DNP Group CSR Report 2007
DNP Group CSR Report 2007 (April 2006 - March 2007)

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Corporate Social Responsibility Office
1-1, Ichigaya Kagacho 1-chome, Shinjuku-ku, Tokyo 162-8001, Japan
http://www.dnp.co.jp
Next issue scheduled for release in August 2008.

Tel: +81-3-3266-2111 Fax: +81-3-5225-8083
Published: August 2007
© 2007. DNP

April 2006 - March 2007

DNP GroupCSR Report 2007
April 2006-March 2007

CONTENTS1DNP Corporate Profile/Editorial Policy

2

Top Message

4

Efforts toward Creating Highly Secure Personal Information Protection

82006 Financial Data/Results of Each Segment

10

Management Concept/21st Century Vision/Code of Conduct

12

Strengthening the Corporate Governance System

14

Compliance with Laws and Social Ethics

16

Special Report: Join Labor-Management Declaration- For Mutual Understanding and Trust -20

For an Inspiring Workplace• Development of Personnel that Contribute to an Emergently Evolving Society 20

28

For New Value Creation• P&I Solutions 28• Management in Support of P&I Solutions 32

38

Seeking to Increase Share Value• IR Activities 38

40

Corporate Citizenship• Social Contributions 40• 2006 CSR Awards and Evaluations 45

46

For Environmental Conservation and a Sustainable Society• Relationship between the Environment and Business 46• Realizing a Sustainable Society 48• For the Global Environment and Society 56• Our Environmental Management Foundation 60

69

Independent Review Report[About the Cover]
Radishes are attractive but their pungent
flavor also makes them assertive. The
message here is that TAIWA (Japanesefor "dialogue") takes place when one firstposes a question to oneself, and thenrelays a message to one’s counterpartout of concern for them. The ability toorganize the wide variety of thoughts wewithin ourselves and achieve clear
communication with others after doing
so is essential in our daily lives.

Ryohei Kojima: Born in 1939 in Iwate. Graduated in 1960 from Musashino
Junior College of Art, with a degree in industrial design. After working in SanAi's publicity section, he entered Light Publicity in 1963. In 1976, heestablished the Ryohei Kojima Design Office. He has since been actively engaged in the design field, advertising, as well as 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 (as of March 31, 2007)• Company Name
• Head Office

Dai Nippon Printing Co., Ltd.

• Capital

114.464 billion yen

1-1, Ichigaya Kagacho 1-chome• Employees

9,003 (Non-consolidated)
37,740 (Consolidated)

Shinjuku-ku, Tokyo 162-8001, Japan
Tel: +81-3-3266-2111• Sales Offices

URL: http://www.dnp.co.jp/

21 locations overseas

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

October 1876

48 locations in Japan(including local affiliates)• Main Plants

58 domestic plants		

7 overseas plants(including affiliates)• R&D Facilities

11 locations in Japan

Editorial Policy• This report describes DNP’s efforts according to themes

vice on improvements that could be made in the next

selected for the scale of their impact on stakeholders

year and beyond.

and the degree of emphasis given them by DNP.

• To ensure the reliability of the information in our "Envi-• For example, for numerical data, system charts, and otherronmental Performance" section, we submitted it to a

information related to the topics described in this report,

third-party review conducted by the Shin Nihon Environ-please refer to our website (http://www.dnp.co.jp/eng/csr).

mental and Quality Management Research Institute Co.,
Ltd. The report was granted the Environmental Report
Assurance and Registration Mark according to the "Envi-<How to view related data>(1) The following mark is found in the upper right-handronmental Report Assurance and Registration Markportion of odd-numbered pages of this report. Enter-

Standards" established by the Japanese Association of

ing the posted URL in your browser will take you to

Assurance Organizations for Environmental Information.

the relevant webpage.

• In compiling this report, we have referred to the Global
Reporting Initiative's "Sustainability Reporting Guidelines

CSR Web Report

2002" and the Japanese Ministry of the Environment's

http://www.dnp.co.jp/csr/2007/21e.pdf"Environmental Reporting Guidelines (2003 edition)."Please visit our Web site for further information.
• Personnel Data
• Transparent and Fair Hiring Practices

Enter this URL in your browser.

[Period covered by this report]
This report focuses on the period from April 1, 2006

(2) A link to a PDF edition of this report is found in thethrough March 31, 2007. In some instances, the report-

DNP homepage. Clicking on the URL will open theing of information about important items not occurring

PDF in your browser.

within that period may also be included.

CSR Web Report[Divisions Covered]

http://www.dnp.co.jp/csr/2007/21e.pdf

This report covers the CSR efforts of all companies andPlease visit our Web site for further information.
• Personnel Data
• Transparent and Fair Hiring Practices

divisions in the DNP Group. The data in the environClick on this portion

mental section is compiled from a total of 58 sites in 46of the companies included in the Group's consolidated• We have sought to provide a clearer picture of these ac-

financial accounting, including all 44 of our domestic

tivities by including the words of those actually in charge

manufacturing companies, one distribution company,of the various efforts.

one in-company food service company, and one equi-• In order to add a greater measure of objectivity to thety-method affiliate.

evaluations of the activities, we have elicited commentson the individual topics from third parties, along with ad-

DNP Corporate Profile/Editorial PolicySustainable Development for Society,with Integrity
We at DNP celebrated our 130th anniversary on October 17, 2006, and we chose that date to announce our“Joint Labor-Management Declaration.” The preamble
states that “We seek to achieve perpetual development for the DNP Group and society, and to enhance
the role we are bound to fulfill in society as a truly superior company.” This confirms the dedication of ourcompany and its employees to working together inthese efforts.
These efforts span our Group, and each of the DNPGroup companies has issued a similar joint declaration.
The process of drawing up the declaration consisted ofextensive dialogue among the employees and between
the employees and management concerning its significance and content, resulting in a even deeper mutual
understanding than was the case before.
President

I believe, as expressed in our management concept
of “contributing to the creation of an emergently evolving society of the 21st century,” that DNP’s CSR lies in
our fulfillment of our role in society. The understanding of each employee of his or her role, andsubsequently the steady performance of that role,brings us closer step by step to the realization of ourmanagement concept. In that sense, the participationof management and all employees in drawing up andannouncing our declaration seems to me to be a majoradvance in DNP’s CSR.
This year we also deepened our consideration of our“21st Century Vision,” which we announced in 2001.
In our business vision, we combine the experienceand know-how we have gained over our 130-year history with our unique printing and information
technologies to provide our “P&I Solutions” for resolving any issues faced by our customers. We have also
realigned our guiding principle for realizing our vision,“TAIWA (dialogue) with any and all people,” as ourcore concept.
Furthermore, we have merged the “ DNP GroupCorporate Pledge ” and the “DNP Group Employee

In March 2007 it was discovered that a former em-

Code of Conduct,” bringing them together into a single

ployee of one of our contractors had stolen personal“DNP Group Code of Conduct,” which has been en-

information. We immediately launched an internal in-hanced to include CSR considerations. These codes

vestigation and published the results, and offered ourof conduct form the premise for all employee behavior,

deep and sincere apologies for the trouble and concern

through which we “ contribute to the creation of ancaused to the people whose personal information had

emergently evolving society of the 21st century ”

been taken, as well as to the many others who were af-

through the realization of P&I Solutions.

fected. We shall continue to work throughout ourcompany to shore up our information security and con-

Our business continues to expand. We have acquired

trol systems to prevent a recurrence of such a situation.

a photo business from Konica Minolta Holdings, andOur efforts in this area are detailed in pages 4 throughhave begun producing our own DNP brand of color

7 of this report.

print paper, the “CENTURIA” series. We are offering acomplete array of digital photo printing products and

DNP’s efforts in corporate philanthropy have resulted inservices in addition to our dye-sublimation transfer

the inauguration of the Louvre-DNP Museum project,materials, and plan to continue to contribute to the

conducted in tandem with France’s Louvre Museum.

transition to a photographic culture. This business rep-

The DNP Gotanda Building has been opened to the

resents an entirely new role for DNP, in the sense thatpublic for exhibitions of works of art from the Louvre

by offering DNP products directly to consumers we arecollection. The most advanced technologies are used toable to offer value directly to society.

enhance the presentation. The first such exhibition pre-As the report published by the IPCC (the UN’s Inter-sented Theodre Gericault ’ s ‘Carabineer,’ while thegovernmental Panel on Climate Change) in February

second, scheduled to run through September, is an ex-

2007 points out, it has become clear that efforts taken

hibition of three Tanagra figurines from ancient Greece.

now to deal with global environmental issues, in particu-

DNP hopes to be able to offer new modes of art appre-

lar global warming and climate change, will turn out tociation through the use of our printing and information

have great significance in terms of the environment 50

technologies.

or 100 years in the future. DNP’s environmental efforts
cover a broad range of themes, from adopting resource

DNP announced our participation in the UN Global

and energy conservation measures and alternative en-

Compact in July 2006 at our Board of Directors meet-ergies through emissions reduction and control. Ouring. The Global Compact covers ten principles in thecurrent efforts to create a sustainable global environ-areas of human rights, labor, the environment and anti-

ment are geared toward preserving the global

corruption to be maintained by good corporate citizens.

environment for the next generation.

The DNP Group has been working to incorporate these

The Consumer Product Safety Law, which applies tothe reporting and publication of information on productten principles in our Group management, and we intend
to continue to enhance our efforts to that end.

accidents, was revised in May 2007. DNP took this op-

We shall continue to seek to build an even stronger

portunity to revamp our own consumer protection andrelationship of trust with all of our stakeholders by al-

product safety systems and efforts, and have strength-

ways engaging in honest conduct and striving to fulfill

ened our own rules concerning product safety.

the role expected of us by society.

Top Message

Efforts toward Creating Highly Secure Personal
Information Protection
Securing a top information security system

Nevertheless, there was an unfortunate incident in

DNP fulfills a vital role in society by storing a wide variety ofwhich the personal information entrusted to us by custom-

information entrusted by customers, as well as in developing

ers was taken illegally. DNP takes this situation with theof new services and systems that are of value to both corpo-

utmost seriousness, and is engaging in the following com-rations and consumers. This requires the ultimate inprehensive revamping of our information security

information security measures, and DNP has already con-measures to thoroughly ensure that there shall be no re-

structed a broad array of such measures.

currence. We shall continue to attach the highest priority
to this matter in the future.

About the incident of stolen personal information
It was discovered that the former employee of one of our contractors stole a portion of the personal information from customers that had
Backgroundbeen stored for the production of direct mail and other printed materials, and sold that information to a group of Internet sales racketeers.
We conducted an internal investigation with the help of the authorities, and on March 12, 2007, we announced that a total of 8,637,405
items of personal information, which was the property of a total of 43 companies, had been taken to that former employee’s home.

In response, DNP again conducted a thorough and comprehensive examination of our personal information control system, and also submitted to athird-party audit by an external organization so as to enhance this examination. We also submitted a report on the facts of the case and the measures
we are taking to prevent recurrence to the Ministry of Economy, Trade and Industry, the Japan Information Processing Development Corporation, andother relevant organizations.

Measures to Prevent Recurrence
In September 2006 we transferred all electronic processing work for the
production of printed information, such as addresses, etc., which was
where this problem originated, to the newly constructed Kamiya Solutions(3) Measures for the prevention of removal of
information recording media
Employees are subjected to search by security personnel using metal de-Center (Kita-ku, Tokyo). We have installed the latest security equipment

tectors when they leave the premises so as to prevent any unauthorized orat the Center, and in addition have implemented the following measures:

improper removal of personal information recording media from the site.

(1) Minimizing the number of employees handlinginformation recording media,
and restricting such handling to our employees(4) Full implementation of measures to prevent
recurrence, and education

Only 4 employees are responsible for writing personal information to recording
media, and such work is restricted to our own or our affiliates’ employees.

(2) Measures to prevent the unauthorized writing of
information recording media,
and the strengthening of checking functions
1) The area in which information recording media are handled is separated from other areas, and the environment has been structured so thatthe writing of media outside this area is absolutely impossible.
2) The personal information handled in this area is encoded so that it
cannot be deciphered by any third party.

All employees responsible for handling personal information have been reeducated in the importance of information security, and in addition we areengaged in the full implementation of measures to prevent recurrence. We
will continue to conduct education programs regularly henceforth.

(5) External audits
The Kamiya Solutions Center Electronic Processing Offices were subjected to an examination by IT consultants, and all deficiencies that werepointed out have been rectified. In addition, we contracted for an objective, third-party audit by the Deloitte Touche Tohmatsu, which conducteda information security audit designed to offer advice on personal information security.

3) We confirm that there has been no unauthorized writing of information
recording media by daily checking of three items: the volume of information recording media, the media loaders used in data writing work,and delivery records.

We have implemented the measures described above so as to strengthen the personal information control system at the Kamiya Solutions Center. We
are undertaking these kinds of recurrence prevention measures at all sites nationwide where personal information is handled, so that the security level isuniformly high throughout the DNP Group. We shall continue to make efforts to anticipate all possible risks and improve the system, so as to engender ahigh level of confidence.

About the new security equipment
Level 5High security zone

Level 4Work zone

Level 3
Worker joint
use zone

Level 2
Guest zone

Level 1
Exterior zone

2) Biometric/
entry and exit system

5) Terminals on which recording
media output is sealed6) Terminals on which restricted
media output is possible are marked(with labels and by seat color)

1) Security gate system

3) Revolving gate
1) Security gate system
4) Dedicated recording
media transfer window

2) Biometric/entry and exit system

Use of employee
identification ID card
SurveillancecameraControl of use of FAX
machines and copiers

Exit controls

Human detection
sensorMagnetic sensor,
glass break sensor

Guard post

Infrared sensor
3) Revolving gate

6) Terminals on which restricted media output ispossible are marked(with labels and by seat color)

5) Terminals on which recording
media output is sealed4) Dedicated recording media transfer window

Third-party comment"Aim to have exemplary security"
There was a major leak of personal information at DNP this year. Luckily it did not spread widely, but
the fact that something of that nature occurred is no surprise. When I took part in helping to improvesecurity measures after the incident, I did find that high-level security measures covering the workwhere the incident originated had already been put in place in a very short time. Nevertheless, when I
examined the situation carefully I found that there were some things that had been overlooked, as
well as items not in line with some basic principles. This is the sort of thing that occurs when emergency security measures are implemented. I was impressed with the earnest efforts of the on-site
employees to eliminate the cracks in these security measures. It is my hope that from now on as welleach employee will maintain a strong awareness about security, and that DNP will reach a security
level that will stand as an example for other companies.

Mitsuyoshi Sugaya
Director, Consulting Service Department
NRI SecureTechnologies, Ltd.

Efforts toward Creating Highly Secure Personal Data ProtectionInformation security and efforts to guard
personal information
Revision of personal information protection policy

Organizational Measures[System Maintenance]
Beginning with the establishment of the Office for the Protection of Personal Information in April 1999, we have

DNP created its first Personal Information Protection Policy

made changes in Japan and abroad, and conducted re-in 1999, and has been working hard to protect and properly

views for the purpose of further strengthening ourhandle personal information. The Japan Industrial Standard,

information security measures.

“Personal Information Protection Management Systems-Re-

Currently the DNP Group Information Security Committeequirements” (“JISQ15001” ) was revised in May 2006, and inis established at headquarters as an umbrella organization for

December 2006 we revised our Personal Information Protec-

the entire company. Furthermore, a Information Security

tion Policy, taking into consideration changes in social

Committee has been established in each of the operations

conditions and increased consumer awareness.

and Group companies that make up the core of our business.
Each company committee consists of a Committee Chief andPersonal Information Protection Policy
Our company is entrusted with the storage of personal information froma wide variety of companies and organizations, and we assist in the pro-a person responsible for managing personal information (thehead of each operation). Managers, auditors, and inspection
managers will be appointed for each issue, such as education,
security regions, and computer measures.

vision of many kinds of services and products offered to consumers. In

We established the Information Security Headquarters

addition, our company itself engages in the development of many kinds

under the management of the Headquarters DNP Groupof services and products that use personal information effectively.

Information Security Committee in April 2007. We have

Through such businesses we have come to a thorough understanding ofbroadly increased the number of personnel in this Opera-

the importance of personal information , and we believe that the appro-tion, strengthening the auditing and control structure for

priate protection of information is as a matter of course our duty.

the business operations and group companies.

Our company shall handle personal information properly in accordance with our Personal Information Protection Policy.
1. We shall strive to protect personal information in compliancewith all laws, guidelines, and rules issued by the Japanese government in regard to personal information.

Structure of DNP Group Information Security Management
Head Office
DNP Group Information Security Committee
Committee Chief, Manager for Protection personal information,
Committee member

Information Security Headquarters

2. We shall devise all necessary and appropriate measures for thesafeguarding and prevention of the leaks, loss, or damage topersonal information. In addition, in the event that any problems

Framework for Promoting Information Security Within
Operations and Group Companies

arise we shall immediately implement corrective measures.

Information Security Committee

3. We shall specify the uses of personal information, and shall acquire, use, and provide personal information fairly and properly.

Committee Chief, Person responsible for managing personal
information(General managers of operations and presidents of group companes)

We shall devise measures for the prevention of any handling of

Person responsible for inspections

personal information that exceeds the limits necessary to achiev-

Information Security Promotion Office Manager

ing the specified usage goals.
4. We shall properly respond to requests from information subjects fordisclosure, etc., of personal information retained by our company.

Information Security Manager
Person responsible for education

5. In cases in which contract for work handling personal informa-

Person responsible for security area measurestion from client companies, the said personal information shall

Person responsible for public relations

be handled within the limits determined for the contracted work.

Person responsible for Information Security measures

6. We shall establish internal regulations regarding the protectionof personal information, devise, maintain, and continue to up-[Maintaining Internal Procedures and Rules]

date personal information protection systems.

In addition to maintaining the Personal Information Protec-

7. We shall properly respond to any complaints or inquiries fromtion Rules (implemented in 1999, revised in 2005), the DNP

information subjects concerning our handling of personal infor-

Group has established firm standards for personal informa-mation or our personal information protection systems.

tion protection that apply to the entire Group. All rules pertaining to information security were revised in 2002, andthe Basic Information Security Rules (established in 2002,
revised in 2005) have been developed as new systems,
under which 7 standards, including those for document
control, computer use, areas from which non-DNP employ-ees are restricted from entry, etc., are stipulated.
We rapidly send out notices and establish or revise our rules
accordingly in response to new threats and risks, and we makesure that employees are thoroughly informed about them.

Training and conferences in fiscal 2006
Introduction to personal information protection
May-October 2006

Network Learning
Approximately 21,000 enrolled[Establishment of a Management System]
DNP has been promoting the establishment of a manage-

Personal information management systems education

ment system based on the Japanese Industrial Standards,

February-March 2007

“Personal Information Protection Management SystemsRequirements” (JISQ15001), which is a standard forthorough compliance with laws and the management of
the protection of personal information at all offices whichhandle personal information. Also, DNP has been actively

Risk control plans for personal information protection
June 2006

seeking the acquisition of "Privacy Marks," which are given to offices which maintain operation procedures andmanagement systems in line with JISQ15001, as well asof BS7799 and ISMS, which are standards for the implementation of information security management. 2

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

Acquisition of ISMS and BS7799 certification
Dai Nippon Printing, IPS Operations (ISMS)DNP Facility Services (ISMS and BS7799)
DNP Digitalcom (ISMS)
DNP Data Techno Kansai (ISMS)

Measures for human resources
We conduct training programs for educating and enlightening
each employee, through pamphlet distribution, group education, and network learning. We conducted nationwide
conferences and information sessions for Information Security
Promotion Office Managers in 2006, such as "Introduction to
Personal Information Protection," "Education to Personal Information Management Systems (PMS)," "Risk Management
Plans for Personal Information Protection," "Privacy State-

Distribution of a “Manual for est a b l i s h i n g p e r s o n a l information
protection risk control plans”

Publication of the “Privacy Statement” and acquisition ofconsent to use of personal information
March 2007

operations divisions acquired "Privacy Mark" in FY2006.

Business Operations and Divisions that have acquired certification (As of June 20, 2007)

Increase understanding by distributing PMS handbooks, network
learning, etc.
Approximately 41,000 enrolled

Distribution of the guideline, training
sessions held twice Approximately
100 enrolled

Information security courses for technicians (4 in total)
November-December
2006“Electronic certificates,” “Computerviruses,” “ Security technologies,”“Network security”
Total of 350 enrolled

Nationwide conferences and information sessions for
information Security Promotion Office Managers
May/November 2006,
February 2007

Nationwide conferences on information
security

December 2006

Personal information protection management
system construction information sessions
For Information Security Promotion Office
Managers

Physical measures
Various measures are in place at the Electronic Processing Offices to prevent information theft. These include
entry/exit controls using biometrics to ensure that unauthorized persons cannot access the facilities, surveillancecameras that keep improper behavior in check, and pocket-free uniforms for on-site workers. We moved forwardwith the strengthening of these measures and the enhancement of facilities in fiscal 2006. We also haveenhanced information controls by separating the locations
where information is written to media and employing
checks using metal detectors.

Technology-related measures
Access logs are recorded at the Electronic Processing Offices. By reducing the number of employees engaged in
the work of writing to recording media, and restricting
such work to DNP Group employees, the accuracy of access log checks is improved and control is strengthened.

ment Announcements and Obtaining Consent for the Use of
Personal Information," and "Information Security Course."
Efforts toward Creating Highly Secure Personal Data Protection2006 Financial Data/Results of Each Segment
We have increased sales and profits by promoting reform.
The DNP Group--engaged in a wide range of businesses. Within a harsh business climate, we have promoted reforms in both our operational and cost structures based on our vision of P&I Solutions, achieving
record sales in the process.

Printing encompasses a wide range of operations, from its

tomer needs, in FY2006 we initiated Group-wide efforts toInformation Communication segment, including publishing

reduce costs through our "Manufacturing 21"activities,

and commercial printing, Smart cards, and network-

working hard to maintain our business results. As a result,related businesses, to its Lifestyle and Industrial Supplies

consolidated sales for the term were ¥1.5578 trillion, withsegment, including packaging, decorative interiors,

consolidated revenues of ¥96.1 billion, consolidated prof-

information media supplies and industrial supplies, and its

its of ¥101.3 billion, and consolidated term net profits ofElectronics segment, including display components and¥54.8 billion.

electronics devices.
Beverages operations involve the production and marketing of Coca-Cola and juices, mainly through the Hokkaido Coca-Cola Bottling.
At the base of our printing operations lies the vision of
P&I Solutions. The "P" in P&I refers to printing technology,

DNP Group's Consolidated Business Results(FY ending March 2007)

while the "I" refers to information technology. DNP is

Net sales

working to provide customers with solutions combining

Net operating Income

96.1 billion yen (down 20.3% over the previous term)

Ordinary Income

101.3 billion yen (down 18.7% over the previous term)

Net Income

54.8 billion yen (down 15.9% over the previous term)

the printing technologies it has cultivated over many years
with the information technologies it began developing in
the early 1970's. In addition to developing our business

1,557.8 billion yen (up 3.3% over the previous term)and offering products and services corresponding to cus-

Net sales (billions of yen)
1,500
1,309.0

1,354.1

1,507.5

1,557.8

1,424.9

Operating Income (billions of yen)

Ordinary Income (billions of yen)

150

150
120.5

120.6

1,200

120

900

90

600

60

60

300

30

30

102.4

0

'02

'03

'04

'05

'06

Net Income (billions of yen)

0

'02

90

'03

'04

'05

2,000
65.1

1,600

59.9

60

54.8

52.9

1,513.7

1,600.1

1,662.3

1,200

8

28.7

'03

'04

'05

'06

(6.0)

400

2

'03

'04

'05

*ROA is calculated using recurring profits.



'06

'05

942.0

978.7

1,007.9

1,063.3'06

01,099.4

(5.5)

300

0

8

6
(6.0)

(6.3)
(5.1)

600
4

'02

'04

900

6

(6.6)

800

0

'03

(7.6)

(6.1)

20

'02

101.3

97.2

1,200

1,700.2

1,450.0

88.1

124.7

Total Stockholder's Equity (billions of yen)/ROE*(%)
10

(7.7)

40

'02

0

'06

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

80

0

96.1

89.8

120.4

120

(3.0)

'02

4

2

'03

'04

'05

*ROE is calculated using current net profits.

'06

0Segment Breakdown of Sales for the March 2006 Fiscal Year
Beverages 4.8%
Information Communication

Electronics

18.7%
42.5%
34.0%

Lifestyle and Industrial Supplies

Net sales (billions of yen)
Operating Income (billions of yen)

[Information Communication]
Books and periodicals:Magazines,
books, etc.
Commercial printing:Catalogs, pamphlets,
posters, leaflets, etc.
Business forms: passbooks, various types ofcards, IPS (Contract service for personal printing
and sending through data entry), etc.
Other: Multimedia planning and production,
database business, network business, etc.

Magazines

800
619.9

629.8

662.4

600
Smart cards
400

40.0

43.6

51.0

49.3

668.8
60
50.9
40

200

Catalogs and pamphlets

0

20

'02

'03

'04

'05

'06

0

Net sales (billions of yen)
Operating Income (billions of yen)[Lifestyle and Industrial Supplies]

Printing

Packaging: container packaging materials
for food, beverage, confectionery, daily
necessities, 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

80
640.6

800

80

600

Interior materials

420.1
400
28.5

426.0
32.4

449.9

479.9

532.7

40
37.5

36.0

36.2

200

Packaging0

Printer ink ribbons

60

20

'02

'03

'04

'05

'06

0

Net sales (billions of yen)
Operating Income (billions of yen)

[Electronics]
Displays: LCD color filters, plasma television back-plates. CRT television shadow
masks, etc.
Electronic devices: Semiconductor photomasks, lead frames (semiconductor chipconnection terminals), etc.

LCD Color filters

400

80
296.7

300

200

269.6
208.3
28.3

291.9

60

236.4
39.6
33.0

40
37.8

100

20
14.8

Photomasks

0

'02

'03

'04

'05

Net sales (billions of yen)
Operating Income (billions of yen)
80
76.4
72.9
71.8
69.7

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

'06

74.1

Beverages

60

4

3

40

2

1.6

20

0

0

0.6
-0.1

-0.3

'02

'03

1

0.2
0
'04

'05

'06

Beverage products
2006 Financial Data/Results of Each Segment

Management Concept/21st Century Vision/Code of Conduct

DNP is performing its role in society, which is “contributing to thecreation of an emergently evolving society of the 21st century”

Societal changes in the 21st Century are turningout to be even more intense than in the past.

Our business vision is P&I Solutions

We have been able to put our highly-developed informa-

Unforeseen phenomena are engendered within the emer-tion base to use since the end of the 20th Century.

gently evolving society. Many issues and challenges face

By using this information base, independent and di-our customers and others as they respond to these phe-verse people are able to stimulate one another, resulting

nomena. DNP seeks to uncover the latent issues involvedin the emergence of unforeseen phenomena, some of

by deepening our TAIWA (dialogue) with our customers

which take root in society and continue to provide stimuli,

and other members of society, and thereby offering solu-

resulting in even more new phenomena. DNP believes

tions that make use of the experience and know-how thatthat this process will continue to repeat itseling, with new

we have cultivated through our business, especially print-

goods and services continuing to emerge and society

ing technologies (PT) and information technologies (IT).

constantly evolving. We refer to this as the “emergently

This our “P&I Solutions” business vision, and it is indica-evolving society.”

tive of the direction we are taking for our “contribution to
the creation of an emergently evolving society.”
TAIWA is of vital importance in the realization of this vision. We can uncover issues by deepening our TAIWA
with customers, and when the various departments within

Independent anddiverse individuals

our company deepen their TAIWA in the approach theytake toward difficult problems, new solutions can emerge
through joint efforts.
Our new guiding principle comes together with TAIEffect on
individuals

Unforeseen,
previously unknown
phenomena

no
ra

co

nti
nue
s

on
to e
erge
volve
as unforese phenomena em
en

th
e

c
So

iet
y

Emergently
evolving societyrMutual use

ea

fte

WA as the core activity we must pursue so as to realize
our vision.

The DNP Group is contributing to the emergently
evolving society of the 21st Century
Management Concept
Management The basic way of thinking that
determines our goals andconcept
actions as we face the future.

We think that the changes occurring in the emergently
evolving society will result in people enjoying a richer life,
businesses becoming more efficient, and society developing further.
DNP believes that by contributing to the creation of an
emergently evolving society we are fulfilling our role in society.
Our management concept, “the contribution by the DNPGroup to the creation of an emergently evolving society in the

P&I Solutions

Guiding Principle

The business orientation by which
we advance so as to realize the concept.

Determines how we should act
so as to progress toward therealization of our business vision.

Printing
technologies(PT)
BusinessvisionConcept Phrase
Information
technologies
P&I Solutions DNP(IT)Guiding
Principle

21st century” expresses our determination in that regard.
DNP Group Code of Conduct

101) TAIWA
2) Independent /cooperative
3) Challenge
4) Integrity5) Responsibility

Management Concept/21st Century Vision/Code of Conduct

with the goal of continuing to engage in our business,

So as to always remain a company with integrity

which is predicated upon “contributing to the creation of an
emergently evolving society,” on a foundation of strong

The continuous growth DNP has experienced over 130

ethical principles in accordance with our own rules as well

years in business would have been impossible without theas the law of the land. These DNP Group Code of Conduct

creation of a relationship of trust between our company

constitute a revised and expanded version of the DNP

and all of our stakeholders, including our shareholders,Group Corporate Pledge, which we established in 1992.

customers, employees, local residents, and suppliers.

The DNP Group Code of Conduct is built around

DNP intends to continue our tradition of honesty so as tothemes of great importance both to the management ofenhance the trust bestowed upon us.

our company and also in terms of the effect of our man-

DNP has established the DNP Group Code of Conduct

agement on society and our stakeholders.

DNP Group Code of Conduct
1. Contribute to the development of society
We shall offer new values through our business, and contribute to the development of society
2. Compliance with all laws and societal ethics.
We shall contribute to the sustained development of free
and orderly market competition while assuming a fair andhonest posture based upon laws and societal ethics.
3. Respect for human dignity and diversity
We consider the dignity of the human race to be of unsurpassed importance, and we shall respect diversity in theculture, nationality, creed, race, ethnicity, language, faith,gender, age, and philosophy of each individual, and behave
in a disciplined manner.
4. Environmental conservation and the realization of a recycling
society
We shall strive to use resources effectively without destroying or polluting the global environment, so as to pass on abeautiful planet to the generations that follow.
5. Realization of a universal society
We shall strive to develop and distribute easy-to-use, functional products, services, and systems so as to realize asociety in which everyone can live safely and in comfort, andwe shall contribute to the realization of a universal society inwhich a diverse variety of people can thrive.

6. Accurate information disclosure
We shall proactively disclose timely and accurate information so that our many stakeholders can gain a proper
understanding of our business and activities, with the goalof maintaining a high degree of transparency.
7. Ensuring information security
We shall strive to ensure thorough security measures for theprotection of the information assets entrusted to us by our clients and those retained by the DNP Group itself (industrial
secrets, personal information, intellectual property, etc.).
8. Ensuring the safety and quality of our products and services
We shall strive to gain the trust and satisfaction of our customers and all members of society by ensuring the safety
and quality of our products and services.
9. Realization of a safe and energetic workplace
We shall use our maximum abilities in seeking to maintainand constantly improve the safety and cleanliness of ourworkplace. We shall also respect work habits that take into
consideration the diversity of our employees, and maintain ahealthy, safe, and energetic working environment.
10. Social contribution as a good corporate citizen
We shall deepen our ties with society as a good corporate citizen, and we shall contribute to society through cultural activities
and by striving to resolve the many issues that confront it.

Code of conduct

Management methods for realization

1. Contribute to the development of society

Promotion of P&I Solutions

p28-37

2. Compliance with all laws and societal ethics.

Corporate governance, corporate ethics efforts, “open door room”

p12-15

3. Respect for human dignity and diversity

A work system that respects diversity, work/life balance, etc.

p20-27

4. Environmental conservation and the realization of a recycling society

Environment management based on the eco-report system

p46-69

5. Realization of a universal society

Active promotion of universal design

6. Accurate information disclosure

Information Disclosure Committee, disclosure policy

7. Ensuring information security

Information security efforts

p4-7

8. Ensuring the safety and quality of our products and services

Improvement of product safety and quality

p34-35

9. Realization of a safe and energetic workplace

Framework for the cultivation of self-starting professionals

p20-27

10. Social contribution as a good corporate citizen

Social contribution activity policy

p40-44

Location in this report

p35
p12-13, p38-39

efforts to advance these 10 princi-

Endorsement of the Global Compact

ples, with the goal of achieving asociety capable of sustainable

The DNP Group announced its endorsement of the United

growth. We are working to enhance

Nations Global Compact (GC) in July 2006.

our image as an honest company by

The GC covers 10 principles in four categories: Humanpromoting the 10 principles of theRights, Labor Standards, Environment, and Anti-Corrup-

GC in tandem with our DNP Grouption. Corporations endorsing GC engage in voluntary

Code of Conduct.

http://www.unic.or.jp/globalcomp/
DNP is performing its role in society, which is “contributing to the creation of an emergently evolving society of the 21st century”

11Strengthening the Corporate Governance System

Ensuring fair and efficient business
management

and the management structure by appointing the CEO as

The corporate governance system

the president, with three vice-presidents.
The Board of Directors is composed of 28 directors, including one from outside the company. It is normally convened

Board of Directors meeting

monthly, and conducts appropriate and swift decision-making

DNP has established a system whereby its directors, whoalong with reporting on the execution of company business.

each have a wealth of specialized knowledge and experi-

The directors oversee the execution of each others’ business,ence spanning a broad array of business areas, participate

so that proper oversight functions are maintained. The direc-

in management decisions, execute their work duties, andtors also meet at the Executive Committee Meetings heldin addition oversee the work other directors.

monthly to exchange information so that management deci-

Directors’ terms were shortened from 2 years to 1, so

sions can be made efficiently. Also, the corporate officers

as to make management responsibilities in the fiscal year

selected at the Board of Directors meeting are in charge ofmore clear, and we have enhanced corporate governanceexecuting the work determined by at the Board of Directors

Internal Control System Policy
The DNP Board of Directors determined the basic policy for "the cre-6) The “Open Door Room” shall function as the contact point for theation of a system for ensuring proper business (internal control

reporting of internal information within the DNP Group. The Opensystem)" in conjunction with the implementation of the Corporate

Door Room shall be available to DNP Group employees for the

Law in May 2006. This constitutes one part of DNP's overall effort toreporting of legal infractions and other matters, and shall initiate

strengthen corporate governance. The main aspects of this policy

the response to these reports.

are as follows.

[Risk management regulations and other systems][System for ensuring that the work executed by directors
and employees conforms to all laws, regulations, andarticles of incorporation.]

The creation of regulations and the execution of training programs

1) The "DNP Group Basic Compliance Regulations" shall be estab-

be conducted by the Corporate Ethics Committee and other inter-lished, and the Corporate Ethics Committee designated as thenal organizations, which shall work to prevent the occurrence oforganization responsible for managing the DNP Group internalrisk and respond promptly when it does occur. The organizations

control system based upon these regulations.

and directors charged with prompt response to newly occurring

2) The Product Safety Committee, Information Security Committee,

and other items pertaining to compliance, the environment, disasters, product safety, information security and other matters shallrisk shall be established.

and other headquarters organizations responsible up to now foragement of the Corporate Ethics Committee, conduct inspections,[Systems for ensuring proper business within corporategroups]legal, regulatory, and other controls shall, under the overall manguidance, and training programs in the areas under their control.

1) We shall strive for full compliance with the DNP Group Code of3) The Information Disclosure Committee shall be established so as

Conduct, which governs the conduct of all employees. In addition,

to furnish a system for ensuring the accuracy of financial infor-

all relevant regulations shall be established and prepared based

mation and the timely and proper disclosure of DNP's corporate

upon the DNP Group Basic Compliance Regulations.

data. This Committee shall, under the overall management of the2) Each DNP Group company shall determine autonomously the

Corporate Ethics Committee, conduct the timely and proper dis-necessary systems and procedures appropriate to the content ofclosure of corporate data.

each organization, and shall execute, inspect, evaluate, and im-4) The Auditing Department, which is independent of the businessdivisions, shall conduct the internal auditing, guidance, and edu-

plement improvements for these systems and procedures, based
upon 1) above.

cational programs involved in the construction and operation of
the systems necessary for ensuring the proper execution of DNP’s business.
5) The heads of each organization within the DNP Group shalldetermine autonomously the necessary systems and procedures

12[System for reporting to the auditors, and system for ensuring that auditors can conduct audits effectively]
1) Directors and employees shall respond promptly when requiredby auditors to report on the execution of business.

appropriate to the content of each organization, and shall ex-2) The Auditing Department and the Corporate Ethics Committee

ecute, inspect, evaluate, and implement improvements for theseshall report to the auditors regularly concerning audit content andsystems and procedures.

the operation of the internal control system.

Strengthening the Corporate Governance System

Information Disclosure Committee

meeting. Close dialogue between the corporate officers andthe directors allows for the opinions of those close to the

DNP established the Information Disclosure Committee withworksites to be reflected in decision-making.

the goal of ensuring the reliability of our financial reports andinformation disclosure that is both timely and accurate. We

Board of Statutory Auditors

have also enacted the Information Disclosure Rules clarifying

DNP’s Board of Statutory Auditors is composed of five au-

those functions.

ditors, including three from outside the company. EachThe DNP Group has established the DNP Group Code of

auditor conducts audits of the business executed by the

Conduct (see p. 11) so as to improve the compliance aware-

directors, according to the auditing standards and respon-ness of each employee. The DNP Group Code of Conductsibilities determined by the auditors. The auditors closely

standards of conduct for all employees (including directors

watch the execution of company business; the indepen-

and auditors; please see below). Employees are made thor-

dent auditor explains the auditing plan to the auditors at

oughly aware of the stipulations provided in these documents

the beginning of each term, while hearings concerning thethrough training programs and other means, with the goal of

auditing situation are conducted as needed during themaintaining and improving a comprehensive corporate gover-course of the term, and audit results are reported at thenance system.

conclusion. The Audit unit has been established to provide
assistance to the auditors, with a special support staff
working under the auditors direction.
* The external directors and the independent auditors hold no stake in our company, including personal, asset, or trading relationships.

Corporate Governance and Internal Control System Chart
General Meeting of Shareholders

Audit

Audit

Board of Directors

Representative Director

Corporate Ethics Committee

ReportingOpen Door Room
Director in charge

Audit

Information Security Committee
Environmental Committee
Complaint Handling Committee
Central Disaster Prevention Council

Guidance
Training(Autonomous implementation,
inspection, review,
improvement)

ReportingAssistance

Legal and other main divisions(environmental safety division, labor division,technology division, accounting division,
management division, IP division, legal affairs
division)

Audit unit

Group companies

Guidance
Training

Board of Statutory Auditors

Product Safety Committee

Auditing Department

Audit

Oversight of internal controls

Corporate
officers

Business divisions

Information Disclosure Committee

Head office

Operating units

Accounting Auditors

Audit

Audit

ReportingCorporate Social Responsibility Committee
Audit
Guidance
Training
Coordination

Ensuring fair and Efficient Business Management

13Compliance with Laws and Social Ethics

We act according to laws and societal ethics.

So as to continue being a company with integrity

Structure and system for establishing andpropagating corporate ethics

DNP intends to continue being a trusted company with

(1) Corporate Ethics Committee

integrity. In order to make sure that we do, it is vital that

Enactment of the Corporate Law in May 2006 required thateach and every one of our employees is thoroughly

each company “develop a system for ensuring the propri-

versed in corporate ethics with a strong sense of re-ety of work (an “internal control system”).” We responded

sponsibility and purpose. We strive for personal integ-

by establishing our “Basic Compliance Regulations,” andrity and awareness of continuity, individual initiative,

designated the Corporate Ethics Committee as the organi-and a positive approach.

zation responsible for managing the DNP Group internal
control system. The directors in charge of each division atContinuity

Uninterrupted execution of daily
management efforts

Individual initiative

Being proactive rather than waitingfor others to act

Positive approach

Efforts in the area of corporate ethics will win the trust of society, andare indispensable to the development of the DNP Group.

headquarters serve as the committee members, and thecommittee is convened once a month or as needed. In addition, Corporate Ethics Committees are also in place
within each division, operation, and Group company topromote the firm establishment and propagation of corporate ethics.
In addition, we are also creating an internal system forverifying the work processes that establish the grounds for“ensuring reliability in financial reports” as required by the
Financial Products Exchange Law established in June

Corporate ethics compliance efforts

2006. Some facets of this system are already operating.

1991

Start of the first corporate ethics training

1992

Establishment of the Corporate Ethics Committee(2) Management by Objective System

Establishment of the DNP Group Corporate Pledge

Corporate ethics has been included as a factor in the Man-

1993

Establishment of the DNP Group Employees Code of Conduct

agement by Objective System (See p.21). Each employee

1994

Establishment of the Group Company Corporate Ethics Com-

is to discuss the meaning of fair and honest action, as wellmittee at each Group company
1997

Introduction of self-inspection for the compliance system

1998

Revision of the DNP Group Employees Code of Conduct

1999

Inauguration of the Corporate Ethics Committee

2002

as confirm that he or she is conducting work in that way,during biannual interviews with superiors.

Secretariat Conference(3) Self-inspection for compliance

Revision of the DNP Group Corporate Pledge

Every year (since 1997) each business division has con-Establishment of the Open Door Roomducted an annual self-evaluation according to a checklist

2003

Introduction of self-directed ethics training

made by the Headquarters’ supervisors, and based upon

2004

Priority execution plan adopted

this takes the initiative toward making improvements. The

2005

Introduction of the compliance evaluation system

results of the evaluations are compiled according to catego-

Inauguration of the Internal Control Project Team2006

Establishment of DNP Group Basic Compliance Regulations
Establishment of Open Door Room Operating Standards

ry by the Headquarters Corporate Ethics Committee, andare reflected in the next set of companywide measures.
Revisions of the checklist categories and methods are madeas necessary according to changes in laws and regulations,with the checklist having been revised in 2006.
In addition, a system called the Priority Execution Plan
was adopted in 2004. Rather than having all business divi-

14

Compliance with Laws and Social Ethics

Headquarters divisions(1) Corporate Ethics Committee(6) Open Door Room

(2) Management by Objective System(5) Corporate Ethics Training(4) Compliance Evaluation System• Regular training according to rank
• Self-directed ethics training• seminars conducted by visiting supervisors

Examination
Guidance
Education

Business divisions

Reporting(1) Corporate Ethics Committee(2) Management by Objective System(3) Compliance:• self-inspection • Priority execution plan(5) Corporate Ethics Training

Plan

Do

ActionCheck• Regular training according to rank
• Self-directed ethics training

sions address a single set of issues with the same degree

Recipients of corporate ethics training (Unit: Total attendance)of urgency, we get more effective results by having each

12,000assign priority levels to issues according to their particular
circumstances.

(4) Compliance Evaluation System

9,000

In descending order:
Self-directed ethics training
Division General Manager training
New management-level employee training
Entry-level education (new graduates/mid-career hires)
10,852The Compliance Evaluation System was started in

6,787

2005. Under this system, the Headquarters supervisors
measure the progress made in compliance efforts in each

12,358

6,000

5,434

5,165

organization twice a year, and make an objective evaluation (measurement) of each. The results of the evaluations
are reported at the Executive Committee Meetings and an-

5,815
3,000

4,281

4,522

0
537
347

77
471
364

nounced to the entire Group. Each unit is aware of theirown evaluation, and makes efforts to improve it.
The evaluation method was changed with emphasis on
absolute criteria by less weighting of relative criteria in fiscal 2006, so as to appropriately evaluate the efforts oneach management issue.

(5) Corporate Ethics Training
DNP conducts corporate ethics training that incorporates
various curricula appropriate to different circumstances, suchas the following: Regular training according to rank, such as
new employee training and new manager training; self-directed ethics training, in which unit supervisors function as
lecturers and determine and select the subjects of study according to the specific needs of their own units; and seminars
conducted by visiting supervisors from Headquarters.
In fiscal 2006 we broadly increased the number of employees undergoing corporate ethics training by focusing
on how to increase participation, so as to increase the effectiveness of the training.

0

2003

137
518

57
477
438
2004

851
2005

2006

(6) Open Door Room
The “Open Door Room” was established in October 2002
to handle consultation and reporting by employees with regard to questions or concerns they may have in regard toissues of corporate ethics.
The “DNP Group Open Door Room Operating Standards” were announced within the Group in April 2006, so
as to clarify the rules stipulating the proper operation of theOpen Door Room, such as most importantly the strict confidentiality concerning the consultation or report andinformation about the employee involved. We made further
efforts to acquaint all of our employees with the Open Door
Room via our in-house Web and internal reports, which resulted in a significant increase in its use. Nevertheless, no
problems having a particular effect on the conduct of business were noted.
We act according to laws and societal ethics.

15

DNP "Joint Labor-Management
Declaration" Signing Ceremony
President Kitajima and Union Chairman
Beppu shake hands after signing the
Joint Labor-Management Declaration.

Special Report:
Joint Labor-Management Declaration

For Mutual Understanding and Trust
We at DNP greeted our 130th year of operation in 2006.
While we have faced many troubled times during that period, we have been able to overcome them through the joint
efforts of labor and management, and have continued to

Joint Labor-Management Declaration

contribute to the development of society.
DNP issued the Joint Labor-Management Declaration in

Preamble

October 2006, based upon our experience of labor-man-

We mutually confirm the importance of “labor-man-agement cooperation over the past 130 years. The

agement cooperation” to the goal of the perpetualDeclaration confirms that everyone at DNP shares thedevelopment of the DNP Group and society, and tosense of values inherent in the stated goal of “enhancing

enhance the role we are bound to fulfill in society as

the role DNP fulfills in society, and of the development ofa truly superior company, and we hereby issue theboth the company and society,” and furthermore of the im-following declaration:

portance of realizing labor-management cooperation

Page 1
To contribute to 21st Century society
through cooperation
Page 2To seek perpetual development andwealthPage 3To create a corporate culture based on
TAIWA

founded on mutual understanding and trust.
The Declaration was drawn up with the participation of
employees who had been union members and are now inleadership positions, and represents the coming together of
the aspirations of the management team with all employees. Identical declarations had been issued by all Group
companies by March 2007, reflecting the common aspirations of the DNP Group.
The Joint Labor-Management Declaration provides themomentum to improve TAIWA amongst our employees anddeepen the TAIWA between employees and the company,
and thereby to respond to the aspirations of our employees
while continuing to strive to win the trust of society.

16Special Report: “Joint Labor-Management Declaration”

The following is a discussion between

believe this is also connected to thephasizes TAIWA.

President Kitajima, representing thesense of pride that employees feel in

Kitajima: I have been saying that thecompany, and Union Chairman Beppu,

working at DNP.

most important factor in realizing our

representing the employees, concern-

Union Chairman Beppu: I think that thebusiness vision of P&I Solutions is

ing the ideas that went into forming the

pride employees feel in working at

TAIWA. TAIWA means more than

Joint Labor-Management Declaration.

DNP must be valued.

simply exchanging information; it is

President Kitajima: DNP greeted theWhile the company has celebrated

130th anniversary of its founding in

its 130th anniversary, two years ago

2006. At the time of its founding,the union celebrated the 60th year

Shueisha, DNP’s predecessor, had asince its founding. Our mission sincecompany policy calling for it “to con-our founding has been “to enhancetribute to the development of athe social and economic position ofcivilized society.” Implicit in this notion

union members, and to maintain andis that the printing industry must be

improve working conditions.” While

supported so that “Japan can develop

this has not changed, as society diver-

into a modern country to catch up tosifies the achievement of our mission

the level of Western civilization.”requires the evolution of the labor-tied to the realization of mutual trust

Since our 125th anniversary in 2001,

management relationship that has ex-

we have maintained the corporate con-isted up to now. The attainment of our

cept of “contributing to the creation ofgoal of “realizing a rich life” is predi-

an emergently evolving society.” Whilecated on the stability and development

the concept is expressed differently inof management. Cooperation between

these two phrases, what both mean islabor and management is necessary

and cooperation.

that as a company we have sought

given that our perception of our re-

Beepu: I think that the premise for co-since our founding to contribute to thespective positions and the roles in theoperation through TAIWA is “mutual

development of society. We have ofrelationship differs. This makes theunderstanding and trust.”This is thecourse changed along with the times,

building of a relationship of trust im-

asset that those who came before us

and the role we must fulfill has become

portant.

worked so hard to build up over many

more advanced and varied. Our com-

Kitajima: While the company, theyears. I believe that the “deepening ofpany has hammered out many

union, and each employee have differ-

TAIWA” of which you often speak has

measures in our attempts to fulfill ourent positions and roles, and, in addition,

been in play in the labor-managementrole, but none has been more importantvarious ways of thinking, neverthelessrelationship over the years, and that itthan that each our employees share in

all are in agreement about “enhancing

forms the core of the good corporate

the aspiration to contribute to society. I

the role that we must fulfill in society.”

culture of the DNP Group.

It seems to me that both the sharing of

Kitajima: A great deal of TAIWA went

this concept and the accomplishment

into the process of putting together

by each party of what is required ofthis Joint Labor-Management Declara-

them are tied to the realization of thetion. We have for some time been

management concept.

holding regular conferences with the

Beppu: I am of the same opinion. This

union at which we explain major man-means that each must also fulfill theiragement policy directions, and haverole in deepening the proper under-

been getting the cooperation of thestanding of the business vision ourunion in this area as well. There wascompany is advancing and in realizingof course much exchange of TAIWA

that vision. I believe that this process

in the putting together of the Joint La-

requires that there be a deepening of

bor-Management Declaration, boththe TAIWA among the company, theamong members of the union and be-union, and the employees. The Joint

tween the union and the company.

Labor-Management Declaration em-

Apart from this, I have been focus-

For Mutual Understanding and Trust

17ing on employees in leadership
positions, listening to the opinions of
employees who had previously been
union members but are now in leadership positions. I have heard commentsfrom many of these to the effect that
“After leaving the union we found that
it was difficult to get information aboutcompany measures in comparison to
managers or union members.” Wealso made serious efforts to create

those directly connected to either theties for TAIWA in the future. In

opportunities to get the opinions ofcompany or the union, all employees

response we have been holding get-people other than union members inwere able to participate in the creation

togethers for TAIWA between

the process of drawing up the Jointof the Joint Labor-Management Dec-

managers and employees at each unit

Labor-Management Declaration. The

laration. In that sense I think it

since the end of last year. These have

opinions of those people can be repre-

represents the thoughts of all the em-

been occasions for lively exchanges

sented by comments such as “I haveployees.

of opinions, and as a number of units

the image of labor-management rela-Beppu: I see what you mean. While

are implementing organizational andtions as referring to relations between

the text in the first draft created in theother reforms based on what is

top management and the union;

project opened with “Labor and man-learned at these meetings.

please allow all employees to partici-

agement...”, this was changed to “We.

Kitajima: Although there have beenpate in putting the Joint Labor-..” due to the inclusion of a diverse va-

opportunities for TAIWA at worksites

Management Declaration together,”riety of employees. There were

up to now, attempting to give an ear toand “It would be good to connect thisopinions even about the individual

the opinions of more than 30,000 em-

to increased opportunities for TAIWA

words used, and they were reflectedployees has been difficult. I think it

between superiors and subordinatesin the final draft. We also heard from awould be good to share the informa-at the workplace.”By engaging in seri-

majority of worksites that there is ation from the get-togethers at the units

ous TAIWA with people other thandesire to continue to create opportuni-

and other such meetings, and make

Employee Closeup

18

Employee Closeup"It is important that the "Declaration" take root.""I gained a new understanding of the relationshipbetween the company and society."

As a union member I participated in the drafting of the “Declaration.” During the process in which everyone was working
on the draft I got the sense that it was a really good thing.
DNP’s labor-management cooperation is not like the confrontational sort of “labor-management” that those words usuallyconjure up. Rather, there is a sense of the importance of
maintaining good relations so as to resolve issues together,so I think that taking the opportunity of the 60th anniversaryof the forming of our union to draw
up a joint “Declaration” is significant.
Having made the effort to create
this “Declaration,” I think we mustsee to it that it, like the “21st Century Vision,” takes root.

This is spurred me to think again about my workplace. I think
this is a great place to work; I have a lot of autonomy in myjob, have experienced no discrimination due to being female,and the atmosphere within the company is good. Reading
the “Declaration” gave me a new understanding of the relationship between the company and society. The “Declaration“ provides support for each individual, and I think that the further unification of the DNP Group is a good thing. I will beworking as middle managementfrom now on, and I intend to seekout the opinions of my subordinates.

Takashi Igarashi

Keiko Imamura

Marketing Division, C&I Operations

Total Solutions Division, C&I Operations

Special Report: “Joint Labor-Management Declaration”

from that opportunities to take a posi-company is aware that we must sup-donation to NPOs of revenues fromtive approach toward incorporating theport and value them in their efforts,

refreshment booths at sports festivals,

opinions of employees in management

and reform our systems and seek toneighborhood cleanups, and other ac-

decisions.

create the optimal organization thattivities. Such social contribution

Beppu: Another important factor in thistreats the fruits of the labors of eachactivities represent easily understood

Joint Labor-Management Declaration

appropriately.

ways in which our role in society canis that not only DNP, but each compa-

We intend to continue actively in-

be fulfilled through labor-management

ny in the Group announced thecorporating the opinions of the union

cooperation. I hope we can continue

declaration, meaning that the sameand employees into our management

to put efforts into these.

thinking is shared across the entire

policies, and to create workplaces andKitajima: Our social contribution ef-

Group. What I think this means is thatorganizational structures in which ourforts have up to now focused oneven though the company will be

employees can work successfully.

cultural activities, such as graphic arts.

faced with various problems in the fu-

Beppu: I believe that the recent struc-

Nevertheless, I believe we must alsoture, if it is possible to share suchtural revisions are good in the sensebring areas such as regional contribu-

thinking across the Group we can getthat they accurately and fairly corre-tion, international contribution, anddirect TAIWA about reaching solu-

spond to the efforts everyone isglobal environmental contribution into

tions. This means we can take fastermaking toward achieving great suc-our range of activities as well. Labor-

actions toward problem-solving.

cesses and attaining a common spirit.

management cooperation is important

Kitajima: We have also seen great

It is also good that the TAIWA and

here, too.

success gained through TAIWA withmutual understanding were strength-

I hope we can use this declaration

employees and cooperation with theened through information sessions

as the impetus to further round out ourunion in our “New Personnel System.”held through their implementation.

Group, enhance the roles played byThis is nothing short of the realization

I would like to add that the labor-

all, and contribute to the creation of anof our Vision, and we want our ”self-

management cooperation is applicableemergently evolving society by im-

reliant professional” employees toto activities such as the joint hosting ofproving cooperation between labor

work in a disciplined and active way

marathon relays and sports festivals

and management.

so as to contribute to the creation ofas well as work. And not only that,an emergently evolving society. The

there has also been cooperation in the

Employee Closeup

Employee Closeup"The 'Declaration' makes the direction clear.""It is important to maintain TAIWA."I participated in the drawing up of the “Declaration,” and was able to en-

The TAIWA that took place with management during the process of drawing up the “Declaration” was fruitful. The top
management in particular gave the sense that they wanted todrop all pretense and frankly “get the opinions of the employees.” While we already had created a foundation for solid
discussion at our workplace, I get the real sense that the“Declaration” will provide the environment for even freer
speech. I think it is important to maintain TAIWA so as toachieve an active workplace atwhich the entire Business Dept.
shares a common consciousness.

gage in direct exchanges of opinion with management. This is an
important juncture in the history of our company, marking 130 years
since the founding and 60 years since the formation of the union. I got
the sense that the company is seeking enhance our energy by clarifying
the direction to be taken by the labor-management relationship and theroles of each individual employee, and to ensure thorough awarenessof this within the company. Since the “Declaration” I have gotten thesense that there is movement to spur TAIWA to a form different fromthat up to now. While opportunities for
TAIWA with top management have increased, the personal differences remain
large, and I think there will have to be amore assertive attempt to change consciousness for it to take hold completely.

Chie Matsudaira

Yasuhiko Yoshimoto

Sales Division, Information Communications
Kansai Operations

Sales Division, Information Communications
Kansai Operations

For Mutual Understanding and Trust

19

For an Inspiring Workplace

Development of Personnel that Contribute to an Emergently Evolving Society
The trust of society in DNP depends on the trust in eachindividual employee. A diverse group of individuals works
together at DNP, with new and valuable things emerging
from the novel thoughts that bubble up as a result of their
TAIWA. DNP respects the diversity of its individual
employees, and seeks to create a workplace that is
pleasant, free, and vigorous, so that each can develop theirpotential and contribute to the future development of society.

Personnel measures for realizing our
visionOur DNP Group Code of Conduct make clear that we consider the dignity of the human race to be of unsurpassed

and issues that arise from day to day, and discussing how
to resolve them. We are engaging in a variety of personnel measures so as to cultivate a free and vigorous
corporate culture that permits TAIWA to occur without
consciousness of hierarchical considerations.

importance. Respect for the diversity of the culture, nation-

Personnel and Employment Guideline

ality, creed, race, ethnicity, language, faith, gender, age,and philosophy of each individual is our basic policy.

Our goal is for each of our employees to be an independent professional with a sense of responsibility andself-confidence. They shall strive to achieve self realization in order to face challenges positively andresolutely. The company shall provide an environmentand organization supportive of the development andself-realization of individual employees, and will nurture
an emergently evolving Corporate Culture and culturethat will allow each of our employees to display theirfull professional abilities.

The DNP Group believes that employees must be nurtured as self-reliant professionals and also that they must
work together so as to contribute to an emergently evolving society.
Free and vigorous TAIWA among employees is indispensable to making this concept a reality.
TAIWA means more than simply “conversation” or“sharing information”; it means talking over the problems

Personnel and Human Resources Development Efforts for Realizing our Vision
Seeking to create professionals capable of independence and cooperation

Vision for the 21st Century

Management Concept

Business Vision

Efforts and self-realization of each individual

Respect for diversity

Flexible way of working

Training System/Structure

Career Counseling Center

System for encouraging
qualification acquisition

In-house venture system

In-house recruiting system

Goal management system

Personnel ability rating
systemDistance
learning

Education
throughchange ofduties or new
posting

Rating system

External
seminars

Mass
training
Network
learning

Self-reporting system

OJT

Mass
training
Practical
training

Training of Headquarters

Training throughassignment or transfer

Training held by Business Operationsand Group Companies

Creation of a clean and healthy workplace
Personnel/Organization/System/Application

Full and continuous TAIWA
Professional personnel capable of independence
and cooperation

Emergently evolving organizational
atmosphere and culture

Realizing the Vision for the 21st Century

20

Pleasant, free, and energetic workplace environment

For an Inspiring Workplace

CSR Web Report

http://www.dnp.co.jp/csr/2007/21e.pdf
Please visit our Web site for further information.
• Personnel Data
• Transparent and Fair Hiring Practices

Achieving a system in which each individual can display his or her abilities

Shoring up and strengthening the operationsof the Goal Management System and Goal
Challenge System
One important factor in the effective operations of the

Rebuilding the personnel system
DNP has revised our basic personnel system so that eachoverall personnel system is the evaluation of individual
employees, which is closely tied to employee motivation.

individual employee can display his or her abilities and help

The mainstay efforts in this regard within the DNP Groupus realize our Vision. The new system was inaugurated inare the Goal Management System for leadership positions

April 2007 (rating, wages, working hours, commendation).

and the Goal Challenge System for general employees.

The following are the basic concepts of the new system:

Employees set their own goals each term, based upon a1) An incentive system for the realization of strategies,

thorough understanding of the goals of their organization.

such as P&I Solutions, Manufacturing 21, etc.
2) Diverse systems based on the roles and results soughtby each working group and each function ranking.
3) System for promoting and supporting efficient, selfstarting work styles and individual results.

Mutual understanding in regard to the “evaluation” is deepened through the TAIWA of the employee with superiors,
contributing to the employee’s self-enlightenment.
We have also established the MBO Project Team
(MBO = Management By Objectives) so as to encourage

In terms of actual measures, we have introduced the fol-

this system to take root and increase its effectiveness,lowing: new work organization categories and new

and since 2004 have been holding “Goal Establishment

rankings, as well as a new wage system; application of aTraining” nationwide, in which a total of 4,000 people

planned work-type discretionary labor system; commen-

have participated.

dations for timely work results.
The DNP Group is seeking to rebuild the personnel system by applying these new personnel system policies
throughout the entire Group, with the system reflecting theindividual characteristics and personnel strategies of eachGroup company.

Employee Closeup“I have had increased opportunities to have discussions withmy colleagues.”

I think that the Goal Management System provides good opportunities through TAIWA to reconfirm organizational andupper-level staff goals, as well as to clarify personal goals.
Since attending training I have become even more certain of
this. After training, the goal establishment which my subordinates and I conduct has become dedicated to setting goals and schedules that give a sense of satisfaction,
incorporating new, qualitatively different indicators rather than just a systematic arrangement and quantificationof issues and efforts. We also have achieved a higher level of mutual awareness about the roles, risks, andstrategies of the people involved in the work toward realizing these goals. It is my hope that everyone will engage in close TAIWA so as to allow them to display their abilities and achieve their own and the higher goals,
and I hope also that they will show flexibility and alacrity toward changes in their environment.

Yuuki Nakanishi
General Manager,
Manufacturing Technology
Integration Laboratory,
Technology Development
CenterDevelopment of Personnel that Contribute to an Emergently Evolving Society

21Support for employees seeking careeradvancement

such as digitalization, networking, personalization, andglobalization.
It has for some time been necessary to speed up theprocess of generating new businesses, and one way we

In-house Recruiting Systemhave been meeting this challenge has been through our In-

The In-house Recruiting System is one of the personnel

house Venture System, which was inaugurated in 2000.

systems for supporting career formation, along with theUnder this system, an employee submits a new business

Self-Reporting System, the In-house Venture System, andidea, and if it passes an in-house examination DNP pro-the In-house Learning in a Different Department System.

vides a variety of forms of support, such as funds,

It gets high marks as a “system that provides opportuni-

personnel, and equipment, with the employee that came upties for the selection of independent work as well aswith the idea running the business as a manager.

opportunities to expand the range of work,” and is aimed

This system provides a means for employees to format achieving the effective use of personnel and the enliv-

their own careers, and we also see it as a way to enliven

ening of organizations.

the corporate culture.

Personnel with specialized skills capable of bringing
about the realization of new solutions, business development, technological development, or product development

Group companies established through the In-house Venture System
Company nameDate establishedType of business
Personal information security
consulting businessin line with the DNP Group’s business strategy are recruit-

CP Design Consulting

April 1, 2002

ed from within the Group. The employee is given the

M's Communicate

September 12, Consulting business related to cus2003
tomer membership services

At Table

September 1,
2004

Sales promotion support for supermarkets

Mobile IMPULSE

January 11,2005

Retail distribution through mobile
phone shopping sites

YouTooJanuary 23,
2006

Mobile phone website operation featuring soccer and other sports content

opportunity to choose his or her workplace independently, helping with career formation.
DNP has had this system in place for more than 10
years, with approximately 350 persons selected out of a
total of 1200 applicants.

Self-Reporting System

In-House Learning in a Different Department

Under this system, employees fill out a “Self-Reporting

Under this system, an employee can take the initiative inForm” once annually, in which they imagine what form

requesting the opportunity to gain experience in anotherthey would like their career to take and describe the self-

department or office for a fixed term, after which the em-

realization steps they would take to that end, as well asployee returns to his or her original position, where thetheir desires in regard to workplace transfer.

knowledge and skills acquired can be put to use. This

That report is then submitted to the employee’s superiors, allowing the superiors to offer guidance and training

system expands the range of work that the employee canundertake, and also improves quality.

to their subordinates through communication, while has-

The employee’s superiors at the department to whichtening the building of the employee’s awareness in regard

he or she has been transferred provide support for theto the practice of proactive self-realization. It also serves

visiting employee’s goal attainment, and both the employ-

to create a free and vigorous atmosphere and a relation-ee and the superiors at the employee’s original andship of trust.

transfer departments discuss the situation thoroughly so
as to ensure appropriate reassignment after the employee

In-house Venture System
Shifts in business models continue apace in a management environment that is experiencing rapid changes,

22

has returned.

For an Inspiring Workplace

CSR Web Report

http://www.dnp.co.jp/csr/2007/23e.pdf
Please visit our Web site for further information.
• Support for Employees Seeking Career Advancement:
Personnel System/Training Programs (Overview)

Ample training programs

deepen their understanding concerning the need for a ca-

We aim to cultivate employees capable of laying out theirreer development system that enables their subordinates

own individual plan toward achieving their future vision

to display their abilities to the fullest.

and acquiring skills, and who can work with people both inSuccess Support Seminars for female employees

and outside of the company as confident and responsible
professionals functioning independently in their field.

We began holding “Success Support Seminars” for female

DNP offers a variety of practical training programs for

employees and their supervisors in 2006 with the goal ofacquiring the necessary basic skills and specialized

nurturing an organizational culture that allows our female

knowledge for each field, as well as for the development

employees to display their skills to the fullest.

of self-management skills and human interaction abilities

These seminars include explanations of the DNP(human skills, conceptual skills), so as to support the ca-

Group support system, introductions to successful rolereer designs of each individual.

models and their career steps both inside and outside our

DNP also conducts practical courses in communicationcompany, and network meetings (discussions) for career

skill enhancement for managers and leaders, so as toChart of training according to level
Level

Staff

formation.

*CSR and compliance courses are always included in the training described below.
Sales

Planning anddevelopment

LeadershipManager

Production
Management

Production

Plant Manager training

General Manager training / advanced management training
Production Control General
Manager training

Manager training / management foundation

Assistant Manager

General employee

Technical
Engineering

Division General Manager training

Operation General
Manager / Division
General Manager
General Manager

Research anddevelopment

Manager training

New management-level employee training / New management-level follow-up training
Assistant Manager
Training

ForemanForeman training

5~6 years after joining
the company
2 years after joining thecompany
1 year after joining thecompany

Second-year follow-up education

Upon joining the company

New employee guidance education

Step-up seminarFirst-year follow-up education

Female employees and superiors taking a Success Support Seminar

Operations entry
training

Network meeting at a Success Support Seminar for female employees

Development of Personnel that Contribute to an Emergently Evolving Society

23

Efforts to create an energetic
workplace
Acquiring Kurumin, the next generation
certification markWe have been certified by the Tokyo Labor Bureau as a “Business Proprietor Conforming With Standards” in recognition of

DNP's Main Efforts• Change of name from “Childbearing Leave” to “Childcare Leave,” and increase in the term
• Harmonization of the increase the Childcare Leave term with the limit of thenumber of times it can be taken• Increase in the length of time for use in the Part-Time Work During Childcare
System
• Implementation of the Re-Work System• Implementation of the Family Care Leave System• “Companywide Meetings for Life/Work Balance Support Measure Facilitators”

our support for education as called for by the Law for Measures to Support the Development of the Next Generation.

“re-work” System

DNP focuses on the importance of balancing work andWe have been expanding our support for “next generation

personal life, and has implemented an employment system

education” and “balancing life and work” through programs

that matches the lifestyle of each employee while we con-such as the “Part-Time Work System” and the “Workplacetinue to develop our workplace environment.

Return Program,” but there are also cases in which leaving

We engaged in many efforts during the 1st Action Plan

work is unavoidable due to marriage, childbirth, childrear-from April 2005 through March 2007, focusing on the areas

ing, and nursing care. Many of our former workers whoof “Support for balancing work and life,” “Creating a flexible

have been in such circumstances find that later on their liv-

work environment,” and “Human resources labor manage-

ing situation has changed, and that they would like to work

ment.” During the 2nd Action Plan period, which began in

again. We are therefore expanding the array of choices cor-

April 2007, we have been working to implement systems

responding to the diversity of career plans and life plans, so

and create an environ-as to meet such needs by matching the needs of the individ-

ment which will makeual with those of the company, while reutilizing that worker’s

it easier for more ofcultivated specialized knowledge and work skills in the

our employees to work

Group.

easily, while we seek

We can meet a diversity of needs by using the “Groupto improve the under-

Hello Work” organization, which functions as the informa-standingandtion organizer/provider and consultation desk for both

functioning of theparties, to manage DNP Group recruitment information

workplace systems.

comprehensively. This makes for a smooth transition fromleaving work through re-employment.

* Certified among the Group companies are DNP Information Systems (by the Tokyo Labor Bureau) and DNP IMS (by the Okayama Labor Bureau).

Employee Closeup"I have begun working
again with a new spirit"

I left work temporarily to have a baby, but I have begun working in the DNPGroup again through the Re-Work System after a 2-year absence.
Having a baby and childcare after leaving work was tough, but at the sametime I was able to study for some qualifications that I had wanted for some time, and I did want to get back to some kind ofwork quickly. My former boss told me about the “re-work System”, and I was able to go back to work for the DNP Groupagain. The other moms I know have told me that the DNP personnel system sounds really comprehensive. I think more employees should become familiar with the “re-work System” so that people who want to use it can do so with confidence.

24

Kyoko Kusano
System Development,
DNP Information Systems

For an Inspiring Workplace

CSR Web Report

http://www.dnp.co.jp/csr/2007/25e.pdf
Please visit our Web site for further information.
• Efforts to Create an Energetic Workplace:
Respecting Diversity/Flexible Work Styles/Creating Healthy and Safe
Workplaces

Back-to Work from Childcare Program

We use three measures for a “mutual understanding of

The number of employees returning to work after taking

the system” and “smooth communications”:

leave for childbirth or childcare is increasing every year.

• Plan sheets (a data and procedural sheet allowing the use of

Nevertheless, many such employees feel uncertain or con-the system and with the necessary information in each context);

fused about what to do, because, for example, there may• Internet program for support of the return to work for the

be nobody with that experience available for consultation,

person taking leave for childcare “wiwiw”;

or there are no precedents to found at their workplace.

• “Kangaroo Club” return to work seminars.

The “Back-to Work from Childcare Program” constitutes

These are intended to improve communications, not only

an effort to support employees who need to feel secure

between the person taking leave and his or her superiors

about taking leave for childbirth or childcare, and for theirand the general affairs coordinator, but also with employ-smooth return to the workplace afterward.

ees and seniors at the same workplace.

Back-to Work from Childcare Program
Leave

Leave preparation

GeneralAffairs

Superiors

Employee

If the pregnancy
delivery dates are
known
Sequence of events
through return to workand understanding ofrelated systems

After return

Return preparation

6-3
months prior to delivery

2 months prior todelivery

Leave prior
to delivery

DeliveryChildcare leave

Leave after
delivery

2 weeks
2 - 1 months
prior to return prior to return

Period for use of “wiwiw”
Work continues

Exchange of information with superiors
home study courses taken
Kangaroo Club
(Back-to-work seminar)
Meetingprior toreturn(1st time)

Meeting prior to leave

Sequence of events
through return to workand understanding ofrelated systems

Preparation for return

Meetingprior toreturn(2nd time)

Preparation and execution of support plan

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

Explanation of overall
program to employee
and superiors

Oversee continuation of work

Support for employee taking leave (regular exchange of information),

Support for employee and superiors

Support for employee taking leave(provide information, help with procedures),

Support for adjustmentof employee

Support for superiors concerning
decisions made after return to work

Employee Closeup"I hope many people use the 'Return to Work Program"

Azumi Tsujimoto
Sales Division, Electronics
Device Operations

I am really glad to have the understanding of my superi-

Ms. Tsujimoto was the first of my subordinates to takeors and everyone else at work. I got advice about mental

childcare leave. This program turned out to be very

preparation and strategies for balancing life and work by

useful, not only during her leave period, but also whenattending the Kangaroo Club, and by using the Part-Time

I was working out how to make it less difficult for her

Work System after coming back to the workplace I waswhen her workload increased prior to taking leave andable to create a lifestyle rhythm that was not too taxing. I

in the 3-month period after her return. I think it is a very

would hope that many others will try out this system.

well-constructed setup.

Masao Kuwako
Sales Division, Electronics
Device Operations

Efforts to create an energetic workplace25

Mental health guidebook and original DVD

Senior Staff System

health maintenance pillars of prevention, examination,

Faced with the aging/low-birthrate phenomenon in Japa-

and treatment, with the goal of supporting the health ofnese society and the increasing need for older workers,

our employees and their families. The Total Health Sys-

the DNP Group introduced the Senior Staff System in Oc-

tem meets a broad array of needs through the DNP

tober 2000 as a personnel reemployment system byHealth Network (telephone consultation), health consulta-

which we hope to achieve the following goals:

tion office, nutrition counseling, exercise counseling,•To respond to concerns about future increases in themental health counseling, a mental health consultation of-pension eligibility age by expanding work opportunities

fice, clinic, comprehensive health testing, nursing carefor people age 60 and older;consultation services, etc.

•To enhance the overall ability and “strength” of the DNP

We focus on health from the long-term perspective,

Group by making effective use of the abilities and experi-emphasizing lifestyle diseases and metabolic syndrome

ence cultivated at work by people who have alreadyprevention and the establishment of mental and physicalreached the mandatory retirement age.

health. At the same time, we are strengthening support for

In April 2006 we clarified the necessary qualifications forhealth promotion that meets individual needs. This ap-

participation in this program.

proach amounts to summing up our corporate culture as

In principle, the rehired employee will remain in the unit
in which he or she is working as of retirement age, so as to“Health itself, and an approach that values efforts toward
maintaining health.

make sufficient use of the experience and knowledge already gained there.

Mental health care

We efficiently conduct the matching of employee's inten-

We engage in thorough education about mental health andtions with requirements of the company by registering

are expanding our mental health consultation desks, be-employee's needs in advance.

cause we believe that mental health must be maintained
and strengthened just as physical health. We are continu-

Efforts for the physically challenged

ing to proceed with mental health education as we did in“Normalization.” This word expresses the basic philosophy

the last fiscal year, and we are also distributing guidebooksof the DNP Group with regard to the employment of theand DVDs and holding mental health courses and lecturesphysically challenged. “Normalization” of course is derived

for managers. We also started a new self-care course forfrom the word “normal,” and from the DNP Group’s per-regular employees in fiscal 2006.

spective employment of the physically challenged is“normal” or “regular.”

In consideration of the psychological burden of employees wishing to consult with a specialist, for their

We apply this philosophy by recruiting the physicallyconvenience we have established a counseling room out-

challenged year round, and we work voluntarily with public

side the company, in addition to those we already haveinstitutions in holding interviews and mini-interviews with(mental health consultation office, 24-hour telephone con-them. Managers and leaders at worksites are also given

sultation, etc.).

normalization seminars, assigning courses and other necessary training, and by creating a working environment in

Productive Time Resource Project activities

which the physically challenged work together with the

One effort unfolding as a result of the efforts that went intoable-bodied we achieve a workplace at which everyone

the Joint Labor-Management Declaration is the Productive

can feel motivated to work with great energy.

Time Resource Project, which is proceeding through thejoint efforts of labor and management. By labor and man-26

Support for health maintenance promotion

agement both fulfilling their respective roles and working

We employ a Total Health System founded on the three

cooperatively, time resources are generated for each indi-

For an Inspiring Workplacevidual employee. These time resources can be used toWorkplace accident rate

develop new products or to improve personal life. Laborand management will work together every year to deliber-

2.0

ate and determine companywide policies emphasizing the
productive use of time resources, upon which policies the

1.79

the DNP Group has established group-wide prevention

1.85

1.95

1.90

1.45

1.45

1.49

1.06

Our policy is “zero tolerance for sexual harassment,” and

1.78

1.5

daily activities of the company will be based.

Sexual harassment policy

1.77

1.15

1.03

1.0
0.52

0.57

0.66
0.49

0.5

measures. Zero tolerance for sexual harassment is en-

DNP Group0

shrined as a work regulation, and we work to ensure that

2001

2002

0.50

All printing companies
2003

2004

2005

0.44

All businesses
2006

each employee is aware of this. We also implement train-

Secure Working Environment

ing for managers and leadership positions.
We established our Anti-Sexual Harassment Rules in April

DNP has created an earthquake response outline and a central

2007, with the goal of maintaining a sound workplace envi-

disaster prevention basic plan, in order to secure employees’ronment with no sex discrimination and with TAIWA

safety, restore functioning to workplaces, and support employ-established as a core value. These rules provide the neces-ees’ families and local residents in the event of a disaster.

sary means for prevention, quick identification of problems,

We established “Disaster Prevention Councils” in oper-

and proper resolution. We have also established a consulta-

ations and Group companies at our headquarters and intion office open to all Group employees, and have begun

outlying areas. In the event of an earthquake, these coun-training by experts of the general affairs personnel at eachcils are prepared to automatically begin functioning assite including every group, so as to increase their skills.

response headquarters. Six action teams are to take specific disaster prevention measures and earthquake

Workplace safety

response measures, with each team taking responsibility

We practice risk assessments for the prevention of work-for human rescue, care of buildings, asset protection,

place accidents. We follow risk evaluation standards based

business operations, PR, or community aid.

on the analyses we have performed up to now to identify

Beginning in 2006, BCP (Business Continuity Plan)areas of risk in the production process during the course of

Creation Teams were established within the central Di-

daily safety activities. The workplace is then made safer bysaster Prevention Councils, and they have begun

repeating the risk reduction cycle that is determined ac-

establishing measures for high-priority businesses. Fur-cording to the evaluation and subsequent measures. Our

thermore, by shoring up the emergency communications

basic safety maintenance philosophy is “Focus all knowl-

network system, which consists of disaster wireless sys-edge on maintaining and enhancing workplace safety, andtems at 29 business sites in the Kanto area and satellite

always seek improvement.” We eliminate risk and conduct

phone facilities at 42 sites nationwide, we are able to pro-

reduction measures, in addition to including equipment forvide prompt and appropriate assistance not only for thethe onsite workers with the perspective of safety special-business affected by the disaster, but also to regional res-ists. We also seek to improve in terms of management

idents and businesses.

through analysis of the basic risk generation factors.

In certain areas we also use the Emergency Earthquake
Information* provided by the Japan Meteorological Agency.
This system provides an alert that major seismic activity is
anticipated, activating our damage control measures.

*Emergency Earthquake Information
This is information reported as quickly as possible; magnitude and scale are determinedaccording to the observed data recorded immediately after an earthquake occurs, and based
upon this the time of shock occurrences and the magnitude at each location are estimated.

Efforts to create an energetic workplace27

For New Value Creation

P&I Solutions
Goods and services provided by DNP are used in a wealth of items that consumers encounter every day,from books and magazines through TV and computer displays, semiconductor equipment in mobile phones
and electronics, Smart cards for banking, home and auto interiors, and food and beverage packaging. DNP
works with customers to create new values and support the functioning of society. DNP's P&I Solutions isfinely attuned to the needs of the times, and works with customers and consumers to resolve issues. P&I
Solutions offers success to customers and a richer life to consumers.

society scene.”

Advancing P&I Solutions

In addition to the “Open Innovation” we engage inthrough our ties with the “knowledge” of other organizations, such as universities, companies, and local
authorities, we are also engaging in “communication” with

Issues are discovered through TAIWA with customers,“consumers” that engenders “emergent evolution,” and re-and P&I Solutions are generated to resolve them. Exam-search into the “community” that supports thisples of issue resolution are shared broadly throughout the“communication,” and subsequently the “social founda-

company, and often provide hints at solutions for othertion/infrastructure” that is produced by this “community.”

problems of other customers. While this does not mean

We also hold seminars from which we select themesthat identical solutions can be applied, the process byconnected to P&I Solutions and conduct joint research.

which the solution has been drawn out of an issue is use-

This has resulted in our publication with Keio University

ful in coming up with ideas.

SFC of “The Emergently Evolving Society: A Message

In October 2006 we created a space in the DNP Got-from the Keio University

anda Building dedicated to the sharing of such solution

SFC~DNP Emergent Evolu-

examples, where many employees are able to engage intion Project.”

TAIWA about them and make new discoveries.

continue in efforts to trans-

P&I Solutions are developed as the result of work con-form the themes emerging

tracted from customers. In addition to our approach offrom such seminars and re-“contributing to the creation of an emergently evolving so-

search into businessciety,” DNP is beginning efforts to plan and construct theapplications.

means for realizing an emergently evolving society intentionally, by conceptualizing the “emergently evolving

28

We willFor New Value Creation

Example of progress

DNP's UIM Cards Do Their Part in Supporting the
Telecommunications Infrastructure
The number of mobile phone (including PHS) subscriptions in Japan has topped 100 million. The use ofmobile phones has spread to 79.6% of the population(as of March 2007), and they have become an indispensable tool for life and business.
Did you know that DNP’s Smart cards are being usedin mobile phones? NTT Docomo’s 3rd generation FOMA*
mobile phones use them as their UIM (User Identity Module) cards. The UIM card records important and necessary
subscriber information, such as telephone numbers, network contracts, etc., when the phone is used. If this card
is not installed the telecommunications functions of thephone cannot be used, while at the same time the system
is made convenient by allowing the phone to be used justby switching the card without changing the contract.
DNP has been developing Smart cards since 1981,
and has been manufacturing a variety of Smart cards fora broad array of applications, such as credit cards, cash
cards and employee IDs. We have also offered mobile
telecom-use cards since the car-phone era for onboard
applications, and we have been working together withNTT DoCoMo in developing the world’s first 3rd generation mobile phone-use UIM cards. The latest version ofthese was released in 2006, with these high-quality, highsecurity cards doing their part in supporting thetelecommunications infrastructure that our modern society
cannot do without.
*"FOMA" is a registered trademark of NTT DoCoMo.

Client Comment"It's easy to get the idea across;
I trust DNP."
We began our third-generation “FOMA” mobile phone service in 2001. The development project for UIM to be used inFOMA started several years before FOMA went on sale.
We planned to be the first in the world to introduce the UIMcard, which can be used worldwide, and together with DNP
we took up the challenge of doing the research, spec creation, planning, and development. As a manufacturer, DNP
has a lot in common with our company in terms of corporate
culture, and the ability to connect smoothly with DNP’s
Sales & Development Team made for a sense of trust rightfrom the start. That relationship continues to this day.
I had the opportunity the other day to tour DNP’s production facilities, and saw just how solid their security
controls are. There have been no bugs in the production
process so far, and we feel safe putting our trust in theircraftsmanship. We are looking forward to maintaining thislevel of quality while we face coming challenges, such as boosting
UIM storage capacity, together
with DNP.

Mitsuru Murata
Director of Product Development Group
Communication Device Development Department
NTT DoCoMo, Inc.

P&I Solutions

29

Client Comment"Epoch-making printing speed andquality!"
The PrintRush units installed at all of our stores are always bustling with customers, who find it easy to use themto print photos from their mobile phones and digital cameras. Many of them are repeat customers, because thePrintRush is simpler and faster to use than home printersor other similar equipment, and it produces better quality
prints. We therefore see PrintRush as a good tool for attracting increased numbers of customers to our stores,
Self-service digital print system, "PrintRush"

New communications through printing
There has been a major shift in consumer attitudes toward
analog cameras, which provided the bulk of DPE shop
photo printing business up to now. The use of digital cameras has spread rapidly, and consumers are making theirown prints at home. DNP’s self-service digital print system, “PrintRush,” is the solution we offer in response to
the increasing need for low-cost, fast, high-quality, on-thespot, simple photo printing, as well as to the diminishingnumber of DPE shops. PrintRush uses dye sublimation
thermal transfer to attain picture quality equal to silver ha-

where they will have the opportunity to look over and purchase other merchandise. The latest PrintRush modelreads data more quickly and has a more conveniently located memory media slot, improvements that reflect theopinions expressed by our customers and those of us at
the store. One gets the feeling that DNP really pays attention to what the user wants. I am a photography lover
myself, and I print out about 500 photos a month. I was recently able to use a nearby PrintRush for the speedy
printing of photos of a dinner party with visiting relatives. I
gave them prints on the spot, and everyone was very
pleased. We were able re-experience the dinner and thememories of a few hours earlier
by looking at these prints, and I
once again became aware of thepower of communication throughphotography.

lide photography, and offers the fastest printing speed in
the business, at 3 seconds per print. It also benefits the
new lifestyles of our customers through its superior opera-

Yu Horikoshi
Director, General Manager, Product Dept.
BIC CAMERA INC.

bility and easily understood print pricing system.
In addition, we offer other solutions such as our “KiRe-i” ID photo boxes, which many customers choose for
their resume, passport, and other ID photo needs, and our“CENTURIA” series of color printing paper and film. DNP
seeks to offer new communication methods in the digitalage that were not available through analog age “printing.”
Colon film

"Ki-Re-i" ID-photo box

Inkjet paper

30

Film with a lensFor New Value Creation

Technology offering cozy living spaces
DNP has been applying and developing printing technologies to the decorative interior business, such as doors,
walls, ceilings, and floors, since the 1950’s. While ourdecorative materials must of course have fashionable designs that brighten up living spaces, they must also
possess the functionality that supports comfort. DNP has
developed in EB coating technology for more than 20
years in pursuit of improved functionality, and we apply
this experience in creating our decorative products.
EB coating uses EB (Electron Beam) radiation for the
instantaneous hardening of coating resin. EB coating provides better scratch and stain resistance and less fadingor deterioration than the urethane or UV resin coatings
used up to now, and is superior in terms of durability, usefulness, and quality consistency. It requires only one
second of radiation for hardening, eliminating the need fordrying, making high-speed production possible and producing great benefits in terms of the environment, such as

Client Comment"DNP is providing flooring materials
with very high added-value."
We have always offered our homes to new owners in pristine condition, which has meant fixing or changing interior
furnishings that were scratched, scraped, or otherwise
damaged during the construction process before we handover the keys. DNP began offering its EB coating flooring
about a year ago, and we have found a marked decrease
in damage in new condos in which it was used. The building contractor, has expressed great pleasure with thisproduct, noting a “reduction in scheduling and construction
expense losses.” It also enables us to create living spaces
with designs and colors that impart the same impression
as the condo buyers get at the open house. Owners haveremarked after moving in that the flooring is “durable andeasy to care for.” I think this really is “high-quality, next
generation flooring.” I am looking forward to seeing what
DNP’s technological prowess
comes up with next.

reduced energy consumption and fewer CO2 emissions.
EB coating uses no toluene or xylene, which can be responsible for “sick house” syndrome, providing a sense ofsafety and security to consumers.
Human living space needs are evolving as we enter

Masakatsu Hirai
Operating Officer and Deputy Managerof the Tokyo Construction Branch Office

Sumitomo Mitsui Construction Co., Ltd.

the 21st century, with concerns about the “environment”
and “health” being added to “design” and “functionality.”
DNP’s development of EB coating technology anticipatedthis evolution, and is being applied to a variety of decorative products so as to support even cozier humanhabitation.

P&I Solutions

31

For New Value Creation

Management in Support of P&I Solutions

thesis of the printing technology (PT) and information
technology (IT) that we have cultivated over many years.
We believe that contributing to society through our business is fundamental to our CSR efforts.
During a time of great changes in market trends andtechnologies, we maintain the trust of our customers byterials, such as membrane manufacturing, coating, lamination,
excipient, transfer, cutting, polishing, bag manufacturing/forming,and book technologies

spurring our R&D Division to develop our own technolo-

What is IT (Information Technology)?

gies, creating the seeds of new solutions and offering

RFID

1) Increased information processing sophistication
Information processing, which was fosteredthrough printing technology as a communication medium, is becoming more and moresophisticated as the networking society develops. We are developing digital printing
technology that brings personalized elements
to mass production, security technologies for
improved data security, and processors such as Smart Cards andRFIDs that further modularize information processing.
2) Precision patterning
Printing, which is the mass-production of precise
patterns, is a manufacturing technology forwhich we seek thoroughgoing improvements
and advances. We are, for example, developing
semiconductor photomasks that require eversmaller nano-scale circuits, as well as ultra-minMEMS
iature three-dimensional structured Micro Electro
Mechanical Systems (MEMS), Ink Jet Technology, and manufacturing
innovations for display components using printing technologies.
3) Increasingly intelligent materials
Incorporating more sophisticated nanomaterials
technology in printing techniques make productswith more sophisticated and complex functions.
Other areas of interest include gas-barrier packaging that will enable the long-term storage ofprocessed foods, safe and environmentally-conIB Film
scious building materials, advanced optical film
for clearer displays, and digital photo materials. We are also beginningto turn our attention to the bio and energy areas.

• Information processing technologies: Input/output, conversion,synthesis, compilation, and transmission technologies. Examples:
Text and picture processing, editing technologies, database compilation technologies, CG technologies• Human Media Interaction (HMI) technologies: Technologies related to the interaction of humans with information. Examples: fontdesign, expressive technologies such as color matting, IF technologies, natural language processing technologies• Data security technologies: Technologies for the accurate transmission of the correct subject, retention, and improper use prevention.
Examples: Code processing technologies, personal data processing,
control technologies, copyright maintenance, biometrics

DNP Technology: Advancement seeking
an emergently evolving society
Data filtering
Data mining
Network security

Information
Processing
Solutions

In c
r ea

DNP’s technology development

IT is the core technology that makes human communications
rich and rewarding.

hi

l
ve
-le
h
g

ce
pro

CD-ROM
Lead frames

RecommendationengineMPEG-4 module

RFID
systemMicro Electro
Mechanical
Systems

Smart cards

Printed circuitboards

ea

r

Inc

ly

g
sin

is

c
re

p

a
ep

Biomaterial

Organic EL
displays
Fuel cells

Color filters for LCD

e
nt
yi

Shadowmasks

Information
Technology

s

rn

tte

Photomasks)(2

Emergently
evolving
societymation
infor
f
o
ng
ssi

DVD

(1 )

higher-quality solutions.

(3)

I

DigitalphotomaterialsllAdvanced optical film

gl
sin
a
Environmentally-consciousencr

Gas-barrier packaging

32

ia l
s

and consumers and to create new values through a syn-• Materials technology: Synthesis of new materials and dispersion/mixing technologies. Examples: Planning and manufacturing
technologies for inks and adhesives, photosensitive materials,
coatings, etc.
• Patterning technologies: Technology that causes letters, pictures, or patterns to take form on a base. Examples: printing
technology, typeset/offset/gravure printing, lithography, inkjet andother non-solid printing technologies• Conversion technologies: Technology for changing the form ofmaterials, or materials processing such as by combining materials.
Examples: Processing technologies for film, paper, and other ma-mater

DNP seeks to solve the issues faced by our customers

PT is the core reproduction technology that makes informationor functions take shape.

ig
en
t

DNP's R&D

What is PT (Printing Technology)?

sin
gl
y

R&D for contributions to theemergently evolving society

decorative materials

For New Value Creation

CSR Web Report

http://www.dnp.co.jp/csr/2007/33e.pdf
Please visit our Web site for further information.
• Research & Development for Contributions to the Emergently Evolving Society:Research & Development System/Investment of Research an Development• Intellectual Property Rights Management Efforts:
Framework for Promoting Intellectual Property

Intellectual Property Rights
Management Efforts.

Number of patents and utility model rights held
800
600
400

Intellectual property
DNP aims to create and nurture intellectual property withstrong business values, and also to improve its quality, so

200
0

'04

'05

'06

as to make P&I Solutions a reality. We have created astructure for the acquisition, management, and protectionof intellectual property, such as patents, while at the sametime ensuring that we do not infringe on the patents ofother companies.
We educate and enlighten our employees about intel-

Number of patent disclosures
2,000
1,500
1,000

lectual property so as to create a corporate culture inwhich all laws and regulations pertaining to intellectual
property are upheld.

500
0

'04
Basic ResearchElectronics'05
Information Communication'06
Lifestyle and Industrial Supplies

Other

Outline of Activities
1) We maintain and operate an intellectual property training
system to improve our intellectual property generation andapplication skills.
2) We encourage intellectual property generation and its application by our employees through an appropriate
intellectual property compensation system.
3) We promote preliminary technology studies and data usage environment improvement so as to be sure to generateintellectual property while preventing the infringement of
the rights of existing patent owners.
4) We evaluate the quality of inventions, make revisions tothe supplementary/inspection application for important applications, and accordingly evaluate the results of externalbusinesses while seeking effective practical use.
5) We have constructed and operate a system for properly
maintaining rights we have acquired.
6) We shore up inventions by evaluating and improving each
important intellectual property owned by our company, andsupport business operations in the achievement of theirtargets.
7) We enforce a strategy for ensuring our intellectual property
rights in accordance with our business area strategies.
8) We maintain and properly apply a patent portfolio thattakes into account other companies as regards the themeof each business domain.
9) We provide guidance and education about hypothetical risk
appearance and reduction in the event that there is a business shift away from the established business domain of abusiness operation.
10) We hold lectures concerning intellectual property laws as
they relate to our clients (copyrights, premium and representation rules, trademarks, etc.), and support thebusiness of our clients.
11) We support our clients’ business by acting for them intrademark investigations.
12) We align all agreements with our business activities andpresent them to our business operations, which are instructed to comply with all agreements.
13) We cultivate a fair corporate culture by educating and enlightening our employees about intellectual property sothat they will properly advance our rights while respecting
the rights of other parties.
14) We dispatch representatives to all intellectual property organizations (Japan Intellectual Property Association,
Japan Fair Trade Commission, Licensing Exectives Society JAPAN), so as to contribute to the creation of anadvantageous environment in the industry by offering
positive recommendations.

Management in Support of P&I Solutions

33

Delivering products and services with thehighest standard of quality in the worldtems in our packaging operations.
We are currently proceeding in the area of information
management with acquisition of IT security certification(ISO/IEC15408) for the handling of credit cards, securities,
and other business documents, "privacy marks" for person-

Promoting "Manufacturing 21"

al information, and Information Security Management

We at DNP believe that as a corporation our primary social

Systems (ISO27001/ISMS). (See page 7)

responsibility lies in providing products and services that
actually exceed the expectations of our customers andconsumers. In order to focus on maintaining and enhancing
a level of manufacturing that produces safe goods with thehighest standard of quality in the world, in 2005 DNP created the “Quality Policy,” with all DNP Group units andemployees participating in “Manufacturing 21.” We havequantified activity targets and result indicators for quality,
cost, delivery, and environmental aspects, and we seek toachieve these targets and eliminate all waste by opening
this system up to all employees. We also seek to encourage TAIWA not only within each business operation, butacross operations as well, while at the same time continuously working to provide solutions to client issues bymaintaining daily TAIWA with them.

Acquiring certification for quality assurance
We are making all efforts to acquire a variety of certifications so as to continuing making steady progress in quality
improvement.
All of our business operations have acquired ISO9000
series certification for quality management, as well as

Quality Policy
1. We synthesize printing technology and IT under the“P&I Solutions DNP” banner, offering products andservices with the highest standard of quality in theworld as solutions to issues facing our customers,
and gaining the trust of our customers by maintaining
and exceeding that level.
2. Our mission is to provide products and services thatare safe and environmentally-conscious, and we seek
to minimize environmental impact.
3. We shall develop the world’s leading edge production
technologies, and the highest global standard of efficiency in our manufacturing system.
4. All employees shall be united in seeking to maintainand continuously improve a quality system that consistently satisfies our customers, through TAIWA both
inside and outside the company and our “Observe,
Listen and Think Carefully” policy.

HACCP9000 certification for food safety and quality sys-PQS Award Given by Intel Corporation
DNP was named a recipient of Intel Corporation’s Preferred Quality Supplier (PQS) award foroutstanding performance in providing products and services deemed essential to Intel’s success. The company was recognized for its efforts in supplying Intel with photomasks.
“DNP has delivered excellent mask support to Intel as a technology partner, second sourcemask supplier, and business continuity provider,” said Chiang Yang, vice president, Technology
and Manufacturing Group, and director of technology, Intel Mask Operations. “Winning Intel’s
PQS award represents DNP's commitment to excellence and continuous improvement. We truly appreciate DNP’s results orientation and customer focus and want to congratulate them forreceiving this award.”
Award ceremony

34* Manufacturing 21: This is a Group-wide project to create a muscular manufacturing structure responsive
to changes in the marketplace, with the goal of realizing the DNP Group's Vision for the 21st Century.
We are creating a manufacturing structure capable of constant improvement and continuous,
sustainable strength, so as to improve profitability and asset efficiency in our manufacturing.

For New Value Creation

CSR Web Report

http://www.dnp.co.jp/csr/2007/35e.pdf
Please visit our Web site for further information.
• Acquiring Certification for Quality Assurance:
ISO9000 Certification Status/HACCP9000 Certification Status• Efforts to Create a Crisis Action Plan:
Survey on Earthquake Risks• Realizing a Universal Society:
Packaging Design Guidelines - USE·FULL® Packaging -Product safety management system

Efforts to Create a Crisis Action Plan

Our basic policy regarding product safety is to work to ful-

The long-term loss of our functions and ability to conduct

fill our social responsibility by not only producing products

business during a crisis caused by, for example, a large-

consistent with the relevant standards and laws, but also

scale natural disaster or fire could seriously affect andexceeding the needs and expectations of customers.

cause trouble for our clients and our many stakeholders.

Continuity is important in product safety efforts. We con-

DNP would as a result lose not only sales, but could also

duct a risk evaluation of all product lines twice a year, andtrust and suffer brand damage; the impact of such anbased upon the results we make design changes and tech-

event could even threaten the continued existence of thenological improvements to ensure safety. Our Product Safetycompany. As part of our overall crisis management, DNP

Standards are set out in document form for application.

has therefore created a BCP (Business Continuity Plan)

In addition, we have been conducting PL training seminars since 1994, and began employing our Intranet
network for this purpose in fiscal 2000. 14,058 employees
have completed the network seminars in total.
Product safety management model
When developing
a new productProduct design revision;
Production technology
improvement

to serve as the action plan in the event of a crisis andminimize risk.
In creating an action plan in the event of an earthquake, which is the scenario of greatest concern, we arelooking into the types of measures necessary to business
continuity in the event of an earthquake of magnitude 6. A
great deal of our business is international. It would be difficult to contract our production to other companies, andthe impact on society would be large, so we have com-

When a complaint
has been received

Writing
Continuous
PL risk check improvement product safety
procedures

pleted a BCP for the Electronics Business Division, andare in the process of establishing BCPs for the Information Systems Division and the Information Processing

Twice a year for
all products

Manufacturingaccording to
written procedures

Solutions Operations.

Realizing a universal society
New safety response for consumer products

We have set up a Universal Design (UD) promotion group

The May 2007 revisions to the Consumer Products Safetyat headquarters, with the goal of creating products that

Law are aimed preventing the recurrence of product acci-

can be used safely and comfortably by everyone, espe-

dents through the accumulation and disclosure of productcially the elderly, pregnant women, and children. Efforts inaccident information about products that consumers use

this area include “Color UD,” which is important in print-

in their daily lives. DNP has established the Product Safe-

ing, as well as attempts to create printed materials thatty Committee as the body in charge of the safety of DNP

convey information accurately. The “DNP’s Five criteriaGroup products. In the rare event of a product accident,

for Universal Design” are followed with particular care in

all information about that accident is consolidated by the

all stages of packaging design, including planning, devel-

Committee. The DNP Group Product Safety Regulations

opment, and design, with consideration given to easy-to-

stipulate the operation that is to create a strategy for han-understand labeling and enhanced usability, so as to offer

dling the accident, to publish information, and otherpackaging that consumers will find it a pleasure to use.

measures for ensuring a timely and appropriate responsethat will prevent damage from spreading.
The DNP Group extends the Product Safety Manage-

We are working to promote UD, and introduced our UD
efforts at the “2nd International Universal Design Conference 2006 in Kyoto.”ment System to cover all products, not just consumer
products.

Management in Support of P&I Solutions35

We are promoting Integrity practices
together with our suppliers.

DNP Group CSR Procurement Criteria

Along with working to create value for ourselves and ourAt all of their branches and collaborating companies, DNP
and the suppliers that provide DNP with raw materials,
machinery, buildings, and other items, domestically aswell as abroad, shall carry out CSR (corporate social
responsibility) efforts in the areas described below.

customers, DNP is also working to enhance the compatibil-(1) Compliance with Laws and Social Norms

ity with society of the entire value chain. The existence of• Establish corporate ethics policies and regulations, and promotemeasures to ensure compliance with laws and social norms.

superior goods and services is pointless if the production or
procurement processes are not in tune with social norms.

(2) Preservation of the Environment and Product Safety

equipment, construction supplies, and other items so that

• Provide a safe, healthy, and sanitary environment for employees
and neighboring residents.
• Comply with related laws and regulations to strictly control all
steps leading up to the final disposal of wastes.
• Put priority on purchasing items that have a minimal environmental burden, including parts, raw materials, equipment andmaterials, and office supplies.
DNP’s green purchasing efforts are listed on P48.
• Proper management of chemical substances is conducted incompliance with various laws related to protecting the environment
as well as the DNP Group Management Criteria for Chemicals.

society, DNP, and the suppliers can all achieve sustainable(3) Compliance Regarding Labor-Related Matters

growth. To this end, in March 2006 we amended our Basic• Equal opportunities for all employees, elimination of discrimination, and respect for and consideration of human rights are
put into practice.
• A system is in place and put into effect to prevent inhumane
labor practices, such as child labor and forced labor.

We are moving forward with a variety of management
measures with the goal of attaining high value creation thatis in tandem with a strong compliance awareness.

DNP Group Purchasing Policy
DNP seeks the cooperation of our suppliers of materials,

Procurement Policy, and established our Group-wide DNPGroup CSR Procurement Criteria.

(4) Compliance Regarding Information Security
Basic Procurement Policy
Fairness: In choosing suppliers, we follow fair competitive
principles based on comprehensive judgment encompassing quality, price advantage, assurance of delivery,
follow-up services, reliability, and technical capabilities.
Equal Opportunity: As regards procurement, we believe
in being positive in purchasing materials that meet our
financial- and quality-related criteria, without adhering
to our existing suppliers regardless of whether a supplier is based in Japan or abroad.
Mutual Development: Through fair business transactions, while endeavoring to build mutually trusting
relationships with the suppliers with whom we conductbusiness, it is our hope to maintain relationships that
contribute to mutual development.
Social Responsibility: Through mutual understanding andrespect for all laws, regulations, and business customs
in our business transactions, our company and the suppliers, with whom we conduct business, believe that wemust fully live up to our social responsibility, without neglecting to give due consideration to labor conditions,conservation of natural resources and the environment.

36• A very thorough system has been set up, comprised of a basic policy, internal regulations and other measures, as well as
an educational and training program for the employees, toprevent the unauthorized release of information, such as personal information or confidential information obtained in theprocess of conducting business with other companies.

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

(6) Compliance with Rules for Fair Competition• DNP carries out its corporate activities in compliance withbusiness relevant laws and regulations as well as in accordance with the rules for fair competition.

The DNP Group believes the abovementioned CSR
Procurement Criteria to be an essential requirement forcarrying out business transactions. We will be checking
periodically to ascertain to what degree these criteria
are being observed. It is our sincere wish that all of our
suppliers have a clear understanding of our CSR Procurement Criteria and make every effort to carry out
their activities in accordance with the Criteria.

For New Value Creation

CSR Web Report

http://www.dnp.co.jp/csr/2007/37e.pdf
Please visit our Web site for further information.
• To Promote Reputable Activities with Suppliers:
Requests from the DNP Group to its Suppliers

Supplier briefings and surveys
The DNP Group has, in the 8-month period since May
2006, conducted 28 briefings for 3,300 suppliers in 8 cities
throughout Japan, including Tokyo, so as to elicit compliance with the CSR Procurement Criteria.
In addition, DNP also conducts regular surveys ofcompliance by suppliers with the CSR Procurement Criteria. These regular surveys seek to determine compliancein areas such as management systems (ISO acquisition),environmental stipulations (chemical substance management, waste disposal, health and safety measures, etc.),
and social responsibility (legal compliance, human rights
compliance, risk management, and others).
DNP continued conducting regular surveys in fiscal
2007 so that we can unite with our suppliers in seeking torealize a sustainable society. We are also looking into

Supplier Comment"Let's contribute to society together
based on a strong relationship of trust."
Our company has become closely tied in a strong relationship of trust with DNP over many years through our
chemical products business, mainly for packaging and industrial film products.
Our CSR is founded on our basic company ethic, which
is based on the proverb, “Listening to reasons leads prosperity.” This is also our code of conduct when it comes toour stakeholders. The DNP CSR Procurement Criteria clarify DNP’s stance toward both its suppliers and social
responsibilities. As a partner of DNP, we are working to develop low-environmental impact
products and engage in green procurement, and to do our part inbuilding a sustainable society.

holding on-site inspections and seminars.

Ryoichi Oike
We listened to the reactions of our suppliers to our efforts:

Manager, Environment & Safety Group
Environment & Safety Department
Toyobo Co., Ltd.

• We do business with DNP everywhere, and as a groupare responding to the CSR Procurement Criteria. We
are currently in the process of drawing up a plan.
• We were just at the point where we were moving forward as
a company with obtaining ISO certification, and the DNPCSR Procurement Criteria gave us a push toward doing so.
• While we were already aware of the CSR concept, when
we looked at the survey form we became aware of somethings we hadn’t thought of. There are portions that are
in line with in internal controls and the New Corporate
Law, and it is one factor behind the structural reforms inwhich we are engaging this term.
• We conduct strict control of chemical substances. We
took the DNP Chemical Substance Survey as an opportunity to implement the same controls on the products
we deliver as other companies have.

Supplier Comment"Attending the information sessions
enhanced our CSR efforts."
We have operated for 53 years as a processor and seller ofpackaging materials. DNP is a special client to whom we deliver special paper and a variety of packaging materials, socompliance with their CSR Procurement Criteria is an especially important and necessary issue for us. We have been
engaged in explaining the significance of CSR to our employees at meetings and conferences since attending theinformation sessions, and this has enhanced our awarenessof CSR throughout the company. In addition to our environment efforts (we have acquired ISO14001 certification), weare starting an internship program (work experience for students) and are seeking to contributeto society in the spirit of “Good forthe buyer, good for the seller, goodfor the community.”

Shoichiro Negishi
PRESIDENT
KANTO PROCESSED PAPER Co.,Ltd.

Management in Support of P&I Solutions

37

Seeking to Increase Share Value

IR Activities
We put maximum effort into Investor Relations by providing timely information disclosure to our investors
and shareholders, so that they can make accurate valuations of our enterprise value. We hope that doing so
will deepen our mutual understanding with them. DNP shares have been placed on a number of Japaneseand overseas SRI indexes, which target companies that make serious CSR efforts.

So as to gain the trust of shareholders
and investors

Policy on Disclosure of Information
In order to provide timely and appropriate information,
which is transparent, fair, and continuous to our shareholders and investors, DNP discloses information basedon the following policy.

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

Providing Information Overseas
We also provide information in response to requests fromoverseas investors, via teleconferencing by utilizing telecommunication technologies, including televisions andtelephones, and through the Internet.

Information disclosure at generalshareholders meetings
We create display panels and illustrations at generalshareholders meetings as a way of introducing our company and our business to all shareholders, so as todeepen their understanding of DNP.

38

Disclosure Policy(1) Information Disclosure Standards
Our company promptly discloses information in accordance with the Financial Products Exchange
Law and other related laws, as well as the "timely
disclosure rules" established by the Tokyo Stock
Exchange. We also promptly and proactively disclose information even if it does not apply to thetimely disclosure rules, as long as we believe thatthe information is considered necessary and helpful
to shareholders and investors to promote further
understanding of our company.
(2) Methods of Information Disclosure
In accordance with the timely disclosure rules, after
briefing the TSE in advance, we publicly disclose important information that applies to those rules
through TDNet (a system for the timely disclosure of
information provided by the Tokyo Stock Exchange)
and to the press. At the same time we post this information in a timely manner on our website. We also
provide information considered useful in enhancing
the understanding of our company by posting this information on our website and/or the press websites.
(3) Period of Silence
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 information that would incur
major changes in our business results. Furthermore,
we will respond to any questions regarding information that has already been disclosed.

Seeking to Increase Share Value

Display panels explaining the company at our 112th General Shareholders Meeting

CSR Web Report

http://www.dnp.co.jp/csr/2007/39e.pdf
Please visit our Web site for further information.
• Share Information:
Total number of shares issued/Shareholders at term end/
Breakdown by size of holdings/Breakdown by type of shareholder

We seek to offer stable dividends toour shareholders through expeditious
capital management

SRI index-related efforts

Returns to shareholders

DNP is listed on the Dow Jones Sustainability Indexes,

DNP emphasizes management that returns profits to in-

the FTSE4Good Index Series, and the Ethibel Sustain-

vestors. One way we do so is our stable dividend policy,

ability Index overseas, and the Morningstar Sociallywhich is based on our results and earnings/dividend ratio.

Responsible Investment Index in Japan.
DNP is also in the portfolios of several SRI funds.

Our dividend increased to 6 yen per share for the term
ending March 2007, with an annual return of 32 yen per
share, or a consolidated earnings/dividend ratio of 41.0%.
This represents a five-term consecutive increase since
the term ending March 2003.

Share buybacks
Along with increasing dividends, we engage in share buybacks as part of our strategy for raising shareholder value.
By the end of the March 2006 term we had acquired approximately 53 million shares after taking into

http://www.ethbel.org/

consideration liquidity and capital needs.

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

We also acquired 10.65 million shares for 19.4 billion
yen in March 2007, bringing our cumulative buyback
amount to approximately 64 million shares, for a total of
http://www.sustainability-index.com/

103.1 billion yen. Shares retired were 19 million by theend of the March 2006 term, and 10 million (16.5 billion
yen) in the March 2007 term. The cumulative amount of
retired shares over three consecutive terms was 29 million, leaving a total of 730,480,693 shares issued.

http://www.morningstar.co.jp/sri/index.htm

Stock prices change

Nikkei average share price (yen)24,0003,000
DNP share price

2,000

1,000

16,000

Nikkei average
DNP volume

5
’04

6

7

8

9

10 11 12

1
’05

2

3

4

5

6

7

8

9

10 11 12

1
’06

2

3

4

5

6

7

8

9

10 11 12

1
’07

2

3

4

8,000
（Shares 1,000’s）
80,00060,00040,00020,0000

IR Activities

39

Corporate CitizenshipSocial Contributions
Our Code of Conduct states that "We will work to contribute to society
through communication and cultural activities, and by becoming good
corporate citizens deeply involved with the community." We established the
DNP Group Social Contribution Policy in May 2007, so as to lay thefoundation for a wide array of activities, taking in a broad perspective that
goes beyond a return on profits under the motto"Just Like DNP." We are
steadily contributing to society as a good corporate citizen.

The DNP Group Social Contribution Policy

The DNP Group seeks to solve the various issues facing
society while contributing to sustainable growth and therealization of a rich society. Our social contributions arepropelled by our provision of valuable goods and services through our business. We also seek the effective
employment of our management resources (personnel,
knowledge, technology, facilities, etc.) and to contributeto the realization of a better society through solid labormanagement relations as well as strong ties andcooperation with organizations outside our Group.
We also believe that the voluntary participation of
employees in social contribution activities is valuable
not only to society, but also to the personal development and self-realization of the individual employee.
The DNP Group therefore supports the participation of
employees in activities that contribute to society.
We at the DNP Group shall continue to engage in
steady efforts to contribute to society as a good corporate citizen.
Themes• Maintaining a love for nature
Category: Environmental conservation• Maintaining a broad perspective
Category: Contribution to local communities and theinternational community• For next-generation development
Categories: Academia, education, development of thenext generation; development of the information society• For a society rich in culture
Category: Promotion of the arts and culture• From the standpoint of humanity
Category: Humanitarian aid and disaster relief

40

Second Presentation, Tanagras: Female Figures of Ancient Greece
Woman with a Cloak/c. 330-200B/H25.3cm/Musée du Louvre, Paris C Photo DNP/René-Gabriel Ojéda

Corporate Citizenship

CSR Web Report

http://www.dnp.co.jp/csr/2007/41e.pdf
Please visit our Web site for further information.
• Corporate Citizenship through Design and Arts:
Seminars on Philanthropy Programs/Web Sites of Our Philanthropy

Third-Party Comment

Corporate citizenship throughdesign and arts

"A key component in the field of
multimedia outreach"

Opening of the Louvre - DNP Museum Lab
The Louvre - DNP Museum Lab, a joint project of DNP
and the Louvre Art Museum, was inaugurated in October
2006 at the DNP Gotanda Building in Tokyo. The goal of
the Museum Lab is to impart a deep understanding of art
even to those lacking artistic knowledge, by attempting
to inspire a connection between people and art throughmediation, which involves new techniques for art appreciation.
In addition to viewing items on display from the Louvre
collection, visitors can also enjoy art appreciation throughmultimedia presentations combining pictures and information technology, activities such lectures and workshops,
the Internet, and a variety of other forms of mediation.
Mediation

Art museum

Catalogues, posters

Internet

Visitors

Workshop

Artworks

The Louvre - DNP Museum Lab project is of particularimportance in my view. It has already resulted in the coproduction of two highly ambitious presentations which I
had the pleasure of inaugurating with Mr. Kitajima:
Géricault's Carabineer, and "Tanagras: Female Figures ofAncient Greece".
This partnership program with DNP is a key componentof our research and investigation in the field of multimedia
outreach. It allows us to test new modes of communicationand teaching, to try out completely new signage andguidance systems... to reflect today on the museums of
tomorrow. This original program will also help us improve
communication with our visitors, not only in Tokyo but
wherever the Louvre is present worldwide-in Paris ofcourse, but also in all the countries where the Louvre
participates in prestigious exhibitions and partnerships.
Our collaboration with DNP is instructive on many
levels. It allows us to:• test new uses of technologies in the museum environment.
• increase our knowledge of visitor reactions to thesetechnologies.
• develop in-house expertise at the Louvre for the years tocome.
Every presentation that we make together is an opportunity to develop our respective skills: I shall be delighted
to discover the events programmed every fall and spring
until 2009.

LectureHenri LoyrettePresident and Director of the Musée du Louvre

First presentation: Théodore GERICAULT, A Carabineer

C Photo DNPSocial Contributions

41

Special graphic design exhibitioncommemorating the 20th anniversary of "ggg"“EXHIBITIONS : Graphic Messages from ggg & ddd 1986
−2006” was held January~February 2007, in commemoration of the founding of “ggg” (Ginza Graphic Gallery) in1986. This retrospective presented the works and messages of the 166 artists from 25 countries who have beenfeatured at the “ggg” and “ddd” galleries over the past 20
years. The “ggg” gallery, which specializes in graphic design, had by March 2007 presented 249 graphic design
exhibitions by designers from Japan and other countries,
with the number of visitors to the gallery exceeding
810,000.

ggg (Ginza Graphic Gallery)
1F, DNP Ginza Bldg., 7-7-2 Ginza, Chuo-ku, Tokyo• Established: 1986
• Total number of visitors: 815,000 persons

ddd Gallery
1F, Nanba SS Bldg., 1-17-28 Minamihorie,
Nishi-ku, Osaka· Established: 1991
· Total number of visitors: 220,000 persons

CCGA (Center for Contemporary
Graphic Art)
1, Miyata, Shiota, Sukagawa-shi, Fukushima· Established: 1995
· Total number of visitors: 59,000 persons"Exhibition of Today's Japanese Posters" tours 4 European countries
The “Exhibition of Today’s Japanese Posters,” which introduces the Japanese worldof graphic design, was hosted by six national art galleries and museums in four countries- Germany, Switzerland, the Czech Republic, and Poland- from February 2006
through November 2007.
The exhibition featured 128 works from the DGA (DNP Graphic Design Archive)
by leading edge and young Japanese graphic designers. Visitors in all the countries
in which it was shown praised the beauty and high-quality printing technology displayed through these works.
"Exhibition of Modern Japanese Posters"

42

Corporate CitizenshipSocial contribution in Japan“Printing Company” exhibit at Kidzania TokyoDNP is the official sponsor of the “Printing Company” which
opened in October 2006 at the “Let’s Experience Work
Town,” the first such exhibit in Japan, at Kidzania Tokyo.
This gives children a chance to try their skills as a graphic

Promoting child protection program

designer in using PCs to de-

Hokkaido Coca-Cola Bottling

sign and print environmental

The number of criminal acts targeting children has been

and other posters.

increasing. The Hokkaido Coca-Cola Bottling Company
proposed the promotion of a “child protection program,”
which the prefectural government adopted. Posters(10,000) and automobile stickers (11,000) with the logo of
the “Committee for a Safe, Secure Crime-Free Hokkaido”

Printing Workshop(Chairperson: Hokkaido Governor Harumi Takahashi)
were donated and distributed in Hokkaido.
The Hokkaido Coca-Cola Bottling Company Groupparticipated actively in this program. All prefectural offices
and vehicles (1,200 vehicles) display the posters andstickers for the protection of children.

Donation to UNHCR* (UN High Commissioner
for Refugees)
Part of the profits from the refreshment booths set up in-house for
the Joint Labor-Management Cooperation events in April andOctober 2006, as well as the money placed in donation boxes at
welfare facilities, was donated to
the UNHCR via the offices of theJapan Association for UNHCR.

Letter of thanks

Widening of the "DNP Boulevard" in Ichigaya
DNP worked with Shinjuku Ward in widening the road thatPresident Kakuno presents the donation
to Governor Takahashi

runs from our Ichigaya facilities to Sotobori Avenue, withthe goal of improving the local environment.
The road now provides excellent drainage, and is de-Sticker on delivery vansigned to prevent splashing and reduce traffic noise, withsidewalks that are good for strolling. The electrical wires
have been run undergroundand greenery has been planted, making it a road with theenvironment, scenery, andsafety of pedestrians in mind.

DNP Boulevard*UNHCR is dedicated to protecting and aiding
refugees fleeing persecution or war, and tocalling upon the international community tosolve the refugee problem.

Social Contributions

43

Social contributions overseas

Recycling & charity efforts
Tien Wah Press
We began participating in governmental and local organization recycling and charity efforts in Singapore last year.

Cooperation in publication of the Singapore
Encyclopedia

Tien Wah Press is located in the southwest region of Singapore, and in addition to recycling efforts (230kg of old
clothes and 300kg of used paper), we gathered S$11,244

Tien Wah Pressin donations from employees and S$3,756 from the com-

Tien Wah Press of Singapore is a printer of books and apany, which we contributed to the less fortunate among

manufacturer of paper products. When Tien Wah Pressthe local children.

took on the publication of the “Singapore Encyclopedia”
for the Singapore Cultural Affairs Department in commemoration of the 40th anniversary of Singapore’s independence, we offered our cooperation through donations
and free printing with a total value of S$100,000. The
publication ceremony was held at the Singapore Presidential Residence on September 11, 2006.

Employee Closeup"We are contributing to society as we
integrate with the community."
Companies that wish to operate successfully overseas
must develop an understanding of the lives and thinking of
the local people, and CSR activities are vital to doing so.
Being a small country, there exists among the people ofSingapore a feeling that everyone living there is united insupporting the nation, and volunteerism thrives in such anenvironment. It helps that Singaporeans are so fond of
festivals, and our staff are active participants in events,
which contributes to improved morale at of the company. Tien Wah
Press seeks to take every opportunity to improve ties with the local
community.

Makoto Takakura
President, Tien Wah Press
Publication ceremony (Right: President SR Nathan)Community support through the Karawang International Industrial City Community Association (DNP Indonesia)
DNP Indonesia supports local programs as a member of the Karawang
International Industrial City Community Association. The Karawang International Industrial City Community Association provides nutritional
support to children in local communities, distributing biscuits and milk
to 1,805 children in 2006. It also engages in mosquito spraying campaigns to prevent the spread of dengue fever, a mosquito-borne
disease endemic in Southeast Asia.

44

Nutrition support

Spraying to prevent dengue fever

Earning the Trust of Society

Earning the Trust of Society

2006 CSR Awards and Evaluations
DNP has received high marks for its CSR efforts, from the media and business world as well as fromvarious organizations and institutions. Our CSR efforts will continue to improve.

Date

Name of evaluation / Name of award

Sponsor / Examining Organization

June 2006

SID(Society for Information Display) 2006
Display Component of the Year Gold Medal (Crystal Illusion Screen)

Society For Information
Display

June 2006"International Industrial Ranking 500" 2006 edition
35th place worldwide, 28th in CSR

Newsweek Japan

August 2006

2006 "Great Place to Work" ranking, 3rd out of 252

Nikkei Inc.

September 2006

30th Kinoshita Award Packaging Technology Award

Japan Packaging Institute

September 2006

8th Automatic Identification System Award
Individual management system for whole cloth using non-contact IC RFIOs

Japan Automatic Identification
Systems Association

September 2006

Product of the Year 2006
The Supernova ScreenTM(JETBLACKTM)

the Confederation of Danish
Industries

November 2006

2006 Recommended Company Magazine/ Recommended Company Video Magazine
Recommended Company Magazine Visual Award
Recommended Company Video Magazine Communications Award

Nippon Keidanren

December 2006

Japan Environmental Management Ranking: 19th overall/1,741 companies,
overseas 20th

Nikkei Inc.

January 2007

3rd Industrial Ability Ranking: 6th/272 companies

THE NIKKAN KOGYO SHIMBUN, LTD.

January 2007

2006 Nikkei Superior Goods & Services Award
Superiority Award Nikkei Sangyo Shinbun Award
Distribution Record Management System "Tray Catch" using IC tags/PHS

Nikkei Inc.

March 2007

Preferred Quality Supplier Award (PQS Award) winner(see page 34)

Intel Corporation

March 2007

4th Manufacturing Parts Grand Prize
Electronics Award

THE NIKKAN KOGYO SHIMBUN, LTD.

March 2007

6th CSR Survey
Companies listed the first section of the Tokyo Stock Exchange: 2nd/561 companies

Integrex Inc.

2006 CSR Awards and Evaluations

45

For Environmental Conservation and a Sustainable Society

Relationship between the Environment
and Business

SustainableAs a manufacturer we are constantly thinking about how to

Response to
global warming

Environmental
conservation

Effective useof resources

coexist with the global environment. The gifts of nature are
precious, and we seek to coexist with nature so we canpass its gifts on to the next generation. Our efforts to do so
are of primary importance to us now in the 21st Century,
which is referred to as the "Environmental Century."
We continue to do what we can for the environment
day in and day out, as required by our DNP Group CodeDNP Groupof Conduct, which states that "We shall strive to use resources effectively without destroying or polluting the
global environment, so as to pass on a beautiful planet to
the generations that follow."
We shall endeavor to lead the way in ensuring the future prosperity of mankind.

Reduced production of undesired
materials through improved
production efficiency

Reduction of emissions of
PRTR-listed substances

Switch to low-CO2
emissions energy

Response to chemical substance(RoHS、REACH)

Introduction of renewable energy

Rational use of energy

Promoting green purchasing

Production Division

Energy/Water
Materials

IN
Control of chemicals
in materials
Installation and improvementof low-environmental
impact facilities
wastewater treatment facilities,
odor reduction equipment,
solvent collection equipment

Research Division
Development of environmentallyconscious products
Practicing LCA

Re-useUse of recovered solvent

Use of recovered heat

Environmental accounting

DNP Group’s Own Environmental Management System
Eco-report System

46

• Si

For Environmental Conservation and a Sustainable Society

for Society
Elimination of
toxic substances

Consideration of
biodiversity

Provision ofenvironmentallyconscious products

Air

Reduction of air andwater pollutants
Reduction of greenhousegas emissions
Introduction of hybrid vehicles

Reduction of environmental impact

Water

Reduction of atmosphericemissions of VOCs
Environmental conservation
management basedon voluntary standards

Soil

Promoting modal shift

Distribution Division

Distribution efficiency

OUT

Offering value to society
Environmentally conscious products

Marketing Sales
Promotion Division
Promote sales of environmentallyconscious products and improved
environmental awareness

Undesiredmaterials

Recycling

Separation and collectionof office paper
Promoting zero emissions
Use of recycled water

Establishment of voluntary plans

Waste

ite Eco-reports • Eco-report • Internal environmental audit (Eco-Audit) • Environmental education

Relationship between the Environment and Business47

For Environmental Conservation and a Sustainable Society

Realizing a Sustainable Society
We seek the effective reduction of environmental impact by selecting and purchasing materials according to ourGreen Purchasing Policy, and by working to reduce undesired material output through the effective use ofresources in our production processes. DNP is taking part in the production of more and more environmentallyconscious products as the demand for such products increases; we are engaged in designing easily recyclable
products, making more use of biomass materials, etc.

We consider the environment at thematerials purchase stage as well.

We choose and prioritize for purchase materials with thelowest possible environmental impact, so as to offer
goods and services that are both valuable for society andcan be used with confidence. We also seek to control andreduce the chemical substances contained in materials.

Promoting Green Purchasing
DNP employs Green Purchasing in selecting and buying
parts, materials, provisions and equipment, and officesupplies that cause the least possible environmental impact, so as to reduce the environmental impact of
upstream production processes and of our business overall, and to reduce the environmental impact of DNP’sproducts. We also give priority in materials and equipment
purchasing to suppliers that take environmental conservation seriously.

Purchasing rate for environmentallyconscious products
50
41.6

(%)
43.3

40
30.6
30

37.4

26.1
21.6
24.3

20

27.5
23.6

18.6
10
Raw materials
0

48

2002

2003

2004

2005

General supplies
2006

DNP Group Green Purchasing Policy
In its procurement of materials and paper, and its ordering of materials for construction and equipment, the DNPGroup cooperates with related divisions to promote activities based on our policy as stated below, fulfilling theimportant role of green purchasing to shape the market
for environmentally-conscious products, and with theawareness that green purchasing is a very effectivemeans of building a sustainable society.
1. We give due consideration to the following requirements in materials procurement:(1) Absence of materials that are harmful to the environment or to human health;(2) Minimal consumption of natural resources and energy;(3) Use of materials derived from sustainable resources;(4) Use of materials that have a longer life and are moreeasily reusable than their predecessors;(5) The use of many recycled materials and reused parts;(6) Use of disposable materials

2. In our procurement of materials and paper and purchasing of materials for construction and equipment,
we give priority to sellers that take active involvement
in environmental conservation.
3. In addition to prioritizing the purchase of products with
the Eco-Mark when choosing our office supplies andequipment, we make our choices based on guidelines
established by the Green Purchasing Network. We
comply with item (a) above for products without the
Eco-Mark or that are not in compliance with the Network’s guidelines.

For Environmental Conservation and a Sustainable Society

Consideration of environmental andproduct safety

Environmental Label Certification

As part of DNP’s efforts to improve product safety, in response to the RoHS Directive adopted by EU and various
environmental conservation regulations, as well as client

Proper disclosure of environmental
information about products

demand, the DNP Group monitors and manages chemicals contained in the materials we purchase.
We conducted a study of the amounts of chemicals

We have acquired environmental labeling, such as Eco-

contained in materials we purchase from suppliers, and inMark, CoC certification, and EPD, and are working to

2004 we completed a chemical content database. This

expand the number of such products. The Eco-Mark is

has allowed us to monitor the chemicals used in eachgranted to products that are valuable in terms of environ-product, thereby strengthening our controls. In addition, it

mental conservation, and our “S-mail recycled paper type”

has created a mechanism for the manufacture of products(pressure-bonded postcard). The CoC certification system

according to established standards.

guarantees that the pulp used in making the printed materi-

We require a report from the supplier in the form of anals is Forest Certified as having originated in forests that are

examination slip with every new purchase; in addition,

managed according to environmentally sound practices.

when we start trading with a new supplier we explain the

CoC certification has been acquired by a total of 10 divisions

use of the chemical content examination slip when theas the certification system for indicating controlled printed

trading account is opened, and request that one be sub-materials. EPD is an environmental declaration program de-mitted with each delivery.

veloped by Sweden’s Environmental Management
Committee for the disclosure of LCA data reviewed by a third
party. DNP has acquired EPD certification fused thermaltransfer materials and dye-sublimation transfer materials.
CoC and EPD Certification Acquisition Status

Certificate of non-use of chemical substances/
Chemical substance content examination slip

Certification
Type

Acquired By Acquisition

Date*

FSC*1-CoCDNP Tokai

Oct. 2002

SGS*3

FSC-CoC

Commercial Printing Operations

Aug. 2003

SGS

FSC-CoC

DNP Media Create Kansai

Sep. 2003

SGS

FSC-CoC

DNP Trading

Dec. 2003

SGS

FSC-CoC

Yokohama Plant, Packaging Operations

Dec. 2005

SGS

FSC-CoC

DNP Tohoku

Mar. 2006

SGS

FSC-CoC

Ichigaya Publication Printing Operations

Mar. 2006

SGS

FSC-CoC

Multi-print

Apr. 2007

SGS

PEFC*2-CoC

Packaging Operations

Jan. 2004

JIA*4

PEFC-CoCDNP Tokai

Sep. 2005

SGS

EPD*

Dye-sublimation transfer materials (2 types)

Mar. 2003

JIA

EPD

Fused thermal transfer materials (8 types)

Jun. 2005

JIA

5Registration
Organization*Date of initial registration*1 [F S C] Forest Stewardship Council*2 [PEFC] Programme for the Endorsement of Forest Certification Schemes*3 [S G S] SGS ICS Japan*4 [J I A] Japan Gas Appliances Association*5 [E P D] Environmental Product Declarations

Realizing a Sustainable Society

49

processes are used without waste, and that resources are

Use of recycled materials

used effectively by reusing to the greatest extent possible
any undesired materials that are produced.
We use waste per unit of production (waste emissions(E + F) / production volume) and the undesired materials

Reduction of undesired materials in production processes and use of recycled materials

production ratio (volume of undesired materials*/materials

The DNP Group is working to “improve resource produc-in “Manufacturing 21” (See p.34). Waste per unit of pro-tivity” and “promote the reuse of undesired materials” soduction in 2006 was 0.189, which represents a worsening

as to contribute to the building of a recycling society.

since 2005, when it was 0.185. This is mostly due to a de-These efforts require that the materials input in production

crease in the unit price for goods from the Electronics Di-

input volume) as productivity indicators, and incorporate it

Breakdown of undesired materials production volume

h 2%

f 2%

a)

e
20%

A Undesired materials
production volume

a
52%

d 4%
c 9%

482,100t(100%)

e)sludgeb) waste plastic f)

paper waste

metalc) liquid wasteg)

Residued) waste oil

h)

other

b 11%
f 3%
d 2%
c 9%
b 5%

C Valuable
waste

h 1%

f 1%

B Wastea80%

296,400t(61.5%)

e51%

185,700t(38.5%)

a 5%

h 1%

b 9%

Volume outsourced

F

g 3%

h
11%

(2.6%)F

I Final disposal volume(direct)

7,200t (1.5%)

processing
outsourced

11,400t (2.4%)

a 1%
b 13%

h 7%
g
13%

c
11%
e
55%

I

H Interim waste

e
11%
d
12%

a

14%
e
12%
b
d
32%
12% c
16%

12,500t

f 3%

c 8%

e
85%

105,900t (21.9%)

Waste after on-site
interim processing

b
21%

d 6%

D Volume of waste

subject to on-site
interim processing

h 3%
a 10%

h
8%

Waste not subject toon-site interim

E processing
79,800t(16.6%)

E

f 3%

b 13%

K Materials
c53%

recycled asthermal8,700t (1.8%)

h
e
11% a
18%
6%
d
b
13%
37%

G Materials recycled
as resources

65,000t(13.5%)

c 12%
K

J

G

Final disposal volume(indirect)

1,900t
(0.4%)J* Waste generation rate
Waste originating from the main materials of the Electronics Division only is input
into calculation of the waste generation rate.

50

For Environmental Conservation and a Sustainable Society

CSR Web Report

http://www.dnp.co.jp/csr/2007/51e.pdf
Please visit our Web site for further information.
• Use of Recycled Materials:
Transition of waste emissions/Transition of total waste generation/Wastepaper
collection and Wastepaper collection rate/Transition of the amount of recycledwater/Transition of the amount of rainwater used//Water Input-Output

vision. At the same time, the undesired materials produc-Collection of paper for recycling from officestion ratio was 12.6%, which is an improvement overWe make serious efforts to separate and recycle paper

12.9% in 2005.

discarded from offices. Our rate of office paper recycling*1

We use the recycling rate as the indicator for undesired

was 71.2% in fiscal 2006, meaning that we are continuingmaterials reuse promotion, with the goal being zero emis-

to meet our targets. The business of the DNP Group issions. Zero emissions means that the landfill waste rate

deeply connected to paper, and we have been collecting(landfill waste volume I + J/ undesired materials production

data about paper separation and collection for some time.

volume) is 0.5% or less, and while the rate for the Group

Data was gathered at 30 sites in fiscal 2006.

overall is 1.9%, 37 sites have achieved zero emissions,with 6 sites added since last year. We have also achieveda recycling rate of 98.9%, an improvement over last year’s
98.5%. Nevertheless, the problem of low rates for waste
plastic (94.5%) and glass waste (76.1%) remains.

usage ratio was 33.8-fold.
We are also making effective use of rainwater at our
C&I Building and the DNP Logistics No. 2 Building. We

0.312

used 5,200 m3 of rainwater in 2006, which amounts to

0.3

0.202

60
waste per unit of production (tons/¥1 million)

42% of the water used for toilet flushing and watering ourundesired materials production ratio (%)

grounds.

40
0.202
0.185

0.189

0.1

20
17.7

0

cleaning our products, heating and cooling our production
equipment, and air conditioning our buildings. Our water

Waste per unit of production/undesired
materials production ratio

0.2

Use of recycled water
We used 0.56 billion m 3 of recycled water* in 2006 in

2000

14.8

13.8

12.9

12.6
*1 Wastepaper collection rate
Waste paper collection/ {wastepaper collection + general waste amount (excluding cans, bottles, and garbage)} x 100

2003

2004

2005

2006

0

*2 Water usage ratio (amount consumed + wastewater amount + amount of recycled water)/amount of water used

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

Realizing a Sustainable Society

51

Environmentally Conscious Product Development
Guidelines

Offering environmentally-conscious
products

1) Reduction of environmental pollutants
Elimination of ozone layer-damaging substances,heavy metals, volatile organic compounds, andprevention of release into the environment of nitrous
oxides and other substances

Development and Sales of Environmentally
Conscious Products

2) Resource and energy conservation
Reduce the use of metals and fossil fuels

The DNP Group created the Environmentally-Conscious3) Sustainable use of resources

products Development Guidelines to direct from the de-Utilize natural resources in a sustainable way

sign stage the creation of environmentally-conscious

4) Long-term usability

products, so as to reduce the environmental impact of ourMake considerations for the ease of repair and parts
replacement, length of maintenance and repair service,and the expandability of functions

products throughout the lifecycle. We offer solutions suchas reduced environmental impact products in each area

5) Reusabilityof business as our way of contributing to the building of aIn the case of sites and parts, considerations regarding
disassembly, cleaning, and refilling; establishment of acollection and reuse system that is easy for thepurchaser to use

sustainable society.
Our sales of environmentally-conscious products
reached ¥265.8 billion in fiscal 2006 (¥256.6 billion in fiscal

6) Recyclability2005). In particular, the sales of Forest Certified products

practices), Ecolo-Bind (cal-Consideration of materials used in the product as easy
to recycle, design to allow for easy breakdown,disassembly, and separation of materials, collection
and a recycling system that is easy for the purchaser touse.

endars made with no top

7) Use of recycled materials, etc.

(products certified as having originated in forests that aremanaged according to environmentally soundUse as many collected and recycled materials andparts as possible

metal binding, so that they
are easy to breakdown for8) Ease of treatment and disposal

separation after use) andAttempt to place as little burden as possible on
incinerator facilities and landfill sites

PET-G cards (cards made of
non-PVC “PET-G” material,
were significant).

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

In descending order
250

256.6

Other
Lifestyle and Industrial Supplies
Information Communication

150

15.7

140.4
1,404
16.0
101.9

0
PET-G card

52

49.4

35.6

15.3
19.5

50

110.3
1,103

113.1

164.0

100

20.4

21.7

Electronics
200

265.8

74.6

76.9

14.2

22.0

93.3

96.5

57.5
9.6
2002

2003

2004

41.8

25.3
2005

2006

For Environmental Conservation and a Sustainable Society

Introducing our environmentallyfriendly products

Develop all-paper tubular containers
We developed an all-paper tubular container in which nometal is used in the upper or lower lid, and which resembles a spice can through the use of highly-reflective ink.
This container was adopted by the House Foods Corporation for its GABAN brand of potato chips. In the past thelids on such tubular containers were mostly made eitherof metal or plastic. DNP therefore created a all-paper
package that uses compressed paper lids, so as to reduce
the environmental impact as much as possible.
The construction makes separation for recycling when
discarding the package easy, because the potato chips
are packaged inside aluminum foil, which offers superiormoisture-proofing, while the exterior packaging is a paper

Client comment"DNP has created packaging using newmaterials and features."
House-brand GABAN POTATO CHIPS are sold in uniqueall-paper packaging in which the upper and lower caps areeasily separated from the frame and that uses a single
material, paper, that makes separation for recycling easy.
The package is unique as well for its “spice can” image.
This packaging won the “Japan Packaging Design
Association Award” at the 2006 Japan Packaging Contest(sponsored by the Japan Packaging Institute Association)and the “Minister of Economy,
Trade and Industry Grand Prize” at
the 46th Japan Packaging
Competition (sponsored by theJapan Federation Printing Industries
Association).

Yoshinao ItoManager Marketing Headquarters
House Foods Corporation

tube.
The package also incorporates universal design elements making it easy for people to use, in that the lids areeasily detached and replaced because of the detachment
coating process used on the paper tubes.

Aluminum foil packaging

All-paper tubular container(House Foods Corporation GABAN POTATO CHIPS)

Realizing a Sustainable Society

53

Development of packaging materials madefrom biomass-based plastics
We use plant-derived polylactate plastics in as many
products as possible, and have developed a packaging
material that is environmentally-conscious by properly
combining it with petroleum-derived materials to achieve
the functions necessary to packaging.
Polylactate is biomass-based plastics derived fromcorn or sweet potatoes, and it is currently getting a lot of
attention as a material that can help cut emissions of CO2,
which is a greenhouse gas. DNP has succeeded in developing processing and synthesis technologies for biomass
and petroleum plastics, such as overlaying different typesof film derived from each.
This amalgam currently contains 10~30% polylactate,but our goal is bring this up to 50%. We are also working
on using biomass for general applications other than flexible packaging, such as molded products, paper cups, andbottles.

Third-party comment"Working to promote the widespreaduse of biomass-based plastics"
There are around 240 companies in the Japan BioPlastics Association, including both resin manufacturers and producers offinished goods, working to promote the wider use of environmentally-conscious plastic materials. Our “GreenPla ®
Identification and Labelling system” for biodegradable plastic
products now includes a “BiomassPla Identification and Labelling system,” started in July 2006, for products containing 25%
or more biomass plastic. DNP’s ”Biomass-based Plastic
Cards” have received the highest ranking under this system. It
is our hope that DNP will continue to pour efforts into developing useful biomass products, especially in the areas of
packaging and cards, increasing theawareness of consumers about the
BiomassPla Identification and Labelling system and reducing the use of
petrochemical resources.

Setsuo Kounami
General Manager
Japan BioPlastics Association

Biomass-based plastic packaging materials(Zipper bags for Saraya’s “Pow 1.0 kg”)

54

Biomass-based plastic packaging materials(UCC Ueshima Coffee's "Aroma-Rich" brand)

For Environmental Conservation and a Sustainable Society

The First Certificated Card as Biomass-based Plastic

Development of products using LCA

DNP has developed biomass-based plastic cards that

Society now strongly demands the reduction of environ-have been first certified under the “BiomassPla Identifica-

mental impact. DNP has introduced LCA (Life Cycletion and Labelling System” started by the Japan

Assessment), which evaluates the form and degree of en-

BioPlastics Association in 2006.

vironmental impact of a single product over its entire life

These cards, which were already made from non-PVC

cycle, and seeks ways to make improvements. The LCA

plastic rather than dioxin-emitting PVC, have been alteredsystem has been incorporated into product development.

again to include new biomass-based plastic, which goes

The LCA is a method for quantitatively evaluating thefurther to meet the demands of the times. The cards canresource investment and environmental impact, as well as

be used for a variety of purposes, including point cards,

the effect on the planet or the ecosystem, that a certain

cash cards, and membership cards.

product or service exerts over the course of its life cycle.

Certified by the BiomassPla Identification and Labelling“Life cycle” here encompasses everything that takes place

System, these polylactate point cards appeal to the envi-

during the existence of the product or service, from re-ronmental conscious of members or customers, and aresource extraction through manufacture, transport, use,both reasonably thin and tough enough to meet customer

and the return of all waste to the Earth.

needs effectively. First certified biomass-based plastic
card represents the leading edge of the environmentally-

LCA efforts in packaging

conscious materials research we have been engaged in

The Packaging Division offers packaging for items that are

since 1998.

important in the lives of consumers, such as food, drinks,
and daily items. The Packaging Division introduced LCA in
1996 because of its strong concerns about waste emissions, and it has been conducting LCA since 1997. LCI (Life
Cycle Inventory Analysis) is also playing an important rolein the development and design of environmentally-friendly
products.
It is also taking an active role in public projects conducted by packaging-related organizations, focusing on
monitoring representative tendencies in Japan and encouraging/improving LCA in the area of packaging.

Certified Mark

Biomass-based Plastic Card
(Autobacs Seven’s POINT UP CARD)

Cooperation with packaging-related organizations in LCA
Paper carton LCI surveys (Committee For Milk Container Environmental Issues/ Institute for Policy Sciences)
Ongoing participation in “Survey work involved in container packaging LCA ~ LCA basic surveys focusing on drink containers”; ongoingsurveys of voluntary efforts of dairy-related organizations

PET bottle LCI surveys (The Council for PET Bottle Recycling/Industrial Research Center)
Ongoing improvements of LCI data similar to that for paper cartons, and evaluations of recycling based on chemical analysis

Paper cup LCI surveys (Printers Association of Japan Paper Cup Department/ Alpha-Research Company)
Ongoing LCI surveys regarding the production of “275 ml paper cups,” which make up the majority of paper cups used in vending machines in Japan

Realizing a Sustainable Society

55For Environmental Conservation and a Sustainable Society

For the Global Environment and Society
People throughout the world are applying their knowledge andefforts to guarding our irreplaceable Earth, while efforts toprevent global warming are taking placing in all the countries of
the world. We at the DNP Group are making efforts in all areas,
including planning, design, purchasing, production, anddistribution, to reduce greenhouse gas emissions. One of DNP's
most important missions is protecting the health of people andcontributing to a safe and secure society.

Reducing global warming and theclimate change impactof fiscal 2006 our total amount of fuel oil and kerosene
used comprised only 0.6% of our total energy consumption.
We also plan to switch from LPG to LNG (liquid naturalgas), which produces even fewer CO2 emissions.

Switching to low CO2 emissions fuels
Trends in fuel oil and kerosene reduction

There has been serious concern developing in recent years
about global warming, and the need for measures to re-(Unit: kl (converted to crude oil))

60,000duce CO2 and other greenhouse gases is becoming acute.
The DNP Group is pursuing measures to reduce theCO2 emissions from fuels burned at our plants. We have

50,000In descending order:
Kerosene
Fuel oil

48,40040,000been working since 1990 to make the switch from fuel oil
and kerosene to utility gas and LPG (liquefied petroleumgas), which produce fewer CO2 emissions. As a result, asf
67%

FY199011,000TJ

b
2%
c
13%

FY2000b 0.2%
c29%

f
17,900TJ
64%

FY1995b 0.2%

0

1990

1995

d 5%

b 0.2%

60

61.0
55.3

FY2006d) LPGa) fuel oilb) kerosene e) steamc) utility gas f) electricity

52.4

2000

2006

30
20

d 6%
e
2%

53.0

40

c
29%

f
21,600TJ
63%

2006(Units: tons/terajoules )70

50

a 0.4%

2000

CO2 emissions per fuel energy unit

c
22%

f
12,700TJ
67%

d
5%

56

10,400
3,300

a 6%

d
3%
a 2%

18,90020,00010,000Changes in fuel compositiona15%

30,000

10
0

1990

1995

As the fuel switch from petroleum products to gas progresses,
the CO2 emissions per energy unit falls. Fiscal 2006 shows areduction of 14% in comparison to 1990. This is equivalent toa reduction of 65,000 tons of CO2.

*Greenhouse gas emissions volume
These are calculated according to the “Greenhouse gas emissions calculation and reporting manual Ver. 2.1” (Published June 29, 2007; Ministry of the Environment and Ministryof Economy, Trade and Industry). Electricity emissions coefficients for 2005 and 2006 use values published by the Ministry of the Environment on March 23, 2007, while for otheryears those published in environmental reports of the electric companies are used. All emissions volumes are converted to CO2.

For Environmental Conservation and a Sustainable Society

Biotope of Sagami Yoki in Odawara

CSR Web Report

http://www.dnp.co.jp/csr/2007/57e.pdf
Please visit our Web site for further information.
• Reducing Global Warning and the Climate Change Impact:
Transitions of CO2 emissions and fuel use for transportation

Greenhouse gas emissions volume andper-unit CO2 emissions

to reduce greenhouse gas by installing inverters and other energy-saving equipment, improving productivity, effectively

The DNP Group’s overall greenhouse gas emissions* inusing heat from “heat-emitting boilers,” and other means.

fiscal 2006 were 1,123,000 tons. This breaks down as fol-

Per-unit CO2 emissions

lows: direct emissions from plants, 459,000 tons; indirectemissions due to use of electricity and steam (indirect(Unit: tons-CO2/1billion yen)

30.0

emissions from power plants, etc.), 584,000 tons; other*,
80,000 tons. There was an increase in fiscal 2006 due tothe move to new plant facilities.

25.0

25.2
22.0

21.7

21.6

2000

2004

2005

23.0

20.0

Per-unit CO2 emissions amounted to 23 tons-CO 2/
1billion yen, a reduction of 8.7% in comparison to fiscal
1990. While emissions had been steadily decreasing
through fiscal 2005, an increase in raw materials prices
and a decrease in unit orders caused reduced added value, resulting in a worsening in specific consumption.
In addition to continuing with our shift to reduce green-

15.0
10.0
5.0
0

1990

2006

house gas-emitting fuels, we will also actively continue to seek

Introduction of renewable energy

Trends in greenhouse gas emissions(Unit: 1,000tons-CO2)

1,200
1,000
800
600

In descending order:
Indirect
Direct816

equipment at the Kami-

1,123
963

other

973

The outdoor lighting
ya Solutions Center ispowered by solar andwind power generators.

514

400
200
0

1990

2000

2004

2005

2006

Employee Close-up"We are working on reducing CO2
emissions, which is a measurementof energy conservation."

Our company uses boilers as heating sources for our production processes and air conditioning units. In August
2006 we scrapped, merged, restored, or rebuilt all of theboilers at our Tokyo plant, converting them from kerosene
to utility gas so as to reduce CO2 emissions and conserve
energy. This reduced the CO2 emissions from our boilers by around 700 tons in fiscal 2006. We were also able
to use the 2006 gas conversion subsidies offered by the Japan Gas Association in this process. We will continue
to seek effective ways to use energy with the goal of reducing CO2 emissions.

* Other
Emissions from trucks and other vehicles
used in contract shipping of products andwaste were added from fiscal 2006 on.

* Per-unit CO2 emissions
This is direct CO2 emissions volume from plants through energy use divided by production output. Production output indicates business activity, and added value isdistributed to the direct amount according to the ratio of the energy amount for directemissions and the energy amount for indirect emissions.

Manager, Production Engineering Department, The Inctec

Akiharu Tsukamoto

For the Global Environment and Society

57

Efforts in the Transport Divisionnese government's "Team -6% Committee" program for

The revisions to the Rationalization in Energy Use Law

citizen action in preventing global warming since last year.

have meant that since fiscal 2006 the duty to implement

This program encourages energy conservation measuresenergy conservation measures is assigned to the shipper.

such as adjusting the temperature of offices and turning

The two designated shippers in the DNP Group, DNP and

off PCs and lights when not in use. We have called upon

Hokkaido Coca-Cola Bottling, exceed 3,000 ton-kilome-

all Group employees to register individually in the "Teamters per year of shipping volume. The DNP Group is-6% Committee" so as to broaden this effort, and to use it

pursuing measures for monitoring and reducing CO 2

as a tool to enhance consciousness about the environ-emissions for the Group overall, including those that arement together with their families.

not designated as shippers.

Nine of our buildings participated in the 2007 “Black Il-

In fiscal 2006 the Group’s overall shipping volume waslumination” (“Lights Down Campaign”): our two buildings

400 million ton-kilometers. The Group used 33,000 kiloli-

in Ichigaya, Shinjuku-ku (Sotobori-Dori Advertising Towerters of energy (converted to crude oil), with CO2 emissions

and the C&I Building), the DNP Gotanda Building, theof 84,000 tons (4,000 by our own logistics operations,

DNP Kamiya Solutions Center, Otone Plant, DNP Tohoku,

80,000 by contractors).

DNP Offset Kawaguchi, DNP IMS Odawara, and the DNP

We have been employing distribution-related environ-

Erio Tokyo Plant.

mental impact reduction measures such as the
optimization of transport routes, improved efficiency
through digital tachometer installations, an idling-stop
campaign, a modal shift to rail transport, and the introduction of hybrid vehicles.
In addition, DNP Logistics, which handles distribution for
the DNP Group, has followed up on the acquisition of
ISO14001 for its Itabashi
worksite by acquiring
ISO14001 for its Akabane location, thereby shoring up its
environmental managementof distribution.
Hybrid cars in use at CHUBU Operations

Anti-global warming measures at offices
and homes

DNP Gotanda Building(Photographed by Kawasumi Architectural Photograph Office)

The DNP Gotanda Building, which opened in October
2006, was constructed with aluminum curtain external
walls and double-glazed sash windows that cut sunlight,
and use dramatically less energy for air conditioning because of the installation of an ice thermal storage systemthat runs on late-night electrical power. Wasteful energy
consumption is prevented through the use of automatic“off” switches for lights and air conditioning that are connected to human sensors.
The DNP Group has been participating in the JapaTeam -6% binders

58

For Environmental Conservation and a Sustainable Society

CSR Web Report

http://www.dnp.co.jp/csr/2007/59e.pdf
Please visit our Web site for further information.
• Reducing Environmental Pollutants:
Chemical Substances subject to the PRTR Law/Dichloromethane emissions/
Dioxin emissions/CFC substitute emissions//SOx emissions/NOx emissions/
VOC emissions/COD emissions/Nitrogen emissions/Phosphorous emissions

Reducing environmental pollutants

Reducing VOC emissions
The Revised Air Pollution Control Law, which was enacted
in April 2006, strengthened emissions controls on VOCs
(Volatile Organic Chemicals) emitted from printing pro-Reducing air pollutantscesses and other processes. Printing processes use
VOC-containing materials such as ink, solvents, adhe-

The Air Pollution Control Law specifies substances such

sives, and cleaners, and the DNP Group is making efforts

as toxic air pollutants and ozone depleting substances, in-

not only to regulate concentrations but also to reducecluding sulfur oxide (SOx) and nitrous oxide (NOx), asemissions overall. We have been switching to substitute

well as volatile organic compounds (VOC), as air pollut-

products with a lower environmental impact and installingants. These substances have an impact on health and theequipment for VOC treatment and collection. These ef-

global environment, causing problems such as urban

forts have resulted in a 52.7% reduction, to 11,227 tons,

ozone formation and ozone layer depletion. We at thein comparison with 2002, which is used as the yardstick

DNP Group are working hard to monitor and reduce emis-

for performance. This emissions total breaks down tosions of such substances.

1,123 tons of substances regulated by the PRTR Law,

We are making progress in our switch from dichloro-

and 10,104 tons of substances not covered by that law.

methane to water-based cleaners in our printing process,and in fiscal 2006 our total atmospheric emissions fell

Example of VOC collection and recyclingfrom the 2001 level of 53 tons to just 0.3 tons. Dioxin

air (water vapor)emissions, which are created by the burning of waste,
have fallen to 2.2mg-TEQ, which is about 1/100th of the
fiscal 2000 levels, due to strict controls on the 6 furnaces

steam

activated carbon
adsorption tankcurrently in operation.
While we do still use some of the ozone-depletingchemical HCFC-141b (1,1-dichloro-1-fluoroethane) as agas blower
gas filter

cleaner, our fiscal 2006 emissions fell to 10 tons, a 47%
reduction over the previous year.
The switch to low-sulfur utility gas from high-sulfur fuelsolvent
solvent gas
printing press

oil and kerosene for firing our boilers has resulted in a reduction of sulfuric acid emissions of 16% over theprevious year, to 17.2 tons. We have been working to reduce nitrogen oxide emissions by installing low NOx

underground solvent tankburners, but these emissions have increased because of
an increased energy usage in comparison to last year.

Reducing water pollutants
We detoxify and reduce the pollution load of the wastewater from our industrial processes and dining halls by using
purification tanks and wastewater treatment equipment.
In fiscal 2006 we took measures such as adopting lowCOD chemicals, reducing our use of bacterial nutrients,
and changed to non-phosphate cleaners.

* COD
Chemical Oxygen Demand
For the Global Environment and Society

59For Environmental Conservation and a Sustainable Society

Our Environmental Management
Foundation
We practice environmental management based on the DNP Group's uniqueenvironmental management system- the Eco-Report System. We havecompiled the results for fiscal 2006 and the issues and targets from thenext year onward.

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 our business operations have on the environment, and this includes compliance with environmental laws
and regulations as well as recognizing the relationship thateach of our business activities has with the environment.
(1) Each member of the DNP Group establishes and periodicallyreviews its own environmental policies and environmental
targets, and puts into effect continuous improvement of its
activities and the prevention of environmental pollution.
(2) For all construction projects, and before designing and commissioning new facilities, we carry out a full and detailed
environmental survey to assess the impact that the projectwill have on the environment to make proper efforts to protect the environment.

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, wechoose items that are ecologically-friendly and easy to recycle.
(5) In manufacturing a product, we aim to comply with environmental laws and regulations, and moreover we set up more stringent
standards to reduce the emissions of pollutants into the air, watershed, and soil, and to prevent unpleasant odors, noise,
vibration, and land subsidence. We are constantly improving facilities, techniques and manufacturing processes to promote thetargets of energy conservation, resource conservation and the
reduction of industrial waste.
(6) When generating waste from business operations, we strive toachieve zero emissions by separating and recycling waste asmuch as possible.

(3) When carrying out research, development and design for a
new product, we consider the impact of the product on the

DNP Environmental Committee / March 2003

Results of Our Environmental Accounting
Environmental conservation costs (Categories corcesponding to business activities)
Category

Investment(Unit: billion yen)

2005

Expense(Unit: billion yen)

2006

2005

2006

Details of Major Efforts

Refer to(1) Business area cost
0.997 0.794

2.200

3.386 Increase in deodorizing equipment, expansion of wastewater treatment facilities

59

Global environmental conservation cost 0.220 0.139

0.725

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

56-58

Resource circulation costs

0.102 0.148

3.008

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

50-51(Total business area costs)

1.318 1.081

5.933

7.131

(2) Up/downstream cost

0.115

0.004 Recycling system development

52(3) Administration cost

2.078

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

60-63(4) R&D cost

2.696

2.465 Research and development into environmentally conscious products and production methods

52-55(5) Social activities cost

0.021

0.013 Cleanup of areas outside the plant compound, support for activities of environmental conservation groups*

Pollution prevention cost(6) Environmental remediation cost
Total

0

0.238

1.318 1.081 10.842 11.854* Includes ¥400,000 for WWF and ¥200,000 for Japan Greenery Research and Development Center

60

For Environmental Conservation and a Sustainable Society

DNP Electronics America

CSR Web Report

http://www.dnp.co.jp/csr/2007/61e.pdf
Please visit our Web site for further information.
• Sites for Environmental Disclosure• ISO14001 Certification Acquisition• Eco Action 21 Certificates• Environmental Accounting• Environmental Education• Achievements in Environmental Issues

Third-Party Comment

Environmental Management Structure

The DNP Group emphasizes environmental conservation andthe efficient use of resources throughout the entire company.
Our environmental management system consists of the
DNP Group Environmental Committee, which is in chargeof the management of the entire Group, and Operations
Group Environmental Committees for each area of business. Each committee has its own promotional office. The
DNP Group Environmental Committee, which is made upof the directors in charge of the basic organizations at company headquarters, deliberates and decides onenvironmental policy, objectives and plans for the entire
Group, and monitors the progress of the plans and the status of the achievement of those objectives. The decisions
made by the DNP Group Environmental Committee arefurther developed by the Operations Group Environmental
Committees with consideration paid to the characteristicfeatures of each particular sphere of business.
DNP Group Environmental Management Structure
President
DNP Environmental Committee
Promotion OfficeEnvironmental Committee in Each Operation
Promotion Office

11 members
29 members
275 members
246 members

Technical and Manufacturing Group
Environmentally Conscious Products Development Group

Environmental Conservation and VOC Group
Industrial Waste Reduction Group
Energy Conservation GroupRegional Measures Group
Office and Work Environment Group752
members"I hope to continue to see steadyprogress every year."This is the third time I have submitted a comment about
environmental conservation in a DNP CSR Report. As I
noted in both previous commentaries, DNP is an environmental conservation leader in industry circles, with environmental measures that are fully comprehensive and serious, and in both previous cases I gave them high marks.
While I am basically inclined to give them similarly highmarks this time as well, there are a few matters that havecome to my attention. First of all, both the overall amounts
and per-unit emissions of CO2 and other greenhouse gases
are increasing. Granted, this appears to be due to circumstances, including new plant construction and a fall in unit
prices for the products in some company operations. Nevertheless, the latest and best findings of the IPCC make it
clear that the climate change situation has grown evenmore acute, and that “it’s now or never for anti-global warming measures.” In addition, President Kitajima states in his“Top Message” that the DNP Group will strive to control
greenhouse gas emissions with the aim of “preserving the
global environment for the next generation.” I therefore
would like to hope that we’ll see more effort put into reducing emissions in the next fiscal year.
I also have noticed a little slack in what have up to now
been very successful VOC measures. Additionally, while paper and metal recycling rates have exceeded 99%, the rates
for plastic and glass waste are not quite good enough. I also
would like to see more effort made in the area of logistics.
While there a number of things I would like to see improved, such as the items noted above, I see some hopeful
innovations as well. For example, the company has joinedwith Saitama Prefecture in risk communications programswith NPOs and community residents, and efforts are being
made to share those experiences throughout the company.
DNP’s environmental conservation measures continue to develop steadily year after year, and I
would like to see those developments reflected in this report.

Saburo Kato
Chairman, Japan Association of Environment
and Society for the 21st Century
President, Research Institute for Environment
and Society

Each Site of the Operations: 58 sites

Our Environmental Management Foundation

61

DNP’s unique environmental
management system

involved, and the response report must get the approvalof the DNP Group Environmental Committee.
We strengthened our auditing system in fiscal 2006 so
as to improve the reliability of our compliance confirmations and operational audits, and we conducted Eco-

The Eco-Report System and Eco-Audits

Audits at 59 sites. While there were areas needing

The Eco-Report System is DNP’s own environmental

improvement indicated in some cases, such as insuffi-management system created in 1993 with the goal of at-ciencies in the legally-mandated descriptions at waste

taining the DNP Group environmental targets. It forms thestorage sites, insufficient reporting for specific sites, andbasis of our environmental management efforts.

other legal violations, we confirmed that the necessary

In 1996 we also began implementing “Eco-Audits,”

improvement measures are being taken in each case.

which are internal management audits aimed at making

The areas indicated as requiring improvement are ana-

the Eco-Report System more effective. When an audit

lyzed and actions are decided upon, and follow-up Eco-

discovers that corrective measures are necessary, a Cor-

Audits will be carried out in fiscal 2007.

rection Measures Performed Sheet is issued to the site

2006 Eco-Audit Performance

Eco-Report System
Management Concept
DNP Group Code of Conduct

Number of sites audited
Number of attendees at sites
Cumulative auditor numbers
Cumulative auditing hours

59 sites
445 persons
162 persons
733 hours

DNP Group Environmental Policies

DNP Group Environmental Targets
This publication describe s various
standards and guidelines ( such asindustrial waste processing standards,
energy conservation standards ,voluntary inspection standards forenvironmental conservation, standards
for office waste sorting and collection,
and Eco-Audit checklists) for
establishing the Eco-Report System.

(DNP Environmental Committee)

Promotion Office
Operations Environmental Targets(Operations Environmental Committee)

Promotion Office

DNP Group Eco-Report
Annual issue

DNP Group CSR Report
Annual issue

Environmental policies ofeach site
Environmental organization
and responsibility
PLAN

ACT

DO
CHECK

Environmental Guidelines

Internal environmental audit(Eco-Audit)

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

62

Site Eco-Reports
Annual issue

Based on the Site Eco-Report,
we consolidate and summarize thesemi annual environmental activitiesof the entire Group, and in light oftrends in Japan and abroad regarding
environmental issues, as well as thestatus of the achievement of ourgroup objectives, we indicate policy
for our activities over the next halfyear. These reports are issued twice ayear (in May and November).

For Environmental Conservation and a Sustainable Society

CSR Web Report

http://www.dnp.co.jp/csr/2007/63e.pdf
Please visit our Web site for further information.
• DNP's Own Environmental Management System:
Step in Eco-Audit and Contents/Features of Eco-Audits/Features
Regarding the Expertise and Independence of Eco-Audits/
Types of Notifications and Corrections Issued in the Eco-Audit• Environmental Risk Management:
Legal compliance situation

ensure prevention of leakage or loss. All PCB currently inEnvironmental risk management

storage with be disposed of as required by law according
to the disposal plans for each region.

Environmental conservation measures

Legal compliance situation
While we make all efforts to comply with environmental

The DNP Group monitors trends in environmental regula-laws and regulations, over the past three years we havetions so as to ensure full compliance. We also haveexperienced 5 incidents of water quality abnormalities inestablished and strictly adhere to our own voluntary stan-wastewater, 1 case of inadequacy of qualified personnel,

dards (air, water, noise, vibration, odor) and voluntaryand 1 case of odor in excess of standards.

guidelines (chemical substance management, soil contamination measures).

There are no ongoing legal disputes involving environmental issues. We have unfortunately had some complaints
from areas neighboring our plants concerning noise andChemical Substance Management
We have drawn up a Chemical Substance Management
Guide to steer our efforts to prevent accident occurrence

odors. Whenever we receive such complaints, we launch athorough investigation into the cause of the problem andwork to make improvements to prevent a recurrence.

during chemical substance handling. We have also set up
levees and shut-off systems to prevent liquids from overflowing in the delivered plants, and we have installed twotier storage tanks. Furthermore, we stock up on materials
that can be used during emergencies and hold emergency
response drills.

Soil and Groundwater Contamination
The DNP Group implements soil inspection guidelinesthat exceed the legal requirements. When soil contamination is discovered through our inspection, we file a reportwith the office of the governor or mayor in charge of that
prefecture or city, and upon instructions from the local authorities, we implement appropriate measures forremoving the contamination.
We performed operations such as changing from underground to aboveground tanks, water purification ofpump water, and paving of waste holding yards at somesites in fiscal 2006.

Environmental risk communications(Tsuruse Plant)
We sponsored an environmental risk communication program at our Tsuruse Plant on March 5, 2007, taking part in
the Saitama Prefecture “Prefectural Citizens’ Risk Communication Initiative.” This program was aimed at sharing
environmental risk information and deepening mutual understanding with the community. 42 people took part,
including representatives from NPOs and local governments, community residents, and people from DNP. We
provided an explanation of DNP’s environmental efforts aswell as a tour of our plant facilities, and held a lively question and answer session that touched on topics such as
anti-global warming measures, voluntary standards for environmental conservation, emergency drills, andenvironmental education.

PCB storage
PCBs are currently in storage at 28 sites. There are a total of 314 units. The PCBs were contained in electric
equipment that was used in substation facilities in ourplants. The PCBs are stored in special containers in special storage rooms, and are managed under the strictestof conditions in accordance with applicable regulations toEnvironmental risk communications at the Tsuruse Plant

Our Environmental Management Foundation

63

Current status of environmental
impact

The DNP Group manufactures a variety of different prod-

Main materials
2005

2006

Paper

2,265,800 tons

2,269,900 tons

(0.2% increase)Film

140,700 tons

136,300 tons

(3.1% decrease)

Plastic

74,800 tons

80,400 tons

(7.5% increase)Metal

73,700 tons

71,800 tons

(2.6% decrease)ucts closely related to the everyday lives of consumers,

Ink

58,300 tons

54,900 tons

(5.8% decrease)which consist of main materials such as film, plastic, metal

Others120,700 tons

118,500 tons

(1.8% decrease)(iron, aluminum, etc.) and/or ink.

Percentage distribution by individual segment for
main materials (paper)

The Information Communications Segment, whichmainly manufactures magazines and other printed materi-

d
18%

d
19%

al through offset printing, uses a great amount of paper.

b
8%

The Lifestyle and Industrial Supplies Segment, is one

2005

a
73%

b
9%

a
73%

2006

of the biggest users of solvents in the DNP Group as it
manufactures packaging, construction and other industrial
materials and uses solvents for its gravure printing, coating and lamination.
The Electronics Segment uses and discharges a great

Main secondary materials
2005

2006

Solvent

22,300 tons

21,200 tons

(4.9% decrease)

Acid and alkaline

35,400 tons

31,600 tons

(10.7% decrease)amount of water in proportion to the rest of the Group for

Percentage distribution by individual segment for
main secondary materials (solvent)its color filters and lead frames.

a 1%

d 7%

a 1%

d
11%
2005

2006

b
88%

b
92%

Utilities
2005

2006

Electricity 1,255.2 million kWh

1,367.4 million kWh(8.9% increase)

City gas152.0 million m3

151.3 million m3(0.5% decrease)

LPG

24.8 million kg

24.3 million kg(2.0% decrease)

Fuel oil

2,400 kl

2,000 kl (16.7% decrease)

Steam

181 TJ

398 TJ

Kerosene

2,000 kl

1,300 kl

(35% decrease)15.7 milion m3

17.1 million m3(9.2% increase)

Water(120% increase)

Percentage distribution by individual segment for
utilities (water)ad
11% 9% b10%ad12% 10% b
11%

64

2005

2006

c
67%

c
70%

a

Information CommunicationcElectronicsb

Lifestyle and Industrialdbrother companies

For Environmental Conservation and a Sustainable Society

CSR Web Report

http://www.dnp.co.jp/csr/2007/65e.pdf
Please visit our Web site for further information.
• Current Status of Environmental Impact
Trends in Eco-Efficiency

Emissions into the air
2005(15.4% increase)NOx emissions

724 tons

854 tons(18.0% increase)

SOx emissions

20.4 tons

17.2 tons (15.7% decrease)

VOC emissions

10,662 tons

11,227 tons

(5.3% increase)

Percentage distribution by individual segment for
GHG emission amounts

Product Manufacturing Process

d
10%
c
32%

Information Communication

d
10%

a
26%

2005

c
36%

b
32%

Books and periodicals, commercial printing, business forms

a
23%

2006
b
31%

Emissions into bodies of water

Lifestyle and Industrial Supplies
Packaging, decorative materials, industrial supplies

Electronics

OUTPUT

Displays, electronic devices

INPUT

2006

GHG emissions 973,000 tons-CO2 1,123,000 tons-CO2

BC (brother companies)
Ink, beverages, etc.

2005

2006

Water discharged 13.2 million m3

14.0 million m3(5.9% increase)

COD emissions

53.3 tons

54.3 tons(1.9% increase)

Nitrogen emissions

14.6 tons

14.0 tons(4.1% decrease)

Phosphoric emissions

0.4 tons

0.3 tons(25% decrease)

Percentage distribution by each segment for water discharge
a 9%
d
12%

a 8%
d
11%

b 8%

b 8%

2005

2006

c
71%

c
73%

Current Status of Recycling in the DNP Group
2005

2006

Recycledsolvent

5,900 tons

5,100 tons

(usage ratio*1.26)(usage ratio*1.24)

Recycled acidand alkaline

30,500 tons

26,100 tons

(usage ratio 1.86)(usage ratio 1.83)

532.0 million m3

559.7 million m3(usage ratio 35.0)(usage ratio 33.8)

198,400 tons

192,800 tons

Recycled water

Vapor generated fromwaste heat recovery

Undesired Materials Generated
2005

2006

Total amount of502,700 tons
undesired materials

482,100 tons

(4.1% decrease)

Waste emissions

92,300 tons

(1.3% increase)91,100 tons

9,100 tons (13.8% increase)

Landfill waste amount 8,000 tons

Percentage distribution by each segment forundesired substances
d
13%
c
31%

2005

a
37%

d
12%
c
30%

b
20%

b
19%

* Usage Ratio: This is a calculation of (input+ recovery and recycling)/input. It does not include vapor
or solvent in ink. Figures for water are calculated by
the same method at page 51.

2006

a
38%

a

Information CommunicationcElectronicsb

Lifestyle and Industrialdbrother companies* COD, nitrogen and phosphoric emission: This covers water discharge channels which apply to theWater Pollution Control Law.
Our Environmental Management Foundation

65

2006 Targets and Results
Targets through 2006

2006 results

Globalwarmingprevention

Per unit in 1990: 25.2 t-CO2/1 billion yen
To reduce per unit CO2 emissions by 15% from the 1990 level (fiscal 2010).

Per unit in 2006: 23.0 t-CO2/1 billion yen
8.7% decrease from that in 1990
Per unit CO2 emissions in 2000:114 t-CO2/million ton-km

Reduction of environmental
impact incurred
during transport

To reduce per unit CO2 emissions per unit shipped (CO2 emissions/shipped weight/distanceshipped) by 40% from the 2000 level (fiscal 2010).

Per unit CO2 emissions in 2006: 84 t-CO2/million ton-km
26% decrease from that in 2000
Per unit fuel use for transport in 2000: 8.3 kl/1 billion yen

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

Per unit fuel use for transport in 2006: 7.8 kl/1 billion yen
6.0% decrease from that in 2000
Emissions in 2002: 21,312 tons

VOC

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

Emissions in 2006: 11,227 tons
47.3% reduction from that in 2002
Per unit in 2000: 0.312 tons/million yen

To reduce per unit waste emissions (waste emissions/production) by 50% from the 2000 level(fiscal 2010).

Per unit in 2006: 0.189 tons/million yen
39.4% decrease from that in 2000

Reduction of industrial waste

Generation rate of undesired materials in 2000: 17.7%
To reduce undesired material generation by ratio (undesired material generation/total material
input) at all sites by more than 3%, 35% less than the 2000 level (fiscal 2010).

28.8% decrease from that in 2000

To achieve a 98% recycling ratio (recycled amount/total amount of undesired material generation)in disposing main raw materials (fiscal 2010).

To achieve zero emissions for the entire DNP Group (fiscal 2010).
Development
and sales ofenvironmentallyconscious
products
Green purchasing
Environmental conservation
Officeenvironment

Recycling rate in 2005
paper 99.8%, plastic 93.2%, metal 99.1%, glass 59.8%
Recycling rate in 2006
paper 99.9%, plastic 94.5%, metal 99.2%, glass 76.1%
Landfill waste rate in 2005: 1.6%
Landfill waste rate in 2006: 1.9%
Sales of 256.6 billion yen in 2005

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

Sales of 265.8 billion yen in 2006
3.6% increase over that in 2005

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

27.5% green purchasing rate for materials in 2005

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

41.6% green purchasing rate for materials in 2005

To keep the maximum concentration of air emissions subject to emissions regulations at 70% of
the required standard or less.
To keep the maximum concentration of wastewater discharges subject to wastewater regulations
at 70% of the required standard or less.
To keep the maximum concentration of odors at our site perimeters at 70% of the required
standard or less.

98% achievement rate of targets for 2006 (voluntary target)

To keep the maximum level of noise at our site perimeters at 95% of the required standard or less.

64% achievement rate of targets for 2006 (voluntary target)

To keep the maximum level of vibration at our site perimeters at 95% of the required standard or less.

100% achievement rate of targets for 2006 (voluntary target)

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

71.2% rate wastepaper separation in 2006

Environmental
management To perfrom Eco-Audits at all sites.
system66

Generation rate of undesired materials in 2006: 12.6%

37.4% green purchasing rate for materials in 2006

43.3% green purchasing rate for materials in 2006

96% achievement rate of targets for 2006 (voluntary target)
98% achievement rate of targets for 2006 (voluntary target)

Eco-Audits conducted at all sites in 2006

For Environmental Conservation and a Sustainable Society

Target broadly achieved

Achieved target or in steady progress toward target

Conducted activities but target not achieved

Evaluation Described in this report56, 57

No sufficient activities

Targets from fiscal 2007
To reduce per unit CO2 emissions by 15% from the 1990 level (fiscal 2010).

58
To reduce per unit fuel use for transport (amount of fuel used/sales) at 1% per annum, then 4% by fiscal 2010
comparing to fiscal 2006.

58

59

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

50, 5150, 5150, 51

We aim to achieve the following targets by 2010:• To reduce per unit waste emissions (waste emissions/production) by 50% from the 2000 level.
• To reduce undesired material generation by ratio (undesired material generation/total material input) at all sites bymore than 3%, 35% from the 2000 level.
• To achieve a 98% recycling ratio (recycled amount/total amount of undesired material generation) in the disposing
main raw materials.
• To achieve zero emissions for the entire DNP Group.

50, 51

52

48

48
63
63
63
63
63

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

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

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

51

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

62• To promote Eco-Audits at all sites.

Our Environmental Management Foundation

67

Overseas Surveillance was conducted at all overseas

Integrity at our overseas operations

manufacturing sites and offices in 2006.
We promote compliance with all local laws and regulations at our overseas manufacturing sites, as well as
environmental conservation measures such as setting tar-

We implemented the Eco-Report System (see page 62) atgets for energy conservation, waste reduction, andour overseas sites as well in 2005. We will continue torecycling. We also promote the setting and achievement

work to enhance our environmental management. Ourof targets for items such as energy conservation, reduced

Headquarters Promotion Office also visits all overseas

paper use, and recycling at our overseas offices.

manufacturing sites and offices once a year under ourOverseas Surveillance program, checking on the environmental management situation and giving guidance.

Overseas Manufacturing Sites
1. DNP Photomask Europe
3. DNP IMS America
5. Tien Wah Press (Singapore)
7. DNP Indonesia (Progadon)

2. DNP Denmark
4. DNP Electronics America
6. Tien Wah Press (Johor Bahru)
8. DNP Indonesia (Karawan)

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

Current situation of environmental impact(1 -6 tabulated between April 2006 and March 2007;
7-8 was tabulated between January 2006 and December 2006)

CO2 emissions

Final amount of waste disposals

VOC emissions

1. DNP Photomask Europe
Agrate, Italy; manufacturing photomasks

4,250 ton-CO2

49 tons

less than 1 ton

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

1,079 ton-CO2

50 tons

less than 1 ton

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

1,731 ton-CO2

605 tons

less than 1 ton

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

1,795 ton-CO2

4 tonsless than 1 ton

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

16,121 ton-CO2

402 tons

148 tons

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

4,124 ton-CO2

151 tons

146 tons

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

20,202 ton-CO2

2,332 tons

2,446 tons

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

17,096 ton-CO2

605 tons

3,439 tons

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

On-site inspection
DNP Photomask Europe

68

Environmental meeting
DNP America, LLC Silicon Valley OfficeOn-site inspection
DNP Electronics America

On-site inspection
DNP Indonesia(Progadon)Independent Review Report Comments by an Independent Institution(Shin Nihon Environmental and Quality Management Research Institute Co., Ltd.)

Site audit/Shiraoka Plant, DNP Offset

Site audit/Okayama Plant, DNP Opto-Materials

Independent Review Report

69

DNP Group CSR Report 2007
DNP Group CSR Report 2007 (April 2006 - March 2007)

Printed with environmentallyfriendly soy ink.

Approach to Color Universal Design:This report was designed using a color
scheme that the majority of readers will findeasy to understand. It has been certified by
the Color Universal Design Organization, anon-profit organization.

The Japanese-version of DNP Group CSR Report 2007 is printed in environmentally conscious manners on FSC certified papers.

Corporate Social Responsibility Office
1-1, Ichigaya Kagacho 1-chome, Shinjuku-ku, Tokyo 162-8001, Japan
http://www.dnp.co.jp
Next issue scheduled for release in August 2008.

Tel: +81-3-3266-2111 Fax: +81-3-5225-8083
Published: August 2007
© 2007. DNP

April 2006 - March 2007