

0

'01

'02

'03

'04

0

'05

Total assets (billions of yen)/ROA (%)

80
65.1
60

1,600

52.9

10

1,432.4

1,450.0
(6.1)

1,200

1,513.7(6.6)

1,600.1

'02

'03

'04

'05

(7.7)

1,200

1,662.3
8
(7.6)

8

946.9
900

942.0

978.7
(5.5)

1,007.9

1,063.3
(6.3)

600
28.7
15.6

6

(6.0)

6

(5.1)

40

20

'01

Total Stockholder's Equity (billions of yen)/ROE (%)

2,000

59.9

97.2

74.7

72.2

0

88.1

90

124.7

800

4

400

2

0

0

4

(3.0)

300

2

(1.7)
0

'01

'02

'03

'04

'05

'01

'02

'03

'04

'05

0

'01

ROA is calculated using
recurring profits.

18

'02

'03

'04

'05

ROE is calculated using
current net profits.

0Economic Performance

Segment Breakdown of Sales for March 2006 Fiscal Year
5.1%

19.7%

Information Communication

43.5%

Lifestyle and Industrial Supplies
Electronics
Beverages

31.7%[Information Communication]
Books and periodicals: Magazines,
books, etc.
Commercial printing: Catalogs,
pamphlets, posters, leaflets, etc.
Business forms: Passbooks, various types of cards, IPS (Contract
service for personal printing andsending through data entry), etc.
Other: Multimedia planning andproduction, database business, network business, etc.

Net Sales

600
Smart cards
Magazines

Catalogs and pamphlets

Printing
Beverages

400

80
619.9
40.0

640.6

629.8
43.6

662.4
51.0

49.3

0

20

'02

'03

Net Sales

'04

'05

(billions of yen)

80

600

60
420.1
28.5

449.9

426.0
32.4

479.9
37.5

36.0

200
PackagingInterior materials

00Operating income(billions of yen)

400

60
40

800

40
20

'02

'03

'04

'05

0

Printer ink ribbons[Electronics]
Displays: LCD color filters, plasma
television back-planes. CRT television shadow masks, etc.
Electronic devices: Semiconductor
photomasks, lead frames (semiconductor chip connection terminals),etc.

(billions of yen)200

[Lifestyle and Industrial Supplies]
Packaging: Container packaging materials for food, beverage,
confectionery, daily necessities,
medical and other products
Decorative materials: Exterior andinterior finishing material for homes,
furniture, etc.; decorative sheet
metal; etc.
Industrial supplies: Optical film fordisplays, printer ink ribbons, facsimile ink ribbons, etc

Operating income(billions of yen)

800

Color filters

Net Sales

Operating income(billions of yen)(billions of yen)

400

80

300
200

208.3
28.3

269.6

236.4
33.0

296.7

39.6
37.8

100
Photomasks

0'02

Net Sales

Production and marketing of beverages through Hokkaido Coca-Cola
Bottling.

80

'03

71.8

'04

'05

0

Operating income(billions of yen)(billions of yen)

69.7

72.9

76.4

60

4
3

40

2

1.6

20
0

40
20

[Beverages]

Beverage products

60

1
-0.1

-0.3

'02

'03

0.2
'04

0

'05

19

P&I Solutions (Research & Development)

We are responding to diverse issues by synthesizing print and information technologies
and offering new products and services.
We are responding to diverse issues by synthesizing print and information technologies and offering new products and services.

20

28.6
28
26

26.0

26.3

'03

'04

24
22
20

'05

[DNP's Technology Development](1) More advanced information processing
The information processing
technology wehave cultivatedin printing,which is atechnology forconveying
information,
has continued to become ever moreadvanced in conjunction with thedevelopment of a networked society.
We are developing our Information
Processing Solutions, which imparta personalized element to mass
production, as well as modularized
information processing products suchas technologies for data protection,
Smart cards and RFIDs.

(3) Increasingly intelligent materials
Incorporating
more sophisticatednanomaterials
technology inprinting techniques will
enable us tomake productswith more sophisticated and complex
functions. Other areas of interest
include gas-barrier packaging thatwill enable the long-term storage ofprocessed foods, safe and environmentally-conscious building materials,
advanced optical film for clearer displays, and digital photo materials. We
are also beginning to turn our attention to the bio and energy areas.

DNP technology: advancement seeking an emergently evolving society
RecommendationengineData filtering
Data mining
Network security

Information
processing
solutions

p
vel
-le
h
h ig

gly
sin
ea DVD

CD-ROM
Lead frames

e
roc

ss

f inf
ing o

MPEG-4 module
MicroElectroMechanical
Systems

RFID system

Smart cards
Photomasks

In

(2)

gly

sin

a
cre

c
pre

rns

tte

a
ep

is

Printed circuitboardsEmergently
evolving
societyormation

Biomaterial

Organic EL
displays

Digitalphotomaterials

Fuel cells

Color filters for LCD

s[Future of Research and Development]
Information is rapidly exchanged at a
broad variety of levels in today’s emergently evolving society, and the speed atwhich market trends and technologicalchange is accelerated correspondingly.
The possibilities for the application of
printing technologies in a wide area offields are also under intense scrutiny.
Therefore, it is now more important
than ever to grasp quickly and accurately
how society is evolving and what issues
are arising, to see into the future, create
scenarios, and thereby develop technologies that offer the right solutions.

(billions of Yen)

30

ia
l

[Research & Development System]
Our Research & Development Divisiondevelops the seeds of solutions in a
broad range of R&D fields, and createssystems that take the commercializationof these seeds into market.
The Research & Development
Division consists of the Research &Development Centers (8 specialized laboratories), the Nano-Science ResearchCenters (two specialized laboratories),
the Media Technology Research Center,
the Technology Development ResearchCenter, and six business specific laboratories (Packaging, Decorative Interiors,
Opto-materials (Formerly Advanced
Industrial Supplies), Information Media
Supplies, Display Components, andElectronics Devices). They all work closely with our business operations in seeking
to create new values.

A Investment of Research and Development

at
m
nt

er

We thus believe that the very foundations of our CSR efforts are formed by
the contributions we make as a company
through our principal operations. Our aim
is to create new values, as we work to
enable their demand and solve issues ofour customers and, further, the people
at large, by intergrating information technology with the printing technology andtechniques we have cultivated over theyears.
Our Business Division maintains close
communications with clients so as toshare the actual demands they have. The
Research & Development Division thendevelops original technologies and plants"the seeds of a solution." We respond to
the trust bestowed upon us by our clientsby offering the most advanced solutions.

(2) More precise patterns
Printing,
which is thelarge-volume
reproductionof precise
patterns, isa production
technology forwhich we seek
thoroughgoing improvements andadvances. We are, for example, developing semiconductor photomasksthat require ever smaller nano-scale
circuits, as well as ultra-miniature
three-dimensional structured Micro
Electro Mechanical Systems (MEMS),
Ink Jet Technology, and manufacturing
innovations for display components
using printing technologies.

Strong efforts toward maintaining"TAIWA" are vital to this process. DNP
seeks to conduct solid "TAIWA" with society, and to base our R&D theme design,
progress, and evaluation upon what welearn from it.

(1
)I
nc
r

Our Research & Development
Efforts

Shadowmasks

Printing
technology

asi
ncre
(3) I

y
ngl

i

e
llig
nte

Gas-barrier packaging

Advanced optical film

Environmentally-conscious
decorative materials

P&I Solutions (Intellectual Property)

Economic Performance

We are creating an environment conducive to active progress in value creation.

We are seeking to create a new atmosphere in which the R&D, Planning, and Sales Divisions can work and respond swiftly regarding all issues related to intellectual property, and we are making efforts to handle intellectual property with high added values.

Basic Policy
In order to make intellectual property (IP)a major source of corporate revenues,
each of DNP's business operations has
formulated an independent IP strategy
and has drafted a business strategy that
includes the development and use ofpromising IP.
DNP provides all employees with education and training regarding intellectual
property in order to cultivate a corporate
culture of fairness in which we both assert our own rights when appropriate andrespect the rights of other companies. In
addition, we actively offer IP-related consulting and planning support services.
[Framework for Promoting IP Rights]
DNP's IP-protection framework consistsof four sections and employs six in-houseattorneys. The Patented Technology
Section addresses IP related to basic
research and DNP's main business segments: Information Communication,
Lifestyle and Industrial Supplies, andElectronics. The Licensing Section handles contracts and legal issues related
to IP. The Kansai Intellectual Property
Section handles both patent and licenserelated functions for Kansai and therest of western Japan, combining thefunctions 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 isassigned to each development base inJapan, so that our IP activities can beclosely linked to our business operations.
So that we may promptly handle IP issues in the US, we have a representativeat a Los Angeles law firm who deals with
the International Trade Commission (ITC),
researches patents and contracts with
US companies, and gathers information
about IP-related matters in the US.
[Outline of Activities](1) We promote dynamic collaboration
among business operations andactively educate employees about
intellectual property so as to support
the generation of intellectual property
that has a good deal of commercial
value, build skills among employees,
and use our overseas resident system
to appropriately develop rights andmaximize the potential of development results in each region.
(2) In order to develop intellectual
property that we have already created and increase its technologicaland commercial value, we work on
strengthening communication with
relevant government bodies andevaluate the performance of outside
patent offices(3) We support the work of our business
operations by evaluating and organizing intellectual property related
to important themes - both our own

property and that of other companies- in order to effectively use IP for
which we already own rights as partof DNP's business strategy.
(4) In order to deal with IP-related issues that arise in connection with ourbusiness activities, we provide legal
support by studying legal implications
and giving opinions.
Number of patent disclosures
800

600

400

200

0

'03

'04

'05

'04

'05

Number of patents andutility model rights held
2,500
2,000
1,500
1,000
500
0

'03

Information Communication
Lifestyle and Industrial Supplies
Electronics

Basic Research

Other

IP Framework
Patented Technology Section
Lifestyle andIndustrial Supplies

In-house attorneys (6)Electronics(1) Discover patents, utility modes, and designs; acquire rights (2) Promote use of IP in business activities(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 business activities (4) Public
relations related to patents, etc.

Basic ResearchProtect and make use of innovations that resulted from research and development activities(1) Support 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

Information
Communication

R&D Center
Technology Development Center
Operational divisions

Overseas representatives(1) Handle IP-related contracts (drafts, review, etc.) (2) Support all types of business activities related to IP:
trademarks, designs, 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 aspect of 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

21

P&I Solutions (Toward Advancing the Information Society)

DNP is in the business of receiving, processing, and providing information, so the protection of information is our greatest responsibility.
Information security and privacy protection are major issues in the ever-advancing information society.
DNP is using the know-how and deep understanding gained over many years in striving for the better protection of information.

Information security
measures / Personal
information protection policy[DNP's Efforts and Social Mission]
DNP has been involved for 130 years in
the printing of such important documents
as stock certificates, passbooks, andquestions for university entrance exams.
Over time we have developed a highdegree of know-how and understanding
about the prevention of counterfeiting andleaking of information.
DNP currently offers products andservices that involve the receiving of
personal information from clients or thecollecting of personal information as aproxy for our clients, such as the printingof rosters and albums, the creation andsending of direct mail and applications,the issuance of cash cards and credit
cards, and the development and operation of client databases. We anticipate an
expansion of these types of business inthe future.
DNP believes it is our mission as

Personal Information
Protection Efforts[Organizational Measures](1) System Maintenance
Beginning with the establishmentof the Office for the Protection of
Personal Information in April 1999,
we have made changes in Japan andabroad, and conducted reviews forthe purpose of further strengthening
our information security measures.
Currently the DNP Group Information
Security Committee has been inaugurated at headquarters, as an umbrellaorganization for the entire company.
Furthermore, an Information Security
Committee will be inaugurated inoperations and Group companies
that are the core of our businesses.
The company committee consistsof a Committee Chief and persons
responsible for managing personal information (the head of each division).
Managers, auditors, and inspection
managers will be set up according toeach issue such as education, security regions, and computer measures.
(2) Maintaining Internal Procedures andRules
Procedures and rules regarding
personal information at DNP include
the Personal Information Protection

22

Personal Information Protection Policy
1) Comply with laws and regulations related to personal information
protection; strive to protect personal information.
2) Take reasonable safety precautions to prevent illegitimate access topersonal information, and to prevent the loss, destruction, falsification orleakage of such personal information. In the event that such a problem
should occur, take prompt measures to correct the situation.
3) Specify reasons for using personal information; acquire, use, and provide
personal information in fair and appropriate ways.
4) Respond appropriately to anyone whose personal information we hold ifthat person lodges a complaint, inquiry, or a request regarding their own
personal information, such as a request to disclose, correct, or stop using
the information.
5) When the performance of services on behalf of a client company involves
the handling of personal information, use the information only within thescope of the requested services.
6) Establish in-house regulations concerning the handling of personal
information; build, maintain, and continuously improve related systems.
a company to handle the products weprovide to clients and the data entrusted
to us under conditions of utmost safety
and security, and to offer our services

accurately and without error. We treat
information security measures and personal information protection as the mostimportant of issues.

Structure of DNP Group Information Security Management

Head Office
DNP Group Information Security Committee
Committee Chief, Manager for protecting personal information, Committee member

Framework for Promoting Information Security Within Operational
Divisions and Group Companies
Information Security Committee
Committee Chief, Person responsible for managing personal information(General managers of operations and presidents of group companies)
Person responsible for auditing and inspection
Information Security Promotion Office Manager
Information Security Manager
Person responsible for education
Person responsible for security area measures
Person responsible for public relations
Person responsible for Information Security measures

Regulations (implemented in 1999,
revised in 2005) and the Employee
Information Protection Regulations(implemented in 2004). In 2002 wereviewed our various related regulations regarding our overall information
security, and formulated a new sys-

tem for the basic policy for information
security and basic regulations thereof.
Under these regulations, we have established seven standards, including
those for document management, theuse of computers, and off limit areas
for those who do not work for DNP.

Economic Performance(3) Establishment of a Management System
DNP has been promoting the establishment of a management system basedon JISQ15001, which is a standard forthe thorough compliance with laws andthe management of the protection of
personal information, for all offices whichhandle personal information. Also, DNP
has been actively seeking the acquisitionof "privacy marks," which are given to
offices which maintain operation procedures and management systems in linewith JISQ15001, as well as of BS7799
and ISMS, which are standards for the
implementation of information security
management. Six divisions acquired"privacy marks" in FY2005, while two divisions acquired ISMS.
<Business operations and Divisions that acquired certification> (As of June 20, 2006)

briefings for our staff
employees.
Our efforts outside
the company include
participation in theediting of "Personal
Information Protection
Q&A for the Printing
Workplace", pubGuidebook
lished by The Japan on computer virusesFederation of Printing
Industries, as well as dispatching lecturers to the briefing held for it.

during repairs or when the PCs are discarded (lifecycle control), reduces work
stoppage by permitting prompt replacement or installation of new units during
breakdowns, optimizes trouble response,and strengthens safety measures taken
for earthquake occurrence.
[Technology-velateg Measures]
All of the internet servers we operate forhandling personal data are evaluatedtwice annually to ensure that all aspects,
from set-up and development throughoperation, are functioning according tocompany standards. We also require theuse of security checking diagnostic tools
and corrective measures based on paired
results, and by doing so have built andoperate a safer, more solid Web server
system.

[Physical Measures]
We have implemented a system for the
consolidated installation of Windows
PCs. Doing so provides consistency insecurity measures during computer use,thoroughly prevents information leaks

Divisions that have acquired the Privacy MarkDai Nippon Printing, IPS Operations
Dai Nippon Printing, C&I Operations
Dai Nippon Printing, Information
Communication Kansai Operations
Dai Nippon Printing, Commercial Printing Operations
Dai Nippon Printing, DAC Department
DNP Digitalcom
DNP Uniprocess
DNP Logistics
DNP Information Systems
DNP Media Create Kansai
DNP Tokai
DNP Data Techno Kansai
DNP Hokkaido
DNP Media Create
DNP Tohoku
DNP Data Techno
DNP Total Process BF
Multi Print

Acquisition of ISMS and BS7799 certification
Dai Nippon Printing, IPS Operations(for obtaining ISMS only)
DNP Facility Services(for obtaining simultaneous certification)
DNP Digitalcom (for obtaining ISMS only)
DNP Data Techno Kansai(for obtaining ISMS only)[Measures for Human Resources]
DNP has implemented information security training using network learning, an
in-house training tool geared toward employees using personal computers. Our
goal is to increase the consciousness ofeach employee through training and education. We have also created guidebooks
and videos (in Japanese and English)
for education about anti-computer virus
measures, for use by all Group employees. We have convened six information
security courses, taught by intellectualsfrom all related fields, focusing on our
technicians. High-level, practical training
and promotion programs in addition tothese include national conferences andMain Training Courses and Conferences in FY2005
Information security training via the network
August 2005 ~ February 2006

Anti-virus measures Approx. 20,000 enrolled

May 2005

Introduction to information security Approx. 1,100 enrolled

Computer virus measure reference materials
May 2005

Guidebook on computer viruses (Japanese/English) Approx. 31,000 publishedMay 2005

Video on computer viruses (Japanese/English) Distributed to approximately 450 departments

Information security course for technicians (6 in total)
November ~ December 2005

"Basic Course," "Encryption Technologies," "Biometrics" "Electronic ID," "Network
Security," "System Vulnerability." Cumulative total of approx. 700 took courses.

National conferences and briefing on information security for staff employees
May/November 2005, February 2006 National conference on information security for promotional staff
May 2005

Briefing on vulnerability of internet servers handling personal information for technical staff

September 2005

Briefing on anti-virus measures for technical staff

The Japan Federation of Printing Industries
March 2006

Briefing on "Personal Information Protection Q&A for the Printing Workplace"

Flow chart for the consolidated installation of Windows PCs

PC
procurement

Equipment
arrangements

Local
delivery

Model choiceArrange disccopy, storage ofmaster CD

Delivery:Equipment
shipping

Operation

Maintenance

Equipment
updating

Placement of
information desk

Response to
breakdown,
exchange

Data deletion
Discardequipment

23

P&I Solutions (For Quality Improvement)

We are proud of our Production Division, and never compromise in seeking to provide
the world's best products and services.
The offering of safe, high-quality products and services is fundamental to the Production Division, and receives top priority.
We are working to ensure safety, acquire an array of certification, and improve risk management.

Product Safety
Our basic policy regarding product safety
is to work to fulfill our social responsibility
by not only producing products consistent
with the relevant standards and laws, butalso exceeding the needs and expectations of customers.
We established the Product Safety
Committee at Headquarters and ineach operation and Group company inNovember 1994, to provide a framework
through which we could promote productsafety. In our system, the Headquarters
Product Safety Committee establishes
product safety guidelines, and basedon these guidelines, the operations’ andGroup companies’ product safety committees set general standards for safetyassurance, and safety standards for individual products.
Pursuant to our belief that the management of product liability (PL) must be
an ongoing effort, we perform risk checks
whenever a new product is developed or
a complaint is received, and once a yearon all product groups.
Should these PL risk checks uncover

Structure

any problems with a product’s design or a
production technology, we modify the design or improve the technology to ensure
safety, eliminate the risk, and document
these changes in our product safety
standards.
In addition, we have been conducting PL training seminars since 1994, andbegan employing our Intranet network
for this purpose in fiscal 2000. 12,435
employees have completed the network
seminars in total.

PL Management System Model

Headquarters Product Safety
Committee

Product Safety Guidelines

Product design revision;
Production technology
improvement

When developing
a new productOperations Product
Safety Committees

When a complaint
has been received

Continuous
improvement
PL risk check

Writing
product safety
procedures

Product safety assurance standards
Product safety standards forindividual products

Once a year for
all productsGroup Companies
Product Safety Committees

Efforts to Create a Crisis
Action Plan
The long-term loss of our functions andability to conduct business during a crisis
caused by, for example, a large-scale
natural disaster or fire could seriously affect and cause trouble for our clients andall of our stakeholders. DNP would not
only lose sales as a result, but could also
lose trust, suffer damage for the brand, or
the impact could even threaten the continued existence of the company. As partof our overall crisis management, DNP
has therefore created a BCP (BusinessContinuity Plan) to serve as the action
plan in the event of a crisis and minimize
risk.

24

In creating an action plan in the event ofan earthquake, which is the scenario ofgreatest concern, we began by looking
into the types of measures necessary
to business continuity in the event ofan earthquake of magnitude 6. A great
deal of our business is international. It
would be difficult to contract our production to other companies, and the impact
on society would be large, so we plan tohave a complete BCP for the Electronics
Business Division, which experiences
great client demand, by the autumn of2006. We will subsequently continue to
finalize BCPs for other divisions.

Manufacturingaccording to
written procedures

Economic Performance

For Quality Improvement
DNP aims to offer products and services
with the highest standard of quality in theworld, so as provide solutions to clientsand the utmost in satisfaction to consumers. We also believe that we can gain aneven greater amount of trust from clientsand consumers by sustaining and improving our level of quality. We therefore arepromoting our "Manufacturing 21" efforts,
with the goal of "realizing a production
structure for manufacturing high quality
products at competitive costs."
Through Manufacturing 21 we are
creating a place for "TAIWA" within thecompany in every area of business, fromplanning and sales through production
and delivery, as well as for "TAIWA" thatcrosses the boundaries of those business areas. Also, through daily "TAIWA"
with clients we are able to hear about theclients concerns and desires, and thenwork to provide solutions. We have won
the "Best Supplier Award" for four years
in a row thanks to the high marks given
us by clients, and we intend to continue
working to improve client satisfaction.
All of our business operations haveacquired ISO9000 series certification
for quality management, as well as
HACCP9000 certification for food safety
and quality systems in our packaging
operations. We are currently proceedingin the area of information managementwith acquisition of IT security certification (ISO/IEC15408) for the handling of
cash/credit cards, securities, and otherbusiness documents, "privacy marks"for
personal information, and Information
Security Management Systems (ISMS).
(See pages 22 ~ 23)

ISO9000 Certification Status
Operations/Group companies

Factory

Obtained in:Commercial Printing Operations, DNP Media Create
Information Communication Kansai Operations, DNP Media Create
KansaiInformation Communication Kansai Operations, DNP Data
Techno Kansai
BF, IPS Operations, DNP Data Techno

Enokicho, Oji, Akabane, Utsunomiya

Aug. 2002

DNP Seihon

AkabaneOct. 2002

DNP Digital Com

Data Processing Center

Dec. 1999

Information Media Supplies Operations, DNP IMSAdvanced Industrial Supplies Operations, DNP Advanced
Industrial Supplies
Decorative Interiors Operations, DNP Kenzai

Sayama, Okayama

Nov. 1994

OkayamaFeb. 2003

Tokyo, Kobe, Okayama

Nov. 1997

Decorative Interiors Operations, DNP Ellio

Tokyo, Osaka

Sep. 1998

Packaging Operations, DNP Technopack Yokohama

Yokohama

Mar. 1998

Packaging Operations, 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

Kansai Packaging Operations, DNP Technopack Kansai

Kyoto, Tanabe

Jun. 1998

Electronics Devices Operations, DNP Fine Electronics

Kamifukuoka, Kyoto, Kuki

Sep. 1992

Osaka, Neyagawa, Ono

Jul. 2001

Nara

Dec. 1999

Warabi, Enokicho, Oji, Ushiku

Nov. 1997

Display Components Operations, DNP Precision Devices

Mihara, Otone

Dec. 1997

DNP LSI Design

Sapporo, Akabane, Kansai, Fukuoka

Dec. 2004

DT Fine Electronics

Kawasaki, Kitami

Oct. 2002

Advanced Colortech

Kitakyushu

Mar. 2000

DNP Hokkaido

SapporoOct. 2000

DNP Tohoku

SendaiNov. 2000

DNP Tokai

NagoyaJun. 1999

DNP Shikoku

TokushimaJan. 2002

DNP Nishinippon

Fukuoka, Chikugo
Sapporo, Asahikawa, Muroran,
DNP Information Systems 		Hakodate, Tokyo, Morioka, Yamagata,
Hiroshima, Fukuoka
DNP Facility Services
IchigayaFeb. 2000

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

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

Apr. 1999

HACCP9000

We believe in superior design and technology.
Ron Gagnon
Vice President, Design and Marketing
Willsonart International, Inc.
* Manufacturing 21: This is a Group-wide project tocreate a sinewy manufacturing structure responsive tochanges in the marketplace, with the goal of realizing
the DNP Group's Vision for the 21st Century. We are
creating a manufacturing structure capable of constantimprovement and continuous, sustainable strength, so
as to conduct manufacturing with increased profitability
and improved asset efficiency.

Our partnership with DNP has been an important part of Wilsonart's success over several
decades. The company has risen to each newchallenge we have presented, with an open mind
and innovative approaches to producing the deThe FY2005 Best Supplier Award
Ceremony (DNP the winner for four
signs we need. They have also backed up eachyears in a row.)
new development with excellent, reliable service
and support, enabling us to meet market demandconsistently. Our newest success, Wilsonart HD, has been in large part due to
DNP's ability to respond to our needs with both design and technology solutions.
We look forward to DNP's continuing role on the design "team" at Wilsonart, helping us to raise the bar on surface design.

25

P&I Solutions (Purchasing Efforts)

We have established the DNP Group CSR Procurement Criteria, and are seeking the cooperation of our suppliers.
We are coordinating with our suppliers to meet our corporate social responsibilities in areas such as legal compliance, environmental conservation, and proper labor conditions, so as to provide useful and safe products and services.

DNP Group Purchasing Policy
In modern times economic activity proceeds along a chain, in which a numberof businesses are involved in producing asingle product or service. It is necessary
for all of the businesses involved in producing that product or service to beaware of their social responsibilities andconduct their activities honestly, in orderto fulfill their corporate social responsibilities. DNP seeks the cooperation of our
suppliers of materials, equipment, construction supplies, and other items so thatsociety, DNP, and the suppliers can allachieve sustainable growth. To this end,in March 2006 we amended our Basic
Procurement Policy, and established ourGroup-wide DNP Group CSR Procurement Criteria.

Basic Procurement Policy
Fairness

In choosing suppliers, we follow fair competitive principles
based on comprehensive judgment encompassing quality, priceadvantage, assurance of delivery, follow-up services, reliability,
and technical capabilities.

Equal
Opportunity

As regards procurement, we believe in being positive in purchasing materials that meet our financial- and quality-related
criteria, without adhering to our existing suppliers regardless ofwhether a supplier is based in Japan or abroad.

Mutual Development

Through fair business transactions, while endeavoring to build
mutually trusting relationships with the suppliers with whom we
conduct business, it is our hope to maintain relationships that
contribute to mutual development.

Social Responsibility

Through mutual understanding and respect for all laws, regulations, and business customs in our business transactions, ourcompany and the suppliers, with whom we conduct business,believe that we must fully live up to our social responsibility,
without neglecting to give due consideration to labor conditions,conservation of natural resources and the environment.

DNP Group CSR Procurement Criteria
At all of their branches and collaborating companies, DNP and the suppliers that provide DNP with raw materials, machinery, buildings, and other items, domestically as well as abroad, shall carry out CSR (corporatesocial responsibility) efforts in the areas described below.

(1) Compliance with Laws and Social Norms
Establish corporate ethics policies and regulations, and promote measures to ensure compliance with laws
and social norms.
Homepage for the Procurement Site

(2) Preservation of the Environment and Product Safety
Provide a safe, healthy, and sanitary environment for employees and neighboring residents.
Comply with related laws and regulations to strictly control all steps leading up to the final disposal ofwastes.
Put priority on purchasing items that have a minimal environmental burden, including parts, raw materials,
equipment and materials, and office supplies.
Proper management of chemical substances is conducted in compliance with various laws related to protecting the environment as well as the DNP Group Management Criteria for Chemicals.

(3) Compliance Regarding Labor-Related Matters
Equal opportunities for all employees, elimination of discrimination, and respect for and consideration ofhuman rights are put into practice.
A system is in place and put into effect to prevent inhumane labor practices, such as child labor and forcedlabor.

(4) Compliance Regarding Information Security
A very thorough system has been set up, comprised of a basic policy, internal regulations and other measures, as well as an educational and training program for the employees, to prevent the unauthorized
release of information, such as personal information or confidential information obtained in the process ofconducting business with other companies.

(5) Protection of Inside Informants
An internal help desk has been set up where employees can bring their concerns, making it possible toprevent problems from occurring or to detect them in the early stages. Moreover, measures have been
established to ensure that employees who bring up these problems do not suffer any retaliation.

(6) Compliance with Rules for Fair Competition
DNP carries out its corporate activities in compliance with business relevant laws and regulations as wellas in accordance with the rules for fair competition.
The DNP Group believes the abovementioned CSR Procurement Criteria to be an essential requirement forcarrying out business transactions. We will be checking periodically to ascertain to what degree these criteria
are being observed. It is our sincere wish that all of our suppliers have a clear understanding of our CSR
Procurement Criteria and make every effort to carry out their activities in accordance with the Criteria.

26

Economic Performance

Regular examination ofcompliance with the CSR
Procurement Criteria

DNP Group Requests

The DNP Group has disclosed the DNPGroup CSR Procurement Criteria to its all
suppliers, and has conducted briefings
for 3,300 suppliers throughout Japan soas to elicit compliance. In addition, DNP
also conducts regular examinations ofcompliance by suppliers with the CSR
Procurement Criteria. These regular examinations seek to determine compliancein areas such as management systems(ISO acquisition), environmental stipulations (chemical substance management,
waste disposal, health and safety measures, etc.), and social responsibility(legal compliance, human rights compliance, risk management, and others).

In addition to the DNP Group CSR
Procurement Criteria, a set of requests
made of suppliers by the DNP Group has
also been established, so as to move
our CSR activity another step forward.
In addition to already existing procurement requirements, such as competitive
cost, superior quality, and reliable delivery, these include the creation of a BCP(Business Continuity Plan) as part of arisk 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 themhelps to achieve the goal of mutually
maintaining and improving the corporate
competitiveness of the DNP Group andthe suppliers.

Requests from the DNP Group to its Suppliers
Briefing

Prices That Are Competitive
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

Consideration ofenvironmental andproduct safety
DNP has established the DNP Group
Green Purchasing Policy with the goal ofpromoting green purchasing so as to reduce environmental impact in all areas ofour business, and so that the products weoffer to our clients will also themselvescontribute to the reduction of environmental impact.
As part of our efforts to improve
product safety, in response to the EU(European Union) RoHS Directive* andvarious environmental conservation regulations, as well as client demand, in 2004
the DNP Group conducted a study (certificate of nonuse of chemical substancesand survey sheets on substances contained in products) regarding chemicals
contained in materials we purchase fromsuppliers, and completed a databasefor some 23,000 brands. This has allowed us to monitor the chemicals usedin each product, thereby strengthening
our controls. In addition, it has created amechanism for the manufacture of products according to established standards.
* RoHS Directive: The restriction of the use of certain
hazardous substances in electrical and electronicequipment.
* Refer to page 71 for the overall flow of chemical
substance control.

Let's conduct CSR efforts together.
Yoshiko Oonuki
Quality Management Group
Graphic Systems Business Div.
Fuji Photo Film Co., Ltd.

O

ur company has supplied DNP with printing press process materials and equipment, mainly for press plate processing, for more than 40 years. We routinely
contact DNP to get their opinion about the quality of our products, and have developed a strong relationship of trust that serves us well in areas such as new productdevelopment.
I believe that DNP’s establishment of its CSR Procurement Criteria will, by
clarifying the standards for procurement, provide for a greater awareness of legal
compliance and corporate social responsibility by both companies. It is my hope that
our companies can work together to continue our excellent relationship as business
partners and to fulfill our roles in contributing to the economy, society, and the environment through our CSR activities.

* Green purchasing: The prioritizing in the purchaseof products or services of those with the lowest environmental impact, and of vendors that make efforts to
reduce their environmental impact.

27

P&I Solutions (Examples of New Value Creation)

Our goal is safe and suitable manufacturing useful to individuals and society, and thecreation of new values.
DNP is developing products and services as a way to provide the next generation with a safe, pleasant and secure living environment at a time when the world around us is experiencing enormous change.

DNP's Environmentally-Conscious Products and Services
Just as the 21st century is called the century of the environment, it is impossible
to talk about the future without discussing
environmental issues. Certainly corporations of today are required to develop
products and offer services from theperspective of global citizens. In each of
our business fields, DNP contributes toa sustainable recycling-oriented society
by offering solutions, including environment-friendly products with the global
environment in mind.

the health and environmental considerations. WS Safmalle employs an energyconserving EB coating that has a strong
CO 2 emission-reducing effect, contains
none of the chemical substances related
to "sick house" syndrome, and uses a
non-PVC material that produces zero dioxin emissions. It also has a toughsurface and excellent soiling resistance,
making it an easy to use product.

[Filler Sheets for Solar Power Systems]

The modules used in solar power generation systems are composed of surface
glass, filler sheets, solar battery cells,
and back sheet film. In theory the surface
glass can last for 100 years, but the filler
sheets used up until now generate a gas
during the module production processthat hastens the deterioration of theequipment. Also, those filler sheets are
difficult to detach, so that 80% of the cells
and glass is not reusable. DNP applied

the converting technology developed
through our packaging manufacturingbusiness to this problem, and developed filler sheets that permit recycling ofmodule materials while at the same time
reducing environmental impact.

[Living Space Evaluation and Analysis
Center]

DNP has established the Living Space
Evaluation and Analysis Center, a facility
dedicated to measuring the VOCs emitted
by housing materials. DNP has acquired
the first ISO/IEC 17025 third-party certification in Japan for our VOC measuring
process and technology, which is basedon the JIS A 1901 standard. In addition tomeasuring the VOCs in our own products,
DNP is now offering service contracts for
VOC measurement for other parties.
In June 2005 we also developed collection technology for the VOCs emittedby automobile interior parts, broadening
our range of service.

28

Left: FSC CoC certification registration
Right: PEFC CoC registration<Packaging Design Guidelines~USE·FULL® Packaging~>[WS Safmalle]

There has been great demand in recent
years for housing materials that areboth friendly to the environment andhealth. DNP is developing products that
contain none of the "13 volatile organic
compounds" (VOC) listed by the Ministryof Health, Labour, Welfare as primarycauses of "sick house" syndrome. We
seek to provide comfortable living spacesthat are environmentally friendly, healthy,
and comfortable.
Our environmental products, represented by WS Safmalle, have been givenhigh marks both in Japan and abroad forenvironmentally sound methods, so as toencourage the sustainable use of resources.
We received PEFC CoC certification
registration in January 2004, and applied the PEFC logo to the packaging of
the main product of a large confection
company, which was a first for Japan. We
continue to supply these products. We received FSC CoC certification registrationin December 2005, creating a system forcompliance with both of the world’s "forest certification" programs. In addition,
in September 2005, DNP Tokai acquired
PEFC CoC certification, while in March
2006 the Ichigaya Publication Printing
Operations and DNP Tohoku acquired
new CoC certification. We are working
hard to promote the use of "forest certified" paper throughout the Group. (Seepage 74).

[Forest Certified Paper Products]

We are continuing to pursue efforts in the
packaging area according to DNP’s four
criteria for environmental conscious packaging in the "USE·FULL ® Packaging"packaging design guideline. In addition,in our paper packaging, we are promoting
the use of PEFC and FSC CoC-Certified
paper, which is guaranteed to have originated from forests managed according to

DNP's five criteria for Universal Design• Easy expression for necessary information• Use in simple intuitively understoodways• Flexible and safe when used
• Appropriate weight and size
• Usable without excessive force or
movement
DNP's four criteria for environmental
conscious packaging• Reduction of packaging material• Less total volume of packaging afteruse• Recycling• Less environmental load (Life Cycle
Assessment)Economic Performance

DNP's Universal Design (UD)
Products and Services
We are working to create products that"anyone can use easily" and that are"comfortable." We take particular care at
every stage in packaging, from planning
through development and design, withconsideration given to improving clarity of
expression and usability, so as to create
packaging that everyone can enjoy. To
that end, we launched the UD Promotion
Group in December 2005, in an attempt
to promote these efforts throughout thecompany in anticipation of a future widespread demand for Universal Design.

[High-Quality Liquid Crystal Displays]

The quality of liquid crystal displays has
been improving along with factors suchas increases in display size and the popularization of HD broadcasts. This hascorresponded to an increasing demand
for more true-to-life color reproduction. By
developing and adding yellow and cyancolor material to the red, green, and blue
(RGB) of already-existing color filters, wehave developed multi color filters for highquality liquid crystal displays that broadly
expand the reproduction range to include
colors such as yellow, gold, and aqua.

[PUL: Packaging Usability Laboratory]

DNP has established this facility within
the company to research package usability. We have reproduced an average
household kitchen so as to be able to observe and examine the ease with which
consumers can open, close, and use
packaging for food items and household
items. While we naturally examine thepackaging of already existing products,
the PUL allows for short-term, low-costevaluation and analysis of the function of
the packaging under development.

[Anti-Reflection Film]

Anti-Reflection film is used on the surfaceof flat panel displays (FPDs) such as
liquid crystal displays or plasma displays
used on TVs or laptop PCs.
This film has anti-reflection, antiscratching and dust resistant characteristics, is easy on the eyes and sharpens
picture quality. All of these characteristics
make it one of the most important components in FPDs.

Left: New product Right: Former product[Heartfit Carton®]This our original easy-to-open, easy-touse carton. The carton is simple, safe,
and comfortable to open, imparting a
sense of quality to the product it contains. We have also improved our paper
container surface processing technology
to make it easier to maneuver by touch.
We offer an easy-to-use carton that
can incorporate the functions requiredby the contents, for a perfect fit for the
consumer.

DNP technologies contribute to improving
confidence in medicine.

[Revising Display Design for Medicines
Contained in Medical Infusion Solution
Bags]

Otsuka Pharmaceutical Factory has
worked in cooperation with a number ofuniversities and medical institutions toimprove the display design for medicines
contained in medical-use infusion bags,
so as to reduce the number of accidents
caused by dispensing error at hospitals.
Significant improvements in the color andsize of lettering, differentiability and clarity were achieved through the applicationof ergonomic principles. Other improvements, such as making the drug names
visible from the reverse side of the package, were made based on the opinions
gathered from nurses and pharmacists,and full-scale revisions were made forapproximately 60 products.

Tetsuji Iwamoto
Operating Officer
Information Center for Infusion Theraphy and Product
Otsuka Pharmaceutical Factory, Inc.

T

he variety of pharmaceutical products is vast, and in addition we have observed that similarities in name and appearance make it easy for human error
to occur. The Intravenous solutions handled by Otsuka Pharmaceutical Factory
are no exception, and we sought to improve differentiability. This time we took a
new approach by asking DNP to revise our infusion solution bags. They mademajor display design changes after verifying the effects of employing ergonomic
methods. The reaction of workers in the medical field has been positive, andalong with improving the effective prevention of human error we have been congratulated for taking positive steps as a pharmaceutical company to improvemedical safety. I would like to express my gratitude for the contribution of DNP'stechnologies to improving people's confidence in medicine.

Left: Previous product Right: New product29

P&I Solutions (Examples of New Value Creation)

Products Supporting Safe andSecure Living

more efficient responses and an analysisof accident trends.

While Japan's society is considered
comparatively safe, concerns about increasing incidents of crime and disasters
have created a need for self-protection
and other measures. Consumers arealso becoming more and concerned
about food safety and product labeling,
and we are making progress in developing a quality assurance system for foodproducts.

[KIDS IN FEEL]

There has recently been a succession of
tragic incidents in which children lost theirlives, and childcare givers are becoming
more and more concerned about childsafety management. DNP is working with
DoCoMo Systems to provide an e-mailservice called "KIDS IN FEEL" that uses
RFIDs to notify caregivers when theirchildren are at the school gate. When astudent holds up an RFID imbedded cardin front of an RFID reader installed at theschool gate, the system sends out ane-mail to the registered cellular phone or
PC that notifies caregivers of the student’s
arrival and departure.

[Disaster Victim Traceability System]

In conjunction with Fuji Tokoha University
and Catena Corporation, DNP has developed a Casualty Traceability System foruse in the event of a large-scale disaster.
Handwritten tags providing information about persons injured are used by
medical personnel during disasters, but
a consolidated information management
system is needed for efficient medical efforts over a broad area. In our system, adigital pen is used to input victim information on a specialized tag on which DNP's
2-dimensional code is printed. The victim
information is rapidly digitized, so thatthe victim's current location can be ascertained and information can be shared
among medical facilities.

and RFIDs, so that a company can consolidate the management of information
about a product's ingredients, place of
production, processing, production date,shipping information, etc., through thecompany's network system. Consumers
can also check on the same backgroundinformation by using special terminals
at stores. The Ministry of Agriculture.
Forestry and Fisheries of Japan is currently conducting proving tests of our foodtraceability systems. In addition, it is also
possible to check the status of the products during production, transportation,and storage, by using RFIDs containing
heat, moisture, and light sensors.

Product control using RFID label in the distribution process

RFIDs containing heat, moisture, and lightsensors[Digital Pen for Emergency Medicine Gets
Test Run at the Exposition of Global Harmony]

We operated Japan’s first emergency
medical-use digital use pen system at the
Exposition of Global Harmony, in cooperation with Professor Takashi Noguchi
of Aichi Medical University. This pen immediately digitizes information written
down on paper and sends it to a nearby
terminal or server. The immediate digitizing of information about factors such as
workplace, time, and patient condition
makes it possible to consolidate emergency lifesaving information, providing for

30[Food Traceability System]

Food safety and security is getting more
and more attention nowadays, and attention is being paid to traceability systems
that cover every stage in the history ofa food product, from production throughprocessing and distribution. DNP is developing a variety of traceability systems
for agricultural products, processed
foods, imported foods, and others, and isoffering them to production organizations,manufacturers, retailers, etc.
Our systems use automatic recognition technology, such as RFID label

IR Activities

Economic Performance

We endeavor to provide easy-to-understand and timely information to our shareholders
and investors.
By providing information to our shareholders and investors, we enhance our investor relations (IR) in order to obtain an
appropriate evaluation of our company and deepen the mutual understanding between ourselves, our shareholders and investors.

[Providing Information in Japan]

In addition to more than 300 individual
meetings a year, we also hold factory
tours and strategic technology seminars
for our businesses and products with highinterest among our shareholders andinvestors. We compliment this information by producing annual reports in both
English and Japanese.
We also established an Information
Disclosure Committee in May 2006, withthe goal of ensuring timely and accurate
information disclosure.

[Providing Information Overseas]

We also provide information in responseto requests from overseas investors, via
teleconferencing by utilizing telecommunication technologies, including televisions
and telephones, and through the Internet.

[Policy on Disclosure of Information]

In order to provide timely and appropriate information, which is transparent,
fair, and continuous to our shareholders
and investors, DNP discloses information
based on the following policy:

Share Information (as of March 31, 2006)
Total number of shares issued:
740,480,693 shares
Shareholders at term-end:
30,655 shareholders<Breakdown by size of holdings>
1.56%
2.59%
0.19%

1,000,000 shares or more

100,000 shares or more 5.78%
1,000 shares or more
10,000 shares or more
50,000 shares or more

15.53%

Under 1,000 shares

74.35%<Breakdown by type of shareholder>
4.70% 1.42%

Financial institutions
Overseas investors
Other domestic corporations

10.22%

Individuals
Own shares

Disclosure Policy(1) Information Disclosure Standards
Our company promptly discloses information in accordance with the Securities
Exchange Law and other related laws, as well as the "timely disclosure rules"
established by the Tokyo Stock Exchange. We also promptly and proactively
disclose information even if it does not apply to the timely disclosure rules, aslong as we believe that the information is considered necessary and helpful toshareholders and investors to promote further understanding of our company.

(2) Methods of Information Disclosure
In accordance with the timely disclosure rules, after briefing the TSE in advance, we publicly disclose important information that applies to those rules
through TDNet (a system for the timely disclosure of information provided by
the Tokyo Stock Exchange) and to the press. At the same time we post thisinformation in a timely manner on our website. We also provide informationconsidered useful in enhancing the understanding of our company by posting
this information on our website and/or the press websites.

(3) Period of Silence

12.36%

37.00%

Brokerage firms

34.30%<SRI>
Socially Responsible Investment(SRI) is an investment in corporations
that practice sustainability and takes
seriously involvement in CSR. DNP
is incorporated in the FTSE 4 Good,
Ethibel Sustainability Index and Dow
Jones Sustainability Index, which areoverseas SRI Indexes. In addition, we
are included in a number of SRI funds
in Japan.

http://www.ftse.com/ftse4good/index.jsp

Before the announcement of our financial statements, we have a "period ofsilence," during which we refrain from responding to comments and inquiries
regarding settlement, in order to ensure fairness. However, even during aperiod of silence, we promptly disclose any information that would incur majorchanges in our business results. Furthermore, we will respond to any questions regarding information that has already been disclosed.
http://www.ethibel.org/

http://www.sustainability-index.com/

31

Society

Relations between DNP andSociety
We seek a society in which every individual can have an active life, both at the workplace and in local communities. DNP wants
to be involved when new values and culture are created through interaction among people and between people and society.
"We want to create a pleasant workplace."[In-house Venture]
M's Communicate/Yuko Okada

p39"I want to continue learning more and more.""I'm hoping to advance my career.""I want to gain a high degree of skill."[Meister]
DNP Seihon/Hideo Kojima

p10[In-House Recruiting][In-House Apprentice Ship System]

ICC Division/Noriko Unayama

C&I Operations/Daisuke Fujikawa

p37

p37

We are a team of independent professionals.

DNP"I have turned my passion into my profession.""We have a culture that deserves respect.""TAIWA"[In-House Venture System][Takumi(Meister) Project]

You Too/Yousuke Yamada

DNP Media Create Kansai/Yoshio Imanaka

p11

p48

Employees"I'm raising kids while working."[Back-to-Work Program][Overseas Intern]

DNP Nishinippon/Michiko Machi

Linards Grigans

p40

32

"I think this is a great opportunity."

p47

Social Performance[Donating notebooks tolocal elementary schoolchildren][Revascularization through printing technology]
Joint research with Tokyo Medical & Dental University

DNP Indonesia["Japanese Posters-Today " held in Europe.]
DNP Archives of Graphic Design

We are proud to be able to contribute to society through our business.

DNP"TAIWA"[Famous strawberry jam and juice label design][MMF Art Seminar]

DNP Graphica

Maison des Musées de France

Local Communities[Netday Summit in Kashiwa]
Dai Nippon Printing

33

Compliance with Laws and Social Ethics

We act according to laws and societal ethics.

DNP Group strives for thorough corporate ethics so as to continue to be a company that is trusted by society. Each employee musthave a strong sense of purpose and responsibility, and see it as their personal duty to engage in honest work every day.

The DNP Group established the
Corporate Ethics Committee in 1992.
This committee checks and provides
guidance concerning the promotion of fairand honest business practices based
upon compliance with laws and social
ethics, which is necessary if we are to be
a company that is trusted by society.
The Corporate Ethics Committee isthe controlling body for the internal control system created to promote acompliance system that will ensure astrong internal control system for the
DNP Group, as well as ensuring that all
business is fairly conducted as requiredby laws, our articles of incorporation, internal regulations and social ethics. The
Committee shall also clarify the functionsof the internal control system.
In order to ensure the effectiveness of
the internal control system, a corporate
climate must be created that inspires
each employee to have a strong sense of
purpose and responsibility, and to see it
as their personal duty to engage in honest work every day. Our complianceefforts are not simply a set of slogans.
Rather, they must also comprise down-toearth activities tied to actual results.
Many errors in thinking have been madeup to now in the creation of this system.
While we provide a rundown of current
activities below, we are still not satisfied.
We must continue to make improvements, and work to create a system thatwill allow no regression.

For the firm establishment ofcorporate ethics[Corporate Ethics Committee]

The Corporate Ethics Committee is composed of the Directors in charge of eachdivision, and meets once a month. Everyorganization within the Group, including
all Headquarters Departments,
Operations, and Group Companies, shallestablish a Corporate Ethics Committee
to promote the firm establishment andthorough permeation of corporate ethics
within the Group.

[Management by Objective System]

The establishment of corporate ethics requires that all employees regard it as
their personal duty to engage in honest
work every day. We therefore have in-cluded corporate ethics as a factor in theManagement by Objective System, andeach employee is to discuss the meaningof fair and honest action, as well as confirm that he or she is conducting work inthat way, during the biannual interviews
with superiors concerning the establishment of goals and results evaluation. This
is intended to ensure a more thoroughestablishment and permeation of corporate ethics.

[Self-Inspection for Compliance]

We implemented the “self-inspection forcompliance” system in 1997 to check forcompliance with laws and rules in the
conduct of corporate activities, and as of2006 it will be in its 9th year of operation.
Under this system, each business division conducts an annual self-evaluationaccording to a checklist composed by the
Headquarters’ supervisors, and based
upon this takes the initiative toward making improvements. By having eachbusiness division conduct a self-examination, we nurture a strong spirit of“guarding our organization ourselves.”
This provides for prompt and accurate
improvements, and produces material results.
The results of the evaluations arecompiled according to category by the
Headquarters’ Corporate Ethics
Committee, and are reflected in the next
set of companywide measures.
In addition, a system called the Priority
Execution Plan was adopted in 2004.
Rather than having all business divisions
address a single set of issues with thesame degree of urgency, we get better
results by having each assign priority levels to issues according to their particular
circumstances.

[Compliance Evaluation System]

The compliance evaluation system
was initiated in 2005 in light of the needto eliminate inconsistencies in compliance at each level within the organization,and to create a bottom up approach. It
provides an objective evaluation systemfor every level. The Headquarters’ supervisors evaluate the progress madethrough the efforts of each organization
toward resolving the issues that havebeen selected for prioritization by the supervisors. The evaluation results, which
are consolidated twice annually, are compiled by the Corporate Ethics Committee
and published throughout the Group.

* [Compliance]: Compliance with laws and regulations. In corporate behavior this means
not only compliance with legal imperatives, such as laws and regulations,but also includes upholding social norms and societal ethics.

34

After examination of the content obtained through the first application of thesystem, the evaluation categories andstandards were revised so as to provide
for even more objective evaluation.

<Corporate ethics compliance efforts>
1991 Start of the first corporate ethics
training
1992 Establishment of the Corporate
Ethics Committee
Establishment of the DNP Group
Corporate Pledge
1993 Establishment of the DNP Group
Employees Code of Conduct
1994 E s t a b l i s h m e n t o f t h e G r o u pCompany Corporate Ethics
Committee
1997 Introduction of self-inspection forcompliance system
1998 Revision of the Code of Conduct
1999 Inauguration of the Corporate
Ethics Committee Secretariat
Conference
2002 R e v i s i o n o f t h e D N P G r o u p
Employees Code of Conduct
Establishment of the Open Door
Room
2003 Introduction of self-directed ethics
training
2004 Priority execution plan adopted
2005 Introduction of the complianceevaluation system

Social Performance

they have entered the company as
well.

Corporate Ethics Training

2) Self-directed ethics training

Each individual employee must sufficiently understand the importance of corporate
ethics, and connect the significance ofcorporate ethics to their daily work. We
have implemented the corporate ethics
training described below with the goal of
the establishment and permeation of corporate ethics consciousness. The training
was held on 176 occasions in FY2005,
with 6,787 people in attendance.

1) Regular training according to rank

Corporate ethics training has been
woven into the curriculum for training
according to employee rank, such as
new employee training and new manager training. We continue to makeefforts on all suitable occasions toensure that employees maintain theircorporate ethics consciousness after

We want all employees to view corporate ethics as a matter for theirpersonal attention. We believe thatdoing so requires that the training
content be specific to each division, as
well as more tangible. To that end, we
initiated self-directed ethics training ineach organization in November 2003,
in which the directors in charge andother supervisors function as lecturers
and explain corporate ethics policies totheir subordinates in their own words.

3) Seminars conducted by visitingsupervisors from Headquarters

These are seminars concerning essential themes, and are conductedby supervisors from Headquarters as
required in support of regular training
according to rank and self-directed ethics training.

Corporate Ethics Training Results

Trend in total number of attendees
8,000

Regular training according to rank
New and midcareer hires

New managers

Self-directedethics training

Divisional
managers

6,787

Total
6,000
5,165

Attendees

Sessions

10

537

−

−

120 4,281

133 5,165

FY2004(January ~ December 2004)

3

364

10

471

1

77

156 4,522

170 5,434

FY2005

1

438

10

477

1

57

164 5,815

176 6,787

Sessions

Attendees

Attendees

Sessions

347

Sessions

Attendees

Attendees

Sessions

3

FY2003(January ~ December 2003)

5,434

4,000

2,000

(January ~ December 2005)

Consulting and Reporting
System - Open Door RoomThe Corporate Ethics Committee has
always responded promptly to employee
consultation about questions or concerns
they have may have in regard to issues ofcorporate ethics. Nevertheless, a consulting and reporting system, with the Open
Door Room functioning as a consultation
desk, was established in 2002, particularly to respond in cases in which theemployee might feel uncomfortable about
approaching a superior directly.
We strengthened this system in re-

0

'03

'04

'05

sponse to the Whistleblower Protection
Act of April 2006, and in addition madeefforts to ensure that all employees were
fully aware of its functions. We have
implemented full confidentiality, so that
employees reporting or consulting about
corporate ethics issues will not suffer any
repercussions.
The Corporate Ethics Committee
is striving to improve corporate ethics
consciousness, so as to create a relaxed workplace atmosphere in which
employees can comfortably discuss theirquestions or concerns with superiors, colleagues, and workplace staff during thecourse of their daily activities.

35

Relationship with Employees

Equal Opportunities for a Cooperative and Diverse Workforce

The DNP Group promotes versatility in various aspects of its business, including employment, training, evaluation, work
environment, safety, and disaster prevention, aiming to achieve a workplace where each employee can cooperate with one
another to wield their abilities in a positive working environment.
The DNP Group Employees Code of
Conduct clearly stipulates the basic
policy prohibiting discrimination towards
job applicants or employees in any aspect of our business, including recruiting,
employment and promotions, as regards
matters of culture, nationality, creed,
race, ethnicity, language, religion, sex,age, social status, or disability.
We believe that it is necessary for
employees to develop as independently
functioning professionals and to evolve
emergently together so as to continue
to contribute to an emergently evolving
society.
In order to realize this idea it is es-

sential for the employees to be able toengage in a free and vigorous dialogue.
“TAIWA” does not stop at “conversations”
and “sharing information”, but rather
includes mutual discussion about solv-

ing problems and issues that occur on adaily basis. DNP eliminated the “officer
system” in 2002, so as to provide for
freedom of “TAIWA” and nurture an emergently evolving corporate culture.

Personnel and Employment Guideline
Our goal is for each of our employees to be an independent professional witha sense of responsibility and self-confidence. They shall strive to achieve selfrealization in order to face challenges positively and resolutely. The company
shall provide an environment and organization supportive of the development andself-realization of individual employees, and will nurture an emergently evolving
Corporate Culture and culture that will allow each of our employees to display
their full professional abilities.

Personnel and Human Resources Development Efforts for Realizing Our Vision

Vision for the 21st Century
Management Concept

Seeking to create professionals capable of independence and cooperation

Business Vision/Activity Guidlines

Efforts and self-realization of each individual

Respect for diversity
Flexible way of working
Creation of a clean and healthy workplace
Training System/Structure

Career Counseling Center

System for encouraging
qualification acquisition

Leader support and guidance

In-house venture system

In-house recruiting system

Goal management
systemPersonnel ability
rating system

Distance
learning

Education
throughchangeof duties or
new posting

Rating system

External
seminarsGroup
training
Network
learning

Self-reporting system

OJT

Group
training
Practical
training

Training at Headquarters

Training throughassignment or transfer

Training held by Business Operationsand Group Companies

Personnel/Organization/System/Application

Full and continuous “TAIWA”

Professional personnel capable ofindependence and cooperation

Emergently evolving organizational
atmosphere and culture

Pleasant, free, and energetic
workplace environment

Realizing the Vision for the 21st Century
DNP (Non-Consolidated) (as of March 31, 2006)

36

Number of executive officers

Male: 26 persons

Female: None

Total: 26 persons

Senior Expert (Leadership position level 2 and above)

Male: 1,000 persons

Female: 8 persons

Total: 1,008 persons

Number of employees

Male: 7,438 persons

Female: 1,159 persons

Total: 8,597 persons

Number of employees (consolidated)

Male: 30,069 persons

Female: 5,527 persons

Total: 35,596 persons

Executive officers at overseas Group companies (consolidated) Local: 38 persons

Japan: 92 persons

Total: 117 persons

Average age

Male: 37.6 years old

Female: 29.7 years old

Aggregate: 36.5 years old

Average number of years continuously employed

Male: 14.9 years

Female: 8.6 years

Overall: 14.0 years

Social Performance

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 evenhanded methods to select and hire employees. We also
actively participate in internship programs.
Type of Hiring
New hiring
We inform candidates of the type of person we are looking for, the steps in our hiring process, the timing of each step, and what we are looking for in each interview. In order to avoid
mismatches, we assign young employees as recruiting partners to give candidates a real-life
picture of our company.

Internship Report Meeting

This Year Results

Previous Year Results2006 new hires (DNP only)
Regular employees: 140 persons(95 males, 45 females)
Technical staff: 230 persons(180 males, 50 females)

2005 new hires (DNP only)
Regular employees: 120 persons(80 males, 40 females)
Technical staff: 200 persons(150 males, 50 females)

2005 mid-career hires (DNP only): 78 persons

2004 mid-career hires (DNP only): 80 persons

During August - September 2005,
68 interns were accepted in 42 categories

During August - September 2004,
73 interns were accepted in 44categories

Mid-career hiring
We advertise broadly via the Internet, with no age restrictions. We explain clearly and specifically the job duties of the positions we seek to fill.

Internships (arranged jointly with affiliates)
In response to requests from schools and students seeking experience in the working world,
we provide students with opportunities to gain work experience. These opportunities do notnecessarily lead to regular employment.

Nurturing human resources into independently functioning professionals[Cultivating Independent Professionals]

We believe it is important for each employee to work at self-development, consider his or her own career path, decide what kind of work he or she wants to do, and expand his or her own field of work.
In order to support these efforts by individual employees, we have established personnel systems
that allow them to choose the kind of work they want to do, as well as education, evaluation, and compensation systems that encourage employees to acquire specialized knowledge and skills.
SystemIn-house recruiting system
We advertise positions requiring specialized knowledge and positions in new businesses or
new product development. Anyone with ability, experience, and the desire to be challenged isfree to apply. Discovery of talented employees and realization of their potential.

This Year Results

Previous Year Results

FY2005
Number of recruits: 78
Number of transfers: 55 (70.5%)

Cumulative results through March 2005: 244transferred

FY2005 1 company(January 2006/YouToo)

April 2002/CP Design Consulting
September 2003/M's Communicate (Female president)
September 2004/At Table
January 2005/Mobile Impulse

FY2005 3 persons

FY2004 2 persons

In-house venture system
We provide training, financing, and other types of support for employees who have entrepreneurial aspirations and want to start an independent new business. Generally, we appoint theperson who proposed the idea for a new company to be its president.

Award presentation

In-House Learning in a Different Department
The employee gains experience in another department or office for a fixed term and thenreturns to his or her original position, with the goal of improving work skills.

I'm seeking to advance my career at
a new workplace.

I learned about personal information
protection through in-house learning
in a different department

Noriko Unayama

Daisuke Fujikawa

ICC Division

SI Division, C&I Operations

B

efore I was transferred I worked in
the Planning Division, where I offered
SP proposals to clients. I had studied theFrench language and culture out of my own interest, and more thananything else I wanted to use that knowledge in my work. The MF
Promotion Office operates the "Maison des Musées de France" facilities, so I applied for a position there through in-house recruiting.
Now I am in charge of many duties that bring me into direct contact
with clients, and I have to come up with my own solutions. The ability to seek to advance my career, while using the experience andnetwork of contacts I developed at my former position, gives me areal sense of the merits of the in-house recruiting system.

W

hile my department offers consolidated systems services,from planning through development and implementation, theability to deal with personal information protection and security is
indispensable. These areas require a high level of technical knowledge, so I spent four months doing in-house learning in a different
department at CP Design Consulting (CPDC). CPDC is an in-house
venture company, and is one of the foremost personal information
protection consulting companies in Japan. I was able to pick up ahigh level of skill through both in-house work and going on visitswith colleagues to clients. I am able to put this experience to use increating a greater level of security in the systems we construct, andcan offer planning services that include checking and risk measures
for the handling of personal information in business.

37

Relationship with Employees

SystemThis Year Results

This program pays incentives to employees who acquire specialized knowledge, skills, or
qualifications needed for their job (covers about 90 types of qualification, up to 100,000 yen).

Increase in employees with qualifications for
specialized knowledge and technology necessary
to work, primarily IT-related work
FY2005 372 persons received qualifications

FY2004 104 persons received qualifications

FY2005 3 designatedCumulative total through end March 2006 47

Cumulative total through end March 2005 44

FY2005 1 designatedCumulative total through end March 2006 13

Cumulative total through end March 2005 12

Qualification support program

Previous Year Results

Meister system
Employees with valuable production skills are designated as “Meisters” and are encouraged to acquire additional specialized skills and cultivate successors by passing on theirtalents. Meisters receive a certificate of recognition from the president, and are paid a special
allowance.

Special skills recognition program
Employees with advanced specialties, whose talents are recognized particularly widely both
inside the company and outside, receive special compensation.

Ranking and salary
Individual performance is evaluated according to his/her current role and results and ranked
accordingly. Monthly salary and bonus standards are interlocked, while seniority is excluded
from evaluation.

Evaluation / compensation systems (management by objective system, etc.)
At regular intervals, employees sit down with their supervisors to set future performancetargets and evaluate past performance. Employees and supervisors increase mutual understanding through discussion and counseling. Evaluation results are directly reflected insalaries and bonuses.

Self-reporting system
We ask employees whether they want to change positions or workplaces in order to further
their careers, and any other requests they may have related to their life plans. When the company and the employee agree, steps are taken to realize the employee’s wishes.

Award system
This system includes awards for job performance, achievement of goals, and years of service(25 years) - based on results achieved semiannually and annually.

Introduction of evaluation based on “roles” and“performance” into monthly salaries. Bonuses
paid based on “employee assessment” and uniformity in ranking.
Scope of application expanded to include almost
all employees in October 2003. Personnel evaluation expanded to include general staff beginningwith the 2005 winter bonus.

FY2005 Persons participating in self-reporting
system interviews
80 transferred out of 287

FY2004 Persons participating in self-reporting
system interviews
24 transferred out of 334

FY2005 (Awarded in June 2005)
For job performance (special annual award): 41
awardsFor achievement of goals (special annual award):
26 awards
For years of service: 381 persons

FY2004 (Awarded in June 2004)
For job performance (special annual award): 34
awardsFor achievement of goals (special annual award):
30 awards
For years of service: 302 persons[Training for Employees Who Want to Advance Their Career]

Employees design their own careers, with each one aiming to become an accountable, self-confident
autonomous professional in a particular field, with the ability to collaborate smoothly with others insideand outside the company.
The company supports employees’ career designs by arranging practical and diverse training programs that offer basic or specialized knowledge required in various fields, as well as development ofpeople skills, conceptual skills, etc.
For managers and leaders, we also have practical training courses to deepen the understandingof career development, and to enhance communication and corroboration skills, as well as to help the
managers and leaders to bring the best out from their staff.
Course Contents

Attended by

Training for Division Managers

Management training

First part: 2 day group training session to acquire basic leadership knowledge
Second part: 5 month-training including 3 group training sessions and team study to receive advice regarding measures for realizing
leadership visions

For all employees being promoted to leadership
positions

Specialized Training for Sales, Planningand Engineering Divisions

38

DNP Hakone Training Center

Solution business training

Employees of sales and planning divisions, andtheir managers

In addition to the vision and basic strategies, participants learn basic methods and technical skills for formulating strategy.
For 6 months (10 group training sessions, and self-study using training materials)

All senior management, starting from the rank ofdivisional manager

Advanced management training
Drawing up action reform plans, through multi-faceted evaluation, on competence, workplace climate, and an understanding of the special
aspects of management
For 6 months (group training, and workout meetings)

All departmental and divisional managers

Training for managers entering leadership positions

Acquiring ideas and skills for realizing solutions and to learn business processes
For 3 months (3 group training sessions and individual research studies)

Pricing training
Participants will acquire knowledge in marketing and pricing.
For 5 months (9 group training sessions and group study)

Training to improve planning skills
Participants learn planning skills for P&I solutions.
For 6 months (6 group training sessions and individual research studies)

Employees in charge of service and solution divisions for new productsGroup leaders and managers in the planning division

Technical seminars (Specialized courses)
In addition to specialized knowledge, participants acquire knowledge on production systems, cost management, marketing, law, humanskills, etc.
Approximately 80 sessions per year (Optional selection of courses)

No restrictions regarding total working years,
their rank, or divisionSocial Performance

Course Contents

Attended by

Training in Manufacturing Activities

Training for Plant manager training
To draw up action plans to promote manufacturing 21 actions, and to draw up action plans for solving problems and putting those plans
into practice. For 6 months.

For All plant managers

IE experts training
This training is to learn IE methods and to promote improvement in one’s own department.
For 3 months (1 training camp session, 3 practical application sessions, and 1 briefing session)

Technical staff

Network learning

Other Training

These on-line courses are conducted to enable participants to use their own personal computers to acquire knowledge needed by all
employees and/or by employees in certain departments and sections, as well as to learn about topics that require a timely response toenvironmental change. (30 courses)

Participants choose each individual course (guest
participants are also allowed)

Training to acquire international communication skills

People who have indicated they would like theseclasses because their job either currently requires those language skills or will require themin the future 2 signup periods per year

English (open course): Class lessons based on individual levels(30 classes) For 5 months (eighteen 90-minute sessions)
In addition to English, classes in Chinese and Korean are also offered.

Sign language course
This course teaches sign language for communication with handicapped employees.
Class lessons by locality and level
For 3 months (10 group training sessions, 90 minutes per session)

Workplace leaders with hearing disabilities

Correspondence courses
Participants can choose from among some 200 courses for self-education in ten different fields, including sales strategy, management,
business skills, finance, computer literacy, foreign language, and obtaining certification or qualifications. Participants who complete thesecourses within the stipulated time period receive financial support totaling half the tuition cost.

Signups for people who want to take thesecourses are conducted twice a year.

Free, Open, and Pleasant Working Environments[Respecting Diversity]

We believe that in order to contribute to society by realizing a free, open, and dynamic corporate culture, it is important that all employees respect each other and help create a pleasant working environment. Toward this end, we think it is important for everyone to realize their potential and to do theirbest without worrying about gender, age, or disabilities.
Activities

Joint seminar for hiring the disabledThis Year Results

Previous Year Results

Hiring people with disabilities
We achieved the legally mandated ratio of disability employment, based on the premise thatpeople with disabilities should be able to function normally in society. We educate workplaceleaders so they can understand employees’ special needs.
• Workplaces and facilities are adapted to allow people with disabilities to work
• Hiring throughout the year
• Normalization training to managers of workplaces with people with disabilities

Hiring seniors
Employees who want to continue working as seasoned professionals after reaching theirmandatory retirement age may be hired as a “senior officer.”

Eliminating gender bias from the workplace• We conducted training seminars for managers about supporting women’s careers• We expanded career opportunities for women• We sent female managers to outside training seminars

Fiscal 2005:
disabled employee rate 2.00% (DNP only)

Fiscal 2004:
disabled employee rate 1.84% (DNP only)Rate of users of this system in fiscal 2005:
61.9%
Modified qualification requirements with moreclarity and details, according to employee’standpoint since April 2006
From June 2003 to March 2005:
1,825 managers participated in training to support women’s careers

A good workplace isn't one in which you have free time;
it is a place where you can achieve your goals.
Yuko Okada
President, M's Communicate

M's Communicate was established through the in-house venture system as a CRM consulting company, primarily dealing with point service. I had been in the habit of jotting down business ideas unrelated to my duties since I was a new employee, and I decided to compose some plans and show them to mysuperiors and the business division. It was then that I got the real sense that the men both in our company
and at our clients' offices had been failing to take women's perspectives as consumers into consideration.
M's Communicate was formed in 2003 as part of DNP's efforts to expand consumer-oriented business, andit turned out to be profitable. I think it would be effective for everyone to take advantage of the various systems that DNP offers to create the kind of place where they would like to work

39

Relationship with Employees[Flexible Work Styles]

If every employee is to reach their full potential as a professional, it is important that consideration be
given to individual career plans and life plans, and that working time be balanced with ample time forself-development and a private life. It is equally important that coworkers respect each other’s precious time.
We are building systems to assist the self-efforts of employees to promote their physical and mental health and that of their families.
"Kangaroo Club" Back-to-Work Seminar

System
Employment system
Flexible employment system incorporating:• Flex time system • Discretionary working system • Part-time working hours

Leave system
Diverse leave system that accommodates individual lifestyles.
• Annual paid vacation (maximum of 20 days a year) • Childcare leave • Life-support leave

Childcare leave• Until April 30 of the child’s second year, or until a child is 18 months old• An employee can take childcare leave up to twice per child during the childcare leave period.

This Year Results

Previous Year Results

Applied to over 77% of our employees overall(DNP only)

2005:
Percentage of employees who took an annual
paid leave: 32.7% (DNP only)

2004:
Percentage of employees who took an annual
paid leave: 32% (DNP only)

2005:
50 persons took leave under this system(DNP only)

2004:
71 persons took leave under this system(DNP only)

Back-to-Work from Childcare Program (see page 41)
This system is designed to create an environment in which employees facing childbirthand childcare duties can feel secure about taking leave and then returning to the workplacesmoothly, and also so that they can display their full abilities while balancing work and homeduties. It includes an Internet program, “wiwiw”, for support for returning to work after childcare, and a back-to-work seminar, Kangaroo Club.

Registered wiwiw members as of March 2006: 81
Kangaroo Club members in January 2006: Tokyo,
11; Osaka, 9

Family nursing care leave2005:
one persons took leave under this system(DNP only)• Up to 366 days per eligible family member; no limit on the number of times

2004:
two persons took leave under this system(DNP only)"re-work" System
This makes it possible, under certain conditions, for former employees who, having been
forced to stop work for childcare or nursing care purposes, find that their life circumstances
have changed and would like to become employees again.

As of March 2006, 30 persons were registeredwith our candidate

Consultation office

2005:
The office handled 1,192 cases
Established the Kansai Consultation Office in July
2005

2004:
The office handled 972 cases

2005: 651 consultations

2004: 1,330 consultations

Distribution of design books to 45-year-olds
Preparation guidance for 55-year-olds
Briefing sessions are held regarding public pensions and employment insurance for people of
the ages of 58 and 59.
2005:
651 persons attended guidance and briefing sessions

Distribution of design books to 45-year-olds
Preparation guidance for 55-year-olds
Briefing sessions are held regarding public pensions and employment insurance for people of
the ages of 58 and 59.
2004:
929 persons attended guidance and briefing sessions

Consultation with specialists for the topics of housing (financial planning, housing selection,
design, construction), legal issues (inheritance, family matters, and accidents), taxes, andsexual harassment.

Life Plan Consulting Center
Provides information about pensions, employment insurance, motivation for living, lifelong
education, etc. to assist individuals with planning for life after retirement

Life planning promotion system
Joint labor-management programs, such as distribution of magazines and holding seminars

Supporting a flexible workplaceenvironment.

Meeting others at Kangaroo Club put
my heart at ease.
Michiko Machi

Teruko Kachi

Sales Division
DNP Nishinippon

Director, Tokyo Office, Japan Institute of Worker's Evolution

I40

n these days of advancing information technology, we areamazed by the free and easy design and construction of thebooks and magazines that give access to Japan’s and the world’s culture and civilization. DNP, which has an experienced, diverse
workforce without regard to differences in sex, age, or culture, isworking to germinate new DNA from inherited forms, so as to continue to develop these pearls of culture in perpetuity. By enforcing
a policy promoting the creation of a flexible workplace environmentand respect for diversity, DNP creates opportunities for employees
to participate, and in fact promotes a greater level of participation.
I speak for myself and the foundation in pledging our support forthe courageous decision DNP has made toward drawing out emergently evolving uniqueness.

While caring for children does have its joys, one also must contend with strong feelings of insecurity and loneliness. During
my period of childcare leave I was desperate to have someone totalk with, but I just couldn’t find a way to meet other working mothers. Then I decided to try out the Kangaroo Club, and was able tomeet with other working mothers just like me from Group companies throughout Japan. Meeting with and talking things over withother mothers, both younger and older than myself, put my heart atease. I’m really grateful that I have access to this kind of a systemthat allows me to meet with other women like myself who are bothworking and raising children!

Social Performance

SystemThis Year Results

Previous Year Results

2005: 137 persons used the center
Career design development course: 69 persons(conducted five times)

2004: 138 persons used the center

2005:
Congratulatory or condolence benefit: 7,277
cases
Loans: 109 cases
Children’s scholarships (student grants and pension): 75 cases

2004:
Congratulatory or condolence benefit: 6,940
cases
Loans: 86 cases
Children’s scholarships (student grants and pension): 35 cases

January to December 2005
Percentage of people who underwent general
medical examinations: 99.35%

January to December 2004
Percentage of people who underwent general
medical examinations: 98.8%

14 clinics throughout Japan. In addition to employees covered by medical insurance, theseclinics treat the nonworking dependents of those employees (up to the age of 16).

2005: 82,512 persons visited the clinics

2004: 82,560 persons visited the clinics

Smoking measures

Creation and implementation of the “DNP Group
Smoking Guideline” that stipulates standards
for separate smoking areas and smoking regulations.

Career counseling center
Provides counseling and guidance regarding career development

Mutual relief association
Continuous creation of independent structures for mutual relief efforts funded jointly by thecompany and the labor unions.

Health management system“Health examination management system” on the Intranet makes it possible to access one’s
own health examination results, including past results, via a personal computer.

Clinics

Smoking measures conducted based on the Group Guideline at each worksite to prevent nonsmokers from secondhand smoke.

Health consultation office; Telephone health consultation; Mental healthconsultation office; Nutrition consultation; exercise consultation
Consultation system for employees and their families to provide advice from medical specialists about disease or medical therapy. It also provides support for health maintenancethrough nutrition consultation and exercise consultation.

January to December 2004
Telephone health consultation (including family
members)
Mental health consultation
Nutrition consultation and exercise consultation
Total of 6,898 cases

January to December 2004
Telephone health consultation (including family
members)
Mental health consultation
Nutrition consultation and exercise consultation
Total of 5,153 cases

Mental Health
DNP is shoring up educational programs and expanding in-house consultation opportunities
so as to support and improve employee mental health. We have continued as we did last year
in implementing mental health education by distributing our guidebook and holding lectures.
We also created our own videos and intranet-based courses, and made these courses mandatory for all employees.
We also began offering checkups by specialists at health insurance union clinics in the
Kansai area, in addition to those already on offer at the Tokyo Ichigaya medical clinic, with thegoal of early detection (prevention) and treatment.

Back-to Work from Childcare Program
Leave

Leave preparation
If the pregnancy /delivery dates are
known

Employee

Sequenceofevents
throughreturntowork
andunderstandingof
relatedsystems

6 ~ 3 months
prior to delivery

2 monthsprior to delivery

Leaveprior todelivery

Delivery

Return preparation
Childcare leave

Leave
after
delivery

2 weeks
2 ~ 1 months
prior to return prior to return

Period for use of “wiwiw”
Exchange of information with superiors, home study courses taken

Work continues

Preparation for return
Kangaroo Club

(Back-to-Work seminar)

Superiors

Sequenceofevents
throughreturntoworkand
understandingofrelated
systems,confirmationof
ownroleAfter return

Meetingprior toreturnMeeting prior
to leave(1st time)

Adjustment toworkplace,display of abilities

Meetingprior toreturn(2nd time)

Preparation and execution of support plan

Employee’s considerations about work, examine workload
Look into replacement during
leave period

GeneralAffairs

Explanationofoverall
programtoemployee
andsuperiors

Oversee continuation of work

Support for employee taking leave (regular exchange of information)

Support for employee and superiors

Support for employee taking leave

Support for adjustmentof employee(provide information, help with procedures)Support for superiors concerning
decisions made after return to work

41

Relationship with Employees[Creating Healthy and Safe Workplaces]

All of our employees want to work in a safe and pleasant environment, so we conduct ourown health and safety activities. Our basic policy is to support the creation of comfortableand 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 affiliatecompany.
SystemThis Year Results

Standards and guidelines
Management and employees together established the Central Health and Safety Committee
within the head office. Each Operation and the Group company has a similar system for discussing and promoting health and safety related activities. We have also created companywide standards and guidelines related to these topics.

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.

Accident prevention
We analyze potential hazards and take steps to prevent accidents involving revolving machinery, which is a major cause of industrial accidents.

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.

Employees holding qualifications as of March 2006
Industrial sanitation administrator: 349
Operation chief: 2,126
Completed technical course for restricted work operations:
5,522
Completed special educational course: 2,282
DNP’s accident rate is low compared to the industry-wide
average and even compared to the average for all types ofprinting industries
Jan - Dec 2005: Industrial accident rate*: 0.50%
This program started in July 2005, when the Ichigaya
Publication Printing Operations sent the devices to thesecurity offices at our Ichigaya, Kuki, and Tsuruse plants.
We then proceeded to install them nationwide, including
at 14 Clinics, 3 rest facilities, the C&I Building Disaster
Prevention Center, and the Ichigaya Health Center, with
devices at a total of 22 locations as of March 2006. We
promptly responded to the need for training in use of thedevices, combining that offered by the manufacturer withas qualification courses in emergency skills taught by theFire Defense Agency (11 persons in the Ichigaya area),courses offered by specialist institutions (39 doctors andnurses) and others.
These AEDs have a computer installed that automaticallyanalyzes the electrocardiogram when the electrodes areplaced on the chest, determines whether or not there isventricular fibrillation, and uses sound to indicate the application of electric shock.

Industrial Accident Rate
2.0

1.82

1.79

1.77

1.78

1.85

1.95

1.49

1.5
1.12

1.06

1.15

1.45
1.03

1.0
0.59

0.52

0.57

'0 1

'0 2

0.66

0.5

0

'0 0
DNP Group

Total printing industry'0 3
Total industry* Industrial accident rate: the number of employees who missed work due toa work-related accident divided by the total numberof hours worked in units of 1 million hours

42

Previous Year Results

Major standards and guidelines
1) Workplace environment improvement• Workplace environment standards• guidelines for preventing noise in the workplace• guidelines for tobacco smoking
2) Preventing work-related accidents• Guidelines for preventing industrial accidents caused
by machinery, etc.

0.49

0.50

'0 4

'0 5

Jan. - Dec. 2004: Industrial accident rate:
0.49%

Social Performance

Secure Working Environment
DNP has created an earthquake response outline and a central disasterprevention basic plan, in order to secure
employees’ safety, restore functioning
to workplaces, and support employees’
families and local residents in the eventof a disaster.
We established “Disaster Prevention
Councils” in operations and Group
companies at our headquarters and in
outlying areas. In the event of an earthquake, these councils are prepared toautomatically begin functioning as response headquarters.
Six action teams are to take specificdisaster prevention measures and earthquake response measures, with eachteam taking responsibility for human rescue, care of buildings, asset protection,business operations, PR, or community
aid. Furthermore, by shoring up the emergency communications network system,
which are disaster airless systems at
29 business sites in the Kanto area andsatellite phone facilities at 42 sites nationwide, we are able to provide prompt andappropriate assistance not only for thebusiness affected by the disaster, but also
to regional residents and businesses.
In certain areas we also use theEmergency Earthquake Information*
provided by the Japan Meteorological
Agency. This system provides an alertthat major seismic activity is anticipated,
activating our damage control measures.

Strengthening Cooperation
with Local Communities for
Disaster Response
One way in which we seek to contributeto local communities in the Ichigaya area
is by forecasting flooding along the Kanda
River, and offering temporary refugeon the second floor of the DNP HealthCenter gymnasium to those unable to undertake their own evacuation measures.
We concluded an agreement concerningthese cooperative measures with theTokyo Fire Department Ushigome Fire
Station on November 18.

Liaison meeting for offices participating in thelarge-scale disaster support agreement

Expanding and StrengtheningO u r E m e r g e n c y Tr a i n i n g
System
We have installed automatic external
defibrillators for prompt response to heart
attacks and other emergencies at our
Ichigaya, Kuki, and Tsuruse plants (in the
security offices). In conjunction with the
installation of the AEDs, on September
14, we also launched a basic life support course (operation of the AED) at the
Ichigaya Plant, with the cooperation of
the Ushigome Fire Station. 17 people enrolled in the course.
The Ichigaya Publication Printing
Operations have been offering courses inbasic life support in cooperation with the
Ushigome Fire Station since 1994, andup to now 670 people have completed
the course. 51 of our staff took the AED
course this year, and are ready to respond in an emergency.

Basic life support workshop and AED

DNP Group Natural Disaster Organization
Management

DNP Group
Central Disaster Prevention Council

DNP Group
Including Disaster Response
Headquarters

Coordinate

Regional Disaster
Prevention Committee

Disaster Measure include:• Execution of disaster training• Joint simulations with regions• Measures for those unable to return home
• Preparation of emergency stockpiles

Including Response Headquarters by
Operations and Group companies

ActionImplementation

self-fire department

Regional Including Response
Headquarters
ActionImplementation

Decision making/
Implementation

Disaster Prevention Committee by
Operations and Group companies

ActionCommittee

Ad-hoc Committees
ActionCommittee

Permanent Committees

self-fire department

Actions to be taken include:• Get businesses back up and running• Provide support for employees and their families• Support for local residents• Support for local businesses*Emergency Earthquake Information: This earthquake information system analyzes seismic waves
detected immediately after an earthquake through sensors
located near faults, and provides information about theepicenter and seismic scale prior to the arrival of large quakes.

43Social Contribution (Corporate Philanthropy)

The Ginza Graphic Gallery celebrated its 20th anniversary, and more than 1 million visitors enjoyed the exhibits at our three galleries.
As a printing company, we are most involved in providing exhibitions of art and graphic design, which are related closely to ourbusiness. We seek to provide corporate philanthropy with originality, focusing on the graphic arts as suggested by our motto, "living side-by-side with our trade."[ggg]20th anniversary
DNP opened “ggg” (Ginza Graphic Gallery) in Tokyo’s Ginza in March 1986.
Since then we have continued to specialize in introducing the creative works
of Japanese and overseas artists andgroups focusing on the themes of graphic
design and printing, and in 2005 theGinza Graphic Gallery celebrated its 20th
anniversary. We have held 238 program
exhibitions since our first exhibition featuring the works of Tadashi Ohashi, andover the years the gallery has had morethan 760,000 visitors.
In addition to the Ginza Graphic Gallery, in 1991 we opened the ddd gallery
in Dojima, Osaka, where, as the premiergraphic design gallery in the Kansai area,
we mainly focus on exhibitions of cuttingedge artists from other countries. We also
opened the CCGA (Center for Contemporary Graphic Art) in Sukagawa, Fukushima. It stores the Tyler Graphics Archive
Collection of Tyler Graphics of the USA,
which is well-known as a modern graphic
arts center. In addition to regular exhibitions of the works it holds in storage, theCenter also holds exhibitions of a wide
range of modern art.

more people can encounter and enjoy thewonders of graphic design.

Graphic Art Archive
DNP established the DNP Archives ofGraphic Design in 2000, where we take aproactive, organizational approach tocollecting, storing, and archiving works ofgraphic design. The archives aremaintained through the ggg, ddd, andCCGA, and we provide comprehensive
information concerning graphic art.
The DGA is currently involved incollecting and storing poster art andrelated materials from the 1950's throughthe present, mainly focusing on Japan,
with 5,400 objects currently stored in the
database (as of March 2006). Thec o l l e c t i o n i s c u r r e n t l y o ff e r e d f o r
exhibitions and loaned to art museums
and educational facilities, as well as
being made available for graphic design
research and study.

<20-year history>
March 1986 Opening of ggg
October 1989 Sponsor of “Europalia ‘89” (Bel-gium) “Modern Japanese Poster
Exhibition”
September 1991 Renovation of ggg
November 1991 Opening of ddd
July 1992 First test exhibition at ddd, “Design, Print, and Paper”
November 1992 Publication of “ggg Books”
April 1995 Opening of CCGA
December 1995 CCGA wins the “Display DesignAward Grand Prix” (Japan Display Design Association)
March 1996 ggg wins “Mainichi Design Award
Special Award” for 10 years ofactivities (The Mainichi Newspapers)
December 1996 ggg 10th Anniversary Exhibition/
Mecenat Award of Outstanding
Popularization of the Arts
April 1997 CCGA holds the Graphics ofJames Rosenquist Memorial
Lecture, “Artists and Rights in theAge of Multimedia”
January 1999 One-line.com project 2nd JapanMedia Arts Festival, "ExcellencePrize" in Digital Art(Interactive Art) Division
September 2000 CCGA holds the “DNP Archives ofGraphic Design Inaugural Exhibition”
February 2002 ggg begins trials of “gallery talks”
March 2004 ddd changes its logo to ddd
October 2004 ggg begins “creative tours”
September 2005 ddd opens its “Creative Square”(formerly, “Solutions Square”)[Attendance at ggg·ddd·CCGA tops 1
million]Cumulative attendance at our three galleries - ggg, ddd, and CCGA - topped 1
million in 2005. Attendance at the ddd
alone exceeded 200,000, making thisyear a turning point. We will continue
to present exhibitions so that more and[ggg (Ginza Graphic Gallery)]44[ddd Gallery][CCGA (Center for Contemporary Graphic Art)]

1F, DNP Ginza Bldg., 7-7-2
Ginza, Chuo-ku, Tokyo

1F, Dojima AXIS Bldg., 2-28,
Dojimahama 2-chome, Kita-ku, Osaka

1, Miyata, Shiota, Sukagawa-shi,
Fukushima

Established: 1986
• Total• number of visitors: 760,000 persons

Established: 1991
• Total• number of visitors: 210,000 persons

Established: 1995
• Total• number of visitors: 55,000 persons

Social Performance

Expanding International
Exchanges through Art
Information
DNP is sponsoring the Japanische
Plakate - heute (Japanese Posters Today) exhibition for 1 year and 10 months,
from February 2006 through November
2007, at six national
and public museums
in four European
countries- Germany,
Switzerland, Czech,
and Poland- in orderto give the people
an introduction to
Japanese graphic
design. This exhibition is made up of
132 posters selectedfrom the excellent
Poster from Japanese Posters

Japanese design collection held by DGA.
It focuses on comparing the works ofleading modern Japanese graphic designers with those of young designers.
Through this we hope to introduce theworld to DGA’s activities, which make up
a part of DNP’s contribution to culturaldevelopment.
We also opened the Maison desMusées de France (MMF) in Ginza in
2003, through a partnership with the Reunion des Musées Nationaux, which issupervised and operated by the French
Ministry of Culture and Communication.
The MMF provides a broad variety of
information about French art museums,
offering introductions to the art museumsof France, access to information about
exhibitions, and art seminars. The MMF
also will continue to engage in various
projects with French art museums, mostimportantly the Louvre.

Today exhibition

Seminars held
[ggg, ddd Gallery Talk]
Along with the graphic
design exhibits held at
the ggg Gallery in Ginza
and the ddd Gallery inDojima, we also conduct
talk shows featuring
graphic designers and art
directors among students
and professionals. (Admission is free.)
ggg:since 1995
12 times a year: a total of 142 shows• Total number of participants: approximately
11,100 persons
ddd:since 1992
10 times a year: a total of 126 shows• Total number of participants: approximately
11,000 persons[MMF Art Seminars]
These are sponsored by
the Maison des Muséesde France (MMF) in
Ginza, which provides
information about art museums and works of art inFrance and sells museum
goods. The lectures, thetopics 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 21
lectures up to now.
• Cumulative of participants: Approx. 1,100[The Ginza School]

Graphic design has made borderless networks
possible.

This is an event that
DNP organizes aroundthe theme,“Let’s
Enjoy Thinking about
Communication.” Guest
speakers from various
circles address an audience of male and female participants of allages, in an entertaining format.

Prof. Dr. Florian Hufnagl

Admission is 500 yen. Located in DNP’s Ginza
Annex, the event has been held 50 times since
1995, with a total of 4,500 people attending.

Introduction of Director Hufnagl

MMF Information Center

Head Director of Die Neue Sammlung Bayern State Museum of Applied Arts and DesignThe exhibition succeeded in highlighting stylistic changes and the transformation in printing technology that result from increasing digitization and globalization, as well as a certain degree of continuity that characterizes an unmistakably
Japanese aesthetic sense. Thanks to their highly idiosyncratic graphic language,
great expressiveness and sophistication in printing terms, Japanese posters playa leading international role in applied art.
We should like to express our particular thanks to DNP for the opportunity ofpresenting this subject-matter to an interested public in Europe and for their support for the project.
The leading institutions involved in this traveling exhibition are Die Neue Sammlung as its first stop, which also took charge of editing the catalogue, and theMuseum of Applied Art in Prague, that was also responsible for the design of thecatalogue. However, the exhibition does not only link DNP in Japan with Europe,
it also joins together the participating museums in several countries throughout
Europe. In fact, the tour has resulted in a cross-national network.
The galleries run by DNP, ggg in Tokyo and ddd in Osaka, are highly regarded
throughout the world as communications centers for graphic design; being onshow here is an excellent reference.
All these activities evidence DNP’s unusual degree of commitment to the international exchange of ideas in the field of graphic design. It would make me happy
if DNP were to successfully pursue this line of activities in the future, too, and tocontinue to offer internationally active museums the opportunity for cooperationagreements.

DNP Museum Information Japan Artscapewins the 2005 Japan Mecenat Awards
URL: http://www.dnp.co.jp/artscape

Artscape, DNP’s art information website,
specializes in art museum and artwork
information, and receives around 1 million page views per month. The site hasreceived high marks for its groundbreaking efforts for the past ten years, andin November 2005 it received the 2005
Japan Mecenat Awards, Mecenat Award
for Art information andCulture. We publishedthe Artscape Chronicle
1995-2005: Art, Net,
Museum, in both Web
and bound formats, tocommemorate winning
this award.

45

Social Contribution (Local Communities)

With a sense of gratitude and a desire for harmony, we are moving forward with our
local communities.
DNP conducts business in most regions of the world. We are engaged in a wide variety of programs together with the residents oflocal communities so as to create rich and safe societies.

Efforts in Japan[100 Yen of Love Campaign](DNP Technopack Kansai)
DNP Technopack Kansai, which is located in Kyoto, has continued its the 100
Yen of Love Campaign efforts for morethan 20 years. This campaign, mainly
operating through the work of volunteers
from labor unions in the Kyoto area, is adrive to collect money from employees
at summer and winter bonus time so thatchildren living in institutions can have theopportunity to participate in camp andother events. Many of the employees
also volunteer to work at summer camps,
where they can get to know the children.

[Purchasing Fairtrade coffee](DNP Facility Services)
DNP Facility Services has made theswitch to Fairtrade coffee at the employee dining halls and client reception areasof all major DNP offices (Tokyo, Osaka).
Fairtrade coffee is now also being soldat our My Shops, which are employee
stores for food and household items.
DNP hopes through these efforts tocontribute to the development of soundcommerce in developing countries andto finding solutions to issues such as
poverty and forced labor. In addition, we
hope that this will help to popularize theFairtrade concept in Japan, both within
and outside our company.

46[Award for Continuous Contribution to Red
Cross Work](My Point .com Japan)
My Point .com Japan placed a “Donate to
the Japanese Red Cross Society” button
on My Point, its free Internet point service
point-exchange menu. Every 100 points
donated in this way is matched by a100yen donation from My Point members.
My Point has been making donations inthis way since April 2005. In recognitionof their efforts, My Point received the“Silver Award” for distinguished service incontributing to Red Cross work (disaster
relief efforts, international activities, medicine, etc.).

[Sponsorship of the Netday Summit in
Kashiwa](Dai Nippon Printing)On Net Day, efforts are made, mainly by
volunteers, to build school information
networks throughout Japan. In August
2005, DNP sponsored the Netday Summit in Kashiwa, so that people involved
in Netday activities could come fromthroughout Japan to exchange information.
DNP employees, who have been involved in these activities, mainly in the
Gunma Prefecture area, for nearly 10
years, also participated as key membersin this event. DNP is active in the information network business, so we are inaccord with the aims of these activities,
and seek to offer our support as one facetof our social contribution efforts.

[Contributions to the Printing Industry](Dai Nippon Printing)
DNP is putting all of its efforts into displaying greater sensitivity toward theimportance to society of the protection of
personal information, in particular in lightof full passage of the Act on the Protection of Personal Information in April 2005.
An extremely great volume of personal
information is handled by the printing
industry. The entire industry must fully
understand the importance of personal
information protection and also must
manage data properly so as to gain theconfidence of society.
It was with this in mind that Personal
Information Protection Q&A for the Printing Workplace was published by The
Japan Federation of Printing Industries in
February 2006. Having established our
Personal Information Protection Policy
in 1999, DNP has gained vast personal
information management know-how,
and we provided thorough back-up forthe creation and publication of this book,
dispatching our Personal Information
Security Division experts to contribute to
the editing. We also dispatched lecturers
to the briefing held for Personal Information Protection
Q&A for the Printing Workplace inMarch 2006, aspart of our effort
to ensure that it isfully understood.

Social Performance[Scholarships for Local Community
Colleges](DNP IMS America)

Efforts Overseas[YMCA Childcare Program](DNP Electronics America)
DNP Electronics America has continuously participated in the Childcare Program
held by the YMCA. Through this program, volunteers visit elementary school
children forced to remain at school after
lessons are over because their parents
are still at work. The volunteers interact
with the children through games andsports, in the hope of contributing to theirsound development.

[Donating Notebooks to Local Elementary
Schools](DNP Indonesia)
DNP Indonesia distributed two notebooks
apiece to approximately 5,000 elementary school students living in five villages
in the vicinity of its plant, Karawang
International Industrial City in West Java.
This program was undertaken in
conjunction with the industrial park’s residents’ association as part of the overall
effort do create mutual prosperity andharmony. The residents’ association also
conducts a variety of efforts, such as contributing scholarship funds to middle andhigh school students.

[In-House Apprenticeship for Local HighSchool Students](DNP IMS America)
DNP IMS America participates in the
Bulldog Survival Camp program run by
the Cabarrus County High School System
of North Carolina. This program is designed to help prepare high-risk students
for adjustment to life in society, and seeks
to increase their interest in entering society and starting a career. 20 students
from area high schools were accepted for
two in-house apprenticeship periods inJune and July 2005.

Since its founding in 1995, as part of its
social contribution efforts DNP IMS America has donated $50,000 in scholarshipfunds to Rowan-Cabarrus Community
College (RCCC), which is located nearcompany headquarters. About $30,000of that amount was due to an increased
contribution commemorating the 10th anniversary of the founding of the company
in 2005.

[Accepting Internships from Europe](Dai Nippon Printing)
DNP participates in the Vulcanus in Japan
Program sponsored by the Eu-Japan
Centre for Industrial Cooperation, offering corporate internships to European
polytechnic and university students. This
program offers one-year internships
annually, beginning in September andending in August of the following year,
to the young people who hold the key tofuture Japan-Europe relations. Students
from Latvia and Malta sharpened theirskills in 2005.

I came to study electronics.
Linards Grigans
Vulcanus in Japan Program Internship Student (Republic of Latvia)
Electronic Devices Laboratories

I

came here to pursue the study of electronics, which is my major at my university
in the Republic of Latvia. I learned about the internship program from an article
in my university newspaper. I think this is an excellent opportunity to learn about
the business and environment of a Japanese company, as well as to become
familiar with Japan’s unique culture and spirit. Through the internship program, I
have been able to make a lot of friends from many different countries. The people
at the workplace have been very kind and friendly, and any time I need help witha problem at work everyone in the office comes to lend a hand. One thing I would
like ask of DNP is that they offer more training and seminars for interns.

47

Social Contribution (Our Business/Academic Research/Education)

DNP seeks to make social contributions as we interact with society through our corebusiness.
We are pouring our efforts into contributing to society by applying our core business printing technology to areas such as culture
and medicine. Our entire Group is seeking to expand the range of our contribution to the creation of a rich, sustainable society
through our everyday business.
<Preserving Important Cultural Assets through Printing Technology>

We draw upon our printing technology in ourefforts to preserve cultural assets.
Many of Japan’s traditional cultural assets
have been written or drawn on easily perishable material, such as wood or paper. In
addition, concern about degradation due tothe rapid changes in the global environmentis creating greater interest in the preservation of cultural assets. DNP Media Create
Kansai inaugurated the “Takumi”(Meister)
Project in 2000, and began working to preserve important cultural assets for the next
generation through the method of digital
reproduction, which puts to use DNP’s printing technology. In the past, the facsimile
reproduction technique was widely used topreserve cultural assets. This process, however, takes a long time, and in some cases
the nuances of the picture are altered due tothe interpretations or subjectivity of the artist
reproducing the work. At the same time, itremains difficult to respond to unanticipatedsituations, such as natural disasters or damage caused by people. Through sufficient
prior examination and inspection with the supervising editor, the latest technologies, suchas digital image processing using computer
technology, DTP editing that digitizes the
prepress process, and production methods
that include the use of actual gold leaf in our

Collaboration with
Universities
Industry-academia collaboration entails
the creation of new values through joint
research conducted by universities,
Cooperating with Universities

48

own special processing/gold leaf printing(patent no. 3789693), DNP’s digital reproduction allows for world-class reproductionof cultural assets and works of art throughprinting technology.
We have been working to create reproductions of partition paintings andother works of art in the Okyo Hall of theTokyo National Museum, primarily thoseof Maruyama Okyo from Daijoji Temple
in Kami, Hyogo Prefecture, including“Matsunikujakuzu,” “Kakushigizu”, and“Sansuizu,” and other cultural assets of historical importance. There are many paintingsand examples of calligraphy that are composed on parts of buildings such as walls or
sliding screens, so by substituting “digital reproductions” for originals on these items we
can impart a sense of the richness of ancientartistic spaces. DNP will continue pursuingthis important cultural work as part of our efforts toward social contribution.

We are making contributions
through reproduction technology,
which is the basis of printing.
Yoshio Imanaka“Takumi” Project, Meister
DNP Media Create KansaiI

can combine the experience I have gained working
from my 20’s into my 60’s in the planning, technology, prepress, printing, production management, andquality assurance fields in this dynamic project, whichis representative of our desire to further the superiority of DNP’s technology. We
are working to reproduce the highly-skilled brushwork, line strength and density,
cracks, and colors of the original paintings, by using the technologies and experience we have developed through printing. This project covers the entire process,from preliminary inspection and photography through printing and framing, and I
have had to put a lot of study into learning about areas new to me, such as selection and development of Japanese paper, adhesive, and ink. I am very proud tobe in contact with such treasured cultural assets, and to be able to participate in
the preservation of cultural assets to be passed on to future generations, which I
view as deeply significant from a social perspective.

research institutions, and industry. University research activities help to fulfill an
educational institution’s important social
mission of developing excellence in theyoung people who will lead the next generation. DNP takes a serious approach
toward maintaining strong collaboration
with universities.

Description ofcooperative activities

Case Example

Courses

Offering a course called “Nanomedicine DNP” at Tokyo Medical and Dental University, we cooperate withthe university to promote research to find applications of printing technology in the field of regenerative
medicine for organs, for which there are great expectations in the future.We also have established an “ArtManagement Course” and an “Introduction to Entrepreneurship” course at Keio University.

Providing instructors

For universities that promote research in new media, we offer courses in the development of information
technology in the printing industry.

Scholarships andgrantsDNP provides scholarships and grants to several active universities and researchers in Japan andabroad to fulfill their aim in creating a ubiquitous networking society. These scholarships and grants are
actually donations, given free of charge, for which we do not expect direct compensation. We also offer
scholarships at Waseda University and The University of Tokyo, where joint research related to the emergently evolving society is being conducted

Joint-research andcommissioned
research

We commission research and promote joint-research at universities expected to yield direct results inresearch and development for the printing industry. Depending on the circumstances, we provide researchers from our company to take part in joint-research activities, in order to obtain valuable results
through close exchange. These research activities are conducted in various forms, with some, for example, receiving special project budgets from the national government, and others becoming the basis of
the funding of venture businesses that originate from the university and are expected to produce results
early on. We have also launched the “SFC-DNP Project” with Keio University.

<Keynote Speech at the Tokyo-Kansai Four-University Forum>
President Kitajima delivered the keynote speech at
the Industry-Academia-Government Collaboration
Forum (Sponsor: Ministry of Education, Culture,
Sports, Science and Technology; Second Sponsor:
Ministry of Economy, Trade and Industry / Nippon
Keidanren, others), which was set up according tothree frameworks - Marrow, Truth, and New- forindustry-academia-government collaboration by four
universities (Keio, Waseda, Ritsumeikan, Doshisha).
President Kitajima noted that printing, an applied technology that has expanded to many areasof business as it continued to develop, has relationships with a wide variety of industries as well as
many ties to academia, and in his keynote speech headdressed the forum as a representative of industry.
In his speech, he described the efforts of industry
and academia working in collaborative efforts fromthe basic research stage through business creation,and the desire for government support in that process. He also noted the importance of structures forjoint use by universities and industries of intellectual
property assets and for personnel exchange, as wellas the importance of dialogue between universities,
industry, and government organs.

2005 CSR Awards

Social Performance

DNP has received a number of awards in recognition of our CSR efforts.

The expectations of our stakeholders are high, and we have been given high marks from them for our efforts in areas such astechnology, personnel policies, and corporate philanthropy. We will continue to strive to maintain the confidence of all of our
stakeholders.

Date

Name of evaluation / Name of award
Sponsor / Examining Organization

Details

29th Kinoshita Prize
Research and Development

For development of Untouch-through Stand Retort Type microwaveable
retort food pouch. The ability to microwave the retort food without opening it, its superior oxygen and steam barrier after retort sterilization, its
superior impact strength, sealing and opening characteristics resulted inan overall excellent evaluation.

2005.6.10

Japan Packaging Institute2006 Family Friendly Award, Tokyo Labour
Bureau Director’s Prize
2005.10.18

Ministry of Health, Labour and Welfare

2005 ICCJ Award

For making the greatest contribution to Japanese-Italian commercial relations
For the establishment of DNP Photomask Europe in the Milano area andcultural contributions

2005.11.22

Italian Chamber of Commerce in Japan2005.11.24

2005 Recommended Company Magazine, Editor’s Award / Recommended Company Video
Magazine, Media Award
Nippon Keidanren

2005.11.25

For implementation of DNP’s own back-to-work program supporting a balance between work and home, and for efforts to create a comprehensive
policy for supporting this balance2005 Japan Mecenat Awards
Mecenat Award for Art Information andCultureAssociation for Corporate Support of the Arts,
Japan
Second Annual France-Japan Investment
Awards(Manufacturing)

2005.11.28

Invest in France Agency (AFII)In the running for the 8th Nikkei Annual ReportAward
2005.12.29

Nihon Keizai Shimbun

Award system for superior company communications implemented annually with the goal of promoting company communications useful inmanagement

For the valuable role of the art information website DNP Museum Information Japan “Artscape” in providing Japanese art information for the pastten years

For contribution to economic development through direct investment
between France and JapanFor the establishment in France of CDO which produces and sells FAX
paper in France, and for the establishment of DNP IMS France, a sales
company, as well as for cultural contributions

Recognition received for original design employing ukiyoe, which are
popular in foreign countries, and for easily understood explanations of
DNP’s basic technologies and the products it has developed

Prizes Received by Group Companies or Business Divisions
Date

Division Receiving Award

Name of evaluation / Name of award received / Name of award

Sponsor / Examining body2005.6.14

DNP Facility Services

2005 Precision Control Superiority Award

Japan Association for Working Environment Measurement

2005.6.22

Production Division, Decorative
Interiors Operations (Tokyo)

Fire and Disaster Management Agency Chief Officers Award(Superior Handling of Dangerous Items by a Business)

Fire and Disaster Management Agency

2005.9.9

DNP Technopack Yokohama

2006 Hiring of the Disabled Promotion Convention (Kanagawa Governor’s Award)

Kanagawa Prefecture
Kanagawa Hiring of the Disabled Promotion Association

2005.9.9

DNP Data Techno Kansai

Nara Prefecture Hiring of the Disabled Promotion Association
Chairman’s Award

Nara Prefecture Hiring of the Disabled Promotion Association

2005.10.7

Individual Award: Toshihiko Shimizu,(Then-) Manager, DNP Data Techno
KansaiNara Prefecture Labor Standards Association Chairman’s
Award

Nara Prefecture Labor Standards Association

2005.10.13 DNP Data Techno Kansai

2006 “Family Friendly Award”, Nara Labour Bureau Director’s Prize

Ministry of Health, Labour and Welfare

2005.10.21 DNP Tokai

2006 “Family Friendly Award”, Aichi Labour Bureau Director’s Prize

Ministry of Health, Labour and Welfare

2006.2.1

Individual Award: Masaaki Suzuki, Assistant Manager, Production Division,
Ichigaya Publication Printing Operations

2006 Health, Labour and Welfare Minister’s Award for Superior Work Safety

Ministry of Health, Labour and Welfare

2006.3.20

DNP Tohoku

2006 Superior Supplier Award

Nippon Becton Dickinson Company

2006.3.31

My Point .com Japan

Silver Award

Japanese Red Cross Society

49

Environment

DNP and Global
Environmental Issues
Environmental issues are of major importance to DNP as a manufacturer.

Th

eB

We are aware of our environmental impact, and strive for zero emissions,
resource conservation, and toxic substance controls.
Ri

as

ic

En

B
A asic
Re L
cy aw
cli f
ng or
-B Es
as tabed li
Ky
So shiot
cie ng
oP
ty
ro
to
co
l
vir

on

oS

m

Un

on iteth d NeH aum tionan s CEn on
vir fer
on en
m ce
en
t

Ba

sic

La

w

fo

rE

nv

iro

nm

en

ta

lP

ol

lu

um

m
e
La nt
w

it

Zero emissions

Natural resource depletiontionGlobal warming
measures
Tropical forests in decline
Environmental conservation measures
Desertification

Waste management
measures
Acid rain

Odor measures

Plant location
measures

Diminishing wildlife species

Noise measures

High-resource consumption society

Vibration measures

Ground subsidence
measures

Waste watermeasures50

Air pollution
measures

Ozone depletion

Marine pollution

Soil contamination
measuresEnvironmental Performance

Use of recyclable
resources

Use of new energy
sources

Sustainable Society

Reduce dependence on
exhaustible resources

Control emissions ofenvironmental pollutants
LCA
Increase environmental
efficiency

Information disclosure &provision(Environmental reportpublication, labeling)

Environmentallyfriendly products

Major improvements inenergy and resource use

Environmental communication

DNP

Environmental
accounting

Supply chain management

Environmental management
systemGreen purchasing

Environmental education

VOC measures

Chemical substancemanagement

51

Environmental Policy / Environmental Management Structure
As a manufacturing company we have a responsibility to contribute to the realization of a recyclingbased society.
After establishing our Environment Department in 1972, the DNP Group drafted its Environment Declaration and began full-scale
activities for environmental management in 1992. In 2000 we established the DNP Group Environmental Policy.

DNP Group Environmental Policy
The DNP Group’s efforts are directed towards the continuous prosperity of a world economy with limited resources and forthe development of a society that recirculates resources. The DNP Group is making every effort to minimize the impact ourbusiness operations have on the environment, and this includes compliance with environmental laws and regulations as well
as recognizing the relationship that each of our business activities has with the environment.
(1) Each member of the DNP Group establishes and periodically reviews its own environmental policies and environmental
targets, and puts into effect continuous improvement of its activities and the prevention of environmental pollution.
(2) For all construction projects, and before designing and commissioning new facilities, we carry out a full and detailed environmental survey to assess the impact that the project will have on the environment to make proper efforts to protect theenvironment.
(3) When carrying out research, development and design for a new product, we consider the impact of the product on the environment throughout its life cycle, including the ordering of raw materials, production, distribution, use, and disposal. We
give special consideration to energy conservation, resource conservation, and reducing the use of harmful chemicals.
(4) When purchasing raw materials, stationery, and equipment, we choose items that are ecologically-friendly and easy torecycle.
(5) In manufacturing a product, we aim to comply with environmental laws and regulations, and moreover we set up more
stringent standards to reduce the emissions of pollutants into the air, watershed, and soil, and to prevent unpleasantodors, noise, vibration, and land subsidence. We are constantly improving facilities, techniques and manufacturing processes to promote the targets of energy conservation, resource conservation and the reduction of industrial waste.
(6) When generating waste from business operations, we strive to achieve zero emissions by separating and recycling waste
as much as possible.
DNP Environmental Committee / March 2003

Environmental Management
Structure
Controlling the environmental activitiesof the entire Group through an optimum
management system
Our environmental management system consists of the DNP Environmental
Committee, which is in charge of the
management of the entire Group, and the
Operations Environmental Committee.
Each committee has its own promotional
office.
The DNP Environmental Committee, which is made up of the directors
in charge of the basic organizations atcompany headquarters, deliberates anddecides on environmental policy, objectives and plans for the entire Group, andmonitors the progress of the plans andthe status of the achievement of thoseobjectives.
The decisions made by the DNP Environmental Committee are further developed by the Operations Environmental
Committee with consideration to thecharacteristic features of its own sphereof business.

DNP Group Environmental Management Structure
President
DNP Environmental Committee
Chairman: Managing Director of the Environment& Product Liability Department
Members: Directors of the basic
business divisions at headquarters

Promotion OfficeDirector : Manager of the Environment &Product Liability Department
Members : Managers of the basic operations at
headquarters, Managers of the Environment &Product Liability Department, and members of theTechnical Division

Environmental Committee in
Each Operation
Environmental Committees in 28 operations
Chairman : Operations Managers or Presidents ofGroup Manufacturing Companies
Members : Division Managers of each operation,
and Presidents and Division Managers of Group
Manufacturing Companies

Promotion OfficeDirector : Full-time or others
Members : General Managers of the operations(1) Deliberate and decide on environmental policies, targets and plans of DNP Group(2) Approve environmental policies, targets and plans of the Operations
Environmental Committee(3) Check and follow up on the progress being made in the plans of the Operations
Environmental Committee, and the status of the achievement of those objectives(1) Propose the DNP Group Environmental policies, targets, planning,and submit reports to the committee(2) Convey the environmental policies, targets, and plans of the DNP Group to all
Operations Environmental Committees, check its progress, and support activities members(3) Report to the Environmental Committee regarding the progress (results, progressof the measures, etc.) achieved by the Operations Environmental Committee

29(1) Deliberate and decide on the environmental policies, targets and plans ofeach operation(2) Check and follow up on the progress of plans by the Operations
Environmental Committee, and the progress being made towards the targets(3) Periodically hold committee meetings276
members(1) Submit the environmental policies, targets, planning, and report to
the Operations Environmental Committee(2) Convey environmental policies, targets, and plans of divisional groups
decided by committee to all sites, check and follow up on its progress(3) Report to the committee regarding the progress(results, progress of the measures, etc.) being achieved by all of the sites

248
members

Technical and Manufacturing Group

Environmentally Conscious Products Development GroupRegional Measures Group

Environmental Conservation and PRTR Group

Office and Work Environment Group

Industrial Waste Reduction Group
Energy Conservation Group

Each Site of the Operations52

12
members

57 sites

741
members

Environmental Management System

Environmental Performance

Promoting the Eco-Report System for Practical Environmental Management

Eco-Report System is DNP’s own environmental management system created in 1993 with the goal of attaining the DNP Groupenvironmental targets. It forms the basis of our environmental management efforts.

forts are those that gain us recognition as
a company and that actually get results incontributing through environmental management for the realization of a resource
circulation society. These include green
purchasing, reducing the environmental impact of our production processes,
developing and selling products that areeven more environmentally-friendly, andreducing the environmental impact of theshipping process.

Eco-Report System
PDCA (Plan-Do-Check-Action) is developed over biannual cycle using three
tools - the DNP Group Eco-Report, theSite Eco-Report, and the Environmental
Guidelines - and is directly connected tothe making of continuous improvements.
The main themes of our environmental ef-

Eco-Report System
Management Concept
DNP Group Corporate Pledge
DNP Group Environmental Policies(DNP Environmental Committee)
Promotion Office

Operations Environmental Targets(Operations Environmental Committee)
Promotion OfficeEnvironmental Guidelines

DNP Group
Eco-Report
Annual issue

DNP Group
CSR Report
Annual issue

Environmental organization
and responsibility
PLAN

DO

ACT
CHECK

This publication describes
various standards and guidelines(such as industrial waste
processing standards, energy
conservation standards,
voluntary inspection standards
for environmental conservation,
standards for office waste sortingand collection, and Eco-Audit
checklists) for establishing the
Eco-Report System.

Internal environmental
audit (Eco-Audit)

Site Eco-Reports
Annual issue

This report serves as a registry ofenvironmental management
activities. Each DNP business sitemust submit it twice a year (April
and October).

Based on the Site Eco-Report, weconsolidate and summarize thesemiannual environmental
activities of the entire group, and inlight of trends in Japan and abroad
regarding environmental issues, aswell as the status of the achievement of our group objectives, we
indicate policy for our activities
over the next half year. These
reports are issued twice a year (inMay and November).

Be the world’s corporate leader in environmental
conservation.
Saburo Kato
Chairman, Japan Association of Environment and Society for the 21st Century
President, Research Institute for Environment and Society

T[Environmental Policies and Targets]

The DNP environmental policies andtargets are decided by the DNP Environmental Committee at its head office andreviewed on a regular basis in light ofglobal and customer trends, and the status of company wide activities.
The policies and targets specified
herein are widely communicated throughout the company from the headquarters
promotion office to the environmental
committee and promotion office in each
operations.

[Implementing Activities at the Site]

DNP Group Environmental Targets

Environmental policies
of each site

Environmental management

he DNP Group’s environmental efforts are nothing less than earnest. One
finds descriptions on every page of the simple and honest implementation ofbasic environmental measures, such as setting up a policy, establishing goals andtargets, making regular revisions, implementing continuous improvements, andpreventing pollution. One especially notable item in this report is the significant increase in environmentally-friendly products, in which a conscious attempt is madeto use environmentally-friendly materials and to eliminate those that are hazardous.
I would like to see DNP attempt, if possible, to make all of its products environmentally-friendly. DNP, as a signatory of the UN Global Compact, should attempt toposition itself as the world’s corporate leader in environmental conservation.
In terms of things DNP needs to continue to work on, implementing measures
to reduce CO2 emissions resulting from transport would be an important step.
DNP is currently no closer to achieving its goal for per-unit fuel use. I would hope
they will achieve this after 2006. DNP should also put more effort into reducing
the incidence of unusable items and on improving the recycling rate.

When implementing specific activities,
each site conducts environmental activities as stipulated in the DNP Environmental Guidelines. Activities are recordedmonthly in the Site Eco-Report. On a six
month basis, results are assessed andtargets are set for the next six month period. In addition, site activities are audited
once a year to ascertain if they comply
with regulations and to see the achievement of targets for the overall group. Thisis done to ensure the improvement ofenvironmental activities.

[Flow for the Disclosure of Environmental
Information]

The headquarters promotion office publishes DNP Group Eco-Report covering
company wide activities twice a year,
based on changes in social environmental trends and the Site Eco-Reports fromeach operation. This is the Group’s white
paper on environmental activities. Following publication of the report, management
goes out to each site to resolve problems
at a particular site or the positioning ofeach problem within the Group for the
purpose of mutually understanding environmental information and pinpointing
important issues that exist among operations. The paper also supports the sharing of information and ascertaining future
key topics. Furthermore, once a year, thisDNP Group CSR Report is published to
inform of our environmental management
activities over the past year.

53

Internal Environmental Audit

Eco-Audit to further improve our Eco-Report System

We conducted Eco-Audits at 58 sites in FY2005. We are confirming that appropriate corrective actions are being taken for all
items designated “improvement required” or “improvement consideration & examination.”

Features

Results

The DNP Group has been conducting
eco-audits for environmental issues in thecompany since 1996. The promotional
office at company headquarters plans,selects a team of auditors, carries out theplans, and performs 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 thecorrective action response papers.
Feature (1)By bringing together the expertiseinherent in the products and manufacturing processes and the independence of the sites, the auditors areable to obtain significant and objective
results from their auditing.
Feature (2)In the Eco-Audit we place importanceon 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 achievementof the environmental targets. Whennecessary, we require audited sites toreview plans (Compliance audit andoperations audit).

We conducted Eco-Audits on 58 sites in
FY 2005.
Items requiring improvement, pointed
out through the audit, include legally conflicting items such as inadequacies
in the legal descriptions at waste product management facilities, and defects
regarding notification of specified facilities. All of the items indicated, however,were addressed in the corrective action
response papers submitted by the sites
in question, and it was confirmed that theappropriate corrective actions taken.
Analyzing the contents of the indicateditems and deciding on which items action
should be taken, we will follow up during
the Eco-Audit for FY 2006.
2005 Eco-Audit Performance
Number of sites audited

Type of Audit

58 sites

Number of attendees at sites

416 persons

Cumulative auditor numbers

123 persons

Cumulative auditing hours

587 hours

Collecting data by phoning directly

Types of Notifications and Corrections Issued in
the Eco-Audit
Types of Notifications Corrections

Improvement
required

Submission of a written descriptionof correction measures performed
or improvement plans

Improvement
consideration &examination

Submission as necessary of awritten description of results ofconsideration/examination or
improvement plans

Features Regarding the Expertise and Independence of Eco-Audits
Expertise of auditors
regarding products andmanufacturing processes

Confirming the site and actual items

Independence of auditors(sites)Confirming the traceability of data

Number of Notifications Issued for “Improvement Required” in Eco-Audit(Number issued)

100

Eco-Audit
ISO14001 External Audit
ISO14001 Internal Audit(We promote ISO14001 certificates for each site. See p. 75.)

50

0

54

'01

'02

'03

'04

'05

Air

1

2

0

5

1

Water

12

6

2

5

8

Noise

6

3

1

5

2

Vibration

5

2

1

4

1

Odor

1

1

0

0

0

Waste

62

30

27

14

18

Energy

1

0

0

1

0

Dioxin

1

0

1

1

0

Organization

4

1

1

1

1

Total

93

45

33

36

31

Environmental Performance

Step in Eco-Audit<Eco-Audit Contents>

Preparation and notification of annual plan

Promoted by Head Office

Auditing team
Lead Auditor

Formation of auditing team

Auditor
Auditing teamsites subject to audit

Adjustment of auditing schedule

Preparation of audit notification

Auditor

Performance of eco-audit

Person designated or
selected from auditors by
Head Office Promotions
Office Manager
Auditors
Persons having
qualification who
completed special
training course
Other persons
recognized as being
suitable by the
Promotions Office
Manager

Eco-Audit Notification

Notification to sites of impending audit(1monthinadvance)

Auditor Qualification
Lead Auditor

Auditing teamsites subject to audit

Auditing team

Auditor’s pre-audit meeting

Allocation of roles, briefing of site environment,
confirmation of deficiency notices in previous
audit
Confirmation of applicable standards, scope ofaudit, auditor assignment, types of deficiency
notifications, warning during audit, confirmationof documentation(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)

Open Meeting

Document Checking

Site Confirmation

Consistency of documents, state of managementof related facilities, site conditions

Auditor's Meeting

Preparation of Audit Report and Requests for
Improvement Measures

Closing Meeting

Description of audit results and content ofrequests for improvements
Audit Report and Requests for
Improvement Measures

Record of correction andmeasures performed
sheets from previous audit

Acceptane of Audit
Report and Requests fo
Improvement Measures

Correction Measures
Performed sheet

Completion of Eco-Audit

DNP Group Eco-Audit
checklist

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

Compliance Audit(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 ofdeficiencies in previous audit
State of submission of statutory notifications, reports, and changes
Frequency of measurement, validity ofmeasured data, traceability of clata
Changes in management personnel due
to internal transfers(2) On-site Inspections
Site location and relationship with surrounding sites
Conformity to statutory facility document
audit (type, number, scale, etc.)
State of management of individual
facilities and equipment, existence ofabnormalities
Emergency containment in case of abnormality or emergency
Site picture taking
Appropriateness of actual work performed
Operations Audit(1) Confirmation of validity of site policy andestablished targets
Performance in the previous term
Consistency with DNP Group policy
Continuity of performance in previous
term
Validity of established targets(2) Confirmation of the validity of implementation programs
Consistency between targets and programs
Effectiveness of the programs
Possibilities of the programs
Possibilities of fulfillment of the programs
Promotion system and schedule(3) Confirmation of achievement of implementation items, performance andtargets
Records of activities performed
State of progression of the programs
Effects of the programs performance ofindicator and achievement of targets

55Sites for Environmental Disclosure

The following consolidated manufacturing sites are subject to disclosure in this report.

Hokkaido/Higashi-ku, Sapporo• DNP Hokkaido

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

Kiyota-ku, Sapporo• Sapporo Plant, Hokkaido Coca-Cola Bottling
Beverage manufacturing (BC)Miyagi/Miyagino-ku, Sendai• DNP Tohoku

Plate-making/printing/bookbinding/manufacturing of packaging (BC)Fukushima/Izumizaki, Nishi Shirakawa• Izumizaki Plant, DNP Technopack

Plate-making/printing plate/printing (Lifestyleand Industrial Supplies)

Tochigi/Nishikatacho, Kamitsuga• DNP Graphica

Printing/bookbinding (Information Communication)

Ibaraki/Ushiku• DNP Data Techno

Manufacturing of various types of Smartcards (Information Communication)

Sayama• Sayama Plant, DNP Technopack

Plate-making/printing plate/printing (Lifestyleand Industrial Supplies)• DNP Cup Techno
Molding and processing of various types of
paper containers (Lifestyle and Industrial
Supplies)• Sayama Plant, DNP IMSManufacturing of thermal transfer carbon ribbons (Lifestyle and Industrial Supplies)

Fujimino• Kamifukuoka Plant, DNP Fine Electronics/

DNP Precision Devices
Manufacturing of electronic precision parts(Electronics)

Kuki• Kuki Plant, Ichigaya Publication Printing

Operations
Printing/bookbinding (Information Communication)• Kuki Plant, DNP Fine Electronics/DNP Precision Devices
Manufacturing of electronic precision parts(Electronics)

Chiba/Kashiwa• Kashiwa Plant, DNP Techno Polymer

Saitama/Otone, Kita Saitama• Otone Plant, DNP Precision Devices

Molding, processing and printing of plastic
containers (Lifestyle and Industrial Supplies)• DNP Techno Film
Manufacturing and processing of synthetic
resin films (Lifestyle and Industrial Supplies)

Shiraoka, Minami Saitama

Tokyo/Shinjuku-ku• Ichigaya Plant, Ichigaya Publication Printing

Manufacturing of electronic parts for displays(Electronics)• 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 Kenzai
Plate-making/printing plate/printing/processing (Lifestyle and Industrial Supplies)• Tsuruse Plant, DNP Opto-Materials *1
Manufacturing of electronic precision parts(Lifestyle and Industrial Supplies)

Operations
Plate-making/printing plate/printing/bookbinding (Information Communication)• DNP Facility Services
Meal services, etc.
• Enokicho Plant, Commercial Printing
Operations
Plate-making/printing/bookbinding (Information Communication)

Shinagawa-ku• DNP SP Tech

Manufacturing of various advertising and promotional materials (BC)Warabi• Warabi Plant, IPS Operations*2

Plate-making/printing/processing (Information
Communication)*1:Through 2006.3.31, Tsuruse Plant, DNP Advanced
Industrial Supplies*2:Through 2006.3.31, Warabi Plant, BF Operations

56*[BC (Brother Company)]: Group companies that manufacture products not related to the group’s Information
Communication, Lifestyle and Industrial supplies, andElectronics divisions or related to several divisions.

Environmental Performance*DAP Technology one of the equity-method affiliates, has been included in the scope of disclosure in recognition of its importance.Please refer topage 76 for information of our overseas business sites.

Kita-ku• Akabane Plant, Ichigaya Publication Printing

Operations
Printing (Information Communication)• Akabane Plant, Commercial Printing
Operations
Plate-making/printing/bookbinding (Information Communication)• DNP Seihon
Bookbinding (BC)• DNP Logistics
Packaging/shipping (BC)• DNP Hoso
Processing of filling and packaging (BC)• D.N.K
Printing and manufacturing of machine tools(BC)

Kanagawa/Tsuzuki-ku, Yokohama• DNP Technopack Yokohama

Plate-making/printing plate/printing (Lifestyleand Industrial Supplies)

Midori-ku, Yokohama• Tokyo Plant, The Inctec

Manufacturing of ink, varnish, pigments anddyes (BC)Odawara• Sagami Yoki

Manufacturing of laminated tubes (Lifestyleand Industrial Supplies)

Aikawa, Aiko

• Tokyo Plant, DNP Ellio

Printing and processing of metal sheets (Lifestyle and Industrial Supplies)

Osaka/Hirakata• Kansai Plant, The Inctec

Manufacturing of ink, varnish, pigments anddyes (BC)Neyagawa• Neyagawa Plant, DNP Media Create Kansai
Printing (Information Communication)• 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 (Lifestyle and Industrial Supplies)

Hyogo/Kita-ku, Kobe
• Kobe Plant, DNP Kenzai

Printing/processing (Lifestyle and Industrial
Supplies)

Ono• Ono Plant, DNP Media Create Kansai

Plate-making/printing/bookbinding (Information Communication)

Okayama/Okayama• Okayama Plant, DNP IMSManufacturing of dye-sublimation transfer
materials (Lifestyle and Industrial Supplies)• Okayama Plant, DNP Kenzai
Plate-making/printing plate/printing/processing (Lifestyle and Industrial Supplies)• Okayama Plant, DNP Opto-materials*3
Manufacture of electronic parts, etc. (Lifestyleand Industrial Supplies)• DT Fine Electronics

Hiroshima/Mihara• Mihara Plant, DNP Precision Devices

Gifu/Nakatsugawa• DNP Technopack Tokai

Tokushima/Tokushima• DNP Shikoku

Aichi/Moriyama-ku, Nagoya• DNP Tokai

Fukuoka/Yahatanishi-ku, Kitakyushu• Advanced Colortech

Saiwai-ku, Kawasaki
Manufacturing of semiconductor photomasks(Electronics)

Manufacturing/printing/processing of packaging (Lifestyle and Industrial Supplies)

Printing/bookbinding/manufacturing of packaging (BC)Kyoto/Minami-ku, Kyoto• Kyoto Plant, DNP Fine Electronics

Manufacturing of electronic precision parts(Electronics)

Ukyo-ku, Kyoto• Kyoto Plant, DNP Technopack Kansai

Plate-making/printing plate/printing (Lifestyleand Industrial Supplies)

Kyotanabe• Tanabe Plant, DNP Technopack Kansai

Plate-making/printing plate/printing (Lifestyleand Industrial Supplies)

Manufacturing of electronic precision parts(Electronics)

Other Domestic Consolidated Affiliates• DNP Art, DNP Total Process Ichigaya, DNP

Uniprocess, and DNP Techtas Ichigaya arecovered 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 and the Akabane Plant)• DNP Media Create and DNP Butsuryu Systems Shouin are covered as a division of the
Enokicho Plant, Commercial Printing Operations• DNP Total Process BF and DNP Techtas BF
are covered as a division of the Warabi Plant,
IPS Operations• DNP Micro Technica is covered as a divisionof 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

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

Plate-making/printing/manufacturing of packaging (BC)Manufacturing of color filters (Electoronics)

Tobata-ku, Kitakyushu• DAP Technology

Manufacturing of rear panels for plasma(Electoronics)

Minami-ku, Fukuoka• Fukuoka Plant, DNP Nishinippon

Plate-making/printing/bookbinding/manufacturing of packaging (BC)Chikugo• Chikugo Plant, DNP Nishinippon

Plate-making/printing/bookbinding/manufacturing of packaging (BC)Nara/Kawanishi, Shiki• DNP Data Techno Kansai

Plate-making/printing/processing (Information
Communication)*3:Okayama Plant, DNP Advanced Industrial Supplies
until March 31, 2006.

57

Current Status of Environmental Impact

Each segment has its own environmental impact due to the differences in the manufacturing processes
The Information Communications Segment uses a significant amount of raw materials (paper), while the Lifestyle and Industrial
Supplies Segment uses solvents and the Electronics Segment used and discharged water.

The DNP Group manufactures a variety
of different products closely related tothe everyday lives of consumers, which
consist of main materials as film, plastic,
metal (iron, aluminum, etc.) and/or ink.
The Information Communications Segment, which mainly manufactures magazines and other printed material throughoffset printing, uses a great amount of
paper. The Lifestyle and Industrial Sup-

plies Segment, is one of the biggest users of solvents in the DNP Group as it
manufactures packaging, construction
and other industrial materials and uses
solvents for its gravure printing, coating
and lamination. The Electronics Segment
uses and discharges great amount of water in proportion to the rest of the Groupfor its shadow masks and lead frames.

Main materials
2004

2005

Paper

2,101,300 tons

2,265,800 tons (7.8% increase)Film

126,400 tons

140,700 tons (11.3% increase)

Plastic

74,500 tons

74,800 tons (0.4% increase)Metal

78,100 tons

73,700 tons (5.6% decrease)Ink

62,600 tons

58,300 tons (6.9% decrease)

Others117,300 tons

120,700 tons (2.9% increase)

Percentage distribution by individual segment for
main materials (paper)
18%

Trends in Eco-Efficiency
12

110

11.3

10

4

62

80

Main secondary materials

60

Solvent

4.5

39

40

2
0

Eco-Points (1 billion EIP)

'02

2005

73%

'03

'04

'05

22,300 tons (21.2% decrease)

Acid and alkaline 46,300 tons

35,400 tons (23.5% decrease)

Percentage distribution by individual segment for
main secondary materials (solvent)
1%

1%

11%

0

11%

2004

Eco-Efficiency (Output* /EIP)The DNP Group evaluates eco-efficiency using JEPIX*. We are improving our ecoefficiency by reducing pollutants such as air pollution and photochemical oxidants
through measures to reduce atmospheric emissions of VOCs (volatile organic
chemicals). The focus in JEPIX is mainly on the on-site environmental impact, witha notable aspect being that reducing emission amounts of chemicals listed in the
PRTR Law has a significant effect on the improvement of eco-efficiency. We areworking to improve our eco-efficiency through maintaining awareness of these
items.

2005

28,300 tons

20

'01

8%

2004

5.6
48

73%

85
7.5

6

2004

100

9.5

8

9%

120

19%

2005

88%

88%

Utilities
2004

2005

Electricity 1,186.4 million kWh 1,255.2 million kWh (5.8% increase)
City gas149.0 million m3

152.0 million m3 (2.0% increase)

LPG

25.9 million kg

24.8 million kg (4.2% decrease)

Fuel oil

2,700 kl

2,400 kl (11.1% decrease)

Steam

182 TJ

181 TJ (0.5% decrease)

Water

15.307 million m3

15.653 million m3 (2.3% increase)

Percentage distribution by individual segment for utilities (water)
13% 12%

12% 10%
11%

12%
2004

2005

63%

67%

Information Communic

Lifestyle and Industrial
Electronics

BC (brother companies*[JEPIX]: Environmental Policy Priorities Index for Japan is a single index environmental evaluation system developed in Japan, whichcalculates 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 andTechnology’s COE Project (International Christian University), and our company began participating in the second term.

58*[Output]: Indicates operation activities,
this is the total added value
for companies covered in thisreport.

Environmental Performance

Emissions into the air
2004
GHG emissions

935,900 tons-CO2

2005
963,800 tons-CO2 (3.0% increase)NOx emissions

702 tons

724 tons (3.1% increase)

SOx emissions

22.6 tons

20.4 tons (9.7% decrease)

VOC emissions

12,600 tons

10,662 tons (15.4% decrease)

Percentage distribution by individual segment for GHG emission amounts.

Product Manufacturing Process

10%

10%
27%

30%

Information Communication

2004

32%

2005

33%

Books and periodicals, commercial printing, business forms

Lifestyle and Industrial Supplies

32%

Emissions into bodies of water

Packaging, decorative materials, industrial supplies

2004

Electronics

OUTPUT

Displays, electronic devices

INPUT

26%

BC (brother companies)
Ink, beverages, etc.

2005

Water discharged

12.506 million m3

COD emissions *52.9 tons

53.3 tons (0.8% increase)

Nitrogen emissions *20.3 tons

14.6 tons (28.1% decrease)

Phosphoric emissions *0.4 tons

0.4 tons (0.0% decrease)

13.216 million m3 (5.7% increase)

Percentage distribution by each segment for water discharge.
13% 9%

12% 9%

9%

2004

2005

69%

71%

8%

Current Status of Recycling in the DNP Group
2004

2005

Recycledsolvent

6,100 tons
(usage ratio: 1.22)

5,900 tons
(usage ratio: 1.26)

Recycled acidand alkaline

58,500 tons
(usage ratio: 2.26)

30,500 tons
(usage ratio: 1.86)

Undesired Materials Generated

Recycledwater

529.42 milion m3(usage ratio: 35.6)

Vapor generated fromwaste heat recovery

178,200 tons

532.074 million m3(usage ratio: 35.0)
198,400 tons

2004

2005

Total amount of
undesired materials

527,700 tons

502,700 tons (4.7% decrease)

Waste emissions

95,500 tons

91,100 tons (4.6% decrease)

Landfill waste amount

10,500 tons

8,000 tons (23.8% decrease)

Percentage distribution by each segment for undesired substances.
12%

13%
35%

34%

2004
19%

37%
31%

2005
19%

cationInformation Communicationl Supplies

Lifestyle and Industrial Supplies
Electronics
BC (brother companies)s)*[Usage Ratio]: This is a calculation of (input+ recovery and recycling)/input. It does not include vapor
or solvent in ink.

*[COD, nitrogen and phosphoric emission]: This covers water discharge channels which apply to the Water
Pollution Control Law.

59

2005 Targets and Results

Making steady headway towards achieving our environmental targets.

In light of our environmental policy, the DNP Group sets environmental targets appropriate to our business, and is steadily getting results. The table on the right indicates our targets and the results for fiscal 2005 and our targets for fiscal 2006.

Targets through 2005
Globalwarmingprevention

2005 results
Per unit in 1990: 20.6 t-CO2/1 billion yen

To reduce per unit CO2 emissions by 15% from the 1990 level by 2010.

Per unit in 2005: 18.8 t-CO2/1 billion yen
8.7% decrease from that in 1990

Reduction of environmental impact incurred
during transport

Per unit CO2 emissions in 2000:115.0 t-CO2/million ton-km

To reduce per unit CO2 emissions per unit shipped (CO2 emissions/shippedweight/distance shipped) by 5% from the 2000 level (2010).

Per unit CO2 emissions in 2005: 59.8 t-CO2/million ton-km
48% decrease from that in 2000
Per unit fuel use for transport in 2000: 8.33 kl/1 billion yen

To reduce per unit fuel use for transport (amount of fuel used/sales) by 20% fromthe 2000 level (2010).

Per unit fuel use for transport in 2005: 7.90 kl/1 billion yen
5.1% decrease from that in 2000
Emissions in 2002: 21,312 tons

VOC

To reduce emissions of VOCs by 50% compared to 2002 by fiscal 2005.

Emissions in 2005: 10,662 tons
50% reduction from that in 2002.
Per unit in 2000: 0.312 tons/million yen

Reduction of industrial waste

To reduce per unit waste emissions (waste emissions/production) by 40% fromthe 2000 level (2005).

Per unit in 2005: 0.185 tons/million yen
40.7% decrease from that in 2000
Total undesired materials in 2000: 646,000 tons

To reduce undesired material generation by 25% from the 2000 level (2005).

Total undesired materials in 2005: 503,000 tons
22.1% decrease from that in 2000

To achieve zero emissions at 30 sites.

Achieved at 31 sites
17.7% generation rate of undesired material in 2000

To reduce the undesired material generation ratio (undesired material generation/total material input) by 20% from the 2000 level (2005).

12.9% generation rate of undesired material in 2004
27.1% decrease from that in 2000

To achieve a 80% recycling ratio (recycled amount/total amount of undesired material generation) in the disposing main raw materials (2005).
Development
and sales ofenvironmentally conscious
products

Greenpurchasing
Environmental
conservation
Office environment

Environmental management system

60

To increase the level each year by 10% (over the previous year).

79.4% recycling rate in 2005
Sales of 256.6 billion yen in 2005
56% increase over that in 2004

To increase the rate of the products purchased according to the green purchasing standards of DNP, to 40% by 2010.

23.6% green purchasing rate for materials in 2004

To increase the purchasing rate of environmentally certified products, such as
those labeled with the Eco-Mark, of the total supplies (office supplies and equipment) to 50% by 2010.

30.6% green purchasing rate for materials in 2004

To keep the maximum concentration of air emissions subject to emissions regulations at 70% of the required standard or less (2005).
To keep the maximum concentration of wastewater discharges subject to wastewater regulations at 70% of the required standard or less (2005).
To keep the maximum level of noise at our site perimeters at 95% of the required
standard or less.
To keep the maximum level of vibration at our site perimeters at 95% of the required standard or less (2005).
To keep the maximum concentration of odors at our site perimeters at 70% of therequired standard or less (2005).

96% achievement rate of targets for 2005 (voluntary target)

27.5% green purchasing rate for materials in 2005

41.6% green purchasing rate for materials in 2005

93% achievement rate of targets for 2005 (voluntary target)
56% achievement rate of targets for 2005 (voluntary target)
100% achievement rate of targets for 2005 (voluntary target)
96% achievement rate of targets for 2005 (voluntary target)

To increase the ratio of the fractional recovery of waste paper to 65% of that for
general waste.

74.4% rate wastepaper separation in 2005

To promote ISO14001 certification at 30 sites (2005).

Acquired by 5 sites in 2005. Total 31 sites.

To promote Eco-Audits at all sites.

Eco-Audits conducted at all sites in 2005.

Environmental Performance:Target Broadly Achieved

Evaluation Described in this report
p64

p65

p65

p63 • 66

:Achieved target or in steady progress toward target:Target not achieved

Targets from fiscal 2006
To reduce per unit CO2 emissions by 15% from the 1990 level by 2010.

We aim to achieve the following targets by 2010:• To reduce per unit CO2 emissions per unit shipped (CO2 emissions/shipped weight/distanceshipped) by 40% from the 2000 level.
• To reduce per unit fuel use for transport (amount of fuel used/sales) by 20% from the 2000
level.

To reduce emissions of VOCs by 70% compared to 2002 by fiscal 2008.

p68 • 69

p68 • 69
p68 • 69

We aim to achieve the following targets by 2010:• To reduce per unit waste emissions (waste emissions/production)by 50% from the 2000 level.
• To reduce undesired material generation by ratio (undesired material generation/total material
input) at all sites by more than 3%, 35% from the 2000 level.
• To achieve a 98% recycling ratio (recycled amount/total amount of undesired material generation) in the disposing main raw materials.
2005 results: paper 99.8%, plastic 93.2%, metal 99.1%, glass 59.8%

p68 • 69

• To achieve zero emissions for the entire DNP Group.

p68 • 69
p73
p74
p74

To increase the level each year by 10% (over the previous year), and achieve 300 billion yen
by 2010.

To increase the rate of the products purchased according to the green purchasing standardsof DNP, to 40% by 2010.
To increase the purchasing rate of environmentally certified products, such as those labeledwith the Eco-Mark, of the total supplies (office supplies and equipment) to 50% by 2010.

p70• To keep the maximum concentration of air emissions subject to emissions regulations at 70%of the required standard or less.
• To keep the maximum concentration of wastewater discharges subject to wastewater regulations at 70% of the required standard or less.
• To keep the maximum level of noise and vibration at our site perimeters at 95% of the required
standard or less.
• To keep the maximum concentration of odors at our site perimeters at 70% of the required
standard or less.

p67

To increase the ratio of the fractional recovery of waste paper to 70% of that for generalwaste.

p70
p70
p70
p70

p75
p54

• To promote ISO14001 certification.
• To promote Eco-Audits at all sites.

61

Environmental Pollutants

We are working to reduce emissions of environmental pollutants.

We are making efforts to monitor and reduce emissions of environmental pollutants so as to conserve both the global and local
environments. We are making steady progress toward achieving the environmental targets we have established.

Reducing Air Pollutants andSwitching to Low-Impact
Substances[Hazardous Air Pollutants]

22 hazardous air pollutants are designated among the substances listed in
the Air Pollution Control Law as requiring priority measures toward reduction.
Of these, dichloromethane was usedin the past as a cleaner in the printing
process, but by switching to a waterbased cleaner we have reduced ouremissions of this substance from 52.9
tons in 2001 to 0.3 tons in 2005.
Dioxin is emitted through waste incineration. We eliminated small-scale
incinerators, in which incineration isdifficult to control, by 2002, broadly
reducing emissions stemming fromwaste incineration. Currently, all of
our active incinerators are large-scale
thermal recovery incinerators that fulfill
the 2002 regulations. We use six suchincinerators nationwide, and continued
in 2005 to maintain emissions levels
far lower than those in 2000.

[SOx (sulfur oxides)]SOx is emitted when fuel oil is burned
to fire boilers. We have been working
to reduce SOx emissions by switchingfrom fuel oil to municipal gas, improving combustion facilities, and energy
conservation. By switching our boilers
from fuel oil to municipal gas in fiscal
2005, we were able to reduce SOx
emissions.

[NOx (nitrogen oxides)]NOx is also generated when fuel isburned in production processes. As
with SOx, we have thus far made efforts to reduce NOx by such means
as improving combustion facilities andconserving energy. NOx emissions increased in 2005 due to an increase inenergy consumption.

Dichloromethane emissions (tons)
60

52.9

45
30

24.9

15
3.6
0

'01

'02

'03

0.6

0.3

'04

'05

Dioxin emissions(mg-TEQ)
250
214.9
200
150
100
44.5

50
0

'00

'01

22.2

15.4

'02

'03

33.9
3.1
'04

'05

CFC substitute emissions (tons)
40

37.5

37.5
29.8

30
23.6

[Ozone-depleting substances(CFC substitute)]

In the case of ozone-depleting substances, we use air conditioners that
employ coolant containing CFC-11 andCFC-12, and currently use ten of theseunits. In addition, we had been using
HCFC-141b, which is a CFC substitute,as a cleaning agent in our manufacturing process, and reduced emissions in2005 by switching to a cleaning agent
substitute.

18.9

20
10
0

'01

'02

Manager, Facility Control GroupDNP Technopack TokaiOur company manufactures packaging for food and medical products. We use
VOCs such as toluene in ink and acetic ether, and reducing the emissions ofthese VOCs is a major issue for us. In May 2005 we installed a gas emissions processor. We got it into optimal working order by doing trials and getting it running, making
adjustments for seasonal changes, etc. As a result, we have been able to reduce VOC
emissions by 60% in comparison with 2004. We are going to keep working for evengreater emissions reduction by shooting for more efficient operations.

62

'05

25.2

22.6

20.4

'03

'04

'05

702.1

723.6

'04

'05

100
75

74.5
56.5

50

0

Zenichi Higuchi'04

SOx emissions (tons)

25

We are working to reduce VOC emissions.

'03

'01

'02

NOx emissions (tons)
800
600

620.4

626.7

'01

'02

660.3

400
200
0

'03

Environmental Performance[VOCs (volatile organic compounds)]

In our printing processes we use large
amounts of ink solvents, adhesive
agents and cleaning agents which contain VOC. In order to reduce the VOC
emission, we have employed suchmeans as switching over to alternatives
that have less of an environmental

impact, and installing processing andrecovery equipment. In 2005, we reduced the VOC emissions by suchmeans as switching over to othermaterials and introducing processing
equipment.

VOC emissions (tons)
25,00021,31220,0003,521

19,0682,204

15,00012,642
1,242 10,662

10,000949
9,713

17,791 16,864 11,400

5,000
0

'02

'03

'04

'05

52.9

53.3

'04

'05

PRTP-listed VOC
PRTR-unlisted VOC

Reducing Water Pollutants[COD (chemical oxygen demand)]We use wastewater treatment facilities
to decontaminate and reduce the pollution of wastewater discharged fromour production lines and dining areas,
which contains organic substances.
Despite working to reduce impact in theElectronics Segment in 2005 throughthe adoption of low-COD chemicals, anincrease in production volume resulted
in an increase in post-processing
wastewater and COD emissions.

[Nitrogen]We have been using wastewater treatment facilities and water-purifier tanks
to decontaminate wastewater fromour plants and offices as a meansof preventing the eutrophication* of
public waters. In 2005, the Electronics

Segment was able to reduce nitrogen
emissions by reducing the amount of
nitrogen- and phosphorous-containing
bacterial eutrophics used in the biological treatment of wastewater.

[Phosphorous]

COD emissions (tons)
49.7

50
41.1

40
32.3
30

In 2004 the Electronics Segment,
which releases large amounts ofdrainage water, also reduced its phosphorous amounts by such means aschanging cleaning agents that containphosphorous.
As it did for nitrogen emissions, in2005 the Electronics Segment, which
discharges large amounts of wastewater, was able to maintain phosphorous
emissions at roughly the same levels
as in 2004 by switching to a non-phosphorous cleaner and by reducing theamount of (nitrogen- and phosphorouscontaining) bacterial eutrophics used in
the biological treatment of wastewater.

20
10
0

'01

'02

'03

Nitrogen emissions (tons)
28.3

30

20

19.2

21.3

20.3
14.6

10

0

'01

'02

'03

'04

'05

Phosphorous emissions (tons)
2.0
1.6
1.5
1.0

1.1

0.9

0.5
0

'01

'02

'03

0.4

0.4

'04

'05

* Eutrophication Eutrophication is a problem affecting water quality inclosed coastal water areas and lakes. This is caused by the nitrogenand phosphorous content in residential and industrial wastewater, andis characterized by an unusually high growth rate for plankton.

63

Measures Against Global Warming

We are taking measures to reduce greenhouse gas emissions such as installing energysaving equipment, switching to better fuel types, and improving production efficiency.
Although we continued CO2 emissions reduction measures in 2005, such as installing energy-saving equipment and implementing
thorough air conditioning temperature controls in summer and winter, increases in production, particularly in the Electronics
Segment, resulted in increases in greenhouse gas emissions. Per unit CO2 emissions are at a standstill.

TargetResultGreenhouse Gas Emissions(Unit: 1,000 tons-CO2)964

To reduce per unit CO2 emissions by
15% from the 1990 level by 2010.

Per unit CO2 emissions have been reduced by 8.7%, to 18.8 tons/1 billion yen.

Greenhouse gas emissions calculation method

Method of calculating per unit energy
consumption and per unit CO2 emissions

849

842

'01

'02

899

936

'03

'04

750
550

Greenhouse gas emissions are calculated using emission coefficients from the"guideline for the calculation of greenhouseemissions from businesses" (Ministry of theEnvironment, July 2002). Calculations in
the 2007 edition of this report will be madeas required by the amendment of the Law
Concerning the Promotion of Measures to
Cope with Global Warning.

Per unit CO2 emissions = CO2 (1,000 tons)
emitted through the consumption of energy(fuel, electricity)/production (1 billion yen)
Production output expresses the amountof business activity, using the total added
value amount for consolidated companies
subject to disclosure in this report.

* All greenhouse gas emissions amounts are converted
to CO2 and given in tons.

500

Industrial wastes incinerated
Energy consumed

1,000

250

0

'90

'05

Per Unit CO2 Emissions(Unit: tons-CO2/1 billion yen)

20.0

20.6
18.1

17.7

'01

'02

18.7

19.0

18.8

15.0

10.0

The DNP Group is participating in "Team -6%
committee" efforts against global warming.
Kazuo Hatazawa
Manager
DNP Facility Services

D

NP Facility Services is in charge of energy management for DNP Group plants and offices. The
DNP Group began participating in "Team -6% committee" in July 2005, and has been promoting energy
conservation through measures such as turning thethermostat up 2°C in summer and down 2°C in winter"Black Illumination"and participating in the "light-down" campaign.
(signage lighting)
We are also conducting efforts at the C&I Building in
Ichigaya, Tokyo, such as thorough air conditioning temperature controls in summer and winter, controlling the number of elevators inoperation, and optimizing the use of lighting in offices, washrooms, etc. We will continue to proceed with energy use optimization in 2006 in our efforts to reduce CO2
emissions.

5.0

0

'90

'05

The DNP Group has been participatingin the Japanese government's "Team-6% committee" program for citizen action in preventing global warming sincelast year. This program encourages
energy conservation measures such as
adjusting the temperature of officesandturning off PCs and lights when not inuse. We have called upon all Group
employees to register individually in the"Team -6% committee" so as to broaden this effort, and they have responded
positively to furthering the goals of thisprogram.

Masato Igarashi
Okayama Plant, Opto-Materials Operations

W

64

'04

<Individual registration in the "Team -6%
committee">Working to use energy efficiently and reduce CO2
emissions.

e manufacture optical film at our plant by applying
various materials to plastic film that alter its optical characteristics. The solvent (VOC*) that wedischarge during the application process is incinerated
in processing equipment. The heat that is emitted durwaste-heat boiler
ing the incineration is collected and used to generatesteam through a waste-heat boiler we installed in June
2005, giving us an effective way to use this heat. We generated roughly 4,000 tons ofsteam in 2005, and, in comparison with the steam we get from the regular boilers, we
got about 11,500 gigajoules, while reducing CO2 emissions by roughly 690 tons. In thisway, we are working both for the efficient use of energy and CO2 emission reduction.

'03* [VOC]: Volatile Organic Compounds

Environmental Impact from Transport

Environmental Performance

We are reducing CO2 emissions from our trucks by conducting more efficient transport
operations.
DNP Logistics handles transport for the DNP Group. It is based in the Tokyo area but covers a wide area from Northeast Honshu to
Kyushu, and is making solid progress in reducing the environmental impact of our transport operations.

CO 2 emissions stemming from transport operations in 2005 amounted to4,540 tons, a 25.8% decrease in comparison to 2000. Progress was made in
reducing per unit CO2 emissions due toan increase in transport volume, buttransport fuel consumption per unit ofsales is on an upward trend.

Transitions of CO2 emissions and fuel use
for transportation

Results•Reduced 48.0% of CO2 emissions•Reduced 5.1% of fuel use for transport

120
115.0
Target100

CO2 emissions from transport (t-CO2)

To reduce per unit CO2 emissions perunit shipped (CO2 emissions/shippedweight/distance shipped) by 5% fromthe 2000 level.
•To reduce per unit fuel use for transport (amount of fuel used/sales) by
20% from the 2000 level.

80
6,120

6,000

10

95.5
8.33

7,000

Targets

12

84.6 79.0
7.76
7.79 7.76 7.87
76.0

Target

4,700

5,000

59.8

60

5,310

4,640 4,540

7.90

8

6

40

4

20

2

4,630
4,000

0

'00

'01

'02

'03

'04

'05

0

'00

'01

'02

'03

'04

'05

0

Per unit CO2 emissions (ton/1 million ton, km)
Fuel use for transportation (Kl/1 billion yen)

Efforts to reduce CO2
DNP Logistics has made progress toward greater efficiency by optimizing
its fleet of transport vehicles and distribution routes, and by installing digitaltachometers. Other efforts toward reducing CO2 emissions include
implementing an idling stop policy,
bringing CNG and hybrid vehicles into
the fleet, and making the transition tolarger vehicles. DNP Logistics has
been participating in the Eco-Report
System, which is the DNP Group environmental management system, andhas added to the environmental improvement activities it is alreadyengaging in by acquiring ISO14001
certification for its Itabashi Offices. The
company plans to continue pursuing
ISO14001 certification for its offices,with the Akabane Offices scheduled for
certification in autumn of this year.

We are making progress in transport efficiency andensuring safety.
Sadao Obara
General Manager, DNP LogisticsO

ur principle is, "We do our work on roads createdfor public use, so we must by all means avoid
causing trouble to others using the roads." We thereMorning and evening roll callfore put serious effort into safety training for our site
supervisors and our drivers. Site supervisors have face-to-face "TAIWA" with drivers
at morning and evening roll call, and each driver is called upon to declare a "personalsafety pledge." During the National Traffic Safety weeks conducted in the spring andfall, our site supervisors work with traffic safety organizations to conduct pedestrian
guidance at intersections. This is part of our safety training, which teaches the importance of seeing from the pedestrian’s point of view.

* Transportation ton/km (t·km) ∑ (amount of cargo x
distance)

65

Chemical Substances

We are making extensive reductions in the emissions of chemical substances.

We are working to reduce emissions of all Volatile Organic Chemicals (VOCs) listed under the PRTR Law as "Class 1 foremissions or transport", with the goal of reducing the environmental impact of chemicals used in our manufacturing processes.

Target••To reduce emissions of VOCs by 50%
compared to 2002 by fiscal 2005.

Result•VOC emissions totaled 10,662 tons
in 2005, a reduction of 1,980 tons incomparison to the previous year, anda 50% reduction in comparison to2002, thereby achieving our target.
•We will continue to work to reduce
the VOC emissions, stepping up our
reduction goal to a 70% reduction incomparison to 2002 by 2008.

Solvent processing equipment: Okayama Plant,
DNP Opto-Materials

Solvent processing equipment: DNP Tohoku

Chemical Substances subject to the RPTR Law (tons; dioxins: mg-TEQ)
Substance

HandledEmissionsto AirEmissions to
Public Waters

Transferred to
Sewer System

Transferred
as Waste

Recycled

Consumed

Removed/
Consumed

Zinc compound (water-soluble)

6.8

0.0

0.0

6.8

0.0

0.0

0.0

0.0

Bis(2-ehtylhexyl) adipate
2-Aminoethanol

1.1
38.9

0.0
0.0

0.0
0.0

0.0
4.1

0.2
34.7

0.0
0.0

0.0
0.0

0.0
0.0

Isophorone-di-isocyanate

21.8

0.0

0.0

0.0

0.0

0.0

21.8

0.0

Ethyl-benzene

208.4

2.0

0.0

0.0

3.1

47.1

74.9

81.3

Ethylene glycol

10.8

0.0

0.0

0.0

7.9

0.0

2.9

0.0

Ethylene glycol monoethyl ether

21.3

0.6

0.0

0.0

3.1

0.0

5.3

12.3
25.5

Ethylene glycol monomethyl ether

60.5

2.1

0.0

0.0

7.5

0.0

25.4

Epsilon-caprolactam

19.7

0.0

0.0

0.0

1.5

0.0

18.2

0.0

Xylene

283.3

6.8

0.0

0.0

5.7

58.8

88.5

123.5

Silver and its water soluble compounds

16.1

0.0

0.0

0.2

3.7

6.2

1.6

4.5

Chromium & chromium (III) compounds

160.7

0.0

0.0

0.0

47.8

81.1

28.9

2.8

Hexavalent chromium compounds

38.4

0.0

0.0

0.0

0.8

0.1

21.6

15.9

Cobalt and its compounds

5.7

0.0

0.0

0.0

1.7

0.8

3.1

0.0

Inorganic cyanide compound

4.2

0.0

0.0

0.0

3.4

0.0

0.0

0.8

1,1 Dichloro-1-fluroethane

19.0

18.9

0.0

0.0

0.0

0.0

0.0

0.0

Dichloromethane

5.1

0.3

0.0

0.0

0.0

0.0

0.0

4.2

Dioxins
Water soluble copper salts
1,3,5-trimethylbenzene
TolueneLead and its compounds
NickelNickel compounds

0.0

3.1

0.0

0.0

164.0

0.0

0.0

0.0

578.4

0.0

0.0

0.0

162.3

312.0

101.2

3.0

7.2

0.1

0.0

0.0

0.0

4.4

0.0

2.8

16,309.3

914.4

0.0

0.0

1,751.5

2,929.9

2,556.2

8,157.2

171.3

0.0

0.0

0.0

117.7

12.0

41.7

0.0

2,545.0

0.0

0.0

0.0

0.0

1,242.6

1,280.7

21.8

781.0

0.0

0.0

0.0

89.1

689.4

2.1

0.4

4.4

0.0

0.0

4.4

0.0

0.0

0.0

0.0

Di-n-butyl phthalate

1.1

0.0

0.0

0.0

0.0

0.0

1.0

0.1

Bis (2-ethylhexyl) phthalate

19.9

0.1

0.0

0.0

1.6

0.0

15.9

2.2

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

9.8

0.0

0.0

0.0

0.6

0.0

9.2

0.0

Boron and its compounds

17.6

0.0

0.0

0.4

12.5

0.0

4.6

0.0

Octylphenol ether

5.8

0.0

0.0

0.1

0.0

0.0

5.7

0.0

Hydroquinone

Formaldehyde

3.2

3.2

0.0

0.0

0.0

0.0

0.0

0.0

Manganese compounds

11.8

0.0

0.0

0.0

4.5

2.0

5.4

0.0

Molybdenum compounds

1.1

0.0

0.0

0.0

0.0

0.0

1.0

0.0

21,388.7

948.5

0.0

16.0

2,260.9

5,386.4

4,316.9

8,458.3* The data above are compiled with PRTR results. In accordance with the data compilation limits stipulated by the PRTR Law, substances are subject to compilation when the amountof the said substance handled in one year is one ton or greater.
* The amount handled has decreased in comparison with last year's report, with a reduction in emissions of 24.0%.

* [The PRTR Law]: The PRTR Law is a law enacted topromote the monitoring and controlof emissions of designated chemicals
into the environment.

66

Resource Recycling

Environmental Performance

We are reducing waste from our production processes and recycling paper and waterused at our offices and plants.
We are putting efforts into separating and collecting the used paper generated by our offices, as well as the efficient use andrecycling of water. In addition, we seek to achieve "zero emissions" at our plants.

Wastepaper collection/Wastepaper collection rate(tons·%)

Recycling used office
paper

2,000
60.7

62.3

1,015

1,074

1,500

Target1,000

To increase the rate of the fractional
recovery of waste paper to 65% of thatfor general waste.

Result
The amount of used paper collected in2005 was 1,298 tons, with a collection
rate of 74.4%. The collection rate was
improved in the Ichigaya area (Ichigaya
Publication Printing Operations), which
is a large-scale operation.

73.8

74.4

1,242

1,298

68.4

1,231

80
60
40

500

20

0

'01

'02

'03

'04

'05

Year

2001

2002

2003

2004

2005

Waste paper collection

1,015

1,074

1,231

1,242

1,298

Cardboard

125

154

165

195

234

Magazines

740

770

930

906

953

Newspapers

78

65

65

52

31

High quality paper

72

86

71

88

80

General waste

657

651

569

441

446

Waste paper collection +general waste amount

1,672

1,725

1,800

1,683

1,743

Wastepaper collection rate

60.7％

62.3％

68.4％

73.8％

74.4%

25

27

29

30

29

Number of sites0* Compiled from data obtained at sites where relevant information was available.

Transition of the amount of recycled water (1,000 m3)

Efficient use and recycling of
water

600,000
500,000

We used 5.32 billion m 3 of recycledwater in 2005 in cleaning our products,
heating and cooling our production
equipment, and air conditioning ourbuildings. Our water usage ratio was
35-fold.
We are also making effective use of
rainwater at our C&I Building and the
DNP Logistics No. 2 Building. We used
5,140m 3 of rainwater in 2005, whichamounts to 29% of the water used fortoilet flushing and watering ourgrounds.

473,489479,604'01'02

523,556

529,420532,074

'03

'04

'05

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

5,140

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

'04

'05

Water Input-Output (The total amount for the DNP Group in FY 2005)
Evaporation
2,273,000m3
Wastewater
13,216,000m3

INPUT
Water consumption
15,653,000m3* Wastepaper collection rate
Waste paper collection/wastepaper collection +general waste amount(excluding cans, bottles, and garbage)

Flow of processes that use thewater recycling system
532,074,000m3
Flow of processes that do not
use the water recycling system OUTPUT
13,380,000m3

Product
164,000m3* As water is mainly used for heating or cooling the manufacturing equipment, air conditioning in buildings, and in product cleaning, the majority of plants are starting to use recycledwater through a closed system. The amount of recycled water is the total amount that flows
through heat exchangers and cleaning equipments in these closed systems in one year.

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

* Water usage ratio = (amountconsumed + wastewateramount + amount of recycledwater)/amount of water used67

Resource Recycling

Reduction and Effective
Use of Undesired Materials
Generated in Production

Breakdown of undesired materials
2% 2%

Total amount of
undesired materials

100 %502,700tons

Targets
To achieve the following targets by
2005:• To reduce per unit waste emissions(waste emissions/production) by 40%
from the 2000 level.
• To reduce undesired material generation by 25% from the 2000 level.
• To reduce the undesired material
generation ratio (undesired material
generation/total material input) by
20% from the 2000 level.
• To achieve an 80% recycling ratio(recycled amount/total amount of
undesired material generation) in thedisposing main raw materials.
• To achieve zero emissions at 30
sites.

Results• Per unit waste in 2005 was 0.185
tons/1 million yen, a 40.7% deceasein comparison with 0.312 tons/million yen in 2000, achieving targets.
Production output expresses theamount of business activity, using
the total added value amount for
consolidated companies subject todisclosure in this report.
• The total amount of undesired material generated in 2005 was 503,000
tons, a 22.1% decrease compared to
the 646,000 tons generated in 2000.
Nevertheless, this fell short of ourtarget of 25%.
• Undesired material generation rate in2005 was 12.9%, marking a 27.1%
achievement over the 2000 rate of
17.7%.
• Recycling rate was 79.4% roughly at
the target level, just short of the target of 80%.
• Zero emissions (a landfill waste rateof 0.5% or less) in the processing ofundesired material from plants wasachieved at 31 sites, achieving the2010 goal.

68

4%

21%
52%
9%
10%

191,500tons

Valuable waste

61.9 %

20%

54%

Metal

Wastewater

Other

2%
3%3%

11%

38.1 %

SludgeWaste plastic
Waste oil

1% 1%

Waste

Waste paper

4%

10%

311,200tons

7%

78%

5%

6%

Waste subject to on-site
interim processing

22.2 %

9%85%

111,700tons(Processed by on-site incineratorsand sludge dehydrators)

Waste not subject to 4% 12%
16%
on-site interim
10%
processing

Waste after on-site
interim processing

15.9 %

11,300tons

16%

79,800tons

Materials
recycled asresources

12.7 %

63,900tons

31%

12%

3% 12%
7%
13%
13%

19%
34%

2.2 % (Ash, dehydrated sludge, etc.)

Materials recycled
as thermal

1.9 %

Waste to outsource
interim processing

2.4 %9,400tons

1%
3% 10%
15%
14%
13%

12,100tons

44%(Amount recycled for afee or free of charge)

1%

Final Disposal

0.5 %

11%
17%

11%

2,300tons(Final disposal after outsourcing
for interim processing)

21%

39%

Final Disposal

1.1 %5,700tons(Directly from sites to
final disposal)<Paper recycling rate: 99.8%>
The DNP Group manufactures an enormous volume and variety of products that are mainlycomposed of paper, such as books, magazines, catalogues, business forms, and containers. We
are working through our Manufacturing 21 efforts to minimize waste and loss in our production
processes, and also to reduce the amount of paper used and paper waste generated. It is nevertheless impossible generating some undesired material in the process of making paper products.
We therefore use great care in separating waste paper so as to provide the best material possible
for paper recycling. Paper that is not suitable for use in recycling is processed as solid waste incinerator fuel. Through these efforts we have succeeded in achieving a 99.8% recycling rate.

Environmental Performance[Examples of Our Efforts]
We seek to create an effective systemof production that minimizes resource
inputting and undesired material generation. We have implemented raw
measures and efficiency improvement
through the Manufacturing 21 activities underway at our production sites.
Some of these efforts include improving the non-defective product ratio
and shortening lead times, reducing
the overall generation of undesired
material, improving per unit waste,
and improving the undesired material
generation ratio. In addition, we have
implemented raw measures such as
the installation of solvent collection
equipment.
We have also been able to achieve
zero emissions of undesired material at
31 sites and continue to improve recycling rates since 2000. We have done
so by implementing thorough separation, processing improvements, andcontractor selection, adding value (paper and plastic waste, sludge), creating
raw material for paper manufacturing(paper waste), solid waste incinerator
fuel (paper and plastic waste), distillation recycling (waste solvent), and raw
material for cement (ash).

Per unit waste emissions/Waste generation rate/recycling rate
0.5

100
77.6

0.4

78.8

79.5

79.4

71.9

80

74.2
0.3

0.312

60
0.236

0.211

0.202

0.202

0.2

0.185

40

Unit (tons/million)
0.1

Used products
generation ratio (%)
Recycle ratio (%)

0

17.7

15.4

'00

'01

15.1

14.8

13.8

12.9

'02

'03

'04

'05

20

0

Waste missions (1,000 tons)
800

63

600

528

72

65

63

148

142

166

180

158

94

97

99

100

94

Lifestyle and Industrial
268
Supplies
Information Communication

202

195

189

185

186

'00

'01

'02

'03

'04

'05

400

65

93

BC
200

503

75

222

Electronics

0

Total waste generation (1,000 tons)
180[Revising Our Environmental Targets]
The cutoff point for the waste reduction
targets among the DNP Group’s overall
environmental targets was fiscal 2005,
so the DNP Group Environmental
Committee revised these targets whenit met in March. The new targets, which
are to be achieved by fiscal 2010, use
per unit waste and undesired materials
generation rate indicators in order topromote greater eco-efficiency. They
seek also to promote more efficient useof resources through the improvementof recycling rates for the most important raw materials, as well as aiming
for zero emissions for the entire Groupso as to achieve further reduction of
the landfill waste.

17
120
20
67

BC
60

0

30

17

16

32

25

21

27

34

37

39

39

Electronics
Lifestyle and Industrial
Supplies
Information Communication

96
18

91
16
25
38

19

19

17

16

14

12

'00

'01

'02

'03

'04

'05

We have made a significant contribution toachieving the targets.
Yasuaki Ishii
General Manager, Environmental Management Office
DNP Precision Devices

T

he Mihara Plant was established in 1993 for the manufacture of shadow masks forcolor TVs, and the range of products we make has grown. We were the second
member of the DNP Group to acquire ISO14001 certification, and have been making
continuous efforts to reduce our environmental impact.
Our plant has been trying to make effective use of the waste we produce, such as
by selling our waste etching acid, of which we generate a large amount, as an ingredient for acid manufacture. Also, we go beyond simply attempting to reduce sludge
generated in large amounts by our wastewater treatment facility at the source; and also
reduce the sludge emissions by selling the metals-containing sludge as valuable waste.
Through these measures we have been able to make a significant contribution to theachievement of the DNP Group’s environmental targets by reducing undesired material
per month by 1,100 tons, waste by 950 tons per month, and final disposul by 300 tons
per month.

69

Environmental Risk Management

Complying with Environmental Laws as well as Voluntary Standards and Guidelines

The DNP Group monitors trends in environmental regulations so as to ensure full compliance. We also have established andstrictly adhere to our own voluntary standards (air, water, noise, vibration, odor) and voluntary guidelines (chemical substancemanagement, soil contamination measures).

Our measures concerning air,water, noise, vibration, andodor
Targets
To achieve the following targets by 2005:•To keep the maximum concentration of
air emissions subject to emissions regulations at 70% of the required standard
or less (2005).
•To keep the maximum concentration ofwastewater discharges subject to wastewater regulations at 70% of the required
standard or less (2005).
•To keep the maximum level of noise at
our site perimeters at 95% of the required standard or less.
•To keep the maximum level of vibration
at our site perimeters at 95% of the required standard or less (2005).
•To keep the maximum concentration ofodors at our site perimeters at 70% of
the required standard or less (2005).

<Main Improvements in 2005>

Results
We have established our own voluntarystandards for air, water, noise, vibration,and odor that exceed the legal requirements in our efforts to preserve theenvironmental quality of the areas aroundour plants and to reduce the environmental impact of their operations.
As the chart below shows, we continued to make improvements in achieving
our 2005 goals for vibration and odor
since 2004. Nevertheless, there has
been an increase in voluntary standards
for water quality items that we have notbeen able to clear, such pH (hydrogenion concentration) and BOD (biochemical
oxygen demand), causing a worsening ofour voluntary standard achievement rate.
While we have made improvements regarding noise since the previous year, thedegree of achievement remains low compared to other environmental categories.
We will continue to take measures suchas upgrading our environmental facilities
and installing equipment for the reductionof environmental impact.

2005 Voluntary Standard Achievement Rate
Item

Voluntary Standards (Targets)

2004

2005

Air*

Under 70% of legal standards

96%

96%

Water*

Under 70% of legal standards

96%

93%

Nose*

Under 95% of legal standards

56%

56%

Vibration*

Under 95% of legal standards

100%

100%

Odor*

Under 70% of legal standards

92%

96%

* State of compliance with emissions duct regulations also included in odor measurement data.
* For items for which measurements were not taken in the previous year, and in which targets were not achieved
according to the most recent deemed as not achieving targets in the fiscal year concerned.

[Ensuring Legal Compliance]

We have established our own voluntarystandards that exceed legal requirements
so as to minimize environmental damage
and the economic costs of repairing thatdamage, as well as to limit as much as
possible the risk of losing the confidenceof society, while ensuring compliance withlaws and regulations. We also constantly
monitor trends in environmental regulations and attempt to have measures inplace that preempt the passage of newlaws.

Grease trap processing equipment/Enokicho Plant,
Commercial Printing Operations* The voluntary standard achievement ratio is
determined by multiplying the indexes measuring air,water, odors, noise, and vibrations in plants subject
to regulations (total measured indexes) by the target
attainment indexes for each item.

70

Noise barrier/Nara Plant, DNP Data Techno Kansai

Main air pollution measures
Soot measurement
Change of fuel (from fuel oil to natural gas)
Burner cleaning
NOx emissions control measures
Auditing of VOC-emitting facilities
VOC measurement
Emergency response drills
Main water quality measures
Water quality measurements
Separation and recovery of oily water
Replacement of filters and membranes atwater treatment facilities
Installation of grease trap cleaners at
dining halls
Installation of leak collection tanks
Installation of leak reduction equipment
Cleaning of pipes
Grease trap cleaning
Sludge recycling method tests
Installation of leak barriers
pH measures
Reduction of nitrogen facility load
Emergency response drills
Main noise measures
Noise measurement
Installation of noise barriers
Sash board blocking
Insulation of exhaust fans
Measures against noise from gas pipes
Checking for open windows
Sheet shutter upgrades
Moving of printing equipment
Measurement of background noise
Main vibration measure
Vibration measurement
Inspection and maintenance of relevant
equipment
Main odor measures
Odor measurement
Upgrading of deodorizing equipment
Changing and recycling of filters
Cleaning of filters
Changing activated charcoal
Repairing cracks in deodorizing equipment
Deodorizing equipment temperature
controls
Emergency response drills

Leakage retaining wall/Utsunomiya Plant,
DNP Graphica* Air: Ratio of the voluntarystandard achievement index
number against the total
measured index number for
Sox, particulate, NOx, anddioxin.

* Water: Ratio of the voluntarystandard achievement index
number against the total
measured index number for
pH, CoD, SS, etc. (excluding
water temperatures)* Noise: Ratio of time zones in which
voluntary standards were achieved
out of the total number of timezones in which measurements
were taken (daytime, morning,
evening, and night)* Vibration: Ratio of time zones
in which voluntary standards
were achieved out of the total
number of time zones in whichmeasurements were taken(daytime and night)

Environmental Performance

Chemical SubstanceManagement

age
Us
or

vis

per

Su

isor

e Superv

usWarehor

perviso

StorageSu

1. Establishing a Chemical Substance Management System
2. Monitoring Amounts of Chemical Substances Handled
3. Implementing Chemical Substance Management(1) Examining Facilities(2) Managing Waste that Contains
Chemical Substances(3) Restricting Emissions through Facilities Improvement(4) Management by Production Process(5) Proper Usage
4. Preparing for Accidents and Emergencies
5. Education and Training

PRTR
Group

Dis
pos
al

1) Purchasing prohibited: 10 chemicals.
These are chemicals that may not be
contained in any raw materials we purchase.
2) Inclusion in products prohibited: 6 chemicals.
These are chemicals that may not be
contained in amounts above a prescribed
level in any DNP product.
3) Inclusion in product controlled: 13 chemicals.
These are chemicals for which inclusion
in DNP products is monitored.

Promotion Officeor<Chemical Substance Management Guide>

Environmental
Committees
in eachOperation

rvis<DNP Group Chemical Control Standards>

Chemical Substance Management SystemSupe

We have established the “DNP Group
Chemical Control Standards”for themonitoring and control of toxic chemicals, including raw materials, and toensure product safety and environmental conservation pertaining tochemicals. Controls on 29 chemicals
are implemented based upon three
categories, “purchasing prohibited,”“inclusion in products prohibited,” and“inclusion in products controlled.” Thechemicals are for all products andmaterials used in the manufacturing
processes by the DNP Group.
The table below outlines the management categories of the audits
conducted at our suppliers in 2005, bywhich we renewed our database of theamounts of chemicals subject to controls contained in approximately 23,000
ingredients. Using this database wethen renewed our datasheet for chemicals contained in approximately 340
product lines from across the DNPGroup, and created a structure for
ensuring product safety and environmental conservation.
In addition, as the chemicals andsolvents may leak during deliveries tothe plants or during waste disposal,
we endeavored to prevent accidents
by enacting a Chemical SubstanceManagement Guide, by setting up
levees to prevent the liquid from overflowing in the delivered plants, and bycreating two-tier storage tanks.
Furthermore, in case of emergencies, we stocked up on materials thatcan be used during emergencies andheld emergency training drills.

* Chemical substance management in purchasing is
described on page 27.

Examples of scenario-based emergency response training
Air pollution prevention

Water pollution prevention

Water pollution prevention

Water pollution prevention

Kamifukuoka Plant, Electronics Devices
Operations, gas leak response drillTokyo Plant, DNP Kenzai,
ink leak response drill

DNP Technopack Tokai,
oil leak response drill

Otone Plant, DNP Precision Devices,chemical leak response drill* Odors: Ratio of the voluntary standard
achievement index number against the total
measured index number for emission ductodor density, perimeter fence odor density
and the number of substances for which
density the measurements were taken.

71Environmental Risk Management

Soil and GroundwaterContamination
The DNP Group implements soil inspection guidelines that exceed thelegal requirements. When soil contamination is discovered through ourinspection, we file a report with the office of the governor or mayor in chargeof that prefecture or city, and upon
instructions from the local authorities,
we implement appropriate measures
for removing the contamination.
In 2005, DNP inspected groundwater conditions at the following sites.
A soil inspection was conducted inaccordance with the “Osaka Prefecture
Living Environment Ordinance” dueto the dismantling of the DNP MediaCreate Kansai Osaka Plant. The
inspection revealed that levels oftrichloroethane, flourine and lead insome areas exceeded environmental
standards. Soil decontamination by soil
removal and replacement was thereby
conducted under the guidance of the
Osaka prefectural authorities.
No soil contamination was found at
any other sites.
<Sites inspected for soil and groundwaterpollution in 2005>
Groundwater inspection
Tokyo Plant, DNP Kenzai
Kamifukuoka Plant (Electronics Segment)
Mihara Plant, DNP Precision Devices
Fukuoka Plant, DNP Nishinippon

Soil inspection
Osaka Plant, DNP Media Create Kansai

PCB storage
PCBs are currently in storage at 26
sites. There is a total of 294 units,
an increase of 5 units from 2004.
The PCBs were contained in electric
equipment that was used in substation facilities in our plants which are nolonger in use. The PCBs are stored in
special containers in special storage
rooms, and are managed under thestrictest of conditions in accordancewith applicable regulations to ensure
prevention of leakage or loss. Each site
makes sure the PCBs are stored in theappropriate manner, performing daily

72

inspections and making regular reports to the authorities, and confirming
storage conditions in annual internal
audits.
PCB disposal began nationwide at
the end of 2004. All PCB currently instorage with be disposed of as requiredby law according to the disposal plansfor each region.

Legal compliance situation
While we make all efforts to comply
with environmental laws and regulations, over the past three years wehave experienced 1 leakage of solvent
onto the pavement, 2 incidents of water quality abnormalities in wastewater,
1 discharge of wastewater into public
waters, and one case of inadequacy ofqualified personnel.
There are no ongoing legal disputes
involving environmental issues. We
have unfortunately had some complaints from areas neighboring ourplants concerning noise and odors.
Whenever we receive such complaints,
we launch a thorough investigation
into the cause of the problem and work
to make improvements to prevent a
recurrence.
<Situation over the past three years>
March 29, 2004/
Ichigaya Plant, Ichigaya Publication Printing
Operations
An accident occurred involving the leakage of ink dilution solvent, which wascaused by deterioration in a pipe fitting ina gravure ink pipe. Approximately 50 litersof ink leaked outside the premises. Sandand other materials were immediately
spread to absorb the solvent, and there
was no leakage into the main sewer. Afterthe accident occurred we took measures
to prevent any expansion of the leakage,
and we filed accident reports with boththe local fire department and the water
bureau. We proceeded to take measurers
against recurrence under the guidance ofthe fire department
August 24, 2004/
Ushiku Plant, DNP Data Techno
An accident occurred when the BOD and
COD value of the final discharged water
was above the standard criterion. It wascaused 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 ourmeasures against reoccurrence.
July 27, 2005/
Ushiku Plant, DNP Data Techno
An inspection plate cover accidentallycame off of a wastewater pipe, discharging wastewater, but the wastewatergate was immediately closed and thewastewater pumped out. Although thewastewater contained no toxins, about
500 liters escaped into public water,
so we filed an accident report with theauthorities. We changed the method forfastening the inspection plate cover under
the guidance of the authorities.
February 6, 2006/
Ushiku Plant, DNP Data Techno
An on-site inspection by the public authorities revealed that the BOD and COD
values of the plant's final effluent werein excess of the standard. The cause ofthis 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 theamount of methanol injected based on
the wastewater throughput burden.
February 24, 2006/
Tanabe Plant, Dai Nippon Printing
Despite being a Type 1 DesignatedElectricity Management Plant, an Energy
Manager had not yet been appointed.
Therefore, the authorities issued awarning upon conducting an on-site inspection. We reported the appointmentof an Energy Manager the following
March, which was acknowledged by theauthorities.

Environmentally Conscious Products

Environmental Performance

We have broadly increased our sales of environmentally conscious products.

We have created a succession of products with reduced environmental impact throughout the product/service lifecycle. We far
exceeded our sales targets for environmentally conscious products in FY 2005.

Development and Sales ofEnvironmentally Conscious
Products
In order to reduce environmental impact throughout the product lifecycle,
we have been promoting the development and sales of environmentallyconscious products by establishing the“Environmentally Conscious ProductDevelopment Guidelines.” These arebased on “Consideration of the Lifecycles of Products and Services,” whichis contained in the Green Purchasing
Network’s “Basic Green Purchasing
Principles” (revised June 12, 2001.)

Targets• To increase the level each year by
10% (over the previous year).

Sales of environmentally conscious
products (Unit: 1 billion yen)

Results• We were able to reach our sales

target for environmentally conscious
products as the total was 256.6 billion
yen in fiscal year 2005, an increaseof 56% over the previous year.
The Information Communication Segment has strongly increased its salesof products made of Forest-Certified
paper and soy ink, as well as of cards
that contain no polyvinyl chlorides. The
Lifestyle and Industrial Supplies Segment has had a strong showing for its
products that contain no chlorinatedmaterials, and for products that are
now made of paper instead of plastic.
The Electronics Segment made a big
contribution to the increase in Groupsales with its sales of products containing no heavy metals, and also of its
products that are made without the useof organic solvents in the manufacturing process.

256.6
250

21.7

200

140.4

150

164.0
15.7

16.0
100
75.7
13.7

101.9
15.3

50

0

113.1

49.4

35.6

19.5

76.9

96.5

74.6

52.9

57.5

9.1

9.6

14.2

22.0

25.3

'01

'02

'03

'04

'05

BC
Electronics
Lifestyle and Industrial Supplies
Information Communication<Environmentally Conscious Product Development Guidelines>
1) Reduction of environmental pollutants
Elimination of ozone layer-damaging substances, heavy metals, volatile organic
compounds, and prevention of release
into the environment of nitrous oxides
and other substances

Examples of environmentally conscious products

2) Resource and energy conservation
Reduce the use of metals and fossil fuels
3) Sustainable use of resources
Utilize natural resources in a sustainableway4) Long-term usability
Make considerations for the ease of
repair and parts replacement, length ofmaintenance and repair service, and the
expandability of functions

Peel-off shipping forms

Drainage material for flat cables

5) Reusability
In the case of sites and parts, considerations regarding disassembly, cleaning,
and refilling; establishment of a collection
and reuse system that is easy for the purchaser to use
6) Recyclability
Are the materials used in the producteasy to recycle? Does the design allow
for easy breakdown, disassembly, andseparation of materials? Is there a collection and recycling system that is easy forthe purchaser to use?

Soy ink

HT Floor

7) Use of recycled materials, etc.
Use as many collected and recycled materials and parts as possible8) Ease of treatment and disposal
Attempt to place as little burden as possible on incinerator facilities and landfill
sites

Pre-forms

Insulated cups73

Green Purchasing / Environmental Label Certification

We are making progress in our “green purchasing” of raw materials and general supplies, and in acquiring CoC and EPD certification.
We putt priority in purchasing to low-environmental impact parts, materials, equipment, and office supplies, and are making
efforts to reduce the environmental impact of production processes upstream. We also are promoting Environmental Labelcertification, which provides proper environmental information about products.

Results

Green Purchasing
We have established targets for green
purchasing of raw materials and general materials with the goal of reducing
upstream environmental impact andcreating a sustainable recycling-basedsociety.

Targets•To increase the rate of the products

purchased according to the green
purchasing standards of DNP, to 40%
by 2010.
•To increase the purchasing rate of environmentally certified products, suchas those labeled with the Eco-Mark,of the total supplies (office supplies
and equipment) to 50% by 2010.

Environmental Label
Certification
In regard to environmental labels, weare acquiring the “S-mail recycled
paper type” Eco-Mark, and in addition
are promoting the acquisition of CoC
certification for use as a Type I environmental label. The CoC certification
system guarantees that the pulp usedin making the printed materials is Forest Certified as having originated inforests that are managed according toenvironmentally sound practices. We
are endeavoring to promote the salesof CoC certified products.
We also acquired EPD certificationin June 2005 for Type III labeling of
fused thermal transfer materials anddye-sublimation transfer materials.
EPD is an environmental declaration
program developed by Sweden’s Environmental Management Committee forthe disclosure of LCA data reviewed bya third party.

In 2005 we succeed in increasing ourpurchasing ratio for environmentallyconscious raw materials (Purchasing
Division Green Purchasing Standards)
by 3.9 points, and our purchases of environmentally-friendly general supplies(products with Environmental Labelcertification, such as the Eco-Mark) by
11 points, to 27.5% and 41.6% respectively.

[Efforts in General Supplies (stationery
and office supplies)]
We broadly increased our purchasesof environmentally-conscious general
supplies because of an increase in theselection of newly-certified environmentally-conscious products.

[Efforts in Raw Materials (paper, ink, andmanufacturing supplies)]
We improved our purchasing rate forenvironmentally-conscious materials in
2005. The Information Communication
Segment increased purchases of ECFpulp and TCF-pulp paper, while theclear-vapor deposit film and barrier filmof the Lifestyle and Industrial Supplies
Segment and the steel frames andarsenic-free glass used in the shadow
masks of the Electronics Segment
received environmentally-conscious
certification.

Purchasing rate for environmentallyconscious products (%)
41.6
40
30.6
30

20

10

0

26.1
17.6
15.9

'01

27.5

21.6
24.3

23.6

'03

'04

18.6

'02

'05

Raw materials
General supplies

CoC and EPD Certification Acquisition Status
Certification TypeAcquired By

Acquisition Date*

Registration
Organization

FSC-CoC

DNP Tokai

Oct. 2002

SGS*

FSC-CoC

Commercial Printing Operations

Aug. 2003

SGS

FSC-CoC

DNP Media Create Kansai

Sep. 2003

SGS

FSC-CoC

DNP Trading

Dec. 2003

SGS

FSC-CoC

Yokohama Plant, Packaging Operations

Dec. 2005

SGS

FSC-CoC

DNP Tohoku

Mar. 2006

SGS

FSC-CoC

Ichigaya Publication Printing Operations

Mar. 2006

SGS

PEFC*-CoC

Packaging Operations

Jan. 2004

JIA*

PEFC-CoCDNP Tokai

Sep. 2005

SGS

EPD*

Dye-sublimation transfer materials (2 types)

Mar. 2003

JIA

EPD

Fused thermal transfer materials (8 types)

Jun. 2005

JIA*Date of initial registration*[FSC] Forest Stewardship Council*[PEFC] Programme for the Endorsement of Forest Certification Scheme*[SGS] SGS ICS Japan*[JIA] Japan Gas Appliances Association*[EPD] Environmental Product Declarations*[Products conforming to Green Purchasing Standards]
Paper: Paper made from recycled pulp, non-wood pulp paper, ECF/TEF pulp paper (paper made from non-chlorine bleached pulp), FSC-certified forest pulp, biodegradable resin.
Ink: Soy ink, water-based ink, and non-toluene ink (ink that does not contain toluene), substitute solvent, recycled solvent. Manufacturing supplies: Eco-mark certified products,
reused or recycled materials. Sites subject to these standards are the 32 sites under the jurisdiction of DNP’s Purchasing Division.

74

Certification Acquisition

Environmental Performance

We promote the acquisition of ISO14001 certification.

We are promoting a unique environmental management system by creating ISO14001 compliance based on the Eco-Report
System that takes into account the special characteristics of each business domain.

Targets

Results•To promote ISO14001 certification at• By FY2005, 31 sites had acquired

30 sites by FY2005.

certification, meeting our target.
DNP Photomask Europe of Italy wasadded to this list as of April 2006,
bringing the certification total to 24
systems at 32 sites.

ISO14001 Certificates
Site

Registration
Organization
Nov. 1997
JIA-QA*
Date*

1

Okayama Plant, Information Media Supplies Operations

2

Mihara Plant, Display Components Operations

Jul. 1998

3

DNP Facility Services*

Apr. 2000

AJA*

4

Okayama Plant, Decorative Interiors Operations

Jul. 2000

JIA-QA

5

CHUBU Operations, DNP Tokai

May 2001

JIA-QA

6

Sayama Plant, DNP Technopack

Dec. 2001

DNV

7

Kobe Plant, Decorative Interiors Operations (same system with No. 4)

Jan. 2002

JIA-QA

8

Tokyo Plant, The Inctec

Jan. 2002

JCQA*

9

Kansai Plant, The Inctec (same system with No. 8)

Jan. 2002

JCQA

10

Utsunomiya Plant, The Inctec (same system with No. 8)

Jan. 2002

JCQA

11

Ushiku Plant, IPS Operations

Mar. 2002

DNV

12

DNP Technopack Tokai

Mar. 2002

JCQA

13

Tien Wah Press (Singapore)May 2002

PSB*

14

Chikugo Plant, DNP Nishinippon

Jun. 2002

DNV

15

Kyoto Plant, Electronics Devices Operations

Jul. 2002

DNV

16

Sayama Plant, Information Media Supplies Operations

Oct. 2002

JIA-QA17

DNP Media Create Kansai

Mar. 2003

JIA-QA18

Advanced Colortech

Jan. 2004

JCQA

19

Tokyo Plant, Decorative Interiors Operations (same system with No. 4)

Jan. 2004

JIA-QA

20

Kamifukuoka Plant, Electronics Devices Operations

Mar. 2004

AJA

21

Fukuoka Plant, DNP Nishinippon

Jun. 2004

DNV

22

Itabashi Area, DNP Logistics

Oct. 2004

AJA

23

Tokyo Plant, DNP Ellio

Jan. 2005

LRQA*

24

Osaka Plant, DNP Ellio (same system with No. 23)

Jan. 2005

LRQA

25

Warabi Plant, IPS Operations (same system with No. 11)

Mar. 2005

DNV

26

Nara Plant, DNP Data Techno Kansai

Jun. 2005

DNV

27

Tien Wah Press (Johor Bahru)

Nov. 2005

PSB

28

Otone Plant, Display Components Operations (same system with No.2)

Mar. 2006

DNV

29

Kashiwa Plant, DNP Techno Polymer

Mar. 2006

JACO*

30

Kansai Plant, DNP Techno Polymer (same system with No.29)

Mar. 2006

JACO

31

DNP Photomask Europe

Apr. 2006

CISQ*

32

DT Fine Electronics*

Mar. 1997

JACO

DNV*

Mihara and Otone Plants,
Display Components Operations

Kashiwa and Kansai Plants, DNP Techno Polymer* Indicates the first registration date.
* DNP Facility Services acquired the certificate as partof a comprehensive management system of quality,
environment, labor safety and food sanitation; theinitial registration organ was JIC-QA (JIC Quality
Assurance Ltd.)* DT Fine Electronics registered as part of Toshiba
Corporation (Semiconductor Company) (Kawasakishi, Kanagawa Pref.)*[JIA-QA]: Japan Gas Appliances Association QA Center, QA Center*[DNV]: Det Norske Veritas (Norway)*[AJA]: AJA Registrars Ltd.
*[JCQA]: JIC Quality Assurance Ltd.
*[PSB]: PSB Certification Pte Ltd. (Singapore)*[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)

75

Activities at Overseas Sites

We are introducing the Eco-Report System at overseas sites also.

We are enhancing environmental management at our overseas sites through our Eco-Report System and Overseas Surveillance.

Efforts at Overseas Sites
We implemented the Eco-Report System (see page 53) at our overseas
sites as well in 2005. We will continue
to work to enhance our environmental
management. Our Headquarters Promotion Office also visits all overseas
manufacturing sites and offices once a
year under our Overseas Surveillance
program, checking on the environmental management situation and giving
guidance. Overseas Surveillance wasconducted at all overseas manufacturing sites and offices in 2005.
We promote compliance with all
local laws and regulations at our overseas manufacturing sites, as well as
environmental conservation measures
such as setting targets for energy conservation, waste reduction, and recycling. We also promote the setting andachievement of targets for items suchas energy conservation, reduced paperuse, and recycling at our overseas offices.

Confirming registration
Tien Wah Press(Johor Bahru)

2
1
3

4

6

5
7 8

<Overseas Manufacturing Sites><Overseas Offices>

1. DNP Photomask Europe
2. DNP Denmark
3. DNP IMS America
4. DNP Electronics America
5. Tien Wah Press (Singapore)
6. Tien Wah Press (Johor Bahru)
7. DNP Indonesia (Progadon)
8. DNP Indonesia (Karawan)

Dusseldorf, London, Paris, New York, Los
Angeles, Silicon Valley, San Francisco, San
Marcos, Seoul, Shanghai, Taipei, Singapore,
SydneyEnvironmental facility
DNP Denmark

Environmental facility
DNP Photomask Europe

Emergency response equipment
DNP Electronics America

Office recycling
San Francisco office

Current situation of environmental impact (1 -6 tabulated between April 2005 and March 2006; 7-8 was tabulated between January 2005 and December 2005)
CO2 emissions

Final amount ofwaste disposals

VOC emissions

1. DNP Photomask Europe
Agrate, Italy; manufacturing photomasks

2,790ton-CO2

78 tons

less than 1 ton

2. DNP Denmark
Carlslund, Denmark; manufacturing projection television screens

1,180ton-CO2

0 tonsless than 1 ton

3. DNP IMS America
Concorde, North Carolina; manufacturing information media supplies

1,720ton-CO2

304 tons

less than 1 ton

4. DNP Electronics America
Chula Vista, California; manufacturing projection television screens

1,670ton-CO2

15 tons

less than 1 ton

5. Tien Wah Press (Singapore)
Singapore; offset printing and binding

15,380ton-CO2

455 tons

201 tons

6. Tien Wah Press (Johor Bahru)
Johor Bahru, Malaysia; offset printing and binding

3,680ton-CO2

182 tons

135 tons

7. DNP Indonesia (Progadon)
Progadon, Indonesia; Gravure printing and offset printing

20,140ton-CO2

2,680 tons

2,530 tons

8. DNP Indonesia (Karawang)
Karawan, Indonesia; Gravure printing and offset printing

15,200ton-CO2

698 tons

3,300 tons

* The results were calculated using GHG protocol indexes based on the CO2 emissions and energy consumption.

76

Environmental Education

Environmental Performance

We are constructing education and training systems so that consciousness of environmental issues takes root among our employees.

Type of Training

Course Name

Description

Held inEligibility

Time of year

No. in attendancein 2005(Total Participants)

Education for New
Recruits

Environmental
Activity Overall(required)

Basic environmental knowledge andconservation efforts of the DNP Group1994

All new recruits

When joining thecompany

438 persons(3,673 persons)Technical Seminar

How DNP Deals with
the Environment(required)

Basic knowledge of the environment issue,
its impact and improvement means suchas environmental conservation facilities

1997

Technicians intheir 2nd year of
employment

Fiscal year of
attendingthe seminar

286 persons(2,564 persons)Technical Seminar

Environment(optional)

Environmental laws and regulations

1999

Technicians

At irregularintervals

164 persons(314 persons)

Network Learning

Environmental
Issues and Business(required)

Environmental information to be used
when presenting customers with proposals
concerning environment-oriented
businesses

2000

Employees with morethan 2 years experiencein the sales and planning
divisions

Employees
can decide forthemselves

1,634 persons(8,837 persons)Correspondence
CourseOptional

Beginners class on ISO 14001 and LCA

All employees of
DNP Group

Semiannual

Eco-report Training

Environmental
Issues of the Group(required)

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

1993

Site members andfactory-related personnelof the operations' groupenvironmental committee

Twice a year
upon issuing of
the Eco-Report

Environmental
Communications

Risk Communications(required)valuating health risks of chemical
substances, methods of reducing
emissions, disclosure of data concerning
such substances

2002

Site members of theoperations' groupenvironmental
committee

At irregularintervals

0 persons(263 persons)

I took an environmental course so that CSR can fully
take root at the workplace.
Toshiaki Yatsuhashi

Technical seminar held November 25, 2005
(Topic: Environment)

Technical Operations
DNP TokaiAs the central organization within the DNP Tokai Manufacturing 21 Promotion Group, the ISO Bureau is currently engaged in restructuring ourIntegrated Management System (IMS), which consolidates all of the various
international standards, such as ISO14001, Forest Certification, ISO9001, andJISQ15001, under a single system. I was inspired to take an environmental
course because I believe in the importance of a company’s behavior in society and in corporate compliance with laws and societal ethics in realizing
the sustainable pursuit of profit. These are major factors in a company’s CSR(corporate social responsibility), and taking the course helps ensure that theknowledge of laws with which we must comply as members of the DNP Group
becomes thoroughly understood within the ISO Bureau.
The lectures that I attended on environmental laws focused on common
themes within these laws, and were very easy to understand. The lecturematerials and topics have been effectively developed as part of environmental education focusing on employees at the level of Section Manager
and above. We, in the central organization, get quite a few inquiries throughthe business segments every year from clients concerning environmentallyconscious products and services. I hope to attend more such lectures, whichcontain a lot of specific details and useful explanations of actual examples,so as to help develop the full potential of this business.

Technical seminar held March 8, 2006
(Topic: Industrial waste)77

Environmental Accounting

We manage costs and economic benefits in order to continue improving our environmental conservation efforts.
Our environmental accounting follows the Ministry for the Environment guidelines for effective environmental management and isa social communication tool. We reduced our VOC emissions in 2005.

Environmental Accounting
Data and Disclosure<Environmental Accounting Calculation Bases>
1) Period covered: April 1, 2005 through March 31, 2006 (Environmental conservation facilities arethose considered as of March 31, 2006)
2) Scope of coverage: Of companies subject to our consolidated financial accounting, environmental
accounting was applied to the Group’s domestic manufacturing companies (43 companies and 54
sites), one distribution company, one in-house food catering company, and one important company
covered under the equity method.
3) Monetary unit: All monetary figures are expressed in millions 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 andwater) spent on business activities, as well as for the volume of waste materials and CO 2 emissions. Furthermore, the DNP Group uses the added-value total of the company concerned as anindicator 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 ofJapanese Corporations” issued by the Ministry of the Economy, Trade and Industry.
• Environmental pollutant emissions’ volume into the air for the business area costs from this period
refers to the total volume of PRTR-listed 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 arecalculated 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 fluctuations in prices.

Targets(1) Use as an environmental management tool for the DNP Group• Environmental accounting produces
a breakdown of environmental conservation costs as that can be used
as a reference for determining theeffectiveness of environmental conservation activities.
• Environmental accounting data isused to determine the cost of individual environmental facilities, theGroup’s overall budget for environmental conservation, and the amountof investment in environmental
activities.
• Environmental accounting is used tomonitor and evaluate the effects andachievements of activities performed
throughout the year in order to ensure continuous improvement in ourenvironmental performance.

(2) Use as a tool for communicatingwith society• Environmental accounting provides
the means for the public release of
our environmental conservation efforts and their results.
• We use the reception concerning ourenvironmental accounting reports asreceived from shareholders, clients,and local communities as a reference
for improving our approach to environmental conservation.
<Results of Our Environmental Accounting>

Table (1) Environmental conservation costs (Categories corcesponding to business activities)
Category

Investment
2004

Expense

2005

2004

2005

Details of Major Efforts

Refer to:Increase in deodorizing equipment, expansion of wastewater treatment facilities, erection of noise barriers

62,63,66,70(1) Business area cost
Pollution prevention cost

854

997

2,885

2,200

Global environmental conservation
cost

101

220

1,050

725

Resource circulation costs

171

102

3,725

3,008

(Total business area costs)

1,126

1,318

7,660

5,933

Increase in waste-heat boilers, motive energy inversion, thermostat and light controls
Increase in compressors, separation recycling, zero emissions (conversion to RPF / cement ingredients),
use of recycled water(2) Up/downstream cost

129

115

(3) Administration cost

2,036

2,078

ISO14001 inspection and registration costs, environmental measurement costs, environmental reportcomposition costs(4) R&D cost

2,386

2,696

Research and development into environmentally conscious products and production methods

1121(5) Social activities cost(6) Environmental remediation cost
Total

1,126

1,318

65

0

12,287

10,842

Cost of environmentally conscious product design and container/packaging recycling

64
67,68,6973
52-55,75
73

Cleanup of areas outside the plant compound, support for activities of environmental conservation groups72* Includes ¥400,000 for WWF and ¥200,000 for Japan Greenery Research and Development Center

Environmental conservation costs to total costs ratio
Consolidated
Category
Costs
Total Costs
Investment of current period
136,059
1,318
R&D cost of current period

78

28,692

2,696

Ratio

Details of Major Environmental Conservation Costs

Refer to:0.97%

Catalytic deodorizing equipment, expansion of wastewater treatment facilities, increase in waste-heat boilers, etc.

62,63,66

9.40%

Non-PVC decorative sheets, biodegradable plastics, product weight reduction, water-based inks, etc.

73Environmental Performance

Table (2) Environmental conservation benefits
Category

Category of indicator showing benefit

Value
2004

2005

Remarks

Difference

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

20,10020,800

700

0.425

0.423

-0.002

Water usage (in thousands of tons)
Added-value unit consumption for the above(1,000 tons/1 billion yen)

15,307

15,653

346

0.324

0.318

-0.006

2,560

2,734

174

Total weight of paper, plastic, ink and metals

58

13.8

12.9

-0.9

Ratio of unwanted materials that are main raw materials

58

Supplied amount (in thousands of tons)
Input volume of main raw
materials (paper, plastic, metal, etc.) Amount of undesired materials generated/supplied (%)

All consumed energy was converted into average value in calories
Energy reduced by -0.002TJ per 1 billion yen in added value

58,64

Water supply, industrial water, and well water

58,67

Water reduced by 60m3 per 1 billion yen

58,67· Environmental conservation benefit related to waste or environmental impact originating from business activities
Emissions to the air

SOx emissions (tons)

22.6

20.4

-2.2

Calculated from supplied energy

NOx emissions (tons)

702.1

723.6

21.5

Calculated from supplied energy

12,600

10,662-1,938

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

52.9

53.3

0.4

Calculated from the amount of discharged water and average concentration

0.0

0.0

0.0

Three substances discharged in 2005

Generated undesired materials (1,000 tons)

528

502.7

-25.3

Including undesired materials other than main raw

59,68,69

materials

59,68,69

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

Water quality
Water emission volume

Volume of green gas emission

59,62
59,62

Including 12 substances covered by the PRTR report

Discharged waste (1,000 tons)

95.5

91.1

-4.4

Added-value unit consumption for the above(ton/1 million yen)
Recycle rate (%)
Emissions of environmental pollutants(354 PRTR substances) (tons)

0.202

0.185

-0.017

79.5

79.4

-0.1

Reduction of waste emissions per amount of added value
The value-added cost per waste disposal amount is the same as last year
Including heat recovered on site

2,271

2,261

-10

Total for 27 substances reported

936

964

28

Including emissions by incinerators and drying furnaces

19

18.8

-0.2

Reduction of 2t of emissions per 1 billion yen of added value

Emissions of greenhouse gasses (1,000 t-CO2)
Added-value unit consumption for the above (tonCO2/1 billion yen)

59,63,66
59,63
59,66

68,69
68,69
66
58,59,64
64(2) Environmental conservation benefit related goods and services produced from business activities· Benefit related to goods produced by business activities
CO2 emissions after productshipment

CO2 emissions (1,000 t-CO2)

395.3

386.0

-9.3

Emitted at incineration and recycling of used containers and packaging

CO2 emissions / volume of products

1.46

1.38

-0.08

Reduction of CO2 emissions of 0.08t per 1t of product

4,630

4,540

-90

76.0

59.8

-16

(3) Other environmental conservation CO2 emissions during the transportation of products(tons)
benefit· Benefit related to theenvironmental impact oftransportation

CO 2 emissions during the transportation / (weight x
distance) (tons/million tons•km)

1.9% reduction of CO2 emissions
CO2 emissions reduced by 2 tons for each ton of goods transported 1 million ton-km

65

Remarks

Refer to65

Table (3) Economic Benefits of Environmental Conservation Activities
Economical benefits of environmental conservation activities

Amount2004

2005

Difference

Sales of environmentally conscious products

163,975

256,639

92,664

Sales up 56% over 2004

73

ncome from recycling undesired materials

3,048

2,148

-900

Reduction of waste metal

58,68,69

-590

271

Improvement in per unit energy consumption volume

58,64

335

72

Improvement per unit due to reduction of emissions

58,68,69(1) Increased sales· Economic benefit of R&D costs(2) Increased income· Benefit of resource recycling costs(3) Cost saving· Benefit corresponding to global environmental conservation and resource circulation costs
Saving energy costs by energy conservation-861
Saving disposal processing cost by resource
263
conservation<Evaluation of 2005 Environmental Accounting Performance Data>
Environmental conservation cost and environmental conservation activities

1) Investment in environmental facilities increased by 19.2 billion yen (17.1%) over the previous year. In addition expansion of large-scale environmental facilities such aswaste-heat boilers and wastewater treatment facilities was due to the continuation of VOC measures (catalytic incinerator and solvent collection equipment) ongoingsince 2004.
2) Business area costs were down 22.5% in comparison to the previous year. This was mainly due to a reduction in the costs of recycling and processing industrial waste.
3) The increase in research and development costs over the previous year was due to an increase in the number of environmentally conscious product themes in the
Living and Industry Segment and an increase in the budget for existing themes.

Environmental conservation benefit

1) An approximately 76.0 billion yen investment in solvent collection and elimination facilities was made in 2005, and emissions of VOCs were reduced by 1,938 tons.
2) The conversion to LNG for fuel reduced SOX by 10%.
3) Material input increased as a result of expansion of business operations, but progress was made in improving the yield rate and adding value to undesired material,
and reductions were made in undesired material and waste emissions amounts. Conversely, due to an expansion in industrial output, the greenhouse gas emissions
increased. However, per unit emissions decreased due to improvements in production efficiency and increases in waste-heat boilers and inverter equipment.

Economic benefit of environmental conservation measures

1) Sales of environmentally conscious products increased by 56% in comparison with the previous year, exceeding the target with a 10% increase.
2) Income from recycling undesired materils showed a decrease of 90.0 billion yen in comparison with the previous year, due to a reduction in undesired material generated, mainly waste metal.
3) The cost reduction benefit is calculated according to "Basis for economic benefits of environmental conservation measures" on the previous page.
The added value amount increased 5.9% in 2005 in comparison to the benchmark period (three-year average from 2002~2004). Including per unit improvement for
waste, an economic benefit of 7.2 billion yen was gained. Also, due to an improvement in per unit energy consumption from the previous year, the worsening trend inenergy consumption was halted.

Issues Henceforth

1) Make further improvements in eco-efficiency through Manufacturing 21 activity and eliminate all waste from production processes.
2) Continue to install solvent collection and elimination equipment so as to achieve the VOC emissions reduction targets.
3) Continue fuel conversions (fuel oil gas, LPG natural gas) so as to improve per unit greenhouse gas emissions.

79

Achievements in Environmental Issues

We have steadily endeavored in environmental issues toward the realization of asustainable society.

1972

Establishes the Environment Department within the head
office to promote pollution prevention measures and communication with local residents

1990

Make new efforts to deal with global environmental issues
by establishing the Eco-Plan Promotion Office within theEnvironment Department

1992

Establishes the DNP Group Corporate Pledge and Code of
Conduct for DNP Group Employees

1992

Establishes the Eco-Plan Promotion Targets, the fundamental 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 DNPGroup 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

1996

1997

1998

DNP wins the International Trade and Industry Minister’sPrize in the "Fourth Global Environmental Awards", which
commend companies and groups that contribute to theconservation of the global environment. (The Awards were
established in 1991 by the Japan Industrial Journal and the
Fuji Sankei Communications Group, with special support by
WWF Japan and sponsorship by the Ministry of the Environment, the Ministry of the Economy, Trade and Industry,
and the Japan Federation of Economic Organizations.)
Begins performing the Eco-Audit, the internal environmental audit performed by the Eco-Plan Promotion Office toupgrade the Eco-Report System
Okayama Plant, Information Media Supplies Operations
becomes the first in the printing industry to acquire ISO
14001 certification
Mihara Plant, Display Components Operations acquires
ISO 14001 certification
Publish the DNP Group Environmental Activity Report

2000

The Eco-Plan Promotion Office is dismantled and replacedwith DNP Environmental Committee to strengthen thesystem for promoting environmental activities

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 "6thEnvironmental Report Grand Prize" for superior reporting
Acquisition of ISO 14001 certification by: Ono Plant, DNPMedia 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 "TypeIII" 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 Operationsacquire 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 FSC-CoC
certification, and DNP Tokai acquires PEFC-CoC certification.

The affiliate DNP Facility Services becomes the first in
the world to be certified as a comprehensive system withquality, environment, office safety and HACCP
Okayama Plant, Decorative Interiors Operations acquires
ISO 14001 certification

2001

80

DNP Tokai, and Sayama Plant, DNP Technopack acquires
ISO 14001 certification<Efforts Supporting Biodiversity>
DNP considers biodiversity and the surrounding environment whendeveloping large-scale plant construction and other projects, and whennecessary we perform environmental assessments. An environmental
assessment examines, forecasts, and evaluates the effect that such adevelopment has on the environment. We publish the results of theseassessments and listen to opinions concerning them, and by taking
all of that into account we are better able to create plans from anenvironmental conservation perspective.

Independent Review Report Comments by independent institution(Shin Nihon Environmental and Quality Management Research Institute Co., Ltd.)

On-site inspection /DNP Technopack Tokai

On-site inspection / DNP Tohoku

On-site inspection / Tokyo Plant,
DNP Kenzai

81

DNP Group CSR Report 2006
DNP Group CSR Report 2006 (April 2005 – March 2006)

Printed with environmentally friendly soy ink.

Printed with waterlessoffset printing method thateliminates hazardous
wastewater used inconventional printing.

This label indicates that wood comes from FSC certified
well-managed forests and company controlled sources.

The Japanese-version of DNP Group CSR Report 2006 is printed in environmentallyconscious manners on FSC certified papers.

Corporate Social Responsibility Office
1-1, Ichigaya Kagacho 1-chome, Shinjuku-ku, Tokyo 162-8001, Japan
Fax: +81-3-5225-8083 http://www.dnp.co.jp/
Next issue scheduled for release in August 2007.

Published: August 2006
© 2006. DNP

April 2005 – March 2006