DNP Group CSR Report 2005
April 2004 - March 2005

Produced by

Corporate Social Responsibility Office
1-1 , Ichigaya Kagacho 1- chome, Shinjuku-ku , Tokyo 162-8001, Japan
Tel : +81-3-3266-2111 Fax : +81-3-5225-8083 http://www.dnp.co.jp/
Next issue scheduled for release in August 2006.

Published: August 2005
© 2005. DNP

“Taking it for granted thatwhat should be done shall be done”

Yoshitoshi Kitajima
Chairman of the Board
President and Chief Executive Officer
Dai Nippon Printing Co., Ltd.

DNP GROUP CSR REPORT 2005

If I were to describe CSR involvement in a word, I
would say it is “taking it for granted that what should bedone shall be done,” or “making it so that it is taken for
granted that what should be done can be done.” However,
it is not so easy for a company to do what should be done
as if it were something that was taken for granted. It would
be difficult for different employees to share the same values, and to always act sincerely based on those values.
Since before the time that the term CSR was used as
it is today, the DNP set down daily activities and ideas thatshould be adopted into the “DNP Group Corporate Pledge”
and the “Code of Conduct for DNP Group Employees,”holding training sessions and meetings to enable each andevery employee to always act sincerely. We therefore redefined our managerial principles as “Contributing to a
wealthy and emergent society intellectually invigorated in
the 21st century” by setting up the “DNP Group’s Vision
for the 21st Century” in 2001. Since then, we have endeavored to spread and realize these principles among all
employees of the Group. We have always expounded theimportance of “dialogue” as a concrete means to achievethis. “Dialogue” as used here does not simply mean tocommunicate, but also to share concerns with stakeholders, to discuss with them how to solve those issues, andto work with others toward realizing objectives. Knowing
what kinds of concerns confront the stakeholders makes it
clear to us what we can do for them and what is expectedof us. It is our desire to tie this into solving problems at aneven higher level.
In addition to formulating our management concept
as part of the “DNP Group’s Vision for the 21st Century,”

Top Message

we have decided to establish policies of action for creating a business vision and corporate culture, and to further
strengthen our activities for providing new values to contribute to the realization of an emergent society. Integrityin activities based on the Corporate Pledge, solid involvement in the Vision for the 21st Century, and realizing thecreation of new values can only be pursued by realizing
the management concept. And that is precisely the CSR of
our DNP Group.
To specifically point out how we have dealt with issues, we have been genuinely involved in environmental
issues for more than thirty years. In our endeavors togreatly reduce VOC in particular, including toluene, weinvested a total of 12 billion yen in solvent recovery apparatuses between 1990 and 2003. As a result, taking up thetarget of reducing VOC emissions to approximately 1/20
the level in 1999 by March 2005, we have nearly succeededin reaching that target. We started to get genuinely involved in corporate ethics thirteen years ago. This year wehave stipulated common problems to be dealt with by allof our departments as a corporation with integrity, witheach individual division having inaugurated a system forbeing practically involved in a target. As regards our involvement in the Personal Information Protection Act, thatwas put into effect in April of this year, in 1999 DNP set up
the office for the Protection of Personal Information, andhas promoted high-level activities to deal with the security of information about clients and private customers.
These activities were begun through our having reached
an understanding early on about the needs of society andwhat is expected of our company, through dialogue withmany of our stakeholders on a daily basis. In Octoberof last year, we set up the CSR Committee and the CSR
Promotion Office. We have further increased the level of
CSR throughout our entire Group, raised the awarenessof our contributions to society, and further strengthened
our activities to raise our level of business confidence.
Highly regarded for our sound activities over many years,
in February 2005 we received the Reputable Company
Award and the Global Environment Award from the
Minister of the Environment. Although we do not havea perfect record, I firmly believe that our activities are
proof that we have steadily improved the level of what the
DNP considers to be “taken for granted.” Meanwhile, wehave taken this high regard as the high expectations thatsociety has for us – and it is our hope to further firmly
respond to the mandate of society.
As regards our business showings for March 2005, theGroup has worked together toward the realization of ourvision. We have achieved record-setting sales and profits.
And in our involvement in CSR, we hope to work with thehighest aspirations, which means constantly contributing
to the development of society.
In this report we have concretely described the business activities of the DNP Group, our involvement insocial issues and in environmental conservation, breaking these down into individual sections. We have also
asked our stakeholders to state their views and to bringup related issues. We will utilize these valuable views in
our activities next year, to promote an ever higher levelof CSR.

DNP GROUP CSR REPORT 2005For the Sustainable Growth of SocietyManagement Concept
The DNP Group will contribute to the creation of an intellectuallyactive, rich, and 21st century society with emergent evolution .

DNP Group’s Vision for the 21st Century
Business VisionCorporate Culture

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

Our guiding principles aimed at creating 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

P& I Solutions DNP
The DNP Group's Corporate Pledge
1. 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 approaching issues from the viewpoint of people in their lives.

2. We will provide both valuable products and services and original business models by fusing our leading-edge information
technology with the printing technology that we have built up over the years, and by fully utilizing the wealth of knowledge andexpertise that we have developed through our long and varied experience in problem-solving.
3. We will establish an emergently evolving and dynamic corporate culture in which each individual, while taking pride in himself or
herself as a self-reliant professional and actively generating and sharing information, collaborates with and respects the individualityof his or her coworkers.
4. We will strive to enhance our individual awareness and judgment, and to act quickly and boldly, without fearing failure, when facedwith even the most difficult challenges.
5. 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.
6. We will work to preserve the Earth’s environment and conserve natural resources to safeguard the future of humanity.
7. We will work to contribute to society through communication and cultural activities, and by becoming good corporate citizens deeply
involved with the community.

Code of Conduct for DNP Group Employees
Criteria to be met in working to realize the Corporate Pledge
I. Fundamental Attitude

1. Compliance with law and social ethics
2. Respect for human rights
3. Maintenance of a good 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 of customer information
3. Handling of insider information
4. Handling of intellectual property rights
5. Use of computer networks

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DNP GROUP CSR REPORT 2005

III. Fair corporate activities

1. Compliance with the Antitrust Law
2. Compliance with the Subcontractor Payment Act
3. Compliance with the Truth-in-advertising Law
4. Compliance with security trade restrictions

IV. Other General Matters

DNP’s CSR lies squarely in the realization of the Management Concept. To that end, it is seeking the creation of new values and the establishmentof an emergently evolving corporate culture in which all its employees share in its vision for the new century and the Corporate Pledge, while promoting sincere behavior at all times. Through these actions, we seek to contribute to the sustainable growth of society by helping to solve various
social issues.

The DNP Group’s Vision for the 21st Century
Management Concept

Business Vision

DNP was founded in 1876 (9th year of the Meiji Era) as “Shueisha.”
For Japan, which had just embarked on a path to modernize its
feudal society, it was a period in which its primary goal was tocatch up as quickly as possible with the more advanced Western
Europe. It was in this environment that Shueisha had its start,
seeking to disseminate the literature of Europe through theprinting medium. Company regulations from that time set forth“civilization” as the enterprise’s core “business.” This not only
gave a clear indication of the company’s commitment to playing arole in society’s development through a business that contributed
to the civilization and enlightenment of Japan, but was a statement of its founding “Management Concept.” We have continued
throughout the ensuing century to hold fast to the principle ofcontributing to society as set forth in the original company regulations, striving to make this a reality in our core printing businessand other related fields of endeavor.
Building on this, DNP, seeking to redefine it’s role to the society of the new century, set forth in 2001 “contribution to thecreation of an intellectually vital, rich and emergently evolving
society of the 21st century” as it’s new Management Concept.
Society in this century will undergo a process of repeated andongoing invigoration. People with diverse values will be a sourceof stimulation for one another, thereby prompting the creation of
new values. The resulting new society will likewise exert an influence on its constituent members, further spurring the creation ofstill new values. Through this ongoing process, the individual andsociety will continue to develop. This constant development of
new values through the interaction of individuals and of individuals with the society in a synergistic process is what we refer to as“emergent evolution.” We thus believe that the milieu of the 21st
century will be just such an emergently evolving society, in which
it will be possible for one-plus-one to make three, or even five.
DNP has worked within a free and vigorous atmosphere to expand through emergent evolution into a wide range of fields ofendeavor. We believe that it is our mission to build further uponthese efforts to provide solutions that will result in the birth of newvalues for an emergently evolving society of the 21st century. In
keeping pace with the evolution of society and the needs and demands of our stakeholders, we are determined to continue beinga trusted and indispensable member of our community.

DNP is promoting “Production Solutions*1” and “Business Design
Solutions*2,” integrating the expertise in printing and information
technology we have fostered over the years. Fully consciousof our mission and responsibility to our customers as an active
business partner, we are clear in our determination to develop
a corporation that contributes to the resolution of all issues by
providing not only valuable products and services but original
business models as well.
*1. As an active participant in our customers’ business processes, we help solve their issues bysupplying an integrated mix of products and services.
*2. We help both customers and consumers solve their issues through the design and applicationof a wide range of DNP-developed business models that produce new values.

Corporate Culture
Our management concept of “contributing to the creation of an
emergently evolving society” requires emergent evolution in ourselves. It is thus essential for each and every employee to takepride in being a professional, and to display fully his and her individuality while helping each other to grow and advance. We havedistilled these concepts into five key guiding principle tag lines
to assist us in partaking in this emergently evolving corporate
culture, and are using them as constant checkpoints in our efforts
to realize our vision.

P&I Solutions DNP
We have summed up our vision for the 21st century - encompassing our management concept, business vision and corporate
culture - in the concept phrase “P&I Solutions DNP.” It indicatesthat we work to solve the issues of our customers through an
integration of the expertise DNP has gained
over the years in printing technology andinformation technology, harnessing the comprehensive capabilities of our entire Group.
It also embodies our determination to contribute to the development of an emergently
evolving society through by providing it withnew values.

DNP Group Corporate Pledge
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 andher mission and responsibilities as a member of that society, andwe be allowed to share in its dreams and visions. And for eachof us to act with confidence and pride, we must always keep inmind our responsibilities to society as we go about our businessand our lives. The DNP Group Code of Conduct was developedwith 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 Code of Conduct sets forth clearcut and concrete reference points for employee behavior, covering
the observance of laws, respect for humanrights, consideration for the environment,
etc. It provides a framework that enables our
employees to act honestly and correctly at all
times, and we are working to achieve its inculcation in all our Group employees.

DNP GROUP CSR REPORT 2005

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CSR
Contents

report 2005
1-2

Top Message

3-4Management Concept/Vision for the 21st Century/Corporate Pledge

6

Editorial Policy/DNP Corporate Profile

7-12

Highlights of 2004
Protecting Personal Information/Involvement with Employees/Reducing VOC

13-14

Corporate Governance/CSR Promotion Structure

15

Communication

Economic performance
17-18

Financial Data/Results of Each Segment

19-20

Solution of DNP

21-26

P&I Solutions
Planning and R&D/Information Security/Product Safety & Quality Assurance

27-28

Environmentally Conscious Products

29-30

Involvement in LCA

31-32

Involvement in Universal Design

33-34

Purchasing Activities

35

IR Activities

Social performance
37-38

Compliance with Laws and Ethics

39-46

Relationship with Employees

47-50

Activities for Contributing to Society
Corporate Philanthropy, Local Community/Professionally, Academically, Educationally

51

Awards in 2004

Environmental performance
53-54

Environmental Policy/Environmental Management System

55-56

Eco-Report System

57-58

Internal Environmental Audit

59-60

Sites Subject to Environment-related Data Disclosure

61-62

Current Status of Environmental Impact

63-64

Results and Evaluation of Environmental Conservation

65-66

Environmental Pollutants

67-68

Measures against Global Warming/Distribution

69-70

Chemical Substances/Resources Recycling (Office/Water)

71-72

Resource Recycling (Waste)

73-75

Environmental Risk Management76

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DNP GROUP CSR REPORT 2005

Environmentally Conscious Products/Green Purchasing

77-78

Activities at Overseas Site/Acquisition of Certificates

79-80

Environmental Accounting

81

Environmental Education/Achievement on Environmental Issues

82

Independent Review ReportThis is the first CSR report by the DNP Group.
We have made a special attempt to explain our efforts in the area of corporate social responsibility as clearly as possible.

Editorial Policy• In the report, we describe the DNP Group’s CSR efforts, categorizing them into three principal areas - economic, social,and environmental aspects.
• We present the highlights of topics worthy of mention in thesethree areas from our CSR efforts in 2004.
• We have sought to provide a clearer picture of these activities
by including the words of those actually in charge of the various
efforts.
• In order to add a greater measure of objectivity to the evaluations of the activities, we have elicited comments on theindividual topics from third parties, along with advice on improvements that could be made in the next year and beyond.
• As with our Sustainability Report for last year, the Shin Nihon
Environmental and Quality Management Research InstituteCo., Ltd. conducted an independent review of our environmental performance.
• In compiling this report, we have referred to the Global Reporting
Initiative’s “Sustainability Reporting Guidelines 2002” andthe Japanese Ministry of the Environment’s “Environmental
Reporting Guidelines (2003 edition).”Divisions Covered
This reports covers the CSR efforts of all companies and divisions in the DNP Group. The data in the environmental section iscompiled from a total of 57 sites in 47 of the companies includedin 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.

About the Cover
The foundation of CSR lies in “dialogue”:
Dialogue between the bulrush and the moon.
The bulrush is a hardy plant, with remarkable propagative abilities,
spreading its seeds everywhere and continuously increasing its number wherever it can. Stretching straight
up to the skies from spring through summer, it gives the impression of tirelessdiligence. Even the bulrushes in my small
garden try their hardest, providing a vivid
reminder for me whenever I catch sightof them of the strength and resilience of
nature.
In considering the theme of the design,“a dialogue with nature,” what came tomind was the plants and grasses aroundme as a part of nature, and the celestialbodies that cause the changes in the climate that affects all living things. I thus have attempted to create
a composition depicting dialogue using the relationship between acelestial body and bulrushes as my design elements
DNP Group CSR Report 005
April 00 - March 005

Ryohei Kojima : Born in 1939 in Iwate. Graduated in 1960 from theMusashino Junior College 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.

DNP Corporate Profile• 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/
E-mail: info@mail.dnp.co.jp• Established
October 1876
• Capital¥114.464 billion• Employees
9,013 (Non-consolidated)	34,939 (Consolidated)• Sales Offices
84 locations in Japan	19 locations overseas (including local affiliates)• Main Plants (including affiliates)	36 domestic plants
7 overseas plants• R&D Facilities
	11 locations in JapanDNP GROUP CSR REPORT 2005



We are highly concerned about
information security as a reputable company.

Employees enter the DNP C&I Building with multi-functional Smart cards

The Personal Information Protection Act enacted in April 2005 showsthat there is an increasing concern in the protection of privacy andinformation security. The issue of personal privacy is related to thefurther development of the social infrastructure. DNP will fulfill its social
mission with the expertise and high level of awareness cultivated by
our Group.

The DNP tradition is coping withsocial issues today.
The basic flow of DNP’s operations is toreceive, process, and provide information. In its long 129-year history, DNP
has continuously handled and safely
protected various types of highly confidential information.
For example, DNP began printing of
securities, including stock certificates,
bonds and gift certificates in 1948. When
we print securities, our company has utilized intricately designed arabesque andspecial printing technologies as measures to prevent counterfeiting. When
we print school entrance examinations,
we have developed a special confidential processing management systemand pay scrupulous attention to preventthe leaking of information. In this way
DNP has always developed advanced
technologies and attitudes with regard
to confidential corporate information, toprovide safe and sound products, and tooffer services for our customers.
The Personal Information Protection

DNP GROUP CSR REPORT 2005

Act was enacted in April 2005. This law
makes it obligatory for companies toproperly handle personal information
to prevent the remarketing of customer
information obtained by companies, toprevent the outflow of personal information, and to protect privacy.
DNP already developed a personal
information protection system in 1999.
To adapt to the overall enforcement of
this law, in February 2005, we implemented a variety of measures, including
the reevaluating this system, to determine how to cope to the demands of the
new era and how to provide even safer
products.

The DNP Group Makes Concerted
Efforts to Protect Personal
Information
DNP receives personal informationfrom clients for printing directories andalbums, producing and sending out invoices and materials for direct mails,
issuing ATM cards for banks, and ad-

ministrating the databases of clients.
We also act on behalf of clients to gather
personal information, which is used toprovide products and services. We currently have the confidence of numerous
clients, and expect to further expand
this business in the future.
DNP’s operations and Group companies, which handle personal information,
are developing compliance programs forour on-going business activities. Morethan fifty divisions have created systems for protecting personal information(organization, training, facility, etc.), andprepared manuals for procedures.
We are also actively involved in obtaining privacy marks. According to theprivacy mark system, businesses withappropriate systems for protecting personal information are authorized to use
a privacy mark. Thirteen divisions in our
entire group have already obtained a privacy mark. Divisions that have obtained
a privacy mark help other divisions intheir efforts to do the same, which is an
example of our divisions working inter-

Highlights of 2004 (Protecting Personal Information)changeably with one another. Our entire
group works together to make concerted
efforts for the common goal of a social
infrastructure.
Three policies guide our everyday
business; (1) standardization of rules
governing the delivery and receipt of
information among organizations, including our clients; (2) minimizing thenumber of personnel required to comein contact with personal information;(3) ensuring traceability to withstandexternal verification. In addition tostrengthening the system by which people enter and leave our facilities, we
utilize video cameras in computer
rooms and other security areas where
personal data are handled, and monitor
ports for the output of recorded media.
In addition to our absolute no-tolerance
policy for the leaking of information, we
promote information security measureswith a firm understanding of the value ofthe information. We handle all information as if it was our own.

Multi-functional Smart cards used as
Employee Identification
With the increasing number of crimes
involving card forgery and alteration,stronger security measures are required.
A Smart card is actually a computer inthe shape of a card, which has a memory capacity tens or even hundreds oftimes that of a magnetic card, and provides a high degree of security. DNP
began research on Smart cards in 1981.
In recent years we have been developing a biometrics system, which utilizes
Smart cards in combination with fingerprints and blood vessels.
Our security software, TranC’ert,
which monitors personal computersat all times through a Smart card, hasgained significant attention. With various functions, including an activation
control signal, encryption of information
data, user restriction, and the prohibitionof writing into floppy disks, CD-ROMs orDVDs, this software is a highly effec-

Biometric System

tive means for preventing the leakingof corporate secrets and personal
information.
Since October 2004 we have issued
multi-functional Smart cards as employee identification to all 35,000 group
employees. These cards, either touch or
no-touch cards, are used for such purposes as personal verification, employee
identification at company gates, andpayments. We are the first company tointroduce Smart cards with these specifications as employee identification.

Accepting Responsibility for the
Future of Information Security
Fifty-four group companies, including DNP, have established the Shared
Security Formats Cooperation (SSFC),
for advanced security in an office environment, formulating a common
standard for Smart cards used forFirst-floor gate of the C&I Building

employee identification. Through theSSFC, each IC employee identification
card can be used as a key for different
types of office machinery. This card
serves as a test for promoting certain
criteria and standardization through thecooperation of a variety of companies,
amid an ever-growing situation of laying
legislations which cannot be handled by
one company alone. This is to prepare
for the development of a social infrastructure for dealing with the problems
of information security.
As the standard-bearer for the standardization of information security, DNP
intends to utilize their expertise that wasdeveloped over many years along with
their excellent technology for society
and fulfill its obligations as a reputablecompany.

Feeling Safe with Consumerorientated Support
Last year DNP became fully involved in activities for protecting personal information. Fromthe very start the company has employedvarious levels of support from CP Design
Consulting Co., Ltd., which is one of our groupcompanies. We have the benefit of receiving
proposals for solutions from consultants withpractical experience in advanced information
security as well as in managing the protectionof personal information as part of their mainjob. And we believe that these on-target solutions, in which consideration has been given
to actual on-site problems in the handling of
information, enable us to provide a kind ofservice not available from other companies.
Once we were asked by a consultant how wewould like our personal information handled.
Although the words might have merely been
spoken in passing, they made an impression,and indicated that DNP Group management iscustomer-oriented.

Satoru Kanamori

Staff Manager
C.S.R. Planning Section
Corporate Social Responsibility Div.
Chugoku Electric Power Co., Inc.

Multiple Measures for Information
Security
Our operations handles a great deal of personal information as our main activities lie
in handling various types of notifications,
including direct mail and itemized credit
card statements. This is why this division
actively sets up a system for protecting personal information. We utilized encryption andtransmission as methods for transferring
data from clients, while paying particular attention to security. Using a two-dimensional
barcode in the printing to shipping process,the records are consolidated in the server. Not
only can we prevent information from being
inserted in the wrong envelope due to mechanization, but by digitalizing quality records wecan confidently respond to inquiries regarding
undelivered material, if any. It is even difficultfor our employees toenter our plants with
our tight zoning system. In addition, weare always careful toprevent the unnecessary transmission of
information, both inand out of the plant,
by incinerating all
paper waste at theHarunori Koike
plant.
Manager
Information Processing Service (IPS)
Production Planning Department, IPS Operations

DNP GROUP CSR REPORT 2005

Workplace conducive to work, where each andevery employee can wield his or her abilities
with peace of mind
The employee is an important stakeholder of the company.
Leading an affluent life depends on having a pleasant work and living environment
for all employees including their families.
We hope that our families are also happy to be with DNP.
Rooftop garden at DNP’s Ichigaya Plant

Work - Life - Balance
Work and one’s private life are both
important.
Back-to-work Program
Although more and more women as wellas men continue to work after taking
maternity and/or childcare leave, their
numbers are still few. Combining family life with one’s career, working shorter
hours while tending to domestic matters(such as caring for children) after taking maternity and/or childcare leave, isa “new working style” which is different from the conventional fulltime work
system.
Initially, employees were somewhat
uncomfortable about taking a leaveof absence in this way because there
were no archetypes, which could be
prototypes. Our company, in turn, also
felt uneasy because it did not know how
to deal with the matter. Thus we formulated and launched the Back-to-work
Program as a means to communicate
with people who need help to return to
the workplace easily after taking a leaveof absence.
We developed plan sheets, whichcontain required information about thevarious systems for each individual
situation and related procedures, foremployees who want to take a leaveof absence.The plan sheets are drawn
up for the superiors of the employees
in question, as well as the manager incharge of general affairs to enable themto understand their roles. The purpose isto ensure “mutual understanding about
the systems” and “to enhance smoothcommunication.” There are various
support systems offered through thisprogram. The company has introduced
a new Internet program called wiwiw tohelp people return to the workplace after taking childcare leave. This provides
mechanisms for smooth communications between the particular employee
and the company, as well as among employees who have taken childcare leave.
The Internet program also offers on-lineclasses to help employees utilize theirleave time for job advancement.
The Kangaroo Club is also a new system where seminars are held for those
returning to the workplace. Throughthe advice from career advisors and

An Environment where Combining Childcare with a Career is Normal
I have two children who are 3 and 1 years of age. In February of this year I finished my childcare leave formy second child and returned to work. When I was caring for my first child, there were no back-to-work
programs and I didn’t have any opportunities to contact my office. So I felt uncomfortable just before I
returned to work. With the introduction of this program, I was able to participate in the Kangaroo Club
before returning to work after I had my second child. Through this program, it was easy to talk with thecompany managers and to prepare myself before returning to work. With the support at my workplace,
I feel that I had a better attitude towards returning to work and that it was much easier for me than myfirst leave. I am currently taking advantage of the system which enables me
to work shorter hours while caring for my children. Since my working hours
are short, it is difficult for me to find enough time to concentrate on my work.
However, on the other hand, since I treasure my children I want time to devote
myself to them. While there are some inconveniences involved at my office, I
am glad to be able to work and take care of my children at the same time.
At present, being able to pursue childcare with my career at the same time
may still be an unusual opportunity, but I hope this will become a standard
system in the future.
Kiyoe Ikeda

Assistant Manager, 4th Research & Development Department, Media Technology Research Center

DNP GROUP CSR REPORT 2005

exchanges with senior employees who
have combined childcare with theircareers, participants get together todiscuss the type of work methods andmental attitudes they should have when
they return to work. Nineteen people on
childcare leave participated in the first
seminar held in January 2005.

Kangaroo Club

Systems to help people combine family
life with their careers
In April 2005, DNP introduced the“Rework System” to make it possible for
employees, who have left the company
for childcare or caring for a family member, to return to DNP. (These include
male employees who have taken a leaveof absence to nurse their children.) We
included these systems, which enablepeople to choose various types of work
styles, so that it will foster and support
a plan of action for the next generation.
DNP is obliged to continue to support
measures for combining family life with
their employee’s career.

Highlights of 2004 (Involvement with Employees)
Mental Healthand gain knowledge of appropriate
means for coping with such situations.
Furthermore, since October 2004,
mental checkups have been includedin periodic medical exams at our workplaces throughout Japan. This is to help
employees detect problems on theirown (as self-care equals prevention)

Mental health for an affluent life
There are more and more people who
suffer from anxiety, physical/mental disturbance, or depression. Maintaining andenhancing mental health is an important
issue for us to pursue as it will add vigor
and energy to our corporation.
In May 2004 we distributed a guidebook titled Mental and Physical Healthto all employees, and have continued to
distribute this book to all our newly recruited employees
We have also had occupational physicians lecture about mental health for
our line managers. Approximately 550
people have participated in these training sessions, where they have learned
how managers may move quickly to detect signs of mental health problems ifthey should occur among employees,

right away, and to help them treat any
ailments early on.
Since April 2004 we have increased
the number of days that employees may
consult a specialist at our health clinic in
Tokyo, from one day a week to two daysa week, making it easier for people to beinterviewed.

(2) Care by the line
(1) Self-care
Manager in charge of general affairs
Managers/Group-Leaders
psychological consultant• Training for new employees• Guide book distributed(to all employees)

Mentalhealthconsultant(3) Care provided by in-house occupational healthcare staff
Health clinic (mental health consultation office)(4) Care provided by outside source(s)DNP health network (outsourced)

In-house Venture System

Office for Promoting
Mental Health

Total advisors(two fulltime advisors)

Disaster Prevention Measures

Creating your own work on your own

plan is accepted, it enters the feasibility
stage (FS), and if necessary receives
operation resources. Test marketing is
conducted at the feasibility stage. At thestage that sales can be expected, theplan is committed to a final examination,and if okayed, the process for starting
up a new company is begun. Proposals
have been called for eight times thus far.
Out of 113 trainees, 82 proposals havebeen submitted. Four of these have become companies. Two new companies
were formed in 2004. One is At Table
Co., Ltd. is a sales promotion and support business targeting supermarkets.
The other is Mobile Impulse Co., Ltd.,
which operates a mobile shopping site.

We encourage each and every employee
to design his or her own career to meethis or her own specific goal. In 2000
we introduced the In-house Venture
System to help employees who come up
with an idea for a new business and whowant to start up that business. Based on
this system these projects are co-funded by DNP and the proposer (with thecompany providing 51% or more of thecapital), and it is possible for the proposer to be an executive of the venture.
This system is conducted in cooperation
with the New Business Development
Support Seminar. Going through practical training for a new business, theproposer draws up and submits a new
business plan for his or her idea. If the

In-house Venture System

Support of new business development

Call for proposals begun

The central player who is involved with business planning and development,
and interested people on the staff

Preparing for an emergency
DNP has produced disaster prevention
cards which can be carried by a person
at all times. This clearly lays out suchinformation as codes of practice in caseof an earthquake and the means for confirming communications and people’ssafety, as well as the means for coping with disasters in advance. We have
distributed these cards to all employees
and their families. By helping our employees and their families be consciousof how to cope with disasters on a daily
basis, and simulating disaster, it is our
objective to minimize human sufferingand casualties.

New Business Development Support Seminar
Proposals received
Examination/accepted

Promoted as a project
Venture business established

Disaster prevention cards
Studied and promoted
by related departments

Commercialization promoted
within the department

The four companies which have been established thus far
Date established Company name/description of business

Apr. 1, 2002

CP Design Consulting Co., Ltd.
Consultation regarding personal information protection

Sep. 12, 2003

M’s Communicate Co., Ltd.
Consultation regarding customer/membership services

Sep. 1, 2004

At Table Co., Ltd.
Sales promotion and support for supermarkets

Jan. 11, 2005

Mobile Impulse Co., Ltd.
Operates a mobile shopping site

Briefing session among the four company presidents
who have started up an in-house venture businessWe have also set up the DNP Group
Emergency Communication System, amessaging service, for our group employees and their families, as meansof emergency communication during
times of disaster. This system makes
possible:• Communication between employees
and their families• Communication between superiors
and their subordinates within thecompany
This system is for the purpose of ensuring that people will be able to smoothly
confirm the safety of others during timesof disaster.

DNP GROUP CSR REPORT 2005

10

Considerable Amount of Toluene Emissions
Have Been Reduced.

Okayama Plant

Reducing toluene emissions is significant issue for the printing industry.
DNP is involved in conserving the environment to improve residential
environments in the areas around our plants as we are aware of the significanceof the environment.

Volatile Organic Compounds Subject
to PRTR — Reducing Toluene
While chemical substances are valuable
to our lives, some may have harmful effects on human health and ecosystems
when released into the environment.
The Pollutant Release and Transfer
Register (PRTR) was instituted in 1999.
The law intends to grasp, tabulate, anddisclose data which indicates the source
and the extent the voluminous varietiesof harmful chemical substances thatare released into the environment, andwhether they are included in waste disposed from business establishments.
The PRTR plays a significant role inrestraining and controlling the reproduction of chemical substances.
Chemical substances such as toluene
and xylene are included in printing ink
solvents, adhesive and cleaning agents.
These chemical substances are called
volatile organic compounds (VOC) andeasily volatize at room temperature.
Toluene is a VOC used in gravure printing as an ink solvent and is used in theprinting process, including the printingof magazines for publications, packag-

11

DNP GROUP CSR REPORT 2005

ing, as well as in the construction field
for wallpaper and floor materials.
The toluene emissions, which is subject to the PRTR, surpassed 10,000
tons in a PRTR self-study conducted in
1999, and toluene accounts for 90% of
all chemical emissions released by the
DNP Group.

Accordingly, based on the DNP Group
Corporate Pledge, which is aimed at conserving the global environment and theeffective utilization of natural resources,
we decided to take steps to give top priority to reduce toluene emissions.

Products produced through gravure printing

Highlights of 2004 (Reducing VOC)

Installing Elimination Equipment toReduce Toluene Emissions

Our New Goal is the Reduction of VOC
not Subject to PRTR

Studies have been carried out on therecovery and removal by incineration of
toluene, which is vaporized in the printing
process, to reduce chemical emissions.
We installed recovery and eliminationequipment by recycling the recovered
toluene, which has not been mixed withother substances, and removing, thoughincineration, the toluene which has been
mixed with other substances, so that it
can be used as exhaust heat.
Currently, there are 11 recovery
equipments and 39 elimination piecesof equipment in operation. Between
1990 and 2003 we invested a total of
12 billion yen in equipment for the disposal of VOC. Regardless of a severebusiness environment, we invested insuch equipment as we are well awareof the enormous effect VOC has on theenvironment.
Through such measures we havenearly achieved our target, which was
to reduce the annual emissions to 500
tons, as we were able to reduce emissions by 10,169 in 1999.

In printing we also use sources of VOC
which are not subject to the PRTR.
The total of VOC air emissions by the
DNP Group was 12,640 tons in 2004.
Approximately 90% of the substanceswere VOC not subject to the PRTR (including ethyl acetate, isopropyl alcohol,
and methyl ethyl ketone).
DNP is also involved in grasping andcontroling VOC released onto the environment, which is not subject to PRTR.
In March 2004 we set an objective to reduce the amount of VOC air emissions(excluding toluene) by the year 2005 by
50% of the amount which was released
in fiscal year 2002. Taking into consideration the results we have achieved
in dealing with toluene, we have been
actively introducing energy conserving
recovery and removal equipment.
Anticipated amount of toluene released
into the air (in tons)

The Minister of the Environment Prizein the 14 th Global Environment Awards
The Global Environment Awards was createdin 1992 by the Japan Industrial Journal anaffiliate of the Fuji Sankei communication
Group, with special cooperation from theWorld Wide Fund for Nature Japan (WWFJapan; honorary president, His Imperial
Highness Prince Akishino), for the purposesof industrial development and coexistencewith the global environment. This annual
award is given in recognition of companies
and self-governing bodies which contributeto environmental conservation activities.
The DNP Group was highly regarded andwas awarded for its activities in working
together as one entity to reduce a significant
amount of ink solvent toluene air emissions,as well as for reducing the total amount of
hazardous substances generated in manufacturing processes.
This is their second award as they werealso awarded the 4th Minister of International
Trade and Industry Award.

10,16010,000

8,376
8,000

6,000

4,629
Equipment which enable the effective use of energy

Reducing Toluene and Introducing
Equipment for Deodorization by
Incineration

4,000

3,151

Combining Environmental Benefits
and Costs
The recovered toluene is sold to outside sources. In 2003 we sold 2,894
tons (approximately 200 million yen),
and in 2004 we sold 3,480 tons (approximately 170 million yen). In thepast mixed agents containing solvents
other than toluene were removed (forincineration) using city gas, however,by utilizing elimination equipment withthermal regenerators, the use of city gas
has been reduced. Some of the equipment use heat generated by boilers.
The Decorative Interiors Operations at
our Tokyo Plant in Saitama Prefecture
has invested 900 million yen, including
aid from the New Energy and Industrial
Technology Development Organization(NEDO), to introduce equipment for theeffective use of energy. By using theseenergy sources as boilers for drying
ink, we have been able to reduce thecity gas comsumptin by our Tokyo Plant
by 30%. Such recover and eliminationequipment used for energy conservation has also been introduced to the
Packaging Operations at our Izumizaki
Plant in Fukushima Prefecture.

2,003

2,000

1,192 Ourtarget
500
0

’99

’00

’01

’02

’03

’04

Percentage of VOC

1% 3%
8%
10%
Total VOC
Emissions
12,640 tons

14%

18%

46%

’05

Several years ago, we entered an era ofstrict laws in the area of Decorative Materials,
regarding the use of chemical substances.
These laws include the enforcement of PRTR
laws for manufacturing products (Laws forControlling Specified Chemical Substances)
as well as revisions in laws for dealing withthe sick house syndrome produce by products. Since toluene was considered to be
the worst substance in all situations, ourDecorative Interiors Operations promoted reductions of toluene through a twofold meansof introducing non-toluene ink for printing aswell as instruments for deodorization throughincineration.
As a result, we were able to reduce theamount of toluene significantly as we achieved
a non-toluene rate of over 99%. Furthermore,by recovering heat at the same time as we aredisposing gas emissions with the deodorization incinerating equipment, we are using therecovered heat as a source of energy in ourplants.

Ethyl acetate
Isopropyl alcohol
Methyl ethyl ketone
VOC subject to PRTR
Methanol
Butyl acetate
Other VOC

Shinichiro FuruyaGroup Leader
2nd Technical Department
Production Division
Decorative Interiors Operations

DNP GROUP CSR REPORT 2005

12

Seeking to bolster our CSR efforts, we have worked to enhance our system.

Corporate Governance
The ability to do anything that “what shall be done shall be done,”requires, above all, that a posture and mechanism aimed at soundand efficient corporate management be present and functioning
within the company. In 2004, we moved to bolster our corporate
governance and establish the CSR Committee and Promotion
Office.
It is DNP’s belief that gaining the trust of society by creating new values as an emergently evolving corporation throughperson-to-person interaction is essential to improving the competitiveness of our operations.
An important element in winning this trust is the thoroughgoing
implementation of a mechanism aimed at realizing these goals;i.e., corporate governance. This is a management structure inwhich appropriate decisions are made and work is swiftly carriedout based on these decisions, with the proper checks being madethroughout the entire process. We are also working to improve
our overall corporate governance, particularly in the area of ethical awareness.

Internal Controls and Auditing
DNP employs an auditing system made up of the Operations
Audit Committee, the Auditing Department, the internal auditing
systems of each of the headquarters’ departments, auditors, andaccounting auditors.
The Operations Audit Committee is comprised up three directors. Seeking to ensure that the internal auditing process is carriedout properly, it deliberates and approves in advance all auditing
plans made and results produced by the Auditing Department.
The Auditing Department, based on the annual auditing plan
approved by the Operations Audit Committee, impartially and objectively performs the accounting and operations audits for the
DNP Group as an entity independent of the operation divisions,pointing out problems and issues where necessary, and making
suggestions for improvement and carrying out the necessary follow-up checks.
In addition, the Corporate Ethics Committee and the other divisions perform regular internal audits on the areas under theircharge.
The auditors are not only in communication with the Auditing
Department on a regular and ongoing basis, but also works inclose cooperation with it, receiving an explanation on the auditing plan from the accounting auditors at the start of the business
term, monitoring the progress as needed during the term, andreceiving the audit results at the end of the term.

General Meeting of Shareholders
Board of Directors

Supervision

Operations Audit Committee

Executive Directors
Corporate Officers
Direction/Command

Business Divisions

Coordination

Corporate Social Responsibility Committee

Corporate Ethics Committee

Internal Audit

Accounting Auditors

Auditing Department

Direction/Command

Environmental Committee

Audit

Product Safety Committee
Information Security Committee
Other Head Office Division
Coordination

We have introduced a new management structure
Smooth execution of work is based on precise, prompt management decision-making, and proper supervisory functions. Seeking
to realize further enhancement of this ideal, we introduced a new
management structure on June 29, 2005. The number of directors was reduced from 35 to 26, with one external director; an
executive corporate officer* system was implemented; and thenumber of external auditors was increased from two to three.

13

DNP GROUP CSR REPORT 2005

* Corporate officers
Corporate officers are appointed by the board of directors to two year terms,
and do not serve concurrently as directors.
		 The corporate officers execute the decisions made by the Board of Directors,
and have the responsibility and authority to decide upon and carry out thosematters delegated by the board. Working in close communication with thedirectors and in close proximity to the workplace, their function is to ensurethat the views of those on the front lines are reflected in management.

Board of Statutory Auditors

Approval/Deliberation

Representative Director

Audit

Audit

Corporate Governance/CSR Promotion Structure

DNP's CSRCSR Structure

CSR begins with a dialogue with stakeholders

A specialized structure for CSR was set up within DNP in
October 2004, with the establishment of the Corporate Social
Responsibility (CSR) Committee, made up of all directors, and a
Corporate Social Responsibility (CSR) Office. The CSR Office’s
job is to gather information and data both inside and outside thecompany, use this to identify issues related to CSR in DNP and,working in close cooperation with the other company sections,come up with relevant measures for submission to the CSR
Committee. The Committee uses these measures to developa CSR strategy for the DNP Group, and works to see that it is
implemented.
Up until October, when the new CSR structure was put
into place, efforts in this area entailed the existing Corporate
Ethics Committee, Environmental Committee, Product Safety
Committee, Information Security Committee, Central Disaster
Prevention Council, and the various divisions each working together with the individual operations divisions on the themes
under their own purview.
Establishment of a specialized organizational structure has
enabled further enhancement of activities from the standpointof CSR, while promoting the identification of issues and areas
requiring enhancement, and consistent and persistent implementation of the resulting strategies. Concerted efforts are also being
made to propagate and promulgate CSR awareness throughGroup-wide level-based training and other activities.

The very foundation of CSR is formed by the honest efforts ofeach individual employee in his or her daily dealings with stakeholders as he or she works diligently to solve their problems andissues.
It is thus through this “dialogue” with the stakeholder that newvalues are created in an emergently evolving manner-- values
which can then be channeled into the society at large, enhancing the critical aspects of creditability and reliability of both theindividual and the company as a whole. It is our belief that thiswill contribute to the sustainable development of our company
and of the society.
The most important task of our CSR efforts is to build upon afoundation of compliance with laws and ethics, and a corporate
ethos for the entire DNP Group, in which such sincere behavior and value-creating activities become a matter of course foreveryone.

Customers
Provision of usefulproducts and services

Shareholders

Employees
Measure to support "independent,
yet collaborative" employees

Just and fair transactions
that enable mutual growth

DNP
Return of profits madethrough sound business growthSocial contribution activities

Suppliers

Community

Global Environment
Development of environmental activities
and environmentally-conscious products

DNP GROUP CSR REPORT 2005

14

Communication

Broadening and deepening dialogue for the better

The most important element in the promotion of our CSR efforts
is communication with the stakeholders. We have been working
to deepen our understanding of our stakeholders through a variety of dialogue formats, from an every-day give-and-take, to ouremergent evolution survey (see below), meetings with individual

Customers

Shareholders

shareholders, plant visits, our Web site, etc. We have also developed a number of tools to help smooth the dialogue process. It
is our belief that continuous repetition of such free and vigorous
dialogue will work further enhance the trust and reliance of our
stakeholders.

Employees

Suppliers

Local communities

DNP Group CSR Report 005
April 00 - March 005

Dialogue

Emergent evolution survey;
meetings with individual shareholders;plant visits;
web site; etc.

Web site
CSR Report: once/year

Annual Report: once/year

Corporate Brochure

Company Newsletter: 4 times/year Graphic Design Annual: once/year

Employment Guide

DNP Report(shareholders newsletter):
4 times/year

Plant visits

DNP

Emergent Evolution Questionnaire
When DNP announced its vision for the 21st century in 2001, it
also began to monitor our employees and customers. It repeatedthe survey in 2003 and used it to promote improvements thatwould enable it better to meet the needs of both groups. The survey is scheduled to be held this year for the third time.

Employee Survey
A greater need for interdivisional collaboration and information
sharing was uncovered by the P&I Solutions employee survey.
These results were incorporated in action programs (mediumterm plans) of the individual divisions, which clarified the roles
and strengths of each divisional and individual, and set forthmeasures to promote a structure and system to facilitate interchange. In particular, an effort was made to foster awareness in
the individual employee of being part of a whole in all of his or her
doings, with the emphasis being placed on communication andcollaboration in the workplace, divisional mental dealings, and awide range of other settings and relationships. Specifically, we
worked to expand the emergent-evolution support systems andefforts for which there were the greatest demand, including the15

DNP GROUP CSR REPORT 2005

introduction of an intracompany exchange study program, useof the company’s intranet network to re-energize our informationexchange 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 a wide range of products and services
and those with expertise in a particular field. We also have established similar overarching project teams to identify common
customer problems and issues. We are thus 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 15 client companies. Regarded as the unadulterated
firsthand views of the customer and market, the results were fed
back to the relevant divisional and used to assist us in providing
services and quality that offer a higher level of satisfaction, andwere incorporated into measures to enhance our P&I Solutions.

Economic performance

Are you familiar with the products and services
by the DNP Group? Books and magazines,
Smart cash cards, candy packaging and softdrink bottles, home paneling and automobileinteriors, television displays, mobile phone
semiconductor-related products, etc. We areproviding products, services and businesssolutions developed from the standpoint ofconsumer’s expectations regarding the thingsneeded and wanted by the people in their daily
lives and in the society around them. We atthe DNP Group are determined through ourbusiness to be an company that contributes
to the future of society.

DNP GROUP CSR REPORT 2005

16

Economic
performance

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 both our operational and cost structures based on our concept phrase of P&I Solutions DNP, achieving
record sales and profits in the process.

Printing encompasses a wide range of operations,from its Information Communication segment-including publishing and commercial printing, Smart cards,
and network-related businesses - to its Lifestyle andIndustrial Supplies segment - including packaging,decorative interiors, information media supplies andindustrial supplies - and its Electronics segment - including display components and electronics devices.
Beverages operations involve the production andmarketing of cola and juices, mainly through the
Hokkaido Coca-Cola Bottling Co., Ltd.
At the base of our printing operations lies the fundamental concept of P&I Solutions DNP. The “P” in
P&I refers to printing technology, while the “I” refers to
information technology. It represents our aim of melding the printing technology we have accumulated oversome 130 years in the business with the information

technology with which we have been involved since theearly 1970s, and applying this to help solve the problems and issues of our customers.
The business environment in fiscal 2004 was harsh,
marked in particular by slumping demand for printing-related services, rising raw materials prices, anddeclining order unit prices brought on by escalatingcompetition. Faced with this predicament, the DNPGroup has moved aggressively to promote reform in the
two areas of operational structure and cost structure.
These efforts have produced record achievements in
our consolidated Group results for sales (1,424,900
million yen; up 5.2% over the previous term), operating
profits (120,500 million yen; up 17.7%), recurring profits(120,400 million yen; up 23.9%), and current net profits(59,900 million yen; up 13.1%).

DNP Group’s Consolidated Business Results (FY ending March 2005)
Net sales
Net operating
IncomeOrdinary Income
Net Income

Net sales (100 million yen)
15,00013,42013,11914,24913,09013,541

120,400 million yen (up 23.9% over the previous term)
59,900 million yen (up 13.1% over the previous term)

1,500
1,200

9,000

900

6,000

600

3,000

300

1,205
1,024
898

859
722

’00

’01

’02

’03

0

’04

Ordinary Income (100 million yen)

923

881
747

400

’00

’01

14,89814,324（6.3%）
9,000

334

’02

’03

15,137

16,001
10

14,500（6.1%）

0’04(7.7%)
8（6.6%）’00

9,394

6,000（3.6%）

3,000

2

3,000

0

0

’02

’03

’04

’03

’04

10
8

4

’01

’02

12,000

6,000

’00

’01

Total Stockholder’ s Equity (100 million yen) / ROE (%)
15,0009,000（5.1%）

287
156

6

0

’04

529

200

Total assets (100 million yen) / ROA (%)
profits.
* ROE is calculated using current net
12,000profits.

’03

599

600

972

300

* ROA is calculated using recurring 15,000

’02

1,204

600

0

’01

800

1,200
900

’00

Net Income(100 million yen)

1,500

DNP GROUP CSR REPORT 2005

120,500 million yen (up 17.7% over the previous term)

Operating Income (%)

12,000017

1,424,900 million yen (up 5.2% over the previous term)

9,469

9,420

9,787
（5.5%）

10,0796(6.0%)
4（3.0%）（1.7%）

’00

’01

2

’02

’03

’04

0

Financial Data/Results of Each Segment

Information Communication
Products

5.1%

Segment Breakdown of Sales for the March 2005 Fiscal Year

18.9%

Sales

Information Communication

44.5%

Lifestyle and Industrial Supplies
Electronics

Magazines

31.5%

Beverages

Printing
Pamphlets[Information Communication]
Books and periodicals: magazines, books, etc.
Commercial printing: catalogs, pamphlets, posters, leaflets, etc.
Business forms: passbooks, various types ofcards, direct mail and other types of personal
mail (IPS), etc.
Net Sales (100 million yen)
Operating income (100 million yen)

8,000

800
6,592

6,000

6,199

490
400

4,000

6,298

6,406
600
493

436

400

2,000

200

0

0
’01

’02

’03

Smart cards
Lifestyle and Industrial
Supplies Products’04[Lifestyle and Industrial Supplies]
Packaging: container packaging materials for food,beverage, confectionery, daily necessity, medical
and other products.
Decorative materials: exterior and interior
finishing material for homes, furniture, etc.;
decorative sheet metal; etc.
Industrial supplies: optical film for displays,
printer ink ribbons, facsimile ink ribbons, etc.

8,000

800

6,000

600

4,000

Operating income (100 million yen)

4,201
285

2,000

Net Sales (100 million yen)

4,109

4,260

4,499
360

324

199

0
’01

Displays: LCD color filters, plasma television backplanes, CRT television shadow masks, etc.
Electronic devices: semiconductor photomasks,
lead frames (semiconductor chip connection
terminals), etc.

’02

’03

Decorative materials

’04

4,000

800

3,000

2,000

400

200

0

[Electronics]

Packaging

1,769

2,083
283

2,364

2,696
396

330

600

400
Optical film for displays

1,000

200

Net Sales (100 million yen)

85

Operating income (100 million yen)

0

0
’01

’02

’03

730

718

697

Electronics Products’04

Beverages
800[Beverages]
Production and marketing of beverages
through Hokkaido
Coca-Cola BottlingCo., Ltd.
Net Sales (100 million yen)
Operating income (100 million yen)

40

729

600

30

400

Beverage Products

200

16

’01

20

10

5

0

Color filters

-1

-3

’02

’03

0
’04

Photomasks

DNP GROUP CSR REPORT 2005

18

Economic
performance

The development and growth of the DNP Group reflects the history of the solutions
it has offered.

Since its foundation, DNP has striven through its printing technology and “expansion printing,” born out of theapplication and development of that technology, to enrich the lives of the people and provide a groundwork ofsupport to enable our customers’ businesses to succeed. In this new century, we are endeavoring to contribute to
the realization of an emergently evolving society through our concept of “P&I Solutions DNP,” seeking to provide
original, creative solutions melding printing technology and cutting edge information technology.

Founding philosophy: Engage in the business of civilization

Printing technology in a wide range of fields

Printing Best Sellers
DNP was established in 1876 as Shueisha with the goal of“engaging in the business of civilization.” The next year, its
Kaisei Saigoku Risshihen (Revised Self-Help), a Westernstyle bound letterpress printed book, became a national
best-seller, and company would go on to play a critical rolein the development of a new Japanese culture through its
printing of books, newspapers and other printed materials.

Start of expansion printing
In 1951, with the nation taking its first steps toward the onset of a full-scale consumption society, the company begins
the printing of paper packaging. Leading to a subsequent
expansion into the printing of decorative interiors, sheet
metal, fabric and a wide range of other business segments,
this marked the beginning of the expansion printing that isbeing carried on even today.

“Kaisei Saigoku Risshihen” (Revised Self-Help)
Paper packaging

Appearance of publisher-issued weekly magazines

Contributing to color TV domestic production

Prints Weekly Shincho
In 1956, the company begins to print “Weekly Shincho,” thefirst publisher-issued weekly magazine. It became an instant hit, with a circulation of 500,000 copies. The next year
saw the appearance of “Weekly Josei,” “Shonen Magazine,”“Shonen Sunday.” etc., setting off a flood of new weekly
magazine offerings.

Development of shadow mask
In 1958, DNP succeeded in the production of the shadow
mask, indispensable to the CRT color television. Its advanceinto the electronics field of printing technology contributes
to the establishment of domestically produced color televisions. The next year saw the successful production of asemiconductor photomask prototype.

First issue of “Weekly Shincho”

DNP GROUP CSR REPORT 2005

Shadow mask
(photo from the original announcement)

Semiconductor photomask

Digitalization of information creates new media

Print Club stickers become the rage

Development of electronic books
In 1972, DNP completes development of it computerized
typesetting system (CTS) and puts it into practical application. In 1985, new media is born out of the digitalization of
information, with the development of the world’s first CDROM electronic dictionary. Two years later, it released the
CD-ROM version of the authoritative Kojien Japanese dictionary in conjunction with Iwanami Shoten, its publisher.

Dye-sublimation transfer materials
In 1983, DNP developed the Dye-sublimation transfer materials. This would make possible the subsequent explosionin the popularity of Print Club instant mini-photo-sticker
booths.

Computer typesetting input device

19

Decorative materials

CD-ROM version of “Kojien, 3rd edition”

Dye-sublimation transfer materials

Solutions of DNP
Shueisha at the time of establishment

1876 • Shueisha, predecessor to Dai Nippon Printing, established.

Magnetic cards and magnetic passbooks
In 1972, DNP developed magnetic cards, and in 1977
its magnetic passbook system was put into practicalapplication. The company thus contributed to the development of the ATM age. Developing the Smart card in1983 and a biometric Smart cash card in 2004, it has
been responsible for advancing safety and security inthis field.

1877 • Kaisei Saigoku Risshihen (Revised Self-Help), a Western-style bound letterpress
printed book, produced.

Printing

Advent of ATMs: safer and more convenient

1925 • Publication of monthly magazine King (Kodansha Ltd.) begun.Printed by Shueisha.
1928 • Full-scale gravure printing begun in Japan for the first time.
1935 • Dai Nippon Printing established. (Name changed after merger between Shueisha andNisshin Printing.)
1950 • Expansion printing, incorporating the application and development printing technology and techniques, begins.
1951 • Packaging operations begun.
• Decorative wood-grain paper (decorative materials) developed.
1955 • Printing of business forms begun.
• Kojien Japanese dictionary (Iwanami Shoten) printed.
1956 • Weekly Shincho (Shinchosha Co., Ltd.) printed.
1958 • Success achieved in the production of color television shadow masks.

Toward a new age of data communication
Advancing toward the Internet and cellular phones
In 1995, DNP took the lead in starting the Media
Galaxy Internet service, with the participation of morethan 400 companies. The next year saw the explosionof Internet use. It is now operating its Internet Data
Center, which is providing support for a wide range of
media, including cellular phones, broadcast and communication satellite data broadcasting, etc.

Comprehensive Printing

Smart card fingerprint authentication system• Packaging for Chicken Ramen instant noodles (Nisshin Food Products Co., Ltd.)
printed.
1959 • Success achieved in the production of a semiconductor photo mask prototype.
1963 • ELLIO Sheet direct steel plate color printing developed.
1964 • Admission tickets, commemorative seals, and posters for the Tokyo Olympics
printed.
1965 • Boil-in-bag food pouch developed.
1970 • Laminated tube developed.
• Oversaw the production of the pavilion displays for Saudi Arabia, Pakistan, Tanzania
and others at the Japan World Exposition ‘70.
1972 • Magnetic card developed.
• Store design operations begun.
• Demand soars for fast-food-use paper cups and take-out boxes.
• A computer typesetting system is developed and put into practical application.
1973 • DNP overtakes RR Donnelley of the United States to become the world’s largest comprehensive printing company.
1977 • World’s first magnetic passbook system put into practical use.
1978 • “Curlfit” technology developed for printing on curved surfaces.

Internet Data Center

Information Processing

Media Galaxy

1983 • Information media supplies developed.
• Smart card developed.
1984 • Projection TV screens developed.
1985 • World’s first CD-ROM electronic dictionary (Trilingual Dictionary of Science andEngineering) developed.
1987 • CD-ROM version of authoritative Kojien 3rd Edition Japanese dictionary developedwith publisher Iwanami Shoten.
• Urinalysis test-paper developed.
1988 • Practical application of Hi-Vision Graphics System for the direct printing of image
data.

Information
Communication• Mass production begun of LCD television color filters using the “pigment method.”1993 • J-League Data Center placed online.
• News service using image transmission system realized.
1995 • Media Galaxy Internet service launched.
1996 • New production techniques developed for electrodes of lithium-ion rechargeable
batteries.
2000 • Internet Data Center opened.

P&I Solutions DNP

2001 • Vision for the 21st Century formulated.
• Flexible organic EL display successfully developed.
2002 • Food-product traceability system developed.
• Consulting company for personal information protection related issues established.
• The first Japanese company to gain full-scale entry into the IC tag field through collaboration with the Auto-ID Center.
2003 • DNP IC Tag R&D Laboratories established in Tokyo and Osaka.
2004 • Biometrics Smart cash card successfully developed.
• Expansion into the field of regenerative medicine aiming at the development of abiotech business.
DNP GROUP CSR REPORT 200520

Economic
performance

Our planning and R&D divisions provide answers for a wide range of problems
and issues related to printing and information technology

Technologically rooted in the undertaking of printing to the medium of paper, DNP has striven throughout its
existence to develop and offer new products and services by constantly expanding the boundaries printing
technology and its application, while always paying close attention to the cutting-edge needs of the times.
The contribution we can make to realizing a rich and vital society lies in our ceaseless efforts in the areas ofplanning and R&D.

We thus believe that the very foundations of our CSR
efforts are formed by the contributions we make as acompany through our principal operations. Our aim is
to create new values, as we work to solve the problems
and issues of our customers and, further, the people atlarge, by melding information technology with the printing technology and techniques we have cultivated over
the years.
On the very front lines of these endeavors is thesales division, which identifies the customer problems
and issues through relationships with close communications. It is then the job of the planning and R&D
divisions to develop solutions for these problems in

The Planning Division--fulfilling a wide range of needs
DNP has a planning division for each of its operational
divisions.
The Communication & Information (C&I) Operations
provides solutions integrating information technology
and marketing. The Communication Business System
Center carries out comprehensive planning, extending
from specification planning through program development, for business forms, electronic forms, Smartcards, etc. The Integrated Packaging Development
Center offers the comprehensive development of packaging, working in partnership with the customer fromthe stage of product development, and taking chargeof all subsequent processes, from package configuration to surface processing and industrial design. The
area of responsibility of the Kenzai Planning Center(Decorative Interiors Operations) is decorative materials, and it handles a wide range of aspects from spacedesign and function development, to material design.
In addition, the Group company DNP Media Create
Co., Ltd. provides support for the communication activities of our customers, primarily in the area of sales
promotion, while DNP Digitalcom Co., Ltd. carries out
digital-media-centric planning and development.
The ever-growing diversity of consumer values intoday’s world makes it almost impossible to accurately
identify the problems and issues of the market and its
constituents using conventional marketing methods.
The planning departments use a variety of surveys
and analyses in their “media value research” to identify
changes and potential communication needs for the

Efforts in the area of intellectual property

Seeking to realize a fair and open competitive
society that will spur the development of industry
The Intellectual Property Division addresses the use andmanagement of intellectual property, including the identification and patenting of DNP inventions and innovations,handling of licensing negotiations, and prevention of infringement on the patents of other companies. It is also
active in lobbying the government regarding the fair administration of the country’s intellectual property legal system.
And in the spirit of international cooperation seeking
the realization of a fair and open competitive society, it has
also been advising the government in recent years regarding international property legal systems abroad. One of the
fruits of these efforts was the inclusion in the Revised Unfair
Competition Prevention Law enacted in Korea in July 2004

21

DNP GROUP CSR REPORT 2005

answer to the trust and reliance placed in us by thecustomer.
The planning division interacts with the market andconsumers through surveys and other exploratory
activities working to uncover potential problems andissues, then work with the development and manufacturing departments to come up with new solution
ideas. We are thus contributing to the realization of arich and vital society through a close partnership withour customers.
The R&D division seeks to provide an even higher
level of solutions by developing original technology to
produce the “seeds” for yet newer solutions.

consumer and, based on that, work to develop solutions and create new business ideas.
They also issue “marketing dispatches,” which deal
with communication between the company and theconsumer from the standpoint of marketing, and “solutions dispatches,” which present optimum solutions forcompany-consumer communication issues. They also
work in collaboration with our customers through “solutions seminars” to optimize communication.

Marketing dispatch (left) andsolutions dispatch (right)

Solutions seminarof a provision prohibiting dead copies.
From around 1998, imitations of DNP’s wood-grain decorative wallpaper and vinyl sheeting began to appear in Korea,
and we have been forced to seek redress in each individualcase. The root cause of this problem, however, lay in the factthat industrial products using such natural effects as woodgrain were unprotected in the legal arena, falling througha gap that existed between design and copyright laws.
Seeking to address this problem, we petitioned the Ministryof Economy, Trade and Industry, in cooperation with theJapan Intellectual Property Association, to urge the Korean
government to help promote the development of industry byplugging the gap in its legal system. The result was a revisionof the country’s Unfair Competition Prevention Law and theinclusion of a prohibition on dead copies.

P&I Solutions (Planning and R&D)

Research & Development,Developing and Commercializing Seeds
The research and development framework at DNP has
been designed to promote not only the developmentof solution seeds in a wide range of fields but also
the actual application and commercialization of those
seeds.
It is made up of our R&D Center, which is comprisedof eight specialized laboratories, our Technology
Development Center, our Nano Science ResearchCenter (Materials Laboratory and Materials Analysis

Laboratory), our Media Technology Research Center,and six business specific laboratories (Packaging
Laboratory, Decorative Interiors Laboratory, Advanced
Industrial Supplies Laboratory, Information Media
Supplies Laboratory, Display Components Laboratory,
and Electronics Devices Laboratory). They all work
closely with the operations in seeking to create newvalues. The development of printing technology is advancing in three different directions.

• Increasingly high-level processing of information
Information processing technology, fostered by the communication technology of printing, will become increasingly
sophisticated with the advance of a networked society. We are developing products that promote the modularizationof information processing services, which add personalized elements to mass production, and information processing, encompassing such areas as data security technology, Smart cards, IC tags, etc.

• Increasingly precise patterns
We are treating printing, the large-volume reproduction of precise patterns, as a production technology in seeking
thoroughgoing improvements and advances. We are, for example, applying this to our semiconductor photomasks,
which require ever smaller nano-scale circuits, our ultra-miniature three-dimensional structure micro electro mechanical systems (MEMS), ink-jet techniques, and manufacturing innovations for display components using printing
techniques.

• Increasingly intelligent materials
Incorporating more sophisticated nanomaterials technology in paper processing techniques will enable us to makeproducts with more sophisticated and complex functions. Other areas of interest include gas-barrier packaging thatwill enable long-term storage of processed foods, biosafe 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 fields.

DNP technology: advancement seeking an emergently evolving society
Data
filteringDataminingSmart cards
DVD

CD-ROM

Lead frames

IC tag system
Micro Electro
Mechanical System

Photomasks

Printed circuit
board

)
(2

Emergently
evolving
society

MPEG-4moduleNetwork
security
Information
processing
services

Recommendationengine

In

gl
sin
a
cre

ise
ec
r
yp

ns
er
t
Organictpa

Biomaterial

EL displays
Fuel cell

Digital photomaterials

Color filters
Advanced optical film

Shadowmasks

Printing
technology

Environmentally-conscious
decorative materials
Gas-barrier
packaging

These three development directions in printing technology represent the fruits of DNP’s efforts to achieve “expansion
printing.” We are determined to contribute toward the realization of a high-level, vital emergently evolving society by
developing and integrating these three streams.
DNP GROUP CSR REPORT 2005

22

Economic
performance

Being fully aware of facing the challenges of information management

DNP provides products and services that help create affluent and convenient lifestyles for our customers andconsumers. These products and services are based on the personal information that is accumulated by DNP andprovided by our customers. With a full awareness of the importance of protecting personal information, we take theresponsibility upon ourselves as a matter of course in our endeavors to protect personal information.

In 1999 DNP formulated Personal Information Protection Policy. With the legislation for the Personal Information
Protection Act and increased concern in society for this protection, we revised our Personal Information Protection policy in February 2005 as described below. In compliance with this policy, DNP ensures that they are handling Personal
Information appropriately.

Personal Information Protection Policy
1) Comply with laws and regulations related to personal information protection; strive to protect personal data.
2) Take reasonable safety precautions to prevent illegitimate access to personal information, and to preventthe loss, destruction, falsification or leakage of such personal data. 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 andappropriate ways.
4) Respond appropriately to anyone whose personal information we hold if that person lodges a complaint,
inquiry, or a request regarding their own personal information, such as a request to disclose, correct, or stopusing 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 the scope of the requested services.
6) Establish in-house regulations concerning the handling of personal information; build, maintain, and continuously improve related systems.

Promoting the Protection of Information Throughout Our Entire Group (Organizational Measures)(1) System Maintenance
Beginning with the establishment of the Office for theProtection of Personal Information in April 1999, we
have made changes in Japan and abroad, and conducted reviews for the purpose of further strengthening
our information security measures. Currently the DNPGroup Information Security Committee has been inaugurated at headquarters, as an umbrella organization
for the entire company. The committee consists of aCommittee Chief of Information Security, the person
responsible for managing personal information (general managers of operations and presidents of Group
companies). Furthermore, an Information Security
Committee will be inaugurated in operations and Group
companies that are the core of our businesses. The
company committee consists of a Committee Chiefand 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, andcomputer measures.

(2) Maintaining Internal Procedures and Rules
Procedures and rules regarding personal information
at DNP include the Personal Information Protection
Regulations (implemented in 1999, revised in 2005)

and the Employee Information Protection Regulations(implemented in 2004). In 2002 we reviewed ourvarious related regulations regarding our overall information security, and formulated a new system forthe basic policy for information security and basic
regulations thereof. Under these regulations, we haveestablished seven standards, including those for document management, the use of computers, and off limit
areas for those who do not work for DNP.

(3) Establishment of Management System
DNP has been promoting the establishment of a management system based on JISQ15001, which is astandard for the thorough compliance with laws andthe management of the protection of personal information, for all offices which handle personal information.
DNP also actively promotes “privacy marks” given to
offices which maintain operation procedures and management systems in line with JISQ15001, as well as
the obtainment of BS7799 and ISMS, which are standards for the implementation of information security
management.

Divisions that have acquired the Certification
Divisions that have acquired the Privacy MarkDai Nippon Printing Co., Ltd., Business Forms & Securities Printing (BF) Operations

DNP Group Information Security Committee
Framework for Promoting Information Security within Operations and Group Companies
Committee Chief of information security,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 system measures

23

DNP GROUP CSR REPORT 2005

Dai Nippon Printing Co., Ltd., IPS Operations
Dai Nippon Printing Co., Ltd., C&I Operations
Dai Nippon Printing Co., Ltd., Information Communication Kansai Operations

DNP Digitalcom Co., Ltd.
DNP Logistics Co., Ltd.
DNP Uniprocess Co., Ltd.
DNP Media Create Kansai Co., Ltd.
DNP Data Techno Kansai Co., Ltd.
DNP Hokkaido Co., Ltd.
DNP Tokai Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Media Create Co., Ltd.
Acquisition of BS7799 and ISMS certification
DNP Facility Services Co., Ltd. (for obtaining simultaneous certification)
DNP Information Systems Co., Ltd. (for obtaining simultaneous certification)

DNP Digitalcom Co., Ltd. (for obtaining ISMS only)

P&I Solutions (lnformation Security)

Thorough Development of Awareness through Education and Training(Measures for Human Resources)
One of the most important themes among the variety ofmeasures we have promoted is education to enhance
the awareness of each and every employee. All employees undergo a wide range of training regarding
the protection of personal information through network
training. This training ranges from the skills needed inacquiring basic knowledge to practical training utiliz-

ing case studies. In addition to the use of handbooks
regarding the protection of personal information for the
purpose of acquiring skills to aid in the “protection of
the personal information of clients,” we also promote
the maintenance of a variety of educational manuals
and guidelines, as well as hold numerous study groupsessions.

Main training courses and conferences held in 2004
Training for Personnel Involved in Customer Relations
November 2004
Basic customer relation training

Approx. 90 persons attended

November 2004
Public release of privacy statements and obtaining consent for the use of personal information

Approx. 100 persons attended

March 2005
Dealing with requests and/or complaints from the owners of personal information regarding the handling of that
information

Approx. 100 persons attended

Sales, Planning, and Technical Training
November 2004
Training in creating manuals for rules regarding the acquisition of personal information and announcement tools

Approx. 400 persons attended

February 2004
Training in the protection of personal information

Approx. 20 regional technicians attended

Starting in February 2005
Training in the protection of personal information (lectures and drills)

Approx. 1,400 persons from the Sales
and Planning Division attended

Manuals and handbooks

National Conference Regarding Information Security
March 2004
National Conference for the Protection of Personal Information

For promotional staff

May/June 2004
Briefing sessions on policies for enhancing the protection of personal information

For promotional staff and presidents ofgroup companies

September to December 2004
Briefing sessions on specific measures for enhancing the protection of personal information (held monthly)

For promotional staff

February 2005
Briefing session on revisions in information security regulations and the Japan Printing Association’s guidelines
for the protection of personal information

Employees undergoing training

For promotional staff

Implementing Measures for Each Security Area (Physical Measures)
We have set up standardized area security levels
throughout the company, and established “security
criteria for secure areas” as a standard for specificmeasures at each level. Specifically indicating physical security measures that we have in place, including
equipment to monitor people as they enter and leave
our facilities, the safekeeping of records which arebrought in and out of our facilities, standards for the
installation of video cameras, restrictions on instruments and equipment in secure areas, and networking
outside of secure areas, we perform inspections andreview each of our facilities based on these measures.
These measures include the introduction of gates (biometrically outfitted) to prohibit unauthorized individuals

from entering our facilities, as well as equipment used
for the delivery and receipt of media in the most secure areas where digital data on personal informationis handled. Other measures include prohibiting people
from bringing certain personal belongings into our facilities, under the condition that the number of people
authorized to enter our facilities are minimized.
In addition, we have distributed standardized Smartcard employee passes to all employees of our groupcompanies. Upon the occasion of overhauling the format of our employees’ passes, we enhanced security
measures by reviewing the ID gates and introducing
flapper gates at our facilities throughout Japan.

Utilizing Advanced Security Technology in our Business (Technology-related Measures)
We perform the most thorough quality control for thevarious types of direct mail sent out to individuals andthe issuing of invoices, which constitute DNP’s main
personal information-related business, through technical measures based on our own expertise in data
printing and stuffing and sealing envelopes. In addition,
we also operate an Internet data center with advanced
security technology as part of our Internet-related business. Through this center we help promote numerous

clients to develop website and EC sites.
As measures against the leaking of information in
the process of receiving personal information, we employ painstaking encryption methods and networks.
Among the areas of handling digital data of personal
information, we carry out policies such as monitoring
the operation of logs, controlling the output to othermedia, and securing records.

DNP GROUP CSR REPORT 2005

24

Economic
performance

New value is born out with product safety and quality

At DNP, our sales, planning and R&D divisions are in charge of developing and designing solutions,while the manufacturing division is in charge of production.
In the product-making process, the one thing in which all of our divisions place the greatest importanceon is ensuring product safety and quality.

Product Safety
Our basic philosophy regarding product safety is towork to fulfill our social responsibilities by not only producing products consistent with the relevant standards
and laws but also exceeding the needs and expectations of customers.
We established the Product Safety Committee
at Headquarters and in each operations and Group
companies in November 1994, to provide a framework

through which we could promote product safety.
In our system, The Headquarters Product Safety
Committee establishes product safety guidelines, andbased on these guidelines, the operations and Group
companies product safety committees set generalstandards for safety assurance, and safety standards
for individual products.

Headquarters Product
Safety Committee

Product Safety Guidelines

Operations Product
Safety Committees

Product safetyassurance standards
Product safety standards
for individual productsGroup Companies Product
Safety Committees

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 acomplaint is received, and once a year on all productgroups.
Should these PL risk checks uncover any problems
with a product’s design or a production technology, we

modify the design or improve the technology to ensure
safety and eliminate the risk, and document thesechanges in our product safety standards.
In addition, we have been conducting PL training seminars since 1994, and began employing ourIntranet network for this purpose in fiscal 2000.

PL Management System
When developing
a new product

When a complaint
has been received

Once a year
for all products

25

DNP GROUP CSR REPORT 2005

PL risk check

Product design revision;
Production
technology improvement

Continuous improvement

Manufacturingaccording to
written procedures

Creation of written
product
safety procedures

P&I Solutions (Product Safety & Quality Assurance)

For Quality Improvement
Our policy is to offer the highest quality products andservices that provide solutions to issues faced by ourcustomers and actualize maximum satisfaction forpeople in general. By consistently maintaining and improving that level, we aim at earning the trust of people

in general and our customers.
To ensure further quality improvement, we have obtained ISO9000 certificates for quality management aswell as the HACCP9000 certificate for food safety andquality management system.

ISO9000 Certification Status
Operations/Group companies

Factory

Obtained in:Commercial Printing Operations, DNP Media Create Co., Ltd.

Enokicho, Oji, Akabane, Utsunomiya

2002.08

Information Communication Kansai Operations, DNP Media Create Kansai Co., Ltd.

Osaka, Neyagawa, Ono

2001.07

Information Communication Kansai Operations, DNP Data Techno Kansai Co., Ltd.

Nara

1999.12

BF, IPS Operations, DNP Data Techno Co., Ltd.

Warabi, Enokicho, Oji, Ushiku

1997.11DNP Seihon Co., Ltd.

Akabane2002.10DNP Degital Com Co., Ltd.

Data Processing Center

1999.12

Information Media Supplies Operations, DNP IMS Co., Ltd.

Sayama, Okayama

1994.11

Advanced Industrial Supplies Operations, DNP Advanced Industrial Supplies Co., Ltd.

Okayama

2002.01

Decorative Interiors Operations, DNP Kenzai Co., Ltd.

Tokyo, Kobe, Okayama

1997.11

Decorative Interiors Operations, DNP Ellio Co., Ltd.

Tokyo, Osaka

1998.09

Packaging Operations, DNP Technopack Yokohama Co., Ltd.

Yokohama

1998.03

Packaging Operations, DNP Technopack Tokai Co., Ltd.

Nakatsugawa

1999.11

Packaging Operations, DNP Technopack Co., Ltd.

Sayama, Izumizaki

1998.04

Packaging Operations, DNP Techno Polymer Co., Ltd.
Packaging Operations, DNP Techno Film Co., Ltd.

Kashiwa, Kansai
Kashiwa, Izumizaki

1999.05
2002.03

Packaging Operations, DNP Cup Techno Co., Ltd.

Sayama2002.09

Packaging Operations, DNP Technopack Kansai Co., Ltd.

Kyoto, Tanabe

1998.06

Electronics Devices Operations, DNP Fine Electronics Co., Ltd.

Kamifukuoka, Kyoto

1992.09

Display Components Operations, DNP Precision Devices Co., Ltd.

Mihara, Otone

1997.12DNP LSI Design Co., Ltd.

Sapporo, Akabane, Kansai, Fukuoka

2004.12DT Fine Electronics Co., Ltd.

Kitakami

2002.10

Advanced Colortech Inc.

Kitakyushu

2000.03

DNP Hokkaido Co., Ltd.

Sapporo2000.10DNP Tohoku Co., Ltd.

Sendai2000.11DNP Tokai Co., Ltd.

Nagoya1999.06DNP Shikoku Co., Ltd.

Tokushima

2002.01

DNP Kyushu Co., Ltd.

Fukuoka, Chikugo

2000.02DNP Information Systems Co., Ltd.

1999.04

DNP Facility Services Co., Ltd.

Sapporo, Asahikawa, Muroran, Hakodate, Tokyo,
Morioka, Yamagata, Hiroshima, Fukuoka
Ichigaya

The Inctec Inc.

Tokyo, Kasaoka

2003.06

DNP IMS America Corporation

U.S.A. (Concord)

1997.04

PT DNP Indonesia

Indonesia (Jakarta)

2002.05

DNP Photomask Europe S.p.A

Italy (Agrate)

2005.01

Tien Wah Press (Pte.)������
 �����
Ltd.

Singapore

2002.05

Departments

Factory

Obtained in:

Packaging Operations, DNP Technopack Yokohama Co., Ltd.

Yokohama

2000.06

DNP Information Systems Co., Ltd.

Packaging Operations
DNP Technopack Yokohama Co., Ltd.

2001.08

Display Components Operations
DNP Precision Devices Co., Ltd.

HACCP-9000

DNP Facility Services Co., Ltd.

2000.03

Activities by BF/IPS Operations
The BF/IPS Operations, which deals with statement sheets of cards/securities
and other business forms, has obtained third-party certificates for the environment(ISO14001), IT security (ISO/IEC15408), privacy protection (Privacy Mark), andinformation security (ISMS), in addition to quality (ISO9001). With a compositive
management system formed around these certificates, the division is engaged in various activities with the aspiration of providing products that are not only of high quality
but also beneficial to society in terms of environmental consideration and security
provisions, thereby fulfilling expectations of customers and people in general.

DNP GROUP CSR REPORT 2005

26

Economic
performance

We consider the environment from product development because our products play

Various needs originate in an emergently evolving society where all different kinds of people serve as
stimuli for one another to create new values. In order to respond to those various needs, DNP promotes
the development of products that are considerate to the ever-changing social environment.

Just as the 21st century is called the century of theenvironment, 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 the perspective of global citi-

zens. In each of our business fields, DNP contributes
to a sustainable recycling-oriented society by offeringsolutions, including environment-friendly products withthe global environment in mind.

USE FULL ® Packaging – A Packaging Design Guideline
In regards to packaging, we offer a wide variety of packages that are intimately involvedin the lives of our citizens such as packages for food, beverages, and products for daily
necessities.
“USE FULL® ” is DNP’s packaging design guideline which accommodates all averageusers. We design packages based on the following three key concepts that consider our
diverse society: universal design, symphony of function, and ecology.

Yoshio Nishida

General Manager, Integrated Packaging Development Center

DNP’s UD5 Principles
1) Provide useful information in an easily understood way2) Simple and direct usefulness3) Flexibility and safety in use
4) Appropriate weight and size5) Usable without excessive force or movement

U
S
E

niversal Design

ymphony of Function

DNP’s 4 Environmental Principles
1) Reduced use of packaging materials (reduced amount)2) Decreased volume of packaging use (reduced volume)3) Recycling4) Reduce the environmental impact (LCA)

cologyElectronic beam decorative paper that reduce environmental impact.
Our Decorative Interiors Operations vigorously promotes product development using
electronic beam (EB) processes. In addition to the obvious features of durability such as
preventing flaws and dirt and being weather-resistant, it also has a long life. The otherfeatures are the amount of energy and CO 2 emissions in the manufacturing process isless than half that of the urethane resin coating method.
In other words, not only do EB decorative paper last longer, they also are an effectivemeans for reducing environmental impact by lessening the CO 2 emissions into the environment, which is an issue in preventing global warming and in conserving energy.
Yoichi Hirota

Group Leader
1st Technical Department, Production Division
Decorative Interiors Operations

27

DNP GROUP CSR REPORT 2005

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

Environmentally Conscious Products

an intimate part of everyday life.

DNP’s Environmentally Conscious ProductDevelopment Guidelines

DNP’s Environmentally Conscious products(1) Reduce environmental pollutants

Lead frames for lead-free soldering

Eliminate ozone-depleting substances, heavy
metals, and chlorinated organic compounds,
and curb the release of greenhouse gases andnitrogen oxide into the environment using LCA
applications.

(2) Conserve natural resources and energy
Curb the use of metal resources and fossil fuel.

(3) Extract sustainable resources
Use primary resources.

(4) Possibility of long-term use
Consider features such as easy-to-repair, parts
that are easy-to-replace, the duration of theservice period for maintenance and repair, andexpandability.

(5) Reusability
Considering factors such as disassembly, cleaning, and refilling for particular areas and parts,
establish a system for buyers to enable easy collection and reuse of products.

(6) Recyclability
Consider if easily recycled materials are used in
products, if each material has been designed foreasy detachment, disassembly and/or separation,and if a recycling system is in place for buyers enabling the easy collection and reuse of products.

(7) Use of recovered materials
Use materials and parts that have been collected
and/or recovered in the majority of products.

(8) Easy to process and/or dispose
Give due consideration to minimizing the load on
incineration facilities and landfill sites.

These lead frames are used for lead-free soldering which
requires high-temperature processes. This product wasdeveloped by Renesas Technology Corp. and DNP manufactures and sells the frames to semiconductor makers.

Elbow Pouches
Elbow pouches are liquid refilled
packs that are easy to open and pour.
The pouches help conserve resourcesby enabling reuse of the original container, and by shrinking into a compact
size after use.

HI-CUP
HI-CUP is a double-walled heatinsulated cup made of recycled
paper. The cup can be easily
crushed into a small size after
its use.

SafmareThis is an original decorative paneling with “olefinbased” finishing and building that makes it possible tocreate spaces that meet the demands for health, cleanliness, and safety.

Peel-off shipping forms
These shipping forms only stick onto wrapping paperand cardboard boxes. They are also easy to peel off
so that the cardboard boxes can be reused. Since theycome in single sheets, they help conserve paper.

Environmentally conscious calendars
These calendars are made from recycled paper and soy
ink. There is no need to separate such materials from thecalendars after they are used because they are manufactured without any metal or plastic components

Magazines and pamphlets printed on 100%
recycled paper
Magazines and pamphlets printed on 100% recycled
paper from used magazines and newspapers. Thesepublications are not only environmentally friendly, but
are also printed with low-environmental impact soy
ink and non-VOC ink, and use printing processes that
emit no toxic fluids or use any water.

Inorganic Barrier (IB) Films
The DNP Group manufactures packaging using clear vapor-deposit barrier films that is freeof chlorine compounds, which is asource of dioxin. The film has beenused as packaging for foods, toiletries,
and other daily necessities that require
packing with barrier qualities.

* See p. 76 for sales targets and results ofenvironmentally conscious products.
DNP GROUP CSR REPORT 2005

28

Economic
performance

Considering our Product’s Lifecycle to Minimize Environmental Impact

In recent years our society has been facing major calls to reduce environmental impact. DNP is engaged in developing new products by investigating and reviewing how and to what degree each of its
products Impact the environment by giving due consideration to the product’s life cycle.

What Is LCA?
LCA stands for Life Cycle Assessment which refers
to the product’s life cycle. This life cycle consists ofthe total life of the product starting from the time its
resources are removed from the earth, its production,
shipping and operation, recycling after the use, anddisposing its remains.

it becomes possible to efficiently reduce the environmental impact. At the same time that impact is reduced,
benefits to improve recycling efficiency arises.

Basic Principles regarding Life Cycle

From the Cradle to the Grave
The impact the products impose on the environment isassessed quantitatively and objectively by calculating,throughout the entire life cycle of the products, suchfactors as energy consumption and materials used,
and the carbon dioxide and other pollutants released
into the environment. LCA helps determine the stages
when a product and/or service has great environmental impact. By focusing on the reduction of that impact,

INPUT

Product Life Cycle

Resources

Remove natural resources

EnergyProduction
Operation

OUTPUT
Emissions to air
Emissions to water
Solid waste
Products

Disposal(Earth) Impact on the environment

DNP’s Involvement in LCA
The LCA Japan Forum started an award to commend
useful and practical LCA activities in fiscal year 2004.
There were numerous contestants from a wide rangeof fields for the first award. As we are in an age wherecontrol and disclosure of environmental information isrequired during product development and marketing,each company must attend to the total life cycle of the

product when considering comprehensive environmental information. In the future, it will be important foreach and every individual, who is involved in providing
products, to be conscious of the environment and carryout corporate activities by gauging this consciousness
into a vector.

Framework of Life Cycle Assessment (ISO14040)

Establishing objectives and dimensions

Result analysis

Inventory analysis

Applications

Assessing the effects on the environment

Received the 1st LCA Japan Forum Incentive AwardLCA Japan Forum commendation (sponsor: Life
Cycle Assesment Society of Japan, secretariat: Japan
Environmental Management Association for Industry) isawarded for contributions made in the research and development, popularization, and expansion of LCA methods.
DNP received the first commendation as an incentive
award for its “development of an environment-friendly
beverage bottling system and PET bottles.” DNP received
high acclaim for its involvement and hard work in LCA.

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DNP GROUP CSR REPORT 2005

• Product development and improvement• Strategic planning• Shaping of policy• Marketingand suchInvolvement in LCA

Packaging
Case Examples of LCA Applications
Through an LCI analysis, ranging from the extraction
to the disposal (including recycling) of primary natural
resources, of PET bottles produced through the aseptic filling system for PET bottles (DN-APP System)
developed by DNP, it has been found that this system
reduces the environmental load compared to former
bottling systems. Since the aseptic filling system for
PET bottling system does not require heat resistanceduring the bottling process, the bottles can be lighter inweight and shipped in compact pre-formed conditions*just before the bottling process. This allows for energy
conservation and a great reduction in the amounts ofgreenhouse gas (CO2 ). This system has received highacclaim for the role they play in reducing the overall
environmental impact.
Although it is generally thought that recycling PET
bottles increases the impact on the environment, theamount of energy conserved and the amount of pollutants released into the air were reduced in fiscal years

2000 and 2001 with the enactment of the Containers
and Packaging Recycling Law in 2000.
By adapting the LCI analysis, we will continue toactively promote the development of easily recyclable
environment-friendly containers in the future.

Involvement in LCA ResearchPre-forms

We participated in and submitted our LCI data to“The Study Group on the Life Cycle Assessment ofContainers and Packaging – A LCA Study on BeverageContainers,” a 3-year project commissioned by the
Ministry of the Environment beginning in fiscal year
2002, conducted by the Institute for Policy Sciences.
We are also examining whether the Life-cycle
Impact Assessment Method Based on Endpoint
Modeling (LIME) developed by the LCA ResearchCenter of the National Institute of Advanced Industrial
Science and Technology is suitable for LCA packaging.
We announced the results of the LIME assessment using the DNP LCI data on beverage containers at the
6th International Conference on Eco Balance held in
October 2004, where they were well received.
In the future we will continue our active involvement
and cooperation in LCA research, whether within or
outside our company.

*Pre-forms
These bottles are test tube
PET bottles in master form
prior to bottle shaping thatare blow-molded into theoriginal shape. Providing PET
bottles in this form provides
significant reduction of energy consumed for shipping.

PET bottle beverages produced by our aseptic filling system

Industrial Supplies
Applying the knowledge obtained through LCI analysis, our Information Media Operations is in the processof acquiring the Type III Eco-Label, an information-type
environment label certification, from the Environment
Product Declarations (EPD), regarding dye-sublimation transfer materials.
Eco-labels have been created as a measurement

tool to be used by consumers when selecting environmentally-conscious products and services. Among thelabels, Type III quantitatively assesses the environmental effects of a product throughout its life cycle,
ranging from when natural resources are removed, tothe production, operation, recycling, and disposal ofthe materials and its parts.

Dye-sublimationtransfer materials

Card printed using
Dye-sublimationtransfer materials

It is important that each and every individual is conscious about the environment.
The LCA Japan Forum started an award to commend useful and practical LCA activities in fiscal year 2004. There werenumerous contestants from a wide range of fields for the first award. As we are in an age where control and disclosureof environmental information is required during product development and marketing, each company must attend to
the total life cycle of the product when considering comprehensive environmental information. In the future, it will be
important for each and every individual, who is involved in providing products, to be conscious of the environment andto carry out corporate activities by gauging this consciousness into a vector.
Ryosuke Aoki

Japan Environmental Management Association for Industry
DNP GROUP CSR REPORT 200530

Economic
performance

Keeping in mind manufacturing products with easy-to-use designs

Products that are user-friendly, safe, comfortable, and convenient are in great demand. DNP develops
products not only from a manufacturer’s perspective, but also from the user’s point of view.

Definition of Universal Design
Universal design, a concept that was advocated in the
United States in 1995, denotes “the designing of products, buildings, and environments that can be used byas many people as possible, and that the designs must
not require any changes or special specifications.” This
concept is made up of the following seven principles:
1) Fair use by all2) Flexibility in use
3) Easy-to-use using basic intuition
4) Built-in visual information
5) Toleration for errors
6) Low degree of physical burden7) Ample size and space provided for easy accessand use.

In Japan with the aging society, there are an increasing
number of companies that are adopting this concept ofuniversal design in their product development.

Involvement of the DNP Group in Universal Design
DNP has been applying universal design in packaging
design guidelines called “USE FULL®” since 2000 withthe “U” standing for universal design. In order to incorporate the ideas of universal design into the designand development of packaging, we have been aiming

at creating packages that are always welcomed by ourconsumers by providing and improving the usabilityof products and creating products which are easy tounderstand.

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

Five UD Principles
Principle 1) Provide useful information in an easily understood way
User information, such as expiry dates and ingredients, is in simple language and is expressed withappropriate and easy-to-understand features such as color, letter size, layout, and embossing.
Examples: packages with easy-to-understand opening designs, Braille using embossing techniques, illustrations using pictograms and other similar expressions.

Principle 2) Simple and direct usefulness
Products can be used properly without being influenced by factors such as experience, knowledge, or visibility.Examples: packages with openings big enough to grasp with your fingers,
packages that are easy to hold, and packages that can be distinguished by its shape.

Principle 3) Flexibility and safety in use
Offers consumers choice in use and has a safety-oriented design for users.
Examples: packages that do not easily transmit heat, packages made of materials that easy on thehands, and packages that are easy to store.
External viewPrinciple 4) Appropriate weight and size
Products that have a certain degree of freedom in choice with a variation of size and volume forcarrying, storage, and so forth.
Examples: package sizes according to use, packages that can be repacked into smaller portions,
importance given to mobility by being lightweight and compact.

Principle 5) Usable without excessive force or movement
Can be handled with minimum strength and without resorting to unnatural postures or movements
Examples: Packages that can be opened from either side, easy-to pour bottles, and products
placed in easy-to-remove packages.
Option 1) Products with attractive shapes and expressions
The overall package is appealing and has pleasant designs and shapes.
Option 2) Easy to separate and discard
Products with shapes and structures that is easy to dispose and separate for garbage collection.

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DNP GROUP CSR REPORT 2005

Sectional view

Involvement in Universal Design

About Package Usability
In recent years, the need of user-friendly products including universal designs has been growing and thedevelopment of package usability has become a major
issue. Therefore, to promote modern package development, where usability is now known as one of the
product qualities, it is important to provide specialized
solutions containing ergonomic and cognitive features
when using the products.
With the cooperation of ergonomics specialists,
DNP has begun analyzing “usability” from the viewpointof the consumer, and has begun applying usability to
our product design. Since the end of fiscal year 2002,
while verifying the usability of existing products andusing that usability to improve those products, we havebeen promoting usability in our product packaging.
DNP’s package usability is an independent package
development program that logically solves the various problems of usability by applying ideas of usability
engineering, which is a general engineering theory, topackage development. Our package development program involves field tests, which help to understand theactual use of our packages, and usability tests, which
are verification experiments for ease-of-use. We haveapplied the results of these tests into our customer’s
wish list.

Working with Lion Corporation“Sawatte Wakaru Tooth Brushing Book” (Book about tooth-brushing for the visually impaired)– universal design on human health
DNP and Lion Corporation jointly published Sawatte Wakaru Hamigaki no Hon (Book about Tooth-brushing for the Visually
Impaired) – which applies universal design to human heath through the use of braille and embossed illustrations on November
8, 2004, a day known as “Good Teeth Day.” Embossed illustrations are 3-dimensional pictures or illustrations using clear plastic
to enable the visually impaired to feel the pictures and illustrations through their sense of touch. All letterings are printed in enlarged characters and in braille, while the illustrations are embossed. In addition, we
have been careful to utilize sharp color schemes to make it easier for people to see the color.
This book was created by applying Lion Corporation’s expertise in barrier-free information, which thecompany has been promoting as a part of its social action programs, along with DNP’s experience inincorporating universal design in product development. We have donated 500 copies to schools for thevisually impaired, braille libraries, and rehabilitation facilities throughout Japan. As we received a goodnumber of positive feedback, we released a follow-up publication in step with Dental Health Week, whichbegan on June 4, 2005.

Proposing easy-to-use packaging from a consumer’s point of view
Activities at the Integrated Packaging Development Center
The UD Planning Office was inaugurated on April 1, 2005 to provide easy-to-use packages from the viewpoint ofconsumer, by adeptly incorporating the ideas of universal design. By being observant in every aspect of everyday life,
we hope to come up with universally accepted package ideas during our brain-storming sessions. I believe that every
member of our staff should be involved in universal design as it is an inevitable part of packaging. I also believe that it
is important to be able to enlighten ourselves by applying universal design to our daily assignments.
Haruko Furuta

General Manager
Planning Division UD Planning Department
Integrated Packaging Development Center

The development of UD is a means of CSR

Our association, in which DNP provides a board member and serves as a director-company, is engaged in activities topopularize and realize universal design (UD). We are fully aware that UD is one of the corporate social responsibilities(CSR) of all corporations. While expressing our deep respect to DNP for promoting UD from the viewpoint of CSR, wefirmly believe that the incorporation of UD will contribute to expanding the number of users and will raise the satisfactionlevel among customers, which will ultimately result in an increase in brand value.
Mitsuo Kawaguchi

Chairman of the Board of Directors
International Association for Universal Design

DNP GROUP CSR REPORT 2005

32

Economic
performance

Taking Environmental and Social Consideration into the Purchasing of Raw Materials

To provide secure and safe products and services that are beneficial to a society, it is vital to have soundmanagement, not only during our business processes, but also our suppliers’ manufacturing process.
DNP has established a basic purchasing policy for raw materials and then has been carrying out thepolicy for purchases.

Basic Purchasing Policy
In order to promote fair andopen business transactions
with our suppliers, DNP has
formulated a basic purchasing
policy to which our purchasing headquarters thoroughly
adheres. Moreover, we havedisclosed this policy to all of
our suppliers by posting it on
our website in 1999.

Basic Purchasing Policy
Fair Business Transactions
In choosing suppliers, we follow fair competitive principles based on comprehensive judgment encompassing quality, price advantage, assuring delivery,
after-sale services, reliability, and technical capabilities.

Equal Opportunity
As regards to procurement, we believe in being positive in purchasing materials that meet our financial- and quality-related criteria, without adhering toour existing suppliers regardless of whether a supplier is based in Japan orabroad.

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

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

Green Purchasing
As indicated in the Green
Purchasing Policy of ourPurchasing Division (below),green purchasing means topurchase products with due
consideration paid to theenvironment. DNP actively
promotes green purchasing
as a means to reduce theenvironmental impact presented by businesses ingeneral, and to contribute in
reducing the environmental
impact of products that DNP
provides to its customers.

Green Purchasing Policy of the Purchasing Division
In procuring materials and paper, and purchasing materials for constructionand equipment, the Purchasing Division cooperates with related divisions topromote activities based on our policy as stated below, fulfilling the importantrole of green purchasing to shape the market for environmentally-conscious
products, and with an awareness that green purchasing is an extremely effective means of building a sustainable society.
1. We give due consideration to the following requisites in the procurement ofmaterials:(1) Materials that are harmful to the environment or to human health are notincluded(2) Minimal consumption of natural resources and energy(3) Use of materials that have sustainable resources(4) Use of materials that have a longer life and are more reusable than theirpredecessors(5) That many recycled materials and reused parts are used
(6) Use of disposable materials
2. We give priority to businesses that take an active involvement in environmental
conservation, in procuring materials and paper, and purchasing materials forconstruction and equipment.
3. In addition to placing priority on purchasing products with the Eco-mark whenchoosing our office supplies and equipment, we make our choices based on
guidelines established by the Green Purchasing Network. We comply with theabove item (a) for products without the Eco-mark or that do not adhere to the
Network’s guidelines.

* See p. 76 for our targets and past record in green purchasing.

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DNP GROUP CSR REPORT 2005

Purchasing Activities

CSR Survey
Since 2004 we have conducted a CSR survey on some
60 suppliers in Japan and abroad, from whom DNP
obtains main products which include printing paper,
packages and film for industrial use.
This survey includes questions regarding consideration to the environment, the “elimination of sexual andracial discrimination, discrimination of the disabled,and due consideration for disadvantaged members ofsociety, at workplaces and among our affiliated companies both in Japan and abroad” and “formulating
policies to engage in activities to support society, withan aim at social coexistence.”
Through this survey, which includes some of theitems used in evaluating suppliers (price, quality, technology, provision of information, environment, social
responsibility) and depending on the questionnaire
results, we have conducted training sessions or haveasked suppliers for improvement. All of our suppliers
are cooperative in involving themselves with our CSR
as it is designed to fulfill our CSR. In the future we plan
to conduct this survey with all our suppliers.

Management of Chemical Substances
As part of its overall activities for improving the safetyof its products, DNP conducts studies on chemical substances, including raw materials, and manages those
substances that are included in DNP products.
Between the spring and fall of 2004, we conducteda study (certificate of the nonuse of substances andsurvey sheets on substances contained in products)
regarding the amount of substances contained in the
products that we purchase from suppliers of raw materials (approximately 2,600 companies) and completed
a database of some 23,000 brands in all areas whichcontain substances.

• Management System
Each time that the need arises for us to purchasenew chemical substances, we obtain reports from our
suppliers through survey sheets. When setting up an

account with new suppliers, we explain to them thegist of our survey on products containing chemicals
and request that they submit a survey sheet regarding the product or products that they will be supplying
to us.

• Covered in the Survey
Materials comprising DNP products: paper, plastic,
metal, glass, ink, enamel, liniment, glue, packing materials, and other such materials.
Components: electrical cords, semiconductors,
and other such components.
Materials, including those used in manufacturing
processes: solvents, plate-making materials, press
plate materials, cleaning agents, and other suchmaterials.
* See p. 74 for our overall chemical management process

Concluding Basic Contracts with Suppliers
We have concluded contracts with approximately
2,600 suppliers with which our Purchasing Divisiondeals with.
The contracts include sections regarding environmental conservation, the provision of information on
the nature of chemical substances and the handling of
those substances, compliance, confidentiality clause,and responsibilities regarding manufactured products.
As a condition for entering into a business relationshipwith our company, suppliers are required to abide by
the terms of the contract. We draw up contacts in the
English language for foreign suppliers in promoting theconclusion of those contracts.

Training of Staff Members in the Purchasing Division
Our Purchasing Division holds periodic training courses twice a year in corporate ethics and compliance. In
2004 the division held training courses in August andDecember, mostly for department managers and groupleaders. Upon returning to their posts, the managers
and group leaders in turn conducted training courses
with the people on their respective staffs. They thoroughly train their people in information managementby conducting training on protecting personal information security.

In addition, in order to continue to perform suitablepurchasing activities, the division also conducts voluntary inspections twice a year.
In 2004, voluntary inspections for ensuring the appropriate value of business indexes, which apply tothe entire company (i.e. inventory standards), andvoluntary inspections on activity processes based on
activity checklists created by the Purchasing Divisionwere held in February and August respectively.

Transmission of Information
In case there are changes in regulations such as in the Food Sanitation Law, or in case there are any case examples
or accidents regarding food sanitation, our division promptly gathers relevant information, checks the safety of any raw
materials thereof and contacts other operations within the company.

DNP GROUP CSR REPORT 2005

34

Economic
performance

IR Activities

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

Disclosure Policy

In addition to more than 300 individual
meetings a year, we also hold factory
tours and strategic technology seminars for our businesses and productswith high interests among our shareholders and investors.
We compliment this informationby producing annual reports in both
English and Japanese.

(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 tothe timely disclosure rules, as long as we believe that the information isconsidered necessary and helpful to shareholders and investors to promote further understanding of our company.

Sending Information Overseas(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 thoserules through TDNet (a system for the timely disclosure of information
provided by the Tokyo Stock Exchange) and to the press. At the sametime we post this information in a timely manner on our website. We also
provide information considered useful in enhancing the understandingof our company by posting this information on our website and/or thepress websites.

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

Policy on Disclosure of Information(3) Period of Silence

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:

Before the announcement of our financial statements, we have a “period of silence,” during which we refrain from responding to comments
and inquiries regarding settlement, in order to ensure fairness. However,even during a period of silence, we promptly disclose any informationthat would incur major changes in our business results. Furthermore,
we will respond to any questions regarding information that has alreadybeen disclosed.

Share Information (as of March 31, 2005)• Total number of share issue : 750,480,693 shares• Shareholders at term-end : 32,437 shareholders
Distribution according to
number of shares held

1.68% 0.19%
2.70%
6.14%

Financial institutions

1,000,000 shares or more
100,000 shares or more

Distribution according to
number of shares held

14.66%

1,000 shares or more

Overseas investors
74.63%

Individuals

50,000 shares or more

Own shares

Under 1,000 shares

Brokerage firms

Socially Responsible Investment (SRI)
Socially Responsible Investment (SRI) is an investment in corporations thatpractices sustainability and takes seriously involvement in CSR. DNP is incorporated in the FTSE 4 Good and Ethibel Sustainability Index, which are overseas
SRI Indexes. In addition, we are included in a number of SRI funds in Japan.

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DNP GROUP CSR REPORT 2005

1.24%

10.70%
37.67%

12.08%

Other domestic corporations

10,000 shares or more

FTSE 4 Good: http://www.ftse.com/ftse4good/index.jsp
ETHIBEL: http://www.ethibel.org/

4.62%

33.69%

Social performance

DNP adheres to being a reputable company.
It is natural for each and every one of ouremployees in the DNP Group, which isapproximately 35,000, to respect one anotherand act according to the law and social ethics,
in a climate where they can demonstrate
their own strengths and abilities. In a world
where new values and cultures are created byindividual and social interactions, there is avigorous and affluent society waiting before
us. It is our fervent hope to move forward
together with society as a conscientious
corporate citizen.

DNP GROUP CSR REPORT 200536

Socialperformance

The DNP Group Acts According to Laws and Social Ethics

In 1992 we set up the Corporate Ethics Committee. Subsequently, through various types of training sessions
and formulating a Corporate Pledge and Rules of Employee Behavior, we entrenched and infiltrated our
corporate ethics policies for our employees.

One of the business policies held by DNP is to act asa reputable company. “Reputable,” in this case, does
not only entail the narrow concepts of honesty andfrankness, but also means high-integrity management,
including self-supervision, a sense of responsibility, moral health, faithfulness to principles, and a firm
sense of purpose. This act aims to build an organization
firmly founded on self-supervision with a high sense of
purpose and sense of responsibility. We believe thatan organization which is firmly rooted in such ethicalconstitutions can obtain the trust of society, and canbuild an open atmosphere in the company overflowing
with vitality in its entirety.
For each employee fully understanding the importance of virtuosity, DNP has established the DNPGroup Action Charter and DNP Group Employee Action
Standards, to enable our employees to perform to theirutmost abilities in their daily activities and is involvedin entrenching the corporate philosophy throughout thewhole company.

System of Implementation
In 1992 we set up the Corporate Ethics Committee.
The Committee at headquarters holds regular monthly
meetings with committee members who are in chargeof departments at our headquarters. Action policies
for corporate ethics and the necessary follow-up thatis performed are discussed and decided on during
these meetings. In addition, as organizations for theestablishment and implementation of corporate ethics
and related infiltration activities, we have also set up

Corporate Ethics Committees in each of our operations
within all of our Group companies, with the generalmanagers of operations and presidents of Group companies serving as the chairmen of those committees.
Each of these committees carries out independent
activities. Regarding important issues on the environment and information security, we have establishedindividual and separate implementation committees toaddress and practice those issues.

Corporate Ethics Committee“���������������
Open Door Room”

Corporate Ethics Committee at
Each Department at Headquarters

Corporate Ethics Committee at
Each Operations Unit

Corporate Ethics Committee at
Each Group Company

Environmental Committee
Product Safety Committee
Information Security Committee

Complaint Handling Committee
Central Disaster Prevention Council

DNP’s Efforts in Corporate Ethics

Through the strong leadership of top management, DNP has incorporated ethic-compliance activities throughout its
company and businesses, based on the PDCA cycle. Having won this year’s Reputable Company Award, DNP’s activities have been more highly acclaimed than in the past. In the future, we consider it desirable to be more aggressive andopen in monitoring our important stakeholders, and to transform our corporate competitiveness by committing to ourinvolvement in compliance to society.

One Akiyama
President
Integrex Inc.

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DNP GROUP CSR REPORT 2005

Compliance with Laws and Ethics

In order to make ethical corporate practices a reality,each individual employee must be made sufficiently
aware of the importance of ethical corporate practices,and must maintain this awareness in all parts of theireveryday activities.
To entrench corporate ethics in our employees, inaddition to our continuous and arduous efforts to appreciate their importance, we believe it is important toincorporate the systems and structures into the management structure to prevent any regression. Below
are some of the outlines of our efforts.

Systematization of Corporate Ethics Training
Number of Sessions held in 2004
(Number of Attendants)

Specific Training for
Organizational Units(Autonomous Corporate
Ethics Training Sessions)

156 times(4,522 attendants)

Regular Training
According to Stage of
Employment

For new recruiters: 3 times(364 attendants)
For new managers: 12 times(471 attendants)
For divisional managers: once
(77 attendants)

Seminars Conducted byVisiting Supervisors from
Headquarters

Description of Training

As it is necessary to tailor the content of corporate ethics training to the particular characteristics of each unit, so that employees can see how corporate
ethics issues are applicable to their work, we started self-directed ethics
training at all organizations since November 2003. Under this system, we havethe top manager at each unit, such as Directors in Charge, act as instructors toenable them to provide their subordinates with direct guidelines and solutions
for the main challenges facing their units.

We ensure that employees receive step-by-step corporate ethics training by
creating a corporate ethics curriculum in which training sessions are offeredat the various stages of employment, such as upon entry into the company,
after appointment to the officer level and other such stages. This solution wasincorporated to promote further awareness in the importance of corporate
ethics.
This is a seminar held, if required, by supervisors working in our Headquarters.
They will talk on important themes to provide backup for the specific training
sessions held as regular training sessions by each organizational unit and for
employees in different stages.

Management(1) Corporate Ethics Committee
Held 12 times per year (once a month)(2) Management by Objective System
The DNP Group has incorporated elements ofcorporate ethics in its management by objective
system. Through meetings between supervisors
and their subordinates, during which each employee sets action targets and reviews the results of
those actions a half-year later, we confirm that eachand every employee is acting in an ethical way.
(3) Self-inspection for compliance
In order to establish a corporate culture of legal
and regulatory compliance, we expect every unit of
our organization to have the courage to voluntarily
check its business operations relative to existinglaws and regulations in order to be sure it is not
guilty of any infringements, and to take swift corrective measures if necessary.
DNP’s Corporate Ethics Committee has encouraged every business divisions to perform thiskind of voluntary check twice a year, based on achecklist prepared by the sections in charge, and to
make improvements as necessary. Each section in
charge compiles the results of these reviews relative
to various themes, and the Headquarters Corporate

Ethics Committee ties these together and promptly
reflects the results in companywide policies.
In addition, we have adopted a system that wecall a priority execution plan. Rather than having all
business divisions address a single set of issues
with the same degree of urgency, we get better
results by having each division assign priority levels to issues according to the division’s particular
circumstances.
(4) Compliance Evaluation System
Establishing corporate ethics and realizing the infiltration of those ethics is based on the voluntary andproactive functioning of management in each of thedivisions. But it is also important to apply the results
thereof to strengthen the entire company, rather
than allow them to be used separately. Believingthat for this purpose a system (yardstick) is neededfor objectively evaluating the results achieved byeach of the divisions, we have decided to pursue
solutions to problems to which priority must be given
throughout our entire group, and have accordingly
introduced a system by which top management at
corporate headquarters may empirically evaluate
the degree of progress achieved semi-annually by
the divisions vis-à-vis their specific problems.

“Open Door Room”
DNP Group employees can take their problems andquestions related to corporate ethics to the Corporate
Ethics Committee, where a full-time staff member
handles such issues promptly. We augmented ourconsulting framework by establishing the Open Door
Room, a place employees can turn to when it is difficult

to consult a supervisor or coworkers. We take greatcare to protect the anonymity of employees who use
the Open Door Room and preserve the secrecy of theirconsultations, so that they will not suffer any negative
consequences in their workplace.

DNP GROUP CSR REPORT 200538

Socialperformance

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 Code of Conduct for DNP Group Employees”
clearly stipulates the basic policy against discrimination towards job applicants or employees in any aspectof our business, including job offers, employment andpromotions, as regards matters as gender, age, nationality, race, ethnicity, beliefs, language, religion, social
status, and disabilities.

Personnel and Employment Guideline
Our goal is for each of our employees to be an independently functioning professional with a sense of responsibility andself-confidence. They shall strive to develop and achieve self-realization so as to face challenges positively and resolutely.
The company will seek to provide an environment and organization that will support the development and self-realizationof individual employees, and will nurture an emergently evolving structural climate and culture that will allow each of ouremployees to display to the fullest their abilities as professionals.

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 essential for the employees
to be able to engage in free and vigorous dialogue. Dialogue
does not stop at “conversations” and “sharing information”,

but rather includes mutual discussion about solving problems
and issues that occur on a daily basis. As an example of placing special importance on dialogue, our company eliminatedthe “officer system” that is associated with hierarchy in 2002,
so as to allow our employees to make progress in evolving
emergently together through dialogue.

Actual Measurs and Policies to Become an Independently Functioning Professional

Self-Reporting System

Persuasiveness of evaluation,
confirmation of achieved target level

Persuasiveness of treatment,
confirmation of “level enhancement” target

Confirmation of career,confirmation of personal information

Independently functioning professional

Rating System

Sharing of goals, sufficient guidance,“level enhancement”

Leader support/guidanceEach person’s efforts and self-enlightenment

Personnel Ability Rating

Fulfillment and continuation of dialogue

Goal Management

Each person’s “career enhancement”/“level enhancement”
Training System/Self-Enlightenment Support

DNP (Non-consolidated)(as of the end of March 2005)

Number of executive officers

Male: 35 persons

Female: None

Total: 35 persons *Number of employees

Male: 7,768 persons

Female: 1,245 persons

Total: 9,013 persons

Number of employees (consolidated)

Male: 29,581 persons

Female: 5,358 persons

Total: 34,939 persons

Executive officers at overseas Group companies (consolidated)

Local: 33 persons

Japan: 84 persons

Total: 117 persons

Average age

Male: 37.2 years old

Female: 29.2 years old

Aggregate: 36.1 years old

Average number of years continuously employed

Male: 14.6 years

Female: 8.1 years

Overall: 13.7 years* This number was reduced to 26 persons due to a change in administrative organization in June 2005.

39

DNP GROUP CSR REPORT 2005

Relationship with Employees

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 internshipprograms.
Type of Hiring

Content

Results

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 ourcompany.

2004 new hires (as a unit)
Regular employees: 100 persons(70 males, 30 females)
Technical staff: 155 persons(110 males, 45 females)

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.

2004 mid-career hires (as a unit): 48
persons

Internships(arranged jointly withGroup companies)

In response to requests from schools and students seeking experiencein the working world, we provide students with opportunities to gain
work experience. These opportunities do not necessarily lead to regular
employment.

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

Nurturing human resources into independently functioning professionals
Personnel Development Diagram

The 21st Century Vision
Management Concept

Business Vision/Activity Guidelines

Personnel consisting of independently
Functioning Professionals able tocooperate and work

Personnel Development Vision

Training system/Organization
Operations/Group Companies

On-the-job
training

External
seminars

Group training/
Practical training

Personnel/Organization/System

Training sessions heldat our Headquarters

Group training
Network learning

Networktraining

Self-Reporting System
Education
through
outplacement
or transfer

Training
at new post
Training forfield officetransferees

In-house Recruiting System
In-house Venture System

System for Encouraging
Qualification Acquisition
Independently Functioning
Professional

Independently Functioning Professional

Independentand cooperative
professionals

Realizing a vision
for the 21st century

DNP GROUP CSR REPORT 200540

Socialperformance(1) 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, andexpand his or her own field of work.
In order to support these efforts by individual emSystemployees, we have established personnel systems thatallow 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.

Description

Results

In-house recruiting system

We advertise positions requiring specialized knowledge and positions in
new businesses or new product development. Anyone with ability, experi- As of March 2005,
ence, and the desire to be challenged is free to apply. Discovery of talented 244 persons have been transferred
employees and realization of their potential.

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 the person who proposed the idea for
a new company to be its president.

April 2002: CP Design Consulting Co., Ltd.
Sept. 2003: M’s Communicate Co., Ltd.
Sept. 2004: At Table Co., Ltd.
Jan. 2005: Mobile Impulse Co., Ltd.

In-house apprentice ship
systemIn order to improve skills related to their position, employees may work as
an apprentice in a different section for a limited term, and then return totheir original job.

This system was adopted as a result of asuggestion that emerged from employee
training.
2004: 2 persons

Certification support programThis program pays incentives to employees who acquire specialized
knowledge, skills, or certifications needed for their job (covers about 90
types of certification, up to 100,000 yen).

Increased the number of employees whoare certified for specialized knowledge orskills related to IT or other areas pertinent
to their work
2004: 104 persons

Mastership recognition
program

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

A total of 44 persons recognized as ofMarch 2005

Special skills recognition
program

Employees with advanced specialties, whose talents are recognizedparticularly widely both inside the company and outside, receive special
compensation.

As of March 2005, 12 persons had beenrecognized

Ranking and salary

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

Introducing evaluation based on “roles”
and “performance” into monthly salaries.
Bonuses are paid based on “employee assessment” and “uniformity in ranking.”

At regular intervals, employees sit down with their supervisors to set
Evaluation / compensation
Expanded the scope of application tosystems (management by objective future performance targets and evaluate past performance. Employees andsystem, etc.)

supervisors increase mutual understanding through discussion and counseling. Evaluation results are directly reflected in salaries and bonuses.

almost all employees

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 haverelated to their life plans. When the company and the employee agree,
steps are taken to realize the employee’s wishes.

2004: 334 persons participated in selfreport interviews; 24 of them changed
positionsAward system

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

2004:
For job performance(special annual award):

34 awards

For achievement of goals(special annual award):

30 awards

Employees who received award
for years of service:
302 persons

Mr. Ueda, President, At Table Co.,
Ltd. (left) and Mr. Sawai, President,
Mobile Impulse Co., Ltd. (right)
Both companies started up asa result of the in-house venturesystem.
Award presentation

41

DNP GROUP CSR REPORT 2005

Relationship with Employees(2) 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 theability to collaborate smoothly with others inside andoutside the company.
The company supports employees’ career designs
by arranging practical and diverse training programs
that offer basic or specialized knowledge required invarious fields, as well as development ofpeople skills, conceptual skills, etc.
For managers and leaders, we also
have practical training courses to deepen
the understanding of career development,
and to enhance communication and corroboration skills, as well as to help the
managers and leaders to bring the bestout from their staff.
DNP Hakone Training Center

Major Training Programs
Training for Division Managers
CourseContents

Attended by

Management training

In addition to the vision and basic strategies, participants learn basic methods andAll senior management, starting fromtechnical skills for formulating strategy.
the rank of divisional manager
For 6 months (10 group training sessions, and self-study using training materials)

Advanced management
training

Drawing up action reform plans, through multi-faceted evaluation, on competence,
All departmental and divisional
workplace climate, and an understanding of special aspects of management
managers
For 6 months (group training, and workout meetings)
For all employees being promoted toTraining for managers enter- First part: 2 day group training session to acquire basic leadership knowledge
leadership positions
Second part: 5 month-training including 3 group training sessions and team study
Approximately 500 persons per year
ing leadership positions
to receive advice regarding measures for realizing leadership visions
Specialized Training for Sales, Planning and Engineering Divisions
CourseContents
Solution businesstraining

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)

Attended by
Employees of sales and planning divisions, and their managers
Approximately 200 persons per year
Employees in charge of service andsolution divisions for new products
Approximately 30 persons per year
(Inaugurated in 2004)

Training to
improve planning skills

Participants learn planning skills for P&I solutions.
For 6 months (6 group training sessions and individual research studies)Group leaders and managers in theplanning division
Approximately 20 persons per year
(Inaugurated in 2004)

Technical seminars(Specialized courses)

In addition to specialized knowledge, participants acquire knowledge on production systems, cost management, marketing, law, human skills, etc.
Approximately 50 sessions per year (Optional selection of courses)

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

Training in Manufacturing Activities
CourseContents

Practical training for
To draw up action plans to promote manufacturing 21 actions, and to draw up acmanagers in the engineering tion plans for solving problems and putting those plans into practiceFor 8 months (6 group training sessions and 3 training camp sessions)department
IE experts training
Other Training
CourseNetwork learningThis 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)

Contents
These on-lines 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
to environmental change. (30 courses)

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

Sign language course

Correspondence courses

Attended by
For managers in the production engineering division(Inaugurated in 2004)
Technical staff
Approximately 80 persons per year
(Inaugurated in 2004)

Attended byParticipants choose each individual
course (guest participants are also
allowed)Total of 40,000 persons per year
People who have indicated they would likethese classes because their job either currently requires those language skills or will
require them in the future 2 signup periods
per year(180 persons signed up per period)

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
10 persons per classParticipants 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 these courses 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.
Courses beginning in June 2004: 1,249 persons
Courses beginning in December 2004: 522
persons
Total: 1,771 persons

DNP GROUP CSR REPORT 200542

Socialperformance

Free, Open, and Pleasant Working Environments(1) Respecting Diversity
We believe that in order to contribute to society by realizing a free, open, and dynamic corporate culture, it isimportant that all employees respect each other and* Normalization:
The concept that society
should be such that people with disabilities can beas active as other people
in society.

help create a pleasant working environment. Toward
this end, we think it is important for everyone to realize their potential and to do their best without worrying
about gender, age, or disabilities.

SystemDescription

Hiring people withdisabilities

We achieved the legally mandated ratio of disability employment, based on
the premise that people with disabilities should be able to function normallyin society. We educate workplace leaders 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

2004:
disabled employee rate 1.84%

Hiring seniors

Employees who want to continue working as seasoned professionals after
reaching their mandatory retirement age may be hired as “senior staff.”2004:
about 60% of eligible employeeschose to work as senior staff

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

From June 2003 to March 2005:
1,572 managers participated in training to support women’s careers(2) 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 for self-development

System

Employment system

Leave system

Childcare leave

Family nursing care leave

Results

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 healthand that of their families.

Description

Results

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

Applied to over 75% of our employees
overall (DNP alone)

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

2004:
Percentage of employees who took
an annual paid leave: 32% (for ourcompany alone)• 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 thechildcare leave period.
*Revised April 2005

• Up to 366 days per eligible family member; no limit on the number of times

2004:
71 employees took leave under thissystem2004:
two employees took leave under thissystem*Revised April 200543

DNP GROUP CSR REPORT 2005

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

2004:
The office handled 972 cases

Life Plan Consulting Center

Provides information about pensions, employment insurance, motivation forliving, lifelong education, etc. to assist individuals with planning for life after
retirement

2004: 1,330 consultations

Relationship with Employees

SystemDescription

Results
Distribution of design books to 45-year-olds
Preparation guidance for 55-year-olds

Life planning promotion
systemJoint labor-management programs, such as distribution ofmagazines and holding seminars

Briefing sessions are held regarding public pensions andemployment insurance for people of the ages of 58 and 59.
2004:
929 persons attended guidance and briefing sessions

Career counseling center

Mutual relief association

Provides counseling and guidance regarding careerdevelopment

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

2004: 138 persons used the center

Congratulatory or condolence benefit packages, various loans,and scholarships (tuition and annual support) and other activities
jointly run within the Group.
2004:

Congratulatory or condolence benefit: 6,940 cases
Loans: 86 cases
Children’s scholarships (student grants and pension): 35 cases“Health examination management system” on the Intranet
Health management system makes it possible to access one’s own health examination
results, including past results, via a personal computer.

January to December 2004
Percentage of people who underwent general medical
examinations: 98.8%
Percentage of people who underwent special medical
examinations: 99.7%

Clinics

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

2004: 82,560 persons visited the clinics

Smoking measures

Smoking measures conducted based on the Group Guidelineat each worksite to prevent non-smokers from secondhand
smoke.

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

Consultation system for employees and their families toprovide advice from medical specialists about diseaseor medical therapy. It also provides support for healthmaintenance through 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 5,153 cases

Health consultation officeTelephone health consultation
Mental health consultation officeNutrition consultation;
exercise consultation

Comprehensive medical
examination facilities (clinics)

Mental Health
Guidebook

Second Life Design Book
Fliers and stickers regarding
Telephone Health Consultation“Work environment conducive to work” is the source of eagerness to work
One of the topics taken up by our labor union is “creating a safe and pleasant work environment.” In order to achieve
such environment, it is important for the company to have an understanding for promoting improvement in facilities
and their contents. While the labor union and management express their views from their respective positions andviewpoints by taking up the views of people who work at the front line, we can find issues and implement the means for
improvement. We believe that such a “work environment conducive to work,” created through the cooperation of thelabor union and management, is the actual source of employees’ desire to work.
Naoyuki Beppu

ChairmanDai Nippon Printing Labor UnionDNP GROUP CSR REPORT 200544

Socialperformance(3) Creating Healthy and Safe Workplaces
All of our employees want to work in a safe and pleasantenvironment, so we conduct our own health and safety
activities. Our basic policy is to support the creation of
comfortable and pleasant working environments andworking 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.

<Our Labor-Management Committee>
Through joint labor-management cooperation, “Central
Health and Safety Committee” is created at Headquarters.
Each operations and Group companies has the samestructure.

SystemDescription

Results

Creation of guidelines

Management and employees together established theCentral Health and Safety Committee within the head office.
Each operations and Group companies has a similar systemfor discussing and promoting health and safety related
activities. We have also created company-wide standards
and guidelines related to these topics.

<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.

The health and safety committees play a leading role inpromoting activities that are tailored to each workplace,and in improving employees’ skills when necessary toallow the committees to function effectively.

Improving skills

Accident prevention* Industrial accident rate:
the number of employees who
missed work due to a workrelated accident divided by the
total number of hours worked inunits of 1 million hours• Promoted certification of hygiene managers, work
supervisors, chemical substance handlers, etc.
• Increased the number of psychological counselors
to 71 as of March 2004
• Increased the number of special training seminars
for restricted work operations; Jan - Dec 2004: 261
persons received training• Conducted safety and hygiene training for line
managers and new employees; Jan - Dec 2004:
1,407 persons received training

We analyze potential hazards and take steps to prevent accidents involving revolving machinery, which is a major cause
of industrial accidents. Concerning non-stationary and otherhigh-risk operations, we review our operating standards,
practice safe operating procedures, and strive to ensure thatmishaps are never repeated.

2.0[Industrial Accident Rate]

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 2004: Industrial accident rate*: 0.49%

1.80

1.82

1.79

1.77

1.10

1.12

1.06

1.15

0.71

0.59

’99

’00

1.78

1.85

1.5
1.03

1.49

1.0
0.49
0.5
DNP Group

45

DNP GROUP CSR REPORT 2005

Total industry

Total printing industry

0.52

0.57

0.66

’02

’03

0
’01

’04

Relationship with Employees

Secure Working Environment (Disaster Prevention Framework)
DNP has created an earthquake response outline
and a central disaster prevention basic plan, in order
to secure employees’ safety, restore functioning toworkplaces, and support employees’ families and local
residents in the event of a disaster.
We established “Disaster Prevention Councils” inoperations and Group companies at our headquarters
and in outlying areas. In the event of an earthquake,these councils are prepared to automatically begin
functioning as response headquarters.
Six action teams are to take specific disaster prevention measures and earthquake response measures,with each team taking responsibility for human rescue,care of buildings, asset protection, business operations, PR, or community aid. Furthermore, by shoringup the emergency communications network system,
which are disaster airless systems at 29 business sites
in the Kanto area and satellite phone facilities at 42
sites nationwide, we are able to provide prompt andappropriate assistance not only for the business affected by the disaster, but also to regional residents
and businesses.

For further emergency preparation, we conduct
emergency training at our offices and plants.
We conducted comprehensive disaster training
on September 13, with the cooperation of the Tokyo
Fire Department and the Ushigome Fire Station at our
Headquarters in the C&I Building. Training included initial fire extinguishing practice by our own fire brigade to
deal with fires in dining facilities, including restaurants,in the wake of an earthquake, as well as evacuation,
ladder wagon and helicopter rescue, water-pumping,and fire extinguishing practices.

DNP Group Natural Disaster Organization

Permanent
Committees

Management

Coordinate

DNP Group
Central Disaster
Prevention Council

Regional Disaster
Prevention Committee

Action Committee

Ad-hocCommittees

DNP Group

Include Disaster
Response Headquarters

Action Committee

Decision making/Implementation
Disaster Prevention
Committee by Operationsand Group companies

Self-fire department

Action Implementation

Regional Include
Response Headquarters

Include Response
Headquarters by Operationsand Group companies

Action Implementation

Self-fire department

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

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

We have great expectations for DNP regarding its involvement
in disaster prevention.

We have great expectations for the role the DNP Group will partake not only under normal situations, but also in theevent of large scale disasters such as earthquakes. Actually, the DNP Group is consulting with the local administrationand fire stations regarding systems and planning of assistance and cooperation for residents, including rescue activities
in preparation for a major disaster as well as making their plants available as temporary evacuation sites.
In addition to disaster prevention through daily activities including conflagrations, the DNP Group is aiming to improve its abilities to post-disaster measures and is actively setting up their self-fire department. The DNP Group also
conducts training in cooperation with local residents, to spread awareness of fire and disaster prevention, as well as toeducate people regarding these matters. With the cooperation of such businesses and fire stations, I firmly believe that
DNP will play a significant role in mitigating the harm resulting from disaster. With the DNP Group president leading his
entire group in their positive involvement, I speculate that the DNP will be even more instrumental in the creation of asafe and secure city in the future

Shoji Takahashi

Chief of Ushigome Fire Station

DNP GROUP CSR REPORT 200546

Socialperformance

Caring for Culture and Regions as a Part of Society

The DNP Group Corporate Pledge states that “we shall behave as good corporate citizens to deepen our
relationship with the regional society and contribute to society through communication and cultural activities.”
Not only does the DNP Group return profits to society, it also conducts a wide range of activities, based on themotto “activities befitting DNP,” from a broad-ranging perspective.

For the Development of Graphic Arts
We are involved in unique cultural activities based on
our motto “living side by side with our trade”. To contribute to the evolution of art and culture by positioning
reproduction technology, which is the basis of print-

ing, as a new creative technology that contributes tothe evolution of art and culture, we are deepening ourcommunications with society through our support ingraphic art.

ggg (Ginza Graphic Gallery)
ggg exhibits creative works by individuals and groups, from Japan andabroad, with a focus on graphic design and printing. The gallery also
holds lectures and presentations by artists.
(1st Floor, DNP Ginza Building, 7-7-2 Ginza, Chuo-ku, Tokyo)

Established: 1986
Total number of visitors: 680,000 persons
th

ggg’s 229 Exhibition “Chermayeff & Geismar Inc.”©Photo by Mitsumasa Fujitsuka

ddd Gallery
Located in the Kansai district, ddd Gallery specializes in graphic design.
It mainly hosts exhibits of spirited graphic designers from overseas.
(1F, Dojima AXIS Bldg., 2-28, Dojimahama 2-chome, Kita-ku, Osaka)

Established: 1991
Total number of visitors: 196,000 personsth

ddd Gallery’s 140 “05 TDC Exhibit”

CCGA (Center for Contemporary Graphic Art)
CCGA is the home of the Tyler Graphics Archive Collection, produced at
the renowned U.S. contemporary block print studio, Tyler Graphics Ltd.
In addition to holding regular showings of its permanent collection, theCenter also introduces a wide variety of modern art.
(1, Miyata, Shiota, Sukagawa-shi, Fukushima)
Established: 1995
Total number of visitors: 50,000 personsnd

CCGA’s 32 “Golden Age of Illustration”©Photo by Mitsumasa Fujitsuka

DNP Education & Entertainment Program
Taking advantage of the locality of the Ginza districtin Tokyo Osaka, where these galleries are located, wesend out high-quality information focusing on art, andhold the “DNP Education & Entertainment Program,” tohelp local citizens lead a more affluent life.

(1)ggg, ddd Gallery Talk
Along with the graphic design exhibits held at the ggg Gallery
in Ginza and the ddd Gallery in Dojima, we also conduct talkshows featuring graphic designers and art directors among
students and professionals. (Admission is free.)ggg:since 1995
12 times a year; a total of 130 shows
Total number of participants: approximately
13,000 persons
ddd:
since 1991
10 times a year: a total of 140 shows
Total number of participants: approximately
9,000 persons

th

ggg’s 228 Graphic Design of Makoto Wada47

DNP GROUP CSR REPORT 2005

Activities for Contributing to Society (Corporate Philanthropy, Local Community)

Trust Grown from Longevity with the Local Community
The DNP Group is engaged in many corporate activities in the local community, both in Japan and abroad.
In order to promote safe and affluent societies, wework with local people in various programs: regional
cleanup, participating in regional events, activities

for the conservation of local environments, regional
disaster-prevention activities, regional traffic safety activities, donating blood, practical plant training, plant
tours, renting our facilities and other such programs.

Label design for local strawberry jam and juice products[DNP Graphica Co., Ltd.]
Tochigi Prefecture, which is the location of DNP Graphica’s plant, is oneof the biggest producers of strawberries. DNP Graphica produced the
packaging for strawberry jam and juice in cooperation with local government and community. They are very pleased to have their products soldat DNP.
DNP Graphica works closely with other communities in the region forvarious projects, such as producing and distributing notebooks commemorating the 50th anniversary of the community, running banner ads,
conducting the plant observation tours and cleaning up the surroundingarea the plant (monthly).

Jam and juice products

Arashiyama Cleanup[Kansai Packaging Operations/DNP Technopack Kansai Co., Ltd.]DNP Technopack Kansai has been continuously involved in cleanup
activities in the Kyoto area for nearly thirty years. These cleanups are
conducted twice a year, in spring and fall. The fall cleanup is performed
together with Omron Corporation. These cleanups are led by our labor
union, with 100 or 200 employees helping at each session.

Arashiyama cleanupAwarded for their Constant Blood Donation[DNP Technopack Yokohama Co., Ltd.]The Yokohama Plant of DNP Technopack Yokohama conducts blood
drives once a year in cooperation with the Kawasaki Red Cross Blood
Center in Kanagawa. The blood drives are conducted each time with thehelp of about thirty employees.
We received the Silver Award of the “Red Cross DistinguishedServices in Blood Donation in 2004” (jointly conducted by the Kanagawa
Government and the Kanagawa Branch of the Japanese Red Cross
Society) in November 2004, for continuously promoting the donation ofblood for more than fifteen years.

Silver Award(2)The Ginza School(4) Musées de France ConferenceThis is an event that DNP
organizes around the theme,“Let’s Enjoy Thinking about
Communication.”Guest
48th Ginza School Event
speakers from various circles The“Can’t Hide Anything from Proprietresses ofGinza Bars”
address an audience of maleand female participants of all ages, in an entertaining format. Admission is 500 yen. Located in DNP’s Ginza Annex,
the event has been held 48 times since 1995, with a totalof 4,000 people attending.

Maison des Musées de France (MMF) is a wholly-owned subsidiary of DNP that provides information about French art
galleries, museums, and fine arts, and sells related items suchas CD-ROMs, videos, and printed material. The conference was
first held in 2002, and has been held 11 times since, at irregularintervals, at DNP’s Ginza Annex. Each time, conference organizers invite speakers to address different themes of interest
to art museum curators,
critics, and researchers.
So far, about 900 people
have participated.

(3) Movies for Everyone in GinzaAt DNP’s Ginza Annex, we show movies (digital images),
mainly from the 1950s and 60s, for older visitors to the
Ginza district. Admission is 1,500 yen. We began in 2003,
with two screenings per year, for a total of four screenings
so far, attended by about 1,000 people.

Botanical Art and the Botanical Illustrations of Louis XIV of France

DNP GROUP CSR REPORT 200548

Socialperformance

It is our aim to have a new relationship with society by “doing whatever we can.”“Not limiting the scope of our social contributions to a return of profits” is the slogan held by DNP. In fact, weplace importance on contributing to society through our main business. We are constantly looking for ways towork together with society.

We are working as a corporate citizen with a focus on printing technology.
Putting to use our printing technology, we promote cooperation in social activities, including medicine and culture. As apart of society, our entire corporate group is involved in finding ways to contribute to the formation and maintenance ofan affluent society, through daily activities.

Developing Blood Vessels with Printing Technology

Joint research with Tokyo Medical and Dental University
Through joint research with Tokyo Medical and Dental
University, DNP has succeeded in developing blood vessel
patterns, which in the past was considered very difficult. DNP
printing technology was applied to the new revascularization
method, which is to develop blood capillaries by transferring them into a culture medium after voluntarily developing
patterns of skin cells. DNP has developed a “pattern culture
substratum,” utilizing the plate-making technology and lithographic technology used in printing. Tokyo Medical and Dental
University has developed technology for transferring patterned
cultured cells and converting them into a luminal. This is thefirst successful instance of revascularization in the world, andthere are high expectations that it will be put to practical application in the area of regenerative medicine, including thatof artificial tissue culturing and organ formation. It might also
be used for such purposes as treating
cardiac infarction and pressure sores.
Teaching “Nanomedicine DNP”
courses at Tokyo Medical and Dental
University on the theme of regenerative medicine, DNP continuously
lends a hand in the field of medicine.

1)Discovering blood vessel patterns
among patients

7) Combining a newly formed blood vessel
with such separately cultured tissue as skin tissue,
and returning it to the body.

2)Depicting blood vessel patterns
on boards

6)Skin cells found inside of blood vessels
forming blood vessel (tubular)3)Dissemination ofnormal skincells found inside blood vessels
among patients,
on depicted blood vessel patterns5)Transferring skin cells taken from inside of blood vessels(and placed on a blood vessel pattern) to a culture medium.

4)Skin cells taken from the insideof blood vessels and attached toa blood vessel pattern

Photomask pictures of capillaries

We’ve achieved the world’s first revascularization method.
I always work under the concept of conducting researchs that will be readily helpful at on-site medical situations. I firstmet DNP researchers including the directors in charge of the Advanced Technology & Business Development Divisionin the fall of 2001. They understood what was required, so that we always enjoyed very good relations with each other.
Although it was a tough request, they worked hard to make cell culture substratum in a number of different types ofpatterns. DNP paid close attention to detail. In fact, DNP was the first corporation that responded to me right away.
President Kitajima expressed his great interest by saying, “This is the first attempt at applying printing technology to thefield of medicine,” I think that we can expect new developments in the future through the cooperation of a network whichgoes beyond our department here at the university and the DNP network. I am very much looking forward to that.

Ikuo Morita

Professor
Graduate School of Tokyo Medical and Dental University

Preserving important cultural properties through printing technology
DNP Media Create Kansai Co., Ltd.

At work

Daijoji Temple (Hyogo Prefecture), which is also known as Okyoji Temple, contains 165 partition paintings by Maruyama
Okyo and his students, designated by the national government as important cultural properties. The digital reproductive
technology of DNP Media Create Kansai Co., Ltd., has been used in a project to transfer those paintings to a storage
warehouse for preservation, for the sake of future generations, in order to protect them from being destroyed or damaged in a natural disaster or otherwise deteriorating. The technology being used is a combination of high-resolution
printing technology for works of art developed over many years, and independently developed ultralight-resistant ink.
But even after the paintings have been transferred to the storage warehouse, we are still working earnestly to preserve
the religious ambience in the whole reception hall that was formed by the paintings.

Using printing technology to preserve cultural properties
Fusing special-effect photography and digital printing technology with traditional industrial art techniques ofJapan, we have digitally recreated cultural properties as a means of protecting them. And we hope to contribute to society through related and peripheral operations. I believe that through these activities we in the
Kansai region, where there are so many valuable and important cultural properties, must lead the DNP Groupthroughout Japan in the job of passing down to future generations the “technique of the masters” and “themeaning of the importance of creation.”
Yutaka Muranaka

Expert Adviser, Information Communication Kansai Operations

49

DNP GROUP CSR REPORT 2005

Activities for Contributing to Society (Professionally, Academically, Educationally)

Putting DNP’s abilities to use in the fields of academics and education
Creating new values through joint-research activities between universities and research institutes on
the one hand and corporations on the other hand is aform of business-academia collaboration. DNP views
business-academia collaboration, for bringing about
the emergence of different spheres, as an importantmeans for enhancing the quality of human resources,
as well as improving science and technology, and eco-nomic productivity.
Research conducted at universities does not only
venture beyond the cutting edge, but it also serves inan educational capacity, carrying out the important social mission of nurturing excellent human resources tosupport the next generation. DNP is actively engaged
in promoting such activities.

Cooperating with Universities
Description of cooperative activities

Case Example

Courses

Offering a course called “Nanomedicine DNP” at Tokyo Medical and Dental University, we cooperate with the 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.

Providing instructors

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

Scholarships and grants

Joint-research andcommissioned research

DNP provides scholarships and grants to several active universities and researchers in Japan and abroad to fulfill their
aim in creating a ubiquitous networking society. These scholarships and grants are actually donations, given free ofcharge, for which we do not expect direct compensation.

We commission research and promote joint-research at universities expected to yield direct results in research anddevelopment for the printing industry. Depending on the circumstances, we provide researchers from our company totake 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 fromthe university and are expected to produce results early on.

I teach the technology developed by DNP at a university
I was approached by Shobi University after being involved in technology for converting all types of sound into MIDI
codes, technology for compressing sound files without degradation, and technology for creating BGM of infinite length.
I was subsequently asked to give printing courses, which is my profession, and currently I teach a Basic Course I (business application) and a digital printing expressions course. I am sometimes amazed at the pace by which the students
progress, and feel more like a teacher than a company man. When I realize that the printing technology and digital
information processing technology cultivated by DNP benefits society, I am inspired to aggressively meet the challengeof tomorrow.
Toshio Modegi
Senior Researcher
Media Technology Research Center

Internship to provide students with an opportunity to gain work experience
DNP has had an internship program in place since 1998 (since 2001 for the
DNP Group), to provide students with an opportunity to gain work experience, as a means to nurture human resources through collaboration between
business and academia. In 2004 we had 44 types of internship involving 73 students throughout the DNP Group. We also hold lectures on technical matters.
However, none of these activities leads directly to actual employment.
In Touch with DNP 2004
Qualification requirements :Current enrollment at a university or college as an undergraduate or
graduate student (regardless of scholastic year, department or branchSome of the people involved in “In Touch with DNP”
of study)
Time and Period :Approximately 2 weeks between August and September 2004
Job Description :Students engage in work based on the curriculum of their type of internship. They submit a report after completing their internship.
Number of students recruited : 1 to 5 students per type of internship
Method of recruitment :Through our website
Types of Internship :There are 44 types of internship, including production and assessment of organic solar cells, product planning and design using a
database based on a typical eating patterns, and technology for managing a main system for BS digital broadcasting.

DNP GROUP CSR REPORT 200550

SocialperformanceAwards in 2004

We have received various CSR activities.

We received a number of awards in 2004, due to the high acclaim for our CSR activities bestowed upon us. We
sincerely believe that receiving such awards is a result of the expectations our stakeholders have for us, which
motivates us to strengthen our trusting relationship in the future.

Date

December. 10, 2004

Award/Sponsor

Details

The 1st “LCA Japan Forum Award”
LCA Japan Forum Incentive Award

For developing an environment-friendly
bottling system and the PET Bottle basedon LCA

Life Cycle Assessment Society of Japan

February 17, 2005

For significantly reducing ink solventsand toluene emissions into the air, andreducing the generation of unnecessary substances during manufacturing
processes

The 14 th “Global Environmental Awards”
The Minister of the Environment Awards
Fuji Sankei Communications Group

February 22, 2005

For various initiatives regarding corporate
ethics and CSR, for example, working
within the organization, and establishingvarious related committees. For assiduous promotion of activities to achieve
results, with particular efforts being madeby all group employees

The 3 rd “Reputable Company” AwardGrand Prix
Sankei Shimbun Co., Ltd., KFi K.K.

March 29, 2005

The 2 nd Grand Prize for Manufactured
Parts
Electric and Electronic Parts Award

For the TV Telephone MPEG-4 Module(the world’s smallest module, used as a
3rd-generation mobile TV phone, and forvideo distribution)

The Nikkan Kogyo Shimbun Ltd.

April 14, 2005

Specific attitudes by the senior management regarding environmental
conservation, clear corresponding ofresults of environmental performanceagainst the targets, detailed description
on management system

The 5 th Environment Report Award andSustainability Report Award
Toyo Keizai Inc.
Green Reporting Forum

Photos: Courtesy of Toyo Keizai Inc.

”Reputable Company” Award
The Reputable Company Award (sponsored by Sankei
Shimbun Co., Ltd., and KFi K.K.) was created in 2002 for the
purpose of establishing social awareness for compliance andinternal control. The award is granted to support and transparent companies with integrity.
A total of 3,695 listed companies were considered forthe third Reputable Company Award, given in 2004. Threecompanies were selected. They were DNP (Grand Prix), Kirin
Brewery Co., Ltd. (Corporate Award), and Shinkin Central
Bank (Financial Institution Award).
In receiving the Grand Prix, we were evaluated for the
improvements we have made in our system for both internaland external communications as regards compliance, and our
involvement in solving problems when they occur at the initiative of our management personnel.

51

DNP GROUP CSR REPORT 2005

President Kitajima speaking upon
DNP’s receiving the award (March 31)(at Tosho Hall of the Tokyo Stock Exchange)

Environmental performance

As a manufacturing company, we areconstantly considering how to coexist
with the global environment. Placing great
importance on the blessings of nature, we do
our utmost to preserve clean air and water forthe next generation. We who live in the 21st
century, as the century of the environment,
must give top priority in tackling this task. We
try each and every day to do whatever we canfor the earth. It is our hope that we can bea corporation that takes the lead in practicalbusiness for the sake of human prosperity
toward the future.

DNP GROUP CSR REPORT 2005

52

Environmental
performance

As a corporate citizen rooted in the everyday lives of people,
we are aiming at achieving a recycling oriented 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 inaugurated the DNP Group
Environmental Committee and strengthened our system for promoting environmental activities. In 2001 weformulated the DNP Group’s Vision for the Century, and began new activities for environmental management.

Based on environmental policy, we are engaged in environment-centered business activities.

DNP Group Environmental Policy
The DNP Group’s efforts are directed towards the continuous prosperity of a world
economy with limited resources and for the 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 withenvironmental laws and regulations as well as recognizing the relationship that eachof our business activities has to the environment.
(1) Each member of the DNP Group establishes and periodically reviews its
own environmental policies and environmental targets, and puts into effectcontinuous 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 theimpact that the project will have on the environment, to make proper efforts toprotect the environment.
(3) When carrying out research, development and design for a new product, weconsider 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 to recycle.
(5) In manufacturing a product, we aim to comply with environmental laws andregulations, and moreover we set up more stringent standards to reduce theemissions 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 ofenergy 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

53

DNP GROUP CSR REPORT 2005

Environmental Policy/Environmental Management System

Environmental Policy/Environmental Management System
Controlling the environmental activities of the entire
group through an optimum management system
Our environmental management system consists of
the DNP Environmental Committee, which is in chargeof management of the entire group, and the Operations
Environmental Committee . Each committee has its
own promotional office.
The DNP Environmental Committee, which is madeup of the directors in charge of the basic organizations
at company headquarters, deliberates and decides onenvironmental policy, objectives and plans for the en-tire group, and monitors the progress of the plans andthe status of the achievement of those objectives bytaking into consideration social trends and the activity
status for each sphere of business.
The decisions made by the DNP Environmental
Committee are further developed by the Operations
Environmental Committee with consideration to thecharacteristic features of its own sphere of business.
The results of these activities are described in the Site
Eco-Report.

DNP Group Environmental Management Structure (Total number of people, including those with multiple positions, as of March 31, 2005)

President
Chairman: Managing Director of the Environment & Product Liability Department
Members: Directors of the basic business divisions at headquarters

DNP Environmental Committee(1) Deliberate and decide on environmental policies, targets and plans of DNP Group

8 members(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

Director : Manager of the Environment & Product Liability Department
Members: Managers of the basic operations at headquarters,Managers of the Environment & ProductPromotion Office

Liability Department, and members of the Technical Division

28 members(1) Propose the DNP Group Environmental policies, targets, planning, and report submitted
to committee(2) Convey the environmental policies, targets, and plans of the DNP Group to all Operations
Environmental Committees , check its progress, and support activities(3) Report to the Environmental Committee regarding the progress (results, progress of themeasures, etc.) achieved by the Operations Environmental Committee

Environmental Committee
in Each Operations

Environmental Committees in 30 operations
Chairman: Operations Managers or Presidents of Group Manufacturing Companies
Members: Division Managers of each operations, and Presidents and Division Managers ofGroup Manufacturing Companies

276 members(1) Deliberate and decide on the environmental policies, targets and plans of each
operations(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 meetings

Director : Full-time or others
Members: General Managers of the operations

Promotion Office(1) Submit the environmental policies, targets, planning, and report to the Operations
Environmental Committee

248 members(2) Convey environmental policies, targets, and plans of divisional groups decided bycommittee to all sites, check and follow up its progress(3) Report to committee regarding the progress (results, progress of the measures, etc.)
being achieved by all of the sites

Technical and Manufacturing Group

Environmentally Conscious Products
Development GroupRegional Measures Group

Environmental Conservation and PRTR Group

Office and Work Environment Group

Industrial Waste Reduction Group741
members

Energy Conservation Group
Each Site of the Operations

57 sites

DNP GROUP CSR REPORT 2005

54

Environmental
performance

Promoting the Eco-Report System for practical environmental management

Developed by the DNP Group as a means of achieving the group’s environmental targets, the Eco-Report System
is an original environmental management system that forms the basis of the group’s environmental management
activities. The DNP Group practices ongoing group-side environmental activities, incorporating ISO14001
certificated systems that take into account the characteristics of each business domain, based on our EcoReport environmental management system.

We apply the Eco-Report System to improve our daily environmental management activities.
PDCA (Plan-Do-Check-Action) is developed overbiannual cycle using three tools – the DNP Group EcoReport, the Site Eco-Report, and the Environmental
Guidelines - and is directly connected to the makingof continuous improvements. Also, we are expanding
the effort themes from challenges that focus on manu-

facturing plants to include items such as development
and sales of environmentally conscious products andgreen purchasing. Our aim is to be clearly recognized
as an enterprise that practices real environmental
management in contributing to the realization of a recycling society.

Eco-Report System
Management Concept

DNP Group Corporate Pledge

DNP Group
Environmental Policies

DNP Group CSR Report 005

DNP Group Environmental Targets (DNP Environmental Committee)

April 00 - March 005

Promotion Office

Operatins Environmental Targets (Operations Environmental Committee)
Promotion Office

DNP Group Eco-Report
Annual issue

DNP Group CSR Report
Annual issue

Environmental policies of each site
Environmental Guidelines

Environmental organization
and responsibility

PLAN
Site Eco-Reports
Annual issue

ACTIONDOCHECKInternal environmental audit (Eco-Audit)

This publication describes various
standards and guidelines (such asindustrial waste processing standards,
energy conservation standards,
voluntary inspection standards forenvironmental conservation,
standards for office waste sorting andcollection, and Eco-Audit checklists)
for establishing the Eco-Report
System.

55

DNP GROUP CSR REPORT 2005

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

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

Eco-Report System

Environmental management is a unified system of management ranging from the establishment of policy
to its implementation and disclosure.
Environmental Policies and Targets
The DNP environmental policies and targets are decided by the DNP Environmental Committee at its head
office and reviewed on a regular basis in light of global
and customer trends, and the status of companywide
activities.
The policies and targets specified herein are widely communicated throughout the company from theheadquarters promotion office to the environmental
committee and promotion office in each operations.
Implementing Activities at the Site
When implementing specific activities, each site conducts environmental activities as stipulated in the DNP
Environmental Guidelines. Activities are recordedmonthly in Site Eco-Report. On a six month basis,
results are assessed and targets 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. This is done to ensure the improvement of environmental activities.
Flow for the Disclosure of Environmental Information
The headquarters promotion office publishes DNPGroup Eco-Report covering companywide activities
twice a year, based on changes in social environmental
trends and the Site Eco-Reports from each 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 aparticular site or the positioning of each 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, this “DNP
Group CSR Report” is published to inform of our environmental management activities over the past year.

Improving our performance through ISO and the Eco-Report System
Our operations manufactures fused thermal and dye-sublimation transfer materials at the Sayama and Okayama
Plants. The Okayama Plant was established in 1991 as a central production plant of sublimation-type thermal transfer
recording material. In 1997 the plant received ISO14001 certification based on the Eco-Report System, the first in theprinting industry, in order to demonstrate its involvement in local environmental issues, while satisfying the needs ofour customers.
ISO14001 is effective environmental management tool for understanding of environmental activities and issues among
all of our employees, as well as improving and managing them. Meanwhile, the Eco-Report System provides the benefit
of enabling us to obtain the latest information and clarifying the special characteristics of the site. Through Eco-Reporttraining, which is conducted when the Eco-Report is issued every half year, and the eco-audit which is conducted oncea year, the Eco-Report System provides discussion with the Environment and Safety Division. Through such discussion, we are able to clarify positive attributes as well as problems in light of trends in environmental issues, policy forgroup activities and the performance of this plant.
Developing original environmental management system under the ISO14001, the site sets on policy and targets for thegroup through the Eco-Report System and evaluates the results of activities. We believe that through these means we
can improve the environmental performance of the DNP Group.

Fumio Ohtake
General Manager
Production Division
Information Media
Supplies Operations

I would like DNP to demonstrate its capabilities to the world’s industry
The DNP Group has developed from a printer and publisher which worked in the media of paper and ink to vibrant corporation active over a wide range of areas, including the printing of materials for publication and industrial use, and the
manufacture of packaging materials, construction materials, and materials for electronic components. The company’s
involvement in the environment has naturally increased, and it is obvious from this report that the company, startingfrom President Yoshitoshi Kitajima, is serious in its efforts to tackle environmental issues from its attitude and actual
business results. It is apparent from reading this report that DNP is a corporation which advocates “contributing to thecreation of an intellectually active and rich 21 century society with emergent evolution.” Particularly noteworthy is thecompany’s dramatic reduction in the use of toluene, which is used in great quantities as an ink solvent, in just a shortperiod of time. Five years ago, the company was releasing more than 10,000 tons of toluene per year into the environment. However they have been successful in reaching their target of reducing this amount to 500 tons, as by the fall of
2004, they reduced the amount to 1,200 tons and are presently close to their target.
Moreover, by having each of its sites to submit a Site Eco-Report twice a year, the company has continuously performed
careful inspection and reforms. It has certainly achieved environmental management system attained through on-siteenvironment-related abilities.
The company has also set up objectives to greatly reduce CO 2 emissions to combat global warming, which has lead tothe various awards they have recently won, including the Global Environment Award.
The DNP Group, which handles printed materials and other heavy items, uses great amounts of energy in the distribution of its products. I would be happier if DNP would step up its efforts to greatly conserve energy in its distribution,
reducing CO2 emissions, as an example of an emerging corporation, not only to the industries in but to the industries
all over the world.

Saburo Kato

Chairperson, Japan
Association of Environment
and Society for the 21stCentury (JAES21)
President, Research Institutefor Environment and Society

DNP GROUP CSR REPORT 2005

56

Environmental
performance

Eco-Audit to further improve our Eco-Report System

DNP conducted the Eco-audit at 56 sites in 2004. Any matters requiring improvement, inspection or further
study, as a result of the eco-audit, were indicated in a corrective action response paper submitted to the auditedsites. We subsequently confirm that all of the appropriate corrective action was taken.

Eco-Audit was conducted on 56 sites in 2004
Results

Features
The DNP Group has been conducting eco-audit forenvironmental issues in the company since 1996. The
promotional office at company headquarters plans,selects a team of auditors, carries out the plans, andperforms the appropriate verification on the corrective
action response papers. The chair of the Environment
Committee at headquarters then approves the results of the audit and the corrective action response
papers.
Feature (1): By bringing together the expertise inherent in the products and manufacturing
processes and the independence of thesites, the auditors are able to obtain significant and objective results from theirauditing.
Feature (2): In Eco-Audit we place importance inon-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 improvement and corrections being madetowards the achievement of the environmental targets. When necessary, we
require audited sites to review plans (legal
audit and business audit).

We conducted Eco-Audit on 56 sites in 2004 (55 sites
in the previous year). We also conducted pilot audit
sessions in 2 R&D Divisions.
Items requiring improvement, pointed out throughthe audit, include legally conflicting items as inadequacies in the legal descriptions at waste productmanagement 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, andit was confirmed that the appropriate corrective actions
taken.
Analyzing contents of the indicated items and deciding on which items action should be taken, we will
follow up during Eco-Audit for 2005.

Features Regarding the Expertise and Independence of Eco-Audit

2004 Eco-Audit Performance

Type of Audit

Expertise of auditors
regarding products andmanufacturing processes

Number of sites audited

Independence ofauditors (sites)

56 sites

Number of attendees at sites

400 persons

Cumulative auditor number

113 persons

Cumulative auditing hours

538 hours

Eco-Audit
ISO14001 External Audit
ISO14001 Internal Audit(We promote ISO14001 certificate for each site. See p. 78.)

Types of Notifications and Corrections Issued in Eco-Audit

Confirming the site andactual items

120

Types of Notifications

Corrections

Improvement required:

Submission of written description ofcorrection measures performed or
improvement plan

Improvement consideration &examination

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

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

Actual work being performed

Confirming the traceabilityof data

57

DNP GROUP CSR REPORT 2005

60

0
’00

’01

’02

’03

’04

Air

3

1

2

0

5

Water

11

12

6

2

5

Noise

8

6

3

1

5

Vibration

13

5

2

1

4

Odor

1

1

1

0

0

Waste

86

62

30

27

14

Energy

2

1

0

0

1

Dioxin

0

1

0

1

1

Organization

5

4

1

1

1

129

93

45

33

36

Total

Internal Environmental Audit

Eco-Audit Contents
Compliance Audit

Operations Audit(1) Document Audit
Site location
Types of waste
Type and number of statutory facilities
Energy Consumption
Exhaust and wastewater channels
Changes in facilities, production processes since the last audit
Applicable laws
State of improvement of notifications of deficiencies in previous audit
State of submission of statutory notifications, reports, and changes
Frequency of measurement, validity of measured data
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 of abnormalities
Emergency containment in case of abnormality or emergency
Site picture taking(1) Confirmation of validity of site policy and established targets
Performance in previous term
Consistency with DNP Group policy
Continuity with performance in previous term
Validity of established targets(2) Confirmation of validity of implementation programs
Consistency between targets and programs
Effectiveness of the programs
Possibility of the programs
Possibility 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 of indicator and achievement oftargets

Appropriateness of actual work performed

Step in Eco-Audit
Preparation and notification of annual plan

Promoted by Head Office

Auditing Team
Auditor Qualification

Formation of auditing team

Lead Auditor
Adjustment of auditing schedule

Auditing team, sites subject to audit

AuditorPreparation of audit notification
Notification to sites of impending audit(1 month in advance)
Performance of eco-audit
Auditor’s pre-audit meeting
Open Meeting

Document Checking

Eco-Audit Notification

Auditor

Auditing team, sites subject to audit

Lead Auditor• Person designated or selectedfrom auditors by Head Office
Promotions Office Manager
Auditors• Persons who have completed
the Eco-Audit Training Course
and recognized by the Head
Office Promotions Office
Manager• Other persons recognized as
being suitable by the
Promotions Office Manager

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

DNP Group Eco-Audit
checklist
Record of correction andmeasures performed sheetsfrom previous audit

Site Confirmation

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

Auditor's Meeting

Preparation of Audit Report and Requests for Improvement Measures

Closing Meeting

Description of audit results and content of requests for improvements

Audit Report and Requests for Improvement Measures
Correction Measures
Performed sheet

Completion of Eco-Audit

Acceptance of Audit Report andAudited site manager
Requests for Improvement Measure
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 ChairDNP GROUP CSR REPORT 2005

58

Environmental
performance

Disclosure Environment-related data of the following consolidated manufacturing sites are disclosed
in this report.

Hokkaido/Higashi-ku, Sapporo• DNP Hokkaido Co., Ltd.

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

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

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

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

Tochigi/Nishikatacho, Kamitsuga• DNP Graphica Co., Ltd.

Printing /bookbinding (Information Communication)

Ibaraki/Ushiku• Ushiku Plant, DNP Data Techno Co., Ltd.
Manufacturing of various types of Smart cards (Information Communication)

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

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

Kawaguchi• Kawaguchi Plant, DNP Offset Co., Ltd.
Offset printing (Information Communication)

Miyoshi, Iruma• Tsuruse Plant, Ichigaya Publication Printing Operations
Plate-making/printing plate/printing/bookbinding (Information Communication)• Tokyo Plant, DNP Kenzai Co., Ltd.

Plate-making/printing plate/printing/processing (Lifestyle and Industrial Supplies)• Tsuruse Plant, DNP Advanced Industrial Supplies Co., Ltd.
(Lifestyle and Industrial Supplies)

Warabi• Warabi Plant, BF Operations
Plate-making/printing/processing (Information Communication)

Sayama• Sayama Plant, DNP Technopack Co., Ltd.
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)• DNP Cup Techno Co., Ltd.

Molding or processing of various types of paper containers/processing (Lifestyleand Industrial Supplies)• Sayama Plant, DNP IMS Co., Ltd.

Manufacturing of thermal transfer carbon ribbons (Lifestyle and Industrial
Supplies)* BC (Brother Company):Group companies that
manufacture products
not related to thegroup’s Information
Communication,
Lifestyle and Industrial
supplies, and Electronics
divisions or related toseveral divisions.

59

DNP GROUP CSR REPORT 2005

Kamifukuoka• Kamifukuoka Plant, DNP Fine Electronics Co., Ltd.
DNP Precision Devices Co., Ltd.
Manufacturing of electronic precision parts (Electronics)

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

Chiba/Kashiwa• Kashiwa Plant, DNP Techno Polymer Co., Ltd.
Molding, processing and printing of plastic containers (Lifestyle and Industrial
Supplies)•DNP Techno Film Co., Ltd.
Manufacturing and processing of synthetic resin films (Lifestyle andIndustrial Supplies)

Tokyo/Shijuku-ku• Ichigaya Plant, Ichigaya Publication Printing Operations
Plate-making/printing plate/printing/bookbinding (Information Communiction)• DNP Facility Services Co., Ltd.
Meal services, etc.

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

Sites Subject to Environment-related Data Disclosure* DAP Technology Co., Ltd. one of the equity-method affiliates, has been included in the scope of disclosure in recognition of its importance.
Please refer to page 77 for information of our overseas business sites.

Shinagawa-ku• DNP SP Tech Co., Ltd.
Manufacturing of various advertising and promotional materials (BC)Kita-ku• Akabane Plant, Ichigaya Publication Printing Operations
Printing (Information Communication)• Akabane Plant, Commercial Printing Operations
Plate-making/printing/bookbinding (Information Communication)• DNP Seihon Co., Ltd.
Bookbinding (BC)• DNP Logistics Co., Ltd.
Packaging/shipping (BC)• DNP Hoso Co., Ltd.

Okayama/Okayama• Okayama Plant, DNP IMS Co., Ltd.
Manufacturing of dye-sublimation transfer materials (Lifestyle and Industrial
Supplies)• Okayama Plant, DNP Kenzai Co., Ltd.

Plate-making/printing plate/printing/processing (Lifestyle and Industrial Supplies)• Okayama Plant, DNP Advanced Industrial Supplies Co., Ltd.

Manufacture of electronic parts, etc. (Lifestyle and Industrial Supplies)

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

Tokushima/Tokushima

Processing of filling and packaging (BC)• DNP Shikoku Co., Ltd.

Printing and manufacturing of machine tools (BC)Fukuoka/Yahatanishi-ku, Kitakyushu• D.N.K Co., Ltd.

Kanagawa/Tsuzuki-ku, Yokohama• DNP Technopack Yokohama Co., Ltd.

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

Midori-ku, Yokohama• Tokyo Plant, The Inctec Inc.
Manufacturing of ink, varnish, pigments and dyes (BC)Odawara• Sagami Yoki Co., Ltd.
Manufacturing of laminated tubes (Lifestyle and Industrial Supplies)

Aikawa, Aiko

• Tokyo Plant, DNP Ellio Co., Ltd.

Plate-making/printing/manufacturing of packaging (BC)• Advanced Colortech, Inc.

Manufacturing of color filters (Electoronics)

Tobata-ku, Kitakyushu• DAP Technology Co., Ltd.

Manufacturing of rear panels for plasma (Electoronics)

Minami-ku, Fukuoka• Fukuoka Plant, DNP Kyushu Co., Ltd.
Plate-making/printing/bookbinding/manufacturing ofpackaging (BC)Chikugo• Chikugo Plant, DNP Kyushu Co., Ltd.
Plate-making/printing/bookbinding/manufacturing ofpackaging (BC)Printing and processing of metal sheets (Lifestyle and Industrial Supplies)

Saiwai-ku, Kawasaki• DT Fine Electronics Co., Ltd.
Manufacturing of semiconductor photomasks (Electronics)

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

Aichi/Moriyama-ku, Nagoya• DNP Tokai Co., Ltd

Printing/bookbinding/manufacturing of packaging (BC)Kyoto/Minami-ku, Kyoto• Kyoto Plant, DNP Fine Electronics Co., Ltd.
Manufacturing of electronic precision parts (Electronics)

Ukyo-ku, Kyoto• Kyoto Plant, DNP Technopack Kansai Co., Ltd.
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Kyotanabe• Tanabe Plant, DNP Technopack Kansai Co., Ltd.
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Nara/Kawanishi, Shiki• DNP Data Techno Kansai Co., Ltd.

Other Domestic Consolidated Affiliates• DNP Art Co., Ltd., DNP Total Process Ichigaya Co., Ltd., DNP Uniprocess
Co., Ltd., Wakosya Co., Ltd. and DNP Techtas Ichigaya Co., Ltd. arecovered under a portion of the Ichigaya Plant, Ichigaya Publication Printing
Operations• DNP Butsuryu Systems Ichigaya Co., Ltd. is covered as a division of theplants under the Ichigaya Publication Printing Operations (Ichigaya Plant,
Tsuruse Plant, Kuki Plant and the Akabane Plant• DNP Media Create Co., Ltd. and DNP Butsuryu Systems Shouin Co., Ltd. arecovered as a division of the Enokicho Plant, Commercial Printing Operations• DNP Total Process BF Co., Ltd. is covered as a division of the Warabi andNara Plants, BF Operations• DNP Techtas BF Co., Ltd. (plate-making & printing) is covered as a divisionof the Warabi Plant, BF Operations• DNP Micro Technica Co., Ltd. is covered as a division of the Kamifukuoka
Plant, DNP Fine Electronics Co., Ltd.
• Of the companies treated as consolidated companies under financial
accounting practice, we excluded 9 companies without manufacturing divisions, such as DNP Trading Co., Ltd.

Plate-making/printing/processing (Information Communication)

Osaka/Hirakata• Kansai Plant, The Inctec Inc.
Manufacturing of ink, varnish, pigments and dyes (BC)Neyagawa

Overseas Consolidated Manufacturing Affiliates• Neyagawa Plant, DNP Media Create Kansai Co., Ltd.

• DNP IMS America Corporation. (US, processing thermal transfer ribbons)Printing (Information Communication)• DNP Electronics America, LLC (US, manufacturing and sales of precisionelectronics parts)• Kansai Plant, DNP Techno Polymer Co., Ltd.
Molding, processing and printing of plastic containers (Lifestyle and Industrial
Supplies)• Osaka Plant, DNP Ellio Co., Ltd.

• DNP Denmark A/S (Denmark, manufacturing and sales of precision electronics parts)

Printing and processing of metal sheets (Lifestyle and Industrial Supplies)• Tien Wah Press (Pte.) Ltd. (Singapore, plate-making/printing/bookbiding)

Hyogo/Kita-ku, Kobe

• Kobe Plant, DNP Kenzai Co., Ltd.
Plate-making/printing plate/printing/ processing (Lifestyle and Industrial Supplies)

Ono• PT DNP Indonesia (Indonesia, plate-making/printing/bookbiding, manufacturing and sales of packaging)• DNP Photomask Europe S.p.A . (Italia, manufacturing and sales of precisionelectronics parts)• Ono Plant, DNP Media Create Kansai Co., Ltd.
Plate-making/printing/bookbinding (Information Communication)

DNP GROUP CSR REPORT 2005

60

Environmental
performance

Each segment presents its own environmental impact due to the differencesin the manufacturing processes

The Information Communications Segment uses significant amount of raw materials (paper), while the Lifestyleand Industrial Supplies Segment uses solvent and the Electronics Segment used and discharged water.

The DNP Group manufactures a variety of different
products closely related to the everyday lives of consumers, which consist of main materials as film, plastic,
metal (iron, aluminum, etc.) and/or ink.
The Information Communications Segment, whichmainly manufactures magazines and other printed material through offset printing, uses a great amount of
papers. The Lifestyle and Industrial Supplies Segment,
is one of the biggest users of solvents in the DNPGroup as it manufactures packaging, construction andother industrial materials and uses solvents for its gravure printing, coating and lamination. The Electronics

Segment uses and discharges great amount of waterin proportion to the rest of the group for its shadow
masks and lead frames.
Regarding the environmental impact per production, the usage of main materials in the Information
Communications Segment is large, whereas theElectronics Segment uses and discharges greatamounts of water. In addition, there is not much difference among the individual Segment as regards basic
units of undesired substance, with per unit GHG emissions greater for the Lifestyle and Industrial Supplies
Segment than other segment.

Main materials

Main secondary materials
2003

2004

2003

Paper

2,088,400 tons

2,101,300 tons (0.6% increase)Film

119,000 tons

126,400 tons (6.2% increase)

Plastic

71,600 tons

74,500 tons (4.1% increase)Metal

72,100 tons

78,100 tons (8.3% increase)Ink

64,000 tons

62,600 tons (2.2% decrease)

Others114,700 tons

117,300 tons (2.3% increase)

Percentage distribution by individual segment for main materials (paper)

2004

Solvent

27,200 tons

28,300 tons

Acid and alkaline

59,300 tons

46,300 tons (21.9% decrease)

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

17%
9%

2003

9%

2004

1%

11%

18%
74%

(4.0% increase)

11%

2003

73%

2004

88%

88%

INPUT

Information Communication
Books and periodicals, commercial printing, business forms

Electronics

Lifestyle and Industrial Supplies
Packaging, decorative materials, industrial supplies

Product Manufacturing
Process

BC (brother companies)

Displays, electronic devices

Ink, beverages, etc.

Emissions into the air
2003

2004

GHG emissions

899,000 tons-CO2

935,900 tons-CO2

NOx emissions

660 tons

702 tons(6.3% increase)

SOx emissions

25.2 tons

22.6 tons(10.3% decrease)

VOC emissions*2

2,200 tons

1,242 tons

(43.5% decrease)(4.1% increase)

Percentage distribution by individual segment for GHG emission amount10%

Information Communication

10%
28%

Lifestyle and Industrial Supplies
Electronics

29%

2003

27%
30%

2004

BC (brother companies)
33%

61

DNP GROUP CSR REPORT 2005

33%

Current Status of Environmental Impact

Environmental impact per output* by individual segment (tons/1 million yen)
Impact/segment

Information
Communication

Lifestyle and Industrial
Supplies

Electronics

BC

15.5

6.6

0.4

6..2

Main material
Undesired substance

1.8

1.5

2.1

0.7

Amount of water used

19.1

26.1

113.9

23.5

Amount of water discharged

11.4

16.7

101.2

19.7

GHG emissions

2.5

4.5

3.4

1.1

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

Utilities
2003

2004

Electricity

1.1356 billion kWh1.1864 billion kWh (4.5% increase)

City gas144.4 million m3

149.0 million m3 (3.2% increase)

LPG

25.5 million kg

25.9 million kg (1.6% increase)

Fuel oil

3,000 kl

2,700 kl (10.0% decrease)

Steam

169 TJ

182 TJ (7.7% increase)

Water

14.139 million m3

15.307 million m3 (8.3% increase)

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

13% 12%
12%

Information Communication

12%

2003

2004

63%

63%

Lifestyle and Industrial Supplies
Electronics
BC (brother companies)

Current Status of Recycling in the DNP Group
2004

2003
Recycled solvent

4,800 tons (usage ratio: 1.17)

Recycled acid and alkaline
Recycled water

6,100 tons (usage ratio: *11.22)

50,700 tons (usage ratio: 1.85)

58,500 tons (usage ratio: 2.26)

523,555,800 m3 (usage ratio: 38.0)

529,419,700 m3 (usage ratio: 35.6)

169,500 tons

178,200 tons

Vapor generated from waste heat recovery

OUTPUT

Emissions into bodies of water

Undesired Materials Generated

2003

2003

2004

Water discharged

11.843 million m3

12.506 million m3(5.6% increase)

Undesired materials generated

COD emissions *3

49.7 tons

52.9 tons(6.4% increase)

Nitrogen emissions *3

28.3 tons

20.3 tons (28.3% decrease)

Phosphoric emissions *3

1.1 tons

0.4 tons (63.6% decrease)

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

10%

13% 9%

2003

2004

68%

69%

9%

2004
519,300 tons

527,700 tons

(1.6% increase)

Waste released

93,100 tons

95,500 tons

(2.6% increase)

Waste disposed

14,500 tons

10,500 tons (27.6% decrease)

Percentage distribution by each segment for undesired substance.
12%

13%
36%
32%

2003
19%

35%
34%

2004
19%

*1 Usage Ratio
This is a calculation of(input + recovery andrecycling)/input. It does
not include vapor or solvent in ink.
*2 VOC emissions
This covers VOC forclass 1 chemical substances under the PRTR
Law. There was a totalof 12,600 tons of VOC in
2004.
*2 COD, nitrogen and phosphoric emission
This covers water discharge channels which
apply to the Water
Pollution Control Law.

DNP GROUP CSR REPORT 2005

62

Environmental
performance

Making steady headway towards achieving our environmental tergets

In light of environmental policy, the DNP Group sets environmental taregets appropriate to our business, andsteadily yields results thereof. The table on the right indicates our targets for fiscal 2004 and the results alongwith our targets for fiscal 2005.

Targets for 2004

Results in 2004
Emissions in 2000: 867,000 tons

Maintain greenhouse gas emission at the 2000 level (2010)

Emissions in 2004: 936,000 tons
108.0% of that in 2000
Consumptions in 2000: 18,500 TJ

Maintain energy consumption at the 2000 level (2010)

Consumptions in 2004: 20,100 TJ
108.3% of that in 2000

Globalwarmingprevention

Per unit in 1990: 4.21 TJ/100 million yen
Reduce per unit energy consumption(Crude-oil converted energy consumption amount/production) by 15% againstbase year of 1990 (2010)

Per unit in 2004: 4.25 TJ/100 million yen
1.0% increase over that in 1990
Per unit in 1990: 206 t-CO 2 /100 million yen

Reduce per unit CO 2 emissions (CO 2 /production) by 20% respectively againstbase year of 1990 (2010)

Per unit in 2004: 190 t-CO 2 /100 million yen
7.8% decrease from that in 1990
Per unit CO 2 emissions in 2000: 115 t-CO 2 /million ton-km

Reduce CO 2 emissions per unit of transport (CO 2 emissions/transported
weight/distance traveled) by 5% from the level in 2000 (2010)
Reduction ofenvironmental
impact oftransport

Per unit CO 2 emissions in 2004: 76 t-CO 2 /million ton-km
34% decrease from that in 2000
Per unit fuel use for transport in 2000: 83 kl/100 million yen

Reduce fuel consumption per unit of sales (Fuel consumed/sales) by 20% fromthe amount in 2000 (2010)

Per unit fuel use for transport in 2004: 79 kl/100 million yen
6% decrease from that in 2000

Reduce air emissions of toluene for the entire DNP group to less that 500
tons/year (2004)
VOC

Air emissions in 2004: 1,192 tons
86% decrease from that in 2000
Release and transfer in 2000: 1,220 tons

Reduce emissions and transfers of items designated as Class 1 Chemical
Substances (except toluene) under the PRTR law to 50% of the 2000 level (2004)

Release and transfer in 2004: 548 tons
55% decrease from that in 2000

Officeenvironment

Improve the used paper recovery ratio by 65% in comparison to the rate for municipal waste

73.8% rate of the fractional recovery of waste paper in 2004
Per unit in 2000: 0.312 tons/million yen

Reduce waste emissions per unit of production (waste emissions/production)by 40% from the 2000 level (2005)

Per unit in 2004: 0.202 tons/million yen
35.3% decrease from that in 2000
Total undesired materials in 2000: 646,000 tons

Reduce the amount of unused materials generated by 25% from the 2000 level(2005)
Reductionof industrial
waste

Achieve zero emissions at 20 sites (2005)

Total undesired materials in 2004: 528,000 tons
18.3% decrease from that in 2000
Achieved at 10 sites
31 sites with a final repository site usage rate of less than 1%
17.7% generation rate of undesired material in 2000

Reduce undesired material generation ration (unused product generation
amount/total material inputs) by 20% from the 2000 level (2005)

13.8% generation rate of undesired material in 2004
22.0% decrease from that in 2000

Achieve an 80% recycling rate ratio (recycle amount/undesired material generation amount) (2005)
Development
and sales ofenvironmentallyconscious productsGreenpurchasing

Environmental
conservation

63

DNP GROUP CSR REPORT 2005

Improve year-on-year sales of environmentally conscious products by 10%

79.5% recycling rate in 2004
Sales of 164 billion yen in 2004
More than 17% increase over that in 2003

Increase the purchasing rate for products covered by our own company standards(Purchasing Division Green Purchasing Standards) of the total amount of materials andsupplies purchased by 2.5% in comparison with the previous year (each year)

23.6% green purchasing rate for materials in 2004

Increase the purchasing rate of environmentally certified products, such as
those labeled with Eco-Mark, of total supplies (office supplies and equipment)
by 3% in comparison with the previous year (each year)

30.6% green purchasing rate for materials in 2004

0.7% decrease from that in 2003

4.5% increase over that in 2003

Keep maximum concentration of air emissions subject to emissions regulations at 70% of
the required standard or less (2005)

96% achievement rate of targets for 2004 (voluntary target)

Keep maximum concentration of wastewater discharges subject to wastewater
regulations at 70% of the required standard or less (2005)

96% achievement rate of targets for 2004 (voluntary target)

Keep the maximum level of noise at site perimeters at 95% of the required standard or less (2005)

56% achievement rate of targets for 2004 (voluntary target)

Keep the maximum level of vibration at site perimeters at 95% of the required standard orless (2005)

100% achievement rate of targets for 2004 (voluntary target)

Keep the maximum concentration of odors at our site perimeters at 70% of the required
standard or less (2005)

92% achievement rate of targets for 2004 (voluntary target)Results and Evaluation of Environmental Conservation：Substantial achied target
Evaluation

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

Targets from 2005

p.67

p.67
Reduce per unit CO 2 emissions to 15% in 1990 level by 2010.

p.67

p.67

p.68
We aim to achieve the following targets by 2010:• Reduce per unit CO 2 emissions (CO 2 emissions/transport ton kilometer) by 5% from the 2000 level.
• Reduce per unit fuel use for transport (amount of fuel used/sales) by 20% from the 2000 level.

p.68

p.69
Reduce emissions in the air from all VOC (other than methane) for the DNP Group
to 50% of emissions from the 2002 level by 2005.

p.69

p.70

Increase the rate of the fractional recovery of waste paper to 65% of that for general waste.

p.71・72

p.71・72

p.71・72

We aim to achieve the following targets by 2005:• Reduce per unit waste emissions (waste emissions/production) by 40% from the 2000 level.
• Reduce undesired material generation by 25% from the 2000 level.
• Reduce undesired material generation ratio (undesired material generation/total material inputs) at all sites
by more than 2%, by 20% from the 2000 level.
• Achieve 80% recycling ratio (recycled amount/total amount of undesired material generation).
Achieve zero emissions at 30 sites by 2010.

p.71・72

p.71・72
p.76

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

p.76

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

p.76
p.73
p.73
p.73
p.73
p.73

Increase the purchase 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.

We aim to achieve the following targets by 2005:• Keep maximum concentration of air emissions subject to emissions regulations at 70% of the required
standard or less.
• Keep maximum concentration of wasterwater discharges subject to wastewater regulations at 70% of therequired standard or less.
• Keep the maximum level of noise and vibration at our site perimeters at 95% of the required standard or less.
• Keep the maximum concentration of odors at our site perimeters at 70% of the required standard or less.

DNP GROUP CSR REPORT 2005

64

Environmental
performance

We are making efforts to monitor and reduce emissions of environmental pollutants so as to conserve both
the global and local environments. We are working to reduce air pollutants, such as air contaminants, ozone
depleting chemicals, SOx (sulfur oxide), NOx (nitrous oxide), and VOCs (Volatile Organic Compounds), as well aswater pollutants, such as DOD (Chemical Oxygen Demand), nitrogen, and phosphorous.
* CFC-11:
chlorofluorocarbons* HCFC-141b:hydro-chlorofluorocarbons

We are involved in activities for reducing environmental pollutants
that are toxic to the air and water.

Reducing air pollutants and replacing them with environmentally conscious substances[Atmospheric contaminants]• Dichloromethane emissions (tons)
Dichloromethane is mainly used as cleaner in theprinting process. We have been making progressin reducing its use by switching to cleaning equipment using aqueous solutions or to substitutechemicals and have reduced emissions in 2004.

120
104.4
84.7

90

60

52.9
24.9

30
* Trichloroethylene was completely eliminated in 1996
while tetrachloroethylene was in 1997.

0’99[Atmospheric contaminants]• Dioxin emissions (mg-TEQ)
We eliminated small-scale incinerators, in which
incineration is difficult to control, by 2002, so as
to reduce the emissions stemming from waste incineration. Currently, all of our active incinerators
are large-scale thermal recovery incinerators that
fulfill the 2002 regulations. We have six of thesenationwide. In 2004, we were able to maintain thelevel under 1/5 of level in 2002.

’00

’01

’02

214.9

150
100
44.5

50

22.2
’01

40

33.9
15.4

’02

’03

37.5

37.5

’04

29.8

30
23.6
20

16.7

10
3.2
0
’99

[NOx (nitrogen oxides)]• NOx emissions (tons)
NOx is also generated with the consumption offuel in production processes. As with SOx, wehave thus far made efforts to reduce NOx by suchmeans as improving combustion facilities andconserving energy. NOx emissions increased in
2004 due to an increase in energy consumption
and with the introduction of steam reception a
new supplemental tabulation method was used.

’04

200

’00

[SOx (sulfur oxides)]• SOx emissions (tons)
SOx is emitted in conjunction with electricand fuel consumption in the production process. The DNP Group has been working
to reduce the emissions of these in smoke
and soot by switching from fuel oil to municipal gas, improving combustion facilities,
and energy conservations. By switching ourboilers from fuel oil to municipal gas in fiscal year 2004, we were able to reduce theamount of SOx emissions.

0.6

’03

250

0

[Ozone-depleting Substances]• CFC-substitute emissions (tons)
In case of ozone-depleting substances, we use air
conditioners that employ coolant containing CFC11* and CFC-12, we reduced by four the numberof air conditioners filled with this coolant in 2004,
and currently have 9 on active duty. In addition,
we used HCFC-141b*, which is an alternative
chlorofluorocarbon, as cleaning agent in our manufacturing process. However, we switched todifferent substance in 2004 to reduce emissions.

3.6

’00

’01

77.2

74.5

’02

’03

’04

25.2

22.6

’03

’04

100
87.6
75

56.5
50

25

0
’99

’00

’01

’02

617.1

621.6

620.4

626.7

’99

’00

’01

’02

800

600

660.3

702.1

400

200

0

65

DNP GROUP CSR REPORT 2005

’03

’04

Environmental Pollutants

5,000[VOCs (volatile organic compounds)]• VOC emissions (tons)
In our printing processes we use large amounts of 0,000
ink solvents, adhesive agents and cleaning agents
which contain VOC. In order to reduce the VOC emis- 5,000
sion, we have employed such means as switchingover to alternatives that have less an environmen- 0,000
tal impact, and installing processing and recovery
equipment. In 2004, we reduced the VOC emissions
5,000
by such means as switching over to other materials
and introducing processing equipment.
0,
,5

9,068,0
12,642
1,242

7,79

6,86

'0'0

11,400

PRTR-listed VOC
PRTR-unlisted VOC'04

Reducing pollution in wastewater and replacing them with environmentally conscious substances[COD (chemical oxygen demand)]• COD emissions (tons)
We use wastewater treatment facilities to decontaminate and reduce pollution of wastewater,
emitted from our production lines and dining areas, which contains organic substances. Becauseof the increase in the production volume of processes in the Electronics Segment in 2004, we had
an increase in the amounts of post-processing
drainage water and COD emissions.

9.7

50

5.9

.

0
.
0
0

.6

.6

'99

'00

0
0

[Nitrogen]• Nitrogen emissions (tons)
We have been using wastewater treatment facilities
and water-purifier tanks to decontaminate wastewater from our plants and offices as a means ofpreventing the eutrophicaiton* of public waters.
In 2004 the Electronics Segment, which releases
large amounts of wastewater, reduced its nitrogen
emissions by such means as changing materials
that contain nitrogen, and improving processing
methods.

'0

0

'0

'04

8.

0

0.

9.

'00

'0

.

20.3

.
0

0
'99

[Phosphorous]• Phosphorous emissions (tons)
In 2004 the Electronics Segment, which releases
large amounts of drainage water, also reduced its
phosphorous amounts by such means as changing cleaning agents that contain phosphorous.

'0

'0

'0

* Eutrophication
Eutrophication is a problem
affecting water quality inclosed coastal water areas
and lakes. This is caused bynitrogen and phosphorous
content in residential andindustrial wastewater, and ischaracterized by an unusually high growth rates forplankton.

'04

.0
.6
.5
.
.0
0.9

0.9

0.6
0.5

0.

0
'99

'00

'0

'0

'0

'04
DNP GROUP CSR REPORT 2005

66

Environmental
performance

Measures against Global Warming

Installing energy-saving equipment andswitching fuels to prevent global warming

We made efforts in reducing greenhouse gas emissions in 2004 by installing energy-saving equipment, switching
to different fuels, and improving production. However there was an increase in energy consumption andgreenhouse gas emissions because of the hot summer days and the growth in production volume.

Targets

Results

To achieve the following by 2010:• Maintain greenhouse gas emission at the 2000
level
• Maintain energy consumption at the 2000 level• Reduce per unit energy consumption (Crude-oil converted energy consumption amount/production) by
15% against base year of 1990
• Reduce per unit CO 2 emissions (CO 2 /production) by
20% respectively against base year of 1990

• Greenhouse gas emissions was 936,000 tons, 8.0%
increase (approximately 69,000 tons) in comparison
with 2000.
• The energy consumption was 20,100 TJ (terajoules),
8.6% increase (approximately 1,600TJ) in comparison with 2000.
• Per unit energy consumption was 4.25TJ/100 million
yen, 1.0% increase in comparison with 1990. Per
unite CO 2 emissions were 190 tons/100 million yen,
7.8% decrease.

Calculation methods for greenhouse gases and energy consumption
Greenhouse gas emissions are calculated in this report according to the
Ministry of the Environment’s “Guideline for calculation of greenhouseemissions from businesses”(completed in July 2002), with past dataalso recalculated.

* The energy usage results were reinvestigated per site in 2004 to secure the accuracy of the calculation of greenhouse gas emissions for 1990. As a result theemissions for 1990 is now 550,000 tons, with is 98,000 tons more than theprevious value.
* All figures for greenhouse gas emissions indicate conversion to CO2 in tons.
* Feat values are TJ (terajoules) = joules 10 to the 12

Method of calculating per unit energy consumption and per unit CO2 emissions
Per unit energy consumption = Energy consumption (TJ) /production (100 million yen)
Per unit CO2 emissions = CO2 (1,000 tons) emitted through consumption of energy (fuel,electricity)/production (100 million yen)

1,000
867

849

842

899

Energy consumed

750
550
500

250

0

936

Energy Consumption (Converted to heat) (Unit: TJ)
25,00019,300 20,100

20,00018,50018,100 18,100

15,000
11,20010,000
5,000

’90

’00

’01

’02

’03

’04

Per Unit Energy Consumption (Unit: TJ/100 million yen)

0

200
4.21

4.32

4.08

3.94

4.19

’90

’00

’01

’02

’03

’04

Per Unit CO 2 Emissions (Unit: tons-CO 2 /100 million yen)

5.00
4.00

Industrial wastes incinerated

Greenhouse Gas Emissions (Unit: 1,000 tons –CO 2)

4.25

192
206

181

177

’01

’02

187

190

150

3.00
100
2.00
50

1.00
0

’90

’00

’01

’02

’03

’04

0

’90

’00

’03

’04

[Kashiwa Plant, DNP Techno Polymer Co., Ltd.]We are making efforts in reducing CO 2 emissions
Our plant manufactures plastic goods such as food and toner trays. The
manufacturing site is a clean room where air conditioning is a major issue.
We terminated the use of boilers using heavy oil which was used for air conditioning in February 2005 and installed electric turbo cooling systems. This
reduced CO2 emissions by 900 tons annually. In addition, we have been making efforts to conserve energy by covering our factory roofs with heat shield
paint and insulating the heating areas of our molding machines. We will keep
on finding effective ways of using energy to prevent global warming.

Turbo cooling system

Hiroshi HashimotoGroup Leader
Technical Department
DNP Techno Polymer Co., Ltd.
Heat shield paint roofs

67

DNP GROUP CSR REPORT 2005

Distribution

Reduction of CO2 from transport Operations[DNP Logistics Co., Ltd.]

Targets

Results

120* DNP Logistics Co., Ltd. is a general transport company with approximately 200
trucks and looks after the distribution of the DNP Group. It is based in the Tokyo
area but covers the entire area from Northeast Honshu to Kyushu.

115

Target
100

96
83

80

78

85

78

79 78

76

79

Target60

40

20
per unit CO2 emissions (ton/1 million ton,km)
Fuel use for transportation (Kl/100 million yen)

We have already reached our goals with the reduction of per unit CO 2
emissions. However, per unit fuel use for transportation is stagnant due to the
reduction of sales.

• Reduced 34% of CO2 emissions• Reduced 6% of fuel use for transport

We will attain the following compared to 2000 targets
by 2010.
• Reduce CO 2 emissions per unit of transport (CO 2
emissions/transported weight/distance traveled)by 5% from the level in 2000
• Reduce fuel consumption per unit of sales (Fuel consumed/sales) by 20% from the amount in 2000

Transitions of CO 2 emissions andfuel use for transportation

Environmental
performance

0
’00

’01

’02

’04

’03

* transportation ton/km (t・km)
Σ (amount of cargo x distance)

Promoting modal shift[Chikugo Plant, DNP Kyushu Co., Ltd.]DNP Kyushu is switching their product distribution by using railway containers.
Approximately 4,300 tons of products were shipped using railway containers in
2004. This covers approximately 15% of the total Chikugo Plant shipment.
This plant is manufacturing plastic film packing materials and paper packages.
It is difficult to use railway transportation because there are limitations in delivery
deadlines and conditions due to the make-to-order production. By reducing thetime spent from ordering to delivery, we have been incorporating railway transportations by improving the distribution system within the plant and the effective
use of assigning vehicles.
We are planning to promote modal shift even further in the future.

Loading onto a railroad container

Hiroshi Yamamoto (above)

Manager, Chikugo Plant, Product Managing Section
DNP Kyushu Co., Ltd.

Kouji Ogata

General Manager, Chikugo Office
DNP Logistics Co., Ltd.

DNP GROUP CSR REPORT 2005

68

Environmental
performance

We are making efforts to reduce the emissions into air and water, as well as the transport as waste, or chemicals
listed in Category 1 of the PRTR Law* with the aim of limiting the environmental impact of chemicals that are usedin the production process. We broadly reduced the environmental impact of chemicals in 2004 by, for example,
reducing atmospheric emissions of toluene (which constitutes 90% of the total of PRTR-listed chemical emission)by 7, 184 tons (85.8%) in comparison with 2000.
* The PRTR Law
The PRTR Law is a law
enacted to promote themonitoring and controlof emissions into the environment of designatedchemicals.
* The range of data collected
The data was collected fromchemical substances thatare included in the Class
1 Designated Chemical
Substances in the PRTR
Law that have an annual
output of over 1 ton.

Solvent Processing Facilities
DNP Technopack Tokai Co., Ltd.

Solvent Processing Facilities
Sayama Plant, DNP TechnopackCo., Ltd.

69

DNP GROUP CSR REPORT 2005

Chemical Substances

Made significant reductions into air emissionsof chemical substances

We reduced designated chemical substances such as toluene.
Targets• Reduce air emissions of toluene for the entire DNP
group to less that 500 tons/year (2004)• Reduce emissions and transfers of items designatedas Class 1 Chemical Substances (except toluene)
under the PRTR law to 50% of the 2000 level (2004)

Results• We were able to reach our targets, as the air emission and transfer of items designated as Class 1
Chemical Substances (except toluene) was 548
tons, a reduction of 23.0% in comparison with 2003
(55.1% reduction in comparison with 2000).
The cumulative results for PRTR-listed chemicals in2004 as are shown in the table below. There was 9%increase in the amount handled compared to the 2003
report which was 24,729 tons (36 chemicals and 33
plants).

*Please refer to the highlights on pages 11 and 12.

• The toluene emissions in 2004 were 1,192 tons,
85.8% reduction in comparison of 2000 (40.5% reduction in comparison to 2003).

Chemical Substances subject to RPTR Law (tons; dioxins: mg-TEQ)
Substance
Zinc compound (water-soluble)

HandledEmissionsto AirEmissions to
PublicWatersTransferred to
Sewer
SystemTransffered
as Waste

Recycled

Consumed

Consumed
Removed

7.9

0.0

0.0

7.9

0.0

0.0

0.0

0.0

Bis(2-ehtylhexyl) adipate	1.3	

0.0

0.0

0.0

0.2	

0.0	1.1	

0.1

2-Aminoethanol	36.3	

0.0

0.0	10.5	25.8

0.0

0.0

0.0

Isophorone-di-isocyanate	20.9

0.0

0.0

0.0

0.3	

0.0	20.5

0.0Bisphenol A	1.0

0.0

0.0

0.0

0.0

0.0	1.0

Ethyl-benzene	202.6	3.3	

0.0

0.0	4.4	35.8

Ethylene glycol	23.1	

0.0

0.0

Ethylene glycol monoethyl ether	20.0

0.6

0.0

Ethylene glycol monomethyl ether	197.0

5.1	

Epsilon-caprolactam	21.0
Xylene	278.3	

0.0

74.9

80.0

0.0	19.3	

0.0	3.8

0.0

0.0	3.1	

0.0

5.0	11.4

0.0

0.0	15.8

0.0

78.4	

97.7

0.0

0.0

0.0	1.6

0.0	19.4	

0.0

8.8

0.0

0.1	

50.3	

Silver and its water soluble compounds	14.8

0.0

0.0

0.2	2.2	

5.3	1.0

6.1

Chromium & chromium (III) compounds	170.1	

0.0

0.0

0.0	48.6

88.8	23.6

9.1

Hexavalent chromium compounds	47.2	

0.0

0.0

0.0

0.6

0.1	27.0	18.4

Cobalt and its compounds	3.1	

0.0

0.0

0.0

0.9

0.8	1.3	

0.0

Inorganic cyanide compound	1.2	

0.0

0.0

0.0

0.3	

0.0

0.0

0.9

1,1 Dichloro-1-fluroethane	30.0	29.8

0.0

0.0

0.0

0.0

0.0

0.3

Dichloromethane

7.1	

89.3	122.7

6.0

0.6

0.0

0.0	1.2	

0.0

0.0	4.2

Styrene	1.1	

0.0

0.0

0.0

0.2	

0.0

0.8

0.1

−	33.90.0

0.0	255.0

0.0

0.0

0.0

84.6

5.0

Dioxins

Water soluble copper salts	464.1	

0.0

0.0

0.0	144.7	229.8

1,3,5-trimethylbenzene	11.2	

0.1	

0.0

0.0

Toluene	15,935.6	1,191.6

0.0

0.0	1,807.0	3,480.4	2,279.7

0.0

6.0	1.4	3.8

Lead and its compound	110.0

0.0

0.0

0.0

81.8

Nickel

5,389.6

0.0

0.0

0.0

0.0	2,811.7	2,550.3	27.7

Nickel compounds	1,651.6

0.0

0.0

0.0

94.0	1,557.6

0.0

0.0

Hydroquinone

7.7

0.0

0.0

7.7

0.0

0.0

0.0

0.0

Di-n-butyl phthalate	1.0

0.0

0.0

0.0

0.0

0.0	1.0

0.1

Bis (2-ethylhexyl) phthalate	24.1	

0.0

0.0

0.0	1.7

0.0	19.0	3.3

1,2,4-Benzenetricarboxylic acid-1,2-anhydride	11.2	

0.0

0.0

0.0

0.6

0.0	10.6

0.0

Boron and its compound	11.7

0.0

0.0

0.0

7.6

0.0	4.1	

0.0Octylphenol ether

5.2	

0.0

0.0

0.0

0.0

0.0

5.2	

0.0

Poly (oxyethylene) nonylphenyl ether	3.0

0.0

0.0

0.0

0.1	

0.0	2.9

0.0

Formaldehyde	2.5	2.5

0.0

0.0

0.0

0.0

0.0

0.0

Manganese compounds	15.7

5.1	

0.0	1.3	2.3	1.8

5.2	

0.0

Molybdenum compounds	1.5

0.0

0.0

0.0

0.0

24,728.9

1,247.5

0.0

27.8

2,271.2

0.0	28.3	

0.0	1.5
8,268.3

5,345.4

7,177.0
0.0

0.0
7,567.8* The data was collected from chemical substances that are included in the Class 1 Designated Chemical Substances in the PRTR Law that have an annual output of over 1 ton.

Resources Recycling (Office)We reached our targets in recycling used office paper

We are making efforts to separate office waste and collect wastepaper, so as to contribute to the building of a sustainable recycling society. Similarly tothe previous year, we were able to attain our wastepaper collection rate for 2004.

Results

Targets
Improve the used paper recovery ratio by 65% in comparison to the rate for municipal waste

Separation and collection of waste was carried out
in 30 sites in 2004, one site more than the previous
year, and the total amount of wastepaper was 1,242
tons with a collection rate of 73.8%. The amount collected at the large-scale Ichigaya Publication Printing
Operations site increased.

* Wastepaper collection rate
Waste paper collection/wastepaper collection + general waste amount(excluding cans, bottles, and garbage)

Wastepaper collection/Wastepaper collection rate

73.8

2,000

68.4
60.7

1,500

60
1,242

1,231
Wastepaper collection rate (%)

1,000

80

62.3

1,074

1,015

40

Cardboard (tons)
Magazines (tons)

500

20

Newspapers (tons)
High quality paper (tons)

0

0
’01

’02

’04

’03

Year

2001

2002

2003

2004

Waste paper collection

1,015

1,074

1,231

1,242

Cardboard

125

154

165

195

Magazines

740

770

930

906

Newspapers

78

65

65

52

High quality paper

72

86

71

88

657

651

569

441

General waste
Waste paper collection + general waste amount

1,672

1,725

1,800

1.683

Wastepaper collection rate

60.7%

62.3%

68.4%

73.8%

25

27

29

30

Number of sites

Resource Recycling (Water)

The DNP Group is making efforts in recycling water andfinding effective reuse of water.

Water used to clean products, cool down manufacturing facilities, and for air conditioning is recycled and 529 million m 3 of water was recycled* in 2004.
The water usage ratio* was 35.6 fold. In addition the C&I Building and DNP Logistics Co., Ltd. use rainwater. The amount of rainwater used in 2004 was
6,300 ㎥ and 32% of water used to flush toilets and water or greenery came from rainwater.

Transition of the amount of recycled water (1,000 m 3)
600,000
500,000

479,306

473,489479,604

523,556

Transition of the amount of rainwater used (m 3)529,420

6,000

6,310

6,210

5,000

400,000

4,850

4,820

4,660

'01

'02

'03

4,000

300,000

3,000

200,000

2,000

100,000
0

7,000

1,000
'00

'01

'02

'03

'04

0

Water Input-Output (The total amount for DNP Group in fiscal year 2004)
Evaporation
2,646,000 m3

INPUT
Water consum ption
15,307,000 m3

Flow of processes that use the water recycling system
529,420,000 m3

Wastewater
12,505,000 m3

'00

'04

* As water is mainly used for heating or cooling the manufacturing equipment,
air conditioning in buildings, and in product cleaning, the majority of plants arestarting to use recycled water through a closed system. The amount of recycledwater is the total amount that flows through heat exchangers and cleaning
equipments in these closed systems in one year.
* Water usage ratio = (amount consumed + wastewater amount + amount of recycled water)/amount of water used

Flow of processes that do not use the water recycling system

12,661,000 m3

OUTPUT

Product
156,000 m3

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

DNP GROUP CSR REPORT 2005

70

Environmental
performance

Efforts in Reducing Waste during the Production Process andEnhancing Effective Usage

We are making efforts to reduce waste and increase efficiency in our production processes, so as to contributeto the building of a sustainable recycling society. There was an increase in the total waste and disposal in 2004
due to the expansion of our operations, but we were able to improve the ratio of waste and recycling.

Targets• The total waste generation in 2004 was 528,000 tons,
in comparison to 646,000 tons in 2000, signifying an
18.3 % decrease. Nevertheless due to an increasein the size of production, there was increase of 9,000
tons in comparison with 2003.
• There are total of 10 zero emissions sites in 2004,
with Akabane Plant, the Commercial Printing
Operations, Ono Plant, DNP Media Create Kansai
Co., Ltd. and Chikugo Plant, DNP Kyushu Co., Ltd.
achieving zero emissions. There were 31 sites with
1% or less emissions going to the final disposal withseven of these added since 2003.
• The waste generation rate in 2004 was 13.8%,
marking a 22.0% achievement over the 2000 rate of
17.7%.
• The 2004 recycling rate was 79.5% roughly at thetarget level.

To achieve the following targets by 2005:• Reduce waste emissions per unit of production(waste emissions/production) by 40% from the 2000
level
• Reduce the amount of unused materials generated
by 25% from the 2000 level• Achieve zero emissions at 20 sites• Reduce undesired material generation ration (unused product generation amount/total material
inputs) by 20% from the 2000 level• Achieve an 80% recycling rate ratio (recycle amount/undesired material generation amount)

Results• Per unit waste in 2004 was 0.202 tons/100 million
yen, in comparison with 0.312 tons/100 million yen in
2000, signifying a 35.3% decease. Production is indicative of business activity, and represents the total
added-value for companies subject to disclosure inthis report.

Breakdown of undesired materials
Total amount of
undesired materials

100 %

3%

2% 2%

Wastepaper

Sludge18%

Waste plastic

Metal

Wastewater

Other

15%

525,000 tons

51%

Waste oil

9%

2% 3%
11%

Waste

37.5 %

49%

197,000 tons

1%
2% 3%

Commercial waste

62.5 %

20%

328,000 tons

10%

18%
3%

73%

5%
1% 6%

Waste subject to on-site
intermediate treatments

22.2 %
116,400 tons

9%

4%

80%

(Processed by on-site incineratorsand sludge dehydrators)

4% 11%
Waste not subject
17%
to on-site
13%
intermediate treatment

29%

11%

15.3 %

15%

80,600 tons

Waste after on-site
intermediate treatment(Ash, dehydrated sludge, etc.)

2.9 %
15,000 tons

Materials recycled 4% 10% 20%

Waste outsourced forintermediate treatment
and heat recovery

12%64,600 tons
(Amount recycled
12%
for a fee or free of charge)

1.9 %12.3 %

10%

32%

10,100 tons

Waste outsourced forintermediate treatment

2.4 %12,500 tons

3%
3% 11%
15%
12%
12%

44%

2%

Landfill waste amount

0.4 %
2,200 tons
(Indirect final waste amount after
intermediate treatment by outsourcers)

71

DNP GROUP CSR REPORT 2005

Landfill waste amount

8%

10%

39%

25%

1.6 %

10%

8,300 tons
(Final waste amounttransported directly from sites)

Resource Recycling (Waste)

Examples of the efforts being made by the DNP Group to achieve
the environmental targets

and improving the recycling rate by thoroughly separating waste and trader selection, and making effective
use of wastes by creating valuables (from paper waste,
used plastic, and sludge), recycle as paper items (paper waste), solid fuel (paper waste and used plastic),
distilled into waste oil. Regarding zero emissions, weare expanding waste from “form the production process to recycling” to “disposing from the plant” and toachieve the expansion of zero emissions at each site,
our target is to have below 0.5% of landfill usage.

Our efforts to reduce the waste generation and improve per unit emissions are tied to our “Production
21 Efforts” underway at our manufacturing sites. For
example,improving the percentage of non-defective products,
reducing lead time, reducing the total waste generation, improve the emissions and the waste generation
ratio.
On the other hand, we are aiming at zero emissions

Per unit waste emissions
Waste generation rate/recycling rate

0.5

100

0.413

sed products generation ratio (%)
ecycle ratio (%)

Information Communication

Total waste generation (1,000 tons)

15.4

15.1

14.8

13.8

’01

’02

’03

’04

75

72

519
65

528
63
65

148

142

166

166
180

94

97

99

99
100

202

195

189

189
185

’01

’02

’03

’04

20

18

96
16

32

25

93
17
21

’99

’00

55

63

205

222

70

86

93

2588

272

268

’98

’99

’00

60

0

20
0

800

400

500
181

200
0

180
15

90
BC

16

71

17
67

60

Lifestyle and Industrial Supplies
Information Communication

0.202

80

40

120

Electronics

0.202

17.7

0.1

Electronics
Lifestyle and Industrial Supplies

0.211

0.236

0.325

0.2

600

BC

79 5

0.312

0.4

’98
Waste missions (1,000 tons)

78.8

74.2

0.3
nit (tons/million)

77.6

71.9

0

27

27

31

30

34

37

39

39

21

21

19

19

’98

’99

’00

’01

17
’02

16
’03

14
’04

Made a Giant Step Forward in Fiscal Year 2004
[Kobe Plant, DNP Kenzai Co., Ltd.]Our plant, which produces wallpaper using vinyl and plastic, acquired the ISO14001 in January 2002 and improved
indexes regarding waste at our Sub-committee for Waste Reduction.
By linking with the “Production 21,” we have looked in the causes for waste generation and are endeavoring to improve
the amount of disposal and waste generation ratios. We choose to reduce loss and improve yields during the switchingprocess, and to improve the skills of our operators in 2004. As a result, we were able to reduce the amount of waste
to 0.419 from 0.499 in 2003, which is a 16% reduction. In addition, we were able to improve the waste generation ratio
significantly from 13.6% to 10.1%.
We are using vinyl as a material which is cannot be reused effectively and which there are no alternative other thenlandfill the wastes. It is vital to find ways to separate materials containing vinyl to improve the landfill usage and therecycle ratio. To do so, we asked cooperation from the production sites in fiscal year 2003 and improve the ratio ofsolid fuel. As a result we were able to improve the landfill ratio from 18.2% to 17.2% and the recycle ratio from 26.7% toTakeru Miyashita
35.2%. However, we must keep on finding effective measures to use vinyl as the amount of landfill is still high among
Group Manager
the DNP Group and as the recycle ratio is low.
Kobe Plant, Production, Promotion GroupDNP Kenzai Co., Ltd.

DNP GROUP CSR REPORT 2005

72

Environmental
performance

Complying Environmental Laws as well as Voluntary Standards and Guidelines

In addition to keeping track of trends in environmental regulations that apply to group operations, and maintaining compliance, in aneffort to maintain even stricter environmental controls, the DNP Group has established its own voluntary standards (water, air, odors,
noise, and vibration), as well as its own voluntary guidelines (chemical substance management, measure against ground contamination,etc.) which are strictly observed. Furthermore, the group promotes risk management, making efforts to prevent foreseeable accidents
and emergencies, establishing emergency response systems and performing drills in preparation for emergency situations.

We improved over 90% of overall data for air, water, odors, and vibration surpassed our voluntary standards.
Targets

Results

We aim to achieve the following targets by 2005.
• Keep maximum concentration of air emissions subject to emissions regulations at 70% of the required
standard or less• Keep maximum concentration of wastewater discharges subject to wastewater regulations at 70% of
the required standard or less• Keep the maximum level of noise at site perimetersat 95% of the required standard or less• Keep the maximum level of vibration at site perimeters at 95% of the required standard or less• Keep the maximum concentration of odors at our site
perimeters at 70% of the required standard or less

As shown in the table below, 2004 marked improvement over 2003 in attaining our targets in air, water,odor, and vibration. However, as we upgraded ourmeasurement guide for noise, the voluntary standards
decrease 4 points in comparison to the previous year
and compared to other environmental categories,
there are still room for improvement. We are making
improvements by installing soundproof walls.
We are voluntarily setting standards that are stricter
than legal regulations to prevent pollution at our plants
in air, water, noise, vibration and odor. We will be successively updating our environmental facilities and to
reduce environmental impact at our plants.

Environmental Laws and Regulations
We are making continual efforts to detect abnormalities in an early stage to prevent incidents of pollution in order tominimize environmental damage and the economic impact sustained as a result, as well as the risk of a loss of social
trust arising from such incidents. We are constantly monitoring trends in environmental laws and regulations, noting
their applicability to our business operations and products.

The table below exhibits the achievements we made in 2004
Item

Voluntary Standards (Targets)

Voluntary Standard
Achievement Ratios in 2003

Voluntary Standard
Achievement Ratios in 2004

Air*

Under 70% of legal standards

95%

96%

Water*

Under 70% of legal standards

92%

96%

Nose*

Under 95% of legal standards

60%

56%

Vibration* Under 95% of legal standards
Odor*
Under 70% of legal standards

100%

100%

90%

92%

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

Main improvement made in 2004
Main air pollution measures

Soot measurement
Change of fuel (from heavy oil to gas)
Installing processing equipment
Improving exhaust treatment equipment
Adjusting fuel for boilers
Boiler idling/discontinuance
VOC measurement
Increasing measurement sites
Emergency response drills

Main noise measures
Oily water separator, Kuki Plant,
Ichigaya Publication
Printing Operations

Soundproof wall, Okayama Plant,
Information Media Supplies
Operations

Noise measurement
Measures for printing noise
Measure for fork alarm
Measures for compressors
Measures for fans and pumps
Installation of blow noise reduction equipment
Measures against noise from exhaust fans
Install soundproof walls
Installation of automatic doors
Repair of wall joints
Regulation son equipment operating hours

Main water quality measure

Water quality measurements
Increase water disposal facilities
Installation of cyan water disposal facilities
Reduce nitrogen facility load
Install compressor processing equipment
Installation of leakage retaining walls
Separate and recover oily water
Replacement of ion-exchange resin
Change septic tank filter medium
Discontinue designated facilities
Installation of scale removal equipment
Cleaning of high pressure water discharged fromheaterResin filling of correctives
Emergency response drills

Main odor measures

Odor measurement
Installation and increase odor facilities
Update odor facilities
Update odor furnaces
Update odor furnace burners
Change exhaust shapes
Main vibration measure
Exchange odor processing agents
Vibration measurement
Exchange and regenerate catalysts in odor facilities
Compressor inspection and maintenance
Change the recovery equipment control methods
Maintenance of the printing press drive motors Increase temperatures in odor furnace equipment
Training in emergency measures

Liquid leaking wall, Warabi Plant, BF Operations* The voluntary standard achievement ratio is determined by multiplying the indexes measure for air, water, odors, noise, and vibrations in plants subject to regulations (total
measured indexes) by the target attainment indexes for each item.
* Air: Ratio of voluntary standard achievement index number against total measured index
number for Sox, particulate, NOx, and dioxin.
* Water: Ratio of voluntary standard achievement index number against total measured
index number for pH, CoD, SS, etc. (excluding eater temperature)73

DNP GROUP CSR REPORT 2005

* Noise: Ratio of time zones in which voluntary standards were achieved out of the total
number of time zones 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 which measurements were taken (daytime and night)* Odors: Ratio of voluntary standard achievement index number against total measured
index number for emissions duct odor density, perimeter fence odor density and numberof substances for which density measurements were taken.

Environmental Risk Management

Securing environmental conservation and product safety by establishing control standards for chemical
substances
We have established the “DNP Group Chemical Control
Standards” for the monitoring and control of toxic chemicals, including raw materials, and to ensure productsafety 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.” The chemicals are for all products
and materials used in the manufacturing processes
sold by the DNP Group.
In 2004, we carried out a survey according to the
DNP Group Chemical Control Standard and createda database for the chemical contents contained in
23,000 materials that resulted from the survey. We created a data sheet for the approximately 330 products
from the whole DNP Group and established a systemthat can secure environmental conservation and product safety.
In addition, as the chemicals and solvents may leak
during deliveries to the plants or during waste disposal, we endeavored to prevent accidents by enacting
a Chemical Substance Management Guide, by setting up levees to prevent the liquid from overflowing in
the delivered plants, and by creating two-tier storage
tanks.

Furthermore, in case of emergencies, we stocked
up materials that can be used during emergencies andheld emergency training drills.

DNP Group Chemical Control Standard
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 products.

3) Inclusion in product controlled: 13 chemicals.
These are chemical for which inclusion in DNP products ismonitored.

Actual emergency drills

Management of Chemical Substances

Chemical Substance Management Guide
Each site
Usage Supervisor

Environmental
Committees in Each
Operations

PRTR
Group

Warehouse Supervisor

Storage Tank supervisor
Promotion
Waste Supervisor*Please refer to page 34 for chemical substance control when purchasing.

1. Establishing a Chemical SubstanceManagement System
2. Monitoring Amount of chemical Substances
Handled3. Implementing Chemical SubstanceManagement(1) Examining Facilities(2) Managing Waste that Contains Chemical
Substances(3) Restricting Emissions through Facilities
Improvement(4) Management by Production Process(5) Proper Usage

Ushiku Plant,
DNP Data Techno Co., Ltd.
City gas leak response drill

4. Preparing for Accidents and Emergencies
5. Education and Training
Mihara Plant,
DNP Precision Devices Co., Ltd.
Chemical leak response drill

Examples of Emergency Training
Category

Site

Content of Drill

Prevention

Mihara Plant, DNP Precision Devices Co., Ltd.

Processed gas leak response drill Air Pollution

Ushiku Plant, DNP Data Techno Co., Ltd.

City gas leak response dril

Warabi Plant, BF Operations

Waste oil leak response drill

Mihara Plant, DNP Precision Devices Co., Ltd.

Chemical leak response drill

Ushiku Plant, DNP Data Techno Co., Ltd.

Chemical leak response drill

Odor Prevention

Warabi Plant, BF Operations

Response drill for abnormalities in deodorization equipment

Ground Pollution Prevention

Tokyo Plant, DNP Ellio Co., Ltd.

Response drill to prevent outflow

Water Pollution Prevention

Warabi Plant, BF Operations
Response drill for abnormalities
in deodorization equipment

Tokyo Plant, DNP Ellio Co., Ltd.
Response drill to prevent outflow

DNP GROUP CSR REPORT 2005

74

Environmental
performance

Environmental Risk Management

Soil and Groundwater Contamination and Reduction Measures
The DNP Group ensures that ground surveys are
performed as specified in the Water Contamination
Prevention Law whenever a site has used a hazardous substance or when it decided to abolish certain
facilities. Furthermore, we also make it a rule that in
the event that ground contamination is discovered, thesite must notify the governor of the prefecture concerned and perform appropriate measures such as theremoval of the contaminated ground under supervision. In 2004, we performed ground and groundwater
examinations of the sites listed here. We carried out
an inspection based on the Saitama Prefectural Life
Environmental Conservation Ordinance with the dismantling of some buildings at the Kamifukuoka Plant
due to aging. As a result, we carried out water purifying
processes and periodically monitored the water quality
to check the effects of the process because we foundmercury and 1.1 dicholoroethylene, which is a naturesolvent substance of trichloroethylene, in some of theunderground water. The amount found exceeded theenvironmental standard. (Mercury was 3.2 fold and1.1 dicholoroethylene was 2.5 fold the environmental

standard.)
In addition, as we found mercury and hexavalentchromium in the surface soil, we removed all contaminated soil under the orders of Saitama Prefectural
government and filled the land with uncontaminatedsoil. We held meeting for residents living in the surrounding areas to explain our operations and have
implemented measures. We have confirmed that there
is no contamination at other surveyed sites.

Sites inspected for soil and groundwater pollution in 2004

Groundwaterinspection

Tokyo Plant, DNP Kenzai Co., Ltd.
Kamifukuoka Plant (Electronics Segment)
Kyoto Plant, DNP Fine Electronics Co., Ltd.
Mihara Plant, DNP Precision Devices Co., Ltd.
Fukuoka Plant, DNP Kyushu Co., Ltd.

Soil inspection

Kamifukuoka Plant (Electronics Segment)

PCB is stored, inspected, and reported daily with our internal audits
PCBs are currently in storage at 26 sites. There is a total of 289 units, an increase of 16 units from 2003. The
PCBs were contained in electric equipment that wasused 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 the strictest of conditions in accordance with applicable regulations to ensure prevention of leakage orloss. Each site makes sure the PCBs are stored in theappropriate manner, performing daily inspections andmaking regular reports to the authorities, and confirming storage conditions in annual internal audits.

Regulatory infringements/accidents/complaints
Although we do our best to comply with all environmental laws and regulations, over the past three years
there has been one discharge of effluent into the river,
one case of abnormalities in the disposed water quality, and one accident involving a leakage of solvent.
There are no ongoing legal disputes involving enviDate of occurrence Name of site

DNP GROUP CSR REPORT 2005

Summary

Fukuoka Plant,
DNP Kyushu Co., Ltd.

Due to an error on the part of the contractor, a hose disconnected from a collection truck during the collectionof wastewater from the plant, resulting in a discharge of effluent into a river. The effluent consisted of water for
cleaning printing plants, water used for dampening in the printing process, and small amount of lubricant. Afterthe accident occurred, based upon instruction from the authorities we took emergency measures by putting
in place sandbags and an oil fence, and commenced operation to clean up the effluent that was floating on thesurface of the river. After the accident we revised our procedures for in-plant operations by outside contractors,
and also revised the communication structure to be used in the unlikely event of an effluent discharge. We also
overhauled our emergency equipment to be used to minimize environmental pollution in such cases.

March 29, 2004

Ichigaya Plant, Ichigaya
Publication Printing
Operations

There was an accident involving the leakage of ink dilution solvent, which was caused by deterioration in a pipe
fitting in a gravure ink pipe. The worksite alarm was sounded immediately after the leak occurred, and the ink
supply pump was shut down. Nevertheless, approximately 50 liters of ink leaked outside the premises. Sand andother materials were immediately laid to absorb the solvent, and while a portion did flow into the gutter, there wasno leakage into the main sewer. After the accident occurred, we took measures to prevent any expansion of theleakage, and we filed accident reports with both the local fire department and the water bureau. We proceeded totake measurers against recurrence under the guidance of the fire department.

August 24, 2004

Ushiku Plant,
DNP Data Techno Co., Ltd.

An accident occurred when the BOD and COD value of the final discharged water was above the standard
criterion. It was caused by a good quantity of isoprophy alcohol and anon used for printing in the air conditioning
drains in the plants. We exchanged the pipes to clear the drainage in the drains which completed our measuresagainst reoccurrence.

April 11, 200275

ronmental issues. We have unfortunately had somecomplaints from areas neighboring our plants concerning noise and odors. Whenever we receive suchcomplaints, we launch a thorough investigation into thecause of the problem and work to make improvements
to prevent a recurrence.

Environmentally Conscious Products

We have developed and sold Environmentally Conscious products andhave reached our sales targets.

In order to reduce the environmental impact throughout the product lifecycle, we have been promoting the development and sales of environmentallyconscious products by establishing an “Environmentally Conscious Product Development Guidelines”. This is based on “Consideration of the Lifecycles
of Products and Services”, which is contained in the Green Purchasing Network’s “Basic Green Purchasing Principles” (revised June 12, 2001.) We wereable to reach our sales target for environmentally conscious products as the total was \164 billion in 2004, an increase of 16.8% over the previous year.

Targets

The Information Communication Segment has strongly increased its sales of products containing recycled
paper a 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 productsthat contain no cholorinated materials, and for products that are now made of paper instead of plastic, as
well as its products that use reduced amounts of raw
materials and products that use water-based ink. The
Electronics Segment made a big contribution to theincrease in Group sales with its sales of product containing no heavy metals, and also of its products thatare made without using organic solvents in the manufacturing process. In addition, there was an increasein the sales of magazines made through methods that
improve recyclability.

• Improve year-on-year sales of environmentally conscious products by 10%

Results• We were able to reach our sales target for environmentally conscious products as the total was 164
billion yen in fiscal year 2004, an increase of 16.8%
over the previous year.
* Please refer to page 28 for our developmental
policies of environmentally conscious products.

Sales of environmentally conscious products

2,000(Unit: billion yen)

1,404

1,500

160
1,000
BC
Electronics
Lifestyle and Industrial Supplies

500

757
137

630
108

529

464

Information Communication

0

1,019
153
195
575

1,640
157
494

356

746

769

58

91

96

142

220

'00

'01

'02

'03

'04

Green Purchasing

Promotion of Green Purchasing in Raw Materials and Office Supplies

We are promoting green purchasing to reduce upstream environmental impact and to create a sustainable recycling society. Although we endeavored topurchase raw materials that are environmentally conscious in 2004, the purchasing ration was below the previous year. On the other hand, we increased
the registration of environmentally conscious products for general materials and were able to reach our targets. We revised our achievement target for2010 to clarify out environmental goals.
* Please refer to page 64

Targets• Increase the purchasing rate for products covered byour own company standards* (Purchasing Division
Green Purchasing Standards) of the total amount ofmaterials and supplies purchased by 2.5% in comparison with the previous year
• Increase the purchasing rate of environmentally certified products, such as those labeled with Eco-Mark,of total supplies (office supplies and equipment) by
3% in comparison with the previous year

Results
Our purchasing rate for environmentally conscious raw
materials for 2004 was reduce by 0.7% in comparison
with the previous year but we improved the generalmaterial purchasing ratio by 4.5%.
Raw materials (paper, ink, and manufacturing supplies)
We increased the amount of ECF and TCF pulp paper,
as well as increased the purchasing of ink using recycled solvents. On the other hand, the environmentallyconscious product rate dropped from the previous year

as there was an increase in purchases for metals fordisplays and films for industrial materials which are notenvironmentally conscious products. We introduced a
new proposal to improve this situation.
General supplies (office supplies and equipment, etc.)
We increased the registration of environmentally conscious products in our material purchasing system in
our Purchasing Head Office.
Furthermore, we tabulated, based on 2001, the resultsby limiting to office supplies and equipment excluding
revised purchasing items for sundries.
Green purchasing trend (Unit: %)
30

26.1

30.6

21.6
20
10

Ink: Soy ink, water-based ink, andnon-toluene ink (ink that
does not contain toluene); substitute solvent,recycled solvent.
Manufacturing supplies:
Eco-mark products,
processed materials andrecycled materials
Subject to this tabulation
are 32 sites underjurisdiction of DNP’s
Purchasing Division

17.6
15.9
Raw materials

0* Products covered by ourown company standards:
Paper: Paper containing
recycled pulp, non-wood
pulp paper, ECF/TEF
pulp paper (paper thatis made from non-cholorine bleached pulp).

'01

24.3

23.6

'03

'04

18.6

General supplies'02* Please refer to page 33 on our green purchasing policies.
DNP GROUP CSR REPORT 2005

76

Environmental
performance

Activities at Overseas Sites

The Eco-Report System will be introducedin our overseas sites.

We introduce the Eco-Report System in our overseas plants and offices to enhance environmental management
as well. By complying with laws and regulations of each country, we will promote activities such as energy
conservation, waste reduction, and recycling.

The Promotion Office at headquarters visited all
manufacturing sites (8 plants) and offices in 2004 andchecked as well as gave advice on the environmental
management at each site. Moreover, to upgrade theenvironmental management at each overseas sites,
we decided to introduce the Eco-Report System from2005 (Please refer to page 55) and will undertake pilot
tests.

Even at our manufacturing plants, as well as complying with laws and regulations of each country, we
will set up targets for energy conservation, waste
reduction, and recycling to promote environmental
conservation. We will promote energy conservation,
paper waste reduction, and recycling even in the offices by setting up targets.

Overseas Manufacturing Sites
1. DNP Photomask Europe S.p.A.
2. DNP Denmark A/S
3. DNP IMS America Corporation
4. DNP Electronics America, LLC

2
1

6. Tien Wah Press (Pte.) Ltd. (Johore)
7. PT DNP Indonesia (Progadon)

3

4

5. Tien Wah Press (Pte.) Ltd. (Singapore)
6

5
7 8

8. PT DNP Indonesia (Karawan)

Overseas Offices
Dusseldorf, London, Paris, New York, Los Angeles,
Silicon Valley, San Francisco, San Marcos, Seoul,
Shanghai, Taipei, Singapore, Sydney

Current situation of environmental impact (1 -6 tabulated between April 2004 and March 2005; 7-8 was tabulated between January 2004 and December 2004)

Checking water drainage
PT DNP Indonesia, Karawan

Checking levees to prevent
liquid leaking
Tien Wah Press (Ptd.) Ltd.
Singapore

Checking traceability
PT DNP Indonesia, Progadon

77

DNP GROUP CSR REPORT 2005

CO 2 emissions

Final amount of waste disposals(unit: tons)

VOC emissions(unit: tons)

1. DNP Photomask Europe S.p.A.
Agrate, Italy; manufacturing Photomask

2,498 ton-CO2

47 tons

Less than 1 tons

2. DNP Denmark A/S
Carlslund, Denmark; manufacturing projection television screens

1,274 ton-CO2

70 tons

1 tons

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

1,688 ton-CO2

182 tons

Less than 1 tons

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

1,870 ton-CO2

5 tonsLess than 1 tons

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

15,064 ton-CO2

767 tons

358 tons

6. Tien Wah Press（Pte.）Ltd.（Johore）
Johore, Malaysia; offset printing and binding

43,394 ton-CO2

278 tons

76 tons

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

21,022 ton-CO23,500 tons

2,529 tons

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

13,028 ton-CO2

835 tons

2,727 tons

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

Checking environmentally related facilities
DNP Denmark A/S

Checking environmentally related facilities
DNP Photomask Europe S.p.A.

Checking the surroundings of the plant
DNP Electronics America, LLC

Checking the recycling situation
DNP IMS America Corporation

Promoting the acquisition of ISO14001, CoC and EPD certificates

Environmental
performance

Targets• To achive ISO14001 certificates

Results• Was able to acquire the certificate at a total of 21
systems and 27 sites as of June 2005.

ISO14001 Certificates
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

Site
Okayama Plant, Information Media Supplies Operations
Mihara Plant, Display Components Operations
DNP Facility Services Co., Ltd.*
Okayama Plant, Decorative Interiors Operations
DNP Tokai Co., Ltd.
Sayama Plant, DNP Technopack Co., Ltd.
Kobe Plant, Decorative Interiors Operations (same system with No. 4)
Tokyo Plant, The Inctec Inc.
Kansai Plant, The Inctec Inc. (same system with No. 8)
Utsunomiya Plant, The Inctec Inc.
Ushiku Plant, BF Operations (same system with No. 8)
DNP Technopack Tokai Co., Ltd.
Tien Wah Press (Pte.) Ltd.
Chikugo Plant, DNP Kyushu Co., Ltd.
Kyoto Plant, Erectronics Devices Operations
Sayama Plant, Information Media Supplies Operations
DNP Media Create Kansai Co., Ltd.
Advanced Colortech Co., Ltd.
Tokyo Plant, Decorative Interiors Operations (same system with No. 4)
Kami Fukuoka Plant, Electronics Devices Operations
Fukuoka Plant, DNP Kyushu Co., Ltd.
Itabashi Area, DNP Logistics Co., Ltd.
Tokyo Plant, DNP Ellio Co., Ltd.
Osaka Plant, DNP Ellio Co., Ltd. (same system with No. 23)
Warabi Plant, BF Operations (same system with No. 11)
Nara Plant, DNP Data Techno Kansai Co., Ltd.
DT Fine Electronics Co., Ltd.*

Date*
1997.11
1998.7
2000.4
2000.7
2001.5
2001.12
2002.1
2002.1
2002.1
2002.1
2002.3
2002.3
2002.5
2002.6
2002.7
2002.10
2003.3
2004.1
2004.1
2004.3
2004.6
2004.10
2005.1
2005.1
2005.32005.6
1997.3

Registration Organization
JIA-QA*1
DNV*2
AJA*3
JIA-QAJIA-QADNV
JIA-QAJCQA*4
JCQA
JCQA
DNV
JCQA
PSB*5
DNV
DNV
JIA-QAJIA-QAJCQA
JIA-QAAJA
DNV
AJA
LRQA*6LRQA
DNV
DNV
JACO*7

Indicates the first registration date.
DNP Facility Services Co., Ltd. acquired the certificate as a comprehensive
management system of quality, environment, labor safety and food sanitation;
the initial registration organ was JIC_QA (JIC Quality Assurance Ltd.)*DT Fine Electronics Co., Ltd. registered as part of Toshiba Corporation(Semiconductor Company) (Kawasaki-shi, Kanagawa Pref.)*1 JIA-QA
Japan Gas Appliances Association, QA Center*2 DNV
Det Norske Veritas (Norway)*3

We are acquiring an “S-mail recycled paper type”
Eco-Mark for the environmental label and are promoting the CoC certificate as Type 1 environmental label.
The CoC certificate certifies that the prints use “forest
certificates” that are credited to forests that have environmental-oriented management. We are endeavoring
to promote the sales of CoC certified products.
Furthermore, we acquired the EPD certificate inJune 2005 as an information-oriented Type III environmental declaration program, for the fused thermaltransfer materials in addition to the dye-sublimationtransfer materials. EPD is an environmental declaration program developed by Sweden’s Environmental
Management Committee to disclose LCA data thathave gone through third party reviews.

*
*

*4
*5
*6
*7

We have been continuously updating our environmental management
system by incorporating ISO 14001 certified systems taking into account thecharacteristics of each business domain based on the Eco-Report System.
Furthermore, to be able to provide information on environmental impact, weare promoting the acquisition of the Environmental Label certificate.

Five new sites acquired the ISO 14001 in 2004. In addition to DNP Data Techo Kansai Co., Ltd. and DT Fine
Electronics Co., Ltd., which is registered as an affiliationof Toshiba Corporation (Semiconductor Company), as
of June 2005, there are a total of 21 systems and 27
sites that have the certificates.

Acquisition of Certificates

AJA
AJA Registrars Ltd.
JCQAJIC Quality Assurance Ltd.
PSBPSB Certification Pte Ltd(Singapore)
LRQA
Lloyd’s Register Quality Assurance Ltd.
JACO
Japan Audit and Certification Organization for Environment and Quality

CoC and EPD Certificates
Name of certificate

Certification Limits

Date*

Registration Organization

CoC for FSC*8

DNP Tokai Co., Ltd.

2002.10

SGS*10

CoC for FSC

Commercial Printing Operations

2003.8SGS

CoC for FSC

DNP Media Create Kansai Co., Ltd.

2003.9SGS

CoC for PEFC*9

Packaging Operations

2004.1

JIA*11EPD

Dye-sublimation transfer materials (2 types)

2003.3JIA

EPD

Fused thermal transfer materials (8 types)

2005.6JIA**8The date is the first registration date.
FSC
Forestry Stewardship Council Chain of Custody standards*9 PEFC
European Forest Certification Program PEFC (Program for the Endorsement ofForest Certification Scheme) Chain of Custody standards

EPD Certificate*10 SGS
SGS ICS Japan Co., Ltd.
*11 JIA
Japan Gas Appliances Association

DNP GROUP CSR REPORT 2005

78

Environmental
performance

We manage our costs and economic benefits
by improving our environmental activities.

Environmental accounting is being tabulated according to the guidelines by the Ministry of the Environment
and is used as a social communication tool and as an environmental management tool. In 2004, we reduced air
emissions of PRTR substances by continuing investment in facilities for recovery and disposal of solvents. We are
improving our cost reduction through our “Production 21 Efforts”.

We disclose our environmental accounting by tabulating various data concerned with environmental conservation.

Targets

evaluate the effects and achievements of activities
performed throughout the year in order to ensure
continuous improvement in our environmental
performance.
(2) Use as a tool for communicating with society• Environmental accounting provides the means for
public release of our environmental conservation
efforts and their results.
• The reception to concerning our environmental
accounting reports as received from shareholders, clients, and local communities we use as areference for improving our approach to environmental conservation.

(1) Use as an environmental management tool for DNPGroup• Environmental accounting produces a breakdown
of environmental conservation costs as that canbe used as a reference for determining the effectiveness of environmental conservation activities.
• Environmental accounting data is used to determine the cost of individual environmental facilities,
the Group’s overall budget for environmental
conservation, and the amount of investment in environmental activities.
• Environmental accounting is used to monitor andBasis for calculation of environmental accounting information

1) Period covered: April 1, 2004 through March 31, 2005 (Environmental conservation facilities are those considered as of March 31, 2005)
2) Scope of coverage: Environmental accounting was applied to the companies designated for consolidated accounting purposes, including the group’s
domestic manufacturing companies (44 companies and 54 sites), one distribution company and one meal catering company, but excluding elevenother companies, including those related to trading, real estate sales, teaching material sales and software development.
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. However,the detailed tables are documented on our website.
5) Basis for costs of environmental conservation activities• 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 costs per person, while personnel costs for workers holding two or moreposts 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 sound products and manufacturing equipment.
6) Basis for benefits of environmental conservation activities• DNP uses consumption per added-value as an indicator for the volume of resources (energy and water) spent on business activities, as well as for thevolume of waste materials and CO2 emissions. Furthermore, the DNP group uses the added-value total of the company concerned as an indicator of
the volume of business activities, given that companies within the group perform product transactions. The added-value amount is calculated pursuant
to the “Management Analysis of Japanese Corporations” issued by the Ministry of the Economy, Trade and Industry.
• The recycle rate of waste materials represents the percentage of the weight of unwanted plant-generated materials that were recycled on- and off-site.
• Benefits of up/downstream costs are the effects of reduced CO2 emissions when disposing of containers or packaging.
• Benefits of environmental impact of transportation are the benefits of reduced CO2 emissions during transportation of products by the distribution
companies included in DNP’s consolidated accounting.
7) Basis for economic benefits of environmental conservation measures• We have calculated the benefits of energy- and resource-saving efforts using the following formula: (Energy consumption per added-value amount or
waste processing cost per added value of benchmark period those of this period) value-added amount.
• Calculation of business activity amount was performed using the added-value amount indicated in Item 1 of the above benefit calculation basis.
• For unit consumption, we used energy costs/added-value amount and waste disposal costs/added value amount.
• For the benchmark period, the consumption or cost per value is the overall average of the three years prior to this fiscal year. In calculating unit
consumptions.
For the benchmark period, however, the energy cost was adjusted to this fiscal year’s price level due to dramatic price fluctuations.

Results of Our Environmental Accounting
Table (1) Environmental conservation cost (Categorized according to business activities)
ExpenseInvestment
Category

2003(1) Business area costs
1,208
Pollution prevention costs
Global environmental conservation costs
246
Resource recycling costs
97(Total business area costs)(2) Up/downstream costs(3) Administration costs

1,552

2004

2003

1,552

Details of Major Efforts

Refer to:65,66,69

854

2,760

2,885

Expanded facilities for solvent recovery, expanded facilities for deodorization, expanded facilities
for wastewater treatment, setting up noise-proof walls

101

1,158

1,050

inverter power, control of room temperature and lighting

171

3,261

3,725

Separation and recycling, zero emissions (RPF and raw materials/fuel for cement), water reuse

1,126

7,179
181
2,189

7,660
129
2,036

Designing environmentally conscious products; bearing container and packaging recycle costs

76

Cost of ISO 14001 judging and registration fees; environmental measurement costs; cost of
preparing environmental reports

53-58,78

2,411
12

2,386
11

Research and development of environmentally conscious products and production methods

72,76(4) R&D costs(5) Social activity costs(6) Environmental remediation costs
Total

2004

23
65
1,126 11,995 12,287

67
70,71,72

Cleaning of sites outside the plants, site; supporting activities of environmental conservation
organizations*75* Includes ¥400,000 for WWF and ¥200,000 for Japan Greenery Research and Development Center

Environmental conservation costs to total costs ratio
Category79

DNP GROUP CSR REPORT 2005

Consolidated Total Costs Costs

Ratio

In-period investment

86,057 1,126

1.31%

Details of Major Environmental Conservation Costs
Refer to:
Solvent and exhaust gas recovery and refining equipment, water recycling
65,66,69
system, etc.
Non-vinyl chloride decorative sheets, de-chlorinating barrier film, biodegradable
9.04%
72,76
plastic, aqueous ink

In-period R&D costs

26,386 2,386

Environmental Accounting

Table (2) Environmental Benefits of Environmental Conservation Activities
Category

Value

Category of indicator showing benefits

Supplied main raw materials (paper, plastic,
metal, etc.)

Refer to:

800
0.06

All consumed energy was converted into average value
in calories
Energy reduced by 0.05TJ per 100 million yen in added
value

67
67

15,307
3.24

1,168
0.17

Water supply, industrial water, and well water
Water reduced by 170 m 3 per 100 million yen

70
70

2,560
13.8

30
-1.0

Total weight of paper, plastic, ink and metals
Ratio of unwanted materials that are main raw materials

61
61

2004

19,3004.19

20,100
4.25

Water usage (in thousands of tons)
Added-value unit consumption for the above (1,000 tons/100
million yen)

14,1393.07

Supplied amount (in thousands of tons)
Amount of undesired materials generated/supplied (%)

2,530
14.8

(1) Benefits of costs incurred at the area of business• Benefits arising from supplied resources
Energy consumption (TJ)
Added-value unit consumption for the above (TJ/100 million
Supplied energyyen)Supplied water

Remarks

2003

Difference• Environmental conservation benefits regarding waste and environmental impact due tobusiness activities
Emissions to theatmosphereSOx emissions (tons)
NOx emissions (tons)
Emissions of environmental pollutants (354 PRTR substances)(tons)

25.2
660.3
2,204

22.6
702.1
1,248

-2.6
41.8
-956

Calculated from supplied energy
Calculated from supplied energy
Total of 12 substances subject to be reported

61,65
61,65
69

Discharges to water

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

49.7
0.3

52.9
0.0

3
-0.3

Calculated from the amount of discharged water andaverage concentration
Four substances discharged in 2004

62,66
69

Generated undesired materials (1,000 tons)
Discharged waste (1,000 tons)
Added-value unit consumption for the above (ton/1 million yen)
Recycle rate (%)
Emissions of environmental pollutants (354 PRTR substances)(tons)

519.3
93.1
0.202
78.8
2,146

528
95.5
0.202
79.5
2,271

8.7
2.4
0.000
0.7
125

Including undesired materials other than main raw
62,71,72
materials
62,71,72
Total waste subcontracted to waste disposal companies 71,72
The value-added cost per waste disposal amount is the
71,72
same as last year Including heat recovered on site
69
Total for 27 substances reported

899
187

936
190

37
3

Including amounts emitted by incinerators and drying
furnaces
Reduction of 3-tons emissions per 100 million yen

369.6
1.45

395.3
1.46

25.7
0.01

Emitted at incineration and recycling of used containers
and packaging
CO 2 emissions per ton of products reduced by 0.03 tons

4,630
79

4,630
76

0
-3

CO 2 emissions are the same as last year
CO 2 emissions reduced by 3 tons for each ton of goods
transported 1 million ton-km

Discharges of waste

Emissions of greenhouse gasses

Emissions of greenhouse gasses (1,000 t-CO 2)
Added-value unit consumption for the above (ton-CO 2 /100
million yen)

(2) Environmental conservation benefits regarding goods and services from business activities• Benefits related to goods produced by business activities
CO 2 emissions (1,000 t-CO 2)
CO 2 emissions at the
CO 2 emissions / volume of products
time of product disposal(3) Other environmental conservation benefits• Benefits of environmental impact of transportation
CO 2 emissions during transportation (tons)
CO 2 emissions during transportation: CO 2 /(weight × distance)(ton/million ton·km)

61,62,67

68
68

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

Value
2003

2004

140,424

163,975

23,551

2,359

3,048

-301
391

-861
263

Remarks

Difference

Refer to(1) Increased sales• Economic benefits of R&D costs
Sales of environmentally conscious products

16.8% increase from 2003

76

689

Increase due to separation and recovery

71,72

-560
-128

Energy cost unit consumption substantially improved
The basic unit improved but the range was 66% of the previous year

67
71,72

(2) Increased income• Benefits of resource recycling costs
Income from recycling undesired materials(3) Cost savings• Benefits of global environmental conservation and resource recycling costs
Saving energy costs by energy conservation
Saving waste processing costs by resource conservation

Evaluation of 2003 Environmental Accounting Performance Data
Environmental conservation costs and environmental conservation measures• The investment for environmental facilities in 2004 was less than 426 million yen (27.4%) than the previous year. This is due to the investment in large facilities to reduce VOC emissions (catalytic deodorizer
and solvent recovery equipment) reached its peak in 2003 and the gasification of heavy oil was close to completion by 2003.
•The environmental conservation cots increased 2.4% from the previous year. The business area costs increased due to the depreciation costs in facility investments for odor measures. Among the 129 million
yen used for up/downstream, 125 million yen was used as reproduction consignment fees paid to the Japan Containers and Packaging Recycling Association and decreased due to the change in the orderingformat of Hokkaido Coca-Cola Bottling Co., Ltd. There was a decrease in the R&D for environmentally conscious products, as part of the topics in the research centers transferred to the operations.
Environmental conservation benefits• Approximately 760 million yen was invested in equipment for solvent recovery/elimination in 2004, and air emissions of PRTR substances were reduced by 956 tons.
• SOx emissions were reduced by 10% due to conversion to LNG.
• With the expansion in the business, the disposal of waste and undesired materials increased, but the recycling rate improved by approximately 1 point. On the other hand, with the increase in energy andwater input, the deterioration of the basic unit stopped at 1.4% as we endeavored to improve the installation of inverters and production efficiency.
Economic benefits of environmental conservation measures• Sales of environmentally conscious products increased by 16.8% in comparison with the previous year, broadly exceeding the target with a 10% increase.
• Business revenue increased by 689 million yen in comparison with the previous year due to recycling of waste.
• The cost reduction benefit is calculated according to item on the previous page, “Basis for economic benefits of environmental conservation measures”.
In 2004, the added value amount increased 3.9% in comparison to the standard time period (3-year average for the period 2001~2003), though the per unit waste improved. While the range was lower incomparison with the previous year, a reduction was achieved. At the same time, per unit energy consumption worsened, and there was no economic benefit achieved from cost reduction.
Future Challenges• We will achieve the targets for VOC emissions, the solvent recovery and elimination equipment will be implemented.
• We will encourage “Production 21” to reduce waste in the production process and to further improve eco-efficiency.

DNP GROUP CSR REPORT 2005

80

Environmental
performance

Environmental Education

Type of Training

Course Name

Description

Education for New
Recruits

Environmental
Activity Overall(required)

Basic environmental knowledge
and conservation efforts of the DNP
group

1994

Technical Seminar

How DNP Deals with
the Environment(required)

Basic knowledge of the environment
issue, its impact and improvementmeans such as environmental
conservation facilities

1997

Technical Seminar

Environment(optional)

Network Learning

Environmental
Issues and Business(required)

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

Correspondence
CourseOptional

Environmental laws and regulations

Held in Eligibility

1999

All new recruits

Technicians intheir 2nd year of
employment
TechniciansTime of year

Total Participants

When joining thecompany

3,235 persons

Fiscal year of attending the seminar

2,278 persons

At irregular intervals

150 persons

Employees with morethan 2 years experience in the sales andplanning divisions

Employees can decide7,203 persons
themselves

Beginners class on ISO 14001 andLCA

All employees of DNP
Group

Semiannual–

Eco-report Training

Environmental
Issues of the Group(required)

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

1993

Site members andfactory-related
personnel of theoperations 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 irregular interval

263 persons

2000

Achievements on Environmental Issues
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

DNP wins the International Trade and Industry Minister’sPrize in the “Fourth Global Environmental Awards”,
which commend companies and groups that contributeto conservation of the global environment. (The Awards
was established in 1991 by the Japan Industrial Journal
and the Fuji Sankei Communications Group, with special
support by WWF Japan and sponsorship by the Ministryof the Environment, the Ministry of the Economy, Tradeand 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

1997

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

1998

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 the system for promoting environmental activities
The affiliate DNP Facility Services Co., Ltd. becomes thefirst in the world to be certified as a comprehensive systemwith quality, environment, office safety and HACCP*1
Okayama Plant, Decorative Interiors Operations acquires
ISO 14001 certification

81

DNP GROUP CSR REPORT 2005

2001

DNP Tokai Co., Ltd., and Sayama Plant, DNP TechnopackCo., Ltd. acquires ISO 14001 certification

2002

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

2003

Environmental Report Division receives “6th Environmental
Report Grand Prize” for superior reporting
Acquisition of ISO 14001 certification by: Ono Plant, DNPMedia Create Kansai Co., Ltd., Advanced Colortech, Inc.,Tokyo Plant, Decorative Interiors Operations , Kamifukuoka
Plant, Electronics Devices Operations  
Commercial Printing Operations, DNP Media Create Kansai
Co., Ltd. acquired FSC-CoC certificate and The Packaging
Operations acquired the PEFC-CoC
Registered Type III environmental label certificate forthe two types Dye-sublimation transfers materials of theInformation Media Supplies Operations

Jun. 2004

Fukuoka Plant, DNP Kyushu Co., Ltd. acquires ISO 14001
certification

Oct. 2004

DNP Logistics Co., Ltd. acquires ISO 14001 certification

Jan. 2005

Implements Eco-Report System in overseas sites

Feb. 2005

Awarded the Minister of the Environment Prize in “The 14 th
Global Environment Awards”  

Mar. 2005

BF Operations acquires ISO 14001 certification

Apr. 2005

Awarded the Best Sustainability Report at the 8 thEnvironmental Report Award

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

Current situations of DNP Group Environmental Management Activities
Evaluated Points
1. The Eco-Report System is an excellent environmental management system where the DNP Group environmental
management target is conveyed to each site and is characterized by monitoring, in detail, the operational situationsof the PDCA cycle as well as the targets for each organization.
2. The DNP Group is showing significant results in reducing chemical emissions, waste disposals, and per unit CO 2
emissions. These results have been created by knowledge of employees such as a positive execution of investments
in environmental facilities, operational improvement in the implemented facilities, as well as an improvement in theoperational management methods.
3. Not only the top management but also all concerned people can grasp the operation situation of the environmental
management system efficiently according to the importance because of the hierarchical the information of the CSR
report (annual), the Group Eco-Report (first and second semester) and the Site Eco-Report (monthly).
Future Challenges
4. There is much difference between each business group in DNP Group regarding the environmental impact. In the
future, the target should be set based on the features of each department. For example, an operations group may
concentrate on the global warming, while other groups with little environmental impact focus on environmentally conscious products or business models.
5. The monitoring functions of the Eco-Report System can be considered as an environmental management information
process that supports efficient environmental activities. To make more accurate management decisions, a successive improvement in the reliability and efficiency of information processes in issues, such as waste, greenhouse gas,chemical substances, environmental pollutants, and environmental accounting, would be ideal.

Reports on Environmental Activities• P. 67 Global warming measures• P. 69 Chemical Substances• P. 70 Resource circulation (in the office)• P. 71-72 Resource circulation (waste)• P. 73-75 Environmental Risk Management• P. 76 Regarding Environmental Conscious Products andGreen Purchasing,
The statements for the above sections were set as assertions for the independent review. To make differentiations,such assertions have been colored at each page.

Environmental
performance

Measures against Global Warming

Installing energy-saving equipment andswitching fuels to prevent global warming

We made efforts in reducing greenhouse gas emissions in 2004 by installing energy-saving equipment, switching
to different fuels, and improving production. However there was an increase in energy consumption andgreenhouse gas emissions because of the hot summer days and the growth in production volume.

Targets

Results

To achieve the following by 2010:• Maintain greenhouse gas emission at the 2000 level(2010)• Maintain energy consumption at the 2000 level(2010)• Reduce per unit energy consumption (Crude-oil converted energy consumption amount/production)• Reduce per unit CO 2 emissions (CO 2 /production) by
20% respectively against base year of 1990 (2010)• Greenhouse gas emissions was 936,000 tons, 8.0%
increase (approximately 69,000 tons) in comparison
with 2000.
• The energy consumption was 20,100 TJ (terajoules),
8.6% increase (approximately 1,600TJ) in comparison with 2000.
• Per unit energy consumption was 4.25TJ/100 million
yen, 1.0% increase in comparison with 1990. Per
unite CO 2 emissions were 190 tons/100 million yen,
7.8% decrease.

Calculation methods for greenhouse gases and energy consumption
Greenhouse gas emissions are calculated in this report according to the
Ministry of the Environment’s “Guideline for calculation of greenhouseemissions from businesses”(completed in July 2002), with past dataalso recalculated.

* The energy usage results were reinvestigated per site in 2004 to secure the accuracy of the calculation of greenhouse gas emissions for 1990. As a result theemissions for 1990 is now 550,000 tons, with is 98,000 tons more than theprevious value.
* All figures for greenhouse gas emissions indicate conversion to CO2 in tons.
* Feat values are TJ (terajoules) = joules 10 to the 12

Method of calculating per unit energy consumption and per unit CO2 emissions
Per unit energy consumption = Energy consumption (TJ) /production (100 million yen)
Per unit CO2 emissions = CO2 (1,000 tons) emitted through consumption of energy (fuel,electricity)/production (100 million yen)

1,000
867

849

842

899

550
500

250

0

936

Energy consumed

750

Energy Consumption (Converted to heat) (Unit: TJ)
25,00019,300 20,100

20,00018,50018,100 18,100

15,000
11,20010,000
5,000

’90

’00

’01

’02

’03

’04

Per Unit Energy Consumption (Unit: TJ/100 million yen)

0

200
4.21

4.32

4.08

3.94

4.19

’90

’00

’01

’02

’03

’04

Per Unit CO 2 Emissions (Unit: tons-CO 2 /100 million yen)

5.00
4.00

Industrial wastes incinerated

Greenhouse Gas Emissions (Unit: 1,000 tons –CO 2)

4.25

192
206

181

177

’01

’02

187

190

150

3.00
100
2.00
50

1.00
0

’90

’00

’01

’02

’03

’04

0

’90

’00

’03

’04

[Kashiwa Plant, DNP Techno Polymer Co., Ltd.]We are making efforts in reducing CO 2 emissions
Our plant manufactures plastic goods such as food and toner trays. The
manufacturing site is a clean room where air conditioning is a major issue.
We terminated the use of boilers using heavy oil which was used for air conditioning in February 2005 and installed electric turbo cooling systems. This
reduced CO2 emissions by 900 tons annually. In addition, we have been making efforts to conserve energy by covering our factory roofs with heat shield
paint and insulating the heating areas of our molding machines. We will keep
on finding effective ways of using energy to prevent global warming.

Turbo cooling system

Hiroshi HashimotoGroup Leader
Technical Department
DNP Techno Polymer Co., Ltd.
Heat shield paint roofs

67

DNP GROUP CSR REPORT 2005

DNP GROUP CSR REPORT 2005

82

DNP Group CSR Report 2005
April 2004 - March 2005

Produced by

Corporate Social Responsibility Office
1-1 , Ichigaya Kagacho 1- chome, Shinjuku-ku , Tokyo 162-8001, Japan
Tel : +81-3-3266-2111 Fax : +81-3-5225-8083 http://www.dnp.co.jp/
Next issue scheduled for release in August 2006.

Published: August 2005
© 2005. DNP