Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 [J-GAAP]May 13, 2022

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/eng/
Representative:
Yoshinari Kitajima, President
Contact person:
Naoki Wakabayashi, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
General meeting of shareholders:June 29, 2022
Dividend payment date:June 30, 2022
Securities report issuing date:June 29, 2022
Preparation of earnings presentation material: Yes
Holding of earnings announcement:
Yes (for institutional investors and analysts)*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2022
(April 1, 2021 – March 31, 2022)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2022

1,344,147

0.7

66,78834.8

81,24935.6

97,182

287.4

Year ended March 31, 2021

1,335,439(4.7)

49,529(12.0)

59,907(6.1)

25,088(63.9)

Note: Comprehensive income: Year ended March 31, 2022: ¥103,770 million (-30.0%)
Year ended March 31, 2021: ¥148,228 million (–%)
Diluted Net
Incomeper Share

Net Income
per Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2022

355.84355.79

9.1

4.4

5.0

Year ended March 31, 2021

89.32

89.28

2.6

3.4

3.7

Reference: Equity in earnings of affiliates: Year ended March 31, 2022: ¥8,686 million
Year ended March 31, 2021: ¥6,742 million
Note: Year-on-year change in comprehensive income for year ended March 31, 2021 exceeded 1,000% and is therefore
shown as “–.”

(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2022

1,876,647

1,148,413

58.2

4,057.98

As of March 31, 2021

1,825,019

1,098,613

57.2

3,716.85

Reference: Stockholders’ equity: As of March 31, 2022: ¥1,091,861 million

As of March 31, 2021: ¥1,043,977 million

(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents
at End of the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2022

82,028(39,208)(57,751)

293,361

Year ended March 31, 2021

61,681(56,284)(78,268)

304,223

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

Year-end

AnnualTotal Dividends(Annual)Dividend
Payout Ratio(Consolidated)

Dividends to
Net Assets
Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Year ended March 31, 2021

–

32.00

–

32.00

64.00

17,976

71.7

1.8

Year ended March 31, 2022

–

32.00

–

32.00

64.00

17,26518.0

1.6

Year ending March 31,
2023 (Forecast)

–

32.00

–

32.00

64.00

25.7

3. Consolidated earnings forecasts for the year ending March 31, 2023
(April 1, 2022 – March 31, 2023)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income Ordinary Income
Parent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,380,000

2.7

67,0000.3

81,5000.3

67,000(31.1)

249.01* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
Yes
4) Restatement of revisions:No
Note: For more information, see the section titled, “5. Consolidated financial statements and key notes (5) Notes
regarding consolidated financial statements [Changes in accounting policies],” on page 27 and “5. Consolidated
financial statements and key notes (5) Notes regarding consolidated financial statements [Changes in accounting
estimates],” on page 29.

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

As of March 31,2022

317,240,346 As of March 31,
shares2021

324,240,346
shares

As of March 31,
2022
Year ended
March 31, 2022

48,175,114 As of March 31,
shares2021
273,105,088
Year ended
shares March 31, 2021

43,363,670
shares
280,879,143
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2022
(April 1, 2021 – March 31, 2022)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating
Ordinary Income
Net Income
Income (Loss)

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2022

934,186

1.0

6,693

–

61,999123.7

87,029588.3

Year ended March 31, 2021

925,259(6.1)(1,155)–27,70980.4

12,644(57.9)Net Income
per Share

Diluted Net Income
per Share
Yen

Yen

Year ended March 31, 2022

318.65–

Year ended March 31, 2021

45.02

–

(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2022

1,420,458

676,89047.7

2,515.61

As of March 31, 2021

1,417,801

646,61245.6

2,302.03

Reference: Stockholders’ equity: As of March 31, 2022: ¥676,890 million As of March 31, 2021: ¥646,612 million* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was published. Actual results
may differ significantly due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Overview of operating results, etc., (4)Forecasts,” on pages 5-7.
DNP will hold a briefing (conference call) for institutional investors and analysts regarding its financial
results on May 17, 2022. Materials used at the briefing will be uploaded to the DNP website at around 14:00
JST the same day.

Contents
1. Overview of operating results, etc........................................................................................................... 2(1) Overview of operating results for the year ended March 31, 2022 ................................................... 2(2) Overview of financial position for the year ended March 31, 2022 ................................................... 4(3) Overview of cash flows for the year ended March 31, 2022 ............................................................. 5(4) Forecasts ........................................................................................................................................... 5(5) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2022
and year ending March 31, 2023 ...................................................................................................... 7
2. Information on the DNP Group ............................................................................................................... 7
3. Management policies ............................................................................................................................ 12(1) Core policies .................................................................................................................................... 12(2) Management targets ....................................................................................................................... 12(3) Medium- and long-term management strategy ............................................................................... 12
4. Basic approach to selecting accounting standards............................................................................... 14
5. Consolidated financial statements and key notes................................................................................. 15(1) Consolidated balance sheets .......................................................................................................... 15(2) Consolidated statements of income and comprehensive income ................................................... 17(3) Consolidated statements of changes in net assets ......................................................................... 19(4) Consolidated statements of cash flows ........................................................................................... 22(5) Notes regarding consolidated financial statements ........................................................................ 24[Notes on premise of a going concern] ........................................................................................... 24[Basis of presenting consolidated financial statements] ................................................................. 24[Changes in accounting policies] .................................................................................................... 27[Changes in accounting estimates]................................................................................................. 29[Additional information] ................................................................................................................... 29[Consolidated balance sheets] ....................................................................................................... 29[Consolidated statements of income] ............................................................................................. 29[Consolidated statements of changes in net assets] ...................................................................... 30[Segment information, etc.] ............................................................................................................. 32[Per share information] ................................................................................................................... 36[Significant subsequent events] ...................................................................................................... 37
6. Non-consolidated financial statements and key notes ......................................................................... 38(1) Non-consolidated balance sheets ................................................................................................... 38(2) Non-consolidated statements of income ......................................................................................... 40(3) Non-consolidated statements of changes in net assets.................................................................. 41(4) Notes regarding non-consolidated financial statements ................................................................. 42[Notes on premise of a going concern] ........................................................................................... 42-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the year ended March 31, 2022
Business conditions surrounding the DNP Group during the fiscal year ended March 2022 continued
to be affected by the novel coronavirus (hereafter, COVID-19), but due to increased administration of
vaccines and other factors, there was a gradual resumption of economic activity. In Japan, working
styles and lifestyles continued to change, and demand related to distance learning, online medicalcare, and 5th generation mobile communication systems (5G) expanded even further. In addition, as
efforts to prevent global warming and reduce pressure on the environment spread worldwide, there
is a growing need for eco-friendly products and services that will lead to the construction of acarbon-free society and a circular economy. On the other hand, the second half of the period saw
increasing impact from such factors as geopolitical risks including the situation in Ukraine, further
increases in raw material prices, and the prolonged shortage of semiconductors, extending into thefiscal year through March 2023.
Amid these conditions, the DNP Group worked to create new value that meets people’s
expectations, and to resolve social issues in order to realize a better, more sustainable society andenable more comfortable lifestyles. The DNP Group has always aspired to contribute to society andto enrich people’s lives, and expresses that desire through its brand statement: “Today’s innovation
is tomorrow’s basic.” By combining the strengths of our unique “P&I” (printing and information)technologies, deepening cooperation with our many partners, and providing the types of value thatare needed by individuals and society, we strive to express our raison d’être as a company thatpeople cannot live without.
In the fiscal year through March 2022, we designated four “focus businesses” where we anticipate
strong market growth and high profitability: the Internet of Things (IoT)/next-generation
communications, data distribution, mobility, and environment. We focused and optimized ourmanagement resource allocation in order to expand our business in these areas.
Regarding IoT/next-generation communication, we moved ahead with the development andsupply of next-generation semiconductor products that use nanoimprint lithography to support 5G
communication. This technology saves energy and reduces costs in semiconductor manufacturing,
thereby contributing to the realization of a carbon-free society.
Regarding data distribution, we established NTT EDX Co., Ltd. in October 2021, as joint investors
with Nippon Telegraph and Telephone West Corp. (NTT West) and Nippon Telegraph and Telephone
East Corp. (NTT East), in order to advance higher education. With a focus on electronic textbooks
and other teaching materials, we provide various services aimed at solving problems in higher
education and supporting the digitization and increased efficiency of publisher and bookstore
operations. In addition, we use our Ki-Re-i photo ID kiosks to provide an online application service
for acquiring Japanese government “My Number” ID cards. We also promote the digitaltransformation (DX) of governmental services, and enable contactless application for such services,which suits people’s new lifestyles.
In the mobility sector, the DNP Group worked to develop products and services to support asociety that uses “next-generation transportation,” which requires reduced environmental impact,
higher energy efficiency, greater information security, and high degrees of safety and comfort. For
example, we have developed and supplied battery pouches for lithium-ion batteries used in electricvehicles (EVs), and decorative films and panels that enhance the design and function of interior andexterior materials.
To protect the environment, we invested more in the development of mono-material packaging
materials, which are easier to recycle because they are made of a single type of plastic material.

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Using the DNP Group’s original technology, we have developed polypropylene (PP) film packaging
with a metallic appearance that adds design value in addition to providing a strong barrier against
oxygen and water vapor and the ability to contain liquids. In June 2021, this product was adopted bya global manufacturer of consumer goods, and is now on sale in the Southeast Asian market.
In addition, we have been working on structural reforms aimed at boosting our competitivenessand have been building a stronger business portfolio. For example, the DNP Group worked tostrengthen its business base to support long-term growth by using information and communications
technology (ICT) to improve productivity and upgrade its information infrastructure in response tomegatrends such as digital transformation (DX). We have also accelerated implementation of
initiatives related to the environment, human resources, and human rights.
As a result of the above, consolidated net sales for the year ended March 31, 2022 increased 0.7%
year on year to ¥1,344.1 billion, consolidated operating income grew 34.8% to ¥66.7 billion, andconsolidated ordinary income grew by 35.6% to ¥81.2 billion. Net income attributable to parent
company shareholders surged 287.4% over the previous year to ¥97.1 billion, partly due to theposting of extraordinary gains resulting from revision of DNP’s retirement benefit system, review ofreserves for repairs, and the sale of investment securities. ROE, which the DNP Group has adopted
as a profitability indicator, was 9.1%.
Business segment results for the year ended March 31, 2022 are presented below.
[PRINTING]
Information Communication
In Information Innovation, large-scale business process outsourcing (BPO) projects decreased anddemand for “My Number” Japanese citizen ID cards and other smart cards subsided, resulting in an
overall decline in sales in Information Innovation.
In the Imaging Communications business, there was a significant recovery in demand formaterials and services related to taking and printing photographs in the main US market and inJapan. Business in other regions also performed well, resulting in an increase in overall sales.
In Publishing, e-book sales remained strong, and we saw increased sales from our “honto” hybrid
bookstore network that handles both paper and electronic books. Sales of electronic library services
and library management operations were favorable. However, overall Publishing sales decreased
due to the heavy impact of factors like sluggish magazine printing.
As a result of the above, and especially due to the decrease in large government-related BPO
projects relative to the previous year, overall segment sales declined 3.2% year on year to ¥698.9
billion. However, thanks largely to the success of cost structure reforms, operating income rose by
43.9% from the previous year to ¥27.6 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked at developing and selling its GREEN
PACKAGING series of environmentally friendly packaging products, and achieved positive resultsfrom structural reforms, including improved efficiency in manufacturing processes and operations.
Despite a slight decline in sales of paper containers and film packaging, sales of aseptic fillingsystems increased, resulting in an increase in sales for Packaging as a whole.
In the Living Spaces business, sales of interior and exterior materials for housing and decorative
films for automobile interiors increased due to recovery in demand in the housing and automobile
markets. Demand for antibacterial and antiviral products that effectively combat infectious diseases-3-also expanded, and overall sales from the Living Spaces business increased.
Although our High-Performance Industrial Supplies business was affected by the global shortageof semiconductors, which caused temporary production cuts in its supply chain, sales of lithium-ion
battery pouches for vehicular use increased due to growing global demand for electric vehicles.
Demand for battery pouches used in tablets and smartphones remained firm due to such factors asincreased teleworking, resulting in an increase in overall sales for this business.
As a result of the above, overall segment sales increased 5.2% year on year to ¥387.0 billion.
Despite the growth in High-Performance Industrial Supplies and cost reductions achieved by
optimizing manufacturing systems, operating income fell 2.4% year on year to ¥13.6 billion due tothe impact of higher raw material prices.
Electronics
In the Display Components business, overall sales increased although sales of optical films wereaffected by the winding down of demand related to “nesting” (spending more time at home due to
COVID-19). Sales of metal masks used in the production of organic light-emitting diode (OLED)
displays were supported by solid demand for these displays for smartphones. Overall, Display
Components sales increased.
In the Electronic Devices business, demand for semiconductors expanded due to the accelerationof DX by companies and local governments, and sales of photomasks for manufacturing
semiconductor products used for communications, automobiles, and data centers increased. Salesof various related products such as lead frames, which are components used in semiconductor
packages, also performed well, and overall sales in this business increased.
As a result of the above, overall segment sales increased 7.1% year on year to ¥211.0 billion, andoperating income grew 26.7% to ¥46.4 billion due to the increase in sales.
[BEVERAGES]
Beverages
In response to lifestyle changes sparked by the COVID-19 pandemic and the increasing need toreduce pressure on the environment, we focused on both online and over-the-counter sales ofbeverages in PET plastic bottles with no labels--not even product name labels.
Overall segment sales decreased 3.4% year on year to ¥49.7 billion because growth in online andsupermarket sales, mainly for home consumption, was outweighed by sluggish sales at restaurants
due to the effects of government stay-at-home requests and activity restrictions. Operating income
declined 17.8% year on year to ¥0.6 billion due to such factors as the soaring cost of ingredients andmaterials, as well as increased sales promotion expenses aimed at expanding market share.
(2) Overview of financial position for the year ended March 31, 2022
Total assets (assets, liabilities and net assets) at the end of the fiscal year increased by ¥51.6 billion
from the end of the previous fiscal year to ¥1,876.6 billion, due to factors including an increase in net
defined-benefit asset.
Total liabilities increased by ¥1.8 billion from the end of the previous fiscal year to ¥728.2 billion,
due mainly to an increase in net defined-benefit liability.
Net assets increased by ¥49.7 billion from the end of the previous fiscal year to ¥1,148.4 billion,
due mainly to an increase in retained earnings.

-4-

(3) Overview of cash flows for the year ended March 31, 2022
Cash and cash equivalents at the end of the current fiscal year decreased by ¥10.8 billion from theend of the previous fiscal year to ¥293.3 billion.
Cash flow provided by operating activities totaled ¥82.0 billion (¥61.6 billion in the previous fiscal
year), due mainly to ¥126.8 billion in income before income taxes and non-controlling interests and¥51.1 billion in depreciation.
Cash flow used by investing activities totaled ¥39.2 billion (¥56.2 billion in the previous fiscal year),due mainly to a ¥53.6 billion in payments for purchases of property, plant and equipment.
Cash flow used in financing activities totaled ¥57.7 billion (¥78.2 billion in the previous fiscal year),due mainly to ¥30.0 billion in payments for purchase of treasury stock and ¥17.6 billion in dividends
paid.
The trends in DNP’s cash flow indicators are shown below.
Year ended
March 2018Year ended
March 2019Year ended
March 2020

Year ended
March 2021

Year ended
March 2022

Equity ratio (%)

58.7

56.1

53.2

57.2

58.2

Market value-based
equity ratio (%)

36.9

45.0

37.5

35.7

41.3

Debt-to-cash flow ratio(year)

3.5

2.4

2.3

2.6

1.9

Interest coverage ratio(times)

21.9

33.4

59.8

42.6

111.7

Notes:***

Equity ratio: Total stockholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Debt-to-cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest paid
The above indicators are calculated based on consolidated financial figures.
Market capitalization is calculated as: Fiscal year-end share price  fiscal year-end number of shares
outstanding (excluding treasury stock)
Cash flow: Cash flow provided by/used in operating activities on the consolidated statements of cash flows
Interest-bearing debt: All liabilities on the consolidated balance sheet that accrue interest charges
Interest paid: Interest paid on the consolidated statements of cash flows(4) Forecasts
It will likely take more time to contain the COVID-19 pandemic. We foresee a continuation of ongoing
major changes in the environment, society, and economies in Japan and abroad, including thesemiconductor shortage, soaring materials prices, and supply chain chaos and currency fluctuations
resulting from geopolitical risks. The printing industry also needs to respond promptly andappropriately to these types of rapid changes in the business environment.
The DNP Group accurately grasps and analyzes these risks as variable factors, and not only
responds to changes, but also initiates its own changes in order to help realize a sustainable andbetter society and more comfortable lifestyles. Based on our corporate philosophy, “The DNP Group
connects individuals and society, and provides new value,” we will continue to combine our uniquestrengths in “P&I” (printing and information) and use deeper alliances with external partners toresolve social issues as well as to create new value that meets people’s expectations.
In particular, by taking advantage of megatrends such as DX, demographic changes, theintroduction of smart cities, and construction of a carbon-free society, and by leveraging the DNP-5-

Group’s unique strengths, we intend to speed up our efforts aimed at realizing a better future in thefollowing four “growth areas.”
In Knowledge and Communication, we aim to realize a future in which people around the world
have greater opportunities for safe and reliable communication and can pass on and develop
knowledge. In Food and Healthcare, we aim for a future in which people around the world are freefrom anxieties about their own lives and can live out their whole lives safely, securely, and enjoy ahigh quality of life. In Lifestyle and Mobility, our goal is a future in which all the spaces where people
worldwide live and move are maintained in comfortable, safe, and secure conditions, and in
Environment and Energy, a sustainable future in which less burden is placed on the global
environment and people worldwide can live in harmony with the earth.
Specifically, the DNP Group has identified “focus businesses” based on appropriate evaluation of
the profitability and market growth potential of various businesses, and is optimizing allocation of its
capital resources in these fields. While promoting new business development primarily in these
focus businesses (IoT/next-generation communications, data distribution, mobility, and environment),
we are also implementing structural reforms to increase overall competitiveness, including that ofexisting businesses. Our goal is to build a well-balanced and robust business portfolio for the entire
group.
Here is a look at each business segment’s initiatives, starting with Information Communication. This
segment intends to focus on its BPO business, where demand continues to grow in response tolabor shortages and changes in working styles; its payment services business, a market that is
expanding amid increasingly widespread use of diverse payment methods; and its authenticationand security business, which is essential to a digital society. In addition, Information Communication
aims to expand its information media business that leverages digital transformation (DX), including
hybrid marketing that combines real-world and digital sales channels, and the construction of
metaverse spaces, starting with PARALLEL CITY urban XR spaces established in cooperation with
regional communities. The DNP Group will also continue to advance its “honto” hybrid bookstore
network, which combines physical bookstores, online bookstores, and e-book services; its digital
library business; educational information and communications technology (ICT) and content-related
businesses. At the same time, the Publishing business will continue to work on structural reforms
including reviewing its production platform and reallocating resources in response to the ongoing
decline in demand for printed media.
In the Lifestyle and Industrial Supplies segment, the DNP Group aims to increase its capacity for
producing battery pouches for automotive lithium-ion batteries in response to greater uptake ofelectric vehicles. The segment will also boost profitability by means of a further shift toward
high-value-added products such as living space products with enhanced antibacterial and antiviralfunctionality, and packaging products that guard their contents using film that functions as a highly
effective barrier against oxygen and water vapor. We will also focus more keenly than ever on
expanding next-generation mobility and medical care/healthcare businesses. In addition, we will
collaborate with many partners throughout the supply chain and take advantage of our strength indeveloping products that are an integral part of consumers’ lives, such as packages for food andhousehold items, and we will work harder than ever to offer our own designs for more comfortable
lifestyles. In addition to striving to expand our GREEN PACKAGING series of environmentallyfriendly packaging products, we provide new value aimed at reducing pressure on the environment
and improving energy efficiency by developing and supplying products like the DNP Multifunctional
Insulation Box, DNP Lighting Film and photovoltaic module components, etc. Meanwhile, we will
work to minimize the impact of soaring prices for films and other raw materials by negotiating with-6-

customers to reflect price increases in our selling prices.
In the Electronics segment, the DNP Group is responding to the increasing adoption of organic
light-emitting diode (OLED) displays in smartphones, tablets, and laptop computers, etc. Byleveraging the advantages of its leading global market share, we intend to achieve steady growth inmetal masks used in the production of OLED displays. In optical films as well, the DNP Group has
secured leading global shares of products such as anti-reflection surface films. The Group is taking
advantage of its ultra-wide production lines to increase production volume and market share, andintends to expand its new product lineup. Since demand for photomasks and lead frames is
expected to grow in tandem with the booming semiconductor market, we will make appropriate
capital investments and take other steps to grow our business.
In addition, as an initiative common to all our business segments, we will continue to review
holdings of fixed assets and investment securities throughout the DNP Group and promote more
effective and efficient use of assets.
For the fiscal year ending March 31, 2023, the DNP Group forecasts consolidated net sales of¥1,380.0 billion, consolidated operating income of ¥67.0 billion, consolidated ordinary income of¥81.5 billion, and consolidated net income attributable to parent company shareholders of ¥67.0
billion.
(5) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2022 and year ending March 31, 2023
The DNP Group positions as one of its key management initiatives its obligation to meet the
expectations of shareholders and other stakeholders, and to achieve long-term growth in order tocreate a sustainable and better society while steadily returning profits to shareholders.
It will return profits by paying stable dividends to shareholders, taking into account factors
including earnings and payout ratio.
The DNP Group also intends to secure an appropriate level of retained earnings and strengthen
its business base in preparation for future business development. It invests retained earnings in thedevelopment of new products, services and technologies, in capital spending for developing new
businesses, in strategic alliances and M&As, and in human resources that support these activities.
At the same time, the Group keeps an eye on its capital requirements as well as market trends, andacquires treasury shares or implements other capital policies flexibly and dynamically.
The DNP Group believes that these efforts will contribute to higher profits that can then be passed
on to shareholders and other stakeholders in future.
Based on this policy, the DNP Group will pay a year-end dividend of ¥32 per share, and adding theinterim dividend of ¥32 per share, it plans to pay a full-year dividend of ¥64 per share in the current
fiscal year. This will result in a consolidated payout ratio of 18.0% for the current fiscal year.
For the fiscal year ending March 31, 2023, the DNP Group forecasts the interim dividend at ¥32
and the year-end dividend at ¥32, for a full-year dividend of ¥64.
2. Information on the DNP GroupThe DNP Group includes the Company, 147 subsidiaries, and 26 affiliated companies. Its two main
businesses are Printing and Beverages. The former encompasses Information Communication,
Lifestyle and Industrial Supplies, and Electronics.

The businesses and segments of the DNP Group are broadly outlined below. The fourbusiness segments cited below are the same as the reporting segment categories.
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[PRINTING]
Information Communication
Books including standard books, dictionaries, commemorative and memorial editions, all types ofmagazines including weekly, monthly and quarterly, corporate PR magazines, textbooks, e-books,
catalogs, leaflets, brochures, calendars, posters, point-of-purchase (POP) materials, digital(electronic) signage, sales promotion materials, digital marketing support related to customer
analysis, BPR consulting and BPO services related to corporate business processes and sales
processes, data center operations, information processing services (IPS), business forms, securities
and gift certificates, passbooks, smart cards, payment-related services, card-related equipment, IC
tags, holograms, authentication and security services and related products, training anddevelopment of cybersecurity personnel, planning/development/production/construction/operations
related to events/stores/products/contents, etc.
Dye-sublimation thermal transfer materials, (color ink ribbons and receiver paper), thermal
resin-type transfer printing media (monochrome ink ribbons), photography-related materials andequipment, self-service printing business, ID photo businesse-book distribution and sales, book sales, library management, etc.
Major companies
Production

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

Production and sales

DNP Imagingcomm Asia Sdn. Bhd., DNP Imagingcomm Europe B.V.
DNP Imagingcomm America Corporation*MK Smart Joint Stock Company

Sales and services

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
CYBER KNOWLEDGE ACADEMY Co., Ltd.
DNP ID System Co., Ltd., DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd., DNP Digital Solutions Co., Ltd.
DNP HyperTech Co., Ltd., DNP Photo Imaging Japan Co., Ltd.
DNP hollyhock Co., Ltd., DNP PLANNING NETWORK Co., Ltd.
2Dfacto, Inc., DNP Metro Systems Co., Ltd., mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd., MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co., Ltd.,
Toshokan Ryutsu Center Co., Ltd., honto Book Services Co., Ltd.
Colorvision International, Inc., DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC, Sharingbox SA* Nihon Unisys, Ltd., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd.
The shares of Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE
INC., Nihon Unisys, Ltd. and BOOKOFF GROUP HOLDINGSLIMITED are traded on the Tokyo Stock Exchange.
Effective April 1, 2022, Nihon Unisys Ltd. changed its trade name to
BIPROGY Inc.

-8-

Lifestyle and Industrial Supplies
Various types of packaging materials for products such as foods, beverages, snacks, household
items and medical supplies, cups, plastic bottles, laminated tubes, molded plastic containers,
aseptic filling systems
Interior and exterior materials for homes, stores, offices, vehicles, home appliances, and furniture,etc.; molded plastic parts for automobiles, metallic veneers
Lithium-ion battery components, photovoltaic module components, materials for transporting
electronic components, multifunctional insulation box, etc.
Major companies
Production

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

Production and sales

DNP Tamura Plastic Co., Ltd., Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya Co., Ltd.
PT DNP Indonesia, DNP Vietnam Co., Ltd.

Sales and services

DNP Lifestyle Materials Marketing Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP・SIG Combibloc Co., Ltd.

Electronics
Optical film for displays, projection screens, metal masks used in the manufacturing organic EL
displays, large photomasks for making liquid crystal displays, touch panel components, photomasks
for semiconductor products, lead frames, LSI design, hard disk suspensions, electronic modules,
MEMS (micro electro mechanical systems) products, etc.
Major companies
Production

DNP LSI Design Co., Ltd., DNP Fine Optronics Co., Ltd.
DNP Precision Devices Himeji Co., Ltd.

Production and sales

DT Fine Electronics Co., Ltd.
DNP Denmark A/S, DNP Photomask Europe S.p.A.
* Photronics DNP Mask Corporation
Photronics DNP Mask Corporation Xiamen

Sales

DNP Taiwan Co., Ltd.

Companies with multiple types of businesses
Production and sales DNP Fine Chemicals Co., Ltd., DNP Engineering Co., Ltd.
DNP Shikoku Co., Ltd.
* DIC Graphics Corporation
Sales and services

DNP Logistics Co., Ltd., DNP Trading Co., Ltd.
DNP Accounting Services Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
DAP Technology Co., Ltd., DNP Hokkaido Co., Ltd.

-9-

DNP Tohoku Co., Ltd., DNP Chubu Co., Ltd.
DNP Nishi Nippon Co., Ltd.
DNP Asia Pacific Pte. Ltd., DNP Corporation USA
DNP America, LLC, DNP Holding USA Corporation[BEVERAGES]
Beverages
Manufacture and sale of carbonated beverages, coffee, tea and fruit juice beverages, functional
beverages, mineral water, alcoholic beverages, etc., primarily through Hokkaido Coca-Cola BottlingCo., Ltd.
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies-10-Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers
Information Communication

Lifestyle and Industrial Supplies(Production and sales)
DNP Imagingcomm Asia Sdn. Bhd.
DNP Imagingcomm Europe B.V.
DNP Imagingcomm America
Corporation
MK Smart Joint Stock Company*(Production and sales)
PT DNP Indonesia
DNP Vietnam Co., Ltd.

Electronics(Production and sales)
DNP Denmark A/S
DNP Photomask Europe S.p.A.
Photronics DNP Mask Corporation*
Photronics DNP Mask Corporation
Xiamen*(Sales and service provision)
Colorvision International, Inc.
DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC
Sharingbox SA(Sales and service provision, etc.)
Maruzen CHI Holdings Co., Ltd.
INTELLIGENT WAVE INC.
CYBER KNOWLEDGE ACADEMY
Co., Ltd.
DNP ID System Co., Ltd.
DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd.
DNP Digital Solutions Co., Ltd.
DNP Photo Imaging Japan Co., Ltd.
DNP HyperTech Co., Ltd.
DNP PLANNING NETWORK Co.,Ltd.
DNP hollyhock Co., Ltd.
2Dfacto, Inc.
DNP Metro Systems Co., Ltd.
mobilebook.jp, Inc.
MARUZEN-YUSHODO Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co.,Ltd.
Toshokan Ryutsu Center Co., Ltd.
honto Book Services Co., Ltd.
Nihon Unisys, Ltd. *BOOKOFF GROUP HOLDINGSLIMITED*
Kyoiku Shuppan Co., Ltd.*(Production and sales)
DNP Fine Chemicals Co., Ltd.
(Sales and service provision, etc.)
DNP Logistics Co., Ltd.
DNP Human Services Co., Ltd.
DNP Hokkaido Co., Ltd.
DNP Asia Pacific Pte. Ltd.

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

(Production and sales)
DNP Tamura Plastic Co., Ltd.
Aseptic Systems Co., Ltd.
DNP Fine Chemicals Utsunomiya
Co., Ltd.

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

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

DNP Engineering Co., Ltd.

DNP Shikoku Co., Ltd.

DIC Graphics Corporation*

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

DNP Accounting Services Co., Ltd.
DAP Technology Co., Ltd.
DNP Chubu Co., Ltd.
DNP America, LLC

DNP Information Systems Co., Ltd.

Printing businessNotes: *(Production)
DNP LSI Design Co., Ltd.
DNP Fine Optronics Co., Ltd.
DNP Precision Devices Himeji Co.,Ltd.

(Production and sales)
Hokkaido Coca-Cola Bottling Co., Ltd.

Dai Nippon Printing Co., Ltd.

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

Beverages(Sales)DNP Taiwan Co., Ltd.

: Equity-method affiliated companies (Otherwise, subsidiaries): Flow of products, materials and services-11-

DNP Nishi Nippon Co., Ltd.
DNP Holding USA Corp.

Beverages
business3. Management policies(1) Core policies
The DNP Group’s corporate philosophy expresses our basic management policy: “DNP connects
individuals and society, and provides new value.” Based on this idea, we keep our eye on the longterm and endeavor to proactively engage in business activities aimed at creating a better future, andto steadily enhance corporate value. Our Business Vision is to expand, through printing andinformation (P&I) innovations, around a core of four growth areas. To achieve this, we work at
creating value by combining our unique P&I strengths and forming alliances with partners.
Moreover, the DNP Group seeks to create new value that meets people’s expectations while
resolving social issues. We strive to make that value such an integral part of people’s everyday lives
that they come to take it for granted. This goal of continually generating indispensable value informs
the DNP Group’s internal and external brand statement: “Today’s Innovation is Tomorrow’s Basic.”
To achieve this goal, the DNP Group works to continually fulfill what it considers to be its three
responsibilities as a company: Value Creation, Integrity of Conduct, and Transparency(Accountability).
(2) Management targets
Based on its corporate philosophy, the DNP Group will take the initiative to work at creating newvalue aimed at realizing a sustainable and better society and more comfortable lifestyles, even as
environmental, social and economic trends and people’s values change drastically. The Group has
identified four growth areas in which it aims to leverage its strengths in order to expand its business,and in which it will implement long-term strategies. We will establish concrete, intermediate targets
to mark the way, specifying “how much” of “what” we will accomplish by “when” as we work steadily
to achieve the desired results.
As of now, we have established “operating income of ¥75.0 billion, operating income to sales ratioof 5.2%, and ROE of at least 5.0%” as our management indicators for the fiscal year ending March
2025. In order to achieve these goals, we will first implement our medium-term management plan
covering the three fiscal years from April 2020 through March 2023.
(3) Medium- and long-term management strategy
The DNP Group will work to achieve the targets in its three-year medium-term plan that runs throughthe fiscal year ending March 2023 via the two basic strategies of creating value through P&I
innovations and strengthening the business infrastructure needed to support growth.
< Basic strategy 1> Creating value through P&I innovations[1-1: Creating value primarily in growth areas]
The DNP Group analyzes social issues, megatrends, and changes in individuals’ values in order to
identify key issues, with consideration given for areas that are of interest to DNP stakeholders andfor the degree of relevance to DNP Group businesses. In our view, megatrends that are likely tocontinue include digital transformation (DX), a shift to data-based economies, decline in theJapanese population and growth in the global population, increasing human lifespans, thedevelopment of smart cities, and construction of a decarbonized society.
In response to these trends, the DNP Group identifies the kinds of value that only it can create byleveraging its unique strengths, and identifies its focus businesses based on an appropriate
evaluation of their profitability and market growth potential. It is working to create a balanced,
resilient business portfolio based on optimal allocation of its capital resources, mainly in four focus
businesses: IoT and next-generation communications, data distribution, mobility, and environment.

-12-[1-2: Providing value optimized to each country and region]
The DNP Group is expanding its business globally by accurately grasping the characteristics of eachcountry/region and the issues and needs of its citizens, then developing and supplying optimal
products and services. The DNP Group is working to further expand businesses in which it alreadyhas a leading global market share, including battery pouches for lithium-ion batteries, metal masks
used in the production of organic light-emitting diode (OLED) displays, optical films for displays, anddye-sublimation thermal transfer printing media for photo printing. It is also working to create new
businesses that will supply new value to the global market.
[1-3: Increasing value using all available restructuring approaches]
As part of its quest to build a strong business portfolio, the entire DNP Group will promote a wide
variety of structural reforms. For example, in the Information Communication segment, it is working
to reduce the number of printed media production bases; in Lifestyle and Industrial Supplies it isreviewing low-value-added products and streamlining bases; and in Electronics it is promoting
significant improvements to productivity by using data analysis, robots, and AI. By reallocating thehuman resources, land, and equipment freed up by these initiatives to development and productionthat support our “focus businesses,” the DNP Group reforms its business structure and further
increases its competitiveness.
< Basic strategy 2> Strengthening business infrastructure needed to support growth[2-1: Strengthening financial and non-financial capital]
The DNP Group will work to strengthen its business base through the integrated use of both financial
and non-financial capital in order to achieve medium- to long-term growth. In addition to pursuing
capital strategies that support business growth, DNP is working to strengthen and expand its
non-financial capital, such as human, intellectual, manufacturing, natural resources, and social
relations, including through the formulation and implementation of specific action plans.
On the capital policy front, the DNP Group will invest mainly in focus businesses, in accordancewith Basic Strategy 1. Investments in these businesses will be funded not only with our own cash on
hand, but also by raising growth funding from third parties, reducing idle assets and selling strategic
shareholdings. In addition, we will consider a comprehensive range of capital strategies, including
improving capital efficiency, stabilizing our financial base, and returning profits to shareholders.
Regarding human resources and human rights, the DNP Group respects the various ways inwhich each employee differs from others. By combining our diverse strengths, we can generate newvalue. The DNP Group promotes diversity and inclusion initiatives in order to cultivate a diverse
workforce, diverse working styles, and an organizational culture that enables diverse employees tothrive. We are working to close gender gaps in various manifestations, and especially to increase thediversity of decision-making echelons.
For female employees, we offer training for career development and support for promotion to
managerial positions. As a result, the ratio of female managers reached 7.4% at the end of March
2022, and the number of women in managerial and leadership positions increased 2.2 times overthe February 2016 level, thereby achieving the targets that we set in 2019. Our new goals are for theend of fiscal 2025 (end March 2026): to increase the number of female department managers to 1.5
times the number at the end of March 2022; increase the ratio of female section managers to at least
15%, and the ratio of leaders to at least 25%. We intend to work to achieve these goals.
Also, on April 1, 2021, the DNP Group drew up the DNP Group Declaration on Health, which
positions employee health as a key management issue and aims to strategically promote better
health while implementing health-focused management to improve employee vitality and invigorate
the organization.

-13-

[2-2: Strengthening corporate governance]
DNP seeks to strengthen corporate governance as a key management priority. The Company has
created and implements a robust framework for prompt and accurate management decision-making,business execution, oversight, and auditing.
In April 2022, we reorganized the structure of our Sustainability Promotion Committee in order toenhance the sustainability of the environment, society and the economy, and to further promotesustainable growth by DNP itself. Specifically, we made DNP’s president the chair of the committee,
the Company’s senior managing director is the vice chair, and corporate directors and officers incharge of each of the head office’s business segments are committee members. In cooperation with
the Corporate Ethics Committee and BCM Promotion Committee, the committee analyzes andmanages Company-wide risks based on medium- to long-term corporate activities with a focus onenvironment, society, and governance (ESG). Furthermore, based on our recognition that variablefactors that we perceive as risks are at the same time opportunities for business expansion, we willlink them to the creation of new value that can contribute to the attainment of SDGs.
In order to assure that each and every employee fulfills the Company’s social responsibilities, inaddition to encouraging employees to behave in accordance with the DNP Group Code of Conduct,
we will work harder than ever to offer various types of training and education in order to cultivatecompliance awareness.
4. Basic approach to selecting accounting standards
The DNP Group uses Japanese GAAP in preparing consolidated financial statements. It plans to
consider adopting IFRS going forward and respond appropriately based on domestic and overseas
circumstances.

-14-5. Consolidated financial statements and key notes(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2021
(As of March 31, 2021)

Year ended March 31, 2022
(As of March 31, 2022)

301,162
324,625–––
19,00075,54027,81023,42034,975(716)
805,817287,334–
46,635277,912298
17,90080,38530,98030,25533,804(693)
804,813533,513(369,464)
164,049
699,897(626,186)
73,710141,808
13,238
128,735(101,513)
27,221420,029

529,948(369,441)
160,506
684,070(613,240)
70,830139,573
25,640128,372(103,046)
25,325421,875

2,426
21,048
1,732
25,2072,317
23,556
1,873
27,747422,799
111,933
9,977
31,995(2,741)
573,964
1,019,201
1,825,019

410,266
166,130
11,77036,002(1,957)622,210
1,071,834
1,876,647

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Notes receivables
Trade receivables
Contract assets
Marketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-15-

(Million yen)
Year ended March 31, 2021
(As of March 31, 2021)

Year ended March 31, 2022
(As of March 31, 2022)

226,606
37,321
2,545
7,123
19,284
17,68893,555408,125

236,188
33,9902,567
10,051
20,367
17,252
85,689406,108

103,550
11,56949,49135,174
95,99722,496318,279
726,405

102,500
14,25428,03655,888102,275
19,170322,125
728,233

114,464
145,024
683,784(122,920)
820,352

114,464
145,143
740,183(133,123)
866,667

202,017

192,994

11(5,082)
26,67845
4,220
27,932

223,624

225,193

54,636
1,098,613
1,825,019

56,552
1,148,413
1,876,647

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Repair reserve
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Repair reserve
Net defined benefit liability
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-16-

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

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

Year ended
March 31, 2021
1,335,439
1,058,525
276,914227,384
49,529Year ended
March 31, 2022
1,344,147
1,051,218
292,928
266,140
66,788

4,341
6,742
4,539
15,623

4,114
8,686
5,751
18,552

1,255
1,736
2,253
5,245
59,907

735
1,078
2,277
4,091
81,249

588
1,874
–
365
–
126
2,954

7,133
12,11818,534–
14,674
2,118
54,579

2,919
4,102
4,878
2,905
1,657
16,462

3,918
3,506
175
742
596
8,938

46,400126,890

14,874
3,753
18,627
27,772

17,998
8,391
26,389100,501

2,684

3,319

25,08897,182-17-

Consolidated statements of comprehensive income(Million yen)

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

Year ended
March 31, 2021
27,772

Year ended
March 31, 2022
100,501

91,947(9,044)8(2,324)
31,272

34
7,552
1,568

(448)

3,157

120,455
148,228

3,269
103,770

145,856
2,372

99,514
4,255-18-

(3) Consolidated statements of changes in net assets
The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,024

676,346(122,911)

812,923

Changes of items during theperiodCash dividends paid
Net income attributable toparent company
shareholders
Change of application ofequity method
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Purchases of treasurystock(17,977)(17,977)

25,08825,088

327

327

0

(0)

Disposal of treasury stock

0

(0)

(9)

(9)

0

0

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

–
–

0

7,438

(9)

7,429

114,464

145,024

683,784(122,920)

820,352

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains onhedgesForeigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets110,051

5(3,448)(3,751)

102,856

52,794

968,574

Changes of items during theperiod(17,977)

Cash dividends paid
Net income attributable toparent company
shareholders
Change of application ofequity method

25,088327

Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

0

Purchases of treasury
stock

(9)
0

Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period91,966

6(1,633)30,429120,768

1,841

122,609

91,966

6(1,633)30,429120,768

1,841

130,039

202,017

11(5,082)

26,678

223,624

54,636

1,098,613-19-

The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,024

683,784(122,920)

Cumulative impact ofaccounting changes
Cumulative impact ofchanges in accounting
policies at equity-method
affiliates
Balance at the beginning ofcurrent period reflecting
accounting changes

Total
stockholders’equityCommonstock

114,464

145,024820,352

25

25(3,355)(3,355)680,454(122,920)

817,022

Changes of items during theperiodCash dividends paid
Net income attributable toparent company
shareholders
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasurystock(17,643)(17,643)

97,182

97,182

118

118

0

0

(30,012)(30,012)

Disposal of treasury stock

(0)

0

0

Retirement of treasurystock
Net changes in items otherthan stockholders’ equity(19,809)(19,809)–

Total changes of items
during the period
Balance at the end of current
period––118

59,728(10,202)49,644

114,464

145,143

740,183(133,123)

866,667-20-

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets202,017

11(5,082)

26,678

223,624

54,636

1,098,613

Cumulative impact ofaccounting changes
Cumulative impact ofchanges in accounting
policies at equity-method
affiliates
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during theperiod

25
(296)

(0)

3

(470)

(763)

201,720

11(5,078)26,207

222,861(4,118)54,636

1,094,521(17,643)

Cash dividends paid
Net income attributable toparent company
shareholders
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock(30,012)

Disposal of treasury stock0

Retirement of treasury
stock

–

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period97,182118

0(8,726)

33

9,299

1,725

2,332

1,916

4,248

(8,726)

33

9,299

1,725

2,332

1,916

53,892

192,994

45

4,220

27,932

225,193

56,552

1,148,413-21-

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

Year ended
March 31, 2021
Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Impairment loss
Decrease of doubtful receivables, net
Increase of net defined benefit asset
Increase of net defined benefit liability
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net (gain) loss on sale of investment securities
Net loss on devaluation of investment securities
Net (gain) loss on sale or disposal of fixed assets
Decrease in trade receivables(Increase) Decrease in inventories
Increase (Decrease) in trade payables
Increase on reversal of repair reserve
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchase of stock in subsidiaries resulting
in change in scope of consolidation
Proceeds from purchase of stock in subsidiaries
resulting in change in scope of consolidation
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash used in investing activities-22-

Year ended
March 31, 2022

46,400126,890

50,893
4,102(235)(3,380)363(6,742)994(4,341)
1,255
3,003
2,905
2,411
6,252
7,065
(11,530)–(110)
99,306(8,116)(450)(29,058)
61,681

51,1543,506(853)(35,003)
3,851(8,686)521(4,114)735(11,942)742(3,168)2,461(13,355)
7,882(14,674)(2,970)102,977(7,215)(197)(13,535)
82,028(2,255)

4,502(50,992)(53,614)

2,024
(944)
5,503

8,120
(1,571)
14,747(2,551)

(50)

20

–

(10,992)
8,260(4,357)(56,284)(12,206)
6,980(6,117)(39,208)

(Million yen)

Year ended
March 31, 2021
Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Expenditure for acquisition of subsidiary shares withoutchange in scope of consolidation
Income from the sale of shares of a subsidiary without achange in the scope of consolidation
Payments for purchases of treasury stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents resulting frommerger of non-consolidated subsidiaries
Cash and cash equivalents at end of year

-23-

Year ended
March 31, 2022

(1,929)4,295(3,404)(52,490)(3,350)4,790(2,009)(3,570)

–

(878)

–

10

(9)
(1)
(1,447)(17,976)(551)(4,753)(78,268)(30,012)
(847)
(734)
(17,642)(509)(2,997)(57,751)

(416)

4,054

(73,287)
377,367(10,877)
304,223143

15304,223

293,361(5) Notes regarding consolidated financial statements[Notes on premise of a going concern]
None[Basis of presenting consolidated financial statements]
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 116
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd., INTELLIGENT WAVE INC.
DNP Fine Chemicals Co., Ltd., DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 20
Major companies:
Nihon Unisys, Ltd., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd., DIC Graphics Corporation
Photronics DNP Mask Corporation
MK Smart Joint Stock Company
Photronics DNP Mask Corporation Xiamen
Effective April 1, 2022, Nihon Unisys Ltd. changed its trade nameto BIPROGY Inc.
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
Excluded:
3 K Photo Image Co., Ltd. and two other companies(Application of equity method)
Newly included:
3

NTT EDX Co., Ltd. and two other companies

3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 33 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 26 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, MobileBook.jp, Inc. andone other company have fiscal years that end on September 30, DNP Tamura Plastic Co., Ltd.’s
fiscal year ends on October 31, and DNP・SIG Combibloc Co., Ltd.’s fiscal year ends on December
31. Consequently, financial statements based on provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates or provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

-24-4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securities
Non-stock instrumentsthat do not have amarket price

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

Stock instruments that
do not have a market
price

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

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

Merchandise

Mainly cost based on the specific identification method

Finished products, work inprogress

Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

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

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

• Lease assets

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

•Right-of-use assets

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

-25-

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

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

• Repair reserve

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

(d) Revenue and expense reporting standards
We began applying the “Accounting Standard for Revenue Recognition” (AccountingStandards Board of Japan Statement No. 29, March 31, 2020), etc. from the beginning of theconsolidated fiscal year that ended March 2022. Accordingly, at the time when control ofpromised goods or services is transferred to a customer, we recognize as revenue the amountof money we expect to receive in exchange for those goods or services.
Details of the major performance obligations in our major businesses related to revenue
generated from contracts with customers of the Company or its consolidated subsidiary, andnormal times for satisfying those performance obligations (normal times for revenue
recognition) are as follows:• Details of major performance obligations in major businesses
The main performance obligations of the Company and its consolidated subsidiaries are thesale of products or merchandise or the provision of services, etc. by its business segments,
which are Information and Communication, Lifestyle and Industrial Supplies, Electronics, andBeverages. Specific products offered by each business segment are listed in “2. Informationon the DNP Group.”• Normal times for fulfilling performance obligations (normal times for recognizing revenue)(1) Sale of products or merchandise (Information and Communication, Lifestyle and Industrial
Supplies, and Electronics segments)
Regarding the domestic sale of products or merchandise, we mainly apply the alternative
treatment stipulated in Section 98 of the Guidelines for Applying Accounting Standards for
Revenue Recognition. When the amount of time that elapses from shipment until control ofthe products or merchandise is passed to the customer is a normal period, we recognize
revenue based on shipment. With regard to export sales of products or merchandise, we
regard the customer as having taken control of the products or merchandise when the burdenof risks related to those products or merchandise has transferred to the customer based on
the terms of trade established in the contract with the customer. Therefore, at that point weare considered to have fulfilled our performance obligation and at that time we recognize
revenue. In addition, regarding merchandise sales that take place at stores operated by someof our consolidated subsidiaries (Information Communication business segment), we
consider the customer to have taken control of the merchandise at the point when it isdelivered to the customer, so at that point we consider our performance obligation to havebeen satisfied and we recognize revenue.

-26-

(2) Provision of services (Information and Communication, Lifestyle and Industrial Supplies,
and Electronics segments)
Concerning the provision of services, in cases where the performance obligation is fulfilled ata single point in time, the performance obligation is considered to have been fulfilled when thecustomer accepts the service provision, and we recognize revenue at that point. In cases
where the contract with the customer stipulates that the performance obligation be satisfied
for the duration of a certain period of time covered by the contract, the performance obligationis considered to have been satisfied with the passage of time, and the revenue is recognized
as being evenly apportioned over the contract period.
(3) Sale of beverages (Beverages segment)
Regarding the sale of beverages, since the customer generally takes control of the product at
the time when it is delivered, it is determined that at that time the performance obligation has
been satisfied and we recognize revenue.
(e) Accounting treatment of retirement benefits• Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, a benefit formula is used to allocate expected
retirement benefit payments in the period until the end of the current fiscal year.
• Method of amortizing actuarial gains/losses and prior service costs
Prior service costs are amortized using the straight-line method over a certain number ofyears that is equal to or less than the average future service period of eligible employees at
the time the costs are incurred (generally six years).
Actuarial gains/losses are amortized starting in the next fiscal year after they are incurred
using the declining balance method over a certain number of years that is equal to or lessthan the average future service period of eligible employees in the fiscal year the actuarial
gains/losses are incurred (generally nine years).
(f) Amortization of goodwill
Goodwill is amortized using the straight-line method for an effective period not more than 20
years.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents comprise cash on hand, immediately withdrawable funds, andshort-term investments that can be easily converted to cash, have insignificant risk of changes
in value, and have maturities within three months of the purchase date.
[Changes in accounting policies](Adoption of revenue recognition standard)
The DNP Group applied the Accounting Standard for Revenue Recognition (Accounting Standards
Board of Japan Statement No. 29, March 31, 2020; hereafter “the revenue recognition standard”)
from the beginning of the fiscal year ended March 2022. From the time that control over promised
goods or services is transferred to a customer, the amount of money expected to be received in
exchange for those goods or services will be recognized as revenue. The main changes resulting
from the adoption of the revenue recognition standard are as follows:-27-

(1) Recognition of revenue related to paid transactions
DNP and some of its consolidated subsidiaries purchase raw materials, etc. from customers,
process those materials, etc., and sell them back to the same customer. DNP previously recognizedrevenue from these types of transactions (with some exceptions) as the entire amount received forsuch products, including the amount paid for the purchase of raw materials and other inputs. Now,
however, we have changed to a method whereby we recognize net revenue excluding the purchaseprice of raw materials and other inputs.
(2) Recognition of revenue from transactions in which DNP acts as agent
DNP previously recognized as revenue the entire amount received as payment from customers whopurchased books sold by some of its consolidated subsidiaries. However, regarding transactions inwhich DNP acts as an agent when providing goods or services to customers, it now recognizes asrevenue the net amount obtained after subtracting payments to suppliers from amounts received
from customers.
In its application of the revenue recognition standard, DNP complies with the transitional measures
stipulated in the notes to Section 84 of the standard. It retroactively applied the new standard to theperiod prior to the beginning of the fiscal year ended March 2022, and adjusted the fiscal year’s
initial retained earnings by the cumulative impact of that retroactive application, then began applying
the new standard starting with the adjusted balance at the beginning of the period. However, using
the approach stipulated in Section 86 of the revenue recognition standard, we did not retroactively
apply the new standard to contracts where virtually all revenue had been recognized prior to thebeginning of the fiscal year. In addition, the Company used the approach laid out in Section 86 (1) of
the revenue recognition standard regarding contracts that were changed before the beginning of the
fiscal year: accounting for such contracts was based on contract terms after all contract changes
had been reflected, and the amount of cumulative impact was added to or subtracted from retained
earnings at the beginning of the fiscal year.
“Current assets” amounts that were displayed as “notes and trade receivables” in the consolidatedbalance sheet for the fiscal year ended March 2021 are now included with “notes,” “tradereceivables,” and “contract assets” for the fiscal term ended March 2022. In line with the transitional
approach stipulated in Section 89-2 of the revenue recognition standard, the DNP Group has notreclassified figures from the previous fiscal year (through March 2021) according to the newpresentation method.
As a result, net sales for the fiscal year ended March 31, 2022 declined by ¥28,334 million
compared to before we began to apply the Accounting Standard for Revenue Recognition, etc., costof sales declined by ¥23,878 million, selling, general and administrative expenses by ¥4,154 million,
and operating income by ¥301 million, while ordinary income and income before income taxes andnon-controlling interests each decreased by ¥111 million.
Since the cumulative impact of this change was reflected in net income at the beginning of the
fiscal year ended March 31, 2022, the balance of retained earnings on the consolidated statementsof changes in net assets at the beginning of the year increased by ¥25 million.
The impact of this change on net income per share is minimal.
In line with the transitional approach stipulated in Section 89-3 of the revenue recognition standard,
we did not provide a breakdown of the balance of contract liabilities or profits generated fromcontracts with customers for the period prior to the beginning of the fiscal year through March 2021.

-28-

(Adoption of accounting standard for fair value measurement)
The DNP Group began applying the Accounting Standard for Fair Value Measurement (ASBJ
Statement No. 30, July 4, 2019; hereafter, “fair value measurement standard”) etc. as of the
beginning of the fiscal year ended March 2022. Going forward, we intend to apply the new
accounting policy defined by the standard in line with the transitional approach stipulated in Section
19 of said standard and Section 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019). The impact of this change on the DNP Group’s consolidated
financial statements is minimal.
[Changes in accounting estimates](Repair reserve)
The Group recognizes money held in reserve to fund repairs.
Based on scientific investigation and analysis of defects that occurred in some of DNP’s wallpaper
products, we made a reasonable estimate of the amount necessary to cover the repair of defects
that could be expected to occur in the future, and set aside money in this reserve.
As of the end of the fiscal year ended March 2022, construction work related to almost 70% of the
anticipated repairs had been completed. Based on historical data showing the actual cost of labor,materials, etc. incurred at repair sites to date, we reviewed the unit price and prepared a revised
estimate of the cost of repairs expected to be needed in the future.
As a result, the difference between the previous estimate and the new estimate was recorded as
an extraordinary gain under “reversal of repair reserve.” As a result, income before income taxes
and non-controlling interests for the fiscal year through March 2022 increased by ¥14,674 million.
[Additional information](Transition of retirement benefit plans)
From October 1, 2021, DNP and some of its consolidated subsidiaries have transitioned a portion of
their retirement benefit plans to defined contribution pension plans.
Regarding accounting treatment associated with this change, we applied the Accounting
Treatment for Transition between Retirement Benefit Plans (ASBJ Implementation Guidance No. 1,
December 16, 2016) and Practical Solution on Accounting for Transfer between Retirement Benefit
Plans (Practical Issues Task Force No. 2, February 7, 2007). As a result of this transition, we haverecorded ¥18,534 million in retirement benefit plan revision gains as extraordinary gains for the fiscal
year ended March 2022.
[Consolidated balance sheets]

1. Discounts on notes receivables

Year ended
March 31, 2021

Year ended
March 31, 2022

¥387 million¥317 million

2. Contract liabilities¥13,287 million(Other in current liabilities and other in long-term liabilities)[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses)-29-

Year ended
March 31, 2021

Year ended
March 31, 2022

¥32,623 million¥33,147 million

2. Impairment losses
The DNP Group recorded impairment losses for the following asset groups in the current
consolidated fiscal year.
Location
Kashiwa City (Chiba), other

Application
System assets

Kuki City (Saitama),
Shiraoka City (Saitama), other

Publishing business assets

Other

Business assets, idle assets

Category
Software, other
Buildings and structures,
machinery and equipment,
software, other
Buildings and structures,
machinery and equipment, otherIn calculating impairment losses, the DNP Group combines assets based mainly on the businessgroups that serve as profit/loss units. It also considers impairment losses for each individual item foridle assets.
As a result, regarding a group of assets used by businesses with reduced profitability and idle
assets that are not expected to be used, the book value was reduced to the recoverable value andthat reduced value was recorded as an extraordinary impairment loss of ¥3,506 million.
The impairment loss breaks down into buildings and structures at ¥507 million, machinery andequipment at ¥534 million, software at ¥1,894 million, and other at ¥569 million.
The DNP Group calculates the recoverable value of system-related assets and printing businessassets based on usage value. The value of these assets is shown as zero, due to the lack ofprospects for future cash flow from operating activities.
The recoverable value of other business assets is measured by the value in use or the net salable
value. Assets that are measured by their usage value are generally assigned a value of zero
because no future cash flows can be expected from them. Assets that are measured based on net
salable value are calculated according to the planned sale price. The recoverable value of idle
assets is measured according to the net selling price, which is calculated based on real estateappraisals, etc., but when it is difficult to calculate the selling price of idle assets, book value isreduced to the memorandum value.
[Consolidated statements of changes in net assets]
The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2021

Increase in
number ofshares during
the year
ended March
2021

Decrease in
number ofshares during
the year
ended March
2021

Number ofshares at theend of theyear ended
March 2021

Outstanding shares
Common stock
324,240,346––
324,240,346
Treasury stock
Common stock
43,359,344
4,444
118
43,363,670
Notes:The number of treasury shares of common stock increased by 4,444 shares due to the1.
repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 118 shares due to the sale of odd-lot
2.
shares.

-30-

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 26, 2020
Board of Directors’
meeting on
November 10, 2020

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,988

32

March 31,2020

June 29,
2020

Common stock

8,988

32

September 30,
2020

December 10,
2020(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends

Source ofdividends(Million yen)

General meeting ofshareholders on
June 29, 2021

Commonstock

Dividend
per share(Yen)

Retainedearnings

8,988

32

Dividend
record date

Effective
date

March 31,2021

June 30,
2021

The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2022

Increase in
number ofshares during
the year
ended March2022

Decrease in
number ofshares during
the year
ended March
2022

Number ofshares at theend of theyear ended
March 2022

Outstanding shares
Common stock
324,240,346–
7,000,000
317,240,346
Treasury stock
Common stock
43,363,670
11,811,597
7,000,153
48,175,114
Notes:The number of outstanding shares of common stock declined by 7,000,000 shares due to the1.
retirement of 7,000,000 shares of treasury stock.
The number of treasury shares of common stock increased by 11,811,597 shares due to the2.
repurchase of 11,806,600 shares decided on by the Board of Directors, and by 4,997 shares dueto the repurchase of odd-lot shares.
The number of treasury shares of common stock declined by 7,000,153 shares due to the3.
retirement of 7,000,000 shares, a decrease of 148 shares resulting from the sale of odd-lot sharesand by five shares due to a change in the DNP Group’s ownership stake in an equity-method
affiliate.

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 29, 2021
Board of Directors’
meeting on
November 12, 2021

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,988

32

March 31,2021

June 30,
2021

Common stock

8,655

32

September 30,
2021

December 10,
2021

-31-

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

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2022

Common
stock

8,610

Source ofdividends
Retainedearnings

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2022

June 30,
2022[Segment information, etc.](Segment information)
1. Overview of the reporting segments(1) Method of determining reporting segments
DNP’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
The DNP Group bases its business divisions on the products and services provided anddevelops its business activities based on a comprehensive domestic and overseas strategy foreach business division. The four reporting segments are Information Communication, Lifestyleand Industrial Supplies, Electronics, and Beverages.
(2) Products and services in each reporting segment
Each business segment’s specific products are listed under “2. Information on the DNPGroup.”
2. Method of calculating sales, income/loss, assets, and other items by reporting segment
The accounting method used for reporting business segments is generally the same as statedin “Basis of presenting consolidated financial statements.”
Reporting segment income figures are based on operating income. Inter-segment sales andtransfers are based on third-party transaction prices.
As explained in “Changes in accounting policies,” we began to apply the Accounting Standard
for Revenue Recognition, etc. as of the beginning of the fiscal year ended March 2022.
Because we changed our accounting method with respect to revenue recognition, we changed
our method of calculating income or loss for each segment accordingly.
As a result of this change, net sales for the fiscal year through March 2022 from Information
Communication decreased by ¥13,718 million compared to using the previous method, andthe segment’s income decreased by ¥180 million. Sales from Lifestyle and Industrial Supplies
decreased by ¥5,014 million and segment’s income declined by ¥61 million. Electronics sales
decreased by ¥7,304 million and the segment’s income fell by ¥59 million. Beverages sales
decreased by ¥2,297 million-32-

3. Information on sales, income/loss, assets, and other items by reporting segment
The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
Reporting segment

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

Notes:

1.

2.

(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialstatements Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

719,476
2,338
721,814
19,185
898,781

367,517489
368,006
13,965443,375

197,020–
197,020
36,690212,456

51,42517
51,443840
49,012

1,335,439
2,845
1,338,285
70,681
1,603,626–(2,845)(2,845)(21,151)
221,392

1,335,439–
1,335,439
49,5291,825,019

20,101

16,517

9,416

2,890

48,926

1,967

50,893

382

606

–

4

994

–

994

Beverages

Total

3,810

–

–

–

3,810

291

4,102

1,377

561

16,946–

18,88544,091

62,976

26,06730,024

11,987

1,931

70,011

1,638

71,649Figures are adjusted as follows.
(1) Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments
and the elimination of inter-segment transactions.
(3) Impairment loss adjustments are related to companywide assets not allocated to reporting
segments.
(4) Investments in equity-method affiliates are adjusted for investments not allocated to reporting
segments.
(5) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

-33-

4. Information on sales, income/loss, assets, and other items by reporting segment andincome analysis information
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
Reporting segment

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

Notes:

1.

2.
3.

(Million yen)Amounts
reported on
Adjustment
consolidated
Note 1
financialstatements Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

696,910
2,087
698,998
27,616883,220

386,447582
387,030
13,625
458,681

211,094–
211,094
46,480235,51449,694
6
49,700690
49,036

1,344,147
2,676
1,346,823
88,413
1,626,453–(2,676)(2,676)(21,624)
250,194

1,344,147–
1,344,147
66,7881,876,647

20,01318,442

8,694

2,087

49,237

1,916

51,154

488

–

22

10

521

–

521

3,087

158

–

2

3,248

258

3,506

2,579

620

24,081–

27,282

43,19270,47419,067

21,568

5,503

2,153

48,293

2,405

50,699Beverages

Total

Figures are adjusted as follows.
(1) Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments
and the elimination of inter-segment transactions.
(3) Impairment loss adjustments are related to companywide assets not allocated to reporting
segments.
(4) Investments in equity-method affiliates are adjusted for investments not allocated to reporting
segments.
(5) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.
Sales include revenues generated from contracts with customers as well as other revenues, but
because almost all revenues are generated from contracts with customers, the other revenues are
insignificant and are therefore not displayed separately.

-34-

(Related information)
The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,089,608
Notes:

1.
2.
3.

Asia

Other regions

183,929

Total

61,901

1,335,439

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
China, South Korea, Taiwan, Indonesia
Other:
United States, Germany, France, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,053,912
Notes:

1.
2.
3.

Asia

Other regions

218,894

Total

71,3391,344,147

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

-35-

[Per share information]
Year ended
March 31, 2021
(April 1, 2020 –March 31, 2021)

Year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)

Net assets per share¥3,716.85¥4,057.98

Net income per share¥89.32¥355.84

Diluted net income per share¥89.28¥355.79

Notes: 1. The basis for calculating net income per share and diluted net income per share is as follows.

(1) Net income per share
Net income attributable to parent company
shareholders
Amounts not attributable to commonshareholders
Net income attributable to parent company
common shareholders
Average number of common shares outstanding
during the fiscal year(2) Diluted net income per share
Adjustments to net income attributable to parent
company shareholders
Of which, impact of dilutive stock ofconsolidated subsidiaries and affiliates
Increase in common stockYear ended
March 31, 2021
(April 1, 2020 –March 31, 2021)

Year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)(Million yen)

25,08897,182(Million yen)––

(Million yen)

25,08897,182(Thousand shares)

280,879

273,105(Million yen)

(11)

(14)

(Million yen)

(11)

(14)

–

–

Year ended
March 31, 2021
(As of March 31,
2021)

Year ended
March 31, 2022
(As of March 31,
2022)

1,148,413
56,55256,552(Thousand shares)

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

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

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

1,098,613
54,63654,636(Million yen)

1,043,977

1,091,861

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

324,240
43,363

317,240
48,175(Thousand shares)

280,876

269,065(Thousand shares)

3. As explained in “Changes in accounting policies,” we began to apply the Accounting Standard
for Revenue Recognition, etc. from the beginning of the fiscal year ended March 2022. The
impact on net assets per share, net income per share and diluted net income per share for the
fiscal year ended March 2022 is insignificant.

-36-

[Significant subsequent events]
Repurchase of own shares
DNP resolved at its Board of Directors meeting on May 13, 2022 to repurchase DNP sharespursuant to Article 156 of the Companies Act of Japan, which applies pursuant to Article 165,
Paragraph 3 of the Act.
For details, see the May 13, 2022 “Announcement of Repurchase of Shares and Related Matters.”-37-

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

Year ended
March 31, 2021
(As of March 31, 2021)

Year ended
March 31, 2022
(As of March 31, 2022)

190,707
12,43426,852
220,541
–
2,577
8,612
1,117
43,837(249)
506,433

185,780
10,22728,572219,261
7
4,291
8,853
1,543
41,075(356)
499,255

406,351(282,066)
124,285
31,072(25,027)
6,045
538,330(489,237)
49,092
1,519(1,328)
191
50,677(42,655)
8,022
119,530
2,003
(948)
1,055
10,859319,081402,894(281,017)
121,876
30,650(24,857)
5,792
519,704(470,715)
48,9881,539(1,336)
203
50,572(43,135)
7,436
117,079
2,006(1,171)
835
21,610323,822

15,365
1,067
16,432

16,602
1,225
17,828357,335
141,901
1,597
65,153
19,382(9,516)575,853
911,368
1,417,801

342,041
139,809
1,578
84,78518,285(6,949)579,551
921,2021,420,458

ASSETS
Current assets
Cash and time deposits
Notes receivable
Electronically recorded monetary claims
Trade receivable
Contract asset
Merchandise and finished goods
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery
Accumulated depreciation
Machinery, net
VehiclesAccumulated depreciation
Vehicles, net
Equipment
Accumulated depreciation
Equipment, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in securities in affiliates
Investments in capital of affiliates
Prepaid pension costs
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-38-

(Million yen)

Year ended
March 31, 2021
(As of March 31, 2021)
LIABILITIESCurrent liabilities
Notes payable
Trade payable
Lease obligations
Accounts payable - otherAccrued expenses
Contract liability
Advances received
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Repair reserve
Notes payable for facilities
Other
Total current liabilities
Long-term liabilities
Bonds
Lease obligations
Asset retirement obligations
Long-term accounts payable
Provision for retirement benefits
Repair reserve
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for depreciation reduction of fixed
assetsOther reserves
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-39-

Year ended
March 31, 2022
(As of March 31, 2022)

11,986
194,317341
47,47816,925–
6,873
218,271
8,424
210
17,688647
971
524,136

12,404
196,380308
41,466
17,1182,848
22217,801
8,906
258
17,252526
1,778
517,074

100,000
785
1,503
5,404
9,641
49,491
79,899324
247,051
771,188

100,000
536–
5,370
10,56828,036
81,922
60
226,493743,567

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,30018

17232,780
54,597
310,695(122,890)
447,167

232,780
104,142360,240(133,093)
486,509

199,445

190,381

199,445646,612
1,417,801

190,381
676,890
1,420,458

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Equipment rental
Other
Total non-operating income
Non-operating expenses
Interest expense
Equipment rental expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on revision of retirement benefit plan
Gain on reversal of repair reserve
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on sale of investment securities
Loss on devaluation of investment securities
Affiliated company stock valuation
Other
Total extraordinary losses
Income before income taxes
Current income taxes
Deferred income taxes
Total income taxes
Net income-40-

Year ended
March 31, 2021
925,259
794,772
130,486
131,642(1,155)

Year ended
March 31, 2022
934,186
797,877
136,308
129,615
6,693

103
24,07428,0272,608
54,81396
43,86130,492
6,880
81,331855
22,312
2,780
25,94827,709374
23,7681,883
26,02561,999

332
1,853
–
–
–
2,185

6,251
12,117
9,545
14,674
2,101
44,691

2,519
3,371
4,853
2,812
681
181
14,42015,475
350
2,480
2,830
12,644

3,605
2,769
166
575
5,600
48
12,76593,925
880
6,016
6,896
87,029(3) Non-consolidated statements of changes in net assets
The year ended March 31, 2021 (April 1, 2020 – March 31, 2021)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

20

282,780

59,928316,028

1–

Cash dividends paid

(17,977)(17,977)

Net income

12,644

12,644(0)(0)

Balance at the beginning ofcurrent period
Changes of items during theperiod114,464

Capitalreserve

144,898

Other capitalsurplus

Total capitalsurplus

Legal reserve0

144,898

23,300

Reversal of reserve fordepreciation reduction of
fixed assets(1)

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

(0)

–

–

(0)

(0)

–

(1)

–

(5,331)(5,332)

114,464

144,898–

144,898

23,30018

232,780

54,597

310,695

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period
Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets(0)Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(122,881)

452,509

107,825

107,825

560,334––

Cash dividends paid

(17,977)(17,977)

Net income

12,644

12,644

(9)
0

(9)
0

Purchases of treasury stock
Disposal of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period(9)
091,62091,62091,620(9)(5,341)

91,62091,62086,278(122,890)

447,167

199,445

199,445646,612-41-

The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

18

232,780

54,597

310,695

(31)

(31)

54,566

310,664

1–

Cash dividends paid

(17,643)(17,643)

Net income

87,02987,029(0)(19,809)(0)(19,809)

Balance at the beginning ofcurrent period
Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes

114,464

114,464

Capitalreserve

144,898

144,898

Other capitalsurplus

Total capitalsurplus

Legal reserve–

144,898

23,300–144,898

23,30018

232,780

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

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

–

–

–

–

–

(1)

–

49,57649,575

114,464

144,898–

144,898

23,30017

232,780

104,142360,240

Valuation and translation
adjustments

Stockholders’ equity

Balance at the beginning ofcurrent period
Cumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes
Changes of items during theperiodTreasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(122,890)

447,167

199,445

199,445646,612(31)(122,890)

Reversal of reserve fordepreciation reduction of
fixed assets

447,136(31)
199,445

199,445646,581––

Cash dividends paid

(17,643)(17,643)

Net income

87,02987,029(30,012)(30,012)(30,012)00019,809–Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period–(9,063)(9,063)(9,063)(10,202)39,372(9,063)(9,063)30,308(133,093)

486,509

190,381

190,381

676,890(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]None-42-