DNP GroupCSR Report 2008 Information and Data
April 2007-March 2008
CONTENTSFor Environmental Conservation and a

Creating New Values with Honesty Assumed
7-1

DNP Group Code of Conduct
Communication

9-1

Examples of Communications with

Sustainable Society
47-1~3

Reducing Environmental Pollutants

49-1

Offering Environmentally-conscious
Products

Different Types of Stakeholders
9-2

Disclosure Policy

51-1
53-1~2

Management Supporting Value Creation
17-1~6

Information Security and Efforts to Guard
Personal Information

17-7~9Social Responsibilities in the Supply Chain

17-10~13

Research and Development Conducive to theRealization of an Emergently Evolving Society

17-14~17

Efforts in Intellectual Property Rights
Management

17-18~21

Delivering Products and Services with theHighest Standard of Quality in the World
Special Report: Solutions for Food

21-1~2Making Eating Easier

For a Safe and Energetic Workplace
29-1~3For an Inspiring Workplace -1-

31-1~6

For an Inspiring Workplace -2-

33-1~7

For an Inspiring Workplace -3-35-1~7

Support for Employees Seeking Career
Advancement
As a Good Corporate Citizen

37-1~2

The DNP Group Social Contribution
Policy37-3~5

DNP's Corporate Philanthropy, with a
Focus on Art

55-1

Environmental Label Certification
Use of Recycled Materials
Environmental Policy

55-2~4Sites for Environmental Disclosure55-5~8Environmental Accounting

55-9~10

ISO14001 / Eco Action 21 Certificates

55-11

Environmental Education Overview

55-12

Results of Environmental Issue Resolution
Efforts by Year57-1~2

DNP's Own Environmental Management
System57-3~4
59-1

Environmental Risk Management
Current Status of Environmental Impact

Creating New Values with Honesty Assumed
DNP Group Code of Conduct
1. Contributing to the development of society

6. Realization of a “universal society”

We shall contribute to the development of society

We shall work on the development and diffusion

by offering new values through our business.

of easy-to-use functional products, services andsystems so that everyone can live in safety and

2. Social contribution as a good corporate citizen

comfort, and thus contribute to the realization ofWe, as good corporate citizens living in harmony

a “universal society” in which all kinds of people

with society, shall deepen our ties with society

can lead pleasant lives.

and make social contributions through our solutions to various social issues and through ourcultural activities.

7. Ensuring the safety and quality of our products
and services
We shall strive to win over the satisfaction and3. Compliance with the law and social ethics

trust of consumers in general and of our corpo-

We shall contribute to the sustainable develop-

rate clients by ensuring the safety and quality ofment of free and orderly market competition while

our products and services.

assuming a fair and honest attitude at all times, incompliance with the law and social ethics.

8. Ensuring information security
We shall strive to ensure thorough security mea-

4. Respect for human dignity and diversity

sures to protect information assets entrusted to

The dignity of humanity is of supreme importanceus by our clients as well as those retained by theto us. We shall respect diversity in the culture,

DNP Group itself (industrial secrets, personal in-nationality, creed, race, ethnicity, language, reli-formation, intellectual property, etc.).

gion, gender, age and ways of thinking of all
persons, and conduct ourselves in a disciplined

9. Proper disclosure of informationmanner.

We shall take the initiative to disclose information
in a timely and appropriate manner so as to have

5. Environmental conservation and the realizationof a recycling-oriented society

our own business and activities properly under-

We shall strive for the effective utilization of re-of maintaining a high degree of transparency.

stood by our various stakeholders with the goal

sources, without destroying or contaminating the
global environment, so that we can pass on our

10. Realization of a safe and vibrant workplace

beautiful planet to the generations that follow.

We shall exert ourselves for the maintenanceand improvement of the safe and hygienic conditions of our workplace and shall always endeavor
to seek ways to implement new improvements.
At the same time, we shall respect working styles
suited to the diversity of our employees andmake efforts to create a safe, healthy and vibrantworking environment.

7-1

Communication
Examples of Communications with Different Types of Stakeholder

Stakeholder

Means of Communication

Communication Tools

Shareholders
and Investors

General Shareholders Meeting
Individual meetings with investors
Plant tours
Strategy / Technical Seminars, etc.

WebsiteVideo news (DNP NEWS CHANNEL)
Shareholder reports (DNP Report)
Annual Report
CSR Report, etc.

Customers(consumers)

PR efforts
Information exchange through business talks
Plant tours
Solution seminars (Seminars offering optimum
solutions for communication issues between
corporations and consumers)
Exhibitions at business shows
Client surveys, etc.

WebsiteVideo news (DNP NEWS CHANNEL)
Corporate brochure
CSR Report
Pamphlets about products and services
Showrooms
Marketing dispatch (Information magazine that approaches marketing from a "corporate and consumer communication" perspective)
Solution dispatch (Information magazine that presents optimal solutions for corporate and consumer communication issues), etc.

Employees

Interviews with superiors (Management by Objective System)
Employee surveys
Consultation desks for life planning, mental health,etc.
Labor-Management Friendly Conferences
Open Door Room, etc.

Intranet
DNP Group Vision for the 21st Century/DNP Group Code of Conduct"Message from the President"“DNP Spirit” Pamphlet
CSR Report
In-house magazine "Healthy Life"
Mental Health Guidebook and DVD
In-house magazine "Second Life Design Book"
In-house magazine "Corporate Pension Fund Guide," etc.

Trading Partners

WebsiteVideo news (DNP NEWS CHANNEL)
Trade talks and information exchanges during auBasic Procurement Policy
ditingDNP Group CSR Procurement Criteria
DNP Group CSR Procurement Criteria Compliance
Request from the DNP Group to its Suppliers
SurveyCSR Report
Testing of chemical content in materials, etc.
Green Purchasing Policy
DNP Group Management Criteria for Chemicals, etc.

Local communities

Plant tours / acceptance of apprenticeships
Dispatch of lecturers to educational institutions
Local cleanups
Local environmental conservation activities
Participation in local events
Local anti-disaster, anti-crime, and fire safety activities
Renting of facilities
CSR Seminars for job-hunters
Internships
ggg, ddd, CCGA, Louvre - DNP Museum Lab, etc.

CSR Report

Annual Report

In-house magazines

9-1

Graphic Design Annual

WebsiteVideo news (DNP NEWS CHANNEL)
Corporate brochure
New Employee Guide
CSR Report
Graphic Design Annual, etc.

Corporate Brochure

New Employee Guide

Shareholder reports(DNP Report)

Plant tours

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

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

(3) Period of Silence
Before the announcement of our financial statements, we have a "period of silence," during which we
refrain from responding to comments and inquiries regarding settlement, in order to ensure fairness.
However, even during a period of silence, we promptly disclose any information that would incur majorchanges in our business results. Furthermore, we will respond to any questions regarding informationthat has already been disclosed.

9-2

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information
DNP is entrusted with the storage of personal information from a wide variety of companies and organizations, and we assist in the provision of many kinds of services and products offered to consumers. In
addition, we have as part of our own business been developing many kinds of services and productsthat use personal information effectively. Through such business we have come to understand very well
the importance of personal information, and we believe that the appropriate protection of information isunquestionably our duty. We safeguard the rights and interests of individuals by handling personal information properly in accordance with our Personal Information Protection Policy.
We continue in FY2008 to operate and maintain strict, comprehensive data security controls and personal information protection systems. We believe that having all of our employees participate in the
PDCA Cycle for security helps us to realize an energetic workplace and to create new values. What thismeans in real terms is that we are continuing to streamline our workforce and improve efficiency throughthe use of IT, and that our IT know-how and technology also leads to the further development of our security solutions.

Personal Information Protection Policy
http://www.dnp.co.jp/about/privacy.html

17-1

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information
Organizational Measures
1. System Maintenance
Beginning with the establishment of the Office for the Protection of Personal Information in April 1999, we
have made changes in Japan and abroad, and conducted reviews for the purpose of further strengthening
our information security measures. Currently the DNP Group Information Security Committee is establishedat headquarters as an umbrella organization for the entire company. Furthermore, a Information Security
Committee has been established in each of the operations and Group companies that make up the core ofour business. Each company committee consists of a Committee Chief and a person responsible for managing personal information (the head of each operation). Managers, auditors, and inspection managers will be
appointed for each issue, such as education, security regions, and computer measures. We established theInformation Security Headquarters under the management of the Headquarters DNP Group Information Security Committee in FY 2007. We have broadly increased the number of personnel in this Operation,
strengthening the auditing and control structure for the business operations and group companies.
Head Office
DNP Group Information Security Committee
Committee Chief, Manager for the Protection of Personal Information, Committee Member

Information Security Headquarters
Framework for Promoting Information Security Within Operations and Group Companies
Information Security Committee
Committee Chief, person responsible for managing personal information(general managers of operations and presidents of group companes)

Person responsible for inspections
Information Security Promotion Office Manager

Information Security Manager
Person responsible for education

Auditing for Personal Information Protection Management
Systems

Person responsible for security area measures
Person responsible for public relations
Person responsible for information security measures

2. Maintaining Internal Procedures and Rules
In addition to maintaining the Personal Information Protection Rules (implemented in 1999, revised in2005), the DNP Group has established firm standards for personal information protection that apply tothe entire Group. All rules pertaining to information security were revised in 2002, and the Basic Information Security Rules (established in 2002, revised in 2005) have been developed as new systems,
under which 7 standards, including those for document control, computer use, areas from which nonDNP employees are restricted from entry, etc., are stipulated.
We rapidly send out notices and establish or revise our rules accordingly in response to new threats
and risks, and we make sure that employees are thoroughly informed about them.
In FY2007, we established Group-wide rules covering the handling of personal information in data processing offices, the handling of the personal information of our employees and job applicants, and thehandling of notebook computers and mobile phones.

17-2

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information
3. Establishment of a Management System
DNP has been promoting the establishment of a management system based on the Japanese Industrial
Standards, “Personal Information Protection Management Systems-Requirements” (JISQ15001), which
is a standard for thorough compliance with laws and the management of the protection of personal information at all offices which handle personal information. Also, DNP has been actively seeking theacquisition of “Privacy Marks,” which are given to offices which maintain operation procedures andmanagement systems in line with JISQ15001, as well as of ISO and IEC27001, which are standards forthe implementation of information security management.
1 operation division acquired Privacy Mark in FY2007. In addition, DNP has applied as a company for
Privacy Mark certification. We expect to receive that certification in FY2008.

Business Operations and Divisions that have acquired certification (As of March 31, 2008)
Divisions that have acquired the Privacy MarkDai Nippon Printing, IPS Operations

Dai Nippon Printing, IPS Operations

Dai Nippon Printing, C&I Operations

DNP Facility Services

Dai Nippon Printing, Information

DNP Digitalcom

Communication Kansai Operations

DNP Data Techno Kansai

Dai Nippon Printing,Commercial Printing Operations
Dai Nippon Printing, CHUBU Operations
DNP Digitalcom
DNP Uniprocess
DNP Logistics
DNP Media Create Kansai
DNP Information Systems
DNP Tokai
DNP Data Techno Kansai
DNP Hokkaido
DNP Media Create
DNP Tohoku
DNP Data Techno
DNP Total Process Warabi
Direc
DNP Nishinippon

17-3

Acquisition of ISO and IEC27001 (JIS Q 27001) certification

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information
Measures for Human Resources
We conduct training programs for educating and enlightening each employee, through pamphlet distribution, group education, and network learning.
In FY2007, we held Personal Information Management Systems (PMS) education, Information Securities courses, and conferences and lectures nationwide for staff employees.

Training and conferences in fiscal 2007
Personal information management systems education
July 2007

Increase understanding by distributing PMS handbooks, network learning, etc.

- March 2008

Approx. 41,000 in all received credit

Information security courses for technicians (5 in total)“Information Security Technology, and its Precise Management” “Changes in Corporate Networks andNovember- December 2007

Future Needs” “Realizing a Comprehensive ID Control Base Through an Active Directory” “Buildinga Secure and Efficient Business Environment through the Mac OS X Leopard” “Information Security
Through ‘Thin Client’”
Total of 350 attendees

Nationwide conferences and information sessions for information Security Promotion Office Managers
August 2007

Nationwide conferences on information security For Information Security Promotion Office Managers

Textbook(Japanese edition)

Information security courses for technicians

17-4(English edition)

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information

Physical Measures
Various measures are in place at the Data Processing Offices which handle personal information, so as
to prevent data theft. These include entry/exit controls using biometrics to ensure that unauthorized persons cannot access the facilities, surveillance cameras that keep unauthorized behavior in check, andpocket-free uniforms for on-site workers. We also have enhanced information controls by separating thelocations where information is written to media and employing checks using metal detectors. We continued to strengthen these measures and enhance our facilities in FY2007.
Also, the Data Entry Center and Call Center functions and bases that require a high level of security
for Campaign Bureau Representative Work have been concentrated.
Regular DNP Group operational bases also underwent various upgrades in FY2007. Entry/exit controls
using Smart cards for employee identification have been newly installed at 29 operational bases. In addition to having already installed these at operational bases, we are also steadily expanding their installation
to include business offices and other locations. Locking bags for the sole use of main operational bases
have been newly introduced for the in-company transfer of confidential documents. We are also proceeding with the fitting of PC screens with “Anti-Peeping Filters” to prevent information leaks.

Locking bag for confidential documents

17-5

Management Supporting Value Creation
Information Security and Efforts to Guard Personal Information
Technology-related Measures
Access logs are recorded at the Data Processing Offices. The accuracy of checks of data recording media access logs has been strengthened by reducing the number of employees engaged in writing torecording media and restricting such work to DNP Group employees, thereby strengthening the controls.
Also, when the personal information of customers is transferred via networks, the DNP-developed“Gendarme” system uses the electronic certificates stored on both parties’ Smart cards for verification,
ensuring security.
In FY2007, DNP also developed and began selling its “Dreadnought” CD-R loaded with software that
automatically encrypts data received on recording media. Not
only does Dreadnought encrypt personal information when exchanged between DNP and the customer, it also encrypts
important information at the customer’s location.
Anti-virus software installation and OS vulnerability prevention
measures identical to those at domestic sites were implemented
in PCs used at overseas bases in 2007, where concentrated
control systems were also constructed.
“Dreadnought” encryption software CD-R

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

Smart Card

SSL

(Secure Socket Layer)
communication code

(Secure Socket Layer)
communication code

customer

DNP
Dedicatedin-house LAN

Internet
Data Transfer
CenterPC dedicated tohandling personal
information

desktopsecurity

Smart Card

Confirmation via
e-mailDNP IDC(Internet Data Center)

PC dedicated tohandling personal
information

Confirmation via
e-maildesktopsecurity

Ensures physical security /automatic encoding on the server

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

17-6

Management Supporting Value Creation
Social Responsibilities in the Supply Chain
DNP Group Purchasing Policy
DNP seeks the cooperation of our suppliers of materials, equipment, construction supplies, and otheritems so that society, DNP, and the suppliers can all achieve sustainable growth. To this end, in March
2006 we amended our Basic Procurement Policy, and established our Group-wide DNP Group CSR
Procurement Criteria.

Basic Procurement Policy

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

17-7

Management Supporting Value Creation
Social Responsibilities in the Supply Chain

DNP Group CSR Procurement Criteria

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

(1) Compliance with Laws and Social Norms• Establish corporate ethics policies and regulations, and promote measures to ensure compliance withlaws and social norms.

(2) Preservation of the Environment and Product Safety• Provide a safe, healthy, and sanitary environment for employees and neighboring residents.
• Comply with related laws and regulations to strictly control all steps leading up to the final disposal of wastes.
• Put priority on purchasing items that have a minimal environmental burden, including parts, raw materials, equipment and materials, and office supplies.
* DNP Group Green Purchasing Policy http://www.dnp.co.jp/procurement/jp/policy.html• Proper management of chemical substances is conducted in compliance with various laws related toprotecting the environment as well as the DNP Group Management Criteria for Chemicals.
* DNP Group Chemical Management Criteria http://www.dnp.co.jp/procurement/jp/standard.html(3) Compliance Regarding Labor-Related Matters• Equal opportunities for all employees, elimination of discrimination, and respect for and considerationof human rights are put into practice.
• A system is in place and in effect to prevent inhumane labor practices, such as child labor and forced labor.

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

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

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

17-8Management Supporting Value Creation
Social Responsibilities in the Supply Chain[Requests from the DNP Group to its Suppliers]
In addition to the DNP Group CSR Procurement Criteria, a set of requests made of suppliers by the
DNP Group has also been established, so as to move our CSR activity another step forward. In addition
to already existing procurement requirements, such as competitive cost, superior quality, and reliable
delivery, these include the creation of a BCP (Business Continuity Plan) as part of a risk management
system, contributions to society, the creation of a sound corporate climate, and others.
While these requests do not require the same level of compliance as the CSR Procurement Criteria,
meeting them helps to achieve the goal of mutually maintaining and improving the corporate competitiveness of the DNP Group and the suppliers.

Requests from the DNP Group to its Suppliers• Competitive Prices• Superior Quality• Safety and Stability of Products• Reliability and Speed of Delivery• Establish a Risk Management System to Deal With Disasters and Other Emergencies• Stable Management• Provide Information Promptly• Nurturing Human Resources• Create a Sound Corporate Culture• Social Contributions
http://www.dnp.co.jp/procurement/jp/demand.html

17-9

Management Supporting Value Creation
Research and Development Conducive to the Realization of an Emergently Evolving Society
Research & Development to Contributions to an Emergently Evolving Society[Research & Development System]
Our Research & Development Division develops the seeds of solutions in a broad range of R&D fields,
and creates systems that take the commercialization of these seeds into the market. The Research &Development Division consists of the Research & Development Centers (8 specialized laboratories), theNano-Science Research Centers (two specialized laboratories), the Media Technology Research Center, the Electronic Module Development Center, the Technology Development Center, and sevenbusiness specific laboratories (Packaging, Lifestyle Materials, Opto-materials, Information Media Supplies, Display Components, and Electronics Devices). They all work closely with our business operations
in seeking to create new values.

Development
supportProduction technologies;
equipment development

Advanced Technology & Business
Development Division

Technology Development Center

Controlled by Head OfficeControlled by Operations

R&D on new products andtechnologies

Improvement of existing products andtechnologies/Development of products
and technologies for the division

Packaging
Lifestyle and Industrial
Supplies

Lifestyle Materials
Opto-Materials/Industrial Supplies

Information Media Supplies
Display Components

Electronics

Electronics Devices

Commercialization projects

New Business Fields

Investment of Research and Development (billions of Yen)

35.0
30.1

30
28.6
28
26

26.3

24
22
20
17-10

'04

'05

'06

'07

Technical section of each operation

Communication and Information

Media Technology Research Center

IPS/Business Forms

Nano Science Research Center

Commercial Printing

Electronic Module Development Center

Information
Communication

Research & Development Center

Books and Magazines

Packaging Laboratory/ Industrial Supplies
Laboratory

Lifestyle Materials Laboratory
Opto-Materials Laboratory
Information Media Supplies Laboratory
Displays Components Laboratory
Electronic Devices Laboratory

Management Supporting Value Creation
Research and Development Conducive to the Realization of an Emergently Evolving Society
DNP's R&D
DNP seeks to solve the issues faced by our customers and consumers and to create new values
through a synthesis of the printing technology (PT) and information technology (IT) that we have cultivated over many years. We believe that contributing to society through our business is fundamental to
our CSR efforts. During a time of great changes in market trends and technologies, we maintain thetrust of our customers by spurring our R&D Division to develop our own technologies, creating theseeds of new solutions and offering higher-quality solutions.

What is PT (Printing Technology)?

PT is the core reproduction technology that makes information or functions take shape.
• Materials technology: Synthesis of new materials and dispersion/mixing technologies.
[Examples] Planning and manufacturing technologies for inks and adhesives, photosensitive materials, coatings, etc.

• Patterning technologies: Technology that causes letters, pictures, or patterns to take form on a base.
[Examples] printing technology, typeset/offset/gravure printing, lithography, inkjet and other non-solid printing
technologies• Conversion technologies: Technology for changing the form of materials,
or materials processing such as by combining materials.
[Examples] Processing technologies for film, paper, and other materials, such as membrane manufacturing,coating, lamination, excipient, transfer, cutting, polishing, bag manufacturing/forming, and book technologies
What is IT (Information Technology)?

IT is the core technology that makes human communications rich and rewarding.
• Information processing technologies: Input/output, conversion, synthesis, compilation, and transmission technologies.
[Examples] Text and picture processing, editing technologies, database compilation technologies, CG technologies• Human Media Interaction (HMI) technologies: Technologies related to the interaction of humans withinformation.
[Examples] Font design, expressive technologies such as color matting, IF technologies, natural language processing technologies• Information security technologies: Technologies for the accurate transmission of the correct subject,retention, and improper use prevention.
[Examples] Code processing technologies, personal data processing, control technologies, copyright maintenance, biometrics

17-11

Management Supporting Value Creation
Research and Development Conducive to the Realization of an Emergently Evolving Society
DNP's Technology Development
1) Increased information processing sophistication
Information processing, which was fostered throughprinting technology as a communication medium, is becoming more and more sophisticated as the networking
society develops. We are developing digital printing
technology that brings personalized elements to mass
production, security technologies for improved information security, and processors such as Smart Cards andRFIDs that further modularize information processing.

(Left) An artwork appreciation system using Augmented Reality (AR) Technology; (Right) Viewing route guidance system(4th Louvre – DNP Museum Lab Presentation: "The city of Susa and its ceramics
in the first centuries of Islam")

2) Precision patterning
Printing, which is the mass-production of precise patterns, is a manufacturing technology for which weseek thoroughgoing improvements and advances. We
are, for example, developing semiconductor photomasks that require ever smaller nano-scale circuits,
as well as ultra-miniature three-dimensional structured
Micro Electro Mechanical Systems (MEMS), Ink Jet
Technology, and manufacturing innovations for display

Quartz glass template used in circuit patterning on a substrate in our nano-imprint technology, which is getting a lot of attention as a new semiconductor manufacturing technology for semiconductor and nano-device miniaturization. This isused for semiconductor manufacturing at the 18-nm (nanometer) level.
(Right) Enlarged viewcomponents using printing technologies.
3) Increasingly intelligent materials
Incorporating more sophisticated nanomaterials technology in printing techniques make products withmore sophisticated and complex functions. Other areas of interest include gas-barrier packaging that will
enable the long-term storage of processed foods, safeand environmentally-conscious building materials, advanced optical film for clearer displays, and digital
photo materials. We are also beginning to turn our attention to the bio and energy areas.

17-12“Cytograph,” a cell pattern culture substrate, used in key cell research for medical treatment and health care. Allows the stable culturing of cells in a variety ofpatterns. First such product commercialized in Japan.
(Right) Microscopic view of cells cultured in a pattern.

Management Supporting Value Creation
Research and Development Conducive to the Realization of an Emergently Evolving Society
DNP Technology: Advancement seeking an emergently evolving society
Data filtering

RecommendationengineEmergently
evolving
society

Data mining
Network securityeRFIDsystem Micro Electro
Mechanical
Systems
Smart cards

roc
lp

hi

v
-le
h
g

Photomasks

CD-ROM)(2ly

Organic EL
displays

Color filters
for LCD

en
g
i
ell
int

Shadowmasks

Printing
Technology
Information
Technology

17-13

Digitalphotomaterials

Fuel cells

a

re

Inc

g
sin

e
pr

Biomaterialtm
ate

Lead frames

ep

cis

Printedcircuitboards

s

rn

e
att

ria
ls

DVD

(1)

Inc
rea
sin
gl
y

Information
Processing
Solutions

e

on
mati
r
o
f
n
MPEG-4of igni
modulessIn(3)Advanced
optical film

ly
ng
i
s
a
Environmentally-conscious
creGas-barrier
packagingdecorative materials

Management Supporting Value Creation
Intellectual Property Rights Management Efforts
Framework for Promoting Intellectual Property
DNP's IP-protection framework consists of four sections and employs nine in-house attorneys. The Patented Technology Section addresses IP related to basic research and DNP's main business segments:
Information Communication, Lifestyle and Industrial Supplies, and Electronics. The Licensing Section
handles contracts and legal issues related to IP. The Kansai Intellectual Property Section handles bothpatent and license related functions for Kansai and the rest of western Japan, combining the functionsof the first two sections. The Planning Management Group proposes IP strategies and operates DNP'spatent information management system.
IP Framework

Patented Technology Section

Lifestyle andIndustrial Supplies

Electronics(1) Discover patents, utility modes, and designs; acquire rights (2) Promote the use of IP in businessactivities (3) Handle IP-related problems that arise in the course of doing business (patents, utility
modes, designs, etc.). patent research, treatment of other companies' patents, support for businessactivities (4) Public relations related to patents, etc.

Basic ResearchProtect and make use of innovations that resulted from research and development activities (1)Support the creation of IP in line with our R&D strategy (2) Support the creating of R&D patentportfolios (3) Educate employees about R&D-related IP issues

Licensing Section(1) Handle IP-related contracts (drafts, review, etc.) (2) Support all types of business activities related to
IP: trademarks, copyrights, prevention of unfair competition, Law for Preventing Unjustifiable Extras or
Unexpected Benefits and Misleading Representation, etc. (3) Apply for trademarks, acquire and manage
rights, research other companies' rights (4) Consult, negotiate, and handle disputes related to every
aspect of IP issues

Kansai Intellectual Property Division
Maintains joint functions with the Patent Technology Division and License Division in Kansai and areas
to the west.

Planning Management Section(1) Propose IP strategy; disseminate information (2) Create patent research systems/operate patent
management systems/create an infrastructure to support research and development activities (3) Serve
as a secretariat for promoting IP business strategies

17-14

Representative staff

Information
Communication

In-house
attorneys (9)R&D
CenterTechnology
Development
CenterOperational
divisions

Management Supporting Value Creation
Intellectual Property Rights Management Efforts
Intellectual Property
DNP aims to create and nurture intellectual property with strong business values, and also to improveits quality, so as to make P&I Solutions a reality. We have created a structure for the acquisition, management, and protection of intellectual property, such as patents, while at the same time ensuring that
we do not infringe on the patents of other companies.
We educate and enlighten our employees about intellectual property so as to create a corporate culture in which all laws and regulations pertaining to intellectual property are upheld.

Outline of Activities -1-

1) We maintain and operate an intellectual property training system to improve our intellectual property
generation and application skills.
2) We encourage intellectual property generation and its application by our employees through an appropriate intellectual property compensation system.
3) We promote preliminary technology studies and database usage education necessary to generating
intellectual property while preventing the infringement of the rights of existing patent owners.
4) We evaluate the quality of inventions and implement various measures for acquiring patent rights inregard to important applications.
5) We have constructed and operate a system for properly maintaining rights we have acquired.
6) We shore up inventions by evaluating and improving each important intellectual property owned byour company, and support business operations in the achievement of their targets.
7) We have constructed patent portfolios for the themes of each business domain, and apply these in
our patent right maintenance strategy.
8) We hold lectures concerning intellectual property laws as they relate to our clients (copyrights, premiumand representation rules, trademarks, etc.), and support the business of our clients.

17-15

Management Supporting Value Creation
Intellectual Property Rights Management Efforts

Outline of Activities -2-9) We provide our business operations with the results of the examination of each agreement, to ensurethat they present no compliance issues and are meritorious from a business perspective; the operations are instructed to comply with all rules and agreements.
10) We cultivate a fair corporate culture by educating and enlightening our employees about intellectual
property so that they will properly advance our rights while respecting the rights of other parties.
11) We dispatch committee members to all intellectual property organizations (Japan Intellectual Property
Association, Japan Fair Trade Commission, Licensing Executives Society JAPAN), so as to contributeto improving the status of the industry by offering positive recommendations.

17-16

Management Supporting Value Creation
Intellectual Property Rights Management Efforts

Number of patents and utility model rights held

2,500
2,000

Number of design rights held

700
Basic Research

600

Information Communication
Lifestyle and Industrial Supplies

500

Electronics

1,500

400

Other

Basic ResearchInformation Communication
Lifestyle and Industrial Supplies
Electronics
Other

300

1,000

100
500

50
0

0

'05

'06

Number of patent disclosures

800
700
600
500

80
70

Information Communication
Lifestyle and Industrial Supplies

60

Electronics

50

Other

400

40

300

30

200

20

100

10
'05

'06

'07

'06

'07

Number of trademark applications

Basic Research

0

'05

'07

'06

'07

0

Basic ResearchInformation Communication
Lifestyle and Industrial Supplies
Electronics
Other(According to new categories)

Number of trademarks held

1,500
1,200

Basic ResearchInformation Communication
Lifestyle and Industrial Supplies
Electronics

900

Other

600
300
0

'06

'07

(According to new categories)

17-17

Management Supporting Value Creation
Delivering Products and Services with the Highest Standard of Quality in the World
Promoting "Manufacturing 21"
We at DNP believe that as a corporation our primary social responsibility lies in providing products andservices that actually exceed the expectations of our customers and consumers. In order to focus on
maintaining and enhancing a level of manufacturing that produces safe goods with the highest standard of
quality in the world, in 2005 DNP created the “Quality Policy,” with all DNP Group units and employees
participating in “Manufacturing 21.” While activating the production process, we continue to make efforts at
the points of contact with the customer, such as Planning & Development, Sales, etc., so as to fully optimize the process from the ordering stage through distribution and delivery. We have quantified activity
targets and result indicators for quality, cost, delivery, and environmental aspects, and we seek to achievethese targets and eliminate all waste by opening this system up to all employees. We also seek to encourage TAIWA* not only within each business operation, but across operations as well, while at the sametime continuously working to provide solutions to client issues by maintaining daily TAIWA with them.
* Manufacturing 21:
This is a Group-wide project to create a muscular manufacturing structure responsive to changes in the marketplace, with the goal of realizing the DNP Group's Vision for the
21st Century. We are creating a manufacturing structure capable of constant improvement and continuous, sustainable strength, so as to improve profitability and asset efficiency in our manufacturing.
* What we mean by "TAIWA"
The DNP Group has embraced the concept of TAIWA (a Japanese word meaning "dialogue") as one of our core principles. Rather than simply having a conversation, engaging in
TAIWA means finding out about the issues and dreams of others and thereby giving careful consideration to finding ways to help resolve those issues and realize those dreams.

Acquiring certification for quality assurance
We are making all efforts to acquire a variety of certifications so as to continuing making steady progress in quality improvement. All of our business operations have acquired the ISO9000 series certification for quality management, as well as the HACCP9000 certification for food safety and quality systems
in our packaging operations. We are currently proceeding in the area of information management withthe acquisition of IT security certification (ISO/IEC15408) for the handling of credit cards, securities, andother business documents, "privacy marks" for personal information, and Information Security Management Systems (ISO27001/ISMS).
Quality Policy

1. We synthesize printing technology and IT under the “P&I Solutions DNP” banner, offering products
and services with the highest standard of quality in the world as solutions to issues facing our customers, and gaining the trust of our customers by maintaining and exceeding that level.
2. Our mission is to provide products and services that are safe and environmentally-conscious, and weseek to minimize environmental impact.
3. We shall develop the world’s leading edge production technologies, and the highest global standardof efficiency in our manufacturing system.
4. All employees shall be united in seeking to maintain and continuously improve a quality system thatconsistently satisfies our customers, through TAIWA both inside and outside the company and our“Observe, Listen and Think Carefully” policy.
17-18

Management Supporting Value Creation
Delivering Products and Services with the Highest Standard of Quality in the World

ISO9000 Certification Status
Operations/Group companies

Factory

Obtained in:Commercial Printing Operations, DNP Media Create

Enokicho, Oji, Akabane, Utsunomiya

Aug. 2002

Information Communication Kansai Operations /DNP Data Techno Kansai / DNP Media Create Kansai

Osaka, Ono, Nara

Dec. 1999

IPS Operations, DNP Data Techno

Warabi, Enokicho, Ushiku, Kamiya

Nov. 1997

DNP Seihon

AkabaneOct. 2002

DNP Digitalcom

Warabi, Kamiya

Dec. 1999

Information Media Supplies Operations, DNP IMS

Sayama, Okayama, Odawara

Nov. 1994

DNP Fine Chemicals

Tokyo, Fukushima

Aug. 1996

Opto-Materials Operations, DNP Opto-Materials

Okayama, Mihara

Feb. 2003

Lifestyle Materials Operations, DNP Lifestyle Materials

Tokyo, Kobe, Okayama

Nov. 1997

Lifestyle Materials Operations, DNP Ellio

Tokyo, Osaka

Sep. 1998

DNP Technopack Yokohama

Yokohama, Sayama

Mar. 1998

DNP Technopack Tokai

Nakatsugawa

Nov. 1999

Packaging Operations, DNP Technopack

Sayama, Izumizaki

Apr. 1998

Packaging Operations, DNP Techno Polymer

Kashiwa, Kansai

May 1999

Packaging Operations, DNP Techno Film

Kashiwa, Izumizaki

Mar. 2002

Packaging Operations, DNP Technopack Kansai

Kyoto, Tanabe

Jun. 1998

Electronics Devices Operations, DNP Fine Electronics

Kamifukuoka, Kyoto, Kuki

Nov. 1994

Display Components Operations, DNP Precision Devices

Mihara, Otone, Kurosaki

Dec. 1997

DNP LSI Design

Sapporo, Akabane, Kansai, Fukuoka

Dec. 2004

DT Fine Electronics

Kawasaki, Kitakami

Oct. 2002

DNP Hokkaido

SapporoOct. 2000

DNP Tohoku

SendaiNov. 2000

DNP Shikoku

TokushimaJan. 2002

DNP Nishinippon

ChikugoFeb. 2000

DNP Information Systems

Sapporo, Yamagata, Tokyo, Nagoya, Osaka, Fukuyama, Fukuoka, Others

Apr. 1999

DNP Facility Services

Tokyo

Aug. 2001

The Inctec

Tokyo, Kasaoka

Jun. 2003

DNP IMS America

U.S.A. (Concord)

Apr. 1997

DNP Indonesia

Indonesia (Jakarta)

May 2002

DNP Photomask Europe

Italy (Agrate)

Jan. 2005

Operations/Group companies

Factory

Obtained in:

Packaging Operations, DNP Technopack Yokohama

Yokohama

Oct. 2000

DNP Facility Services

Cafeteria at C&I Building

Mar. 2000

DNP Hoso

AkabaneMar. 2002

HACCP9000 Certification Status

17-19

Management Supporting Value Creation
Delivering Products and Services with the Highest Standard of Quality in the World
Product Safety Management System
Our basic policy regarding product safety is to work to fulfill our social responsibility by not only producing products consistent with the relevant standards and laws, but also exceeding the needs andexpectations of customers.
Continuity is important in product safety efforts. We conduct a risk evaluation of all product lines twicea year, and based upon the results we make design changes and technological improvements to ensure
safety.
Our Product Safety Standards are set out in document form for application. In addition, we have been
conducting PL training seminars since 1994, and began employing our Intranet network for this purposein fiscal 2000. 15,600 employees have completed the network seminars in total.

Product safety management model
Product design revision;
Production technology improvement

When developing
a new product

When a complaint
has been received

Twice a year
for all products

PL risk checkContinuous
improvement

Writing productsafety procedures

Manufacturing according
to written procedures

The Consumer Products Safety Law was passed in May 2007 with the goal of preventing the recurrenceof product accidents by accumulating and disclosing product accident information concerning productsthat consumers use in their daily lives. DNP has established the Product Safety Committee as the bodyin charge of the safety of DNP Group products. In the rare event of a product accident, all information
about that accident is consolidated by the Committee. The DNP Group Product Safety Regulations stipulate the operation that is to create a strategy for handling the accident, to publish information, andother measures for ensuring a timely and appropriate response that will prevent the damage fromspreading. The DNP Group extends the Product Safety Management System to cover all products, notjust consumer products.

17-20

Management Supporting Value Creation
Delivering Products and Services with the Highest Standard of Quality in the World
Efforts to Create a Crisis Action Plan
The long-term loss of our functions and ability to conduct business during a crisis caused by, for example, a largescale natural disaster or fire could seriously affect and cause trouble for our clients and ourmany stakeholders. DNP would as a result lose not only sales, but could also lose trust and suffer branddamage; the impact of such an event could even threaten the continued existence of the company. As
part of our overall crisis management, DNP has therefore created a BCP (Business Continuity Plan) toserve as the action plan in the event of a crisis and minimize risk.
We attempt to postulate what the scale of an earthquake, which is the scenario of greatest concern,
would be at our bases of operation according to the Survey on Earthquake Risk, and in 2006, BCP(Business Continuation Plan) Creation Teams were established within the central Disaster Prevention
Councils and tasked with devising business continuity measures. A great deal of our business is international, and it would be difficult to contract our production to other companies, so the impact on society
would be large. Therefore, we have completed a BCPs for the Display Components Operations andElectronic Divices Operations, which experience heavy demand from customers, as well as the IPS Operations, the Information Systems Division, and some materials supply divisions, and are making thetransition to BCM (Business Continuity Management).
We have created systems for establishing BCPs, which would be part of the ongoing drive for ISO
conformity, for other divisions as well, and BCP establishment is planned for 5 Operations in 2008, including the Packaging Operations, Lifestyle Materials Operations, and CHUBU Operations.
* Survey on Earthquake Risks
DNP promotes a survey on earthquake risks which assesses potential impacts based on the intensity and structure of buildings and specifications of production and utility facilities,
from the ground and earthquake environment of each production site across the country. The surveys were conducted from February 2005, and separately implemented in three
periods. They will be done at 69 sites for regional inspections and completed by March 2009. By making improvements at each site after prioritization along with the survey, we
can develop a management consistently prepared for earthquakes.

17-21

Special Report: Solutions for Food
Making Eating Easier
Packaging Design Guidelines - USE•ULL® Packaging We are continuing to pursue efforts in life-related packaging, such as foods, beverages and daily items.
“USE•ULL®” stands for DNP’s packaging design guideline, which focuses on “gentle” designs from consumers’ view points. Having three key words; “Universal Design” (gentle for people), “Symphony ofFunction”(gentle for products) and “Ecology” (gentle for the environment), we put efforts into various socially conscious packaging designs.

Packaging Design Guidelines - USE•ULL® Packaging

DNP's five criteria for Universal Design
1) Easy expression of necessary information
2) Use in simple intuitively understood ways
3) Flexible and safe when used
4) Appropriate weight and size5) Usable without excessive force or movement

niversal Design

DNP's five basic environmentallyconscious rules

ymphony of Function

1) Reduce

Gentle for people
Basic packaging
FunctionsGentle for products

Promotion of the reduced use of packaging material /volume reduction

2) Reuse
Promotion of reuse / refilling3) Recycling
Promotion of the recycling of materials as resources4) Sustainability
Use of renewable resources

5) Reduce the effect on the environment
Use of LCA methods

21-1

cologyGentle for the environment1) Preserve the contents
2) Provide ease of use
3) Provide information

Special Report: Solutions for Food
Making Eating Easier

DNP's five criteria for Universal Design in Packaging Design Guidelines - USE•ULL® Packaging -Universal Design in Packaging

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

DNP's Five criteria for Universal Design
Principle 1)

Easy expression for necessary information

User information, such as expiry dates and ingredients, is in simple language and is expressed with appropriate
and easy-to-understand features such as color, letter size, layout, and embossing.
[Examples] packages with easy-to-understand opening designs, Braille using embossing techniques, illustrations using pictograms
and other similar expressions.

Use in simple intuitively understood ways

Principle 2)

Products can be used properly without being influenced by factors such as experience, knowledge, or visibility.
[Examples] packages with openings big enough to grasp with your fingers, packages that are easy to hold, and packages
that can be distinguished by their shape.

Flexible and safe when used

Principle 3)

Offers consumers choice in use and has a safety-oriented design for users.
[Examples] packages that do not easily transmit heat, packages made of materials that easy on the hands, and packages
that are easy to store.
External view

Appropriate weight and size

Principle 4)

Products that have a certain degree of freedom in choice with a variation of size and volume for carrying, storage, and so forth.
[Examples] package sizes according to use, packages that can be repacked into smaller portions, importance given to mobility by
being lightweight and compact.

Principle 5)

Usable without excessive force or movement

Can be handled with minimum strength and without resorting to unnatural postures or movements[Examples] Packages that can be opened from either side, easy-to pour bottles, and products placed in easy-to-remove packages.

Option 1)

Products with attractive shapes and expressions
The overall package is appealing and has pleasant designs and shapes

Option 2)

Easy to separate and discard
Products with shapes and structures that are easy to dispose of and separate for garbage collection

21-2

Sectional view

For a Safe and Energetic Workplace
For an Inspiring Workplace -1Personnel and Employment Guideline
Each DNP employee strives to gain specialized knowledge and skills, to act as a self-reliant individual
according to the Guiding Principles (5 Principles) and the DNP Group Code of Conduct, which have attheir core the TAIWA* proclaimed in the DNP Group 21st Century Vision, to realize our Business Vision,and furthermore, to achieve personal growth and self-realization.
The company seeks to construct structures, systems, and a work environment even more conducive tonurturing the emergently evolving corporate culture that will form the foundation for each employee to play
his or her role to the fullest and achieve personal growth and self-realization as a self-reliant individual.

Personnel and Human Resources Development Efforts for Realizing our Vision
Management Concept Business Vision Guiding Principles

21st Century Vision

Code of Conduct

Human Resource Development Vision

Career Counseling Center

System for encouraging
qualification acquisition

In-house venture system

In-house recruiting system

Management by Objective system

Rating system

Self-reporting system

Training throughassignment or transfer

Education through changeof duties or new posting

Distance learning

Training of Headquarters

Mass training
Network learning

Mass training,
Practical training

External seminars

OJT

Training held by Business Operationsand Group Companies

Personnel/Organization/System/Application
Personnel ability rating system

Training System/Structure

Self-realization

Professionals capable of independence
and cooperation

Realizing the Vision for the 21st Century

Upholding the Code of Conduct* What we mean by "TAIWA"
The DNP Group has embraced the concept of TAIWA (a Japanese word meaning "dialogue") as one of our core principles. Rather than simply having a conversation, engaging in
TAIWA means finding out about the issues and dreams of others and thereby giving careful consideration to finding ways to help resolve those issues and realize those dreams.

29-1

For a Safe and Energetic Workplace
For an Inspiring Workplace -1Personnel Data
DNP (as of March 2008)
Number of directors on the
Board (Non-consolidated)

Male:

28
persons

Female: None

Senior Expert (Leadership position

Male:

1,346
persons

Female:

Male:

8,070
persons

Male:

Average number of years continuously employed (Non-consolidated)
Number of employees

Total:

28
persons17
persons

Total:

1,363
persons

Female:1,326
persons

Total:

9,396
persons

38.3
years old

Female:30.1
years old

Total:

37.2
years old

Male:

15.2
years

Female:8.3
years

Total:

14.3
years

Male:

32,332
persons

Female:6,325
persons

Total:

38,657
persons

Executive officers in overseas
Group companies (Consolidated)

Local:

30
persons

Japan:

74
persons

Total:

104
persons

Number of Overseas Group
Company Employees (consolidated)

Asia:

4,871
persons

America:348
persons

Europe:208
personslevel 2 and above) (Non-consolidated)

Number of employees(Non-consolidated)

Average age(Non-consolidated)(Consolidated)

Oceania:3
persons

Total:

5,430
persons

Average Annual Compensation (DNP only)
FY2007

FY2006

JPY6,945,465

FY2005

JPY7,110,982

JPY7,192,042

Number of Withdrawals from Service (according to reason)and Annual Turnover Rates (DNP only)(Unit: Persons)Voluntary

FY2007

FY2006

FY2005Retirement Personnel at
Voluntaryage
end of 3/07

Retirement Personnel at
Voluntaryage
end of 3/06

Retirement Personnel atage
end of 3/05

Number ofindividuals

258

84

Turnover
rate*

2.9%

0.9%

9,003

251

83

2.9%

1.0%

8,597

274

43

3.0%

0.5%

*Turnover rate: Number of withdrawals from service/ number of personnel at the end of previous fiscal year

New Employees Remaining at the Company(Number of personnel still employed 3 years after joining the company)
88% (those who joined in 2004)

29-2

9,013

For a Safe and Energetic Workplace
For an Inspiring Workplace -1Part-timers and Temporary Staff (DNP only)
FY2007

FY2006402 persons

FY2005383 persons

464 persons

Transparent and Fair Hiring Practices
We provide opportunities equally to anyone who shares our corporate vision and wants to work with us
to realize their potential. We use equitable methods to select and hire employees. We also actively participate in internship programs.

29-3

Type of Hiring

This Year Results

Previous Year Results

New hiring
We inform candidates of the type of person we are looking for,the steps in our hiring process, the timing of each step, andwhat we are looking for in each interview. In order to avoid mismatches, we assign young employees as recruiting partners togive candidates a real-life picture of our company.

FY2008 new hires(DNP only)· Regular employees:
168 persons(110 males, 58 females)· Technical staff:
267 persons(212 males, 55 females)

FY2007 new hires(DNP only)· Regular employees:
150 persons(99 males, 51 females)· Technical staff:
260 persons(208 males, 52 females)

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

FY2007 mid-career hires(DNP only):
74 persons

FY2006 mid-career hires(DNP only):
57 persons

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

During August- September 2007:
104 interns were accepted in 83 categories

During August- September 2006:
105 interns were accepted in 74 categories

For a Safe and Energetic Workplace
For an Inspiring Workplace -2Fair Evaluation and Treatmen
SystemThis Year Results

Ranking and salary

Individual performance isevaluated according to his/hercurrent role and results andranked accordingly. Monthly
salary and bonus standards areinterlocked, while seniority is
excluded from evaluation.

No change

Evaluation / compensation
systems (management by
objective system, etc.)

At regular intervals, employees
sit down with their supervisors to set future performancetargets and their evaluate past
performance. Employees andsupervisors increase mutual
understanding through discussions and counseling. Evaluation results are directly reflectedin salaries and bonuses.

No change

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

FY2007(June 2007 commendations)· For job performance(special annual award):
37 awards· For the achievement ofgoals (special annual
award): 22 awards· For years of service:
486 persons

Award system

31-1

ProgramPrevious Year Results
Introduction of the following
monthly salary systems:“Role learning salary androle basic salary,” which
are evaluated based on
employee’s learning status
for the general staff anddevelopment status for
managers of each ranking.
“Role performance salary,”
which is evaluated basedon the employee’s ranking
and performance during
the period.

FY2006(June 2006 commendations)· For job performance(special annual award):
47 awards· For the achievement ofgoals (special annual
award): 26 awards· For years of service: 461
persons

For a Safe and Energetic Workplace
For an Inspiring Workplace -2Flexible Work Styles
SystemThis Year Results

Previous Year Results

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

Applied to over 63.0%
of our employees overall(DNP only)

Applied to over 63.3%
of our employees overall(DNP only)

Leave system

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

2007:
Percentage of
employees who took
an annual paid leave:
34.4% (DNP only)

2006:
Percentage of
employees who took
an annual paid leave:
34.4% (DNP only)

Family nursing careleave

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

2007:
2 persons took leave
under this system (DNP
only)

2006:
0 persons took leave
under this system (DNP
only)

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

FY2007:The office handled
1,638 cases
Total of 24 businesstrip consultations at 6
national locations

FY2006: The officehandled 1,535 cases
Conducted on site
clinics at 6 sites since
January 2007.

Life Plan Consulting
Center

Provides information about pensions, employment insurance,
motivation for living, lifelong education, etc. to assist individuals withplanning for life after retirement.

Approximately 1,800
responses to issues
involving the recordingof pensions

FY2006: 718
consultations

Employment system

31-2

Program

For a Safe and Energetic Workplace
For an Inspiring Workplace -2Flexible Work Styles
SystemLife planning promotion
systemCareer counselingcenterMutual relief
association

31-3

ProgramThis Year Results

Previous Year Results

Joint labor-management programs,
such as the distribution of magazinesand holding seminars· Preparation guidancefor 55-year-olds· Briefing sessions
are held regarding
public pensions andemployment insurance
for people of the agesof 58 and 59.
· FY2007: guidance
844 persons attended
guidance and briefing
sessions· Distribution of design
books to 45-year-olds· Preparation guidancefor 55-year-olds· Briefing sessions
are held regarding
public pensions andemployment insurance
for people of the agesof 58 and 59.
· FY2006: guidance
939 persons attended
guidance and briefing
sessions

Provides counseling and guidance
regarding career development· FY2007: 196 persons
used the center· Career design
development course
30 persons (conductedfour times)· FY2006: 136 persons
used the center· Career design
development course
25 persons (conducted
three times)

The continuous creation of independent structures for mutual relief efforts
funded jointly by the company and thelabor unions.

FY2007· Congratulatory or
condolence benefit:
8,005 cases· Loans: 122 cases· Children's scholarships(student grants andpension): 62 cases

FY2006· Congratulatory or
condolence benefit:
7,595 cases· Loans: 121 cases· Children's scholarships(student grants andpension): 54 cases

For a Safe and Energetic Workplace
For an Inspiring Workplace -2Respecting Diversity

31-4

SystemProgramThis Year Results

Previous Year Results

Hiring people withdisabilities

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

FY2007:disabled employee rate
1.74% (DNP only)

FY2006:disabled employee rate
1.87% (DNP only)

Hiring seniors

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

Rate of users of this system in FY2007: 77.3%

Rate of users of this system in FY2006: 65.8%"re-work" System

This makes it possible, under certain
conditions, for former employees
who, having been forced to stop
work for childcare or nursing care
purposes, find that their life circumstances have changed and would
like to become employees again.

67 registered as ofMarch 2008
Cases of re-work effected in FY2007: 2

As of March 2007, 45
persons were registeredas candidates

For a Safe and Energetic Workplace
For an Inspiring Workplace -2"re-work" System
While DNP continues to expand programs such as the “Workplace Return Program” and the “Part-TimeWork System” as support for the “Support for the Development of the Next Generation” and “balancing
life and work,” there are also cases in which leaving work is unavoidable due to marriage, childbirth,childrearing, and nursing care. Some such workers find later that they would like to use the experience
they have gained and work again, and the Group created this structure two years ago to meet theirneeds. Around 70 persons have registered through this program up to now.
We can meet a diversity of needs by using the “Group Hello Work” organization, which functions as
the information organizer/provider and consultation desk for both parties, to manage DNP Group recruitment information comprehensively. This makes for a smooth transition from leaving work throughre-employment.
We use the “Group Hello Work” system, which functions as the information organizer/provider and a
consultation desk for both parties, to manage DNP Group recruitment information comprehensively.
This makes for a smooth transition from leaving work through re-employment.
Trial hiring(employment contract
for a fixed term)["re-work" system]
Retirement

Hiring(new employment
contract)

Period for finding a job (for one year)

Worked for morethan three years
as an employee1) Apply for registration
2) Issue registration
statement

Registerer during period for giving
birth, childcare or nursing care(Max. for five years)

Confirm contact information
Recruitment information
Re-employment introduction

Re-employment if matchedto needs at a workplace

Retired due to giving birth,childcare or nursing care

Registration period (for five years)

Re-employment application

Trial period
Working for threemonths as acontracted
employee for a
fixed term

and job requirement form

Registration

Group Hello Work(DNP human services)
Introduce person
wishing re-employment

General affairs of each DNP
operational division

31-5

Recruitment information
3) Send recruitment form

Work as apart time
employee<Trial period>
For three months
Period to examine
the possibility of hiring
for the company
and individual4) Send registration statement

Each general affairs division

Recruitment information
3) Send recruitment form

Work as afull time
employee

Introduce person
wishing re-employment

General affairs of each DNPGroup company

For a Safe and Energetic Workplace
For an Inspiring Workplace -2Active Support of Female Employees
SystemActive Supportof Female
Employees

31-6

Program• Holding of seminars
Kick-Off Meetings attended by female
employees and their superiors
and Network Meetings for theconsideration of career formation
taking into consideration the particular
life events of female employees• e-Learning"Active Support for Female Employees
Course" held for management-level
staffThis Year Results

Previous Year Results• FY2007 seminars
Participants:
Management staff: 223
persons
Female employees: 266
persons• e-Learning
Number of enrollees in"Active Support for Female
Employees Course"- Management-level staff:
2,038 persons(Cumulative total sinceJune 2003)• e-Learning
Number of enrollees in"Active Support for Female
Employees Course"- Management-level staff:
1,825 persons(Cumulative total sinceJune 2003)

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Support for the Development of the Next Generation
SystemProgramThis Year Results

Previous Year Results

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

2007:
86 persons took leave
under this system (DNP
only)

2006:
77 persons took leave
under this system (DNP
only)

Back-to-Work fromChildcare ProgramThis system is designed to create
an environment in which employees
facing childbirth and childcare duties
can feel secure about taking leaveand then returning to the workplacesmoothly, and also so that they candisplay their full abilities while balancing work and home duties. It includes an Internet program, “wiwiw”,
for support for returning to work afterchildcare, and a back-towork seminar, the Kangaroo Club.

Registered wiwiw
members as of March
2008: 84
Kangaroo Club members
in January 2008: Tokyo,
40; Osaka, 6

Registered wiwiw
members as of March
2007: 54
Kangaroo Club members
in January 2007: Tokyo,
27; Osaka, 10

Back-to Work from Childcare Program
Leave

Leave preparation

GeneralAffairs

Superiors

Employee

If the pregnancy
delivery dates are
known

33-1

Sequence of events
through a return to workand an understanding ofrelated systems

6-3 months prior
to delivery

After return

Return preparation
2 months prior
to delivery

Leaveprior todelivery

Delivery

Leave
after
deliveryChildcare leave
2-1 months 2 weeks priorprior to return to return

Period for use of “wiwiw”
Work continues

Exchange of information with superiors
Home study courses taken
Kangaroo Club

(Back-to-work seminar)

Meeting prior to leave

Sequence of events
through a return to workand an understanding ofrelated systems

Employee’s considerations about work

Meeting prior
to return(1st time)

Preparation for return

Meeting prior
to return(2nd time)

Preparation and execution of support plan

Look into replacement during leave period

Explanation of theoverall program to theemployee and superiors

Oversee the continuation of work

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

Support for the employee and superiors

Support for the employee taking leave (provide information, help withprocedures)Support for superiors concerning
decisions made after a return to work

Support for the adjustmentof the employee

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Maintaining and Improving Health
SystemProgramThis Year Results

Previous Year Results

Health management
system"Health examination management
system" on the Intranet makes it
possible to access one's own healthexamination results, including past
results, via a personal computer.

January to December
2007: Ratio of employees receiving the general
health exam- 97.73%

January to December
2006: Ratio of employees receiving the general
health exam- 99.39%

Clinics

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

2007: 84,012 persons
visited the clinics

2006: 83,544 persons
visited the clinics

Smoking measures

Smoking measures conducted basedon the Group Guideline at each
worksite to protect nonsmokers fromsecondhand smoke.

No change

Creation and implementation of the “DNP Group
Smoking Guideline” that
stipulates standards forseparate smoking areasand smoking regulations.

Consultation system for employees
and their families to provide advice from medical specialists about
disease or medical therapy. It also
provides support for health maintenance through nutrition consultationand exercise consultation.

January to December
2007
Telephone health consultation (including family
members)
Mental health consultation
Nutrition consultationand exercise consultation
Total of 6,172 cases

January to December
2006
Telephone health consultation (including family
members)
Mental health consultation
Nutrition consultationand exercise consultation
Total of 6,077 cases

Health consultation
officeTelephone healthconsultation (including
family members)
Mental healthconsultation
Nutrition consultationand exercise
consultation

33-2

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Maintaining and Improving Health33-3

SystemSystem Program

Mental Health

DNP is shoring up educational
programs and expanding in-house
consultation opportunities so as
to support and improve employee
mental health. We have continued
in implementing mental healtheducation by distributing our guidebook, holding lectures, using ourown videos and intranet-based
courses. We also offer checkups
by specialists at the Tokyo Ichigaya
medical clinic and at health insurance union clinics in the Kansaiarea.

This Year Results

Previous Year Results

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Workplace Safety| Creating Healthy and Safe Workplaces
All of our employees want to work in a safe and pleasant environment, so we conduct our own healthand safety activities. Our basic policy is to support the creation of comfortable and pleasant working environments and working styles that make room for family life. Accordingly, we created a system of
health and safety activities for all employees to participate in, and we attach great importance to thissystem.
The Central Health and Safety Committee has been established at Headquarters through joint labormanagement cooperation, as well as in each operation and affiliate company.

SystemThis Year Results

Standards and guidelines
Management and employees together
established the Central Health and Safety
Committee within the head office. Each
Operation and the Group company has asimilar system for discussing and promoting health and safety related activities.

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

Skill improvement
Promotes activities that are tailored toeach workplace, and seeks to improve
employees' skills when necessary to allow the Health and Safety Committees tofunction effectively.

Persons holding qualifications as ofMarch 2008
Industrial sanitation administrator: 437
Operation chief: 2,581
Completed technical course for restricted work operations: 6,403
Completed special educational course:
2,692

Persons holding qualifications
as of March 2007
Industrial sanitation administrator: 385
Operation chief: 2,367
Completed technical course forrestricted work operations: 6,051
Completed special educationalcourse: 1,955

DNP’s accident rate is low comparedto the industry average and even compared to the average for all types ofprinting industries
Jan - Dec 2007: Industrial accident
rate (rate of lost-worktime injuries)*:
0.47%

DNP’s accident rate is low
compared to the industry average and even compared to theaverage for all types of printing
industries
Jan - Dec 2006: Industrial accident rate (rate of lost-worktime
injuries)*: 0.55%

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

Previous Year Results* Industrial accident rate: Victims of accidents accompanied by lost worktime / cumulative total of working hours

33-4

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Workplace Safety
We practice risk assessments for the prevention of workplace accidents.
We follow risk evaluation standards based on the analyses we have performed up to now to identify areas of risk in the production process during the course of daily safety activities. The workplace is thenmade safer by repeating the risk reduction cycle that is determined according to the evaluation and subsequent measures are taken. Our basic safety maintenance philosophy is “Focus all knowledge on
maintaining and enhancing workplace safety, and always seek improvement.” Operating from the perspective of safety specialists in addition to that of our workers, as well in consideration of the facilities,
we seek to eliminate risk that has that not yet been rooted out, as well as to conduct thorough risk reduction measures. We also seek to improve in terms of management through analysis of the basic risk
generation factors.
In FY2007, there was an implementation rate of 96.6% at all manufacturing sites nationwide. Risk
levels were categorized based upon the selected risk evaluation results, from the highest level of risk at
Level IV to the lowest at Level I. Level II and above and Level III and above sites that completed risk
elimination measures were 13.1% and 23.6%, respectively. Risk reduction activities are proceeding in
FY2008. In addition, the 5 major accident risks faced by the Group as a whole have been selected andachievement goals established for them, with individual safety measures underway.

Workplace accident rate (rate of lost-worktime injuries)
2.0
1.95

1.90

1.45

1.45

0.60

0.55

1.5

1.83
1.52

1.0

0.47

0.5

0

0.25

0.28

2005

2006

DNP

33-5

DNP Group

All printing companies

0.40
2007
All businesses

For a Safe and Energetic Workplace
For an Inspiring Workplace -3Secure Working Environment
DNP has created an earthquake response outline and a central disaster prevention basic plan, in order
to secure employees’ safety, restore functioning to workplaces, and support employees’ families and local residents in the event of a disaster. We established “Disaster Prevention Councils” in operations andGroup companies at our headquarters and in outlying areas. In the event of an earthquake, these councils are prepared to automatically begin functioning as response headquarters. Six action teams are to
take specific disaster prevention measures and earthquake response measures, with each team taking
responsibility for human rescue, care of buildings, asset protection, business operations, PR, or community aid.
Beginning in 2006, BCP (Business Continuation Plan) Creation Teams were established within thecentral Disaster Prevention Councils, and they have begun establishing measures for high-priority businesses. By 2007 we had completed BCPs for 5 operations, which are making the transition to BCM(Business Continuity Management). BCP establishment is planned for 5 Operations in 2008. Furthermore, by shoring up the emergency communications network system, which consists of disaster
wireless systems at 29 business sites in the Kanto area and satellite phone facilities at 42 sites nationwide, we are able to provide prompt and appropriate assistance not only for the business affected by
the disaster, but also to regional residents and businesses. In certain areas we also use the Emergency
Earthquake Information* provided by the Japan Meteorological Agency. This system provides an alertthat major seismic activity is anticipated, activating our damage control measures.
*Emergency Earthquake Information
This is information reported as quickly as possible; magnitude and scale are determined according to the observed data recorded immediately after an earthquake occurs, andbased upon this the time of shock occurrences and the magnitude at each location are estimated.

33-6

For a Safe and Energetic Workplace
For an Inspiring Workplace -3-

DNP Group Natural Disaster Organization

Disaster Measure include:• Measures for those unable to return home

• Joint simulations with regions • Preparation of emergency stockpiles

33-7

ActionCommittee

ActionCommittee

self-fire department• Execution of disaster training

DNP Group Including Disaster
Response Headquarters

ActionIncluding Response Headquarters
by Operations and Group
companies

Implementation

Regional Including
Response Headquarters

ActionDisaster Prevention
Committee by Operations andGroup companies

Ad-hoc Committees

Implementation

Management

Regional Disaster
Prevention Committee

Decision making/
Implementation

DNP Group Central Disaster
Prevention Council

Coordinate

Permanent Committees

self-fire department

Actions to be taken include:• Get businesses back up and running• Support for local residents• Provide support for employees and their families • Support for local businesses

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Support for Employees Seeking Career Advancement

35-1

SystemProgramThis Year Results

Previous Year Results

In-house recruiting
systemWe advertise positions requiring specialized knowledge and positions in new
businesses or new product development.
Anyone with ability, experience, and thedesire to be challenged is free to apply.
The purpose is a connection within thecompany to discover talented humanresources and to let employees realize
their potential.

[FY2007]
Number of Applicants:
119
Number of transferees: 47[FY2006]
Number of Applicants:
120
Number of transferees: 51

In-house venturesystemWe provide training, financing, and othertypes of support for employees who haveentrepreneurial aspirations and want
to start an independent new business.
Generally, we appoint the person who proposed the idea for a new company to be
its president.

FY2007: 0 companies

FY2006: 0 companies

In-House Learning in a
Different Department

The employee gains experience in anotherdepartment or office for a fixed term andthen returns to his or her original position,with the goal of improving work skills (theprogram was introduced by an employee's
suggestion).

FY2007: 0 persons

FY2006: 3 persons

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

Increase in employeeswith qualifications for
specialized knowledge
and technology necessary for work, primarily
IT-related work
FY2007: 783 persons(DNP only: 279 persons)

Increase in employeeswith qualifications for
specialized knowledge
and technology necessary for work, primarily
IT-related work
FY2006: 593 persons(DNP only: 270 persons) completed

Meister system

Employees with valuable production skills
are designated as “Meisters” and we train,
appraise and position them for the succession of their technical skills, which is thebasis of manufacturing. Meisters take onroles for the whole organization as well as
in each division that they belong, so as tocultivate successors by passing on theirtalents.

FY2007: 0 designatedCumulative total
through the end March
2008: 47

FY2006: 0 designatedCumulative total
through the end March
2007: 47

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Support for Employees Seeking Career Advancement
SystemProgramThis Year Results

Previous Year Results

Special skills
recognition program

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

• Chief researcher /Chief planner
FY2007: 3 designatedCumulative total
through the end March
2008: 16
• Fellow
FY2007: 1 designated• Chief researcher /Chief planner
FY2006: 1 designatedCumulative total
through the end March
2007: 13

Self-reporting system

We ask employees whether they want tochange positions or workplaces in orderto further their careers, and for any otherrequests they may have related to theirlife plans. When the company agrees,
steps are taken to realize the employee’s
wishes.

FY2007
Persons participating in self-reporting
system interviews:
150 transferred outof 312

FY2006
Persons participating in self-reporting
system interviews:
120 transferred outof 302Meister System
We introduced our "Meister System" in 2001, which is focused on our production technicians who possess
valuable professional skills. This system is geared toward getting back to the roots of industry by recognizing the importance of professional skills, and thereby providing training, evaluation, and benefits.
A "Meister" is expected to pass along his or her superior skills not only within his or her own division,
but also within the Group overall. Those granted the title "Meister" are recognized as having met all criteria in the following three categories: Specialized knowledge, skills, and creativity; Degree ofrecognition and confidence received from colleagues; Leadership ability. The ability to lead is given particular weight because the system is intended to provide for the passing down of skills.

35-2

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Special Skills Recognition Program
Employees with a particularly advanced level of specialized skills, whose talents are recognized particularly widely both inside the company and outside, receive special compensation.
There are two titles corresponding to the level of specialized skill:(1) Chief Researcher / Chief Planner
We take certification applications once a year from people using their specialized skills in a technical
R&D, systems development, or planning, both through self-recommendation or the recommendation ofother(s). These applications are evaluated and certified based upon the Certification Criteria.
(2) Fellow
Chief Researchers and Chief Planner are certified as Fellows when they are deemed to have an outstanding character and have either been recognized as authorities through public acclaim or have been
responsible for striking business results
The Certification Criteria are established for each of the following evaluation categories: Results, Public
Acclaim, In-House Acclaim, Competency. These Criteria are announced to all DNP Group employees.
DNP seeks to have employees working in technical R&D and planning targets for their career development based upon the achievement of these Certification Criteria.

35-3For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Chart of Training According to Level
Level

Staff

Sales

Planning and Research anddevelopment development

Technical
Engineering

Production
Management

Production

Leadership
Operation General
Manager
Division General
Manager

General Manager

Division General Manager training, Organizational skill enhancement training /Work streamlining management training
Plant Manager
training

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

ManagerManagement foundation training

Manager training

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

Assistant Manager

General employee
Foreman training

Foreman
5~6 years after
joining the company

Step-up seminar

2 years after joining
the company

Second-year follow-up education
Second-year follow-up education (Operation)

1 year after joining
the company

First-year follow-up education
First-year follow-up education (Operation)
Operation introductory education

Upon joining
the company

New employee guidance education*CSR and compliance courses are always included in the training described below.

35-4

Operation
introductory
education

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Training Programs (Overview)
Sales

Staff
Labor management
education

Research andDevelopment

Planning andDevelopment

Technical
Engineering

Planning enforcement training

Production
Management

Production

IE experts training

Work streamlining expert training
Technical seminars (90 courses)
New entry
staff education

Leader’s expertisetraining

Solution business training
Networking with external entities
Pricing training
Sales and planning seminar
Project management training
Sales and planning intellectual
properties basic

Engineering intellectual properties basic

Sales and planning intellectual
properties advanced

Engineering intellectual properties advanced

Preparatory course for Promotional
Marketer Examination

Mechatronics training
IT experts training

Seminar for administrator qualification
Seminar for information security administrator qualification
Training for the third type lead electric technician qualification
Training for the second type lead electric technician qualification

New business development support seminar
New career design training
Business manner instructor training
Instructor guidance training
New entry employee instructor education
Normalization seminar
Sign language course (regular, advanced)
International communication skills (English, Chinese, Korean)Inter-cultural management training
Global human resource development training, Global human resource development follow-up training
Computer literacy education
Seminar to support women’s careers

35-5

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Training Programs (Overview)
Staff

Sales

Planning andDevelopment

Research andDevelopment

Technical
Engineering

Production
Management
Law for the preventionof Delays in the Payment
of Subcontracting
Charges and Related
Matters

Law for the prevention of Delays in the
Payment of Subcontracting Charges
and Related Matters

Production
Health and safety
management

Environmental issues and business

Environmental issues and business
Beginner’s course of contract

Management indicators
Key financial figures
Beginner’s course in cost and profit
Beginner’s course in export management
Product Liability Act

Network learning

Antitrust law
Insider trading regulations
Personal information protection
Beginner’s course in information security
Computer virus check course
CSR
Mental health course (Managers)
Mental health course (Leadership)
Active Support for Female Employees Course (Managers)
Sexual harassment prevention course (Managers / Leadership)
Beginner’s course in career design (Managers, Leadership / General Employees)
Beginner’s course in printing technology (First or second year after joining the Company)

Correspondence
courses (CAPA)

About colors (First or second year after joining the Company)
Staff

Sales

Research andDevelopment

Technical
Engineering

Production
Management

200 courses

Mandatory for all employees

35-6

Planning andDevelopment

Mandatory for first and second year entry employees

Production

For a Safe and Energetic Workplace
Support for Employees Seeking Career Advancement
Estimated Education Costs (DNP only)(JPY100 millions)

35-7

FY2007

FY2006

FY2005

1,038

980

1,132

As a Good Corporate Citizen
The DNP Group Social Contribution Policy
Social Contribution Policy
The DNP Group seeks to solve the various issues facing society while contributing to sustainablegrowth and the realization of a rich society. Our social contributions are propelled by our provision ofvaluable goods and services through our business. We also seek the effective employment of our management resources (personnel, knowledge, technology, facilities, etc.) and to contribute to the realizationof a better society through solid labor management relations as well as strong ties and cooperation withorganizations outside our Group.
We also believe that the voluntary participation of employees in social contribution activities is valuable not only to society, but also to the personal development and self-realization of the individual
employee. The DNP Group therefore supports the participation of employees in activities that contributeto society.
We at the DNP Group shall continue to engage in steady efforts to contribute to society as a good
corporate citizen.

37-1

As a Good Corporate Citizen
The DNP Group Social Contribution Policy
Themes• Maintaining a love for nature
Environmental conservation is an important global concern. The DNP Group is engaged in a wide variety of environmental conservation efforts, such as reforestation and river cleanups, because we feelgratitude toward the Earth, which has rewarded us with its rich bounty, and we want to leave behind a
beautiful planet for coming generations.
Category: Environmental conservation• Maintaining a broad perspective
The DNP Group works together with members of each local community so as to foster safety, convenience, and richness in local community life. We have strong ties to all of our local communities, notonly in Japan but in countries around the globe, so we are taking an ever more global perspective incontributing to the realization of safe, convenient, and rich local communities.
Category: Contribution to local communities and the international community• For next-generation development
The promotion of superior scholarship and education is vital to the creation of a sustainable society for
future generations. The DNP Group seeks to contribute to the development of future generations by reinvesting the printing and IT technology strengths, as well as the know-how and experience, we havedeveloped over the years back into society and the children who comprise the next generation.
Categories: Academia, education, development of the next generation; development of the information society• For a society rich in culture
Art and culture are indispensable factors in realizing a "Society Rich in Culture” that will inspire joy andawe in the lives of people. The DNP Group supports the proliferation of art and culture, focusing on thegraphic arts which are a part of what we do as a printing company, as well as on the preservation anddiffusion of artworks and cultural properties through the use of our printing technologies.
Category: Promotion of the arts and culture• From the standpoint of humanity
The DNP Group offers rapid humanitarian relief to victims of large-scale disasters and conflict.
Category: Humanitarian aid and disaster relief

37-2

As a Good Corporate Citizen
DNP’s Corporate Philanthropy, with a Focus on Art
Gallery|ggg (Ginza Graphic Gallery)• 1F, DNP Ginza Bldg., 7-7-2 Ginza, Chuo-ku, Tokyo• Established: 1986
• Graphic art exhibitions:[FY2007] No. of exhibitions: 12; No. of visitors: Approx. 54,000[Cumulative] No. of exhibitions: 261; No. of visitors:
Approx. 869,000• Events such as Gallery Talks: Cumulative no. of events:
163; cumulative no. of attendees: 12,700|

ddd Gallery• 1F, Namba SS Bldg., 1-17-28 Minamihorie, Nishi-ku, Osaka• Established: 1991
• Graphic art exhibitions:[FY2007] No. of exhibitions: 6; No. of visitors: Approx. 7,400[Cumulative] No. of exhibitions: 158; No. of visitors:
Approx. 228,000• Events such as Gallery Talks: Cumulative no. of events:
134; cumulative no. of attendees: 11,500* The ddd Gallery in Dojima closed its doors in September 2006 and reopened in May 2007 in Namba. It
has deepened its ties with the local community through the local Art Festival and other activities.

|

CCGA (Center for Contemporary Graphic Art)
• 1, Miyata, Shiota, Sukagawa-shi, Fukushima• Established: 1995
• Exhibitions:[FY2007] No. of exhibitions: 3; No. of visitors: Approx. 2,300[Cumulative] No. of exhibitions: 44; No. of visitors:
Approx. 61,000• Lectures and other events:
Cumulative total: 9 events
Cumulative attendees: 1,600

37-3

As a Good Corporate Citizen
DNP’s Corporate Philanthropy, with a Focus on Art
Gallery|

Louvre - DNP Museum Lab• DNP-Gotanda Bldg, Ground floor, Nishi Gotanda, 3-5-20,
Shinagawa-ku, Tokyo• Established: 2006
• Exhibitions:[FY2007] No. of exhibitions: 2; No. of visitors: Approx. 15,000[Cumulative] No. of exhibitions: 3; No. of visitors: Approx. 21,000• Lectures and other events:
Cumulative total: 27 events
Cumulative attendees: 889|

MMF (Maison des Musées de France)
Offers information about French art galleries and museums,
and sells museum goods.
• DNP Ginza Annex, 7-7-4 Ginza, Chuo-ku, Tokyo• Established: 2003
• Lectures and other events: Opened in 2003; no regular events.
Approx. 38 events, approx. 1,700 attendees.

Topics• “Testimonies from Twenty Pioneers of the Graphic Design Era” opened in February 2008 at the ggg.
It was presented by the DGA (DNP Graphic Design Archive) as part of the “Archives of People Project” (40 Interviews With Famous Designers by Hiroshi Kashiwagi).”• As its 20th anniversary exhibition, the Ginza Graphic Gallery is held an exhibition entitled “EXHIBITIONS: Graphic Messages from ggg & ddd 1986-2006.” The exhibition received the Ministry of
Economy,Trade and Industry Grand Prize at the 49th Annual Nationwide Catalog and Poster Exhibition. The exhibition gathered representative works produced by about 166 designers from 25
nations, who have exhibited at the two galleries over the past two decades.

37-4

As a Good Corporate Citizen
DNP’s Corporate Philanthropy, with a Focus on Art
Web Sites of Our Philanthropy|

DNP Gallery (ggg, ddd, CCGA,
Graphic Design Archive)|

DNP Museum Information
Japan-artscape

http://www.dnp.co.jp/gallery/index_e.html|

Maison des Musées de France (MMF)<Japanese>
http://www.dnp.co.jp/artscape
http://www.museesdefrance.org/top.html|

Louvre - DNP Museum Lab

http://museumlab.jp/english/index.html

37-5<International>
http://www.dnp.co.jp/artscape/eng/For Environmental Conservation and a Sustainable Society
Reducing Environmental Pollutants

Transition of Dichloromethane emissions (tons)

Transition of SOx emissions (tons)

100

45

85.3
75

30

50
15

25.2

25
3.6

0

'03

0.6

0.3

0.3

1.0

'04

'05

'06

'07

22.6

20.4
17.2

0

'03

Transition of Dioxin emissions (mg-TEQ)

'04

'05

'06

'07

774.2

793.8

'06

'07

12,642
11,227
1,242 10,662
1,123
949

11,104890

Transition of NOx emissions (tons)

250

800

214.9

660.3

200

702.1

723.6

'04

'05

600

150
400
100

15.4
0

200

33.9

50
'00

'03

'04

3.1

2.2

6.9

'05

'06

'07

0

'03

Transition of CFC substitute emissions (tons)

40

Transition of VOC emissions (tons)

25,000

37.5
29.8

30

20,00015,00018.9

2019,0682,204

10,000
10.0

10
0

5.3
'03

'04

'05

'06

'07

5,000
0

16,864 11,400

9,713

10,104

10,214

'03

'05

'06

'07

Descending order

47-1

'04

PRTP-listed VOC

PRTR-unlisted VOC

For Environmental Conservation and a Sustainable Society
Reducing Environmental Pollutants

Transition of COD emissions (tons)

50

49.7

52.9

53.3

Transition of Phosphorous emissions (tons)

54.3

56.7

2.0
1.5

40

1.1

30

1.0

20
0.5

10
0

'03

'04

'05

'06

'07

Transition of Nitrogen emissions (tons)

30

28.3

20.3

20

18.8
14.6

14.0

'05

'06

10

0

47-2

'03

'04

'07

0

'03

0.4

0.4

0.3

'04

'05

'06

0.7

'07

For Environmental Conservation and a Sustainable Society
Reducing Environmental Pollutants

Chemical Substances Subject to the PRTR Law (tons; dioxins: mg-TEQ)

Emissions Emissions to Transferred Transferred
Public Waters to the Sewer as Waste
to Air
SystemConsumed

Removed/
Consumed

0.0

0.0

0.0

0.0

0.9

0.0

87.5

0.0

0.0

25.9

25.1

16.7

0.0

0.0

0.0

0.0

0.0

0.0

19.6

0.0

0.0

0.0

0.0

0.0

1.1

0.0

0.0

0.0

1.9

42.2

53.5

76.9

Substance

HandledZinc compound (water-soluble)

4.5

0.0

0.0

0.0

4.5

Bis (2-ehtylhexyl) adipate

1.1

0.0

0.0

0.0

0.2

120.2

6.9

0.0

0.0

2-Aminoethanol

41.7

0.0

0.0

Isophorone-di-isocyanate

19.6

0.0

0.0

1.1

0.0

175.8

1.2

acetonitrile

bisphenol A type epoxy resin
Ethyl-benzene

Recycled

Ethylene glycol

1.1

0.0

0.0

0.0

0.0

0.0

1.0

0.0

Ethylene glycol monoethyl ether

23.9

0.9

0.0

0.0

5.2

0.0

4.5

13.3

Ethylene glycol monomethyl ether

30.9

0.8

0.0

0.0

2.4

0.0

16.8

10.8

Epsilon-caprolactam

18.9

0.0

0.0

0.0

1.5

0.0

17.4

0.0

Xylene

246.8

5.2

0.0

0.0

6.8

46.7

61.9

126.2

Silver and its water soluble compounds

85.3

0.0

0.0

0.1

2.0

11.8

67.0

4.4

Chromium & chromium (III) compounds

136.3

0.1

0.0

0.0

40.9

55.3

39.8

0.2

Hexavalent chromium compounds

30.9

0.0

0.0

0.0

0.4

0.0

19.3

11.2

Cobalt and its compounds

4.0

0.0

0.0

0.0

1.3

0.6

2.2

0.0

Acetic acid 2-ethoxyethyl

1.3

0.0

0.0

0.0

0.2

0.0

1.1

0.0

Inorganic cyanide compound

1.8

0.2

0.0

0.0

0.9

0.0

0.0

0.7

1,1 Dichloro-1-fluroethane

5.3

5.3

0.0

0.0

0.0

0.0

0.0

0.0

Dichloromethane

6.4

1.0

0.0

0.0

0.4

0.0

0.0

5.0

N.N- dimethylformamide

26.9

0.0

0.0

0.0

26.5

0.0

0.0

0.3

Dioxins

0.0

6.9

0.0

0.0

274.5

0.0

0.0

0.0

Water soluble copper salts

633.1

0.0

0.0

0.0

145.4

211.8

89.8

186.2

1,3,5-trimethylbenzene

11.1

0.2

0.0

0.0

1.1

3.9

3.1

2.7

Toluene21,250.9

866.4

0.0

0.0

1,799.1

2,831.6

6,413.4

9,332.5

Lead and its compounds

39.3

0.0

0.0

0.0

29.2

0.0

10.1

0.0

Nickel

381.8

0.0

0.0

0.0

0.0

139.3

239.3

3.3

Nickel compounds

112.6

0.0

0.0

0.0

61.7

50.6

0.0

0.3

Hydrazine

7.0

0.0

0.0

0.0

0.2

0.0

0.0

6.8

Hydroquinone

3.4

0.0

0.0

3.4

0.0

0.0

0.0

0.0

Pyridine

2.3

0.0

0.0

0.0

2.2

0.0

0.0

0.0

Phenol

2.2

0.0

0.0

0.0

0.0

0.0

2.1

0.0

Di-n-butyl phthalate

1.4

0.0

0.0

0.0

0.0

0.0

1.3

0.1

Bis (2-ethylhexyl) phthalate

14.8

0.1

0.0

0.0

1.5

0.0

11.6

1.6

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

8.5

0.0

0.0

0.0

0.5

0.0

8.0

0.0

Boron and its compounds

16.1

0.0

0.0

0.0

10.2

0.0

5.8

0.0

Poly (oxyethylene) = alkyl ether

5.9

0.0

0.0

0.0

0.1

0.0

5.8

0.0

Octylphenyl ether

5.3

0.0

0.0

0.1

0.0

0.0

5.2

0.0

Formaldehyde

1.6

1.6

0.0

0.0

0.0

0.0

0.0

0.0

9.5

0.0

0.0

0.6

2.4

1.0

5.5

0.0

23,490.6

889.9

0.0

29.3

2,252.9

3,394.8

7,107.2

9,808.4

Manganese compounds* Above figures include substances over 0.5t annually for special first class substances and over 1t for other substances, except dioxin, in accordance with the PRTR Law (40substances and 41 plants).

47-3

For Environmental Conservation and a Sustainable Society
Offering Environmentally-conscious Products

Environmentally Conscious Product Development Guidelines

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

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

3) Sustainable use of resources
Utilize natural resources in a sustainable way4) Long-term usability
Make considerations for the ease of repair and parts replacement, length of maintenance and repair
service, and the expandability of functions

5) Reusability
In the case of sites and parts, considerations regarding disassembly, cleaning, and refilling; establishment of a collection and reuse system that is easy for the purchaser to use

6) Recyclability
Consideration of materials used in the product as easy to recycle, design to allow for easy breakdown,disassembly, and separation of materials, collection and a recycling system that is easy for the purchaser to use

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

49-1

For Environmental Conservation and a Sustainable Society
Environmental Label Certification
CoC and EPD Certification Acquisition Status
Certification TypeAcquired By Acquisition

Registration

Date* Organization

FSC*1-CoCDNP Tokai

Oct. 2002

SGS*3

FSC-CoC

Commercial Printing Operations

Aug. 2003

SGS

FSC-CoC

DNP Media Create Kansai

Sep. 2003

SGS

FSC-CoC

DNP Trading

Dec. 2003

SGS

FSC-CoC

Yokohama Plant, Packaging Operations

Dec. 2005

SGS

FSC-CoC

DNP Tohoku

Mar. 2006

SGS

FSC-CoC

Ichigaya Publication Printing Operations

Mar. 2006

SGS

FSC-CoC

DNP Multi print

Apr. 2007

SGS

FSC-CoC

DNP Hokkaido

Nov. 2007

SGS

FSC-CoCDNP Data Techno Kansai

Jan. 2008

SGS

FSC-CoCIPS Operations

May 2008

SGS

FSC-CoC

Tien Wah Press (PTE) Ltd (Singapore)May 2008

DNV*4

PEFC*2-CoC

Packaging Operations

Jan. 2004

JIA*5

PEFC-CoCDNP Tokai

Sep. 2005

SGS

PEFC-CoCDNP Hokkaido

Nov. 2007

SGS

PEFC-CoCIPS Operations

May 2008

SGS

EPD*6

Dye-sublimation transfer materials (2 types)

Mar. 2003

JIA

EPD

Fused thermal transfer materials (8 types)

Jun. 2005

JIA*Date of initial registration*1 [FSC] Forest Stewardship Council*2 [PEFC] Program for the Endorsement of Forest Certification Schemes*3 [SGS] SGS ICS Japan*4 [DNV] Det Norske Veritas (Norway)*5 [JIA] Japan Gas Appliances Association*6 [EPD] Environmental Product Declarations

51-1

For Environmental Conservation and a Sustainable Society
Use of Recycled Materials

Transition of waste emissions (1,000 tons)

800
63

600

222
400

93

Descending order
Others

200

65

63

65

166

180

158

144

113

99

100

94

97

105

189

185

186

182

179

482

59

454

57

Electronics
Lifestyle and Industrial Supplies

268

Information Communication

0

'00

'03

'04

'05

'06

'07

Transition of total waste generation (1,000 tons)

180
17
120
Descending order

60

17

16

16

67

21

27

25

26

30

39

39

38

42

44

19

16

14

12

10

8

92

14

84

20

OthersElectronics
Lifestyle and Industrial Supplies
Information Communication

0

'00

'03

'04

'05

'06

12

'07

Wastepaper collection/Wastepaper collection rate (tons %)

2,000

68.4

73.8

74.4

71.2

1,500

1,231

1,242

1,298

1,299

76.7
1,214

80
60

1,000

40

500

20

0
Year
Waste paper collection
Cardboard
Magazines
Newspapers
High quality paper
General waste
Waste paper collection + general waste amount
Waste paper collection rate
Number of sites

'03
2003
1,231
165
930
65
71
569
1,800
68.4％
29

'04
2004
1,242
195
906
52
88
441
1,683
73.8％
30

'05
2005
1,298
234
953
31
80
446
1,743
74.4%
29

'06
2006
1,299
177
1,006
34
82
526
1,826
71.2%
30

'07
2007
1,214
165
905
43
101
369
1,583
76.7%
30

0

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

53-1

For Environmental Conservation and a Sustainable Society
Use of Recycled Materials

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

600,000
500,000

559,700

523,600

529,400

532,100

'03

'04

'05

'06

5,140

5,200

'05

'06

517,000

400,000
300,000
200,000
100,000
0'07

Transition of the amount of rainwater used (m3)

7,000

6,310

6,000
4,660

5,000

5,750

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

'03

'04

Water Input-Output'07(The total amount for the DNP Group in FY 2007)

Evaporation 2,800,000m3

Wastewater 15,200,000m3
Flow of processes that use the water
recycling system 517,000,000m3

INPUT
Flow of processes that do not use thewater recycling system 15,400,000m3
Water consumption 18,200,000m3

53-2

OUTPUT
Product 200,000m3

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

For Environmental Conservation and a Sustainable Society
Environmental Policy
DNP Group Environmental Policy
The DNP Group’s efforts are directed towards the continuous prosperity of a world economy with limited
resources and for the development of a society that recirculates resources. The DNP Group is making
every effort to minimize the impact our business operations have on the environment, and this includes
compliance with environmental laws and regulations as well as recognizing the relationship that each of
our business activities has with the environment.
(1) Each member of the DNP Group establishes and periodically reviews its own environmental policies
and environmental targets, and puts into effect continuous improvement of its activities and the prevention of environmental pollution.
(2) For all construction projects, and before designing and commissioning new facilities, we carry out afull and detailed environmental survey to assess the impact that the project will have on the environment to make proper efforts to protect the environment. We shall also make aggressive efforts to
use renewable energy.
(3) When carrying out research, development and design for a new product, we consider the impact ofthe product on the environment throughout its life cycle, including the ordering of raw materials, production, distribution, use, and disposal. We give special consideration to energy conservation,
resource conservation, and reducing the use of harmful chemicals.
(4) When purchasing raw materials, stationery, and equipment, we choose items that are ecologicallyfriendly and easy to recycle.
(5) In manufacturing a product, we aim to comply with environmental laws and regulations, and moreover we set up more stringent standards to reduce the emissions of pollutants into the air,watershed, and soil, and to prevent unpleasant odors, noise, vibration, and land subsidence. We areconstantly improving facilities, techniques and manufacturing processes to promote the targets ofenergy conservation, resource conservation and the reduction of industrial waste.
(6) When generating waste from business operations, we strive to achieve zero emissions by separating and recycling waste as much as possible.
DNP Environmental Committee (March 2000, Revised November 2007)55-1

For Environmental Conservation and a Sustainable Society
Sites for Environmental Disclosure
The following consolidated manufacturing sites are subject to disclosure in this report.
Hokkaido/Higashi-ku, Sapporo

Miyoshi, Iruma

DNP Hokkaido

Tsuruse Plant, Ichigaya Publication Printing Operations

Plate-making/printing/bookbinding/manufacturing of packaging(Others*1)

Plate-making/printing plate/printing/bookbinding (Information
Communication)

Kiyota-ku, Sapporo
Sapporo Plant, Hokkaido Coca-Cola Bottling
Beverage manufacturing (Others)

Tokyo Plant, DNP Lifestyle Materials
Plate-making/printing plate/printing/processing (Lifestyle andIndustrial Supplies)

Warabi
Miyagi/Miyagino-ku, Sendai
DNP Tohoku
Plate-making/printing/bookbinding/manufacturing of packaging(Others)

Fukushima/Minami Souma

Plate-making/printing/processing (Information Communication)

SayamaSayama Plant, DNP Technopack
Plate-making/printing plate/printing (Lifestyle and Industrial
Supplies)

DNP Fine Chemicals

Sayama Plant, DNP Technopack Yokohama*2

Photographic materials and medical supplies manufacturing(Lifestyle and Industrial Supplies)

Molding and processing various types of paper containers(Lifestyle and Industrial Supplies)

Izumizaki, Nishi Shirakawa
Izumizaki Plant, DNP Technopack
Plate-making/printing plate/printing (Lifestyle and Industrial
Supplies)

Tochigi/Nishikatacho, Kamitsuga
DNP Graphica
Printing/bookbinding (Information Communication)

Ibaraki/Ushiku
DNP Data Techno
The manufacturing of various types of Smart cards (Information
Communication)

Saitama/Otone, Kita Saitama
Otone Plant, DNP Precision Devices
The manufacturing of electronic parts for displays (Electronics)

Shiraoka, Minami Saitama
Shiraoka Plant, DNP Offset
Offset printing (Information Communication)

Kawaguchi
Kawaguchi Plant, DNP Offset
Offset printing (Information Communication)

55-2

Warabi Plant, IPS Operations

Sayama Plant, DNP IMSManufacturing thermal transfer carbon ribbons (Lifestyle andIndustrial Supplies)*1 [Others]: Group companies that manufacture products not related to the Group’s Information Communication, Lifestyle andIndustrial Supplies, and Electronics divisions or related to several divisions.
*2: This was DNP Cup Techno until
September 30, 2007

For Environmental Conservation and a Sustainable Society
Sites for Environmental Disclosure
Saitama/Fujimino

Kamifukuoka Plant, DNP Fine Electronics
DNP Precision Devices
Manufacturing electronic precision parts (Electronics)

Kuki

Kuki Plant, Ichigaya Publication Printing Operations
Printing/bookbinding (Information Communication)

Kuki Plant, DNP Fine Electronics
DNP Precision Devices
Manufacturing electronic precision parts (Electronics)

Saitama Plant, DNP Opto-Materials

OdawaraSagami Yoki
Manufacturing laminated tubes (Lifestyle and Industrial Supplies)

DNP IMS Odawara
Photographic materials manufacturing (Lifestyle and Industrial Supplies)

Aikawa, Aiko

Tokyo Plant, DNP Ellio
Printing and processing metal sheets (Lifestyle and Industrial Supplies)

Gifu/Nakatsugawa

DNP Technopack Tokai

Manufacturing electronic parts, etc.(Lifestyle and Industrial

Manufacturing/printing/processing packaging (Lifestyle and Industrial

Supplies)

Supplies)

Chiba/Kashiwa

Kashiwa Plant, DNP Techno Polymer
Molding, processing and printing plastic containers (Lifestyle andAichi/Moriyama-ku, Nagoya
DNP Tokai

Printing/bookbinding/manufacturing packaging (Others)

Industrial Supplies)

DNP Techno Film
Manufacturing and processing synthetic resin films (Lifestyle andIndustrial Supplies)

Tokyo/Shinjuku-ku

Ichigaya Plant, Ichigaya Publication Printing Operations
Plate-making/printing plate/printing/bookbinding (Information
Communication)

DNP Facility Services

Kyoto/Minami-ku, Kyoto

Kyoto Plant, DNP Fine Electronics
Manufacturing electronic precision parts (Electronics)

Ukyo-ku, Kyoto

Kyoto Plant, DNP Technopack Kansai
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Kyotanabe

Tanabe Plant, DNP Technopack Kansai
Printing plate/printing (Lifestyle and Industrial Supplies)

Meal services, etc.

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

Shinagawa-ku

DNP SP Tech

Nara/Kawanishi, Shiki

DNP Data Techno Kansai
Plate-making/printing/processing (Information
Communication)

Manufacturing various advertising and promotional materials (Others)

Kita-ku

Akabane Plant, DNP Offset
Printing (Information Communication)

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

DNP Seihon
Bookbinding (Others)

DNP Logistics
Packaging/shipping (Others)

DNP Hoso
Processing filling and packaging (Others)

D.N.K
Printing and manufacturing machine tools (Others)

Kanagawa/Tsuzuki-ku, Yokohama

Yokohama Plant, DNP Technopack Yokohama
Plate-making/printing plate/printing (Lifestyle and Industrial Supplies)

Kanagawa/Midori-ku, Yokohama
Tokyo Plant, The Inctec

Manufacturing ink, varnish, pigments and dyes (Others)

55-3

Osaka/Hirakata

Kansai Plant, The Inctec
Manufacturing ink, varnish, pigments and dyes (Others)

For Environmental Conservation and a Sustainable Society
Sites for Environmental Disclosure
Osaka/Neyagawa

Neyagawa Plant, DNP Media Create Kansai

Hiroshima/Mihara

Mihara Plant, DNP Precision Devices

Printing (Information Communication)

Manufacturing electronic precision parts (Electronics)

Kansai Plant, DNP Techno Polymer

Mihara Plant, DNP Opto-Materials

Molding, processing and printing plastic containers (Lifestyleand Industrial Supplies)

Manufacturing electronic parts, etc. (Lifestyle and Industrial
Supplies)

Osaka Plant, DNP Ellio
Printing and processing metal sheets

Tokushima/Tokushima
DNP Shikoku

Hyogo/Kita-ku, Kobe

Plate-making/printing/manufacturing packaging (Others)

Kobe Plant, DNP Lifestyle Materials
Printing/processing (Lifestyle and Industrial Supplies)

Ono

Ono Plant, DNP Media Create Kansai
Plate-making/printing/bookbinding (Information Communication)

Okayama/Okayama

Okayama Plant, DNP IMSManufacturing dye-sublimation transfer materials (Lifestyle andIndustrial Supplies)

Okayama Plant, DNP Lifestyle Materials
Plate-making/printing plate/printing/processing (Lifestyle andIndustrial Supplies)

Okayama Plant, DNP Opto-Materials
Manufacture electronic parts, etc. (Lifestyle and Industrial
Supplies)|

Fukuoka/Yahatanishi-ku, Kitakyushu

Kurosaki Plant No. 1 and Plant No. 2, DNP Precision
Devices
Manufacturing color filters (Electoronics)

Tobata-ku, Kitakyushu
DAP Technology

Manufacturing rear panels for plasma (Electronics)

Minami-ku, Fukuoka

Fukuoka Plant, DNP Nishinippon
Plate-making/printing/bookbinding/manufacturing packaging(Others)

Chikugo

Chikugo Plant, DNP Nishinippon
Plate-making/printing/bookbinding/manufacturing packaging(Others)

Other Domestic Consolidated Affiliates
DNP Media Art, DNP Uniprocess, and DNP Techtas Ichigaya are covered under a portion of the Ichigaya Plant, Ichigaya
Publication Printing Operations.
DNP Butsuryu Systems Ichigaya is covered as a division of the plants under the Ichigaya Publication Printing Operations.
(Ichigaya Plant, Tsuruse Plant, Kuki Plant)
DNP Media Create and DNP Butsuryu Systems Shouin are covered as a division of the Enokicho Plant, Commercial Printing Operations.
DNP Total Process Warabi and DNP Techtas Warabi are covered as a division of the Warabi Plant, IPS Operations.
DNP Micro Technica is covered as a division of the Kamifukuoka Plant, DNP Fine Electronics.
Three companies- DT Fine Electronics, DNP Fine Electronics Sagamihara, and DNP Color Techno Kameyama- engage inmanufacturing within their customers' plants, and therefore are excluded.
Of the companies treated as consolidated companies under financial accounting practice, we excluded 23 companies without manufacturing divisions, such as DNP Trading.

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

55-4

For Environmental Conservation
and a Sustainable Society

Independent Review Report Comments by an Independent Institution
The environmental accounting data was acquired through a third-party audit
performed by Ernst & Young ShinNihon Sustainability Institute Co., Ltd. (whichchanged its name from "ShinNihon Environmental and Quality Management
Research Institute Co., Ltd." as of July 1), and is entirely independent of thedata found in the environmental sections of the CSR Report.
http://www.dnp.co.jp/csr/2008/kankyo_e.pdf

Environmental Accounting

Purpose(1) Use as an environmental management tool for the DNP Group• Environmental accounting produces a breakdown of environmental conservation costs that can be used as a reference for determining the effectivenessof environmental conservation activities.
• Environmental accounting data is used to determine the cost of individual environmental facilities, the Group’s overall budget for environmental conservation, and the amount of investment in environmental activities.
• Environmental accounting is used to monitor and evaluate the effects and achievements of activities performed throughout the year in order to ensure
continuous improvement in our environmental performance.

(2) Use as a tool for communicating with society• Environmental accounting provides the means for the public release of our environmental conservation efforts and their results.
• We use the reception concerning our environmental accounting reports as received from shareholders, clients, and local communities as a reference for
improving our approach to environmental conservation.

Environmental Accounting Calculation Bases
1) Period covered: April 1, 2007 through March 31, 2008 (Environmental conservation facilities are those considered as of March 31, 2008)
2) Scope of coverage: Of companies subject to our consolidated financial accounting, environmental accounting was applied to the Group’s domestic manufacturing companies (45companies), one distribution company, one in-house food catering company.
3) Monetary unit: All monetary figures are expressed in billions of yen, rounded off to the nearest million.
4) Announcement format: We used the format designated in the Ministry of the Environment “Environmental Accounting Guideline” 2005 edition.
5) Basis for the environmental conservation cost
• The environmental conservation costs include depreciation expenses for investments. Depreciation expenses are calculated using the declining balance method with residual bookvalue at 10%.
• Personnel costs for full-time workers were calculated at the average labor cost per person, while personnel costs for workers holding two or more posts were calculated at 1/10 or
1/5 the average personnel cost per person, depending on the worker’s assigned duty.
• R&D costs are the total costs incurred by our 11 R&D centers in the development of environmentally conscious products and manufacturing equipment
6) Basis for environmental conservation benefits• DNP uses consumption per added-value as an indicator for the volume of resources (energy and water) spent on business activities, as well as for the volume of waste materials
and CO2 emissions.
Furthermore, the DNP Group uses the added-value total of the company concerned as an indicator of the volume of business activities, given that companies within the Group perform product transactions. The added-value amount is calculated pursuant to the “Management Analysis of Japanese Corporations” issued by the Ministry of the Economy, Tradeand Industry.
• The benefit from atmospheric environmental pollutant emissions volume corresponding to business area costs from this period refers to the total volume of VOCs, including those
not covered by the PRTR Law.
• The benefit related to goods produced by business activities is the benefit of the reduction of CO2 emissions when disposing of or recycling containers or packaging.
• The benefit corresponding to the transportation environmental impact is converted to the energy usage reduction benefit at the time the goods, etc., are transported as freight.
7) Bases for the calculation of the economic benefit of environmental conservation activities• The benefit corresponding to resource circulation costs is calculated as the benefit from savings on waste disposal costs.
The reduction amount is calculated as follows: ((Benchmark period unit consumption - unit consumption for the current period) x business activity amount for the current period).
• The calculation of business activities was performed using the added-value indicated in Item 6 of the above benefit calculation basis.
• For unit consumption, we use (waste disposal cost/added-value).
• The benchmark period unit consumption is the gross average value for the three-year period up to and including the previous term.

Results of Our Environmental Accounting
Table (1) Environmental conservation costs (Categories corcesponding to business activities)(Unit: billion yen)
Investment

Category

Expense

Details of Major Efforts

2006

2007

2006

2007

• Pollution prevention cost

0.794

0.618

2.583

2.552 sound abatement shield installation• Global environmental conservation cost

0.139

0.526

0.615

0.518 Energy conversion (LPG

• Resource circulation costs

0.148

0.030

3.130

2.649 recycled water(Total business area costs)

Page(s) on whichdata is listed(1) Business area cost
Increase in deodorizing equipment and VOC processing equipment, expansion of wastewater treatment facilities,

LNG), inverter installation, insulation installation

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

47,57,59
45,46,59,60-61
52,53,58-59,60-61

1.081

1.174

6.327

5.720

(2) Up/downstream cost

0

0

0.004

0.216 Container and packaging recycling expense burden, recycling system development(3) Administration cost

0

0.020

2.004

2.045 composition costs, tabulation system

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

50,54-57(4) R&D cost

0

0

2.465

2.385 Research and development into environmentally conscious products and production methods

48-49(5) Social activities cost

0

0

0.013

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

56(6) Environmental remediation cost

0

0

0.238

0

1.194 11.051

10.383

Total

1.081

50

57

Environmental conservation costs to total costs ratio(Unit: billion yen)
Category

55-5

Consolidated
Total Costs

Costs

Ratio

Details of Major Environmental Conservation Costs

Page(s) on whichdata is listed

Deodorizing equipment and VOC processing equipment, expansion of wastewater treatment facilities, switch to gas for

60-61

Non-PVC decorative sheets, Biomass materials, product weight reduction, materials for charging photovoltaic cells

48-49

Investment of current period

116.139

1.194

1.03% fuel, insulation installation

R&D cost of current period

35.5562.385

6.71% waterbased inks, etc.

For Environmental Conservation and a Sustainable Society
Table (2) Environmental Conservation Benefits

Category

Category of indicator showing
benefit

Value
2006

2007

Difference

Remarks

Page(s) on
which data
is listed(1) Environmental conservation benefit related to resources input into business activities• Benefit arising from supplied resources

Total energy input
volumeInput volume ofwater

Energy consumption (TJ)

21,26021,810550

All consumed energy was converted into
average value in calories

44-46
58-59

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

0.436

0.464

0.027

Energy increased by 0.27TJ per 100 billion
yen in added value

44-46
58-59

Water usage (in thousands of tons)

17,10018,2001,100

Water supply, industrial water, and well
water

58-59

Added-value unit consumption for
the above (1,000 tons/1 billion yen)

0.351

0.387

0.036

Water increased by 360m3 per 100 million
yen

58-59

2,732

2,662

-70

Total weight of paper, plastic, ink andmetals

58-59

12.6

12.9

0.3

Ratio of unwanted materials that are main
raw materials

52-53
58-59

Supplied amount (in thousands of
Input volume oftons)main raw materials(paper, plastic,
Amount of undesired materials
metal, etc.)
generated/supplied (%)(2) Environmental conservation benefit related to waste or environmental impact originating from business activities

Emissions to theairWater quality

Water emission
volumeVolume of green
gas emissions

55-6

SOx emissions (tons)

17

85

68

Calculated from supplied energy

47
58-59

NOx emissions (tons)

774

794

20

Calculated from supplied energy

47
58-59

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

11,227

11,100-127

Including 12 substances covered by the
PRTR report

47
58-59

COD discharge (tons)

54.3

56.7

2.4

Calculated from the amount of discharged
water and average concentration

47
58-59

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

0.0

0.0

0.0

Emissions of 2 substances, ethylene
glycol and phenol

47

Generated undesired materials(1,000 tons)

482.1

453.3

-28.8

Including undesired materials other thanmain raw materials

52-53
58-59

Discharged waste (1,000 tons)

92.3

84.7

-7.6

Total waste subcontracted to waste
disposal companies

52-53
58-59

Added-value unit consumption for
the above (ton/1 million yen)

0.189

0.180

-0.009Reduction of 9 kg per JPY1 million ofadded value

52-53
58-59

Recycle rate (%)

98.9

99.0

0.1

Not achieved for waste plastics (95.8%)
and glass (75.7%)

52-53
58-59

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

2,084

2,253

169

Total for 30 substances reported

47

Emissions of greenhouse gasses(1,000 t-CO2)

1,057

1,025

-32

Total GHG including emissions by
incinerators and drying furnaces

44-46
58-59

Added-value unit consumption for
the above (ton-CO2/1 billion yen)

21.7

21.8

0.1

Increased 1 tons of emissions per 100
million yen added-value

44-46
58-59

For Environmental Conservation and a Sustainable Society
Table (2) Environmental Conservation Benefits

Category

Category of indicator showing
benefit

Value
2006

2007

Page(s) on
which data
is listed

Remarks

Difference(2) Environmental conservation benefit related goods and services produced from business activities• Benefit related to goods produced by business activities
CO2 emissions after
product shipment

CO2 emissions (1,000 t-CO2)

361.4

291.1

-70.3

Emitted at incineration and recycling ofused containers and packaging

50

CO2 emissions / volume of products(t-CO2/t)

1.25

1.12

-0.13

Reduction of CO2 emissions of 0.13t per
1t of product50(3) Other environmental conservation benefit• Benefit related to the environmental impact of transportation
Energy usage amount during
shipment of goods, etc.

33,50032,000-1,500

Energy usage during transport as freight

46

Energy usage amount duringtransport/gross sales (kl/JPY1
billion)

0.215

0.198

-0.0170.17 kl reduction per JPY100 million of
sales

46

Table (3) Economic Benefits of Environmental Conservation Activities(Unit: billion yen)
Economical benefits of environmental conservation activities

Amount2006

2007

Difference

265.800

315.400

49.600Remarks

Page(s) on
which data
is listed(1) Increased sales• Economic benefit of R&D costs
Sales of environmentally conscious
products

Sales up 18.7% over 2006

48-49

(2) Increased income• Benefit of resource recycling costs income from recycling undesired materials
income from recycling undesired
materials

3.086

3.816

0.729

Increased due to increase in used paper
price

52-53

0.274

0.004

JPY4 million increase over the previous
fiscal year

52-58(3) Cost saving• Benefit corresponding to resource circulation costs
Saving disposal costs by resource
conservation

55-7

0.270

For Environmental Conservation and a Sustainable Society
Evaluation of 2007 Environmental Accounting Performance Data
Environmental conservation cost and environmental conservation activities(1) Investment in environmental facilities increased by JPY112 million (10.4%) over the previous
year due to the switch to liquid natural gas (LNG) at the Okayama Plant and other measurestaken.
(2) Business area costs decreased in comparison to the previous year, due to reduced depreciation
expenses and cost cutting.

Environmental conservation benefit(1) A JPY160 million investment (JPY1.34 billion over the past three years) in solvent VOC collection and elimination facilities was made in 2007, reducing atmospheric emissions.
(2) There were increases in the overall energy input, water input, and SOx / NOx emissions due toan increase in the data tabulation range resulting from the construction of new facilities and our
M&A activities. Similarly, when the data tabulation range is matched up with the previous year,
our energy conservation and resource conservation efforts have resulted in reductions of GHG
emissions of 524TJ, 2.420 million m3, 0t, and 25t, respectively.
(3) Per-unit energy and water usage worsened in comparison to last year due to the increase in thedata tabulation range, resulting in a worsening in specific consumption from the output since theprevious fiscal year.
(4) As a result of measures such as the optimization of distribution and transport routes, the shift intransport modes, and the introduction of hybrid vehicles, the amount of energy used duringtransport has been reduced, broadly improving specific consumption.

Economic benefit of environmental conservation measures(1) Sales of environmentally conscious products broadly exceeded targets due the increase insales of display products.
(2) Income from the recycling of undesired materials increased in comparison with the previous
year, due to market recovery as well as better separation and collection resulting in an increasein valuable materials recovered.
(3) The cost reduction benefit is calculated according to “Environmental Accounting Calculation
Bases” (7) noted on the previous page. An economic benefit of JPY274 million due to improvements in gaining valuable materials through recycling and other means.

Issues Henceforth(1) Make further improvements in eco-efficiency through “Manufacturing 21” activities and eliminate
all waste from production processes.
(2) Continue fuel conversions (fuel oil
gas emissions.

55-8

gas, LPG

LNG) so as to improve per unit greenhouseFor Environmental Conservation and a Sustainable Society
ISO14001 / Eco Action 21 Certificates

ISO14001 Certificates

Site

Date Registration*

Organization

Okayama Plant, Information Media Supplies Operations

Nov. 1997

JIA-QA*

Mihara Plant, Display Components Operations

Jul. 1998

DNV*

DNP Facility Services*

Apr. 2000

AJA*

Okayama Plant, Lifestyle Materials Operations

Jul. 2000

JIA-QADT Fine Electronics*

Mar. 1997

JACO*

Sayama Plant, DNP Technopack

Dec. 2001

DNV

Kobe Plant, Lifestyle Materials Operations

Jan. 2002

JIA-QATokyo Plant, The Inctec

Jan. 2002

JCQA*

Kansai Plant, The Inctec

Jan. 2002

JCQA

Utsunomiya Plant, The Inctec

Jan. 2002

JCQA

Ushiku Plant, IPS Operations

Mar. 2002

DNV

DNP Technopack Tokai

Mar. 2002

JCQA

Tien Wah Press (Singapore)May 2002

PSB*

Chikugo Plant, DNP Nishinippon

Jun. 2002

DNV

Kyoto Plant, Electronics Devices Operations

Jul. 2002

DNV

Sayama Plant, Information Media Supplies Operations

Oct. 2002

JIA-QADNP Media Create Kansai

Mar. 2003

JIA-QA

Kurosaki Plant No. 2, DNP Precision Devices

Jan. 2004

JCQA

Tokyo Plant, Lifestyle Materials Operations

Jan. 2004

JIA-QA

Kamifukuoka Plant, Electronics Devices Operations

Mar. 2004

AJA

Fukuoka Plant, DNP Nishinippon

Jun. 2004

DNV* Indicates the first registration date.
* DNP Facility Services acquired the certificate as part of a comprehensive management system for quality, environment, labor safety and food sanitation; the initial
registration organ was JIC-QA (JIC Quality Assurance Ltd.)* DT Fine Electronics registered as part of Toshiba Corporation (Semiconductor Company) (Kawasakishi, Kanagawa Pref.)* [JIA-QA]: Japan Gas Appliances Inspection Association, QA Center* [DNV]: Det Norske Veritas AS (Norway)* [AJA]: Anglo Japanese American Registrars Ltd.
* [JACO]: Japan Audit and Certification Organization for Environment and Quality* [JCQA]: Japan Chemical Quality Assurance Ltd.
* [PSB]: PSB Certification Pte Ltd. (Singapore)

55-9

For Environmental Conservation and a Sustainable Society
ISO14001 / Eco Action 21 Certificates

ISO14001 Certificates

Site

Date Registration* Organization

Itabashi Area, DNP Logistics

Oct. 2004

AJA

Tokyo Plant, DNP Ellio

Jan. 2005

LRQA*

Osaka Plant, DNP Ellio

Jan. 2005

LRQA

Warabi Plant, IPS Operations

Mar. 2005

DNV

Nara Plant, DNP Data Techno Kansai

Jun. 2005

DNV

Tien Wah Press (Johor Bahru)

Nov. 2005

PSB

Otone Plant, Display Components Operations

Mar. 2006

DNV

Kashiwa Plant, DNP Techno Polymer

Mar. 2006

JACO

Kansai Plant, DNP Techno Polymer

Mar. 2006

JACO

DNP Photomask Europe

Apr. 2006

CISQ*

DNP Fine Chemicals

Mar. 1997

JCQA

Akabane Area, DNP Logistics

Dec. 2006

AJA

Kashiwa Plant, DNP Techno Film

Mar. 2007

DNV

Izumizaki Plant, DNP Techno Film

Mar. 2007

DNV

DNP IMS Odawara

Mar. 2007

JQA*

DNP Technopack Yokohama Yokohama Plant

Dec. 2007

JIA-QASite

Date* Registration

Organization

Tokyo Head Office, Dai Nippon Trading

Jan. 2006

IGES** [LRQA]: Lloyd’s Register Quality Assurance Ltd.
* [CISQ]: Federazione Certificazione Italiana dei Sistemi Qualit Aziendali (Italy)* [JQA]: Japan Quality Assurance Organization

Eco Action 21 Certificates* [IGES]: The Institute for Global Environmental Strategies

55-10For Environmental Conservation and a Sustainable Society
Environmental Education Overview

Time of year

No. inattendancein 2007 (Total
Participants)

All new
recruits

When
joining thecompany

580 persons(4,790 persons)

1999

Technicians

At irregularintervals

66 persons(451 persons)

Network
Leaning

Environmental
Issues andBusiness(required)

Environmental information to be used whenpresenting customers
with proposals concerning environment oriented
businesses

2000

Employeeswith morethan 2 years
experiencein thesales andplanning
divisions

Employees
candecide forthemselves

1,567
persons(13,049
persons)

Correspondence
Course(optional)

Beginners class on ISO
14001 and the LCA Program

Scheduledevery year

All employees of the
DNP Group

Semiannual

Environmental Issues of
the Group(required)

Domestic & international
trends in environmental
issues, revisions in environmental laws, degreeof achievement of environmental targets, newtargets, issues concerning specific sites

1993

Site members andfactory
related personnel ofthe operations' groupenvironmental
committee

Twice a year
upon issuingthe EcoReport

Type ofTraining

CourseName

Description

Education
for New
Recruits

Environmental Activity
Overall (required)

Basic environmental
knowledge and conservation efforts of the DNP
Group

1994

Technical
SeminarEnvironment(optional)

Environmental laws andregulations

Eco-report
Training

55-11

Held inEligibility

For Environmental Conservation and a Sustainable Society
Results of Environmental Issue Resolution Efforts by Year1972

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

1990

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

1992

Establishes the DNP Group Corporate Pledge and Code of
Conduct for DNP Group Employees
Establishes the Eco-Plan Promotion Targets, the fundamental
voluntary plan based on the Environmental Declaration of theCodes of Conduct, and starts activities by 4 sub-committees

2003

Environmental Report Division receives the "6th Environmental Report Grand Prize" for superior reporting
Acquisition of ISO 14001 certification by: Advanced
Colortech, Tokyo Plant, Decorative Interiors Operations,Kamifukuoka Plant, Electronics Devices Operations
Commercial Printing Operations, DNP Media Create Kansai,
DNP Trading acquire FSC-CoC certification, while Packaging
Operations acquires PEFC-CoC certification.
Two types of fused thermal transfer materials of the Information Media Supplies Operations receive EPD "Type III"
environmental labeling certification and registration.

2004

The "14th Global Environment Grand Prize" awarded by the
Minister for the Environment
The "7th Environmental Report Prize" awarded for Excellence
Fukuoka Plant, DNP Nishinippon, DNP Logistics, DNP Erio
(Tokyo and Osaka Plants), Warabi Plant, BF Operations acquire ISO14001.
Eco-Report System implemented at overseas sites.

2005"8th Environmental Report Prize / Sustainability Report
Prize” awarded for Excellence
DNP Data Techno Kansai, Johore Bahru Plants, Tien Wah
Press, Otone Plants, Display Components Operations,
DNP Techno Polymer (Kashiwa and Kansai Plants) acquire
ISO14001.
Ichigaya Publication Printing Operations, DNP Tohoku,
Yokohama Plant, Packaging Operations acquire FSCCoC
certification, and DNP Tokai acquires PEFC-CoC certification.

1993

Starts the Eco-Report System, which is part of the DNP Groupenvironmental management system

1994

Remodels and expands the Environment Department into theEnvironment & Product Liability Department to strengthen ourefforts towards environmental issues, including taking responsibility for the disposal of products we produce

1995

DNP wins the International Trade and Industry Minister’s Prizein the "Fourth Global Environmental Awards", which commend
companies and groups that contribute to the conservationof the global environment. (The Awards were established in1991 by the Japan Industrial Journal and the Fuji Sankei Communications Group, with special support by WWF Japan andsponsorship by the Ministry of the Environment, the Ministry of
the Economy, Trade and Industry, and the Japan Federation of
Economic Organizations.)

1996

Begins performing the Eco-Audit, the internal environmental
audit performed by the Eco-Plan Promotion Office to upgrade
the Eco-Report System

2006

DNP Photomask Europe, Akabane Area, DNP Logistics,
DNP’ Techno Film (Kashiwa Plant and Izumisaki Plant), DNPIMS Odawara acquire the certification of ISO14001.

1997

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

2007

1998

Mihara Plant, Display Components Operations acquires ISO
14001 certification
Publish the DNP Group Environmental Activity Report

2000

The Eco-Plan Promotion Office is dismantled and replaced withDNP Environmental Committee to strengthen the system forpromoting environmental activities
The affiliate DNP Facility Services becomes the first in theworld to be certified as a comprehensive system with quality,
environment, office safety and HACCP
Okayama Plant, Decorative Interiors Operations acquires ISO
14001 certification"PRTR 2007 Awards" PRTR Honorable Mention (Tsuruse
Plant)DNP Gotanda Building wins “Green Grand Prize” in the
Shinagawa-ku “Green Award System.”
DNP Technopack Yokohama (Yokohama Plant) and DNPFine Chemicals acquire ISO14001 certification.
DNP Hokkaido and DNP Data Techno Kansai acquire FSCCoC certification, and DNP Hokkaido also acquires PEFCCoC certification.

2001

DNP Tokai, and Sayama Plant, DNP Technopack acquires ISO
14001 certification

2002

DNP Tokai acquires FSC-CoC certification
Acquisition of ISO 14001 certification by: Kobe Plant, Decorative Interiors Operations, The Inctec (Tokyo, Kansai, andUtsunomiya Plants), Ushiku Plant, BF Operations, DNP
Technopack Tokai, Tien Wah Press, Chikugo Plant, DNP Nishinippon, Kyoto Plant, Electronics Devices Operations, Sayama
Plant, Information Media Supplies Operations, Ono Plant, DNPMedia Create Kansai

55-12

For Environmental Conservation and a Sustainable Society
DNP's Own Environmental Management System
Step in Eco-Audit and Contents
Preparation and notificationof annual plan

<Eco-Audit Contents>

Promoted by Head Office

Auditing team
Lead Auditor

Formation of auditing team

Auditor
Adjustment of auditing schedule

Auditing team, Sites subject to audit

Preparation of audit notification

Auditor Qualification

Eco-Audit Notification

Auditing team, Sites subject to audit

Notification to sites ofimpending audit(1 month in advance)

AuditorLead Auditor• Person designated or selected from auditors by the Head Office Promotions Office
Manager

Auditors• Persons having qualification who completed special training course.
• Other persons recognized as being suitableby the Promotions Office Manager

Performance of eco-audit

Auditing team

Auditor's pre-audit meeting

Allocation of roles, briefing on the site environment,
confirmation of deficiency notices in the previous audit

Compliance Audit(1) Document Audit• Site location• Type and number of statutory facilities• Types of waste• Energy Consumption• Exhaust and wastewater channels• Changes in facilities, production processes since the last audit• Applicable laws
• State of improvement of notifications ofdeficiencies in previous audit• State of submission of statutory notifications, reports, and changes• Frequency of measurement, validity ofmeasured data, traceability of clata• Changes in management personnel due
to internal transfers(2) On-site Inspections

Confirmation of applicable standards, scope of audit,
auditor assignment, types of deficiency notifications,warnings during the audit, confirmation of documentation

Open Meeting(1) Compliance audit(Air, water, sewer, noise, vibration, odors,
qualified personnel, energy conservation, waste)(2) Operations audit(Reduction of waste, global warming prevention,
reduction of chemical substances)Document Checking

Record of corrections
and measures
performed sheetsfrom previous audit

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

Site Confirmation

Preparation of Audit Report and Requests for Improvement Measures

Auditor's Meeting

Description of audit results and content of requests for improvements

Closing Meeting

Audit Report and Requests for
Improvement Measures

Completion of Eco-Audit

57-1

DNP Group
Eco-Audit
checklist

Correction Measures
Performed sheet

Acceptance of Audit Reportand Requests for
Improvement Measures

Audited site manager

Preparation of Correction
Measures Performed sheet

Audited site

• Site location and relationship with surrounding sites• Conformity to statutory facility document
audit (type, number, scale, etc.)• State of management of individual facilities and equipment, existence ofabnormalities• Emergency containment in case of abnormality or emergency• Site picture taking• Appropriateness of actual work performed

Operations Audit(1) Confirmation of validity of site
policy and established targets• Performance in the previous term
• Consistency with DNP Group policies• Continuity with last year's results• Validity of established targets(2) Confirmation of the validity of
implementation programs• Consistency between targets and programs• Effectiveness of the programs• Possibilities of the programs• Possibilities of fulfillment of the programs• Promotion system and schedule(3) Confirmation of the achievementof implementation items,
performance and targets

Approval

Audited Site Promotions Office Manager

Approval

Audited Site Environmental Committee Chair • Records of activities performed

Approval

Auditing Team Chief Auditor

Approval

Head Office Promotions Office Manager

Approval

Head Office Environmental Committee Chair• State of progression of the programs• Effects of the programs and performance
regardin indicators• Achievement of targets

For Environmental Conservation and a Sustainable Society
DNP's Own Environmental Management System

Features Regarding the Expertise and Independence of Eco-Audits

Type of Audit

Expertise of auditors regarding products
and manufacturing processes

Independence of auditors (sites)

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

Types of Notifications and Corrections Issued in the Eco-Audit

57-2

Types of Notifications

Improvement required

Improvement required

Submission of a written description of correction measures performed or
improvement plans

Improvement consideration & examination

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

For Environmental Conservation and a Sustainable Society
Environmental Risk Management
Legal compliance situation
While we make all efforts to comply with environmental laws and regulations, over the past three years
we have experienced 4 incidents of water quality abnormalities in wastewater, 1 case of inadequacy ofqualified personnel, and 1 case of odor in excess of standards. There are no ongoing legal disputes involving environmental issues. We have unfortunately had some complaints from areas neighboring ourplants concerning noise and odors. Whenever we receive such complaints, we launch a thorough investigation into the cause of the problem and work to make improvements to prevent a recurrence.

|

July 27, 2005/ Ushiku Plant, DNP Data Techno

An inspection plate cover accidentally came off of a wastewater pipe, discharging wastewater, but thewastewater gate was immediately closed and the wastewater pumped out. Although the wastewatercontained no toxins, about 500 liters escaped into public water, so we filed an accident report with theauthorities. We changed the method for fastening the inspection plate cover under the guidance of theauthorities.

|

February 9, 2006/ Ushiku Plant, DNP Data Techno

An on-site inspection by the public authorities revealed that the BOD and COD values of the plant's final
effluent were in excess of the standard. The cause of this turned out to be an excess volume of injections of methanol used in testing to improve our sludge processing ability. Under the guidance of theauthorities we took measures to prevent recurrence by installing a control system that adjusts theamount of methanol injected based on the wastewater throughput burden.

|

February 24, 2006/ Tanabe Plant, DNP Technopack Kansai

Despite being a Type 1 Designated Electricity Management Plant, an Energy Manager had not yet been
appointed. Therefore, the authorities issued a warning upon conducting an on-site inspection. We reported the appointment of an Energy Manager the following March, which was acknowledged by theauthorities.

|

October 17, 2006/ Tanabe Plant, DNP Technopack Kansai

An onsite inspection by the authorities revealed that the BOD value for water discharged into the sewer
was above the standard. The cause was the inadvertent discharge of dampening water (containing alcohol) used cyclically in the planographic printing process into the sewer instead of the collection tank.
We took steps to prevent recurrence by thoroughly re-training the workers handling the changing of thedampening water, and fastening an operating bulb that cannot be opened up easily.

57-3

For Environmental Conservation and a Sustainable Society
Environmental Risk Management
Legal compliance situation|

February 14, 2007/ Izumizaki Plant, DNP Technopack

An onsite inspection by the authorities revealed that the BOD value for water finally discharged into thesewer was above the standard. Further measurement was conducted but no abnormal values were noted. The authorities ordered us to continue to look into the cause of the initial excess BOD measurement
so as to prevent recurrence.

|

February 26, 2007/ Ichigaya Plant, Ichigaya Publication Printing Operations

An onsite inspection by the authorities of odor levels revealed that emission concentrations from offsetting rotary presses at two locations were above the standard. The cause was fissures that developed in
the deodorization equipment due to heat exhaustion, or possibly that the deodorizing medium had degraded. The fissures were repaired, and the medium replaced. We revised the inspection criteria for the
deodorization equipment for the early detection of abnormalities, so as to prevent recurrence.

57-4

For Environmental Conservation and a Sustainable Society
Current Status of Environmental Impact
Eco-Efficiency
The DNP Group evaluates eco-efficiency using JEPIX*. We improved our environmental impact pointscore and increased our environmental efficiency in FY2007 by reducing VOC (Volatile Organic Chemical) emissions, greenhouse gas emissions, and landfill waste in comparison with the previous fiscal
year.
Trends in JEPIX Eco-Efficiency

10

7.5

62

4

0

39

'01

105

119 120
100

85
5.6

6

2

59-1

110

9.5

8

140

Eco-Efficiency

EIP

80
4.5

4.6

48

4.0 6040
20'02 '03 '04

'05

'06

'07

0

Eco-Efficiency (Output/EIP)

Eco-Points (1 billion EIP)

12 11.3*[JEPIX]: Environmental Policy Priorities Index for Japan is a single index environmental evaluation system developed in Japan, which calculates thedegree of overall environmental impact according to a single numericvalue expressed as Eco-Points. The JEPIX Forum for the application of
the JEPIX methodology was held as part of the Ministry of Education,
Culture, Sports, Science and Technology’s COE Project (International
Christian University), and our company participated in the project.

【Comparative Table with GRI Guidelines】
DNP Group CSR Report 2008 is edited by referring the GRI Sustainability Reporting Guidelines, Version 3.0.
Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

1. Strategy & Profile
Statement from the most senior decision-maker of
1.1

the organization (e.g., CEO, chair, or equivalentsenior position） about the relevance ofWebsites
P2~3：Top Message

sustainability to the organization and its strategy.
1.2（Message from Management）
Corporate Information
DNP Annual Report 2007

Description of key impacts, risks, and opportunities. None

Quarterly Financial Report
DNP Annual Report 2007

2. Organizational Profile
Websites（Corporate Information）
2.1

Name of the organization.

P5：DNP Corporate Profile

Quarterly Financial Report
Corporate Information
DNP Annual Report 2007
Websites（Corporate Information）

2.2

Primary brands, products, and/or services.

P5：Results of Each Segment

Quarterly Financial Report
Corporate Information
DNP Annual Report 2007

Operational structure of the organization, including
2.3

main divisions, operating companies, subsidiaries,

Websites（Corporate Information）
P12~13：Corporate Governanceand joint ventures.

Quarterly Financial Report
DNP Annual Report 2007
Websites（Corporate Information）

2.4

Location of organization's headquarters.

P4~5：DNP Corporate Profile

Corporate Information
DNP Annual Report 2007

Number of countries where the organization
2.5

operates, and names of countries with either major
operations or that are specifically relevant to theP62：Integrity at Our Overseas Operations

Websites（Corporate Information）
Corporate Information

sustainability issues covered in the report.
2.6

Nature of ownership and legal form.

2.7

sectors served, and types of

None

Quarterly Financial Report
DNP Data Book 2007

Markets served (including geographic breakdown,
P5：Results of Each Segment

DNP Annual Report 2007

customers/beneficiaries）.
Scale of the reporting organization, including:* Number of employees;* Net sales (for private sector organizations） or net
2.8

revenues (for public sector organizations）;* Total capitalization broken down in terms of debt

P4~5：2007 Financial Data/DNP Corporate
Profile/Results of Each Segment

Quarterly Financial Report
DNP Annual Report 2007
DNP Data Book 2007

and equity (for private sector organizations）; and* Quantity of products or services provided.
Significant changes during the reporting period
regarding size, structure, or ownership including:* The location of, or changes in operations,
2.9

including facility openings, closings, and expansions;and

Not applicableNot applicable* Disclosure required in case of any
changes* Changes in the share capital structure and othercapital formation, maintenance, and alteration
operations (for private sector organizations）.
2.10

Awards received in the reporting period.

P64：2007 CSR Awards and Evaluations

Websites（Award record）

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

3. Report Parameters
REPORT PROFILE
3.1

Reporting period (e.g., fiscal/calendar year） for
information provided.

P1：Editorial Policy

None

3.2

Date of most recent previous report (if any）.

August 2008

None

3.3

Reporting cycle (annual, biennial, etc.）

Back spin：Next issue

None

Back spin

None

P7：Themes of This Year's Report

None

3.4

Contact point for questions regarding the report orits contents.

REPORT SCOPE AND BOUNDARY
Process for defining report content, including:* Determining materiality;
3.5* Prioritizing topics within the report; and* Identifying stakeholders the organization expects
to use the report.
Boundary of the report (e.g., countries, divisions,

3.6

3.7

P1：Editorial Policy

subsidiaries, leased facilities, joint ventures,

Further information：State for Environmental

suppliers）.

DisclosureState any specific limitations on the scope orboundary of the report

None

P1：Editorial Policy

None

Not applicableNot applicable

Basis for reporting on joint ventures, subsidiaries,
leased facilities, outsourced operations, and other
3.8

entities that can significantly affect comparability
from period to period and/or between
organizations.
Data measurement techniques and the bases of

3.9

calculations, including assumptions and techniques

P10~11：FY2008 Goals

underlying estimations applied to the compilation of P60~61：2007 Targets and Results

None

the Indicators and other information in the report.
Explanation of the effect of any re-statements of
information provided in earlier reports, and the
3.10

reasons for such re-statement (e.g.,
mergers/acquisitions, change of base

Not applicableNot applicableNot applicableNot applicable

None

Websites（CSR/Environment）

years/periods, nature of business, measurement
methods）
Significant changes from previous reporting periods
3.11

in the scope, boundary, or measurement methods
applied in the report.

GRI CONTENT INDEX
3.12

Table identifying the location of the Standard
Disclosures in the report.

ASUURANCE
Policy and current practice with regard to seeking
external assurance for the report. If not included in
the assurance report accompanying the
3.13

P63：Independent Review Report Comments by ansustainability report, explain the scope and basis of Independent Institution
any external assurance provided. Also explain therelationship between the reporting organization andthe assurance provider(s）.

P65：Third Party Opinion

None

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

4. Governance, Commitments, and Engagement
GOVERNANCE
Governance structure of the organization, including
4.1

committees under the highest governance body
responsible for specific tasks, such as setting

P12~13：Corporate Governance

DNP Annual Report 2007

P12~13：Corporate Governance

DNP Annual Report 2007

strategy or organizational oversight.
Indicate whether the Chair of the highest
governance body is also an executive officer (and, if
4.2

so, their function within the organization's
management and the reasons for thisarrangement）.
For organizations that have a unitary board

4.3

structure, state the number of members of thehighest governance body that are independent

P12~13：Corporate GovernanceWebsites（Corporate Information）
DNP Annual Report 2007

and/or non-executive members.
Mechanisms for shareholders and employees to
4.4

provide recommendations or direction to thehighest governance body.

P12~13：Corporate Governance
P29：Enhancing Labor-Management Consultations

DNP Annual Report 2007

Linkage between compensation for members of thehighest governance body, senior managers, and
4.5

executives (including departure arrangements）, and P12~13：Corporate Governance

DNP Annual Report 2007

the organization's performance (including socialand environmental performance）.

4.6

Processes in place for the highest governance bodyto ensure conflicts of interest are avoided.

P12~13：Corporate Governance

DNP Annual Report 2007

None

None

Process for determining the qualifications andexpertise of the members of the highest
4.7

governance body for guiding the organization's
strategy on economic, environmental, and social
topics.
Internally developed statements of mission or

4.8

values, codes of conduct, and principles relevant toeconomic, environmental, and social performanceand the status of their implementation.

P6~7：First and Foremost, Acting with Integrity
Creating New Values

DNP Annual Report 2007

Further information：DNP Group Code of Conduct

Procedures of the highest governance body foroverseeing the organization's identification andmanagement of economic, environmental, and4.9

social performance, including relevant risks andP12~13：Corporate Governance

DNP Annual Report 2007

None

None

opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct,
and principles.
Processes for evaluating the highest governance4.10

body's own performance, particularly with respect
to economic, environmental, and social
performance.

COMMITMENTS TO EXTERNAL INITIATIVES
P12~13：Corporate Governance
Explanation of whether and how the precautionary
4.11

approach or principle is addressed by theorganization. Article 15 of the Rio Principles
introduced the precautionary approach.

P14~15：Compliance with Laws and Social Ethics
P16~17：Management Supporting Value Creation
P18~23：[Special Report] Solution for Food

DNP Annual Report 2007

P48：Offering Environmentally-conscious Products
P49~50：Environmentally-Conscious Product
ExampleExternally developed economic, environmental, and Back spin：The Global Compact
4.12

social charters, principles, or other initiatives to【CSR Report 2007】 P11：Endorsement of thewhich the organization subscribes or endorses.

Global Compact

Websites（Top site）

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

4. Governance, Commitments, and Engagement
COMMITMENTS TO EXTERNAL INITIATIVESMemberships in associations (such as industry
associations） and/or national/international
advocacy organizations in which the organization:
4.13* Has positions in governance bodies;* Participates in projects or committees;* Provides substantive funding beyond routine

P10~11：FY2008 Goals (Realization of a'universal society'

None【CSR Report 2005】P31~32：Universal Design

membership dues; or* Views membership as strategic.
STAKEHOLDER ENGAGEMENT
4.14

4.15

List of stakeholder groups engaged by theBasis for identification and selection of
stakeholders with whom to engage.
Approaches to stakeholder engagement, including

4.16

frequency of engagement by type and by
stakeholder group.
Key topics and concerns that have been raised

4.17

None

organization.

through stakeholder engagement, and how theP8：Communication
P24~27：Roundtable Discussion

None

P65：Third Party Opinion
P36･39･50：Third-Party Commentary
P32：Industrial Health Physician Commentary
P20･23･31･32･33･35･40･45･49：Employee

None

Commentary
Further information：Examples of Communications
with Different Types of Stakeholder
Noneorganization has responded to those key topics andconcerns, including through its reporting.

5. Management Approach and Performance Indicators（○：Core indicators）
Economic
ECONOMIC PERFORMANCE
Direct economic value generated and distributed,
including revenues, operating costs, employee○EC1compensation, donations and other community

None

DNP Annual Report 2007

None

None

investments, retained earnings, and payments tocapital providers and governments.
Financial implications and other risks and○EC2opportunities for the organization's activities due
to climate change.

○EC3

○EC4

Coverage of the organization's defined benefit plan
obligations.
Significant financial assistance received fromgovernment.

None

DNP Annual Report 2007
Quarterly Financial Report

None

None

None

None

MARKET PRESENCE
Range of ratios of standard entry level wage
EC5

compared to local minimum wage at significant
locations of operation.
Policy, practices, and proportion of spending on○EC6locally-based suppliers at significant locations ofoperation.

Further information：Social responsibilities in the
supply chain

Websites（Material procurement）

Procedures for local hiring and proportion of senior○EC7management hired from the local community at

Further information：Personnel dataNonesignificant locations of operation.
INDIRECT ECONOMIC IMPACTS
Development and impact of infrastructure○EC8investments and services provided primarily for
public benefit through commercial, in-kind, or pro

P36~41：As a Good Corporate Citizen

Websites（Gallery）
DNP Annual Report 2007

bono engagement.
EC9Understanding and describing significant indirect

Further information：Environmental Accounting

economic impacts, including the extent of impacts. （Will be released in August）

None

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Environmental
MANAGEMENT APPROACH
P6：DNP Group Code of Conduct
EN

Organization-wide policies that defines theorganization's overall commitment

P55：Comments of the Director in Charge of theEnvironment

None

Further information：DNP Group Code of Conduct
Further information：Environmental PolicyEN

The most senior position with operational
responsibility

P55~56：Environmental Management Structure

DNP Annual Report 2007

MATERIALS
○EN1

○EN2

Materials used by weight or volume.
Percentage of materials used that are recycled
input materials.

P58~59：Current Status of Environmental Impact None

None

None

ENERGY

○EN3

○EN4

EN5

Direct energy consumption by primary energy
source.

Indirect energy consumption by primary source.
Energy saved due to conservation and efficiency
improvements.

P44~46：Greenhouse Gas Emissions Reduction
P58~59：Current Status of Environmental Impact None
P60~61：2007 Targets and Results

P58~59：Current Status of Environmental Impact None

Further information：Environmental Accounting

None

None

None

None

None

Initiatives to provide energy-efficient or renewable
EN6

energy based products and services, and reductions
in energy requirements as a result of these
initiatives.

EN7

Initiatives to reduce indirect energy consumption
and reductions achieved.

WATER
○EN8
EN9

EN10

Total water withdrawal by source.
Water sources significantly affected by withdrawalof water.

Percentage and total volume of water recycled andreused.

Further information：Reuse of undesired materials None
Not applicableNot applicable

P53：Use of Recycled Materials
P58~59：Current Status of Environmental Impact None
Further information：Reuse of undesired materials

BIODIVERSITY
Location and size of land owned, leased, managed○EN11

in, or adjacent to, protected areas and areas of high Not applicableNot applicablebiodiversity value outside protected areas.
Description of significant impacts of activities,○EN12

products, and services on biodiversity in protectedareas and areas of high biodiversity value outside

Not applicableNot applicable【CSR Report 2007】 P56：Biotope of Sagami Yoki

None

protected areas.
EN13
EN14

EN13 Habitats protected or restored.
Strategies, current actions, and future plans for【CSR Report 2006】 P80：Efforts Supporting

managing impacts on biodiversity.

Biodiversity

None

Number of IUCN Red List species and national
EN15

conservation list species with habitats in areas

Not applicableNot applicableaffected by operations, by level of extinction risk.

○EN16

Total direct and indirect greenhouse gas emissions

P44~47：Greenhouse Gas Emissions Reduction

by weight.

P58~59：Current Status of Environmental Impact

None

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Environmental
EMISSIONS, EFFLUENTS, AND WASTE
○EN17

○EN18

○EN19

○EN20

Other relevant indirect greenhouse gas emissions
by weight.
Initiatives to reduce greenhouse gas emissions andreductions achieved.

Emissions of ozone-depleting substances byweight.

NOx, SOx, and other significant air emissions bytype and weight.

None

None

P45：Greenhouse Gas Emissions Reduction
P47：Reduction Environmental Pollutants
Further information：Reduction Environmental

None

Pollutants
P47：Reduction Environmental Pollutants
Further information：Reduction Environmental

None

Pollutants
P47：Reduction Environmental Pollutants○EN21

Total water discharge by quality and destination.

Information and Data：Reduction Environmental
Pollutants

None

Further information：Reuse of undesired materials○EN22

Total weight of waste by type and disposal method.

○EN23

Total number and volume of significant spills.

P52~53：Use of Recycled Materials
Further information：Reuse of undesired materials

None

P57：Environmental Risk Management

None

Not applicableNot applicableNot applicableNot applicable

Weight of transported, imported, exported, or
treated waste deemed hazardous under the terms
EN24of the Basel Convention Annex I, II, III, and VIII, andpercentage of transported waste shippedinternationally.
Identity, size, protected status, and biodiversity

EN25

value of water bodies and related habitats
significantly affected by the reportingorganization's discharges of water and runoff.

PRODUCTS AND SERVICES
P48~50：Offering Environmentally-conscious
Initiatives to mitigate environmental impacts of
EN26

products and services, and extent of impact
mitigation.

Products
P60~61：2007 Targets and Results
Further information：Environmentally-Conscious

None

Products Development Guideline
Further information：Environmental Accounting

EN27

Percentage of products sold and their packaging
materials that are reclaimed by category.

None

None

COMPLIANCE
Monetary value of significant fines and total number○EN28

of non-monetary sanctions for non-compliance withenvironmental laws and regulations.

P57：Environmental Risk Management
Further information：Environmental Risk
Management

None

Further information：Environmental Accounting

TRANSPORT
Significant environmental impacts of transporting
EN29

products and other goods and materials used for

P46：Greenhouse Gas Emissions Reduction

the organization's operations, and transporting

Further information：Environmental Accounting

Nonemembers of the workforce.
OVERALL
EN30

Total environmental protection expenditures andinvestments by type.

Further information：Environmental Accounting

NoneDisclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Labor Practices and Decent WorkMANAGEMENT APPROACH
P6~7：First and Foremost, Acting with Integrity
Creating New Values
LA

Organization-wide policies that defines the

P28：Officer Comment

organization's overall commitment

Further information：DNP Group Code of Conduct

None

Further information：Policies for personnel
measures
LA

The most senior position with operational
responsibility

None

DNP Annual Report 2007

Further information：Personnel data

None

Further information：Personnel data

None

EMPLOYMENT
○LA1

○LA2

Total workforce by employment type, employment
contract, and region.
Total number and rate of employee turnover by age
group, gender, and region.
Benefits provided to full-time employees that areLA3

not provided to temporary or part-time employees, None

None

by major operations.
LABOR/MANAGEMENT RELATIONS○LA4Percentage of employees covered by collective
bargaining agreements.

None

DNP Annual Report 2007

None

None

Minimum notice period(s） regarding significant○LA5

operational changes, including whether it isspecified in collective agreements.

OCCUPATIONAL HEALTH AND SAFETY
Percentage of total workforce represented in formal
LA6

joint management-worker health and safety

Further information：Ensuring Safety at thecommittees that help monitor and advise on

Workplace

DNP Annual Report 2007

occupational health and safety programs.
Rates of injury, occupational diseases, lost days,○LA7

and absenteeism, and number of work-related
fatalities by region.
Education, training, counselling, prevention, and

○LA8

○LA9

Further information：Ensuring Safety at the
Workplace

DNP Annual Report 2007

P33：Health Maintenance Promotion

risk-control programs in place to assist workforce

Further information：Health Maintenancemembers, their families, or community members

Promotion

regarding serious diseases.

Further information：Flexible Work Habits

Health and safety topics covered in formal

Further information：Ensuring Safety at theagreements with trade unions.

Workplace

None

None

TRAINING AND EDUCATION○LA10

Average hours of training per year per employee by
employee category.
Programs for skills management and lifelong

LA11

LA12

None
P35：Practical and Diversified Training Programs

learning that support the continued employability of Further information：Flexible Work Habits
employees and assist them in managing career

Further information：Practical and Diversified

endings.

Training Programs

Percentage of employees receiving regularperformance and career development reviews.

None

DNP Annual Report 2007

P30：Fair Evaluation and Assignment
Further information：Fair Evaluation and

DNP Annual Report 2007

Assignment

DIVERSITY AND EQUAL AOPPORTUNITY
Composition of governance bodies and breakdown○LA13

of employees per category according to gender,
age group, minority group membership, and other

Further information：Personnel data

DNP Annual Report 2007

None

None

indicators of diversity.
○LA14

Ratio of basic salary of men to women by employee
category.

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Human Rights
MANAGEMENT APPROACH
P6~7：First and Foremost, Acting with Integrity
Creating New Values
HR

Organization-wide policies that defines the

P28：Officer Comment

organization's overall commitment

Further information：DNP Group Code of Conduct

DNP Annual Report 2007

Further information：Policies for personnel
measures

HRThe most senior position with operational
responsibility

None

DNP Annual Report 2007

None

None

INVESTMENT AND PROCUREMENT PRACTICES
Percentage and total number of significant○HR1

investment agreements that include human rights
clauses or that have undergone human rights
screening.

Percentage of significant suppliers and contractors P17：Social Responsibility in the Supply Chain○HR2

that have undergone screening on human rights and Further information：Social Responsibility in theactions taken.

None

Supply Chain
Implemented training of The DNP Group
Code of Conduct, including human rights

Total hours of employee training on policies andHR3procedures concerning aspects of human rightsthat are relevant to operations, including theissues, for all employees* of DNP Group.
None*: Directors, auditors, corporate officers,
full-time advisors, staff having

percentage of employees trained.

employment relation, and part-time
employees under contract.

NON-DISCRIMINATION○HR4

Total number of incidents of discrimination andactions taken.

Not applicableNot applicable

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
Operations identified in which the right to exercise○HR5

freedom of association and collective bargaining
may be at significant risk, and actions taken to
support these rights.

P29：Enhancing Labor-Management Consultations【CSR Report 2007】P16~19：[Special Report]

DNP Annual Report 2007

Joint Labor-Management Declaration

CHILD LABOR
Operations identified as having significant risk for○HR6

incidents of child labor, and measures taken tocontribute to the elimination of child labor.

P17：Social Responsibility in the Supply Chain
Further information：Social Responsibility in the
Supply Chain

Websites（Material procurement）

Further information：DNP Group Code of Conduct

FORCED AND COMPULSORY LABOR○HR7

Operations identified as having significant risk for

P17：Social Responsibility in the Supply Chain

incidents of forced or compulsory labor, andFurther information：Social Responsibility in themeasures to contribute to the elimination of forced Supply Chainor compulsory labor.

Websites（Material procurement）

Further information：DNP Group Code of Conduct

SECURITY PRACTICE
Percentage of security personnel trained in theHR8organization's policies or procedures concerning
aspects of human rights that are relevant tooperations.

P6~7：First and Foremost, Acting with Integrity
Creating New Values
Further information：DNP Group Code of Conduct

DNP Annual Report 2007

Further information：Personal and Employment
Guideline

INDIGENOUS RIGHTS
HR9

Total number of incidents of violations involving
rights of indigenous people and actions taken.

Not applicableNot applicableDisclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Society
MANAGEMENT APPROACH
P6~7：First and Foremost, Acting with IntegritySO

Organization-wide policies that defines theorganization's overall commitment

Creating New Values
Further information：DNP Group Code of Conduct

DNP Annual Report 2007

Further information：The DNP Group Social
Contribution PolicySO

The most senior position with operational
responsibility

None

DNP Annual Report 2007

COMMUNITY
Nature, scope, and effectiveness of any programs○SO1

and practices that assess and manage the impacts
of operations on communities, including entering,
operating, and exiting.

P10~11：FT2008 Goals
P57：Environment Risk Management

DNP Annual Report 2007

P60~61：2007 Targets and Results

CORRUPTION○SO2Percentage and total number of business units
analyzed for risks related to corruption.

P14~15：Compliance with Laws and Social Ethics DNP Annual Report 2007
Implemented training of The DNP Group
Code of Conduct, including human rights○SO3

Percentage of employees trained in organization's
anti-corruption policies and procedures.

issues, for all employees* of DNP Group.
P14~15：Compliance with Laws and Social Ethics *: Directors, auditors, corporate officers,
full-time advisors, staff having
employment relation, and part-time
employees under contract.

○SO4

Actions taken in response to incidents ofcorruption.

None

Not applicable (No cases of corruption)

PUBLIC POLICY○SO5

Public policy positions and participation in public

P46~47：Anti-global warming measures at offices

policy development and lobbying.

and homes

None

Total value of financial and in-kind contributions toSO6political parties, politicians, and related institutions None

None

by country.
ANTI-COMPETITIVE BEHAVIOR
Total number of legal actions for anti-competitive
SO7

behavior, anti-trust, and monopoly practices and

Not applicableNot applicableof non-monetary sanctions for non-compliance with Not applicableNot applicable

their outcomes.
COMPLIANCE
Monetary value of significant fines and total number○SO8

laws and regulations.
Product Responsibility
Management Approach
P6~7：First and Foremost, Acting with Integrity
PR

Organization-wide policies that defines theCreating New Values

organization's overall commitment

Further information：DNP Group Code of Conduct

DNP Annual Report 2007

Further information：Quality Policy
PR

The most senior position with operational
responsibility

None

DNP Annual Report 2007

Disclosure

Description

Related Pages on DNP Group CSR Report 2008

Other media(Posted all information on DNP's Websites)

5. Management Approach and Performance Indicators（○：Core indicators）
Product Responsibility
CUSTOMER HEALTH AND SAFETY
Life cycle stages in which health and safety impacts○PR1of products and services are assessed forFurther information：Delivering products andimprovement, and percentage of significant

services with the highest standard of quality inproducts and services categories subject to suchthe worldNoneprocedures.
Total number of incidents of non-compliance with
PR2

regulations and voluntary codes concerning healthand safety impacts of products and services during

Not applicableNot applicable

their life cycle, by type of outcomes.
PRODUCT AND SERVICE LABELING

Type of product and service information required by○PR3

procedures, and percentage of significant products
and services subject to such information
requirements.

P48：Offering Environmentally-conscious Products
P49~50：Environmentally-Conscious Pr5oduct6
ExampleDNP Annual Report 2007

P50：Environmental Label Certification
P60~61：2007 Targets and Results

Total number of incidents of non-compliance with
PR4

regulations and voluntary codes concerning productand service information and labeling, by type of

None

None

outcomes.

PR5

Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction.

P9：Communication
Further information：Examples of Communication

None

with Different type of Stakeholder

MARKETING COMMUNICATIONSPrograms for adherence to laws, standards, and○PR6

voluntary codes related to marketing
communications, including advertising, promotion,

None

None

Not applicableNot applicableand sponsorship.
Total number of incidents of non-compliance with
PR7

regulations and voluntary codes concerningmarketing communications, including advertising,promotion, and sponsorship by type of outcomes.

CUSTOMER PRIVACY
Total number of substantiated complaints regarding 【CSR Report 2007】
PR8

breaches of customer privacy and losses of

P4~5：Efforts toward Creating Highly Secure

customer data.

Personal Information Protection

None

COMPLIANCE
Monetary value of significant fines for non○PR9

compliance with laws and regulations concerning
the provision and use of products and services.

Not applicableNot applicable