Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 [J-GAAP]May 13, 2024

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.global.dnp/
Representative:
Yoshinari Kitajima, President
Contact person:
Naoki Wakabayashi, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
General meeting of shareholders:June 27, 2024
Dividend payment date:June 28, 2024
Securities report issuing date:June 27, 2024
Preparation of earnings presentation material: Yes
Holding of earnings announcement:
Yes (for institutional investors and analysts)*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2024
(April 1, 2023 – March 31, 2024)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2024

1,424,822

3.8

75,45023.2

98,70218.0

110,92929.5

Year ended March 31, 2023

1,373,209

2.2

61,233(8.3)

83,661

3.0

85,692(11.8)

Note: Comprehensive income: Year ended March 31, 2024: ¥184,516 million (328.8%)
Year ended March 31, 2023: ¥43,032 million (-58.5%)
DilutedNet Income
per Share

Net Income
per Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2024

443.12443.06

9.8

5.2

5.3

Year ended March 31, 2023

321.32321.27

7.9

4.5

4.5

Reference: Equity in earnings of affiliates: Year ended March 31, 2024: ¥17,529 million
Year ended March 31, 2023: ¥13,603 million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2024

1,955,629

1,236,687

59.6

4,866.18

As of March 31, 2023

1,830,384

1,148,245

59.4

4,158.46

Reference: Stockholders’ equity: As of March 31, 2024: ¥1,165,927 million

As of March 31, 2023: ¥1,087,504 million

(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents
at End of the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2024

72,55318,355(118,696)

234,569

Year ended March 31, 2023

37,993(25,021)(52,435)

258,329

2. Dividends
Dividends per Share
First
SecondThird
Quarter-end Quarter-end Quarter-end

Year-end

AnnualTotal Dividends(Annual)Dividend
Payout Ratio(Consolidated)

Dividends to
Net Assets
Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Year ended March 31, 2023

–

32.00

–

32.00

64.00

16,90319.9

1.6

Year ended March 31, 2024

–

32.00

–

32.00

64.00

15,72914.4

1.4

Year ending March 31,
2025 (Forecast)

–

32.00

–

32.00

64.00

17.0

3. Consolidated earnings forecasts for the year ending March 31, 2025
(April 1, 2024 – March 31, 2025)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income
Ordinary Income
Parent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,455,000

2.1

80,0006.0

100,000

1.3

90,000(18.9)

375.63At the Board of Directors meeting held on March 8, 2024, the Company resolved to acquire treasury stock.
The calculation of “net income per share” in the consolidated earnings forecast does not take into consideration theimpact of the acquisition of treasury stock after April 1, 2024 based on this resolution.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards:
2) Changes in accounting policies other than the 1) above:3) Changes in accounting estimates:
4) Restatement of revisions:

No
No
No
No

(3) Number of common shares issued and outstanding
1) Number of common shares outstandingat end of each period (including
treasury shares)
2) Number of treasury shares at end ofeach period
3) Average number of shares outstanding
during the period

As of March 31,
2024

277,240,346 As of March 31,
shares2023

292,240,346
shares

As of March 31,2024
Year ended
March 31, 2024

37,642,211 As of March 31,
shares2023
250,336,161
Year ended
shares March 31, 2023

30,724,570
shares266,691,731
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2024
(April 1, 2023 – March 31, 2024)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating
Ordinary Income
Net Income
Income (Loss)

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2024

959,076

3.3

1,567

–

59,7995.3

102,312

25.3

Year ended March 31, 2023

928,084

(0.7)

(810)

–

56,813(8.4)

81,653(6.2)

Net Income
per Share

Diluted Net Income
per Share
Yen

Yen

Year ended March 31, 2024

408.68–Year ended March 31, 2023

306.16–(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2024

1,339,549

679,98750.8

2,837.90

As of March 31, 2023

1,339,813

661,65349.4

2,529.96

Reference: Stockholders’ equity: As of March 31, 2024: ¥679,987 million As of March 31, 2023: ¥661,653 million* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about economic
conditions, market trends, and other factors at the time the report was published. Actual results may differ significantly
due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Overview of operating results, etc., (4) Forecasts,”
on pages 5-8.
DNP will hold a briefing (conference call) for institutional investors and analysts on May 15, 2024. Materials used at
the briefing will be uploaded to the DNP website at around 10:00 JST the same day.

Contents
1. Overview of operating results, etc. ........................................................................................2(1) Overview of operating results for the year ended March 31, 2024 ....................................2(2) Overview of financial position for the year ended March 31, 2024 ....................................4(3) Overview of cash flows for the year ended March 31, 2024 .............................................5(4) Forecasts .........................................................................................................................5(5) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2024 and year ending March 31, 2025 .......................................................................8
2. Information on the DNP Group ............................................................................................10
3. Management policies ..........................................................................................................14(1) Core policies ..................................................................................................................14(2) Medium-term Management Plan ....................................................................................14
4. Basic approach to selecting accounting standards ..............................................................18
5. Consolidated financial statements and key notes ................................................................19(1) Consolidated balance sheets .........................................................................................19(2) Consolidated statements of income and comprehensive income ...................................21(3) Consolidated statements of changes in net assets .........................................................23(4) Consolidated statements of cash flows ..........................................................................25(5) Notes regarding consolidated financial statements.........................................................27[Notes on premise of a going concern]...........................................................................27[Basis of presenting consolidated financial statements] .................................................27[Consolidated balance sheets] .......................................................................................30[Consolidated statements of income] .............................................................................30[Consolidated statements of changes in net assets] ......................................................32[Segment information, etc.] ............................................................................................34[Per share information]...................................................................................................38[Significant subsequent events] .....................................................................................38
6. Non-consolidated financial statements and key notes .........................................................39(1) Non-consolidated balance sheets ..................................................................................39(2) Non-consolidated statements of income .........................................................................41(3) Non-consolidated statements of changes in net assets ..................................................42(4) Notes regarding non-consolidated financial statements..................................................43[Notes on premise of a going concern]...........................................................................43-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the year ended March 31, 2024
Business conditions surrounding the DNP Group during the fiscal year ended March 2024 weremarked by a gradual recovery in the economy due to factors such as improvements in domestic
employment and average incomes, and a recovery in inbound tourism demand. On the other hand,the outlook remains uncertain due to factors such as prolonged geopolitical risks, the impact ofmonetary policies around the world, rising domestic prices and labor shortages. There are also
continuing concerns about the effects of climate change, with UN Secretary-General António
Guterres describing global warming as having reached the era of “global boiling,” as well as theeffects of natural disasters like Japan’s Noto Peninsula earthquake.
Even amid such rapid environmental, social and economic changes, the DNP Group doesn’t
merely respond to changes and risks, but initiates its own reforms from a long-term perspective anddevelops business activities aimed at creating “a better future.” By combining DNP’s unique ‘P&I’(printing and information) strengths and by deepening cooperation with diverse partners, we areworking to expand the scope of our business.
DNP is currently implementing a Medium-term Management Plan that covers the three-year
period from fiscal 2023 to fiscal 2025. Through specific measures based on business strategies,
financial strategies, and non-financial strategies, we are focusing on sustainable creation of
corporate value and shareholder value. In relation to business strategies, we are building a businessportfolio that can exhibit strength in the medium to long term, while accelerating the creation of newvalue, particularly in our focus business areas. Concerning financial strategies, we appropriately
allocate the cash that we generate by investing in further business growth and providing returns toshareholders. By focusing on expanding investment in people, strengthening intellectual capital, andenvironmental initiatives as our main non-financial strategies, we work to strengthen the
management foundation that supports sustainable growth. More details about these three strategies
can be found in Section 3. Management policies, (2) Medium-term Management Plan, 2) Threetypes of strategies.
In addition, the entire DNP Group continuously implements a variety of comprehensive business
continuity management (BCM) measures in order to be ready for natural disasters and otherunpredictable events.
As a result, the DNP Group’s net sales for the fiscal year ended March 2024 were ¥1,424.8 billion(up 3.8% from the previous year), operating income was ¥75.4 billion (up 23.2%), and ordinary
income was ¥98.7 billion (up 18.0%). Net income attributable to parent company shareholders
amounted to ¥ 110.9 billion (up 29.5%), partly due to an extraordinary gain on the sale of investment
securities.
As of the fiscal year ended March 2024, the name of the Information Communication businesssegment was changed to Smart Communication, while the name of the Lifestyle & Industrial
Supplies segment was changed to Life & Healthcare. The Beverages segment was transferred toLife & Healthcare. Comparisons with the previous fiscal year and related analyses are based on the
new classifications.
 Smart Communication
In the Imaging Communication business, sales of photo-printing materials were strong, particularlyin the European and Asian markets.
The information security sector benefited from large-scale business process outsourcing (BPO)
projects, while the smart card business enjoyed especially strong sales of dual-interface cards that-2-

support contact and contactless standards using a single IC chip.
In our marketing business, we worked hard to provide value by combining DNP’s strengths indigital technologies with our expertise and track record in creating marketing initiatives forcompanies and other clients, but net sales still fell below the previous year’s level due to thecontraction of paper media such as catalogs and brochures.
In Publishing, we saw solid performances by our book distribution and sales business, which
consists of a hybrid mix of physical bookstores and online sales, and our library management
services, where more libraries made DNP their designated administrators. Overall, however, net
sales in Publishing were in line with the previous year’s due to the shrinking market for magazinesand similar printed publications.
Regarding content and XR (extended reality) communication, we worked to strengthen our XR
communication business, which enhances the value of people’s experiences by fusing real andvirtual spaces. As part of these efforts, we are focusing on the creation of new businesses, forexample by increasing collaboration with Hacosco Inc., which has strengths in XR businesses and“braintech” that fuses neuroscience with IT.
In education, DNP, together with Lenovo Japan LLC, was selected by the Tokyo Metropolitan
Government to support the construction and operation of Tokyo’s “virtual learning platform” (VLP)
project. Going forward, DNP will continue to support the activities of local governments andeducational institutions throughout Japan as the nation works to provide diverse educational
opportunities under its “No one left behind” policy.
As a result of the above, overall segment sales decreased by 0.1% year on year, to ¥719.4 billion.
Operating income declined by 2.1% from the previous term to ¥26.1 billion, due to the impact oflower revenue, mainly from paper media, despite increased information security-related sales andprogress in structural reforms including the reallocation of human capital.
 Life & Healthcare
In the mobility and industrial high-performance materials sector, sales of battery pouches forlithium-ion batteries for automotive applications were affected by stagnant demand for electricvehicles (EVs) in the second half of the year, but demand recovered in the IT sector, thanks toincreased adoption of DNP products in new smartphone models. Overall, battery pouch sales
remained firm. Concerning photovoltaic cell-related business, sales of encapsulants were especiallystrong amid rising demand worldwide for solar cells. Sales of decorative films for automotive
applications remained solid. In addition to films for interior use, films for exterior use found favor for
their high degree of aesthetic appeal as well as their ability to shorten painting processes and reduce
environmental impact.
Although DNP’s Packaging business was affected by consumers’ reluctance to buy things amid
price hikes mainly due to higher raw materials costs, overall sales were little changed from theprevious year thanks to increased sales of formed plastic products. In addition to focusing on thedevelopment and sale of functional packaging materials, such as environmentally friendly DNPGREEN PACKAGING®, the Group took steps to strengthen this sector structurally, for example byreorganizing its manufacturing bases.
The Living Spaces business enjoyed solid sales, both in Japan and overseas, of ARTTEC®, anexterior material that combines high durability with good design. However, sales of interior-use
residential materials sagged due to a decrease in new housing starts in Japan, resulting in an overall
drop in sales relative to a year earlier.
In Beverages, sales volumes increased as people resumed going out in the aftermath of theCorona pandemic. Sales were also helped by prolonged hot summer weather and price revisions,
resulting in a year-on-year increase.
-3-

In the Medical and Healthcare field, CMIC CMO Co., Ltd. became a consolidated subsidiary of the
DNP Group during the fiscal year through March 2024. Since June 2023, the Company has beencollaborating with the CMIC Group on activities including the integrated manufacture ofpharmaceuticals from active pharmaceutical ingredients as well as the development of value-added
pharmaceuticals.
As a result, overall segment sales amounted to ¥472.3 billion, up 4.6% from a year earlier. Thanks
to a slowing of price increases for raw materials and energy, and better success at passing priceincreases on to customers, operating income grew by 67.2% from a year earlier to ¥13.3 billion.
 Electronics
DNP’s digital interfaces business enjoyed solid demand for metal masks used in the production oforganic light-emitting diode (OLED) displays, as these displays are increasingly used forsmartphones. Optical films also saw an uptick in demand due both to the winding down of inventory
adjustments in the previous year that resulted from overall supply chain problems, and due to ordersof larger-sized products, mainly due to growth in the size of TV displays. Overall net sales in this
sector increased.
In semiconductors, sales of photomasks used for making chips remained stable relative to a year
earlier thanks to demand related to client companies’ product development, but due to a slowdown
in the semiconductor market as a whole, there was a decline in sales of lead frames and othersemiconductor package components, resulting in lower overall sales compared to the previous year.
As a result of the above, overall segment sales grew 15.6% year on year to ¥235.3 billion. Despitea decline in semiconductor-related sales and the impact of higher raw material prices and othercosts, operating income grew 23.9% from a year earlier to ¥58.1 billion, thanks to strong sales ofdigital interfaces products.
(2) Overview of financial position for the year ended March 31, 2024
Total assets (assets, liabilities and net assets) at the end of the fiscal year increased by 125.2 billion
yen from the end of the previous fiscal year to ¥1,955.6 billion due to increases in investment
securities and net defined benefit asset.
Total liabilities increased by ¥36.8 billion from the end of the previous fiscal year to ¥718.9 billion
due mainly to an increase in deferred tax liabilities.
Net assets increased by ¥88.4 billion from the end of the previous fiscal year to ¥1,236.6 billion,
due to such factors as increases in net income, the valuation difference on available-for-salesecurities, and the remeasurement of defined benefit plans, and decreases in the purchase oftreasury stock and the payment of dividends from surplus.

-4-(3) Overview of cash flows for the year ended March 31, 2024
Cash and cash equivalents at the end of the current fiscal year decreased by ¥23.7 billion from theend of the previous fiscal year to ¥234.5 billion.
Cash flow provided by operating activities totaled ¥72.5 billion (¥37.9 billion in the previous fiscal
year), due mainly to ¥143.0 billion in income before income taxes and non-controlling interests and¥55.9 billion in depreciation.
Cash flow provided by investing activities totaled ¥18.3 billion (versus used in ¥25.0 billion in theprevious fiscal year), due mainly to ¥59.4 billion in payments for purchases of property, plant andequipment and ¥81.6 billion in the sale of investment securities.
Cash flow used in financing activities totaled ¥118.6 billion (¥52.4 billion in the previous fiscal year),due mainly to ¥88.5 billion in payments for purchase of treasury stock and ¥16.4 billion in dividends
paid.
The trends in the DNP Group’s cash flow indicators are shown below.
Year ended
March 2020

Year ended
March 2021

Year ended
March 2022

Year ended
March 2023

Year ended
March 2024

Equity ratio (%)

53.2

57.2

58.2

59.4

59.6

Market value-based
equity ratio (%)

37.5

35.7

41.3

52.9

57.2

Debt-to-cash flow ratio(year)

2.3

2.6

1.9

3.9

2.3

Interest coverage ratio(times)

59.8

42.6

111.7

54.4

81.6

Notes:***

Equity ratio: Total stockholders’ equity/Total assets
Market value-based equity ratio: Market capitalization/Total assets
Debt-to-cash flow ratio: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest paid
The above indicators are calculated based on consolidated financial figures.
Market capitalization is calculated as: Fiscal year-end share price  fiscal year-end number of shares
outstanding (excluding treasury stock)
Cash flow: Cash flow provided by/used in operating activities on the consolidated statements of cash flows
Interest-bearing debt: All liabilities on the consolidated balance sheet that accrue interest charges
Interest paid: Interest paid on the consolidated statements of cash flows(4) Forecasts
Gradual economic recovery is expected in the near term, thanks in part to the effects of various
policies, including some that will improve employment and income conditions in Japan. At the sametime, there are also concerns about the possibility of a global economic downturn in light ofworldwide monetary tightening and concerns about the future of the Chinese economy.
Given these circumstances, the DNP Group will accelerate implementation of its Medium-termManagement Plan in order to create its own “better future” based on a long-term perspective and inline with the Group’s Basic Management Policy.
Our consolidated earnings forecast, earnings forecasts by segment, and initiatives for eachsegment for the fiscal year ending March 31, 2025 is as follows.

-5-<Consolidated earnings forecasts>(Million yen)

Fiscal year ending March 31, 2025
Year-on-year change
1,455,000
2.1%
80,0006.0%
100,000
1.3%

Net Sales
Operating Income
Ordinary Income
Net Income Attributable toParent Company Shareholders

90,000(18.9)%<Earnings forecasts by segment>(Million yen)

Fiscal year ending March 31, 2025
Net Sales
Operating Income
Year-on-yearchangeSmart Communication
Life & Healthcare
Electronics
Total
Adjustment
Total

720,000
500,000
240,000
1,460,000(5,000)1,455,000

0.1%
5.9%
2.0%
2.3%
–
2.1%

Year-on-yearchange30,00018,00054,000102,000(22,000)
80,00014.7%
34.9%(7.1)%
4.4%–
6.0%< Initiatives for each segment >Smart Communication
In the field of imaging communication, DNP holds the world’s top share in the market fordye-sublimation thermal transfer materials, which use precision coating and other precisionapplication technologies. Strengthened by related products used for photo printing and by the ability
to provide all types of related services, DNP is developing its photo imaging business in an era whenpeople’s ways of enjoying photography change along with the times. In recent years, largely as aresult of increased use of smartphones and social networking services, there is greater demand
from consumers for experiential value from photographs as opposed to just material value. In
response, DNP provides a wide range of services, including photography, processing, print sales
and cloud-based image sales, all while protecting personal information with the use of high-security
infrastructure and systems.
Concerning information security, we will strive to expand our BPO business against a backdrop of
demand from companies and organizations that want to streamline operations, reduce labor costs,
and boost cost competitiveness. In addition, we will leverage the unique strengths that DNP has
cultivated as Japan’s top provider of smart cards in order to safely and reliably provide theauthentication services and diverse payment methods that are essential to a global informationsociety.
DNP brings to the content and XR communication arenas its network of diverse intellectual
property (IP) holders and creators in Japan and overseas, its archiving business, high-definition
image processing technologies, and its track record and reputation in copyright handling. In addition
to distributing large volumes of data, both real and digital, while securely authenticating individuals
and key information, we bring to bear other strengths such as the integration and optimization ofbusiness processes. With these strengths as our starting point, we intend to contribute to the further
evolution of an information society by securely and seamlessly linking the real and the digital.
In the fields of publishing and education, the DNP Group will further promote its “honto” hybrid
bookstore network, electronic library service, and educational ICT (information and communications-6-technology) businesses. Also, in the face of continuing decline in demand for printed paper media,
our publishing business will keep working on structural reforms including reviewing production
systems and reallocating resources.
Life & Healthcare
The DNP Group already holds the top share of the world market for battery pouches for lithium-ion
batteries, and aims to increase its capacity for producing pouches for automotive batteries in
anticipation of greater uptake of electric vehicles. We will also focus on expanding other businesses
related to the mobility and high-performance industrial materials, and work toward rapid
commercialization of products and services that support safe and comfortable next-generation
mobility.
The medical and healthcare businesses are new for DNP. Through collaboration with Group
companies and external partners, we intend to accelerate growth in pharmaceutical support
businesses including the production of active pharmaceutical ingredients, drug formulation,
formulation changes, and medicine package manufacturing, as well as smart healthcare businesses
such as diagnostic imaging and online diagnostics.
In addition, we intend to focus on developing and providing a wide range of high-value-added
products, including living space-related products with enhanced functionalities like bacteria or virus
resistance, superior design, or weather resistance, all types of packaging products that enhancepeople’s lifestyles by protecting package contents by more effectively shutting out oxygen and water
vapor while also being easier on the environment, and materials like encapsulants that help improvethe durability of solar cells.
At the same time, we will strive to build a robust business portfolio by accelerating our shift frombusinesses with low market growth potential, low appeal, and low profitability to highly profitablebusinesses with high growth potential and high appeal, and we will reorganize business bases andoptimize resources to increase the DNP Group’s profitability.
Electronics
DNP will accelerate the expansion of each of its businesses by means of aggressive capital
investment. We will also expand our businesses by developing cutting-edge products that leverage
DNP’s unique strengths, and by developing services in collaboration with corporate partners inJapan and abroad.
Regarding digital interfaces, the DNP Group already controls the world’s top share of metal masks
used in the manufacture of organic light-emitting diode (OLED) displays. In anticipation of increasing
adoption of OLED displays by manufacturers of smartphones, tablets and laptop computers, etc.,
DNP plans to build a new, large-scale metal mask production line at its Kurosaki Plant in Fukuoka
Prefecture. Scheduled to start operations in the first half of the fiscal year ending March 2025, the
new line will more than double existing production capacity, allowing DNP to capture future demand
growth and achieve stable growth. In optical films as well, the DNP Group has become the world’s
top supplier of products such as anti-reflection surface films. The Group plans to add an ultra-wide
production line at its Mihara Plant in Hiroshima Prefecture in order to increase sales volume andexpand market share even further by expanding our capacity in response to the market trend toward
larger television displays. The start of operation is scheduled for the first half of the fiscal year ending
March 2026.
Regarding photomasks used in semiconductor manufacturing, medium- to long-term demand forsemiconductors in cloud environments and data centers is expected to expand with the spread ofgenerative AI (artificial intelligence), etc. We plan to expand production capacity by investing in
additional multi-beam mask writers and in machinery that will boost production capacity for-7-

middle-end products, with new equipment scheduled to come online from fiscal 2023 to fiscal 2025.
By the fiscal year ending March 2026, we aim to increase sales by 15% compared to the year
through March 2023. In addition, regarding the production of photomasks compatible with extreme
ultra-violet (EUV) lithography, a state-of-the-art manufacturing process for logic semiconductors andother cutting-edge products, DNP will supply production processes and assurance-related
technologies as a subcontractor to Rapidus Corporation, which is participating in the Research andDevelopment Project of the Enhanced Infrastructures for Post 5G Information and Communication
Systems that was initiated by the New Energy and Industrial Technology Development Organization(NEDO). DNP plans to complete the development of photomask manufacturing processes for
2-nanometer line width generation by the fiscal year ending March 2026 and establish production
technologies with a view to starting mass production in the fiscal term through March 2028.
In December 2023, the DNP Group announced its investment in a special purpose company forthe purpose of acquiring shares in SHINKO ELECTRIC INDUSTRIES CO., LTD. The DNP Group isdeveloping key components for next-generation semiconductor packages, including organicinterposers and TGV glass core substrates. The DNP Group is also strengthening alliances withexternal partners and expanding the value it provides to the semiconductor supply chain, forexample by developing businesses that respond to next-generation technologies such as
optoelectronic integration. In recent years, major semiconductor manufacturers have announced theadoption of glass core substrates, and next-generation semiconductor technologies such as chiplets
are attracting attention. DNP intends to speed up its provision of new value to meet these kinds ofmarket needs.
In these three business segments, the DNP Group will work harder than ever to realize a better
future by combining its unique strengths in P&I (printing and information) and by strengthening
cooperation with our partners. DNP’s hybrid strengths encompass both poles of various
spectrums–for example real and virtual, analog and digital, manufacturing and services. By
combining these strengths, DNP can express the “All DNP” synergy that is our unique differentiating
factor. We endeavor to take maximum advantage of these strengths as we take inspiration fromtechnological innovations like XR, metaverses, AI and autonomous driving, and we see business
opportunities in the solution of social issues in areas like information security, aging populations,environment and energy and in our responses to megatrends as we develop new value to provide toconsumers in Japan and around the world.
(5) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2024 and year ending March 31, 2025
In addition to achieving long-term growth by realizing a better and more sustainable society andenriching people’s lives, the DNP Group positions as one of its key management policies its
commitment to meet the expectations of shareholders and other stakeholders by providing stable
returns of profits.
Our basic policy is to distribute profits to shareholders in a stable and continuous manner. Basedon a medium- to long-term management perspective, we seek to maintain the stability of our
financial base, balance investments in growth businesses with the return of profits to investors, andimplement payments based on comprehensive consideration of such factors as businessperformance and dividend payout ratio.
The DNP Group also intends to secure an appropriate level of retained earnings and strengthen
its business base in preparation for future business development. It invests retained earnings in thedevelopment of new products, new services, and new technologies, in capital investment for new
business development, strategic alliances and M&As, and human resources that support these-8-various endeavors. At the same time, the Group keeps an eye on its capital requirements andmarket trends, and acquires treasury stock in an appropriate and timely manner with the aim of
returning profits to shareholders and optimizing capitalization.
We believe that these policies will contribute to increasing profits, which can then be returned toshareholders in the future.
Based on this policy, the DNP Group will pay a year-end dividend of ¥32 per share. Together with
the interim dividend of ¥32 per share, it plans to pay a full-year dividend of ¥64 per share. As a result,the consolidated dividend payout ratio for the fiscal year through March 2024 will be 14.4%.
For the fiscal year ending March 31, 2025, the DNP Group forecasts payment of an interim
dividend of ¥32 and a year-end dividend of ¥32, resulting in an annual dividend of ¥64.

-9-

2. Information on the DNP GroupThe DNP Group includes the Company, 143 subsidiaries, and 26 affiliated companies. The Group’sbusiness activities are related to Smart Communication, Life & Healthcare and Electronics.
The businesses and segments of the DNP Group are broadly outlined below. The three businesssegments cited below are the same as the reporting segment categories.
<<Smart Communication>>
Books including standard books, dictionaries, commemorative and memorial editions, all types ofmagazines including weekly, monthly and quarterly, corporate PR magazines, textbooks, e-books,
Digital marketing support from sales promotions to customer analysis,
BPR consulting and BPO services related to corporate business processes and sales processes,
Contact center business, IPS, smart cards, payment-related services, card-related equipment,
Authentication and security services and related products, IC tags, holograms, business forms,
Catalogs, leaflets, brochures, calendars, point-of-purchase (POP) materials, digital (electronic)
signage,
Planning/development/production/construction/operations related to events/stores/products/
contents, etc.,
Services using generative AI,
Dye-sublimation thermal transfer materials (color ink ribbons, receiver paper, and dye-sublimation
photo printer),
Thermal resin-type transfer printing media (monochrome ink ribbons), ID photo business, portrait
photograph and ID solutions,Entertainment and amusement solutions,E-book distribution and sales, book sales, library management, etc.
[Major companies](Production)

OGUCHI BOOK BINDING & PRINTING CO., LTD.
DNP Imagingcomm Co., Ltd., DNP SP Innovation Co., Ltd.
DNP Graphica Co., Ltd., DNP Communication Design Co., Ltd.
DNP Book Factory Co., Ltd., DNP Data Techno Co., Ltd.
DNP Media Art Co., Ltd., DNP Media Support Co., Ltd.

(Production and sales)

DNP Imagingcomm Asia Sdn. Bhd., DNP Imagingcomm Europe B.V.
DNP Imagingcomm America Corporation*MK Smart Joint Stock Company(Sales and services)

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
DNP ID System Co., Ltd., DNP Art Communications Co., Ltd.
DNP CoArise Co., Ltd., DNP Digital Solutions Co., Ltd.
DNP HyperTech Co., Ltd., DNP Photo Imaging Japan Co., Ltd.
DNP PLANNING NETWORK Co., Ltd., DNP hollyhock Co., Ltd.
2Dfacto, Inc., DNP Metro Systems Co., Ltd., Hacosco Inc.
mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co., Ltd.
Toshokan Ryutsu Center Co., Ltd.
MARUZEN Research Services Co., Ltd.
Colorvision International, Inc., DNP Photo Imaging Europe SAS-10-

DNP Photo Imaging Russia, LLC, DNP Photo Imaging Spain S.L.U.
Sharingbox SA* BIPROGY Inc., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd.
The shares of Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE
INC., BIPROGY Inc. and BOOKOFF GROUP HOLDINGS LIMITED
are traded on the Tokyo Stock Exchange.
<<Life & Healthcare>>Lithium-ion batteries components, photovoltaic module components, materials for transporting
electronic components, multifunctional insulation box, and other industrial high-performancematerials, various types of packaging materials for products such as foods, beverages, snacks,
household items and medical supplies; cups, plastic bottles, laminated tubes, molded plastic
containers, aseptic filling systems,Interior and exterior materials for homes, stores, offices, vehicles,
home appliances, and furniture, etc.; molded plastic parts for automobiles, metallic veneers, contract
manufacturing of bulk pharmaceutical intermediates, pharmaceutical contract formulation,
carbonated drinks, coffee beverage, tea beverage, fruit juice, functional beverage, mineral water,
alcoholic beverage, etc.
[Major companies](Production)

DNP Technopack Co., Ltd., N-TECH corporation
Tomoe Resin Co., Ltd., Sagami Yoki Co., Ltd., DNP Ellio Co., Ltd.
DNP Advanced Materials Co., Ltd., DNP Living Space Co., Ltd.
DNP Hoso Co., Ltd.

(Production and sales)

Hokkaido Coca-Cola Bottling Co., Ltd., CMIC CMO Co., Ltd.
DNP Tamura Plastic Co., Ltd., Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya Co., Ltd.
PT DNP Indonesia, DNP Vietnam Co., Ltd.

(Sales and services)

DNP Lifestyle Materials Marketing Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP・SIG Combibloc Co., Ltd.
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on theTokyo Stock Exchange and Sapporo Securities Exchange.

<<Electronics>>
Optical films for displays, metal masks for organic EL displays, large photomasks for liquid crystal
displays, photomasks for semiconductor products, lead frames, LSI design, hard disk suspensions,camera module components for smartphones, etc.
[Major companies](Production)

DNP LSI Design Co., Ltd., DNP Fine Optronics Co., Ltd.

(Production and sales)

DT Fine Electronics Co., Ltd., DNP Photomask Europe S.p.A.
* Photronics DNP Mask Corporation
Photronics DNP Mask Corporation Xiamen(Sales)DNP Taiwan Co., Ltd.

-11-

<Companies with multiple types of businesses>(Production and sales)

DNP Fine Chemicals Co., Ltd., DNP Engineering Co., Ltd.
DNP Shikoku Co., Ltd., DNP Denmark A/S* DIC Graphics Corporation(Sales and services)

DNP Logistics Co., Ltd., DNP Trading Co., Ltd.
DNP Accounting Services Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
Sanshi Industries Co., Ltd., UBE Scientific Analysis Laboratory, Inc.
DNP Hokkaido Co., Ltd., DNP Tohoku Co., Ltd., DNP Chubu Co., Ltd.
DNP Nishi Nippon Co., Ltd.
DNP Asia Pacific Pte. Ltd., DNP Corporation USA
DNP America, LLC, DNP Holding USA Corporation* Equity-method affiliated companies-12-Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers[Smart Communication](Production and sales)
DNP Imagingcomm Asia Sdn. Bhd.
DNP Imagingcomm Europe B.V.
DNP Imagingcomm America
Corporation
MK Smart Joint Stock Company*[Life & Healthcare][Electronics](Production and sales)
PT DNP Indonesia
DNP Vietnam Co., Ltd.

(Sales)DNP Taiwan Co., Ltd.
(Production and sales)
DNP Photomask Europe S.p.A.
Photronics DNP Mask Corporation*
Photronics DNP Mask Corporation
Xiamen*(Sales and service provision)
Colorvision International, Inc.
DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC
DNP Photo Imaging Spain S.L.U.
Sharingbox SA

Dai Nippon Printing Co., Ltd.

(Production)
OGUCHI BOOK BINDING &PRINTING CO., LTD.
DNP Imagingcomm Co., Ltd.
DNP SP Innovation Co., Ltd.
DNP Graphica Co., Ltd.
DNP Communication Design Co.,Ltd.
DNP Book Factory Co., Ltd.
DNP Data Techno Co., Ltd.
DNP Media Art Co., Ltd.
DNP Media Support Co., Ltd.

(Sales and service provision, etc.)
Maruzen CHI Holdings Co., Ltd.
INTELLIGENT WAVE INC.
DNP ID System Co., Ltd.
DNP Art Communications Co., Ltd.
DNP CoArise Co., Ltd.
DNP Digital Solutions Co., Ltd.
DNP HyperTech Co., Ltd.
DNP Photo Imaging Japan Co., Ltd.
DNP PLANNING NETWORK Co.,Ltd.
DNP hollyhock Co., Ltd.
2Dfacto, Inc.
DNP Metro Systems Co., Ltd.
Hacosco Inc.
mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co.,Ltd.
Toshokan Ryutsu Center Co., Ltd.
MARUZEN Research Services Co.,Ltd.
BIPROGY Inc.*BOOKOFF GROUP HOLDINGSLIMITED*
Kyoiku Shuppan Co., Ltd.*(Production and sales)
DNP Fine Chemicals Co., Ltd.
DIC Graphics Corporation*(Sales and service provision, etc.)
DNP Logistics Co., Ltd.
DNP Human Services Co., Ltd.
DNP Hokkaido Co., Ltd.
DNP Asia Pacific Pte. Ltd.

Notes: *(Production)
DNP Technopack Co., Ltd.
N-TECH Corporation
Tomoe Resin Co., Ltd.
Sagami Yoki Co., Ltd.
DNP Ellio Co., Ltd.
DNP Advanced Materials Co., Ltd.
DNP Living Space Co., Ltd.
DNP Hoso Co., Ltd.

(Production and sales)
Hokkaido Coca-Cola Bottling Co.,Ltd
CMIC CMO Co., Ltd.
DNP Tamura Plastic Co., Ltd.
Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya
Co., Ltd.

(Production)
DNP LSI Design Co., Ltd.
DNP Fine Optronics Co., Ltd.

(Production and sales)
DT Fine Electronics Co., Ltd.

(Sales and service provision, etc.)
DNP Lifestyle Materials Marketing
Co., Ltd.
LIFESCAPE MARKETINGCORPORATIONDNP・SIG Combibloc Co., Ltd.

DNP Engineering Co., Ltd.

DNP Shikoku Co., Ltd.

DNP Denmark A/S

DNP Trading Co., Ltd.
DNP Facility Services Co., Ltd.
DNP Tohoku Co., Ltd.
DNP Corporation USA

DNP Accounting Services Co., Ltd.
Sanshi Industries Co., Ltd.
DNP Chubu Co., Ltd.
DNP America, LLC

DNP Information Systems Co., Ltd.
UBE Scientific Analysis Laboratory, Inc.
DNP Nishi Nippon Co., Ltd.
DNP Holding USA Corp.

: Equity-method affiliated companies (Otherwise, subsidiaries): Flow of products, materials and services-13-

3. Management policies(1) Core policies
The DNP Group aims to realize a sustainable society, and expresses its corporate philosophy as“DNP connects individuals and society, and provides new value.” In order to realize a better andmore sustainable society and more fulfilling lifestyles based on this idea, our core management
policy is to maintain a long-term view as we endeavor to develop business activities that will enable
us to create a better future through our own efforts.
Through our various activities, we solve social issues and, at the same time, create new value thatmeets people’s expectations. We strive to make that new value such an integral part of people’s
everyday lives that they come to take it for granted. By continually generating value that people findindispensable, DNP strives to make itself an indispensable company. This aspiration is expressed inour brand statement as, “Today’s Innovation is Tomorrow’s Basic.”
Through initiatives aligned with our core management policies, we continually generate corporate
value and shareholder value. We use ROE and PBR as indicators for evaluating our businessactivities and for assessing our progress toward increasing value.
In March 2024, the DNP Group identified the materiality (key issues) that concretize what it should
do and what kind of value it should create for the four interrelated societies that it aims to create as a“better future.”< DNP’s Materiality>
 A society in which people can live safe, secure, healthy and fulfilling lives
By generating its own changes and responding flexibly to change, the DNP Group will enhance
the sustainability of the environment, society, and the economy.
 A society in which pleasant communication is possible
By connecting the real and the digital, the DNP Group will enhance the quality of the experiential
value that people can gain, and will expand opportunities for people to engage in activities.
 A society in which people respect each other
The DNP Group will create a place where everyone can play a vital and active role by deepening
mutual understanding and acknowledging each other.
 A society in which economic growth coexists with the global environment
By working to conserve the environment and reduce the environmental impact of its activities, the
DNP Group realizes a nature-positive value chain.
(2) Medium-term Management Plan
1) Plan overview
In line with our basic management policies, in April 2023 the DNP Group has begun implementing
its three-year Medium-term Management Plan, whose final year is the fiscal year ending March
31, 2026. According to this plan, we will implement concrete measures–mainly “businessstrategies”–aimed at continual value creation. At the same time, we will promote “financial
strategies” and “non-financial strategies” to strengthen the management capital that supports
those measures, and we will increase corporate value and shareholder value.
2) Three types of strategies[1] Business strategies[1-1] The thinking behind DNP’s medium- to long-term business portfolio
DNP’s Business Strategy clearly defines the medium- to long-term business portfolio we should
aim for, based on market growth potential, appeal, and profitability. Growth-driving businesses-14-(*1) and new businesses (*2) with high market growth potential and appeal are positioned as“focus businesses.” By concentrating investment of resources in the five focus businesses andadequately developing the structures and systems that they require, we spur them to generate
more profits more quickly. In addition to developing and mining DNP’s own unique strengths, wewill also strategically pursue the No. 1 position in various markets by co-creating with the diverse
partners who constitute DNP’s own brand of social and relationship assets, including collaborative
activities and M&As with companies whose strengths differ from those of DNP.
*1 Growth-driving businesses: digital interfaces, semiconductors, mobility and industrial high-performance materials*2 New businesses: content and XR communication, medical and healthcare

At the same time, among stable businesses (*3), where market growth potential andattractiveness are low but profitability is high, the Group will work to improve business efficiency
and take other steps to generate a stable cash flow. Among businesses for reforming (*4), whichcurrently have low market growth potential and struggle to turn profits, the Group will promote
optimization, which may include downsizing or withdrawal of production capacity and/or operating
locations, as well as structural reforms that may include reallocation of resources to focus
businesses or strengthening individual products or services within these businesses that haveunique strengths.
*3 Stable businesses: imaging communication, information security*4 Businesses for reforming: existing printing business, beverages business[1-2] Strategies for each segment〇 Smart Communication
In the Smart Communication segment, we intend to invest efficiently and effectively while keeping
our eye on the balance between invested capital and cash generation. We will leverage DNP’sunique strengths and pursue collaborative operations and development of services withcompanies in Japan and abroad. Concerning our paper media printing business, which belongs
the category of “businesses for reforming,” we will promote rationalization and optimization as
appropriate for the scale of the market.
This segment’s focus business area is content and XR communication, which realize
metaverses where people can seamlessly and securely move between real and virtual spaces,
and we expand the value of people’s experiences. We will leverage DNP’s unique strengths,
including our network of diverse intellectual property holders and creators not only in Japan but
around the world; our archiving businesses; high-definition image processing technologies;
DNP’s track record and reputation as a trusted copyright processor; our ability to securely
authenticate individuals and information while distributing massive amounts of data; and ourability to integrate and optimize complex business processes. In addition, as “stable businesses”
that steadily accumulate earnings, we have imaging communication, which offers photo printing
and diverse other products and services worldwide, our Business Process Outsourcing (BPO)
business which designs optimal business processes for companies and organizations who thenoutsource some of those processes to DNP, the smart card business in which the DNP Group is
the top provider in Japan, and information security businesses including various types ofauthentication services.
As specific measures, in addition to investing in global expansion of imaging communicationand information security businesses, we will also work to expand our BPO business, which seeks
to boost the efficiency of companies and local governments and assist them with DX. Regarding
content and XR communication, we will create new markets by deepening cooperation with
DNP’s many partners in Japan and elsewhere.

-15-

〇 Life & Healthcare
One of this segment’s focus business areas is mobility and industrial high-performance materials.
DNP will promote the global expansion of the world’s top share of battery pouches for lithium-ion
batteries for EVs through aggressive capital investment. Primarily through these battery pouches
and a wide variety of interior and exterior decorative materials for vehicular use, we will work to
help realize extended cruising distances for EVs, automated driving, and pleasant mobile spaces
over the next few decades.
The segment’s other focus business area is medical and healthcare. By combining various
technologies that we cultivated through businesses like publishing, packaging, andsemiconductors, such as image processing and color management technologies, aseptic/anoxic
filling technologies, micro/nano modeling technologies, and fine organic synthesis, we intend todevelop pharmaceutical support businesses such as production of active pharmaceuticalingredients, drug formulation, formulation changes, and medicine package manufacturing. In
addition, we will strive to expand smart healthcare businesses like diagnostic imaging and online
diagnostics in order to extend people’s healthy life expectancy.
Meanwhile, in our Packaging business, where competition is fierce, we will work to improve
profitability through measures like reorganization of production bases, and we will expand ourunique products like DNP transparent vapor deposition IB (Innovative Barrier) -Film® andeco-friendly packaging materials.
Specific measures include considering the investment in a lithium-ion battery pouch production
base in the United States and expanding our global supply capacity for products like barrier films
and eco-friendly packaging materials. In the medical and healthcare field, we will work to
maximize synergies with partners.
〇 Electronics
In addition to actively promoting capital investment, this segment will accelerate businessexpansion by developing new products that leverage DNP’s unique strengths and by expanding
the value that it provides to the semiconductor supply chain through alliances with external
partners.
In digital interfaces, one of this segment’s focus businesses, we will continue to create newvalue that links the real with the virtual and the analog with the digital by staying ahead of thecurve in technological innovation, and by focusing on products for which we hold the world’s top
market share, such as metal masks for manufacturing OLED displays and optical films for display
surfaces.
Another of the Electronics segment’s focus businesses is semiconductors. As the volume ofdata being distributed around the world increases dramatically with increasing use of automateddriving, distance education, telemedicine, cloud environments and expanding data centers, DNP
will develop and provide fine devices that are indispensable to the entire semiconductor supply
chain.
[2] Financial strategies
In order to continuously generate corporate value and shareholder value, we need to build andmaintain a stable financial base from which we allocate cash both for investment in growth and forappropriate returns to shareholders.
〇 Cash allocation strategies
The Group will actively invest in focus business areas and improve the efficiency of each businessto generate a stable operating cash flow that will be used to fund investment in growth. In order toimprove asset efficiency, we are accelerating sales of strategic share holdings and steadily-16-reducing underused real estate holdings. We will also strive to maximize funding efficiency byconsidering various appropriate funding methods, including the use of interest-bearing debt.
The cash that we generate will be allocated for concentrated investment in focus businessareas, as well as for investment aimed at building our management base. In order to promote
corporate activities over the long term and to continue to provide value to society and individuals,
we will also actively allocate cash for shareholder returns while taking into account the balance
between investing in growth and returning profits to shareholders.
[3] Non-financial strategies〇 Strengthening human capital
As part of the DNP Group’s active promotion of investment in people, in 2022 we formulated our
Human Capital Policy. In order to more clearly link investment in people with the enhancement ofcorporate value and to significantly increase “human creativity” (added value productivity) on a
global basis, we are implementing the following measures.
In order to support our employees’ career autonomy and strengthen organizational capabilities
so as to create more value, we have developed compensation and related policies that are moreclosely founded on a job-oriented perspective. Issues covered by these policies include
multi-track post-based compensation, investment in people aimed at supporting employees’
career autonomy, maintaining and securing highly competitive compensation levels and systems,
and the enhancement of organizational development.
In addition, in order to implement management reform and make DNP function as a more
powerful team by drawing out the strengths of its diverse individuals in line with the DNP Group
Declaration on Health, we are promoting health and productivity management that increases thehappiness of employees by making DNP Value Objectives an integral part of our system and by
developing measures aimed at increasing organizational engagement.
We will take steps to get the right people into the right positions based on business strategies.
These steps include using a talent management system to make it easy to see the skill levels of
ICT and DX personnel, use of a human resources portfolio as a basis for hiring and training, andenhancement of any retraining needed for the redeployment of personnel.
The DNP Group believes that making the most of a diverse workforce and combining thestrengths of each individual are essential for value creation and therefore considers promotion ofdiversity and inclusion (D&I) as an important management issue. The DNP Group will continue topromote measures aimed at realizing its basic policy of promoting D&I, i.e. the development ofdiverse human resources, the institution of diverse working styles, and the cultivation of a culturethat enables active participation by diverse personnel.
〇 Enhancing intellectual capital
We will enhance our intellectual capital by taking advantage of DNP’s own unique strengths aswell as collaboration with external partners.
Our policy for research and development is to create a picture of a “better future” that DNP
wants to create, then, in order to realize a “future scenario” based on that picture, we hone ourproprietary technologies and connect them to the development and provision of new products
and services. We will promote the creation of new themes centered around our focus businessareas, enhancement of core technologies, development of new products, acquisition of strategic
technologies through open innovation, and the commercialization of those products andtechnologies. Additionally, we will strive to strengthen overseas business development,
particularly related to the Life & Healthcare segment, and to bolster overseas marketing andresearch and development. We will create new value in both existing businesses and new-17-

businesses by developing new products and services that use existing intellectual capital such as
patents that the DNP Group has acquired through its various businesses, and by building anorganizational culture that actively combines strengths from both inside and outside the company.
The DNP Group positions DX as something that creates its own unique business model andvalue by fusing two opposing extremes, such as analog and digital, real and virtual, or
manufacturing and services. In line with this basic policy, we will create new businesses,
transform existing businesses, dramatically improve productivity, and reform our internal
information infrastructure.
〇 Environmental protection initiatives
The DNP Group always considers the coexistence of its business activities with the global
environment, and views responsiveness to environmental problems as one of its most importantmanagement issues. By approaching environmental issues from the dual perspective of value
creation (business promotion) and foundation strengthening, we contribute to the realization of adecarbonized society that is recycling-oriented and in harmony with nature.
Regarding value creation (business promotion), we are working on transitioning to a businessportfolio that simultaneously achieves reductions in environmental impact while increasing theadded value of our businesses. We also work toward such goals as creating new businesses withenvironmental themes, developing and using low-carbon materials, calculating and reducing CO2
emissions per product unit, building recycling schemes to support a recycling-oriented society,and promoting the use of recycled materials.
In terms of foundation strengthening, we will keep working to make environmental effects
visible, introduce renewable energy, invest in energy-saving equipment that lightens the burden
on the environment, optimize production bases, make efficient use of resources and especially ofplastics, achieve traceability of raw materials, and reduce the burden on ecosystems, etc.
[4] Governance
The DNP Group assesses risks that could have a major impact on management, such as suddenchanges in the environment, society, or the economy, and reflects them in medium- to long-term
management strategies. We are also working on enhancing the processes by which we transformthese risks into business opportunities.
In order to further accelerate these efforts, in April 2022, we launched the Sustainability
Committee, which is chaired by the DNP Group’s president. In the process of implementing our
Medium-term Management Plan, the Sustainability Committee assesses sudden changes in theenvironment, society, and economy, and reports and makes recommendations to the Executive
Committee and Board of Directors in order to appropriately reflect those changes in management
strategies.
4. Basic approach to selecting accounting standards
The DNP Group uses Japanese GAAP in preparing consolidated financial statements. It plans to
consider adopting IFRS going forward and respond appropriately based on domestic and overseas
circumstances.

-18-5. Consolidated financial statements and key notes(1) Consolidated balance sheets(Million yen)

Year ended March 31, 2023 Year ended March 31, 2024
(As of March 31, 2023)(As of March 31, 2024)

ASSETS
Current assets
Cash and time deposits
Notes receivables
Trade receivables
Contract assets
Marketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-19-

246,438
46,780282,560
421
22,80085,02633,89035,94649,819(688)
802,995

228,765
48,590299,193646
7,500
88,30136,60739,58850,789(664)
799,318

555,484(373,274)
182,209678,617(612,663)
65,954
139,907
20,284
129,957(101,883)
28,073
436,429572,978(394,367)
178,611710,091(633,477)
76,614142,404
23,751
141,859(110,100)
31,758453,1392,423
26,1091,827
30,360

4,101
23,7382,856
30,697341,215
174,781
7,749
38,882(2,029)560,598
1,027,389
1,830,384

374,659
248,389
8,718
43,592(2,885)
672,474
1,156,310
1,955,629

(Million yen)

Year ended March 31, 2023 Year ended March 31, 2024
(As of March 31, 2023)(As of March 31, 2024)

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Repair reserve
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Repair reserve
Net defined benefit liability
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-20-

224,418
30,301
1,243
10,492
20,433
17,54994,131
398,571

223,873
38,261
4,478
11,642
21,2907,157
102,224
408,928

100,000
13,772
9,506
54,74084,65920,888283,567
682,139

100,000
23,403–56,190111,654
18,765
310,013718,941

114,464
145,112
737,699(88,212)
909,064

114,464
145,118
782,000(126,367)
915,215

138,781

161,863(21)
14,14325,53526
20,85067,971

178,439

250,71160,741
1,148,245
1,830,384

70,7601,236,687
1,955,629

(2) Consolidated statements of income and comprehensive income
Consolidated statements of income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividends income
Equipment rental
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Contributions
Equipment rental expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on reversal of repair reserve
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes andnon-controlling interests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders-21-

Year ended
March 31, 2023
1,373,209
1,081,284
291,924
230,691
61,233

Year ended
March 31, 2024
1,424,822
1,111,129
313,692
238,242
75,4509,016
754
13,603
3,321
26,695

6,410
1,005
17,5293,488
28,434

700
1,179
473
1,913
4,267
83,661

894
1,041
646
2,600
5,182
98,702

17,426
12,871
11,3882,788
44,474277
69,931
15,64746
85,903

1,313
6,286
802
8,402

1,894
38,263
1,436
41,593

119,733

143,012

20,3779,650
30,02889,704

31,47484
31,558111,454

4,011

524

85,692110,929

Consolidated statements of comprehensive income(Million yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders-22-Year ended
March 31, 2023
89,704

Year ended
March 31, 2024
111,454(54,184)

23,027(74)
7,457(2,895)63
6,214
42,852

3,025

904(46,672)
43,03273,062
184,516

38,938
4,093

183,201
1,315

(3) Consolidated statements of changes in net assets
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,143

740,183(133,123)

866,667

Changes of items during theperiod(17,145)(17,145)

Net income attributable toparent company
shareholders

85,692

85,692

Change of application ofequity method

(465)

(465)

Cash dividends paid

Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

(30)

(30)

Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
method00(25,864)(25,864)

15

194

210

(70,581)

70,581–

Purchases of treasury
stock
Disposal of treasury stock
Retirement of treasurystock
Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period––(30)(2,484)44,911

42,397

114,464

145,112

737,699(88,212)

909,064

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets192,994

45

4,220

27,932

225,193

56,552

1,148,413

Changes of items during theperiod(17,145)

Cash dividends paid
Net income attributable toparent company
shareholders

85,692

Change of application ofequity method(465)

Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders(30)

Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
method0

Purchases of treasury
stock(25,864)210

Disposal of treasury stock
Retirement of treasurystock
Net changes in items otherthan stockholders’ equity–(54,212)

(66)

9,922

(2,397)(46,754)

4,188(42,565)

Total changes of items
during the period(54,212)

(66)

9,922

(2,397)(46,754)

4,188

(168)

Balance at the end of current
period138,781(21)

14,14325,535

178,439

60,741

1,148,245-23-

The year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,112

737,699(88,212)

909,064

Changes of items during theperiodCash dividends paid

(16,430)(16,430)

Net income attributable toparent company
shareholders

110,929

110,929

Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

55Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock
Disposal of treasury stock
Retirement of treasury
stock

0

0

(88,564)(88,564)

55

156

211

(50,253)

50,253–

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period––5

44,301(38,155)

6,151

114,464

145,118

782,000(126,367)

915,215

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets138,781(21)

14,14325,535

178,439

60,741

1,148,245

Changes of items during theperiodCash dividends paid

(16,430)

Net income attributable toparent company
shareholders

110,929

Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

5

Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
method0

Purchases of treasurystock(88,564)
211

Disposal of treasury stock
Retirement of treasurystock
Net changes in items otherthan stockholders’ equity–
23,08147

6,706

42,436

72,271

10,01982,291

Total changes of items
during the period

23,08147

6,706

42,436

72,271

10,01988,442

Balance at the end of current
period161,863

26

20,85067,971

250,71170,7601,236,687-24-

(4) Consolidated statements of cash flows(Million yen)

Year ended
March 31, 2023
Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Impairment loss
Increase of doubtful receivables, net
Increase of net defined benefit asset
Increase of net defined benefit liability
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gain on sale of investment securities
Net loss on devaluation of investment securities
Net (gain) loss on sale or disposal of fixed assets
Increase in trade receivables
Increase in inventories
Decrease in trade payables
Increase on reversal of repair reserve
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Net decrease in marketable securities
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchase of stock in subsidiaries resulting
in change in scope of consolidation
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash provided by (used in) investing activities-25-

Year ended
March 31, 2024

119,733

143,01251,7696,286
38(16,958)
3,641(13,603)
512(9,016)700(12,810)337(16,080)(1,599)(11,085)(13,404)(11,388)(8,197)
68,875(6,844)(141)(23,895)
37,99355,99038,263
747(17,656)
4,748(17,529)735(6,410)894(69,913)685
1,649(12,844)(2,598)(3,452)(15,647)
1,732
102,403(4,251)(89)(25,508)
72,553

1,492
–

(703)
10,300(50,321)(59,428)

19,813(1,038)14,903

1,782(1,470)81,614(1,743)(9,282)(11,804)
6,740(3,063)(25,021)(15,325)
12,632(1,763)18,355

(Million yen)

Year ended
March 31, 2023
Cash flows from financing activities
Net increase (decrease) in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Expenditure for acquisition of subsidiary shares withoutchange in scope of consolidation
Income from the sale of shares of a subsidiary without achange in the scope of consolidation
Payments for purchases of treasury stock
Change in money held in trust for purchase of treasury
stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents resulting frommerger of non-consolidated subsidiaries
Cash and cash equivalents at end of year

-26-

Year ended
March 31, 2024

(3,693)
3,100(2,652)(1,050)

7,953
4,619
(11,146)(2,500)

–

(169)

41

982

(25,864)(88,564)(127)(5,462)(0)(698)(17,142)(592)(3,754)(52,435)

(100)
(889)
(16,431)(1,651)(5,337)(118,696)

4,430

3,983

(35,032)
293,361(23,804)
258,329–45

258,329

234,569

(5) Notes regarding consolidated financial statements[Notes on premise of a going concern]
None[Basis of presenting consolidated financial statements]
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 111
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd., INTELLIGENT WAVE INC.
CMIC CMO Co., Ltd., DNP Fine Chemicals Co., Ltd.,DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 19
Major companies:
BIPROGY Inc., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd., DIC Graphics Corporation
Photronics DNP Mask Corporation
MK Smart Joint Stock Company
Photronics DNP Mask Corporation Xiamen
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
As of the current fiscal period, CMIC CMO Co., Ltd. and six other companies have been newly
included in the scope of consolidation in accordance with the acquisition of shares. In addition,
three companies have been removed from the scope of consolidation due to dissolution related tomergers, etc.
(Application of equity method)
From the current fiscal period, two companies have been newly included in the scope of
application of the equity method in accordance with the acquisition of shares. In addition, twocompanies have been excluded from the scope of application of the equity method due to thecompletion of liquidation, etc.
3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 33 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 18 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, CMIC CMO Co., Ltd. andfour others have fiscal years that end on September 30, DNP Tamura Plastic Co., Ltd. and one othercompany have fiscal years that end on October 31, and DNP・SIG Combibloc Co., Ltd.’s fiscal year
ends on December 31. Consequently, financial statements based on provisional accountsettlements are used.
Any material transactions during the time between the foregoing settlement dates or provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

-27-4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Held-to-maturity debt

Amortized cost method (straight-line method)

Other securities
Non-stock instrumentsthat do not have amarket price

Fair market value(The related valuation differences are directly included in net
assets and cost of sales is computed mainly by themoving-average method.)

Stock instruments that
do not have a market
price

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

For figures shown on the balance sheet, the book value
write-down method based on the decrease in profitability isused.

Merchandise

Mainly cost based on the specific identification method

Finished products, work inprogress

Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

Mainly cost based on the most recent purchase method(b) Depreciation and amortization of significant assets• Property, plant and equipment The Company and its domestic consolidated subsidiaries(except for lease assets andmainly use the declining balance method.
right-of-use assets)
However, depreciation of buildings (excluding building
fixtures) acquired after April 1, 1998 and of building fixturesand structures acquired after April 1, 2016 are computed by
the straight-line method.
Assets with an acquisition cost of at least ¥100,000 and lessthan ¥200,000 are depreciated mainly over three years by
the equal depreciation.
Foreign consolidated subsidiaries mainly use the straight-line
method.
• Intangible fixed assets(except for lease assets andright-of-use assets)

Mainly the straight-line method
Software used internally is amortized mainly using thestraight-line method over the Company’s estimate of theuseful life of the assets (five years).

• Lease assets

Lease assets with transfer of ownership
These lease assets are depreciated using the samedepreciation method used for owned fixed assets.
Lease assets with no transfer of ownership
These lease assets are depreciated over the lease periodusing the straight-line method with no residual value.

•Right-of-use assets

These right-of-use assets are depreciated over the lease
period using the straight-line method with no residual value.

-28-

(c) Basis for recording significant allowances• Allowance for doubtful
To cover possible losses on doubtful accounts, including
accounts
trade receivables and loans, the allowance for doubtful
accounts is based on historical default rates for generalaccounts and on estimates of the amounts that may not berecoverable based on examinations of the recoverability of
specific accounts including accounts at risk of default.
• Reserve for bonuses

To cover payments of employee bonuses in the following
fiscal year, the reserve for bonus is based on the estimatedamount that is attributable to the current fiscal year.

• Repair reserve

The repair reserve is based on a rational estimate of theamount of repair costs that will be required in the future to
repair defects for some products.

(d) Revenue and expense reporting standards
Details of the major performance obligations in our major businesses related to revenue
generated from contracts with customers of the Company or its consolidated subsidiary, andnormal times for satisfying those performance obligations (normal times for revenue
recognition) are as follows:• Details of major performance obligations in major businesses
The main performance obligations of the Company and its consolidated subsidiaries are thesale of products or merchandise or the provision of services, etc. by its business segments,
which are Smart Communication, Life & Healthcare, and Electronics. Specific products
offered by each business segment are listed in “2. Information on the DNP Group.”• Normal times for fulfilling performance obligations (normal times for recognizing revenue)(1) Sale of products or merchandise
Regarding the domestic sale of products or merchandise, we mainly apply the alternative
treatment stipulated in Section 98 of the Guidelines for Applying Accounting Standards for
Revenue Recognition. When the amount of time that elapses from shipment until control ofthe products or merchandise is passed to the customer is a normal period, we recognize
revenue based on shipment. With regard to export sales of products or merchandise, we
regard the customer as having taken control of the products or merchandise when the burdenof risks related to those products or merchandise has transferred to the customer based on
the terms of trade established in the contract with the customer. Therefore, at that point weare considered to have fulfilled our performance obligation and at that time we recognize
revenue. In addition, regarding merchandise sales that take place at stores operated by someof our consolidated subsidiaries (Smart Communication business segment), we consider thecustomer to have taken control of the merchandise at the point when it is delivered to thecustomer, so at that point we consider our performance obligation to have been satisfied and
we recognize revenue.

-29-

(2) Provision of services
Concerning the provision of services, in cases where the performance obligation is fulfilled ata single point in time, the performance obligation is considered to have been fulfilled when thecustomer accepts the service provision, and we recognize revenue at that point. In cases
where the contract with the customer stipulates that the performance obligation be satisfied
for the duration of a certain period of time covered by the contract, the performance obligationis considered to have been satisfied with the passage of time, and the revenue is recognized
as being evenly apportioned over the contract period.
(e) Accounting treatment of retirement benefits• Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, a benefit formula is used to allocate expected
retirement benefit payments in the period until the end of the current fiscal year.
• Method of amortizing actuarial gains/losses and prior service costs
Actuarial gains/losses are amortized starting in the next fiscal year after they are incurred
using the declining balance method over a certain number of years that is equal to or lessthan the average future service period of eligible employees in the fiscal year the actuarial
gains/losses are incurred (generally nine years).
Prior service costs are amortized using the straight-line method over a certain number ofyears that is equal to or less than the average future service period of eligible employees at
the time the costs are incurred (generally six years).
(f) Amortization of goodwill
Goodwill is amortized using the straight-line method for an effective period not more than 20
years.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents comprise cash on hand, immediately withdrawable funds, andshort-term investments that can be easily converted to cash, have insignificant risk of changes
in value, and have maturities within three months of the purchase date.
[Consolidated balance sheets]

1. Discounts on notes receivables
2. Contract liabilities(Current liabilities and other in long-term liabilities)

Year ended
March 31, 2023

Year ended
March 31, 2024

¥85 million¥89 million¥16,655 million¥25,518 million

Year ended
March 31, 2023

Year ended
March 31, 2024

¥32,480 million¥35,236 million[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses)

2. Reversal of repair reserve
Although more than 90% of all estimated repair quantities were completed by the end of thecurrent fiscal year, the actual payment amount differed from the estimate due to price fluctuations
in labor and material costs and the occurrence of defects, etc. Therefore, a reversal of repair
reserve was recorded.

-30-

3. Impairment losses
The DNP Group recorded impairment losses for the following asset groups in the current
consolidated fiscal year.
Location

Application

Shinjuku Ward (Tokyo),Tochigi City (Tochigi), other

Information Innovation
business assets

Indonesia

Packaging business assets

Kuki (Saitama),
Shiraoka (Saitama), other

Publishing business assets

Kashiwa City (Chiba), other

System assets

United States of America

Imaging Communication
business assets

Other

Business assets
other than above

Other

Idle assets

Category
Buildings and structures,
machinery and equipment, land,
construction in progress,
software, other
Buildings and structures,
machinery and equipment,
construction in progress,
software, other
Buildings and structures,
machinery and equipment,
construction in progress,
software, other
Software, other
Buildings and structures,
machinery and equipment,
construction in progress,
goodwill, software, other
Buildings and structures,
machinery and equipment,
construction in progress,
goodwill, software, otherLand

In calculating impairment losses, the DNP Group combines assets based mainly on the businessgroups that serve as profit/loss units. It also considers impairment losses for each individual item foridle assets.
As a result, regarding a group of assets used by businesses with reduced profitability and idle
assets that are not expected to be used, the book value was reduced to the recoverable value andthat reduced value was recorded as an extraordinary impairment loss of ¥38,263 million.
The impairment loss breaks down into buildings and structures at ¥15,669 million, machinery andequipment at ¥3,901 million, land at ¥3,091 million, construction in progress at ¥818 million, goodwill
at ¥1,157 million, software at ¥9,963 million, and other at ¥3,660 million.
The recoverable value of assets whose profitability has declined is measured by the value in use
or the net salable value. Assets that are measured by their usage value are generally assigned avalue of zero because no future cash flows can be expected from operating activities. Assets thatare measured based on net salable value are calculated according to real estate appraisals, etc.
Regarding sites that the Company plans to close or relocate, the book value of assets that will
become unnecessary at the time of site closure or relocation is reduced.
The recoverable value of idle assets is measured according to the net selling price, which is
calculated based on the planned sale price, but when it is difficult to calculate the selling price of idle
assets, book value is reduced to the memorandum value.

-31-

[Consolidated statements of changes in net assets]
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2023

Increase in
number ofshares during
the year
ended March
2023

Decrease in
number ofshares during
the year
ended March
2023

Number ofshares at theend of theyear ended
March 2023

Outstanding shares
Common stock
317,240,346–
25,000,000
292,240,346
Treasury stock
Common stock
48,175,114
7,619,932
25,070,476
30,724,570
Notes:The number of outstanding shares of common stock declined by 25,000,000 shares due to the1.
retirement of 25,000,000 shares of treasury stock.
The number of treasury shares of common stock increased by 7,619,932 shares due to the2.
repurchase of 7,616,500 shares decided on by the Board of Directors, and by 3,432 shares due tothe repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 25,070,476 shares due to the3.
retirement of 25,000,000 shares, the disposal of 70,470 treasury shares as restricted stockcompensation, and by six shares due to a change in the DNP Group’s ownership stake in an
equity-method affiliate.

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 29, 2022
Board of Directors’
meeting on
November 11, 2022

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,610

32

March 31,2022

June 30,
2022

Common stock

8,534

32

September 30,
2022

December 9,
2022(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2023

Common
stock

8,368

Source ofdividends
Retainedearnings-32-

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2023

June 30,
2023

The year ended March 31, 2024 (April 1, 2023 – March 31, 2024)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2024

Increase in
number ofshares during
the year
ended March2024

Decrease in
number ofshares during
the year
ended March
2024

Number ofshares at theend of theyear ended
March 2024

Outstanding shares
Common stock
292,240,346–
15,000,000
277,240,346
Treasury stock
Common stock
30,724,570
21,968,902
15,051,261
37,642,211
Notes:The number of outstanding shares of common stock declined by 15,000,000 shares due to the1.
retirement of 15,000,000 shares of treasury stock.
The number of treasury shares of common stock increased by 21,968,902 shares due to the2.
repurchase of 21,954,700 shares decided on by the Board of Directors, by 10,509 shares due tofree acquisition of treasury stock under the restricted stock compensation, and by 3,693 shares
due to the repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 15,051,261 shares due to the3.
retirement of 15,000,000 shares, the disposal of 51,242 treasury shares as restricted stockcompensation, by 14 shares due to the sale of odd-lot shares, and by five shares due to a change
in the DNP Group’s ownership stake in an equity-method affiliate.

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 29, 2023
Board of Directors’
meeting on
November 10, 2023

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,368

32

March 31,2023

June 30,
2023

Common stock

8,061

32

September 30,
2023

December 8,
2023(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 27, 2024

Common
stock

7,667

Source ofdividends
Retainedearnings-33-

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2024

June 28,2024

[Segment information, etc.](Segment information)
1. Overview of the reporting segments(1) Method of determining reporting segments
DNP’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
The DNP Group bases its business divisions on the products and services provided anddevelops its business activities based on a comprehensive domestic and overseas strategy foreach business division. The three reporting segments are Smart Communication, Life &Healthcare, and Electronics.
(2) Products and services in each reporting segment
Each business segment’s specific products are listed under “2. Information on the DNPGroup.”(3) Matters related to changes in reporting segments
In order to clarify the business domains and strategies of each of our reporting segments, andin order to accelerate the execution of concrete measures, as of the fiscal year through March
2024, we changed the name of the Information Communication segment to Smart
Communication, and we renamed the Lifestyle and Industrial Supplies segment to Life &Healthcare. At the same time, in order to contribute even further to comfortable lives for people,
we transferred our Beverages business to Life & Healthcare, to which it is closely related andthe Beverage segment has been eliminated.
Segment information for the previous fiscal year is presented based on the new name andclassification method and listed in “3. Information on sales, income/loss, assets, and otheritems by reporting segment and income analysis information” on the previous fiscal year’s
financial results.
2. Method of calculating sales, income/loss, assets, and other items by reporting segment
The accounting method used for reporting business segments is generally the same as statedin “Basis of presenting consolidated financial statements.”
Reporting segment income figures are based on operating income. Inter-segment sales andtransfers are based on third-party transaction prices.

-34-

3. Information on sales, income/loss, assets, and other items by reporting segment andincome analysis information
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Million yen)Amounts
reported on
consolidated
financialstatements Note 2

Reporting segment

Net sales Note 3
Outside customers
Inter-segment
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Investments inequity-method affiliates
Increase in property,
plant and equipment
and in intangible fixed
assets

Notes:

Adjustment

Smart
Communication

Life & Healthcare

718,4131,880
720,293
26,731
817,776

451,221152
451,374
7,981
501,140

20,156

Total

Note 1

203,573–
203,573
46,936242,478

1,373,209
2,033
1,375,242
81,649
1,561,395–(2,033)(2,033)(20,415)
268,989

1,373,209–
1,373,209
61,233
1,830,384

20,5199,481

50,157

1,611

51,769

495

16

0

512

–

512

5,169

768

198

6,135

151

6,286

3,768

630

34,66939,06844,71983,78736,79325,87013,522

76,186

1,895

78,082

Electronics

1.

Figures are adjusted as follows.
Segment income is adjusted for costs related to basic research not assignable to a reporting(1)
segment or costs of research shared by different segments.
Segment assets are adjusted for companywide assets not allocated to reporting segments(2)
and the elimination of inter-segment transactions.
Impairment loss adjustments are related to companywide assets not allocated to reporting(3)
segments.
Investments in equity-method affiliates are adjusted for investments not allocated to reporting(4)
segments.
Increases in property, plant and equipment and in intangible fixed assets are adjusted for(5)
capital expenditures for the head office building and other items.

2.

Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

3.

Sales include revenues generated from contracts with customers as well as other revenues, but
because almost all revenues are generated from contracts with customers, the other revenues are
insignificant and are therefore not displayed separately.

-35-

The year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Million yen)Amounts
reported on
consolidated
financialstatements Note 2

Reporting segment

Net sales Note 3
Outside customers
Inter-segment
Total
Segment income
Segment assets
Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Investments inequity-method affiliates
Increase in property,
plant and equipment
and in intangible fixed
assets

Notes:

Adjustment

Smart
Communication

Life & Healthcare

717,279
2,152
719,431
26,162814,558

472,240120
472,360
13,347547,931

235,303–
235,303
58,152
290,109

1,424,822
2,272
1,427,094
97,662
1,652,599–(2,272)(2,272)(22,211)303,029

1,424,822–
1,424,822
75,4501,955,629

20,52422,926

10,94554,396

1,593

55,990Electronics

Note 1

Total

586

152

2

741

–

741

34,2833,502

1337,799463

38,263

4,917

160

46,44751,52548,949100,474

24,53918,204

24,67467,418950

68,3681.

Figures are adjusted as follows.
Segment income is adjusted for costs related to basic research not assignable to a reporting(1)
segment or costs of research shared by different segments.
Segment assets are adjusted for companywide assets not allocated to reporting segments(2)
and the elimination of inter-segment transactions.
Impairment loss adjustments are related to companywide assets not allocated to reporting(3)
segments.
Investments in equity-method affiliates are adjusted for investments not allocated to reporting(4)
segments.
Increases in property, plant and equipment and in intangible fixed assets are adjusted for(5)
capital expenditures for the head office building and other items.

2.

Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

3.

Sales include revenues generated from contracts with customers as well as other revenues, but
because almost all revenues are generated from contracts with customers, the other revenues are
insignificant and are therefore not displayed separately.

-36-

(Related information)
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,057,410
Notes:

1.
2.
3.

Asia

Other regions

225,900

Total

89,897

1,373,209

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
China, South Korea, Indonesia, Taiwan
Other:
United States, France, Germany, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2024 (April 1, 2023 – March 31, 2024)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,089,075
Notes:

1.
2.
3.

Asia

Other regions

246,023

Total

89,723

1,424,822

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
China, South Korea, Taiwan, Indonesia
Other:
United States, Germany, France, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.

-37-

[Per share information]
Year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)

Year ended
March 31, 2024
(April 1, 2023 –March 31, 2024)

Net assets per share¥4,158.46¥4,866.18

Net income per share¥321.32¥443.12

Diluted net income per share¥321.27¥443.06

Notes: 1. The basis for calculating net income per share and diluted net income per share is as follows.
Year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)

Year ended
March 31, 2024
(April 1, 2023 –March 31, 2024)(Million yen)

85,692110,929(Million yen)––

(Million yen)

85,692110,929(Thousand shares)

266,691

250,336(Million yen)

(13)

(16)

(Million yen)

(13)

(16)

–

–

Year ended
March 31, 2023
(As of March 31,
2023)

Year ended
March 31, 2024
(As of March 31,
2024)

1,236,687
70,76070,760(1) Net income per share
Net income attributable to parent company
shareholders
Amounts not attributable to commonshareholders
Net income attributable to parent company
common shareholders
Average number of common shares outstanding
during the fiscal year(2) Diluted net income per share
Adjustments to net income attributable to parent
company shareholders
Of which, impact of dilutive stock ofconsolidated subsidiaries and affiliates
Increase in common stock(Thousand shares)

2. The basis for calculating net assets per share is as follows.

Total net assets(Million yen)Amount excluded from total net assets(Million yen)

Of which, non-controlling interests
Net assets at fiscal year-end pertaining to common
stock(Million yen)

1,148,245
60,74160,741(Million yen)

1,087,504

1,165,927

Number of common shares outstanding(Thousand shares)

Number of common treasury shares(Thousand shares)

292,240
30,724

277,240
37,642

Number of common shares at fiscal year-end used
for the calculation of net assets per share(Thousand shares)

261,515

239,598[Significant subsequent events](Sales of investment securities)
The Company sold one listed holding security on April 15, 2024 in order to improve the efficiency
of its asset holdings.
As a result of the above, the 58.6 billion-yen profit from the sale of investment securities will berecorded as extraordinary gains in the fiscal year ending March 2025.

-38-

6. Non-consolidated financial statements and key notes(1) Non-consolidated balance sheets(Million yen)

Year ended
March 31, 2023
(As of March 31, 2023)

Year ended
March 31, 2024
(As of March 31, 2024)

137,967
9,451
29,865
219,098
4
3,927
11,736
2,121
57,825(340)
471,656

111,255
9,894
31,081
232,970
38
8,794
16,3107,347
37,747(276)
455,162

430,631(283,887)
146,743
31,126(25,018)
6,108
511,306(465,168)
46,137
1,564(1,409)154
49,978(41,428)8,549
116,641
3,076(1,215)
1,861
13,912
340,110422,721(291,200)
131,520
31,039(25,384)
5,654
512,299(464,789)
47,5101,624(1,455)
168
48,347(41,560)
6,787
113,151
2,446(1,009)1,437
16,403322,633

18,282
1,183
19,466

13,015
1,019
14,034

262,615
139,435
1,524
95,22012,573(2,788)508,581868,157
1,339,813

282,809
151,791
1,500
102,831
12,054(3,269)547,719884,387
1,339,549

ASSETS
Current assets
Cash and time deposits
Notes receivable
Electronically recorded monetary claims
Trade receivable
Contract asset
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery
Accumulated depreciation
Machinery, net
VehiclesAccumulated depreciation
Vehicles, net
Equipment
Accumulated depreciation
Equipment, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in securities in affiliates
Investments in capital of affiliates
Prepaid pension costs
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-39-

(Million yen)

Year ended
March 31, 2023
(As of March 31, 2023)
LIABILITIESCurrent liabilities
Notes payable
Trade payable
Lease obligations
Accounts payable - otherAccrued expenses
Contract liability
Advances received
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Repair reserve
Notes payable for facilities
Other
Total current liabilities
Long-term liabilities
Bonds
Lease obligations
Asset retirement obligations
Long-term accounts payable
Provision for retirement benefits
Repair reserve
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for depreciation reduction of fixed
assetsOther reserves
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-40-

Year ended
March 31, 2024
(As of March 31, 2024)

10,806200,699
522
42,927
16,1253,031
13
182,2288,502
261
17,549845
276
483,789

8,644
206,069513
36,151
16,8422,282
5
184,863
8,494
189
7,157
569
748
472,531

100,000
1,429
1,136
5,370
12,4039,506
64,50025
194,370
678,159

100,000
1,189
1,146
46
12,986–
71,637
24
187,030
659,562

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,30016

15232,780
98,086354,183(88,182)
525,363

132,780
232,100
388,196(126,337)
521,221

136,289

158,766

136,289
661,653
1,339,813

158,766
679,987
1,339,549

(2) Non-consolidated statements of income(Million yen)

Year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equipment rental
Other
Total non-operating income
Non-operating expenses
Interest expense
Equipment rental expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on reversal of repair reserve
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income-41-

Year ended
March 31, 2024

928,084
796,836
131,247
132,058(810)

959,076822,210
136,866
135,298
1,567

91
50,22731,273
3,081
84,675

138
49,692
31,184
4,597
85,613368
24,664
2,017
27,051
56,813368
24,255
2,758
27,381
59,79913,841
12,86911,388
192
38,292

149
69,64015,647363
85,801

1,090
4,116
564
5,770
89,334
860
6,820
7,680
81,653

1,464
33,080584
35,129110,471
10,330(2,170)8,159
102,312(3) Non-consolidated statements of changes in net assets
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

17

232,780

104,142360,240

1–

Cash dividends paid

(17,145)(17,145)

Net income

81,65381,653

Balance at the beginning ofcurrent period

114,464

Capitalreserve

Total capitalsurplus

Legal reserve

144,898

144,898

23,300Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(1)

Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock

15

15(70,581)(70,581)

Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period

–

–

–

–

(1)

–

(6,056)(6,057)

114,464

144,898

144,898

23,30016

232,780

98,086354,183

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(133,093)

486,509

190,381

190,381

676,890

Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets––

Cash dividends paid

(17,145)(17,145)

Net income

81,65381,653(25,864)(25,864)(25,864)

194

210

210

70,581––

Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period

44,911

Balance at the end of current
period(88,182)(54,091)(54,091)(54,091)

38,854(54,091)(54,091)(15,237)

525,363

136,289

136,289

661,653-42-

The year ended March 31, 2024 (April 1, 2023 – March 31, 2024)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Balance at the beginning ofcurrent period

114,464Retained earnings
Other retained earnings

Capitalreserve

Total capitalsurplus

Legal reserve

144,898

144,898

23,300Reserve fordepreciation
reduction of
fixed assets
16

Other
reserve
232,780

Retainedearnings
brought
forwardTotal
retainedearnings

98,086354,183

0–Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(0)

Reversal of other reserve

100,000–

Cash dividends paid

(100,000)(16,430)(16,430)

Net income

102,312102,312Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Decrease due to company
split

55

55

(50,253)(50,253)(1,670)(1,670)Net changes in items otherthan stockholders’ equity
Total changes of items during
the period

–

–

–

–

(0)

(100,000)

134,01434,013

Balance at the end of current
period114,464

144,898

144,898

23,30015

132,780

232,100

388,196

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments(88,182)

525,363

136,289

136,289

Total
net
assets661,653

Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets–

Reversal of other reserve
Cash dividends paid
Net income
Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock

–

–

–

(16,430)(16,430)

102,312102,312(88,564)(88,564)(88,564)

156

211

211

50,253––(1,670)(1,670)Decrease due to company
split
Net changes in items otherthan stockholders’ equity

22,47622,47622,476

Total changes of items during
the period(38,155)(4,142)

22,47622,476

18,333

Balance at the end of current
period(126,337)

521,221

158,766

158,766

679,987(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]None-43-