DNP Group Sustainability Report 2004
April 2003 - March 2004

Produced byEnvironment & Product Liability Division
1-1, Ichigaya Kagacho 1- chome, Shinjuku-ku, Tokyo 162-8001, Japan
Tel : +81-3-5225-8480 Fax : +81-3-5225-8489 http://www.dnp.co.jp/
Next issue scheduled for release in September 2005.

Published: September 2004
© 2004. DNP

Editorial Policy
This year’s report• We have compiled descriptions of the production processes, the flowof materials, environmental impact, and products of each division.
• We have expanded coverage of corporate social responsibility efforts.
• This report has been composed according to the Ministry of theEnvironment’s “Environmental Report Guidelines, 2003 Edition”.
• We have continued to use the “Kensyou-Meidai Method” by Shin
Nihon Environment and Quality Management Research Institute forthe independent review of this report.

Scope of this report• This report covers a total of 48 companies and 59 sites. This includes
companies subject to consolidated reporting, i.e., all 45 domestic
production companies, 1 domestic distribution company, and 1
in-house food service company, and 1 company subject to reporting
according to the equity method.
Period covered in this report• This report covers during the period April 2003 ~ March 2004.
Areas covered in this report• The focus of this report is on environmental aspect with social part,and economic aspect also covered.

About the cover
In January 2000, 49 graphic designers and instructors from around the world
were invited to participate in the “Graphic Message for Ecology Exhibition” heldat two galleries managed by DNP, the “ggg” Gallery in Ginza, Tokyo, and the “ddd”
Gallery in Doujima, Osaka. This exhibition was a contest for creating a visualmessage for ecology in the 21st Century. The cover art for this report is one of theentries in that exhibition, created by Kari Piippo, a graphic designer from Finland.
The message incorporated by Piippo in this work is as follows:

We make choices in protecting both “nature” and our own environment.
Kari Piippo
Born in Finland in 1945. Studied at the Helsinki School of Industrial Art, active in
illustration and poster design. Recipient of many awards, including the Domestic
Industrial Art Prize, the Annual Graphic Artist Award, the Platinum Award,
the Mexico Biennale Gold Medal, the ICOGRADA Excellence Award, the Brno
International Biennale Chairman’s Award, and others. AGI member.

ggg
Graphic Message for Ecology
Exhibition

Contents> Message from the President ........................................................... 1> DNP Group’s Vision for the 21st Century-Contributing to the Creation of a Society with Emergent Evolution- ....... 2> DNP Corporate Profile..................................................................... 4> For Publication of the 2004 Report ................................................. 6> Environmental Management System............................................... 7• The DNP Group’s Environmental Philosophy ............................... 8• DNP Group’s Environmental Management:
The “Eco-Report System” ............................................................ 9• Management Activities — Groupwide Environmental Management
System....................................................................................... 11• Internal Environmental Audits.................................................... 12• Environmental Education ........................................................... 14> Special Features: Environmental Efforts of Each Division.............. 15• The Overall Environmental Impact of the DNP Group ................ 16• Information Communication Division......................................... 18• Lifestyle and Industrial Supplies Division................................... 22• Electronics Division.................................................................... 28> 2003 Environmental Performance................................................. 31• Results and Evaluations of Environmental Conservation............ 32• Reducing Environmental Pollutants ........................................... 34• Reduction of Environmental Impact of Chemicals...................... 36• Efforts toward Resource Recycling: Waste Reduction ............... 38• Efforts toward Resource Recycling: Recycling of used office paper .. 40• Efforts toward Resource Recycling: Water recycling...................... 40• Measures against Global Warming............................................. 41• Reduction of CO2 from Transport Operations ............................. 43• Environmental Risk Management............................................... 44• Monitoring and Measurement of Environmental Effects ............ 45• Promotion of Green Purchasing................................................. 47• Development and Sale of Environmentally-Conscious Products 48> Environmental Data ....................................................................... 49• Environmental Accounting ......................................................... 50• DNP Group PRTR Data by Site................................................... 52• Acquisition of ISO 14001 and Forest Certification...................... 55• Activities at Overseas Sites ........................................................ 56> Social Performance....................................................................... 57• Compliance with Laws and Ethics.............................................. 58• Relations with Customers and Trading Partners ....................... 60• Employee Relations.................................................................... 62• Relations with Investors and Shareholders................................ 67• Relation with Society ................................................................. 69• Relations with Local Communities............................................. 70> Targets for 2004 Activities............................................................. 71> Results of Environmental Efforts................................................... 72> Comparison with the 2003 Guidelines........................................... 73> Independent Review Report .......................................................... 74

Message from the President

Aiming for Sustainable Growth

Realizing a Sustainable Recycling-oriented Society
The DNP Group has been seeking to achieve its environmental goals by promoting the development and sale ofenvironmentally conscious products since 1999. In 2003, oursales of environmentally conscious products, mainly containers, packaging and construction materials, reached ¥140
billion. This is 4.6 times the ¥29.9 billion in sales of theseproducts that we reached five years ago, so we have greatly
exceeded our target amount.
Our corporate philosophy states that our goal is to “contribute to the creation of an intellectually active and rich 21st
century society with emergent evolution”. An “emergently
evolving 21st century society” will be a society in which people with various differing sets of values accept each other andwork together to stimulate the creation of hitherto unknown
values. In such a society, the increasing need for environmentally conscious products will create new demand, in turnstimulating incentives for further business development. All
employees of the DNP Group are making efforts to realize asustainable “recycling-oriented society” by taking a creative
approach to environmental issues both within and outside thecompany, and by making efforts to develop and create demandfor products with a low environmental impact.
Environmental Conservation Efforts
The DNP Group engages in publishing, commercial printing, and the manufacturing of packaging materials, construction materials, and electronics parts, using paper, plastics,
glass, and metal as raw materials. Our products are used in awide variety of activities.
The printing industry is one that produces based onorders from customers, and is characterized by being boththe processor of raw materials and an urban industry. Productdevelopment therefore requires the development of technologies that take into account not only the functions of theseproducts, but also the needs of consumers for environmental
conservation and product safety. In addition, the reduction
and recycling of the waste products associated with the mass
production of a wide array of products, as well as the preservation of the environment around production sites, are perennial issues.
We had an early start in our environmental efforts, leading the industry by establishing an Environmental Department
dedicated to dealing with environmental issues in August
1972. We have taken an aggressive approach to dealing withthe promotion of the sale of environmentally conscious products, reducing industrial waste, preventing global warming,and reducing hazardous materials by constructing our own
environmental management system, the Eco-Report System,in April 1993. These efforts were furthered by our creation in
March 2000 of the DNP Group Environmental Committee. As
a result, we have achieved striking results in the increase ofsales of environmentally conscious products and improvementin the waste recycling rate. In addition, we have reduced theemissions of toluene, a PRTR-listed chemical that is of particular concern in the printing industry, to just 2,000 tons in 2003,
down from more than 10,000 tons in 1999.
We have also been making positive efforts to disclose
environmental information, both through our Environmental
Repor ts, which we began publishing in 1998, as well as
through the mass media. We are serious about taking the opinions of all of our stakeholders into consideration in implementing our environmental policies.

Message from the President

Yoshitoshi Kitajima
Chairman of the Board
President & Chief Executive Officer

Improving Eco-efficiency
We redoubled our efforts to improve eco-efficiency in2004. We are making efforts to identify and eliminate all inefficiencies in our production processes through our Production
21 Efforts. In addition, we are making progress in improving
environmental performance in production by improving efficiency in the use of materials and energy, reducing the rate ofwaste of raw materials used, and reducing per-unit CO 2 emissions.
The DNP Group is working to realize a sustainable recycling-oriented society. To that end, we pledge to disseminate
environmentally conscious products, reduce the environmental
impact of business activities through efficient environmental
management, and fulfill our corporate social responsibilities as
an emergently evolving 21st century enterprise.

1

DNP Group’s Vision for the 21st Century— Contributing to the Creation of a Society with Emergent Evolution—

Management Concept

Business Vision
We are fully conscious of its
mission and responsibilit y to its
customers as their active business
partner, and through its “Production
Solutions” and “Business Design
Solutions”will resolve every issue
by supplying both valuable products
and services and original businessmodels.

“Production Solutions”
The DNP Group is determined to
be able to solve the issues involved
in innovations in its customers business, as a partner in the process of
its customers business, by supplying
a combination of products and services.

Corporate Culture
Corporate Conduct
1. Customers and People’s Lives
We will aim to create values that our customers and people intheir lives truly need and desire, conscious that each one of us is anindividual member of an emergently evolving society.

2. Observe, Listen and Think Carefully
We will detect and respond to what society truly needs correctly
and speedily, carefully observing conditions in the market and sitesof sales and production. We should be fully alert to the opinions andreactions of those places, and fully consider these in our response.

3. Independence and Collaboration
We will work together in a spirit of collaboration, taking responsibility for and pride in ourselves as self-reliant professionals. By
respecting the opinions that arise in an open atmosphere of collaboration between professional equals, we will foster mutual relations oftrust.

“Business Design Solutions”

4. Speed and a Spirit of Challenge

The DNP Group to go forward
and solve the issues of its customers
corporations and people in their lives
through designing and operating
diverse business models that discover new values.

We will strive both to respect the values of our coworkers as
professionals with regard to time, and to maintain a spirit of challenge,
so that we can always supply leading-edge products and services andplay a major role in the evolution and development of society.

5. Openness and Fairness
We will make positive efforts to win the appreciation of society
for our philosophy, vision, and policy, and by taking action in a spirit offairness as good corporate citizens, aim to become a company that isin tune with an emergently evolving society.

Society in the 21st century will undergo a process of
repeated and ongoing invigoration, in which, due to advances
in information technology, people with diverse values will both
recognize one another's differences and influence, stimulate
one another, and thereby create new values.
The society newly energized by these values will in turngive rise to further new values through synergies with its individual members. As a result of repeated synergies between
society and its parts, both society and its members will evolveand develop. This is what is meant by “emergent evolution.”“Emergent evolution,” which refers to the creation of
new values through the synergy between a society and theindividuals of which it is composed and provides for conditions in which it is possible for one-plus-one to make three,or even five. This, we believe, will be one of the distinguishingfeatures of the emergently evolving, 21st-century society.
We want to be a unique company whose combination of
products, service, and business structure will be necessary
to a 21st Century in which an emergently evolving society isdeveloped.

Providing solutions that are a synthesis of P&I
The P in P&I Solutions is Printing Technology, whichis the core technology that we have been developing in our
128 years of doing business. The I stands for IT (Information
Technology), which is vital to our contributing to the development of 21st century society with emergent evolution throughthe 2 kinds of solution (production solutions / business design
solutions).
We have been offeringsolutions to the challenges ofour various customers by providing a synthesis of “P” and“I”. Using our skill and knowhow, we are proving solutions
that will give bir th to newvalue for 21st century society
with emergent evolution.

The DNP Brand

The DNP mark now includes the implication that the DNPGroup's unique printing technology and diversity of operations
will enable it to contribute to the realization of an emergently
evolving society.
In order to gain wider recognition in society of DNP'sbusiness activities, we will continue to make every effort toget DNP more widely known as a brand and used in society asa symbol of the DNP Group.

Aiming to form group of professionals for therealization of society with emergent evolution

DNP Group’s Vision for the 21st Century

DNP Group’s Vision for the 21st Century

The DNP Group will contribute to the creation of
an intellectually active, rich,
21st century society with emergent evolution.

Society in the 21st century will be “emergently
evolving”

We believe that in order to contribute to the “realizationof society with emergent evolution”, we must ourselves be
conscious of our relationship with society, and become more
emergently evolving. In an emergently evolving enterprise,each individual must be a professional in his or own duties.
We believe that each employee must maintain pride and develop their individuality, and work to bolster those with whomthey work.
We have developed five keywords signifying our activity
guideline for developing an emergently evolving corporate culture.

Contributing to an emergently evolving society
We believe that our mission is to offer new value thatis tied to the future of society. Our desire is to contribute tosociety with emergent evolution through a richness of an intellectually enlivened 21st Century.
We are harnessing the overall power of our Groupthrough “P&I Solutions DNP” to realize our philosophy. We
are aiming to establish an emergently evolving corporate culture in which each individual can converse based upon his or
dreams and ideals, and in which we gain the trust of society
by acting as a good corporate citizen and engaging in fair business practices.

Concept Phrase“P&I Solutions DNP”

2

3

DNP Corporate Profile> Company Name

> Originally Founded> Head Office> Established

Dai Nippon Printing Co., Ltd.

January 19, 1894

> Capital¥114.464 billion> Employees

9,159 (DNP parent company)
34,514 (consolidated companies forthe printing business)

59 sites covered under this report
Hokkaido Sapporo
1 Hokkaido Dai Nippon Printing Co., Ltd. — Plate-making / printing / bookbinding manufacturing of packaging(BC* Division)
2 Head Plant, Hokkaido Coca-Cola Bottling Co., Ltd. — Beverage manufacturing (BC Division)

Miyagi Sendai
3 Tohoku Dai Nippon Printing Co., Ltd. — Plate-making / printing / bookbinding / manufacturing of packaging(BC Division)

50 locations in Japan
18 locations overseas (including
local affiliates)> Main Plants (including affiliates)
34 domestic plants
7 overseas plants> R&D Facilities

11 locations in Japan

Chiba Kashiwa
20 Kashiwa Plant, Dai Nippon Polymer Co., Ltd. — Molding, processing and printing of plastic containers (Lifestyle andIndustrial Supplies Division)
21 Dainippon Jushi Co., Ltd. — Manufacturing and processing of synthetic resin films (Lifestyle and Industrial Supplies
Division)

Tokyo Shinjuku-ku
22 Ichigaya Plant, Ichigaya Publication Printing Operations — Plate-making/printing plate/printing/bookbinding (Information
Communiction Division)
23 DNP Facility Service Co., Ltd. — Meal services, etc.
24 Enokicho Plant, Commercial Printing Operations — Plate-making/printing/bookbinding (Information Communication
Division)

Shinagawa-ku
25 SP Dai Nippon Co., Ltd. — Manufacturing of various advertising and promotional materials (BC Division)

Kita-ku
26 Akabane Plant, Ichigaya Publication Printing Operations — Printing (Information Communication Division)
27 Akabane Plant, Commercial Printing Operations — Plate-making/printing/bookbinding (Information Communication
Division)
28 Dai Nippon Seihon Co., Ltd. — Bookbinding (BC Division)
29 DNP Logistics Co., Ltd. — Packaging/shipping (BC Division)
30 Dai Nippon Hoso Co., Ltd. — Processing of filling and packaging (BC Division)
31 D.N.K Co., Ltd. — Printing and manufacturing of machine tools (BC Division)

Fuchu
32 D.T. Circuit Technology Co., Ltd. — Manufacturing of printed circuit boards (Electronics Division)

Kanagawa Tsuzuki-ku, Yokohama
33 Dai Nippon Printing Technopack Yokohama Co., Ltd. — Plate-making/printing plate/printing (Lifestyle and Industrial
Supplies Division)

Midori-ku, Yokohama
34 Tokyo Plant, The Inctec Inc. — Manufacturing of ink, varnish, pigments and dyes (BC Division)

Fukushima Izumizaki, Nishi Shirakawa-gun

Odawara4 Izumizaki Plant, Dai Nippon Printing Technopack Co., Ltd. — Plate-making / printing plate / printing (Lifestyleand Industrial Supplies Division)

35 Sagami Yoki Co., Ltd. — Manufacturing of laminated tubes (Lifestyle and Industrial Supplies Division)

Aikawa, Aiko-gun

Tochigi Utsunomiya

36 Tokyo Plant, Dai Nippon Ellio Co., Ltd. — Printing and processing of metal sheets (Lifestyle and Industrial Supplies
Division)

5 DNP Graphica Co., Ltd. — Printing /bookbinding (Information Communication Division)

Ibaraki Ushiku

Saiwai-ku, Kawasaki

6 Ushiku Plant, DNP Data Techno Co., Ltd. — Manufacturing of various types of plastic cards (Information
Communication Division)

37 DT Fine Electronics Co., Ltd. — Manufacturing of semiconductor photomasks (Electronics Division)

Gifu Nakatsugawa-shi

Saitama Otone, Kita Saitama-gun

38 DNP Technopack Tokai Co., Ltd.—Manufacturing/printing/processing of packaging (Lifestyle and Industrial Supplies
Division)

7 F.D.P. Dai Nippon Co., Ltd. — Manufacturing of electronic parts for displays (Electronics Division)

Shiraoka, Minami Saitama-gun
8 Shiraoka Plant, Dai Nippon Offset Co., Ltd. — Offset printing (Information Communication Division)

Kawaguchi
9 Kawaguchi Plant, Dai Nippon Offset Co., Ltd. — Offset printing (Information Communication Division)

Miyoshi, Iruma-gun

Aichi Moriyama-ku, Nagoya
39 Tokai Dai Nippon Printing Co., Ltd. — Printing/bookbinding/manufacturing of packaging (BC Division)

 Dai Nippon Butsuryu System Ichigaya Co., Ltd. iscovered as a division of the plants under the Ichigaya
Publication Printing Operations (Ichigaya Plant, Gotanda
Plant, Tsuruse Plant, Kuki Plant and the Akabane Plant)
 DNP Media Create Co., Ltd. and Dai Nippon Butsuryu

System Shoin Co., Ltd. are covered as a division of the
Enokicho Plant, Commercial Printing Operations
 Dai Nippon Total Process BF Co., Ltd. is covered as adivision of the Warabi and Nara Plants, Business Forms(BF) Operations

 Dai Nippon Micro Technica Co., Ltd. is covered as a

43 DNP Data Techino Kansai Co., Ltd. — Plate-making/printing/processing (Information Communication Division)

Kyotanabe
42 Tanabe Plant, Dai Nippon Printing Technopack Kansai Co., Ltd. — Plate-making/printing plate/printing (Lifestyle and Industrial Supplies Division)

Nara Kawanishi, Shiki-gun
Osaka Hirakata
44 Kansai Plant, The Inctec Inc. — Manufacturing of ink, varnish, pigments and dyes (BC Division)

Neyagawa

covered as a division of the Warabi Plant, BF Operations
division of the Kamifukuoka Plant, Dai Nippon Printing
Fine Electronics Co., Ltd.
 Of the companies treated as consolidated companies

under financial accounting practice, we excluded 9
companies without manufacturing divisions, such as
DNP Trading Co., Ltd.
 Of the non-consolidated subsidiaries to which the

Equity Method applies, DAP Technology Co., Ltd., for its
importance, has been treated as a consolidated affiliate.

45 Neyagawa Plant, DNP Media Create Kansai Co., Ltd. — Printing (Information Communication Division)
46 Kansai Plant, Dai Nippon Polymer Co., Ltd. — Molding, processing and printing of plastic containers (Lifestyle andIndustrial Supplies Division)
47 Osaka Plant, Dai Nippon Ellio Co., Ltd. — Printing and processing of metal sheets (Lifestyle and Industrial Supplies
Division)

Kamifukuoka

Higashinari-ku, Osaka

17 Dai Nippon Printing Fine Electronics Co., Ltd./Kamifukuoka Plant, Dai Nippon Printing
Precision Device Co., Ltd. — Manufacturing of electronic precision parts(Electronics Division)

48 Osaka Plant, DNP Media Create Kansai Co., Ltd. — Plate-making/printing plate/bookbinding (Information Communication
Division)

Hyogo Kita-ku, Kobe

Kuki

49 Kobe Plant, Dai Nippon Printing Kenzai Co., Ltd. — Plate-making/printing plate/printing/ processing (Lifestyle and Industrial
Supplies Division)

18 Kuki Plant, Ichigaya Publication Printing Operations — Printing/bookbinding(Information Communication Division)
19 Dai Nippon Printing Fine Electronics Co., Ltd./Kuki Plant, Dai Nippon
Printing Precision Device Co., Ltd. — Manufacturing of electronic
precision parts (Electronics Division)

Ichigaya Co., Ltd., Dai Nippon Uni Process Co., Ltd.,
Wakosya Co., Ltd. and Dai Nippon Techtas Ichigaya Co.,
Ltd. are covered under a portion of the Ichigaya Plant,
Ichigaya Publication Printing Operations

Ukyo-ku, Kyoto

Warabi14 Sayama Plant, Dai Nippon Printing Technopack Co., Ltd. — Plate-making/printing plate/printing (Lifestyleand Industrial Supplies Division)
15 Dai Nippon Cup Co., Ltd. — Molding or processing of various types of paper containers/processing (Lifestyleand Industrial Supplies Division)
16 Sayama Plant, I.M.S. Dai Nippon Co., Ltd. — Manufacturing of thermal transfer carbon ribbons (Lifestyleand Industrial Supplies Division)

 Dai Nippon Art Co., Ltd., Dai Nippon Total Process

 DNP Techtas BF Co., Ltd. (plate-making & printing) is

40 Kyoto Plant, Dai Nippon Printing Fine Electronics Co., Ltd. — Manufacturing of electronic precision parts (Electronics Division)
41 Kyoto Plant, Dai Nippon Printing Technopack Kansai Co., Ltd. — Plate-making/printing plate/printing (Lifestyle andIndustrial Supplies Division)

SayamaOther Domestic Consolidated Affiliates

Kyoto Minami-ku, Kyoto

10 Tsuruse Plant, Ichigaya Publication Printing Operations — Plate-making/printing plate/printing/bookbinding(Information Communication Division)
11 Tokyo Plant, Dai Nippon Printing Kenzai Co., Ltd. — Plate-making/printing plate/printing/processing(Lifestyle and Industrial Supplies Division)
12 Tokyo Plant, Dai Nippon Printing Kenzai Co., Ltd. — Plate-making/printing plate/printing/processing(Lifestyle and Industrial Supplies Division)
13 Warabi Plant, Business Form Operations — Plate-making/printing/processing (Information Communication
Division)* BC (Brother Company): Affiliate companies that
manufacture products not related to the group’s
Information Communication, Lifestyle and Industrial
supplies, and Electronics divisions or related toseveral divisions.

DNP Corporate Profile

DNP Corporate Profile

1-1, Ichigaya Kagacho 1-chome
Shinjuku-ku, Tokyo 162-8001,
Japan
Tel: +81-3-3266-2111
URL: http://www.dnp.co.jp/
E-mail: info@mail.dnp.co.jp

October 1876

> Sales Offices

Ono
50 Ono Plant, DNP Media Create Kansai Co., Ltd. — Plate-making/printing/bookbinding (Information Communication Division)

Okayama Mitsu, Mitsu-gun
51 Okayama Plant, I.M.S. Dai Nippon Co., Ltd. — Manufacturing of sublimation transfer materials (Lifestyle and Industrial
Supplies Division)
52 Okayama Plant, Dai Nippon Printing Kenzai Co., Ltd. — Plate-making/printing plate/printing/processing (Lifestyle andIndustrial Supplies Division)
53 DNP Industrial Materials Co., Ltd. Okayama Plant — Manufacture of electronic parts, etc. (Lifestyle and Industrial Supplies
Division)

Hiroshima Mihara
54 Mihara Plant, Dai Nippon Printing Precision Device Co., Ltd. — Manufacturing of electronic precision parts (Electronics
Division)

Tokushima Tokushima
55 Shikoku Dai Nippon Printing Co., Ltd. — Plate-making/printing/manufacturing of packaging (BC Division)

Fukuoka Kita-Kyushu
56 Advanced Colortech, Inc. — Manufacturing of color filters (Electoronics Division)
57 DAP Technology Co., Ltd. — Manufacturing of rear panels for plasma (Electoronics Division)

Minami-ku, Fukuoka
58 Fukuoka Plant, Kyushu Dai Nippon Printing Co., Ltd. — Plate-making/printing/bookbinding/manufacturing of
packaging (BC Division)

Overseas Consolidated Manufacturing Affiliates
 DNP IMS (America) Corp. (US, processing thermaltransfer ribbons)
 DNP Electronics America, LLC (US, manufacturing andsales of precision electronics parts)
 DNP Denmark A/S (Denmark, manufacturing and salesof precision electronics parts
 Tien Wah Press (Pte.) Ltd. (Singapore, plate-making/printing/bookbiding) PT DNP Indonesia (Indonesia, plate-making/printing/bookbiding, manufacturing and sales of packaging)
DNP Photomask Europe S.p.A. (Italy, manufacturing andsales of precision electronic parts), which began operations in October 2003, is in the process of preparing fordata compilation, and will begin compiling data in 2004.

Chikugo59 Chikugo Plant, Kyushu Dai Nippon Printing Co., Ltd. — Plate-making/printing/bookbinding/manufacturing of
packaging (BC Division)

45

For Publication of the 2004 Report

We are making progress in reducing
VOC emissions.
For Publication of the 2004 Report

Kenji Noguchi
Director
Chairman of the DNP Group Environmental Committee

The DNP Group began publishing environmental reports
in 1998. Our goal in doing so is to inform the public about ourmanagement policies concerning environmental issues, toreport the details of the environmental impact caused by ourbusiness activities, and our approach, efforts, and results in
reducing that environmental impact. We hope to gain the public’s understanding of our environmental efforts in this way.
Our editorial policy in each year of publication has been toprovide reliable and easily understood information. In the 2004
edition, we are providing information for each division concerning the flow of materials, the kinds and degree of environmental impact, efforts to reduce environmental impact, and thedevelopment of environmentally conscious products, so as tomake the relationship between our environmental conservation
efforts and production even easier to understand. As we havesince 2002, we have again this year implemented a third-party
review of the report, using the “Kensyou-Meidai Method”, so
as to ensure even greater reliability of the data included in thereport. The 2004 edition also includes a “Social Responsibility
Performance” section describing the corporate social responsibility efforts and results of the DNP Group. The title of thereport has been changed to the “DNP Group Sustainability
Report”.
Main efforts made in 2003
The results of efforts to achieve the 2003 environmental
targets are listed on pages 32 and 33.
With regard to one of the main themes for 2003, thedevelopment and sales of environmentally conscious products,
while a 10% increase is listed as the 2003 target, this wasbroadly exceeded by an increase of 32%. We also made steadyprogress in reducing the amount of PRTR-listed substances
emitted and/or transported. In particular, while the target for
air emissions of toluene is listed as a reduction to 500 tonsor less for the Group as a whole by March 2005, emissionsfor 2003 were reduced to 2,000 tons. Nevertheless, we were
not able to post successful results regarding the reductionof materials waste or the reduction of emissions of greenhouse gases, due in part to an increase in the number of our

6

production sites. Currently we are making progress with our“Production 21 Efforts” for eliminating all inefficiency from our
production processes, and we will continue to make efforts
in 2004 to improve resource efficiency and reduce waste andgreenhouse gas emissions despite the increase in production
sites.
Coming challenges
The Air Pollution Control Law was revised in June 2006,
with text added concerning the regulation of air emissions of
VOCs (Volatile Organic Compounds). This revision is aimed at
reducing SPM (Suspended Particulate Matter) and photochemical oxidants, with the national goal set at the reduction of VOCemissions from fixed sources by 30% by 2010 in comparison
with 2000. The majority of ink used in printing uses VOCs asa quality improvement agent, therefore necessitating the useof collection or elimination equipment so as to reduce the VOC
emissions into the air. We recognize that VOC measures are an
urgent issue, and since 2002 we have instituted controls on all
VOCs, not only those that are listed in Category 1 in the PRTR
Law. We are taking this revision of the law as an opportunity
to establish a target of 50% reduction of VOC emissions for
the Group as a whole by 2005, and will redouble our efforts toachieve it.

Environmental Management System

Environmental Management System

We implement the “Eco-Report System”, which is an
original management system based upon the Groupenvironmental philosophy that is the foundation of
our environmental efforts.

[Contents] The DNP Group’s Environmental Philosophy ................................................... 8

DNP Group’s Environmental Management: The “Eco-Report System” ............ 9
Management Activities — Groupwide Environmental Management System.... 11Internal Environmental Audits......................................................................... 12
Environmental Education................................................................................ 14

7

The DNP Group’s Environmental Philosophy

DNP Group’s Environmental Management: The “Eco-Report System”

Practice of environmental management

The DNP Group’s Environmental Philosophy

Developed by the DNP group as a means of achieving the group’s environmental targets, the Eco-Report System
is an original environmental management system that forms the basis of the group’s environmental management
activities. The DNP group practices ongoing group-wide environmental activities, incorporating ISO 14001-certified systems that take into account the characteristics of each business domain, based on our Eco-Reportenvironmental management system. PDCA (Plan->Do->Check->Action) is developed over biannual cycle using
three tools- the DNP Group Eco-Report, the Site Eco-Report, and the Environmental Guidelines- and is directly
connected to the making of continuous improvements. Also, we are expanding the effort themes from challenges
that focus on manufacturing plants to include items such as development and sales of environmentally conscious
products and green purchasing. Our aim is to be clearly recognized as an enterprise that practices real environmental management in contributing to the realization of a recycling society.

Eco-Report System

In 1992 the DNP group adopted a commitment to the environment, declaring its intention to strive to protect the global environment and use resources effectively within the DNP group Code of Conduct, which is used as a guideline by all employees.

Media

Employees

Management Concept
NGOs“We will make every effort to protect the prosperity and future of the human race by protecting the environment andusing resources effectively.”

DNP Group Environmental Targets(DNP Environmental Committee)

DNP group
Eco-Report

DNP group
environmental
reportBi-annual issue

Annual issue

Promotion officeEnvironmental policies
of each site

Government
Authorities

DNP Group Eco-Report

Environmental organizationand chain of command

Plan
ActionBased on the social trends concerning environmental issues,
the DNP Group’s semiannual
activity policies and the site ecoreports, the promotion office of
the DNP Group’s Environmental
Committee (Environment &Product Liability Department)
publishes a summary of all theenvironmental activities of theentire DNP Group twice a year
(April and October).

Site Eco-Report

1 Each member of the DNP Group establishes and periodically reviews its own environmental policies and environmental
targets, and puts into effect continuous improvement of its activities and the prevention of environmental pollution.
2 For all construction projects, and before designing and commissioning new facilities, we carry out a full and detailed
environmental survey to assess the impact that the project will have on the environment, to make proper efforts to protect the environment.
3 When carrying out research, development and design for a new product, we consider the impact of the product on theenvironment throughout its life cycle, including the ordering of raw materials, production, distribution, use, and disposal. We give special consideration to energy conservation, resource conservation, and reducing the use of harmful
chemicals.
4 When purchasing raw materials, stationery, and equipment, we choose items that are ecologically-friendly and easy torecycle.
5 In manufacturing a product, we aim to comply with environmental laws and regulations, and moreover we set up more
stringent standards to reduce the emissions of pollutants into the air, watershed, and soil, and to prevent unpleasantodors, noise, vibration, and land subsidence. We are constantly improving facilities, techniques and manufacturing
processes to promote the targets of energy conservation, resource conservation and the reduction of industrial waste.
6 When generating waste from business operations, we strive to achieve zero emissions by separating and recycling
waste as much as possible.

Shareholders

DNP Group’s Environmental Policies

Environmental Guidelines

The DNP Group’s efforts are directed towards the continuous prosperity of a world economy with limited resources andfor the development of a society that recirculates resources. The DNP Group is making every effort to minimize theimpact our business operations have on the environment, and this includes compliance with environmental laws andregulations as well as recognizing the relationship that each of our business activities has to the environment.

Consumers

To various stakeholders

Operation Group Environmental Targets(Operation Group Environmental Committee)
Promotion office

The DNP Group’s Environmental Policies

Customers

DNP Group Corporate Pledge

Today we face the serious issue of how to protect the global environment. Due to the dramatic economic growth ofrecent years, our ecosystem is being destroyed through the depletion of the ozone layer, global warming, increasing volumes of industrial waste, and the careless consumption of natural resources. As a result, our earth’s circulatory system
is beginning to be affected. These problems, together with the rapid depletion of natural resources, should be a sourceof concern, since they threaten our daily life and may even stifle economic growth. We will act aggressively in addressing environmental issues, using our comprehensive technological resources to safeguard the prosperity and future of thehuman race. (Excerpt from the DNP Group’s Codes of Conduct)

8

Local
Citizens

Banks

Environmental Management System

Environmental Management System

Since the establishment of the Environment Department of DNP in 1972, the DNP group has promoted environmental conservation activities. In 1992 we established our Environmental Commitment. In 1993, we began fullfledged environmental management activities, following the establishment of our Eco-Reporting System, thegroup’s original environmental management system. Furthermore, in March 2000 we strengthened our conservation activity promotion system with the establishment the DNP Environmental Committee. In May 2001, we made afresh start, establishing the DNP Group’s Vision for the 21st Century, and adopting a corporate philosophy of “theDNP Group will contribute to the creation of an intellectually active, rich, and 21st century society with emergent
evolution.”
At DNP group, we aim to develop a better relationship with society, functioning as a good corporate citizen,
aiming to realize a recycling oriented society while becoming a better partner with extensive community involvement.

Do

Check
Site Eco-Report

Internal environmental audit (Eco-Audit)

Environmental Guidelines
This publication describes
various standards and guidelines (such as industrial waste
processing standards, energy
conservation standards, voluntary inspection standards forenvironmental conservation,
standards for office waste sorting and collection, and EcoAudit checklists) for establishing
the Eco-Report System.

This report serves as a registryof environmental management
activities. Each DNP businesssite must submit it twice a year
(April and October).

9

Management Activities — Groupwide Environmental Management System
DNP Group’s Environmental Management System (EMS)

Implementing Activities at the Site
When implementing specific activities, each site conducts
environmental management activities as stipulated in the DNPGroup’s environmental guidelines. Activities are recorded monthly
in a Site Eco-Report. On a six month basis, results are assessed
and targets are set for the next six month period. In addition, site
activities are audited once a year to ascertain if they comply withlegal regulations and to see the achievement of targets for the overall Group. This is done to ensure the improvement of environmental
management activities.

Environmental Committee
August 28, 2003
DNP Group environmental accounting report 2002
March 26, 2004
• DNP Group Chemical Management Standards• Reduction target of total VOC emissions• Decision of eco-efficiency target

The DNP group environmental management organization comprises the DNP Environmental Committee, which
oversees the activities of the entire group, the environmental committees of each operation group, and promotions
offices which are placed under each committee. The DNP Environmental Committee comprises Managing Directors
from the Head Office core executives. The committee determines the environmental policy and targets for the entire
DNP group while taking into account social trends and activities of each business area, discusses and resolves
proposal plans, and checks the state of progress of plans and targets. The items determined by the Environmental
Committee are relayed through the promotions offices (Head Office), to the environmental committees of each operations group, where they are implemented taking into account the characteristics of each business area, the results ofwhich are compiled into Site Eco-Reports.

DNP Group Environmental Management Structure(As of March 31, 2004: Cumulative total, including persons holding concurrent posts.)

President• Produced Site Eco-Report for term ending Sept. 2003
(Record of site activities from Apr. to Sept. 2003)

Chairman: Managing Director of the Technical Division and the Environment& Product Liability Department
Members: Managing Directors from the Head Office core executives

DNP Environmental Committee• Produced Site Eco-Report for term ending March 2004
(Record of site activities from Oct. to Mar. 2003)

1 Deliberation and decision on DNP Group’s environmental policies, targets and plans
2 Approval of policies, targets and plans for each environmental committee in each operations group
3 Check and follow-up of plans and achievement of targets for each environmental committee in each
operations group
4 Committee meets once every three months• Environmental audit “Eco-Audit” implemented• Released DNP Eco-Report No. 21(Record of site activities from Apr. to Sept. 2003)

1 Proposes DNP Group’s environmental policies, targets and plans and reports them to the committee
2 Reports the policies, targets and plans decided upon by the DNP Group’s Environmental Committee toeach environmental committee in each operations group and does a progress check and supports activities
3 Reports on the activities (achievements, plans in progress) of each environmental committee in each
operations group to the DNP Group’s Environmental Committee• Released DNP Eco-Report No. 23(Record of site activities from Oct. to Mar. 2003)

Environmental Committee in Each Operations Group

Past Eco-Reports (22 issues in the past)

1 Proposes operations group’s environmental policies, targets and plans and reports them to the committee
2 Reports the policies, targets and plans decided upon by each environmental committee in each operations group to all sites and does a progress check and supports activities
3 Reports on the activities (achievements, plans in progress) of all sites to the committee

We have used “ENASUS”, environmental accounting software,

287

Manager: Full-time or others
Members: Department managers in operations

Promotion Officesince 2002 for compiling environmental costs for each year. This28

31 Operations Group Environmental Committees
Chairman: Operations managers
Members: Department managers in operations managers of manufacturing
affiliates

1 Deliberation and decisions on environmental policies, targets and plans for the operations group
2 Check and follow-up of plans and achievement of targets for each environmental committee in each
operations group
3 Regular committee meetings

Example of improvement of Eco-Report system

8Manager: Manager of Environment & Product Liability Department
Members: Managers of the basic operations in the head office, members of
the Environment & Product Liability Department, and members of
the Technical Division

Promotion Office

Flow for the Disclosure of Environmental Information
The head office’s promotion office publishes DNP Group EcoReport covering companywide activities twice a year, based onchanges in social environmental trends and the Site Eco-Reports
from each operations. This is the Group’s white paper on environmental activities. Following publication of the report, management
goes out to each site to resolve problems at a particular site or the
positioning of each problem within the Group for the purpose of
mutually understanding environmental information and pinpointing
important issues that exist among operations. The paper also supports the sharing of information and ascertaining future key topics.
Furthermore, once a year, this DNP Group Sustainability Report ispublished to inform of our environmental management activities
over the past year.

Environmental Management System

Environmental Management System

Environmental Policies and Targets
The DNP Group’s environmental policies and targets are decided by the DNP Group’s Environmental Committee at its head office
and reviewed on a regular basis in light of global and customer
trends, and the status of companywide activities.
The policies and targets specified herein are widely communicated throughout the company from the head office’s promotion
office to the environmental committee and promotion office in each
operations.
The environmental committee of each operations then establishes its own policies and targets based on those passed downfrom the head office and in consideration of business trends. It thencarries out specific activities based on each division’s policies andtargets.

254

makes it easy to ascertain the total cost for each environmental
effort, and also allows for prompt compilation.

Technical and Manufacturing Group

Environmentally Conscious Products Development GroupRegional Measures Group

Environmental Conservation and PRTR Group

Office and Work Environment Group

Industrial Waste Reduction Group59 sites

763

Energy Conservation Group
Each Site of the Operations Group1011

Internal Environmental Audits

In 2003, there were 33 items mentioned in the “Eco-Audit” as “Improvement Required”, which is the strictest
category. This is 12 fewer such items than in last year’s audit.

Internal Environmental audit (Eco-Audit) Results

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

Document Audit• Site location• Type of waste• Type & number of statutory facilities• Energy consumption• Exhaust and wastewater channels• Changes in facilities, production processes since the last audit• Applicable laws
• State of improvement of notifications of deficiencies in previous audit• State of submission of statutory notifications, reports and changes• Frequency of measurement; validity of measured data
• Changes in management personnel due to internal transfers

Confirmation of validity of site policy and established targets• Performance in previous term
• Consistency with DNP group policy• Continuity with performance in previous term
• Validity of established targets
Confirmation of validity of implementation programs• Consistency between targets and programs• Effectiveness of the programs• Possibility of the programs• Possibility of fulfillment of the programs• Promotion system and schedule
Confirmation of achievement of implementation items, performanceand targets• Records of activities performed• State of progression of the programs• Effects of the programs, performance of indicators and achievement oftargets

Steps in Eco-Audit

(FY)

Air

Preparation & notification of annual plan Promoted by Head Office
Auditing teamFormation of auditing team

Water

Adjustment of auditing scheduleVibration

Preparation of audit notification

Odor
Waste
EnergyDioxinOriganization*
Total
Inspection

Operations Audit

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

Noise

Examining paperwork

Compliance Audit*Pollution prevention organization

Auditing team,sites subject to audit
Eco-Audit Notification

Notification to sites of impending audit(1 month in advance)

Head Office Manager

Performance of eco-audit

Auditing teams, audited sites

Lead Auditor
Auditor
Auditor

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

Auditor’s pre-audit meeting

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

Open meeting

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

Confirmation of documentation

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

Type of Notifications and Corrections Issued in Eco-Audit

DNP Group Eco-Audit checklist; Record of correction and measures performed sheets from previous audit

Type of Notifications

Corrections

Site confirmation

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

Improvement required:

Submission of written description of correction measures
performed or improvement plan

Auditor’s meeting

Preparation of Audit Report and Requests for Improvement Measures

Improvement consideration & examination:

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

Closing meeting

Description of audit results and content of requests for improvements

Inspection

Audit Report and Requests for Improvement Measures

Acceptance of Audit Report and Requests for Improvement Measures
Audited site manager

Correction Measures Performed sheet

2003 Eco-Audit Performance

12

Environmental Management System

Environmental Management System

The Eco-Audit was conducted at 55 sites in 2003 (in comparison with 54 in the previous year). Of the sites designatedfor disclosure in this report (please refer to pages 4 and 5), trial
audits were conducted at Advanced Colortech, Inc. and DAP
Technology Co., Ltd. The audit of D.T. Circuit Technology Co.,
Ltd. was postponed. The Production Division of DNP Facility
Service Co., Ltd. was not conducted, with an audit of the Food
Service Division conducted in accordance with HACCP.
The audit resulted in 33 items noted as Improvement
Required, which is 12 fewer such items than in last year’s audit (45 last year, 93 two years ago). 259 Improvement
Examination or Consideration notifications were issued, 18
fewer than last year (241 last year, 246 two years ago).
Certain Improvement Required items, such as insufficientlabeling in waste storage areas or lack of change notification for designated facilities, were items in conflict with legal
requirements.
Sites for which Improvement Required or Improvement
Examination or Consideration notifications were issued are
required to submit Correction Measures Performed reportforms, and confirmation is being made that corrective measures have been taken regarding notification items.

Eco-Audit Contents

Completion of Eco-Audit

Preparation of Correction Measures Performed sheet

Number of sites audited:

55 sites

Number of attendees at sites:

414 persons

Cumulative auditor number:

119 persons

ReportAuditing team Chief Auditor

Cumulative auditing hours:

576 hours

Approval

Head Office Promotions Office Manager

Number of qualified Eco-Auditors:

92 persons

Approval

Head Office Environmental Committee Chairman

Approval

Audited site Promotions Office Manager

Approval

Audited Site Environmental Committee Chairman

Audited site

13

Environmental Education

The DNP group performs environmental education, with separate courses for different employee ranks, job categories and function. The courses cover internal and domestic trends concerning environmental problems, knowledge
and laws, as well as DNP’s conservation efforts. We provide this education to improve our employees’ awareness ofenvironmental matters and to provide the opportunity to gain the knowledge and management know-how required toachieve environmental targets.
Environmental Management System

Environmental Education implemented in 2003
In 2003, we implemented group study programs
such as “Dealing with the Environment”, which is a training program for new hires (354 in attendance), and “DNP’s Environmental Response”, a technical seminar for technicians (198 in attendance). We also held a network learning
program accessible from individual computer terminals,
entitled “Environmental Issues and Business” (2,055 participants). Three courses were offered via “CAPA”, the distancelearning program: “Earth-Friendly Environmental Seminar”,“You Can Understand ISO 14001: An Introduction”, and “LCA
and Environmental Labels” (15 participants).
“Eco -Report Training” is conducted at each site in
May and November for persons responsible for the environment. Topics taken up this year were “Hazardous SubstanceManagement” and “VOC Reduction Measures”, with thelatest information concerning the activities of electronics
manufacturers and the DNP Group concerning hazardous
substance management, and VOC regulatory trends andmeasures (total of 1,001 participants).

Trainings and Cours

Network Learning“Environment and business”

CAPA leaflet

Year began

Education for Employees Joining the Company:
Course name: Environmental Activity Overall (required)
1994
Description: Basic environmental knowledge and conservation efforts of the DNP group
Eligibility:
All new employees; upon entering the company

Total participants es

2,871

Technical Seminar:
Course name: How DNP Deals with the Environment (required)
1997
2,080
Description: Basic knowledge of the environment issue, its impact and improvement means such as environmental preservation equipment
Eligibility:
Technicians; at the 2nd year of employment
Technical Seminar:
Course name: Environment (optional)
Description: Environmental laws and regulations
Eligibility:
Technicians; at irregular intervals

1999

104

Network Learning:
Course name: Environmental Issues and Business (required)
2000
6,372
Description: Environmental information to be used when presenting customers with proposals concerning environment-oriented businesses
Eligibility:
Employees with more than 2 years experience in the sales and planning divisions; semiannually
Correspondence Course:
Course name: various courses offered each year (optional)
Description: Primer on ISO 14001 and LCA
Eligibility:
All employees of DNP Group—15 (in FY2003)

Eco-report Training:
Course name: Environmental Issues of the Group (required)
1993
1,001 (in FY2003)
Description: Domestic & international trends in environmental issues, revisions in environmental laws, degree of achievement of environmental
targets, new targets, issues concerning specific sites
Eligibility:
Site members and factory-related personnel ofthe operations group environmental committee; twice a year upon issuing of the
Eco-Report
Environmental Communications:
Course name: Risk Communications (required)
2002
263
Description: Evaluating health risks of chemical substances, methods of reducing emissions, disclosure of data concerning such substances
Eligibility:
Site members of the operations group environmental committee; at irregular intervals

14

Special Features: Environmental Efforts of Each Division

Special Features: Environmental
Efforts of Each Division

We are posting the materials f low that makes it
possible to understand the environmental impact of the
DNP Group overall. We have also divided our business
into three areas, and have made it easy to understandthe environmental impact and details of the work donein each area.

[Contents] The Overall Environmental Impact of the DNP Group.................................... 16
Information Communication Division .............................................................. 18
Lifestyle and Industrial Supplies Division ....................................................... 22
Electronics Division ........................................................................................ 28

15

The Overall Environmental Impact of the DNP Group

Division is large, while consumption of water and emissions ofwastewater per unit of production in the Electronics Division islarge. In addition, when measuring unusable materials per unitof production, there is little difference between divisions, while
the in the Lifestyle and Industrial Supplies Division, emissionsof greenhouse gas per unit of production is relatively large.
In 2003, We proceeded to install deodorizing equipment
for our incinerators and solvent recovery equipment as countermeasures against foul odors at our facilities. Also, the IMS
Dai Nippon Co., Ltd. Sayama Plant has switched from fuel oil
to municipal gas. This has resulted in less use of fuel oil andreduced SOx emissions. We have also reduced the volume ofwaste produced and the final disposal volume through efficient
production and effective use of waste products.

Results of evaluation based on eco-balance(Unit: points)
12,000

10,3901,700

10,000BC (Brother Company) Division

6,000

7,110

4,000

1,681 431
800
210
240

180
240
720 21090

2,000

Utility production stage

BC
5.7
0.8
22.5
18.7
1.1

Information
Communication
Division* “Production” is indicative of business activity, and represents the total amount of added-value forcompanies subject to disclosure in this report.

55

DNP Group production

Lifestyle and Industrial
Supplies Division

Amount of solvents
recycled
Amount of acids
and alkalis recycled

Product
Manufacturing
Process

Amount of water recycled

Displays
Electronic Components

FY20025,000t(Recycling ratio*1 1.18)
38,300t(Recycling ratio*1 2.17)
479,604,800 m3(Recycling ratio*1 36.6)

FY20034,800t(Recycling ratio*1 1.17)
50,700t(Recycling ratio*1 1.85)
523,555,800 m3(Recycling ratio*1 38.0)

98,000t

169,500t

Amount of steam
generated thoughuse ofwaste heat

BC Division(Brother company)

Electronics Division

Ink, Beverages, etc.

n Information Communication Divisionn Lifestyle and Industrial Supplies Divisionn Electronics Divisionn BC (Brother Company) Division

FY2002
2,056,400 t
110,400 t
62,200 t
67,600 t
62,500 t
113,500 t

FY2003
2,088,400 t
119,000 t
71,600 t
72,100 t
64,000 t
114,700 t

Key supplementary maerials(1.6% up)
(7.8% up)(15.1% up)(6.7% up)
(2.4% up)
(1.1% up)

Composition ratio of main raw materials bydivision

Solvents
Acid/alkaline

75 %

2003

74 %

16

(4.2% down)(80.8% up)

Electricity

LPG
Fuel Oil
Vapor
Water

Composition ratio of main supplementary
raw materials by division

2002

17 %

2003

89%
88%
1%

FY2002
FY20031.042
1,132(9.0% up)billion kWhbillion kWh
140.7
144.4
(2.6% up)million m3
million m3
23.3 million kg 25.5 million kg(9.4% up)
6,700 k3,000 k (55.2% down)
0
160TJ
13.4857
million m3

14.1391
million m3

Composition ratio of water consumption
by division10%

2002 13% 11%

58%

18%

11%

2003 12% 12%

63%

13%

0%

Emissions to water

FY2002

FY2003

GHG emissions

847,600
t-CO 2

899,000
t-CO 2(6.7% up)NOx emissions

627 t

660 t

(5.3% up)SOx emissions

56.5 t25.2 t (55.4% down)

emissions*3

VOC
emissions *2

3,500 t2,200 temissions*3—

Wastewater

Total unused materials

FY2002

FY2003

FY2002

FY2003

11,571,600m3

11,842,800m 3(2.3% up)

Unusable materials

506,100 t

519,300 t(2.6% up)41.1 t49.7 t(20.9% up)

Waste materials

96,800 t

93,100 t(3.8% down)

21.3 t28.3 t(32.9% up)

Landfill disposal

21,300 t

14,500 t(31.9% down)

1.6 t

1.1 t (31.3% down)

CODemissions*3
NitrogenPhosphorous(4.8% up)

0%

1%

16 %
9% 0%

FY2003
27,200 t
59,300 t

Emissions to Air

Key raw materials

LNG

9% 0%

2002

FY2002
28,400 t
32,800 t

OUTPUTOUTPUT

INPUT

Paper
Film
Resin
MetalsInk
Other

Disposal of waste generated in production processes

Recycling within the DNP Group

Packaging
Decorative Materials
Industrial Supplies

Books and Magazines
Commercial Printing
Business Forms

INPUT

Key raw materials

0
45
0
10

This is a comparison of environmental impact at each stage- the materials procurement stage, utility production stage, DNP Group production,and disposal of waste generated in production processes- using “business eco-balance” theory that applies the product LCA (life cycle assessment) methodology. The uniform indicators employed are those developed by the LCA Japan Forum. The results show that the environmental
impact at the materials procurement stage is great, and that efficient production that reduces losses at the DNP Group production stage is important.

Environmental impact per unit of production by division (t/¥million)

Electronics
0.3
2.0
109.2
98.4
3.2

Electronics Division

1,450

Materials procurement stage

Information
Lifestyle &Communication Industrial Supplies
16.3
6.1
1.9
1.4
17.1
24.3
11.5
16.5
2.6
4.2

Lifestyle and Industrial Supplies Division

130

8,000

0

Impact/Division
Key raw materials
Unusable materials
Water consumption
Wastewater
GHG emissions

Information Communication Division

The Overall Environmental Impactof the DNP GroupThe Overall Environmental Impactof the DNP GroupThe DNP group produces a wide range of consumer items
by using raw materials, including paper, film, plastic, metals(steel and aluminum) and ink.
Each division in the DNP group has its own particularcharacteristics. For example, the Information Communication
Division uses a lot of paper and produces a large amountof unusable materials. The Lifestyle and Industrial Supplies
Division uses a lot of auxiliar y materials (solvents) andreleases large amounts of greenhouse gases. The Electronics
Division consumes large amounts of water, accounting forsome 60% of the total consumed by the DNP group.
Furthermore, when measured in terms of environmental
impact per unit of production, consumption of main raw materials per unit of production in the Information Communication

GHG emissions composition ratio by division

Wastewater emissions composition ratio by
division

2002

2002 10% 10%

2003

31%
28%

32%
33%

26%
29%

11%
10%

2003

9% 10%

62%
68%

Wastewater emissions composition ratio by
division

18%

2002

38 %

18 %

29 %

15 %

13%

2003

36 %

19 %

32 %

13 %

*1

Recycling ratio is calculated as (input amount + amount reused) / input amount. Steam generation amount and solvents contained within ink have been excluded)*2

VOCs listed in Category 1 in the PRTR Law. Total VOC volume in 2003 was 19,100 tons.

*3

Amounts given for COD, nitrogen and phosphorous are based on emissions into wastewater channels to which the Water Pollution Control Law applies.

17

Information Communication Divisionn Books and Magazinesof this Division is that much of the solvent used is recycled.
Toluene is used as the ink solvent in the gravure printing usedin publishing, and the solvent that evaporates during the printing process is collected through the use of activated charcoal,etc. Because we use only toluene that is not mixed with anyother solvents in our gravure printing used in publishing, weare able not only to reuse the collected toluene in our own
printing processes, but can sell a portion of it to other companies as well.
Facilities used in production processes that are coveredby environmental laws include the following: facilities used in
the film making process that specially designated by the Water
Pollution Control Law and Sewerage Law, such as automatic
film development cleaning equipment (equipment for develop-

ing and fixing photographic film for proofing, which is what theprinting plates are based on), automatic printing plate development cleaning equipment with light-sensitive film attached(equipment for developing the plates used in offset printing),
surface preparation equipment using acid or alkalis (equipment for preparing separate plate surfaces for plates used in
gravure printing), and electroplating equipment (for chrome orcopper plating of plates used in gravure printing). In the printing process, the printing press itself is equipment specified by
the Noise Regulation Law and the Vibration Regulation Law. In
addition to these, there are also compactors, blowers, and boilers.

Booksn Commercial Printing

CalenderPanphletn Business Forms

IC card
Personal mails

Waste disposal

Explanation of Information Communication Division Processes
The following is an explanation of the production process for magazines, which are
representative of the printed material produced by this Division.

FY2002
195,600 t

Total waste generated
Amount effectively
utilized
Reduction onsite
Reduction offsite
Final disposal amount

FY2003
189,200 t(3.3% down)

Total waste

92%

185,600 t

181,300 t(2.3% down) Amount effectively utilized

95%

4,900 t3,600 t1,500 t3,900 t2,800 t1,200 t(20.4% down)(22.2% down)(20.0% down)

Reduction onsite

39%

Reduction offsite 8%

20%

11%

Final disposal amount020

The paper passes through the printing press,
and printing is made in the following order:
black, blue, red, yellow.

After the ”cutting” and ”olding” processes,
the printed material is the pages are bound inorder, cut, and the book is completed.

Main materials

Main secondary materials
Electric
Municipal
gas
LPG

296.9 million
kWh286.6 million(3.5% down)
kWh

GHG emissions
NOx emissions

56.6 million m3

55.3 million m3 (2.3% down)

4.7 million kg

4.8 million kg

SOx emissions
VOC emissions*(2% up)Fuel oil100k

100 k ( No change )Water

1,691,600m3

1,661,800m3 (1.8% down)

*1

1.0 t
1,000 t

1.0 t (No change)
400 t (60% down)

Wastewater
COD emissions
Nitrogenemissions
Phosphorous
emissions

18%

Waste oil
Sludge

45%

40

60

26%

6%

80

100

Scrap metal
Other

Finished product

Emissions into water

FY2002
FY2003
258,500 t-CO 2 251,700 t-CO 2 (2.6% down)
200 t
200 t (No change)

7%

Waste binding
thread

FY2003200 t (34% down)
100 t ( No change)

Waste oil

FY2002300 t
100 t

Wrapping paper
for printing paper

Solvent
Acid / alkalis

SludgeFY2003
1,559,800 t(0.6% up)
2,200 t (15.4%down)
22,900 t (3.0% down)

Developing andfixing fluid

FY20021,550,000 t
2,600 t23,600 t

Air emissions
FY2003Cutting waste

We print out a 4-color (black, blue, red, yellow)
version from the DTP data.

Discarded pressplate

We use computers to create the copy, photo,and illustration layout according to the manuscript instructions, and create the DTP data.

Discarded ink
cans

We receive copy from the publisher, such as
manuscript instructions, writing, photographs,
etc.

Retree paper

Bookbinding

Developing
fluid waste

Printing

Waste film fromfilm making

Plate making

Utilities

Waste plastic

55%

Bookbinding
stitching

Bookbinding glue

Binding thread

Printing ink

Printing paper

Developing fluid

Printing plate

Developing andfixing fluid

Film for film
makingFilm making

FY2002

Wastepaper

55%

Receipt of copy

Paper
Film
Ink

18

Electronic books

Information Communication Division

Information Communication Division

The Information Communication Division produces printed publications, such as weekly magazines and other documents; commercial printing, such as catalogs, posters, andflyers; and business form printing, such as stock certificates,
product vouchers, bank deposit books, continuous business
form, and various types of cards.
The environmental impact of this division was reduced
due to the closure of the Gotanda Plant Ichigaya Publication
Printing Operations that resulted from the integration of the
production structure.
A special characteristic of this Division is that the recycling rate is high because paper constitutes almost of the raw
material used. 99% of the wastepaper and other waste emissions from the plants are recycled. Another characteristic

FY2002
1,183,700m3
0.2 t

FY2003
1,113,100m3 (6.0% down)
0.1 t (50% down)

0.2 t

0.1 t (50% down)0t

0 t (No change)

Amount recycled
Solvent
Steam generated
through waste heatrecovery
Water

FY20022,200 t

FY20032,800 t7,500 t8,200 t148,660,500m

169,613,000m3

3

VOCs listed in Category 1 in the PRTR Law. Total VOC volume in 2003 was 1,600 tons.

19

Environmentally Conscious Products: Information Communication Division

R&D concerning environmental issues at Information Communication Division: Direct plate making
Process built around CTP

Regular process

DTP DATADTP DATA

Creation of film negative
Creation of plate
Creation of plate
Printing

Printing(Use of recycled materials)
These are publications that use 100% recycled paper fromused magazines and newspapers. These publications are not only
environmentally friendly in terms of using recycled paper, but also
are printed with low-environmental impact soy ink and non-VOC
ink, and using printing processes that emit no toxic fluids and use
no water.

Environmentally conscious calendars(Use of recycled materials / no need for separation of components)
These calendars use recycled paper and soy ink, and aremade without any metal or plastic components.

Close-up

Information Communication Division

Information Communication Division

The DNP Group develops technologies for environmental impact
reduction, such as prepress operation efficiency and printing process
stabilization, at its Technology Development Center Manufacturing
Technology Laboratory. One example is the use of digital data. The
majority of the manuscripts that are provided by publishing companies
has been created by computer. “Direct plate making”, which generally
takes the form of CTP (Computer to Plate) in which manuscript data istransferred directly to the printing plate, does not require the middle
stage process of film making, and is geared toward curbing the wastingof film, solvent, and developing fluid. It also obviates the need for photolithography machines for creating film negative plates, which saves
energy.
In offset printing, by using press plate color tone data to preset
the ink supply amount, there is little printing necessary for color tone
adjustment at the outset of the printing process, which makes it possible to save on ink, paper and energy while cutting waste.
In order to smooth out this series of processes, research is being
conducted at DNP into using printer output to confirm the image on
the computer screen, the page format, and the color tone when creating the original print. We also look into ways to conduct uniform
control of color tone amongst the printed materials created in various
media.
In addition, we also perform basic research into providing for amore stable printing process.

Environmentally conscious magazines,
pamphlets, educational booklets“Eco Cut-outs”(Eliminating need to separate)
These are point-of-purchase displays that use part of theoriginal packaging box as a base. Because they contain no veneer
or metal parts, the displays can be easily disposed of and recycled,with no need to separate into different materials.

CTP output machine

Recycled Paper “S-Mail”(Using recycled materials)
As a new addition to our lineup of ”S-Mail” products, special
postcards that can be used for invoices and invoice breakdowns,
etc., we have developed recycled paper S-Mail products. The new
products are available in 70% and 100% recycled paper versions,each of which has acquired the Eco-Mark.

Digital Data Device for Measuring Image Area

PET-G Cards

DIGI-DEMIA
This is a system that uses CTP digital data and greatly
increases efficiency in color control of multicolor offset
printing. It analyzes CTP data and calculates the optimal
ink amounts for each area. Ink amounts are automatically20

Output view screen

DEMIA data output screen

Preview, graph display

Conversion curve

preset at the outset of printing, improving color control efficiency and reducing waste and energy usage.

(Chlorinated organic compounds not used)
These cards are made of amorphous copolyester (PET-G),
which does not emit chlorinated gas even when burned, and breaks
down into water and CO 2 .

Eco-Fit Bank Books(Using recycled materials)
These bank books are made entirely of recycled paper andare printed with soy ink. Up until now, all but the cover was madeof recycled paper, but these are the first bank books in Japan using
recycled paper for the covers as well.

Environmentally-conscious Ink(VOC-free)
The DNP group develops and manufactures environmentallyconscious ink. During FY 2002, shipments showed an increasing
tendency towards use of soybean oil ink in offset and newspaper
printing, and a trend towards water based inks in gravure printing, both of which are helping to prevent air pollution and improve
working environments around printing presses.

Soybean oil ink

Water-based gravure ink

21

Lifestyle and Industrial Supplies Division

incineration, and the heat generated through incineration isused to create steam for use in the drying process. Heat emissions are also similarly used in the incineration furnace itself.
Accordingly, the division is also characterized by recovery oflarge amounts of heat, as well as substantial emissions of GHG.
Furthermore, as a measure against VOCs, we have been making
progress in switching to the use of water-based ink and installing solvent recovery equipment at some sites.
Another particular characteristic of this Division is that the
final disposal amount is high. The division uses a wide range ofraw materials, including paper, plastic films, plastic and metal(aluminum). These materials are combined into the various
coatings and laminates that provide the level of performance
demanded from our products. Therefore, the waste emitted
from this division are composite materials, which are difficult
to recycle. As a means of making effective use of such wastematerials, we recover the heat generated in onsite incineration(“thermal recycling”), or have the materials converted to solid
fuel by outside contractors.
Nevertheless, thermal recycling is impossible for materials containing polyvinyl chlorides so the final disposal amountis high. We made progress in reducing this amount in 2003
through effective use of substitute materials and material
separation. The environmental facilities used in the manufacturing processes of this Division are the same as those for the
Information Communication Division.
The DNP Industrial Materials Co., Ltd. Okayama Plant andTsuruse Plant, as well as DNP Technopack Tokai Co., Ltd. wereadded to this Division in 2003, increasing the Division’s overall environmental impact. Atmospheric SOx emissions werereduced, however, because the I.M.S. Dai Nippon Co., Ltd.
Sayama Plant switched from fuel oil to municipal gas.

n Decorative Materials

Flooring for homes

The following is an introduction to our paper container manufacturing process:Total waste
generated
Amount effectively
utilized
Reduction onsite
Reduction offsite
Final disposal
amountOptical film for liquid crystal
displays

FY2002

FY200396,600 t

98,900 t(2.4% down)

68,600 t

76,600 t(11.7% down)Amount effectively utilized

19,000 t
3,000 t16,000 t
2,000 t(15.8% down)(33.3% down)

Reduction onsite

6,000 t4,300 t(28.3% down)

45%

Total waste

Ink ribbons for printers

35%

51%

9%

Waste oil
Scrap metal

24%

6%

42%

20

Wastewater

33%

62%

Cinder
Other

40%

40

60

Wastepaper
Waste plastic

10% 7%

41%

Reduction offsite
Final disposal amount

6% 8% 5%

30%

26%

0

80

100

Plastic (pellets)

Adhesive

Coating solution

Printing ink

Printing paper

Etching chemicals

Development
chemicals

Printing plates

Development andfixing chemicals

Film for platemakingAfter being punched out, adhesive is applied and the forms arefolded into cartons.

Main materials

Main secondary materials
FY2003
24,100 t (4.7% down)
400 t(300% up)Electric
Municipal gas
LPG
Fuel oil
Water

FY2002
344.4
million kWh
22.2 million m3
18.6
million kg
4,500 k1,538.6 m3

FY2003379.7 (10.2% up)
million kWh
24.5 million m3 (10.4% up)
20,600 (10.8% up)
million kg
1,000 k (78% down)
1,720.0m3 (11.8% up)

FY2002
GHG emissio
NOx emissions

Emissions into water

FY2003

273,400 t-CO 2 294,700 t-CO 2
201 t

214 t

FY2003
1,171,600m3

0.2 t

3.5 t

Nitrogen emissions

0t

0.5 t

Phosphorous
emissions0t

0t

Wastewater(6.5% up)

COD emissions

SOx emissions

38.0 t

8.1 t (79.7% down)

VOC emissions*2,100 t1,200 t (42.9% down)*1

FY2002
1,050,000m3(7.8% up)

Processing defects

FY200225,300 t
100 t

Air emissions

Waste plastic

Solvent
Acid / alkalis

Etching chemical wast

FY2003
181,600 t (0.7% down)
91,900 t(9.8% up)
68,000 t(17.0% up)
39,800 t(2.8% up)
36,000 t(6.8% up)

Development
chemical waste

FY2002
183,000 t
83,700 t
58,100 t
38,700 t
33,700 t

Utilities

Waste adhesive

The processed printed materials
are punched out into expanded
carton forms.

Punch cutting
waste

Varnish is applied to the surface
for protection and beautification.

Discarded cutouts

The paper passes through theprinting press, and printing is
made in the following order: black,blue, red, yellow, special colors.

Processing defects

We use the data to create the various color
plates to be used in printing. In gravure printing there are also machine engraving andetching processes.

Waste adhesive

The text, photo, and illustration layout is produced on a computer, and the data is created.

Waste coating
agent

We plan the form and materials according to
the product information and the desired specifications, and create the design using a CAD
system.

Processing
defects

Pasting and assembly

Waste oil

Punching

Waste ink

Surface processing

Discarded plates

Printing

Defective prints

Plate making

Development andfixing chemical
waste

Film-making

Waste film fromplate making

Planning and Design

Paper
Film
Plastic
Metal
Ink

22

Interior materials for homesn Industrial Supplies

Waste disposal

Explanation of Lifestyle and Industrial Supplies Division Processes

Food packaging

Beverage packaging

Lifestyle and Industrial Supplies Division

Lifestyle and Industrial Supplies Division

The Lifestyle and Industrial Supplies Division manufactures packaging materials (packaging materials and containers
for food, beverages, candies, household items, and medical
supplies, etc.), construction materials (interior and exteriormaterials for housing and furniture, decorative metal paneling,etc.), and industrial supplies (printer ribbons, anti-reflective
film for displays, electrode materials for lithium-ion rechargeable batteries, etc.).
This division is characterized by the consumption of alarge amount of solvents in processes such as gravure printing, coating and laminating. The inks used in these processes
contain large amounts of a wide variety of solvents, which
when heated and dried produce a printed coating on the printing surface. As a result, solvents are released within the plant
itself and into the atmosphere, necessitating measures against
VOCs. The main measure used to reduce VOC emissions is

n Packaging

Amount recycled(11.6% up)

Solvent
Steam generated throughwaste heat recovery
Water

FY2002

FY20031,400 t73,600 t

1,400 t140,700 t

157,549,400m3

142,301,600m3

1 VOCs listed in Category 1 in the PRTR Law. Total VOC volume in 2003 was 13,900 tons.

23

Design policy in the packaging area
DNP aims for “USE–FULL” packages in our packaging design efforts. USE–FULL means “useful” (convenient and beneficial). USE-FULL was coined to reflect the U-S-E philosophy and express the concept of FULLness.
DNP’s UD5 Princi p le sProvide useful information in an easily understo
Simple and direct usefulness
Flexibility and safety in use
Appropriate weight and size
Usable without excessive force or mo

DNP’s 4 Environmental Principles

Decreased volume of packaging used (reduced volume))
Recycling

Through completion of the PET bottle beverage in the aseptic filling system

Beverage content

Cap

Reduce the environmental impact (LCA)

Cardboard

Bottle-forming machine

DRINK

Pr
e-form *Pre-form

SterileSterileBottleFilling

Label

SterileCapping

Environmentally Conscious Products —— Packaging* Pre-form means thatthe bottle shape is formedby using blow molding on
PET bottle that is in test
tube form.

Preserve the contents
Provide ease of use
Provide information

Inorganic Barrier (IB) Film
The DNP group manufactures packaging-use clear vapor-deposit
barrier film that is free of chlorine compounds, a source of dioxin.
The film has been used as packaging for foods, toiletries and otherdaily goods that require packing with barrier qualities.

PackingLabeler

Aseptic Filling Equipment

Basic packa g in g function s

Lifestyle and Industrial Supplies Divisiondeveloped by DNP, the beverage content is immediately chilled
after a short high-temperature and filled into a sterilized bottlewith a sterilized cap in an aseptic room. This makes filling atroom temperature possible. This process has the special characteristic of permitting the forming of the bottle and the fillingof contents on the same production line, because the bottles
are supplied to the filling plant in a pre-formed condition(“test tube” PET bottle master form prior to bottle shaping). As
the graphs below (left and middle) show, when these two systems are compared through LCA, the “aseptic filling system”
provides significant reduction of energy consumed and greenhouse gas emissions.

Reduced use of packaging materials (reduced amountt)

Aseptic Systems Co., Ltd.

Lifestyle and Industrial Supplies Division

LCA (Life Cycle Assessment) efforts in the packaging area
Containers and packaging are subject to special attention by consumers. We use LCA methods to gain an objective
comparison of products through numerical values for items
such as energy used and air emissions over the course of the
products’ life cycles. This data is useful in the development ofenvironmentally conscious products, and we also provide thisinformation to consumers.
The following is an introduction to the steps used in conducting LCA.
In the manufacturing of beverages sold in PET bottles,
the beverages are sterilized though filling at high temperatures(hot filling). In the “aseptic filling system for PET bottles”

Product

Comparison of energy consumption among
filling methods

Comparison of greenhouse gas emissions
among filling methods

Energy consumption (MJ per 1,000 bottles)

Energy consumption (CO2 - kg per 1,000 bottles)

4,000
3,000

3,562.6

150

2,578.2

2,000

100

1,000

50

0

178.1

Disposal / recycling

Material production

Transport

Use (content filling)

500

127.2

250

Container production

417.3
291.7

Elbow Pouches
Elbow pouches are liquid refill packs that are easy to open andpour. The pouches help to conserve resources by enabling reuseof the original container, and shrink to a compact size after use.

0
PET bottle filled throughaseptic method

PET bottle filled throughhot filling method

Note 1) This covers the period from material
production though disposal/recycling.
Note 2) Filling speed: 600 bottles/minute

24

200

Results of beverage container impact assessment(Unit: points per 1,000 bottles)

PET bottle filled throughaseptic method

PET bottle filled throughhot filling method

Note 1) This covers the period from material
production though disposal/recycling.

0

-22.9
PET bottle filled throughaseptic method-32.8
PET bottle filled throughhot filling method

Note 2) Filling speed: 600 bottles/minuteParticipation in LCA research
The National Institute of Advanced Industrial Scienceand Technology Research Center for Life Cycle Assessment,
an independent administrative corporation, developed the“LIME (Life Cycle Impact Assessment Method Based on
Endpoint Modeling” in conjunction with the LCA Project as one
method for assessing life cycle impact. In order to examine
whether this method is applicable to the DNP Group’s LCA,
we participated with the Research Center and Nikkei Business
Publications a joint “LCIA Special Research Committee”, which
guided the “Beverage Container Impact Assessment”. Someof the results of that research are shown in the graph above(right). We also participated as the industry representativein the Japanese government’s Plastic Waste Management
Institute Corp.’s “Plastic product LCA investigative research(commissioned by the Ministr y of Economy, Trade andIndustry)”. The thesis centered on “the contribution of plastic
products to sustainable development”, and in the area of packaging a quantitative analysis of based on LCA methodology
was made with “shell bottles and refillable pouches (reuse)”as the case examples.

Development of environmentally conscious products
We are making efforts in the area of packaging to develop
environmentally conscious packaging and containers basedon the “4 environmental principles of packaging: (reduced
amount, reduced volume, recycling, and LCA)”. Examples of
products employing our packaging design philosophy, “USE –FULL”, are shown on the following page.
In terms of environmentally conscious materials, wemade progress in every area in developing technologies andproducts using bio-plastics, which are receiving a great dealof attention. We will continue to gather data about this area,and make efforts to develop uses and applications in packaging materials.
In our efforts to provide information to consumers, weparticipated in the “Packaging Products for Living Exhibition
2003” held by Japan Packaging Technology Association, Inc.,and the “Ecoproducts Exhibition 2003” held by the Japan
Environmental Management Association for Industry and the
Nihon Keizai Shimbun.

HI-CUP
HI-CUP is a double-walled heat insulated cup made of recycled
paper. After use, the cup can be easily crushed into a small size.

Paper Trays
Our paper trays can be used for food dishes and frozen foods,
etc, and are microwave safe. The outer cover of the trays can be
printed on, and give a better finish than printed plastic trays. Afteruse, the trays can be easily crushed into a small size.

Back-in Box (BIB)
Back-in boxes are containers are cardboard boxes that containing
an inner plastic bag. The box and bag sections can be separated
and folded both before and after use, greatly helping to reduce
storage space and improving recyclability.

25

Home Constraction Materials Analysis and Evaluation
Center
The Home Constraction Materials Analysis and Evaluation
Center was established in response to the “sick house syndrome” problem, so as to evaluate the environmental functionsof products used in interiors and to construct a structure formeasuring the VOCs (Volatile Organic Compounds) emitted
from building materials. It not only measures the functions of
our company’s products, but also handles requests from othercompanies, and therefore constitutes a new area of business.
More than 100 requests from external sources for measurement and analysis are already being handled.
The Home Constraction Materials Analysis and Evaluation
Center is regulated under JIS 1901, and the processes andtechnology used for measuring VOC emissions from building
materials have received third-party ISO/IEC 17025 certification(Certification date: April 25, 2003/Certification organization:
The Japan Accreditation Board for Conformity Assessment(JAB)/Certification number: RTL01330). This makes it the firstsmall-chamber method VOC emissions testing lab to receive
such certification in Japan. Acquisition of this certification
demonstrates the thorough controls and technical abilities of
our quality system.

Basic concept behind environmentally conscious products in the decorative materials
We have consideration of global environmental conservation and the living environment as our guiding principle in developing products in the decorative materials area that take the environment into consideration in every process, from production
through distribution, use and disposal.
Consideration of the global environment

Consideration of the living environment

Low impact

Reduce environmental pollutants
Non-toluene
Non-xylene

HealthEnergy conservation

Reduce energy consumption during
manufacturing

Cleanliness

Conserve resources

Consideration of recyclability

SafetyResponding to sick house issues
Do not use materials listed under Health,
Labor and Welfare Ministry guidelines
Maintain a hygienic indoor environment
Pollution prevention functions
Image maintenance
Responding to environmental hormone issues
Do not use chemicals suspected tobe hazardous by the Ministry of theEnvironment

Consideration of the lifecycle of a productConsideration at the production
and distribution stages

Consideration at the product use stage

Lifestyle and Industrial Supplies Division

Lifestyle and Industrial Supplies Division

Measures taken in the decorative materials area to prevent“sick house syndrome”
The DNP Group is working with base material manufacturers, adhesive manufacturers, and fabrication companies
to control formaldehyde emissions and provide construction
materials that fulfill the requirements of the Building Standard
Law.
The Building Standard Law, which was revised July 1,
2003, mainly aims to regulate the construction materials usedin buildings and make ventilation equipment compulsory, withthe goal of keeping indoor concentrations of the chemicals
that cause “sick house syndrome” below the guideline values.
The two chemicals covered by the regulations at this time areformaldehyde and chlorpyrifos. The use of chlorpyrifos (usedin termite extermination) is prohibited, and formaldehyde(used in plywood and wallpaper adhesives) is subject to thefollowing limitations:(1) Interior finish limitations;(2) Ventilation equipment requirements;(3) Use under roofs.

Consideration at the product disposal stage

Environmentally conscious products – Construction materials
SafmareOriginal decorative paneling for “olefin-based” finishing and buildingthat makes it possible to create spaces that meet demands for “health”,“cleanliness” and “safety”.

Poweregos / Cleanegos
High-functioning “paper-based” decorative sheets for use in kitchencabinets, closets, and building that are superior in terms of abrasion
resistance and stain resistance.

ISO/IEC 17025 Summary
Items required for thorough control

Items required concerning technical abilities
corresponding to the types of testing contracted by
the testing laboratory

4.1

Organization

5.1

General4.2

Quality system

5.2

Personnel

4.3

Document control

5.3

Equipment and environmental conditions

4.4

Confirmation of contents of request and estimate forms and5.4

Confirmation of testing and calibration methods and/or validity

contracts

HT Floor
Olefin-based flooring that allows realization of next generation quality
and rapidly improved functionality.

of methods

4.5

Testing and calibration sub-contracting contracts

5.5

Facilities

4.6

Purchase of services and/or supplies

5.6

Traceability of measurements

4.7

Service provided to clients

5.7

Sampling

Clerio (Erio steel sheet)

4.8

Complaints

5.8

Handling of testing and calibration items

4.9

Control of nonconforming testing and calibration

5.9

Guaranty of testing and calibration quality

Decorative steel sheet for ornamental bath walls that do not contain
PVC and are printed directly without the use of film.

4.10 Correction process

5.10 Reporting of results

4.11 Prevention process
4.12 Record control
4.13 Internal auditing
4.15 Management review

2627

Electronics Divisionsludge emitted from the wastewater treatment facility, there
was a marked decrease in the final disposal amount.
*1n Display products

Shadow mask: An electronic device used in plate making with fixed pore size andpitch so that the electron beams that correspond to the three primary colors (red,green, blue) released from an electron gun contained within the color picture
receiver each hit the fluorescent body only.

*2

Lead frame: The connecting terminals of a semiconductor chip, which perform aElectronics Division

Electronics Division

The Electronics Division applies photographic platemaking technology to the manufacturing of display products(such as LCD color filters, Braun tube TV shadow masks*1,
backboards for plasma TVs, and projection TV screens) andelectronic devices (such as photomasks and lead frames*2 forsemiconductors). This Division is characterized by consumption of large amounts of water and acid. The acid is used in
etching when producing shadow masks and lead frames, whilewater is necessary for cleaning. The Division makes effective use of waste acid, recycling it for reuse both onsite andthrough outside contractors.
In 2003, in addition to strengthening of the production
structure at the Mihara Plant, DAP Technologies Co., Ltd. andAdvanced Colortech Co., Ltd. were added to this Division.
This resulted in an increase in overall environmental impact.
Nevertheless, as a result of efforts to make effective use of thenumber of functions, including connection of the chip with an external devices,
release of heat, maintenance and protection of the chip.

LCD display color filter

Braun tube TV shadow mask

Backboard for plasma TV

Projection TV screen

Lead frame

Coreless buildup circuit board

System module (MPEG-4)

n Electronic devices

Photomask for semiconductor

Treatment of unused materials
Total unusedmaterials
Effective use
Reduction on site
Site volume
reduction
Landfill

Explanation of Electronics Division processes

Production line for photomasks
for semiconductors

142,200 t

168,600 t(18.6% up)

Total waste

61,400 t
65,900 t

76,500 t
78,000 t(24.6% up)(18.4% up)

Amount effectively utilized

3,100 t3,600 t(16.1% up)

11,800 t

7,900 t (33.1% down)

55%

37%
79%

7% 7%
100%

Reduction onsite
Reduction offsite 7%

31%

56%

7%

Final disposal amount

77%
20

40

Metal plate

Coating

Exposure

Development

Etching

Coating

Drawing

Development

Etching

Exposure

Development

Metal Molds

Plastic plate

Electric
Municipal gas
Vapor
Water

FY2002
FY2003
GHG emiss
221,700 t -CO 2 262,400 t -CO 2(18.4%)NOx emissions
162 t
189 t
(16.7%)
SOx emissions0t
0 t (no charge)
VOC emissions*0t
0 t (no charge)*1

Waste chip

(79.8%)Air emissions

Utilities
FY2002
FY2003247.3
328,900(33.0%)
million kWh million kWh
52.4
54,600(4.2%)
million m3
million m3
0
169TJ
7,878,400 m3 8,852,900m3 (12.4%)

Projection TV Screens

Waste oil

FY200358,800 t

Waste alkalis

Acid / alkalis

FY200232,700 t

Color filter

Shaping

SludgeMain secondary materials

Waste acids

Metal

28

Photomask
Process inspection

Coating

Film
Metal
Glass

100

Shadowmask Lead frame

Pattern creation

Glass plate

FY2002 FY2003
6,600 t4,900 t (25.6% down)
14,200 t 15,400 t(8.5% up)
2,200 t 6,600 t(200% up)80

Products

Raw Materials

Main materials

11%
60

Waste plastic
Wastewater
Waste oil
SludgeScrap metal
Other

Etching chemicals

Plate-making film

FY20030Development andfixing chemicals

Production line for LCD color
filters

FY2002Emissions into water
Wastewater
COD emissions
Nitrogen emissions
Phosphorous
emissions

FY2002
FY2003
7,154,900 m3 7,979,500 m3
30.0 t36.1 t18.5 t25.5 t

VOCs listed in Category 1 in the PRTR Law. Total VOC volume in 2003 was 100 tons.

1.2 t

0.9 t

Amount recycled(11.5% up)(20.3% up)(37.8% up)

Acid / alkalis
Water

FY200238,300 t
150,181,900m3

FY200350,700 t
186,005,900m3(25.0% up)

29

Electronics Division

Research and development for environmental concerns
Product development and process improvement in
the Electronics Division mainly take place in the Display
Components Operations Display Components Lab and in theElectronic Components Operations Electronic Components
Lab.
In the area of display products (such as Braun tube TV
shadow masks, LCD color filters, and projection TV screens), a
black matrix that does not use chrome has been developed for
LCD color filters. A black matrix is used to improve color filter
contrast, and therefore functions to create a stripe pattern thatfills in the gaps between the R (red), G (green), and B (blue)
color filters. Up until the majority of black matrices used havebeen chrome-type that use photo etching technology to makehigh-precision, high-definition processing possible. In consideration of the environment, we developed a black matrix thatuses photolithography technology and does not use chrome(acrylic resin-coated product), and we continue to work todevelop its technical advantages.
In the area of decreasing the environmental impact
of manufacturing processes, we eliminated the use of all
chemicals listed in Category 1 in the PRTR Law from the production lines for projection TV screens. In the area of color filter production, while the inefficient use of optical plastic in the

LCD display color filter

30

spin method used in the coating process had been a problem
because it created a high volume of waste, we have developed
a coating process employing the die-coating method, which
has reduced the amount of optical plastic used, and further
reduced waste.
In the area of electrical devices (such as photomasks andlead frames), the majority of efforts are being made toward
reducing the environmental impact of the production processes. One example is the manufacture of photomasks without
the use of organic solvents. Photomasks are plates used inbaking LSI circuit patterns onto silicon wafer surfaces, andare manufactured using optical plastic (photo resist). Opticalplastic, which is made of polymers, melts easily, and the mostcommonly used type employs organic solvent because of easeof coating and drying. Nevertheless, for the sake of the environment we have made the switch to the non-solvent type thatuses an aqueous solution. This not only reduces the environmental impact on the production environment at the manufacturing site, but also reduces exhaust and effluent emissions
into the general environment. In addition to this, we are also
developing small-scale production facilities that provide better
clean room energy conservation, as well as repair technologies using mechanical processes that do not use toxic gasesin the repairing of photomasks

Blow-up photo of a color filter

Photomask

2003 Environmental Performance[Contents]

Environmental Performance

We have included more details about the reduction ofenvironmental pollutants, especially VOCs (Volatile
Organic Compounds). We have also improved theaccuracy of our explanation concerning PRTR.

Results and Evaluations of Environmental Conservation ............................... 32
Reducing Environmental Pollutants................................................................ 34
Reduction of Environmental Impact of Chemicals.......................................... 36
Efforts toward Resource Recycling: Waste Reduction ................................... 38
Efforts toward Resource Recycling: Recycling of used office paper .............. 40
Efforts toward Resource Recycling: Water recycling ...................................... 40
Measures against Global Warming................................................................. 41
Reduction of CO2 from Transport Operations ................................................. 43
Environmental Risk Management................................................................... 44
Monitoring and Measurement of Environmental Effects................................. 45
Promotion of Green Purchasing ..................................................................... 47
Development and Sale of Environmentally-Conscious Products.................... 48

31

Results and Evaluations of Environmental Conservation

The DNP Group has set environmental goals based on our environmental policy that are appropriate to our businessactivities, and we have been making steady progress. The following are the results achieved in 2003 regarding thegoals set by the Environmental Committee in March 2002.

Increase the sales of environmentally conscious products by 10%
Development andale of environmentally annually in comparison to the previous year
(annually)
conscious products
PRTR

Global warming
prevention

Reduction ofindustrial waste

32

Goal (Year in which goal is to be achieved)

2003 results

Environmental
conservation

Page on which
Evaluation it is described2002 sales: ¥101.9 billion
2003 sales :¥140.4 billion
Comparison with 2002: 38% increase

p48

Reduce air emissions of toluene by 500 tons annually for theGroup as a whole(2004)Air emissions in 2000: 8,376 tons
Air emissions in 2002: 3,151 tons
Air emissions in 2003: 2,003 tons
Comparison with 2000: 76% decrease

p36

Reduce emissions and transport amount of chemicals listed in
Category 1 in the PRTR Law (with the exception of toluene) by
50% in comparison with 2000
(2004)

Emissions / amount transported in 2000: 1,220 tons
Emissions / amount transported in 2002: 870 tons
Emissions / amount transported in 2003: 712 tons
Comparison with 2000: 42% decrease

Maintain the 2000 level of greenhouse gas emissions(2010)

2000 emissions: 867,000 tons
2002 emissions: 842,000 tons
2003 emissions: 899,000 tons
Comparison with 2000: 103.7%

Maintain total energy consumption at 2000 levels(2010)

2000 total energy consumption: 18,500 TJ
2002 total energy consumption: 18,100 TJ
2003 total energy consumption: 19,300 TJ
Comparison with 2000: 104.3%

Reduce per unit energy consumption (energy consumption
converted to fuel oil consumption/total production) by 15% incomparison with 1990
(2010)

1990 per unit: 4.10 TJ/¥100 million
2002 per unit: 3.94 TJ/¥100 million
2003 per unit: 4.19 TJ/¥100 million
Comparison with 1990: 2.2% increase

Reduce per unit CO2 emissions (CO2 emissions /total production)by 20% in comparison with 1990
(2010)

1990 per unit: 198,000 tons CO2 /¥100 million
2002 per unit: 177,000 tons CO2 /¥100 million
2003 per unit: 187,000 tons CO2 /¥100 million
Comparison with 1990: 5.6% increase

Reduce per unit waste emissions (Waste emissions /total
production) by 40% in comparison with 2000
(2005)

2000 per unit: 0.312 tons/¥100 million
2002 per unit: 0.211 tons/¥100 million
2003 per unit: 0.202 tons/¥100 million
Comparison with 2000: 35.3% reduction
Comparison with 2002: 4.3% reduction

Reduce total waste generation by 25% in comparison with 2000
(2005)

Total waste generation in 2000: 646,000 tons
Total waste generation in 2002: 506,000 tons
Total waste generation in 2003: 519,000 tons
Comparison with 2000: 19.7% reduction
Comparison with 2002: 2.6% increase

p38

Achieve zero emissions at 20 sites(2005)

Achieved at 7 sites
28 sites at 1% or less emissions going to final
disposal site

p38

Reduce waste generation rate (total waste generation/totalmaterials input) by 20% in comparison with 2000
(2005)

2000 waste generation rate: 17.7%
2002 waste generation rate: 15.1%
2003 waste generation rate: 14.8%
Comparison with 2000: 16.4% reduction
Comparison with 2002: 2.0% reduction

p38

Achieve 80% recycling rate (recycling amount/total waste
generation)(2005)

2000 recycling rate: 71.9%
2001 recycling rate: 74.2%
2002 recycling rate: 77.6%
2003 recycling rate: 78.8%
Comparison with 2002: 1.2 point improvement

p38

p36
Office environment
p41
Green purchasing
p41

p41

p41

p38

Reduction ofenvironmental
impact of transport

Page on which
it is described

Goal (Year in which goal is to be achieved)

2003 results

Maintain a maximum concentration of air emissions covered byregulations that is 70% or less of the regulatory standards(2005)

2001 target achievement rate (voluntary target): 92%

Maintain a maximum concentration of wastewater emissions
covered by regulations that is 70% or less of the regulatory
standards(2005)

2001 target achievement rate (voluntary target): 83%
2002 target achievement rate (voluntary target): 89%
2003 target achievement rate (voluntary target): 92%

p45

Maintain a noise level within site perimeters that is 95% or lessof the regulatory standard(2005)

2001 target achievement rate (voluntary target): 45%
2002 target achievement rate (voluntary target): 47%
2003 target achievement rate (voluntary target): 60%

p45

Maintain a maximum odor level within site perimeters that is
70% or less of the regulatory standard(2005)

2001 target achievement rate (voluntary target): 100%
2002 target achievement rate (voluntary target): 100%
2003 target achievement rate (voluntary target): 100%

p45

Make the rate of separation and collection of wastepaper 65%
or better in comparison with municipal waste(annually)

2001 target achievement rate (voluntary target): 91%
2002 target achievement rate (voluntary target): 89%
2003 target achievement rate (voluntary target): 90%

p45

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

2001 wastepaper separation and collection rate: 60.7%
2002 wastepaper separation and collection rate: 62.3%
2003 wastepaper separation and collection rate: 68.4%

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

2001 Green materials purchasing rate: 15.9%
2002 Green materials purchasing rate: 18.6%
2003 Green materials purchasing rate: 24.3%
Comparison with 2002: 5.7% increase

Reduce per unit CO 2 emissions (CO 2 emissions /transportweight/transport distance) by 5% in comparison with 2000
(2010)

2001 Green supplies purchasing rate: 9.1%
2002 Green supplies purchasing rate: 12.5%
2003 Green supplies purchasing rate: 11.8%
Comparison with 2002: 0.7% decrease

p47

Reduce per unit amount of fuel used for transport (amountof fuel used/sales) by 20% in comparison with 2000
(2010)

2000 per unit CO2 emissions: 115 t-CO2/ ton kilometer2002 per unit CO2 emissions: 85 t-CO2/ ton kilometer2003 per unit CO2 emissions: 79 t-CO2/ ton kilometer
Comparison with 2000: 31% decrease
Comparison with 2002: 7% decrease

p43

Reduce per unit amount of fuel used for transport (amountof fuel used/sales) by 20% in comparison with 2000
(2010)

2000 per unit amount of fuel used for transport: 83,000 l/¥100 million
2002 per unit amount of fuel used for transport: 78,000 l/¥100 million
2003 per unit amount of fuel used for transport: 78,000 l/¥100 million
Comparison with 2000: 6% decrease
Comparison with 2002: 0% decrease

p43

2002 target achievement rate (voluntary target): 93%
2003 target achievement rate (voluntary target): 95%

p45

Environmental Performance

Environmental Performance

Theme

Theme

p40

p47

In making per unit calculations, “production” (amount of business activity) represents the total amount of added-value.

33

Reducing Environmental Pollutants

Impact on the atmosphere
Atmospheric contaminants

The DNP Group uses dichloromethane, which under the
Air Pollution Control Law is considered a “priority substance”
requiring reduction efforts. Dichloromethane is mainly used
as a cleaner in the printing process, and we have been making
progress in reducing its use by switching to cleaning equipment using aqueous solutions or to substitute chemicals. As aresult, our total air emissions for 2003 were 3.6 tons.
Trichloromethane was completely eliminated in 1996,
while tetrachloromethane was in 1997.
In the case of dioxins, we eliminated small-scale incinerators, in which incineration is difficult to control, by 2002, so as
to reduce the emissions stemming from waste incineration.
As a result, we reduced atmospheric emissions of dioxins by
7% in comparison with 2000. Currently, all of our active incinerators are large-scale thermal recovery incinerators that fulfill
the 2002 regulations. We have six of these nationwide.
Ozone-depleting substances

In the case of ozone-depleting substances, although
we do use air conditioners that employ coolant containing
CFC-11*1 and CFC-12, we reduced by three the number of air
conditioners filled with this coolant in 2003, and currently have
14 on active duty. We are also making progress in eliminatingchemicals in the production process that have been designatedtoxic, such as chlorinated organic solvents and other subDichloromethane emissions(Unit: tons)

stances with a high ozone-depletion factor, and as a result theuse of HCFC-141b*2 CFC-substitute has been increasing since1999. This substance has a comparatively low ozone-depletion
effect, but at the same time it is a chemical that requires
regulation from the standpoint of global warming prevention.
Therefore, the DNP Group is making progress in reducing
emissions of HCFC-141b into the atmosphere. In 2003 there
was end to what had been a trend toward switching to substitute chemicals, and atmospheric emissions were at the samelevel as in 2002.
The use of 1,1,1-trichloroethane, which was banned by theMontreal Protocol on Substances that Deplete the Ozone Layer,
was ceased in 1994.
*1 : Chlorofluorocarbons *2: Hydro chlorofluorocarbons

CFC-substitute emissions

104.4

3.6

0
1999

2000

37.5

2001

23.6

2002

Dioxin emissions

2003

0

16.7

1998

(FY)

(Unit: mg-TEQ)

2000

2001

2002

2003 (FY)SOx emissions(Unit: tons)

100

250

91.0

214.9

87.6

75

150

77.2

56.5

0
2000

2001

22.2

15.4

2002

2003

0
(FY)

1998

1999

2000

2001

2002

son with 2002.

2003

(FY)

Eutrophication is a problem affecting water quality in closed coastal water areas and

800
600

COD emissions(Unit: tons)

50

546.1

617.1

621.6

620.4

626.7

200

10

0

0
1999

2000

2001

2002

2003

(FY)

VOC (chemicals listed in Category 1 in the PRTR Law) emissions(Unit: tons)
120,000
10,826
9,157
9,000
8,936

2001

2000

2001

2002

2003

(FY)

(Unit: tons)

28.3

20

20.3

19.2

2000

2001

21.3

10
2,204

2002

2003

Ratio of air emissions by VOC

Methyl Ethyl Ketone
15%

1999

30

0
2000

22.6

13.3
3,521

1999

21.6

Nitrogen emissions

5,115

1998

41.1
32.3

30
20

1998

49.7

40

660.3

400

PRTR-listed VOC
12%

25.2

25

44.5

50

(Unit: tons)

0
(FY)

1999

2002

Phosphorous emissions

2003

(FY)

(Unit: tons)

2.0

Other VOCs 8%
Butyl acetate 2%
Methanol 3%

74.5

50

100

Nitrogen emissions

3.2

1999

Nitrogen and phosphorous
We have been using wastewater treatment facilities and waterpurifier tanks to decontaminate wastewater from our plants and offices
as a means of preventing the eutrophication*4 of public waters. In 2003,
just as was the case with COD, the increase in the production volume
of processes that produce wastewater with nitrogen content caused
an increase in nitrogen per unit of wastewater, resulting in 7 tons more
nitrogen emissions than in 2002. At the same time, we switched tonon- phosphorous detergent at plants which produce a high volume ofwastewater, reducing phosphorous emissions by 0.5 tons in compari-trial wastewater, and is characterized by an unusually high growth rates for plankton.

3,000

0.0

We use wastewater treatment facilities to decontaminate
and reduce the pollution load of wastewater, emitted fromour production lines and dining areas, which contains organic
substances. In 2003, because of the increase in the production
volume of processes in the Electronics Division that produce
wastewater with a comparatively high organic and nitrogencontent, there was an increase in organic compounds per unitof wastewater, causing overall COD waste volume emissions
after wastewater processing to increase by 8.6 tons.

lakes. This is caused by nitrogen and phosphorous content in residential and indus-

6,000

10

24.9

1998

37.5

20

52.9

30

200

(Unit: tons)

30

84.7

60

Impact on water*4

SOx and NOx are emitted in conjunction with electric andfuel consumption in the production process. The DNP Grouphas been working to reduce the emissions of these in smoke
and soot by switching from fuel oil to municipal gas, improving
combustion facilities, and energy conservation. By switching
our boilers from fuel oil to municipal gas in 2003, we reduced
SOx emissions levels to 33% of those in 2000. At the sametime, there was an increase in the amount of municipal gas
consumed, and electrical power consumption also increased
due to an expansion of our scale of production, so there wasan increase in NOx emissions.

40
91.2

Impact on water

Substances as ink solvents, fixers, and cleaners arebroadly used in the printing process and contain toluene andxylene, which are VOCs. These VOCs have been found to create photochemical oxidants and suspended particulate matter(SPM*3) when released into the air, and their emission into the
air is regulated. *3 Suspended Particulate Matter
The DNP Group has been making progress in reducing
emissions of PRTR-listed VOCs through separation using combustion equipment and the use of absorbers for their collection
and reuse. We are also making efforts such as switching to
low-environmental impact substitutes and water-based materials. In 2003, through our progress in separation of toluene
and other VOCs, we were able to reduce air emissions of thesecompounds by 1,317 tons (37%) in comparison with 2002.
We have also been making efforts to monitor and reduce
emissions into the environment of PRTR-listed VOCs. Our total
VOC emissions were 19,068 in 2003, but most of this amountconsisted of three chemicals- acetic ether, isopropyl alcohol,
methyl ethyl ketone- that are used as solvents in the printing
process. We will continue to make improvements so as to meetour goal of reducing air emissions by half by 2005.

SOx (sulfur oxide) and NOx (nitrous oxide)

120
90

VOCs (Volatile Organic Compounds)

Environmental Performance

Environmental Performance

We are making efforts to monitor and reduce emissions of environmental pollutants so as to conserve both theglobal and local environments. We are working to reduce atmospheric pollutants, such as air contaminants, ozone
depleting chemicals, SOx (sulfur oxide), NOx (nitrous oxide), and VOCs (Volatile Organic Compounds), as well aswater pollutants, such as COD (Chemical Oxygen Demand), nitrogen, and phosphorous.
In 2003, we were able to reduce emissions of air pollutants such as dichloromethane, dioxins, SOx, andVOCs, but ozone-depleting chemicals were at 2002 levels, and NOx emissions increased. We were able to reduce
emissions phosphorous into public waters, but emissions of COD and nitrogen increased.

Acetic ether 43%

1.6

1.5

1.0
Total
VOC emissions
19,068 t

0.5

0.9

0.9

2000

2001

1.1

0.6

0
1999

2002

2003

(FY)

Isopropyl alcohol
17%

34

35

Reduction of Environmental Impact of Chemicals

We are making efforts to reduce the emissions into air and water, as well as the transport as waste, of chemicals
listed in Category 1 of the PRTR Law *, with the aim of limiting the environmental impact of chemicals that areused in the production process. We broadly reduced the environmental impact of chemicals in 2003 by, forexample, reducing atmospheric emissions of toluene (which constitutes 90% of the total of PRTR-listed chemical
emissions) by 1,148 tons (36.4%) in comparison with the previous year.

Solvent processing facilities

Targets> toluene by the DNP group to 500 tons/year To reduce air emissions of> transfers of items designated as Class I Chemical Substances (except law to 50% of the FY 2000 level by FY
2004To reduce emissions and toluene) under the PRTR
Results> Air emissions of toluene in 2003 were 2,003 tons, which represents a reduction of 36.4% in comparison with
2002 (and a reduction of 76.1% in comparison with 2000).
> Emissions and transport amount of chemicals listed in Category 1 in the PRTR Law (with the exceptionof toluene) totaled 712 tons, a reduction of 18.2% in comparison with 2002 (and a reduction of 41.6% incomparison with 2000).

The cumulative results for PRTR-listed chemicals in 2003
are as shown in the table on page 37. There was a 4% increasein the amount handled to the previous year, to 22,675 tons (37chemicals, 36 plants), because of an expansion in the range ofdata compilation. Of this, 2,204 tons, or 10% of the total, wasemitted into the air, while there were zero emissions to soil.
The majority of chemical air emissions are volatile organic
compounds used in ink solvents employed in the printing process. Of these, air emissions of toluene constituted 91% of thetotal, or 2,003 tons (25 plants).
The DNP Group set a goal of 500 tons or less annually of
air emissions of toluene for the Group as a whole by 2004, andthe reduction plan, which is based upon treatment through gas
collection and elimination, is moving forward. Progress wasmade in 2003 through the installation of elimination equipment and strengthening of disposal capabilities, resulting
in a decrease in comparison with 2002 of 1,148 tons (36%).
Currently, emissions from January through March 2004 represents a decrease of 1,509 tons on a year-to-date basis. Also, in2003 emissions and transport volume of Category 1 chemicals
other than toluene were 712 tons, representing a reduction to
58% of 2000 results, which was accomplished by switching tosubstitutes and other methods.
Note: Chemicals subject to reporting: Due to an expansion in the range of data compilation under the PRTR Law, chemicals of which 1 ton or more are handledon an annual basis are covered. Also, four additional sites- the DNP Industrial
Materials Company, Ltd. Tsuruse Plant, DNP Technopack Company Tokai,
Advanced Colortech Company, and DNP Technologies Company - became subject to data compilation.

Emissions and transport of all subject chemicals by volume

Volumeconsumed 22%

Volume recycled
29%

Total amounthandled22,675 tons
Volume transported
as waste 9%

Volumeeliminated 30%

Volume emitted into
atmosphere 10%
Air emissions of toluene(Unit: tons)

10,000
6,000

8,376

4,629

Substance

2,003

Targets

2003

2004

2000

2001

2002

Emissions and transport amount (excluding toluene)

1,600
1,220
955

800

870

712

Targets

610

400
0
2000

2001

2002

2003

2004

(FY)

Recycled

Consumed

Removed

0.0

0.0

6.6

0.0

0.0

0.0

0.0

1.1

0.0

0.0

0.0

0.1

0.0

0.9

0.0

Monoethanolamine (2-aminoethanol) 25.6

0.0

0.0

1.2

24.4

0.0

0.0

0.0

0.0

Isophorone Diisocyanate

20.9

0.0

0.0

0.0

0.0

0.0

20.9

0.0

Bisphenol A

1.0

0.0

0.0

0.0

0.0

0.0

1.0

0.0

Ethylbenzene

241.5

5.7

0.0

0.0

11.3

51.0

85.1

88.4

Ethylene Glycol

15.8

0.0

0.0

0.0

0.1

0.0

4.6

11.0

Ethylene Glycol Monoethyl Ether

28.8

3.3

0.0

0.0

3.8

0.0

5.4

16.3

Ethylene Glycol Monomethyl Ether

422.6

130.3

0.0

0.0

40.8

0.0

147.0

104.5

-Caprolactam

17.1

0.0

0.0

0.0

1.2

0.0

15.9

0.0

Xylene

340.4

15.4

0.0

0.0

18.8

86.9

95.9

123.5

Silver And Its Compound (Water-Soluble)

9.5

0.0

0.0

0.2

0.0

1.9

0.0

7.3

Chromium And Chromium (III) Compounds

81.7

0.0

0.0

0.0

35.8

26.7

19.2

0.0

Hexavalent Chromium

55.6

0.0

0.0

0.0

0.9

0.1

26.0

28.7

Cobalt And Its Compounds

506.1

0.0

0.0

0.0

9.1

91.6

405.4

0.0

2-Ethoxyethyl Acetate

4.4

2.3

0.0

0.0

0.0

0.0

2.1

0.0

Inorganic cyanide compound

1.2

0.0

0.0

0.0

0.3

0.0

0.0

0.9

1, 1-Dichloro-1-Fluoroethane

37.5

37.5

0.0

0.0

0.0

0.0

0.0

0.0

Dichloromethane

5.0

3.6

0.0

0.0

0.0

0.0

0.0

1.4

−

15.4

0.0

0.0

157.6

0.0

0.0

0.0

434.0

0.0

0.0

0.1

151.3

197.0

74.1

11.5

14.1

1.3

0.0

0.0

0.0

5.5

1.4

5.9

15,212.8

2,002.9

0.0

0.0

1,638.2

2,893.9

2,356.9

6,320.8

124.0

0.0

0.0

0.0

68.0

40.0

16.0

0.0

Nickel3,800.9

0.0

0.0

0.0

0.0

2,113.3

1,636.0

51.6

Nickel Compounds

Lead and its compound(Unit: tons)

Emissions to Emissions to Transferred to Transferredairpublic waters sewer system as waste

6.6

Toluene(FY)

Handled

Unit: t (dioxins: mg-TEQ)

Bis (2-ehtylhexyl) adipate

1,3,5-trimethylbenzene

5000Tokai Dai Nippon Printing Co., Ltd.

Zinc compound (water-soluble)

Copper Salts (Water-Soluble)

3,151

2,000

Chikugo Plant, Kyushu Dai Nippon Printing Co., Ltd.

Chemical Substances subject to PRTR Law

Dioxins

4,000

1,200

Tokyo Plant, Dai Nippon Printing Kenzai Co., Ltd.

1,163.6

0.0

0.0

0.0

116.7

1,046.6

0.2

0.0

Hydrazine

2.2

0.0

0.3

0.0

0.0

0.0

0.0

2.0

Hydroquinone

9.8

0.0

0.0

9.8

0.0

0.0

0.0

0.0

Di-n-butyl phthalate

4.0

0.0

0.0

0.0

0.0

0.0

3.9

0.1

Bis (2-Ethylhexyl) Phthalate

36.4

0.1

0.0

0.0

1.6

0.0

26.3

8.4

Trimellitic Anhydride

13.1

0.0

0.0

0.0

0.6

0.0

12.5

0.0

Boron and its compound

3.2

0.0

0.0

0.0

1.3

0.0

1.9

0.0

Octylphenol ether

5.0

0.0

0.0

0.1

0.0

0.0

4.9

0.0

Poly (Oxyethylene) Nonylphenyl Ether

6.1

0.0

0.0

0.0

0.1

0.0

5.9

0.0

Formaldehyde

1.5

1.5

0.0

0.0

0.0

0.0

0.0

0.0

Manganese And Its Compounds

14.9

0.0

0.0

0.8

2.6

3.7

7.8

0.0

Molybdenum and its compound

1.4

0.0

0.0

0.0

0.0

0.0

1.4

0.0

22,669.4

2,203.9

0.3

18.8

2,127.0

6,558.2

4,978.6

6,782.3

Total

Environmental Performance

Environmental Performance* The PRTR Law is “a law enacted to promote the monitoring and control of emissions into the environment of designated chemicals.”Compiled for substances with volume handled 1 tons or more, according to the expansion of scope under the PRTR Law

36

37

Efforts toward Resource Recycling: Waste Reduction

We have reduced the amount of waste per unit!

We make efforts to reduce waste and increase efficiency in our production processes, so as to contribute to thebuilding of a sustainable recycling society. There was a slight increase in waste in 2003 due to an expansion of
our lines of business, but our efficiency indicators, in particular per unit waste emissions, showed improvement.

Examples of the efforts being made by the DNP Group toachieve the environmental targets
Our efforts to reduce the amount of waste generated
and improve per unit emissions are tied to our “Production 21
Efforts” underway at our manufacturing sites. These are theefforts carried out for the “Cost Structure Reforms” outlined in
the DNP Group’s “Vision for the 21st Century”. They were initiated in 2002, with the aim of eliminating all inefficiencies fromour manufacturing processes. Stated precisely, they are efforts
to improve the non-defective rate and shorten lead times.
Our efforts to achieve zero emissions (reducing the useof final disposal sites) and improving recycling so that processing of waste generated in our production processes does
not involve the use of final disposal sites depend upon our
selection of waste disposal contractors who conduct thoroughseparation and make effective use of waste at the sites where
it is generated. In real terms this means converting wastepaper
to raw material for papermaking, converting waste plastic,
sludge, and incinerator ash to raw materials for cement, converting waste plastic or wastepaper unsuitable for papermaking
into RPF (Refuse Plastic and Paper Fuel), distillation recovery of
waste oil, and scrap metal recovery. The main challenge in thearea of improving recycling is the effective utilization of waste
plastic containing chlorides, such as PVCs. While it is possible
to develop raw materials from plastics that do not contain chlorides, the use of final disposal sites in areas where substitutematerials cannot be used is unavoidable.

General Affairs Section

signifies a reduction of 21%.

We have reduced the waste generation rate!

Koji Ueda

Commercial Printing
Group, Production 21
Promotion Division,Standardization
Promotion Group(Unit: %)(Unit: tons/¥ million)

0.5
0.4

100
0.428 0.413

0.3
0.2

80
60

0.236

0.312

78.8

77.6

74.2

71.9

0.325

Fujio Kitagawa
General Affairs
Section, General
Affairs Department

0.211 0.202 40

17.7

15.4

15.1

14.8

2000

2001

2002

2003 (FY)

Used products generation ratio

Recycle ratio

0.1

20

0

0
1997

1998

1999

Emissions per unit of production

Efforts at Dai Nippon Printing Co., Ltd. Commercial Printing Operations Enoki Plant
Our plant conducts commercial printing of catalogs, pamphlets, and other printed materials. There are various“losses” of input materials that occur during production, and these create a substantial amount of “waste”.
In order to reduce this sort of waste, our plant is promoting “Improvement of the Non-Defective Rate” and“Promotion of Digitalization” as its main “Production 21 Efforts” throughout the plant.
In real terms, this means we have enlisted the participation of all employees in every unit in the printing process,from the manuscript to the making of proofs, in order to cut losses (paper losses) generated in the offset printing process. We have also succeeded in reducing proofing film waste and developing fluid waste, which previously had been
generated in large volume, by promoting the digitalization of the proof making process. As a result, the waste generation rate in 2003 was reduced by 3.9 points in comparison with 2000, signifying a broad decrease.

We have improved the recycling rate!

Per unit waste emissions
Waste generation rate / recycling rate

Waste emissions(Unit: 1,000 tons)

Efforts at Dai Nippon Printing Kenzai Co., Ltd. Tokyo Plant
Our plant manufactures decorative coating paper and chemical decorative film, which are decorative materials
used in housing construction.
In 2000 our recycling rate was stuck at 55%, with a final disposal site usage rate of 36.2%. Analysis of the reasons for lack of progress in recycling showed that separation was not being executed properly, with wastepaper andwaste plastic being wrapped into the same roll, and plastic containing PVC being mixed in with other plastic.
In response to this we established a separation system whereby separation is performed at the site where thewaste is generated, with separate storage sites for wastepaper and waste plastic. We also installed rolling and cutting
equipment, and by completely separating wastepaper and waste plastic we made the waste usable as cement firing fueland RPF (Refuse Plastic and Paper Fuel). The recycling rate in 2003 was 87.8%, with a final disposal site usage rate of
7.4%, representing a broad improvement in comparison with 2000. We are continuing efforts toward our 2004 goals of
92% and 4%, respectively.

E

B

180

15

15

120

98

90

28

27
21

24

0

1997

1998

17

71

67

31

30
19

21
1999

Information Communication

2000

97

20
32

18
25

34

37

19

93

Unused Materials

17
21

Other 2%
Metals 3%

39

Electronics

Lifestyle & Industrial Supplies

BC(Unit: 1,000 tons)

800

Waste B

O
Other
3%
MetalsM
2%Paper 12%

46

50

55

63
222

170

181

208

71

70

86

93

248

258

272

268

1997

1998

Information Communication

1999

2000

75

506

148

72
142

Oils 3%
Fluids8%
Oils
5%

Fluids 13%

Plastics10%

A

94

97

99

195

189

2001

2002

100%
Total unusedmaterials
519,300 t

Lifestyle & Industrial Supplies

Commercial Waste
Metals 3%
Oils 2%
Fluids 17%
Plastics 3%2003 (FY)Electronics

BC

D
Paper 6%
Plastics 10%
Fluids 5%

Waste Emissions E + F

D

22.3%
Waste subject to onsite intermediate
treatment
116,000 t

C

Other 12%
Ash 4%(Processed by on-siteincinerators and sludge
dehydrators)

62.8%
Commercial
waste
326,000 t

519
65
166

202

On-Site Intermediate
Treatment
Other 0%

C

600

0

A

S

16
17
2002 2003 (FY)2001

Total waste generation

200

14.9%
Waste not subject
to on-site intermediate treatment
77,300 t

37.2%
Waste
193,300 t

16

60

400

38

Keiichi Otsuka

Environmental Performance

Environmental Performance

Targets To achieve the following targets by FY 2005:> Reduce waste emissions per unit of production (Waste emissions/production) by 20% from the FY 2000 level.
> Reduce the amount of unusable materials generated by 10% from the FY 2000 level.
> Achieve zero emissions at 20 sites.
> Reduce the unused product generation ratio (unused product generation amount/total material inputs) by
20% from the FY 2000 level.
> Achieve a recycling ratio (Recycle amount/unused product generation amount).
Results> Per unit waste in 2003 was 0.20 tons/¥100 million, in comparison with .312 tons/¥100 million in 2002, signifying a 35.3% decrease. “Production” is indicative of business activity, and represents the total amount ofadded-value for companies subject to disclosure in this report.
> The total waste generation in 2003 was 519,000 tons, in comparison with 646,000 in 2000, signifying a
19.7% decrease. Nevertheless, due to an increase in the number of sites subject to reporting, there was anincrease of 13,000 tons in comparison with 2002.
> In 2003, the Dai Nippon Polymer Company Kashiwa Plant and Dai Nippon Jushi Company achieved zero
emissions. Due to the closure of the Ichigaya Publication Printing Operations Gotanda Plant, there was a
total of seven zero emissions sites. There were 28 sites with 1% or less emissions going to the final disposal
site, with four of these added since 2002.
> The waste generation rate in 2003 was 14.8%, marking a 16.4% achievement over the 2000 rate of 17.7%.
> The 2003 recycling rate was 78.8%, roughly at the target level.

Efforts at DNP Technopack Yokohama Co., Ltd.
Our plant conducts uniform manufacturing of all types of paper containers. Recycling of the paper used to makepaper containers is difficult, because of its multi-layered construction. Therefore, until recently it has been treated aswaste. We worked together with the paper companies to come up with a recycling method for this paper, and as a result
are able to use it effectively as raw material for paper. This has had a great effect on reducing the volume of waste.
We are also making reductions through a project initiated through the DNP Group’s “Production 21 Efforts”. Throughthe “Yield Improvement Project” we have standardized manufacturing conditions so as to reduce printing losses andwork stoppages due to error. Through the “Planning Loss Improvement Project” we have minimized blank paper losses
that increase when layout becomes complicated. Through the “Warehouse/Work In Progress Curtailment Project” wehave reduced waste due to excess production.
As a result of these efforts, waste generated per unit in 2003 was 0.484, in comparison to 0.612 in 2000. This

(Amount recycled forGa fee or free of charge)
11.3%
Materials recycled
58,800 t
Materials Recycled G + K
Other 11%

Metals 4%

Sludge 5%
K 1.8%
Waste outsourced
Oils 13%for intermediate
treatment andheat recovery
Fluids 8%9,600 tWaste Outsourced for Intermediate H
Treatment
Other 13%

Metals 5%

Paper 3%sSludge
13%

S

Oils
11%

Fluids10%

Other 1%

(Ash, dehydrated sludge, etc.)

F

2.6%
Waste after on-site
intermediate
treatment
13,500 t

Oils
14%

J

H 2.4%
Waste outsourced
for intermediate
treatment
12,600 t(Final waste amounttransported directly fromsites)

0.4%
Landfill waste
2,300 t(Landfill waste after
outsourcing)Landfill Waste Disposal
Other 9%I

2.3%
Landfill waste
12,200 t

Ash
12%

I + J

Paper 6%

Fluids5%39

Measures against Global Warming

Efforts toward Resource Recycling: Recycling of used office paper

We are making efforts toward the prevention of global warming, such as seeking to prevent greenhouse gas emissions by installing energy-saving equipment and switching to different fuels. Due to the increase in sites subject
to reporting, each of the target indicators worsened in 2003, but if the increase due to the increase in sites istaken into consideration, we are in fact continuing to achieve our targets for greenhouse gas emissions and energy
consumption.

We are making efforts to separate office waste and collect wastepaper, so as to contribute to the building of asustainable recycling society. Despite an increase in the number of sites subject to reporting, we have attained
our 65% wastepaper collection rate* for the first time in three years.
* Wastepaper collection rate = amount of wastepaper collected / {amount of wastepaper collected + general waste amount (excluding cans, bottles, garbage)}

FY
Amount of wastepaper collected
Cardboard
Magazines
Newspapers
High-quality paper
General waste amountAmount of wastepaper collected+ general waste amountAmount of wastepaper collected
Number of sites

Amount of wastepaper collected / Wastepaper collection rate

2000
959
118
781
22
39
510

2001
1,015
125
740
78
72
657

2002
1,074
154
770
65
86
651

2003
1,231
165
930
65
71
569

1,470

1,672

1,725

1,800

500

65.3%
13

60.7%
25

62.3%
27

68.4%
29

0

(Unit: tons / %)

2,000

80

65.3

1,500
1,000

959

60.7

62.3

1,015

1,074

68.4
60

1,231
40

Heat values are TJ (terajoules) = joules 1012

0
2000

2002

2001

Newspapers

2003

(FY)

High-quality paper

Efforts toward Resource Recycling: Water recycling
Efforts toward resource recycling: Water recycling
Total water use for the Group as a whole was 14,139,000 m3 in 2003. This breaks down to 157,000 m3 consumed in
product manufacturing, 11,843,000 m3 discharged as wastewater into sewers, with the remainder of 2,139,000 m3 emitted into
the atmosphere as steam. 523,556,000 m3 was recycled*1 for heating or cooling of manufacturing equipment, the air conditioningof buildings, and in product cleaning, resulting in a 38-fold water usage ratio*2 (an increase of 1.4-fold over the previous year).
Much of the water usage is for the heating or cooling of manufacturing equipment, the air conditioning of buildings, and in product cleaning, so the majority of plants are

Calculation methods for greenhouse gases and energy consumption
Greenhouse gas emissions are calculated in this reportaccording to the Ministry of the Environment’s “Guideline forcalculation of greenhouse emissions from businesses” (completed in July 2002), with past data also recalculated. The six
greenhouse gases specified according to the Kyoto Protocol
are subject to monitoring. There were no emissions of HFC,
PFC, or SF 6 in 2003. The calculation method used for energy
consumption is the same as that used last year.

equipment in these closed systems in one year.

Transitions in Emissions of Greenhouse Gases (Unit: 1,000 tons)

Water usage ratio = (amount consumed + wastewater amount + amount of recycled water) / amount of water used.

Fiscal year
CO2 (ton)
CH4 (CO2 ton)
N2O (CO2 ton)
Total

Water Input-Output(The total amount for DNP group in FY 2003)(Unit: 1,000 m3)

Amount of water used

16,00015 315
15,31514 343
14,343

12,00013,486

14,1398,000
2,139,000m3
Water
consumption
14,139,000m3
12,000,000m3

Flow of proesses that use
the water recycling system
523,556,000m3

Wastewater
11,843,000m3

Flow of processes that do not use
the water recycling system
12,000,000m3

Product
157,000m3
Hokkaido Coca-Cola
Bottling Co., Ltd. uses a
portion of its water
consumption amount inproducts.

Use of Rainwater
The DNP group promotes effective use of rainwater collected fromoffice building roofs. In FY 2002, total of 4,818 m3 of rainwater was usedby the C&I building and DNP Logistics Co., Ltd. building, located in Tokyo,
which use rainwater as flush water in 37.6% of company toilets.
Rainwater Consumption and Utilization Ratio
FY
Used in toilets (m3)
Rainwater consumption (m3)
Rainwater utilization ratio (%)

40

4,000
0
2000

2001

2002

2003

14,3806,210
43

16,0704,850
3012,8304,820
3810,6304,660
44

Rainwater utilization ratio (%) = (Rainwater utilization amount / water flush amount) ×100

2002

2003

Water usage ratio

30

32. 3

(FY)

(Unit: -fold)

40
34. 0

36 6
36.

38 0
38.

(Unit: 1,000 tons)

1,000

750
500

899

867

849

842

2000

2001

2002

452

250

0
1990
Energy consumed

2003

(FY)

Industrial wastes incinerated

1990
452
452

2000
866
0.1
1.0
867

2001
848
0.1
0.9
849

2002
841
0.1
0.7
842

2003
898
0.1
0.8
899

Method of calculating energy consumption per unit of production and CO2 emissions per unit of production
Energy consumed per unit of production = Energy consumption amount (TJ) / production (¥100 million)
CO2 emissions per unit of production = CO2 (1,000 tons)
emitted through consumption of energy (fuel, electricity) / production (¥100 million)
Production indicates the amount of business activity. For
this factor, we use the total value added amount of affiliates
subject to disclosure in this report.

(Unit: TJ)

25,00020,00018,50018,10018 10018,10019,300

2000

2001

2002

2003

15,00010,000

9,400

5,000
0
1990

Energy Consumption per Unit of Production(FY)(Unit: TJ/ ¥100 million)

5.00
4.00

4.10

4.32

4.08

3.94

1990

2000

2001

2002

4.19

3.00
2.00
1.00
0

CO2 Emissions per Unit of Production
20

5.00

10

4.00

2003 (FY )(Unit: tons/ ¥100 million)

198

192

181

177

1990

2000

2001

2002

187

3.00

0
2000

2000

2001

Greenhouse Gas Emissions

Energy Consumption (Converted to heat)proceeding with the use of recycled water through a closed system. The amount of recycled water is counted as the amount that flows through heat exchangers and cleaning*2

Results> The greenhouse gas emissions amount was
899,000 tons, an increase of 3.7% (approximately
32,000 tons) in comparison with 2000.
> The energy consumption amount was 19,300 TJ(terajoules), an increase of 4.3% (approximately
800 TJ) in comparison with 2000.
> Per unit energy consumption was 4.19 TJ/¥100
million, and increase of 2.2% in comparison with
1990. Per unit CO2 emissions were 187 tons/¥100
million, a decrease of 5.6%.
Note: All figures for greenhouse gas emissions amounts indicate
conversion to CO2 in tons.

20

Magazines
Cardboard
Wastepaper collection rate

*1

Targets
To achieve the following by FY 2010 :> To maintain greenhouse gas emissions at the FY
2000 level.
> To maintain energy consumption at the FY 2000
level.
> To reduce energy consumption per unit ofproduction by and CO 2 emissions per unit ofproduction by 15% and 20% respectively, against
a base year of FY 1990.

Environmental Performance

Environmental Performance

We are making efforts to separate and collect wastepaper at every site, and in 2003 we collected 1,579 tons. We were able toascertain the amount of general waste and obtain accurate collection rates for 29 sites, which is two more than in 2002, and tallied
a collection amount of 1,231 tons with a collection rate of 68.4%. The amount collected at the large-scale Ichigaya Publication
Printing Operations site increased, while the waste amount from the Enoki Commercial Printing Operations site decreased, resulting in the improved collection rate.

2001

2002

2003

(FY)

2.00
1.00
0
2003

(FY)

41

Reduction of CO2 from Transport Operations: The efforts of DNP Logistics Co., Ltd.

Greenhouse gas emissions due to energy consumption(Unit: CO2 1,000 tons)
600

400

438

419

394

292

303

326

274

429

Target- We will attain the following 2000 comparison
targets by 2010:

335

200
76

76

0

1990
Electric
Fuel oil

2000

2001

2002

Municipal gas
Kerosene

LPG

Steam Fuel11852003 (FY)* Transport ton kilometer = E (cargo amount X distance

Energy consumption
12,000

8,000
6,400

(Unit: Heat TJ)

11,40010,900

5,700

5,900

10,2006,400

11,200

6,500

4,000
1,500

1,300

Improving the transport situation at the Sayama and Yokohama sites

In 2001, Sayama and Yokohama were selected as modelsites for efforts to improve the transport situation throughthe use of digital tachometers, with the result of further progress in reducing CO 2 emissions. A comparison of 2003 with
2000 revealed a proportionate 16% reduction, with a fuel use
amount of 60 kl, and CO2 emissions volume of 172 tons.

0
Municipal gas
Kerosene

LPG

Steam FuelWe have reduced greenhouse gas emissions.
Dai Nippon Printing Company, Ltd. Information Media Supplies Operations / IMS Dai Nippon Co., Ltd. Sayama Plant

Yuichi Izumi> Reduce per unit CO2 emissions (CO2 emissions/transport ton kilometer*) by 5%.
> Reduce per unit amount of fuel used for transport (amount of fuel used/sales) by 20%.

traveled)

Electric
Fuel oil

Information Media
Supplies Operations

DNP Logistics Co., Ltd., which all of the transport needs of the DNP Group, is a general transport company witharound 200 trucks. It is based in the Tokyo area, but covers the entire area from Northeast Honshu to Kyushu. In
2003, DNP Logistics broadly reduced its per unit CO2 emissions by 31% in comparison with 2000, although its perunit amount of fuel used for transport was reduced by only 6%. CO2 emissions have been reduced by 24%.

Our plant makes thermal transfer ribbons used in printers. We converted our four fuel oilburning boilers to municipal gas, and began operating them in May 2003. We also updated our air
conditioners, and as a result our CO2 emissions went from 11,800 tons in 2002 to 8,700 tons in
2003, a decrease of 3,100 tons (26%). Our switch to municipal gas also allowed us to broadly cut
emissions of NOx and SOx, which are atmospheric pollutants. Our goal is to create an environmentally friendly plant, and we are continuing to make progress in our environmental conservation efforts, especially in our greenhouse gas measures, by installing energy-saving equipment
and practicing thorough energy conservation.

Digital tachometer

Responding to diesel vehicle regulations

We have completed our response to the diesel vehicle
regulations enacted since October 2003 by 8 municipalities in
the Tokyo area. We are proceeding with our response in the
Kansai region.

CO 2 emissions amount and per unit data
Fiscal year
Transport ton
kilometers(1 million tons /kilometer)
Amount of fuel used
(kl)
Sales
(Yen 100 million)
CO2 emissions amount(tons)
CO2 emissions amount(tons)Per unit amount of fuelused for transportComparison
with 2000

2000

2001

2002

2003

53.18

55.65

55.47

58.53

2,299

1,997

1,764

1,743

27.60

25.74

22.65

22.44

6,120

5,310

4,700

4,630

(24%)

115

96

85

79

(31%)

83

78

78

78

(6%)

Environmental Performance

Environmental Performance

Changes in 2003
Four sites were newly included for coverage in 2003:
DNP Technopack Tokai, Company, Ltd. (manufacturing, printing, and processing of packaging), which bought into in 2002;
Advanced Colortech, Company, Ltd. (a maker of color filters);
a newly constructed DAP Technologies Company, Ltd. plant (amanufacturer of backboards for plasma display panels); the
DNP Industrial Materials Company, Ltd. Tsuruse Plant (a manufacturer of electrical parts). Also, the closure of the Ichigaya
Publication Printing Operations Gotanda Plant caused it to be
removed from coverage.
Because of the addition of the first four sites listed above,along with the removal of the last, on balance there was anincrease in the target indicators. Were the added portions
excluded, greenhouse gas emissions would have been 850,000
tons, a 2.0% (approximately 170,000 tons) reduction in comparison with 2000, and energy consumption would have been
18,300 TJ, a 1.1% (200 TJ) reduction in comparison with 2000,
meeting the targets.
There were no large, new facilities, such as cogeneration
systems, introduced in 2003 that had a great reducing effect.
Our efforts to control emissions of greenhouse gases consisted in switching from fuel oil to municipal gas, updating air
conditioning systems, and developing and operating underenergy control standards.

Fuel reductions through transport situation improvements
at the Sayama and Yokohama sites
Fiscal year
2000
2001
2002
Distance traveled (1,000 km)(Sayama)
1,050.9
979.8
880.3(Yokohama)
955.3
917.1
846.9
Amount of fuel used (diesel) (kl)(Sayama)
225.3
190.2
145.8
(Yokohama)
219.8
195.6
178.2
Fuel economy (km/l)(Sayama)
4.66 5
5.15
6.04(Yokohama)
4.35 6
4.69
4.75
Amount of fuel used (kl) when converted to 2000 fuel economy(Sayama)
210.0
188.9
(Yokohama)
211.0
194.7
Fuel use reduction amount (kl)(Sayama)
19.8
43.1(Yokohama)
15.4
16.5
Total
35.2
59.6
Fuel reduction percentage (%)(Sayama)
9.5
22.8(Yokohama)
7.3
8.5
Average
8.4
15.5
CO 2 reduction amount
107.9
170.2
172.2
(tons)

2003
849.8
849.1

1
2

145.2
172.0

3
4

5.85
4.94

1÷3
2÷4

182.2
195.4

7
8

1÷5
2÷6

37.0
23.4
60.4

9
10
11

7−3
8−4

20.3
9÷7×100
12.0
10÷8×100
16.0 11÷(7+8)×100

Switch to hybrid vehicles
We have around 500 vehicles at our offices nationwide for our sales representatives to use when visiting customers. The first stage will
be to switch 40 of the 100 company cars we keep in the Tokai region to low-environmental impact hybrid vehicles. We will then proceed to doso nationwide after observing the results of the first stage.

Junichi Okamoto

DNP Facility Services
Co., Ltd.

42

43

Environmental Risk Management

Major Laws and Regulations
Law
Voluntary Standards
Basic Environment Law
Basic Law for Establishing a Recycling-Based Society
Law Regarding the Promotion of the Utilization of Recycled Resources
Law for Promotion of Sorted Collection and Recycling of Containers
and Packaging
Waste Management and Public Cleansing Law*
Law Concerning the Promotion of the Measures to Cope with Global Warming
Law Concerning Rational Use of Energy*
Air Pollution Control Law*
Water Pollution Control Law*
Law for Special Measures for the Conservation of the Environment *of the Seto Inland Sea
Sewerage Law*
Noise Regulation Law*
Vibration Regulation Law*
Offensive Odor Control Law*
Soil Pollution Control Law*
Law Concerning the Protection of the Ozone Layer through the*Regulation of Specified Substances and Other Measures
Law Concerning the Recovery and Destruction of Fluorocarbons
Law Concerning Special Measures against Dioxins*
Law Concerning the Improvement of Pollution Prevention Systems *in Specific Factories
Law Concerning Special Measures against PCB Waste
Law Concerning the Reporting of the Release into the Environment *of Specific Chemical Substances and Promoting Improvements in
Their Management
Law Concerning Regulation of Pumping-Up of Ground Water for
Use in Building
Factory Location Law
Local Regulations*

Isolation valve of final discharge tank
Ushiku Plant, DNP Data
Techno Co., Ltd.

In our efforts to conserve the environment in the areas surrounding our plants and prevent our plant operations
from being a source of environmental pollution, we have established voluntary standards that exceed the requirements of the laws and regulations concerning air, water, odors, noise, and vibration. In 2003, we saw improvements in each of the five environmental categories, and 90% of the overall data for air, water, odors, and vibration
surpassed our voluntary standards. Nevertheless, although we showed a broad improvement of 13 points overthe previous year in attaining our voluntary standards for noise, but showed less improvement in the comparative
figures for all four other categories.
Targets We aim to achieve the following targets by FY 2005:>>>>

To keep maximum densities of air emissions subject to emissions regulations at 70% of the required standard or less.
To keep maximum densities of wastewater discharges subject to wastewater regulations at 70% of the required standard or less.
To keep the maximum density of odors at our site perimeters at 70% of the required standard or less.
To keep the maximum level of noise and vibration at our site perimeters at 95% of the required standard or less.

Results

Environmental Performance

Environmental Performance

In addition to keeping track of trends in environmental regulations that apply to group operations, and maintaining compliance, inan effort to maintain even stricter environmental controls, the DNP group has established its own voluntary standards (water, air, odors,
noise and vibration), as well as its own voluntary guidelines (chemical substance management, measures against ground contamination, etc.), which are strictly observed. Furthermore, the group promotes risk management, making efforts to prevent foreseeable accidents and emergencies, establishing emergency response systems and performing drills in preparation for emergency situations.
There were some annual measurement categories in which we failed to meet our voluntary standards in 2003, and improving thissituation will be a challenge for us going forward. We have carried out improvements, such as, in the area of air pollution measures,switching from fuel oil to natural gas and performing burner maintenance. Water quality measures we have taken include maintaining
the functionality of our wastewater treatment equipment and installing isolation valves on final discharge tanks, and reviewing the leakage prevention embankments surrounding tanks. We have taken measures against noise and vibration such as monitoring and making
improvements at sources of noise based upon voluntary measurements, and installing noise barriers. We have also implemented antiodor measures, such as installing additional deodorizing equipment and working to prevent odor generation. We have also provided forthe unlikely occurrence of an emergency by conducting emergency drills for appropriate action in the event of a municipal gas leak or an
effluent discharge or leak. We are also engaging in proper storage and control in prescribed areas of electrical equipment containing
PCBs. We must nevertheless give consideration the single accident that occurred in 2003, which was the leak of approximately 50 litersof solvent at the Ichigaya Publication Printing Operations Ichigaya Plant.
Compliance with Applicable Laws and Regulations
The DNP group makes a continual effort to detect abnormalities at an early stage and prevent incidents of pollution in order tominimize environ-mental damage and the economic impact sustained as a result, as well as the risk of a loss of social trust arisingfrom such incidents.
The DNP group constantly monitors trends in environmental
laws and regulations, noting their applicability to our business
operations and prod-ucts. We have implemented notification andeducational measures to ensure that our employees are well versedin the following laws and regulations, positioning them as items
that apply directly to managerial procedures. In addition, when
deemed necessary, we establish our own voluntary standards,
which are even more stringent than national laws, and ensurecompliance though daily monitoring and measuring activities.
Furthermore, the DNP group performs on a regular basis its own
environmental audits, which confirm the state of our risk management and compliance.

44

Monitoring and Measurement of Environmental Effects> As shown in the table below, 2003 marked improvement over 2002 in attaining our targets in every category. There was abroad improvement of 13 points over the previous year in terms of noise reduction, but we showed less improvement in thecomparative figures for all four other environmental categories.

The table below exhibits the achievements we made in FY 2003.

Fan soundproof wallTokyo
Plant, Dai Nippon Printing
Kenzai Co., Ltd.

Main improvements made in 2003
Main air pollution measures
Burner maintenance
Burner maintenanceInstallation of deodorizing
equipment and heat recovery equipment
Boiler idling / discontinuance
Changing of catalysts inexhaust treatment equipment
Installation of exhaust treatment equipment
Installation of economizers
Emergency response drills

mentMain noise measures
Noise measurement
Background noise measure-

Measures against noise coming from building windows
Measures against noise fromexhaust fans
Measures against noise fromoutside units of air conditioners
Installation of noise barriers
Installation of anti-noise
sheetsInstallation of automatic doors
Repair of wall joints
Regulations on equipment
operating hours
Main vibration measures
Vibration measurement
Compressor inspection andmaintenance
Maintenance of the printingpress drive motors

trap
tank

Main water quality measures
Change to direct plate making
Cleaning of dining hall grease
Discontinuance of underground oil

Change of solvent cleaner
Installation of wastewater
treatment facilities
Change septic tank filter medium
Replacement of ion-exchange
resin Installation of leakage prevention embankments
Installation of leakage retaining
walls
Installation of isolation valves
on final discharge tanks
Inspection of oil absorbentInstallation of nitrogen and phosphor
measuring equipment
Calibration of measuring
gaugesEmergency response drills
Main odor measures
Odor measurement
Maintenance of deodorizing
equipment
Testing of functionality of
deodorizing equipment
Measuring of deodorizing efficiency
Cleaning of deodorizing equipment catalysts
Changing of deodorizing equipment catalysts
Installation and updating of

Item

Voluntary Standards (Targets)

The voluntary standard achievement ratio in FY 2002 The voluntary standard achievement ratio in FY 2003

Air

Under 70% of legal standards

93%

95%

Water

Under 70% of legal standards

89%

92%

Noise

Under 95% of legal standards

47%

60%

Vibration

Under 95% of legal standards

100%

100%

Odor

Under 70% of legal standards

89%

90%

The voluntary standard achievement ratio is determined by multiplying theindexes measured for air, water, odors, noise and vibrations in plants subject
to regulations (total measured indexes) by the target attainment indexes foreach item.
Air: Ratio of voluntary standard achievement index number against total
measured index number for SOx, particulate, NOx and dioxin.
Water: Ratio of voluntary standard achievement index number against
total measured index number for pH, COD, SS etc. (excluding watertemperature)
Noise: Ratio of time zones in which voluntary standards were achieved
out of the total number of times zones in which measurements were taken(daytime, morning, evening & night)

Improvement

Vibration: Ratio of time zones in which voluntary standards were achieved
out of the total number of times zones in which measurements were taken(daytime, night)
Odors: Ratio of voluntary standard achievement index number against
total measured index number for emissions duct odor density, perimeter
fence odor density and number of substances for which density
measurements were taken.
* State of compliance with emissions duct regulations also included inodor measurement data.
For items in which measurements were not taken in the previous year, and inwhich targets were not achieved according to the most recent deemed theseas not achieving targets in the fiscal year concerned.

Regulatory infringements / accidents / complaints
Although we do our best to comply with all environmental laws and regulations, over the past three years there has been one
discharge of effluent into a river, and one accident involving a leakage of solvent.
There are no ongoing legal disputes involving environmental issues. We have unfortunately had some complaints from areas
neighboring our plants concerning noise and odors. Whenever we receive such complaints we launch a thorough investigation
into the cause of the problem, and work to make improvements to prevent a recurrence.
Date of occurrence
April 11, 2002

Name of site
Kyushu Dai Nippon Printing Co., Ltd.
Fukuoka Plant

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

March 29, 2004

Ichigaya Publication Printing
Operations Ichigaya Plant

There was an accident involving the leakage of ink dilution solvent, which was caused by deterioration in a pipe fitting in a gravure ink pipe. The
worksite alarm was sounded immediately after the leak occurred, and the ink supply pump was shut down. Nevertheless, approximately 50 liters of
ink leaked outside the premises. Sand and other materials were immediately laid to absorb the solvent, and while a portion did flow into the gutter,
there was no leakage into the main sewer. After the accident occurred, we took measures to prevent any expansion of the leakage, and we filed
accident reports with both the local fire department and the water bureau. We proceeded to take measures against recurrence under the guidance ofthe fire department.

45

Management of Chemical Substances

Usage Supervisor
Warehouse Supervisor

PRTR
Group

Environmental Committees
in Each Operations Group

Storage Tank Supervisor

Promotion
OfficeWaste Supervisor

DNP Group Chemical Control Standards
Purchasing prohibited: 10 chemicals These are chemicals
that may not be contained in any raw materials we purchase.
Inclusion in products prohibited: 6 chemicals These arechemicals that may not be contained in amounts above aprescribed level in any DNP products.
Inclusion in products controlled: 13 chemicals
These are chemicals for which inclusion in DNP products
is monitored.

Chemical Substances Management Guide (Contents)

I. Establishing a Chemical Substance Management
SystemII. Monitoring Amount of Chemical Substances Handled
III. Implementing Chemical Substance Management
1. Examining Facilities
2. Managing Waste that Contains Chemical Substances
3. Restricting Emissions through Facilities Improvement
4. Management by Production Process
5. Proper Usage
IV. Preparing for Accidents and Emergencies
V. Education and Training

Furthermore, to minimize the pollution in the event of an
accident, we have installed emergency materials and perform
emergency training.

Kobe Plant, Dai Nippon Printing Kenzai Co., Ltd.

Tokyo Plant, The Inctec Inc.

Site

Content of drill

Air pollution Prevention

DNP Datatechno Ushikyu Plant

Municipal gas leak response drill

Dai Nippon Printing Precision Devices Mihara Plant

Acid gas and municipal gas leak response drill

IMS Dai Nippon Okayama Plant

Gas leak / Fire response drill

Dai Nippon Printing Precision Devices Mihara Plant

Water yard crack response drill; leak during chemical delivery response drill; effluent leak into river response drill

DNP Datatechno Ushikyu Plant

Incompletely treated or untreated wastewater discharge dril

Dai Nippon Printing Construction Materials Kobe Plant

Solvent or ink leak response drill

Dai Nippon Printing Construction Materials Okayama Plant Solvent or ink leak response drill

46

Dai Nippon Printing Construction Materials, Tokyo Plant
Kami Fukuoka Plant (Electronics Division)
Kuki Plant (Electronics Division)
Dai Nippon Printing Fine Electronics, Kyoto Plant
Dai Nippon Printing Precision Devices, Mihara Plant
Tokai Dai Nippon Printing

Soil Inspection

Dai Nippon Printing Construction Materials, Okayama Plant(Former) Ichigaya Publication Printing Operations, Gotanda Plant

PCB storage Enokicho Plant, Commercial
Printing Operations

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

Category

Water pollution prevention

Groundwater Inspection

Storage of toxic materials
PCBs are currently in storage at 26 sites. There was anincrease of 17 units to 273 total in 2003.The PCBs are containedin oil that was extracted from transformer equipment that is
no longer in use. The PCBs are stored in special contain-ers inspecial storage rooms, and are managed under the strictest of
conditions in accordance with applicable regulations to ensure
prevention of leakage or loss. Each site makes sure the PCBs
are stored in the appropriate manner, performing daily inspect ion s a nd m a k in g r e gul arreports to the authorities, andconfirming storage conditionsin annual internal audits.

Targets

Emergency Training (Performed in FY 2002)

Sayama Plant, IMS Dai Nippon Co., Ltd.

Sites inspected for soil and groundwater pollution in 2003

site of the former loading dock of 1.1~1.6 times the content
standard and 1.6~8.3 times the soluble content standard for
lead, 1.1~1.7 times the soluble content standard for arsenic,
and 1.4 times the soluble content standard for fluorine. We
commenced to conduct a cleanup operation under the guidance of the municipal authorities. All other inspections confirmed that no pollution had occurred at other sites.

We promote green purchasing of general supplies, such as raw materials for products and office supplies andequipment, so as to reduce the environmental impact in the business area upstream. We were unable to meet ourtargets for general supplies in 2003, but we broadly exceeded our target for raw materials with a 5.7% increaseover the previous year.

(each site)

Ushiku Plant, DNP Data Techno Co., Ltd.

Soil and Groundwater Contamination and Reduction Measures
The DNP group ensures that ground surveys be performed whenever a site that has used a hazardous substanceor decides to abolish certain facilities as specified in the Water
Contamina-tion Prevention Law. Furthermore, we also makeit a rule that in the event that ground contamination is discovered, the site must notify the governor of the prefecture concerned and perform appropriate measures such as removal of
the contaminated ground under the supervision. In FY 2002
we performed ground and groundwater examinations of thesites listed here, all of which were confirmed to be free ofcontamination. We conducted an inspection, based upon the“Municipal Environment Protection Ordinance of Tokyo”, ofthe former site of the Ichigaya Publication Printing Operations
Gotanda Plant. The results showed soil contamination at theEnvironmental Performance

Environmental Performance

Chemical control and response to potential emergencies
We have established the “DNP Group Chemical Control
Standards” for the monitoring and control of toxic chemicals,
including raw materials, and to ensure product safety and environmental conservation pertaining to chemicals. Controls on
29 chemicals are implemented based upon three categories,“Purchasing prohibited”, “Inclusion in products prohibited”,
and “Inclusion in products controlled”. We are making progress in our efforts at full achievement by December 2004 of ourtargets regarding chemicals listed in the “Inclusion in products
prohibited” category.
The DNP group uses solvents and chemicals during the
manufacturing process. Whenever these products are delivered or treated as waste after use, there remains the dangerof spillages. In order to address this situation, we have established a “Chemical Substances Management Guide” outlining
the proper treatment of chemical substances, and are striving
to reduce accidents, installing retaining walls and emergency
shutoff systems at chemical receiving areas, and installing
double-walled storage tanks, etc.

IMS Dai Nippon Sayama Plant

Vehicle fuel leak response drill

IMS Dai Nippon Okayama Plant

Extra high voltage substation oil leak response drill

Tokai Dai Nippon Printing

Leak response drill

The Inctech Tokyo Plant

Effluent leak response drill, ink leak response drill

Ground pollution prevention DT Circuit Technologies

Chemical disposal facility problem response drill

Note: Products covered by our own company standards (Purchasing Division Green Purchasing Standards) are as follows:
Paper: Paper containing recycled pulp, non-wood pulp paper, ECF / TCF pulp paper (paper that is made from non-chlorine bleached pulp).
Ink: Soy ink, water-based ink, and non-toluene ink (ink that does not contain toluene); substitute solvent, recycled solvent.
Manufacturing supplies: 32 sites falling under the jurisdiction of the DNP Purchasing Division are the focus of accumulation of Eco-mark products, processed materials and recycled materials.

Results> We exceeded our target for eco-friendly raw materials with a 5.7% increase over the previous year, but had a 0.7% decrease inpurchases in general supplies.

Raw materials (paper, ink, and manufacturing supplies)
We increased the amount of ECF and TCF pulp paper, andare making progress in switching to soy ink and water-based
ink. In the area of manufacturing supplies, we increased theuse of processed materials and recycled materials.
General supplies (office supplies and equipment, etc.)
As a result of a reduction in the product unit price and anincrease in the list of eco-friendly products registered on thelist at the Purchasing Division’s homepage, the purchasing
value represented an increase over 2002. The purchasing rate
decreased, however, by 0.7% in comparison with 2002.

Green purchasing trend(Unit: %)

30
24.3
20
15.9

10

11.0

9.1

18.6
12.5

11.8

2002

2003 (FY)

5.3

0
2000
Raw materials

2001
General supplies

47

Development and Sale of Environmentally-Conscious Products

Environmental Performance

In order to reduce the environmental impact throughout the product lifecycle, we have been promoting the development and sale of environmentally conscious products by establishing an “Environmentally Conscious ProductDevelopment Guidelines”. This is based on “Consideration of the Lifecycles of Products and Services”, whichis contained in the Green Purchasing Network’s “Basic Green Purchasing Principles” (revised June 12, 2001).
Sales of environmentally conscious products totaled ¥140.4 billion, an increase of 38% over the previous year andbroadly exceeding our target.
Target> Increase the sales of environmentally conscious products by 10% annually in comparison to the previous year.
Results> Sales of environmentally conscious products totaled ¥140.4 billion in 2003, an increase of 38% over the previous year (¥101.9 billion), achieving our target.

Sales of environmentally conscious products in
1999, the first year in which data were compiled, were ¥29.9
billion. Sales have steadily increased since then because of
our planning, development, and offering of the products to ourcustomers, and reached ¥140.4 billion in 2003.
The Information Communication Division has strongly increased its sales of products containing recycled paperand soy ink, as well as of cards that contain no polyvinyl chlorides. The Lifestyle and Industrial Supplies Division has had
a strong showing for its products that contain no chlorinatedmaterials, and for products that are now made of paper insteadof plastic, as well as its products that use reduced amountsof raw materials and products that use water-based ink. The
Electronics Division made a big contribution to the increasein Group sales with its sales of products containing no heavy
metals, and also of its products that are made without usingorganic solvents in the manufacturing process. In addition,
there was an increase in the sales of magazines made throughmethods that improve recyclability.

Sales of environmentally conscious products (Unit: billion yen)

1,600
1,404

1,200
800

630

400
0

299
269
30
1999

108

529
464
58
91
2000
2001

Information Communication

356

1,019
195
757
153
137

160

746

575

142
2003 (FY)2002

Lifestyle and Industrial Supplies

BC

Electronics

Environmentally Conscious Products Development Guideline
Reduction of Environmental Pollutants (Refer to p. 21, 25, 27, 30)
Elimination of ozone-depleting substances, heavy metals andorganic chloride compounds
Curbing of air emissions of greenhouse gases, nitrogen oxides,
etc. during life cycle
Examples:• Products that do not contain organic solvents• Adoption of raw materials that do not contain chlorine• Printed matter using soy oil ink• Adoption of raw materials that do not use heavy metals suchas chrome and lead
Conserving resources and energy (Refer to p. 30)
Restrictions on use of metal resources and fossil fuels
Examples:• Lightweight products• Products and systems that conserve energy during life cycle
Adoption of sustainable resources (Refer to p. 25)
Use of sustainable resources
Examples:• Products that use non-wood based paper• Paper products that were formerly made of plastic
Able to be used long term (Refer to p. 27)
Consideration of ease of repair and parts replacement, length ofmaintenance and repair services, expansion of functions, etc.
Example:• Card that can display updated information

48

Reusability (Refer to p. 25)
Products designed to be taken apart for cleaning, refilling, etc;
development of recovery and reuse systems that are easy for thepurchaser to use.
Example:• Refillable containers
Recyclability (Refer to p. 21, 25)
Consideration of whether product uses easy-to-recycle material,
whether it has been designed to break down and/or separate easily according to material, whether there exists a recovery/recycle
system that can be used easily by the purchaser
Use of recycled materials (Refer to p. 21)
Frequent use of recovered/recycled parts
Examples:• Printed matter using 100% recycled paper• Products that use paper as shock absorber• Products that use recycled plastic
Easy to treat and dispose of (Refer to p. 21, 25)
Consideration such that product causes minimum impact whenincinerated or landfilled
Examples:• Products that break down easily into base materials• Products that use plastic that breaks down naturally

Environmental Data

Environmental Data

We promote the disclosure of PRTR information foreach of our sites throughout the nation. We are also
working to provide more thorough environmental
impact information for our overseas sites.

[Contents] Environmental Accounting.............................................................................. 50
DNP Group PRTR Data by Site...................................................................... 52
Acquisition of ISO 14001 and Forest Certification.......................................... 55
Activities at Overseas Sites ............................................................................ 56

49

Environmental Accounting

DNP practices environmental accounting, a highly effective tool for promoting and evaluating the effects ofenvironmental conservation activities

Environmental benefits of environmental conservation activities
Details of benefits

Use as an environmental management tool•

Environmental accounting produces a breakdown of environmental conservation costs as that can be used as a reference for determining the effectiveness of environmental conservation activities.
Environmental accounting data is used to determine the cost of individual
environmental facilities, the Group’s overall budget for environmental conservation, and the amount of investment in environmental activities.
Environmental accounting is used to monitor and evaluate the effects andachievements of activities performed throughout the year in order to ensure
continuous improvement in our environmental performance.

Use as a tool for communicating with society• Environmental accounting provides the means for•

public release of our environmental conservation
efforts and their results.
The reception to concerning our environmental
accounting reports as received from shareholders, clients, and local communities we use as areference for improving our approach to environmental conservation.

Basis for calculation of environmental accounting information
Period covered
April 1, 2003 through March 31, 2004 (Environmental conservation facilities arethose considered as of March 31, 2004)
Scope of coverage
Environmental accounting was applied to the companies designated for consolidated accounting purposes, including the group’s domestic manufacturing
companies (45 companies and 59 sites), one distribution company and one mealcatering company, but excluding nine other companies, including those related to
trading, real estate sales, teaching material sales and software development.
Monetary unit
All monetary figures are expressed in millions of yen, rounded off to the nearest
million.
Announcement format
The format for presentation this fiscal year is the Comprehensive Benefits
Comparison Format as set for th in the Ministr y of the Environment ’s“Environmental Accounting Guidelines, FY2002.” Environmental conservationequipment and sales of environmentally sound products are also shown.
Basis for costs of environmental conservation activities• The environmental conservation costs include depreciation expenses forinvestments. Depreciation is applied in accordance with corporate tax law
regulations.
• Personnel costs for full-time workers were calculated at the average laborcosts per person, while personnel costs for workers holding two or more posts
were calculated at 1/10 or 1/5 the average personnel cost per person, depending on the worker’s assigned duty.
• R&D costs are the total costs incurred by our 11 R&D centers (10 in FY2000
and 2001) in the development of environmentally sound products and manufacturing equipment.

Basis for benefits of environmental conservation activities• DNP uses consumption per added-value as an indicator for the volume ofresources (energy and water) spent on business activities, as well as for thevolume of waste materials and CO 2 emissions. Furthermore, the DNP groupuses the added-value total of the company concerned as an indicator of thevolume of business activities, given that companies within the group perform
product transactions. The added-value amount is calculated pursuant to the“Management Analysis of Japanese Corporations” issued by the Ministry of
the Economy, Trade and Industry.
• The recycle rate of waste materials represents the percentage of the weight ofunwanted plant-generated materials that were recycled on- and off-site.
• Benefits of up/downstream costs are the effects of reduced CO 2 emissions
when disposing of containers or packaging.
• Benefits of environmental impact of transportation are the benefits of reduced
CO2 emissions during transportation of products by the distribution companies
included in DNP's consolidated accounting.
Basis for economic benefits of environmental conservation measures• We have calculated the benefits of energy- and resource-saving efforts using
the following formula:(Energy consumption per added-value amount or waste processing cost per
added value of benchmark period those of this period) value-added amount• Calculation of business activity amount was performed using the added-value
amount indicated in Item 1 of the above benefit calculation basis.
• For unit consumption, we used energy costs/added-value amount and waste
disposal costs/added value amount.
• For the benchmark period, the consumption or cost per value is the overall
average of the three years prior to this fiscal year. In calculating unit consumptions for the benchmark period, however, the energy cost was adjusted to thisfiscal year's price level due to dramatic price fluctuations.

Results of Our Environmental Accounting
Environmental conservation cost
Category(Unit : ¥ millions)

ExpenseInvestment

Details of major efforts

FY2002

FY2003

FY2002

FY2003

663

1,208

2,267

2,760

Refer to:Business area costs
Pollution prevention costs
Global environmental
conservation costs

1,332

246

1,000

1,158

Resource recycling costs

382

97

3,076

3,261

(Total business area costs)

2,377

1,552

6,343

7,180

Up/downstream costs

194

181

Administration costs

2,014

2,189

R&D costs

1,872

2,411

14

12

0
10,43723
11,996Social activity costs
Env. remediation costs
Total

2.377

1,552

Changing fuel (to LPG), adding deodorizing equipment and waste treatment
facilities
Controlling room temperature and lighting, adding inverters to electrical equipment
and implementing co-generation systems
Sort-and-recycle; zero-emission (using RPF as cement material) Use of recycledwater

34 – 37, 44

Designing environmentally friendly products; bearing container and packaging
recycle costs
Cost of ISO 14001 judging and registration fees; environmental measurement
costs; cost of preparing environmental reports
Research and development of environmentally sound products and production
methods
Planting of trees and landscape gardening outside the plant site; supporting
activities of environmental conservation organizations*

24 – 27, 30

22, 41, 42
38, 4055
20, 24, 26, 30
68
47*Includes ¥400,000 for WWF and ¥200,000 for Japan Greenery Research and Development Center

Environmental conservation costs to total costs ratio

50(Unit : ¥ millions)

Consolidated
total costs

Costs

Ratio

In-period investment

73,789

1,552

2.22%

Solvent and exhaust gas recovery and refining equipment, water recycling system, etc.

In-period R&D costs

24,097

2,411

9.26%

Non-vinyl chloride decorative sheets, de-chlorinating barrier film, biodegradable plastic, aqueous ink

Category

Remarks

Refer to:Details of major environmental conservation costs

Refer to:36, 37, 44
20, 24, 26, 30

All consumed energy was converted into average value incalories

41

0.25 Energy reduced by 0.25TJ per 100 million yen in added value

41

653 Year-on-year reduction of 6.0%

40

3.07

0.13 Water reduced by 130 m3 per 100 million yen

40

2,473

2,530

57 Total weight of paper, plastic, ink and metals

16

15.1

14.8

− 0.3 Ratio of unwanted materials that are main raw materials

56.5
626.7

25.2
660.3

-31.3 Calculated from fuel used
33.6 Calculated from supplied energy

3,521

2,204

41.1

49.7

Supplied energy

Energy consumption (TJ)

18,1003.94

4.19

Supplied water

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

13.486

14,1392.94

Supplied amount (in thousands of tons)

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

Amount of unwanted materials generated/suppliedamount (%)
Improvements in environmental impacts
SOx emission (tons)
Emissions to theatmosphereNOx emission (tons)
Emissions of negative environmental impact
substances (354 PRTR substances) (tons)
Discharges to water
COD discharge (tons)
areas
Discharges of environmentally hazardous substances(354 PRTR substances) (tons)
Discharges of waste Generated unwanted materials (1,000 tons)
materials
Discharged waste materials (1,000 tons)
Added-value unit consumption for the above (1,000
ton / 1 million yen)
Recycle rate (%)
Amount of pollutants transferred or released (of 354
substances subject to PRTR Law) (tons)
Emissions ofgreenhouseEmissions of greenhouse- gasses (1,000 t-CO2)
gassesAdded-value unit consumption (ton/100 million yen)
Benefits of upstream / downstream costs
Benefits related to goods produced by business activities
CO2 emissions at
the time of product CO2 emissions (1,000 t-CO2)
disposal.
CO2 emissions / volume of products shipped
Other environmental conservation benefits
Improvements in environmental impact of transportation
CO2 emitted during product transportation (tons)
CO2 emitted during transportation:
CO2 /(Weight × Distance) (ton/million ton·km)

19,300

1,200

34
35

− 1,317 Total of 12 substances subject to be reported
8.6

37

Calculated from the amount of discharged water and average
concentration

0

0.3

506.1
96.8

519.3
93.1

0.211

0.202

77.6

78.8

2,290

2,146

842

899

57

183

195

12 Reduction of 12-ton emissions per 100 million yen

384.0

369.6

− 14.41.48

1.45− 0.03 CO2 emissions per ton of products reduced by 0.03ton

4,700

4,630

85

79

0.3 One substance discharged in FY2002(Hydrazine)

3537

13.2 Including unwanted materials other than main raw materials− 3.7 Total waste subcontracted to waste disposal company
Waste materials reduced by 25kg per million yen in added− 0.009value
1.2 Including heat recovered on site
− 144 Total for 21 substances reported

38, 3938, 3938, 3938, 3937

Including amounts emitted by incinerators and drying
furnaces.

41
41

Emitted at incineration and recycling of used containers andpackaging24
24− 70 CO2 emissions reduced by 70 tons
CO2 emissions reduced by 11 tons for each ton of goods−6transported 1 million km

Economic benefits of environmental conservation activities

38, 39Environmental Accounting

Environmental Accounting•

FY2002(Unit : ¥ millions)Index value
FY2003 Difference

Benefits of costs incurred at the area of business
Benefits arising from supplied resources

Objectives•

Category of index showing benefits

43
43(Unit : ¥ millions)Index value

Details of benefits(1) Increased sales
Economic benefits of R&D costs
Sales of environmentally friendly products(2) Increased income
Benefits of resource recycling costs
Business income from recycling unwanted materials(3) Cost savings
Benefits of global environmental conservation and resource recycling costs
Saving energy costs by energy conservation
Saving waste-materials processing costs by resource
conservation

Difference

Remarks

Refer to:FY2002

FY2003

101,926

140,424

1,080

2,359

1,279 Saleable unwanted materials increased

38, 39

1,503

−301
391

−1,804 Energy cost unit consumption substantially improved.
Processing cost unit consumption improved by reducing the−259volume of waste generated

41, 42650

38,498 37.8% increase from FY2002

48

38, 39Evaluation of 2003 environmental accounting performance data
Environmental conservation costs and environmental conservation measures• The investment for environmental facilities in 2003 was ¥825 million (34.7%)
less than the previous year. Large-scale investment included catalytic deodorizing equipment and solvent recovery equipment for reduction of atmosphericemissions of VOCs. These accounted for 70% of the total.
• The total amount of environmental conservation costs was 15% higher thanthe previous year. Research and development costs increased by ¥539 million(a 29% increase over the previous year) due to aggressive efforts in researchand development of environmentally conscious products and low-environmental impact production methods.
Of the ¥181 million in upstream / downstream costs, ¥177 million consistedof payments made to the Japan Packaging Recycling Association for recycling
consignment fees.
Environmental conservation benefits• Approximately ¥1 billion was invested in equipment for solvent recovery/
elimination in 2003, and air emissions of PRTR-listed substances werereduced by 1,317 tons.
• SOx emissions were reduced by 56% due to conversion to LNG fuel.
• Although waste emissions increased by 13,200 tons due to an increase in thenumber of sites, thanks to progress in waste generation controls and recyclingat each site there was a decrease in the waste amount of 3,700 tons, and thewaste per ¥1 million of added value decreased by 9 kg.

• Due to an increase in the number of sites subject to reporting, there wereincreases in the energy consumption, water use, NOx emissions, and greenhouse gas emissions. When the range of sites covered is the same as last year,
the figures for these are 18,100TJ, 13,000t, 626.8t, and 844,000t, respectively,
lower than last year.
Economic benefits of environmental conservation measures• Sales of environmentally conscious products increased by 37.8% in comparison with the previous year, broadly exceeding the target with a 10% increase.
• Business revenue increased by ¥1.279 billion in comparison with the previous
year due to recycling of waste.
• The cost reduction benefit is calculated according to item (7) on the previous
page, "Basic Items in the Calculation of Environmental Accounting Data".
In 2003, the added value amount increased 0.5% in comparison to the standard
time period (3-year average for the period 2000~2003), but the waste per unit
improved. While the range was lower in comparison with the previous year, a
reduction effect was obtained. At the same time, per unit energy consumption
worsened, and there was no economic effect obtained from cost reduction.
Future challenges• VOC emissions regulations will go into effect in two years, so our ongoing installation of solvent recovery equipment and elimination equipment will continue.
• We will continue to make efforts through "Production 21" to eliminate all wastefrom production processes, improving eco-efficiency.

51

DNP Group PRTR Data by Site

The following data was reported to the national authorities as the amounts of PRTR-designatedchemicals handled by the DNP group in FY2003
Substance nameSubstanceNo.

CAS No.

Handling

Consumed

Air

Waterways

Transferred
Soil

SewageWaste

7761-88-8−
7778-60-9
1717-00-6−
108-88-3−
123-31-9

9.5
1.5
1.5
23.2
11.5
180.6
40.0
9.8

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

7.3
0.0
1.5
0.0
11.4
0.0
0.0
0.0

0.0
0.0
0.0
23.2
0.0
106.4
0.0
0.0

1
69
132
207
227
253

7646-85-7−
1717-00-6−
108-88-3
302-01-2

6.6
4.8
6.5
65.5
3,120.5
2.2

0.0
0.0
0.0
0.0
0.0
0.0

0.0
4.6
0.0
0.0
0.0
2.0

0.0
0.0
6.5
0.0
283.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.2
0.0
0.0
0.0
0.1
0.0
0.0
9.8

0.0
1.5
0.0
0.0
0.0
18.7
0.0
0.0

1.9
0.0
0.0
0.0
0.0
55.5
40.0
0.0

0.0
0.0
0.0
0.0
0.0
0.3

0.0
0.0
0.0
0.0
0.0
0.0

6.6
0.0
0.0
0.0
0.0
0.0

0.0
0.3
0.0
2.0
128.7
0.0

0.0
0.0
0.0
63.5
2,708.8
0.0

Kuki Plant, Ichigaya Publication Printing Operations 1-5, Kiyoku-cho, Kuki-shi, Saitama Pref. 346-0035
1,1 Dichloro-1-fluroethane132

1717-00-6

1.6

0.0

0.0

1.6

0.0

0.0

0.0

0.0

0.0

3.0

0.0

0.0

0.0

0.0

0.0

1.3
1.2

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

1.9

0.0

0.0

0.0

0.0

0.0

Enokicho Plant, Commercial Printing Operations 7, Enokicho, Shinjuku-ku, Tokyo 162-8620
1,1 Dichloro-1-fluroethane132

1717-00-6

3.0

0.0

0.0

132
224

1717-00-6
108-67-8

1.3
1.2

0.0
0.0

0.0
0.0

Osaka Plant, DNP Media Create Kansai Co., Ltd. 3-12-32, Tamatsu, Higashinari-ku, Osaka 537-0023
1,1 Dichloro-1-fluroethane132

1717-00-6

1.9

0.0

0.0

63
145
179
227

1330-20-7
75-09-2−
108-88-3

1.2
1.4
−
21.5

0.0
0.0
0.0
0.0

0.0
0.0
0.0
21.3

1.2
1.4
0.34mg-TEQ
0.2

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
37.21mg-TEQ
0.0

0.0
0.0
0.0
0.0

0.6

0.0

0.0

0.0

0.3

0.0

1.2

0.0

0.0

0.0

0.0

0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.7
40mg-TEQ
74.7
0.0

0.0
0.0
0.0
0.0

DNP Data Techino Kansai Co., Ltd. 712-10, Oaza Toin, Kawanishi-cho, Shiki-gun, Nara Pref. 636-0293
Toluene227

108-88-3

9.9

0.0

9.0

Ushiku Plant, DNP Data Techno Co., Ltd. 1650-70, Okubara-cho, Ushiku-shi, Ibaragi Pref. 300-1283
Xylene631330-20-7

1.2

0.0

0.0

Dai Nippon Printing Technopack Yokohama Co., Ltd. 3500, Ikebe-cho, Tsuzuki-ku, Yokohama-shi, Kanagawa Pref. 224-0053
XyleneDioxins
TolueneDi-n-butyl phthalate

63
179
227
270

1330-20-7−
108-88-3
84-74-2

1.1
−
646.2
2.7

0.0
0.0
0.0
2.7

0.3
0.0
568.7
0.0

0.0
0.0
2.9
0.0

0.0
0.0
0.0
0.0

Sayama Plant, Dai Nippon Printing Technopack Co., Ltd. 591-10, Higashikubo, Kamihirose, Sayama-shi, Saitama Pref. 350-1321
Chromium & chromium (III) compounds
Hexavalent chromium compounds
Water soluble copper salts
Toluene

68
69
207
227

−
−
−
108-88-3

1.2
1.4
18.8
974.9

0.7
1.2
16.5
0.0

0.0
0.0
0.0
705.3

0.0
0.0
0.0
198.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.5
0.2
2.3
71.7

0.0
0.0
0.0
0.0

10.4

0.0

0.0

0.0

3.2

0.0

Dai Nippon Cup Co., Ltd. 591-10, Higashikubo, Kamihirose, Sayama-shi, Saitama Pref. 350-1321
Toluene227

108-88-3

13.6

0.0

0.0

69
179
207
227

−
−
−
108-88-3

2.2
−
21.1
1,766.0

2.2
0.0
21.0
0.0

0.0
0.0
0.0 0.001136mg-TEQ
0.0
0.0
658.4
505.4

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
2,201mg-TEQ
0.1
602.2

0.0
0.0
0.0
0.0

52

227

108-88-3

121.6

0.0

Emissions

Disposed

Air

Waterways

Transferred
Soil

SewageRecycled

Waste

9
40
44
45
61
63
69
145
227
272
300

103-23-1
100-41-4
110-80-5
109-86-4
105-60-2
1330-20-7−
75-09-2
108-88-3
117-81-7
552-30-70

1.1
3.2
5.2
209.8
7.8
10.5
1.1
3.6
167.5
6.6
2.3

0.9
0.0
0.0
0.0
6.7
0.0
0.9
0.0
0.0
5.7
2.0

0.0
0.8
1.4
52.8
0.0
2.2
0.2
1.4
73.1
0.0
0.0

0.0
1.9
3.1
128.6
0.0
7.1
0.0
2.2
71.9
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.1
0.4
0.7
28.4
1.0
1.2
0.0
0.0
22.6
0.9
0.3

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0

0.0

0.0

0.3

0.0

0.0
0.0
0.3
0.1
0.4
0.0

0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

1.0
0.7
8.2
2.7
9.3
0.3

0.0
0.0
0.0
0.0
0.0
0.0

2.6
4.4
0.1
0.5
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

5.7
9.5
0.0
1.0
0.1

41.1
58.0
4.1
21.3
0.0

0.2
0.3
0.0
0.2
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

10.0
28.9
1.4
1.7
0.0

0.0

0.0

0.0

1.8

0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

1.0
8.0
72.9
0.5

0.0
76.8
0.0
2.1

0.0
0.0
0.0

0.0
0.0
0.0

1.2
0.0
91.6

1.4
0.0
0.0

0.0
0.0
0.0

0.0
0.0
0.0

0.0
0.0
0.0

61.516mg-TEQ
7.4
0.0

0.0
0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

106.5
0.0

0.0
0.0

0.0

0.0

0.0

235.9

66.0

Kobe Plant, Dai Nippon Printing Kenzai Co., Ltd. 2446-3, Shiota, Dojo-cho, Kita-ku, Kobe-shi, Hyogo Pref. 651-1502
1,2,4-Benzenetricarboxylic 1,2-anhydride300552-30-70

3.6

3.3

0.0

0.0

Okayama Plant, Dai Nippon Printing Kenzai Co., Ltd. 642-8, Ugaki, Mitsu-cho, Mitsu-gun, Okayama Pref. 709-2121
Ethyl-benzene
Ethylene glycol monoethyl ether
Ethylene glycol monomethyl ether
XyleneTolueneBis (2-ethylhexyl) phthalate

40
44
45
63
227
272

100-41-4
110-80-5
109-86-4
1330-20-7
108-88-3
117-81-7

7.5
5.0
60.1
20.5
71.1
2.0

0.0
0.0
0.0
0.0
0.0
0.0

6.4
4.3
51.6
17.6
61.4
1.8

Ethyl-benzene
Xylene1,3,5-trimethylbenzene
TolueneBis (2-ethylhexyl) phthalate

40
63
224
227
272

100-41-4
1330-20-7
108-67-8
108-88-3
117-81-7

108.1
142.5
7.1
27.0
7.1

0.0
0.0
0.0
0.0
2.3

58.7
70.6
3.0
4.2
4.7

Ethyl-benzene
Xylene1,3,5-trimethylbenzene
TolueneBis (2-ethylhexyl) phthalate

40
63
224
227
272

100-41-4
1330-20-7
108-67-8
108-88-3
117-81-7

32.2
61.4
4.3
5.7
4.7

0.0
0.0
0.0
0.0
2.7

22.1
32.2
2.9
3.7
2.0

Tokyo Plant, Dai Nippon Printing Kenzai Co., Ltd. 311, Chikumazawa, Miyoshi-cho, Iruma-gun, Saitama Pref. 354-8558
Toluene227

108-88-3

20.5

0.0

0.0

18.7

Okayama Plant, DNP Industrial Materials Co., Ltd. 642-8, Ugaki, Mitsu-cho, Mitsu-gun, Okawayama Pref. 709-2121
Ethylene glycol monoethyl ether
Cobalt and its compounds
TolueneManganese and its compounds

44
100
227
311

110-80-5
7440-48-4
108-88-3
7439-96-5

3.5
480.1
254.1
5.5

0.0
395.3
0.0
2.9

2.4
0.0
175.8
0.0

0.1
0.0
5.4
0.0

Kyoto Plant, Dai Nippon Printing Technopack Kansai Co., Ltd. 10, Kamikeibu-cho, Uzumasa, Ukyo-ku, Kyoto-shi, Kyoto 616-8533
Chromium & chromium (III) compounds
Hexavalent chromium compounds
Toluene

68
69
227

7440-47-3
1333-82-0
108-88-3

2.6
2.6
1,123.4

0.0
1.4
0.0

0.0
1.2
969.3

0.0
0.0
62.5

0.0
0.0
0.0

Tanabe Plant, Dai Nippon Printing Technopack Kansai Co., Ltd. 29-1, Nishikitamukai, Osumi, Kyo Tanabe-shi, Kyoto 610-0343
Dioxins
TolueneDi-n-butyl phthalate

179
227
270

−
108-88-3
84-74-2

−
82.2
1.2

0.0
0.0
1.1

0.0
74.4
0.1

14.725mg-TEQ
0.4
0.0

Sayama Plant, I.M.S. Dai Nippon Co., Ltd. 591-2, Higashikubo, Kamihirose, Sayama-shi, Saitama Pref. 350-1321
227
310

108-88-3
500-00-0

901.1
1.5

0.3
0.0

753.1
0.0

41.2
1.5

Okayama Plant, I.M.S. Dai Nippon Co., Ltd. 642-8, Ugaki, Mitsu-cho, Mitsu-gun, Okawayama Pref. 709-2121
Toluene227

108-88-3

2,011.1

4.2

1,667.9

37.2

Kamifukuoka Plant, Dai Nippon Printing Fine Electronics Co., Ltd./Dai Nippon Printing Precision Device Co., Ltd. 2-2-1, Fukuoka, Kamifukuoka-shi, Saitama Pref. 356-8507

DNP Technopack Tokai Co., Ltd. 646-3, Nasubigawa, Nkatsugawa-shi, Gifu Pref. 509-9132
TolueneBis(2-ehtylhexyl) adipate
Ethyl-benzene
Ethylene glycol monoethyl ether
Ethylene glycol monomethyl ether
Epsilon-caprolactam
XyleneHexavalent chromium compounds
Dichloromethane
TolueneBis (2-ethylhexyl) phthalate
1,2,4-Benzenetricarboxylic 1,2-anhydrideTolueneFormaldehyde

Izumizaki Plant, Dai Nippon Printing Technopack Co., Ltd. 7, Chukaku Kogyo Danchi, Izumizaki-aza, Ooaza, Izumizaki-mura, Nishishirakawa-gun, Fukushima Pref. 969-0101
Hexavalent chromium compounds
Dioxins
Water soluble copper salts
TolueneConsumed

Osaka Plant, Dai Nippon Ellio Co., Ltd. 19-5, Shoei-cho, Neyagawa-shi, Osaka 572-8522

Warabi Plant, Business Forms Operations 4-5-1, Nishiki-cho, Warabi-shi, Saitama Pref. 335-0005
XyleneDichloromethane
Dioxins
TolueneHandling

Tokyo Plant, Dai Nippon Ellio Co., Ltd. 4013, Nakatsu, Aikawa-cho, Aiko-gun, Kanagawa Pref. 243-0303

DNP Graphica Co., Ltd. 1062-8, Oaza Honjo, Nishikata-machi, Kamitsuga-gun, Tochigi Pref. 322-0606
1,1 Dichloro-1-fluroethane
1,3,5-trimethylbenzene

CAS No.

Tokyo Plant, Dai Nippon Printing Kenzai Co., Ltd. 311, Chikumazawa Miyoshi-machi Iruma-gun, Saitama Pref. 354-8558
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Tsuruse Plant, Ichigaya Publication Printing Operations 311, Chikumazawa Miyoshi-machi Iruma-gun, Saitama Pref. 354-8558
Zinc compound (water-soluble)
Hexavalent chromium compounds
1,1 Dichloro-1-fluroethane
Water soluble copper salts
TolueneHydrazine

Substance
No.

PRTR Data

PRTR Data

64
68
69
132
207
227
230
254

Substance nameRecycled

Ichigaya Plant, Ichigaya Publication Printing Operations 1-1-1, Kaga-cho Ichigaya, Shinjuku-ku, Tokyo 162-8001
Silver and its water soluble compounds
Chromium & chromium (III) compounds
Hexavalent chromium compounds
1,1 Dichloro-1-fluroethane
Water soluble copper salts
TolueneLead and its compound
Hydroquinone(Unit : Tons / year)(Unit : Tons / year)

Emissions

Disposed

0.0

113.6

0.0

0.0

0.0

7.9

0.0

2-Aminoethanol
Ethylene glycol monoethyl ether
Chromium & chromium (III) compounds
Hexavalent chromium compounds
Cobalt and its compounds
Water soluble copper salts
NickelNickel compounds
Manganese and its compounds

16
44
68
69
100
207
231
232
311

141-43-5
110-80-5−−−−
7440-02-0
−
−

25.6
1.4
42.9
3.2
2.7
144.8
210.3
65.1
7.3

0.0
0.0
17.5
0.5
1.2
0.0
157.7
0.0
2.8

0.0
0.0
0.0
2.7
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

1.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8

24.4
1.4
15.5
0.0
0.8
144.8
0.0
65.1
2.0

0.0
0.0
9.9
0.0
0.7
0.0
52.5
0.0
1.6

53

Acquisition of ISO 14001 and Forest Certification(Unit : Tons / year)
Substance nameSubstanceNo.

CAS No.

Handling

Consumed

Disposed

Emissions
Air

Waterways

Transferred
Soil

SewageRecycled

Waste

The DNP group is carrying out group-wide environmental management through its Eco-Report System, an independent, practical environmental management system. In addition, we are also striving to acquire ISO 14001 certification, giving priority to sites that need certification and taking into account the demands of our clients.

Kuki Plant, Dai Nippon Printing Fine Electronics Co., Ltd./Dai Nippon Printing Precision Device Co., Ltd. 1-5, Kiyoku-cho, Kuki-shi, Saitama Pref. 346-0035
43
44
69
108
207

107-21-1
110-80-5
−
−
−

11.0
8.2
10.6
1.2
150.1

0.0
0.0
0.0
0.0
16.6

11.0
8.2
10.6
0.9
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.3
0.0

0.0
0.0
0.0
0.0
133.5

0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

12.5
0.0
0.0
0.0
0.0
51.6

1.9
0.1
14.2
0.0
2,060.8
1,046.6

Mihara Plant, Dai Nippon Printing Precision Device Co., Ltd. 73-1, Obara, Nutanishi-cho, Mihara-shi, Hiroshima Pref. 729-0473
Chromium & chromium (III) compounds
Hexavalent chromium compounds
Cobalt and its compounds
2-Enthoxyethyl acetate
NickelNickel compounds

68
69
100
101
231
232

7440-47-3
7789-09-5
7440-48-4
111-15-9
7440-02-0
−

14.7
25.2
22.1
2.3
3,590.7
1,098.5

0.2
17.3
7.9
0.0
1,478.2
0.2

0.0
7.8
0.0
0.0
51.6
0.0

0.0
0.0
0.0
2.3
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0

Target> To acquire ISO 14001 certification at 30 sites by FY2005.
Results> By the end of FY2003, we achieved ISO 14001 certification of a total of 18 systems at 20 sites.
Acquisition of ISO 14001 certification (for 18 systems at 20 sites as of March 31, 2004)
Site nameDate acquired

Certifying body

1 Okayama plant, Information Media Supplies Operations

Nov. 1997

JIA−QA*2

2 Mihara plant, Display Components Operations

Jul. 1998

DNV*3

3 DNP Facility Service Co., Ltd.*1

Apr. 2000

JIC−QA*4

4 Okayama plant, Decorative Materials Operations

Jul. 2000

JIA−QA

5 Tokai Dai Nippon Printing Co., Ltd.

May 2001

JIA−QA

6 Sayama plant, Dai Nippon Printing Technopack Co., Ltd.

Dec. 2001

DNV

7 Kobe plant, Decorative Materials Operations

Jan. 2002

JIA−QA

8 Tokyo plant, The Inctec Inc.

Jan. 2002

JCQA*5Otone Plant, Dai Nippon Printing Precision Device Co., Ltd. 1-317-6, Toyonodai, Ootone-machi, Kita Saitama-gun, Saitama Pref. 349-1148
Chromium & chromium (III) compounds

687440-47-3

10.6

0.7

0.0

0.0

0.0

0.0

0.0

3.0

6.9

Hokkaido Dai Nippon Printing Co., Ltd. 11-1-1, Kita 7 Jo Higashi, Higashi-ku, Sapporo 065-0007
Toluene227

108-88-3

192.3

0.0

164.2

5.1

0.0

0.0

0.0

23.1

0.0

0.0
0.0
201.0

0.0
0.0
0.0

0.0
0.0
0.0

0.0
0.0
0.0

0.3
0.6
35.9

0.0
0.0
0.0

Tohoku Dai Nippon Printing Co., Ltd. 3-5-1, Nigatake, Miyagino-ku, Sendai, Miyagi Pref. 983-0036
Hexavalent chromium compounds
Water soluble copper salts
Toluene

69
207
227

−
−
108-88-3

0.8
13.5
236.9

0.6
12.9
0.0

0.0
0.0
0.0

Tokai Dai Nippon Printing Co., Ltd. 3-902, Seko, Moriyama-ku, Nagoya-shi, Aichi Pref. 463-8543
Water soluble copper salts
Toluene207
227

143-74-8
108-88-3

7.2
226.0

7.1
0.0

0.0
171.4

0.0
35.3

0.0
0.0

0.0
0.0

0.0
0.0

0.1
19.3

0.0
0.0

Chikugo Plant, Kyushu Dai Nippon Printing Co., Ltd. 200, Ojino-cho, Chikugo-shi, Fukuoka Pref. 833-0032
Hexavalent chromium compounds
Dioxins
Water soluble copper salts
TolueneTokyo Plant, The Inctec Inc.

69
179
207
227

−
−
−
108-88-3

2.1
−
1.4
492.2

1.9
0.0
0.0
0.0

0.2
0.0
0.0
233.0

0.0
0.36mg-TEQ
0.0
252.8

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
16.72mg-TEQ
1.4
6.5

0.0
0.0
0.0
0.0

450, Aoto-cho, Midori-ku, Yokohama-shi, Kanagawa Pref. 226-0022

Isophorone-di-isocyanate
Bisphenol A
Ethyl-benzene
Ethylene glycol
Ethylene glycol monoethyl ether
Ethylene glycol monomethyl ether
E-caprolacatam
XyleneCobalt and its compounds
2-Enthoxyethyl acetate
TolueneBis (2-ethylhexyl) phthalate
1,2,4-Benzenetricarboxylic 1,2-anhydride
Boron and its compound
Octylphenol ether
Nonylphenyl ether
Manganese and its compounds
molybdenum and its compound

27
30
40
43
44
45
61
63
100
101
227
272
300
304
308
309
311
346

4098-71-9
25068-38-6
100-41-4
107-21-1
110-80-5
109-86-4
105-60-2
1330-20-7−
111-15-9
108-88-3
117-81-7
552-30-7−
9036-19-5
9016-45-9
−
−

20.9
1.0
65.8
2.2
5.5
138.1
7.8
74.3
1.2
2.2
2,072.8
11.1
7.2
1.9
5.0
4.1
2.1
1.4

20.9
1.0
62.8
2.1
5.4
132.7
7.6
70.8
0.9
2.1
1,933.8
10.9
7.2
1.8
4.9
4.0
2.0
1.4

0.0
0.0
0.3
0.0
0.0
0.0
0.0
0.3
0.0
0.0
6.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.8
0.0
0.0
1.4
0.0
0.9
0.0
0.0
48.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0

0.0
0.0
2.0
0.0
0.1
4.1
0.1
2.3
0.2
0.0
83.6
0.2
0.1
0.1
0.0
0.1
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

Kansai Plant, The Inctec Inc. 1-33-1, Kasugakitamachi, Hirakata-shi, Osaka 573-0137
Ethyl-benzene
Ethylene glycol
Ethylene glycol monomethyl ether
Epsilon-caprolactam
Xylene1,3,5-trimethylbenzene
TolueneBis (2-ethylhexyl) phthalate
Poly (oxyethylene) nonylphenyl ether

40
43
45
61
63
224
227
272
309

100-41-4
107-21-1
109-86-4
105-60-2
1330-20-7
108-67-8
108-88-3
117-81-7
9016-45-9

24.6
2.6
14.6
1.6
27.7
1.5
474.0
4.9
1.9

22.3
2.5
14.3
1.5
25.1
1.4
418.7
4.7
1.9

0.1
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0

0.1
0.0
0.1
0.0
0.2
0.0
1.3
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

2.1
0.0
0.2
0.0
2.4
0.0
13.4
0.1
0.0

0.0
0.0
0.0
0.0
0.0
0.0
40.6
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0

3.2
1.6
68.0
1.2

1.9
6.6
0.0
0.0

DAP Technology Co., Ltd. 5-1-1, Makiyama, Tobata-ku, Kitakyushu-shi, Fukuoka Pref. 804-8520
Silver and its water soluble compounds
Chromium &chromium (III) compounds
Lead and its compound
Boron and its compound

64
68
230
304

−
−
−
−

5.9
8.3
84.0
1.3

0.8
0.1
16.0
0.1

0.0
0.0
0.0
0.0

9 Kansai plant, The Inctec Inc.

Jan. 2002

JCQA

10 Utsunomiya plant, The Inctec Inc.

Jan. 2002

JCQA

11 Ushiku plant, Business Forms Operations

Mar. 2002

DNV

12 DNP Technopack Tokai Co., Ltd.

Mar. 2002

JCQA

13 Tien Wah Press (Pte.) Ltd.

May 2002

PSB*6

14 Chikugo plant, Kyushu Dai Nippon Printing Co., Ltd.

Jun. 2002

DNV

15 Kyoto plant, Erectronic Components Operations

Jul. 2002

DNV

16 Sayama Plant, Information Media Supplies Operations

Oct. 2002

JIA−QA

17 DNP Media Create Kansai Co., Ltd.

Mar. 2003

JIA−QA

18 Advanced Colortech Co., Ltd.

Jan. 13, 2004

JCQA

19 Tokyo Plant, Decorative Materials Operations

Jan. 27, 2004

JIA−QA

20 Kami Fukuoka Plant, Electronic Components Operations

Mar. 25, 2004

AJA*7

*1. In addition to ISO 14001, management system for coordinatingproduct qualit, environment, work safety, and foodstuff hygiene
also acquired.
*2. JIA–QA: Japan Gas Appliances Association, QA Center*3. DNV: Det Norske Veritas (Norwary)

Acquisition of ISO 14001
and Forest Certification

PRTR Data

Ethylene glycol
Ethylene glycol monoethyl ether
Hexavalent chromium compounds
Inorganic cyanide compound
Water soluble copper salts

Advanced Colortech Co, Ltd.

Tokyo Plant, Decorative
Materials Operations*4. JIC–QA: JIC Quality Assurance Ltd.
*5. JCQA: Japan Chemical Quality Assurance Ltd.
*6. PSB: Certification Pte, Ltd. (Singapore)*7. AJA: Registrars Ltd.

While “S-mail Recycled Paper Type” has received the Eco Mark, certification for
the following environmental labels has also been acquired.
Certification Type

Certification Limits

Date acquired

Certifying body

CoC of the FSC*1

Tokai Dai Nippon Printing Co, Ltd.

Oct. 2002

SGS*2

CoC of the FSC

Commercial Printing Operations

Aug. 2003

SGS

CoC of the FSC

Kansai: HQ, Plant No. 1, Plant No. 1 (Neyagawa),
Plant No. 2 (Ono), DNP Media Create Co, Ltd.

Sep. 2003

SGS

CoC of PEFC*3

Packaging Operations

Jan. 2004

JIA

EDP*4

Standard ink ribbon for dye sublimation card
printer (2 product types); ID-3BP (250 screen/PS
core); ID-3BP (250 screen/ABS core)Mar. 2003

JIA

Kami Fukuoka Plant, Electronic
Components Operations*1 FSC: Forestry Stewardship Council Chain of Custody)*2 SGS IGS Japan Co, Ltd.
*3 European Forest Certification Program PEFC (Program for the Endorsement of Forest Certification Scheme) Chain of Custody standards*4 Sweden Environmental Management Association Environmental Product Declaration

54

55

Activities at Overseas Sites

The DNP Group conducts production operations in Southeast Asia, Europe, and North America. We comply with all
local regulations, and our operations at those sites take the environment into consideration through our efforts to
reduce waste and promote recycling.

Activities at Overseas Sites

Tien Wah Press (Pte.) Ltd. (Established October 1949)
Located to the west of Singapore, Tien Wah Press (Pte.) Ltd.
performs offset printing and bookmaking, its main products
being children's picture books and high-quality documentsbound for American and European markets. The site obtained
ISO 14001 in May 2002, the first overseas site in the DNP
group to do so. Under a policy of Environment, Safety and
Health (ESH), the company strives to reduce industrial waste
and recycle wastepaper that arises during the production
process. In addition to ISO 14001, the company has also
obtained OHSAS 18001 certification.

Key Environmental Impact Items (FY2003)
Energy consumption Electricity

18,673 MWH

Waste generation

6,236 tons
5,576 tons
660 tons

EmittedRecycled
Landfill

Chemical substance

54.6 tons

P.T DNP Indonesia (Established February 1972)
Located within the Progadon industrial park in the suburbsof Jakarta, P. T. Dainippon Printing Indonesia prints mainly
food product wrapping and toiletries destined for markets inIndonesia, Southeast Asia and Oceania using both gravure
and offset printing. Through a private recycler, the company
recycles waste products that arise during the course of production such as paper, empty cans and copper. Furthermore,
as it uses liquid chemicals such as developer in the course of
making printing plates, the company treats such liquids at awastewater treatment plant before releasing.

Key Environmental Impact Items (FY2003)
Energy consumption Electricity
Diesel
LNG

25,406 MWH
1,087 kL
11,195 m3

Waste generation

5,084 tons
2,925 tons
843 tons

EmittedRecycled
Landfill

Chemical substance

54.6 tons

DNP Denmark A/S (Established January 1989)
Located in the Karlslunde industrial park of the Gleve region
in the outskirts of Copenhagen, DNP Denmark A/S manufactures large screens for use in rear projection TVs, mainly
for the European market. The production process involves
the following steps: The process starts with the castingstage, where acrylic lacquer is injected into a metal moldthat is hardened with heated water. In the following "surfacing stage," the acrylic sheet is coated with a UV hardened
resin. Finally, the sheets are cut and packaged before being
shipped. The factory has a waste incinerator.

Key Environmental Impact Items (FY2003)
Energy consumption Electricity
LNG

22,62 MWH
192,900 m3

Waste generation
EmittedIncinated on-site
Commercial waste
Landfill
Chemical substance

353 tons
47 tons
221 tons
86 tons
54.6 tons

DNP Electronics America, LLC (Established July 2001)
Located in East Lake industrial park in Chulavista, a suburb of San Diego in California, 10km north of the Mexican
boarder, DNP Electronics America, LLC manufactures andsells screens for rear projection TVs. Production began in
April 2002. Production processes carried out by the factory
include coating acrylic sheets with of UV-hardening resin,surfacing through metal molds, cutting to the specified size,
packaging and shipping. Following the completion of construction, the plant invested some $16,000 on beautificationof the factory grounds.

Key Environmental Impact Items (FY2003)
Energy consumption Electricity
LNG

3,206 MWH
26,738 m3

Waste generation

959.8 tons
6.8 tons

Recycled
Landfill

Chemical substance

54.6 tons

DNP IMS (America) Corp. (Established July 1995)
Located in the International Business Park in Concorde,
North Carolina, Dai Nippon IMS (America) Corp finishes barcode- and facsimile-use thermal transfer ribbons that havebeen made in Japan. Processes performed by the company
include slitting to the final product size, assembly, packaging
and shipment.

56

Key Environmental Impact Items (FY2003)
Energy consumption Electricity
LNG
Waste generation
Chemical substanceLandfill

26,91 MWH
6,150 m3
71 tons
1.2 tons

Social Performance

Social Performance

We have referred to the structure and system forcompliance with the law and ethics. Now we would
like to talk about our personnel, labor, and educational
systems that are designed to enable our employees tobecome independent-thinking profe ssionals, and tonurtur an emergently evolving organization and culture.
We will also introduce our efforts for information
security, protection of personal information, and productsafet y, together with SRI - related information andcorporate philanthropy.

[Contents] Compliance with Laws and Ethics .................................................................. 58
Relations with Customers and Trading Partners ............................................ 60
Employee Relations........................................................................................ 62
Relations with Investors and Shareholders .................................................... 67
Relation with Society ...................................................................................... 69
Relations with Local Communities.................................................................. 70
Targets for 2004 Activities .............................................................................. 71
Results of Environmental Efforts .................................................................... 72
Comparison with the 2003 Guidelines............................................................ 73
Independent Review Report ........................................................................... 74

57

Compliance with Laws and Ethics

In order to make ethical Corporate practices a reality, each individual employee must be made sufficiently
aware of the importance of ethical Corporate practices, and must make this awareness part of their everyday
activities. We continually and arduously drive home the importance of Corporate ethics so as to entrench themmore firmly in the minds of our employees.
In addition, we believe that systems and structures for preventing regression must be incorporated in the
management structure. We have outlined some of these efforts below.

1. Systematization of corporate ethics training
We have systematized corporate ethics training so as
to ensure that each em ployee maintains continuous ethicalawareness. Employees can enroll in corporate ethics training as often as they wish.

Corporate Ethics Committee“Open Door Room”

Corporate Ethics Committee at
each department at Headquarters

Corporate Ethics Committee at
each Operations unit

Corporate Ethics Committee at
each Group company

DNP Environmental Committee

Specific training for organizational units
It is necessary to tailor the content of corporate ethics
training to the particular characteristics of each unit, so that
employees can see corporate ethics issues as applicable totheir work. Therefore, in November 2003 we started selfdirected ethics training at all organizations. Under thissystem, we have the top management at the units, such as
Directors in Charge, function as instructors, so that they
can directly provide those under them with guidelines andsolutions for main challenges facing their units.
Regular training according to stage of employment
We ensure that employees receive step-by-step corporate ethics training by creating a corporate ethics curriculum in which training is given at the various stages of
employment, such as upon entry into the company, after
appointment to the officer level, etc. This promotes awareness of the importance of corporate ethics

Product Safety Committee

DNP Information Security &Privacy Protection Committee

Visiting seminars conducted by Headquarters supervisors
Super visors from Headquar ters conduct visiting
seminars on important themes when necessary, providing
a backup for the specific training for organizational units’
regular training according to stage of employment.

Complaint Handling Committee

DNP Central Disastar Prevention Council

3. Target management system
The DNP Group incorporates corporate ethics factors
into the management of work targets. When employees
set their work targets and conduct mid-term evaluationsof their work results, they certify the honesty of their work
activities through discussions with superiors.

Social Performance

Social Performance

In 1992, we established the Dai Nippon Printing Group Corporate Pledge. This document makes it clear that we will
operate in compliance with all laws and social ethics. In addition, we established the Corporate Ethics Committee as
the overall Group organization for the promotion of corporate ethics and transparent business practices.The members of
the Corporate Ethics Committee, which is made up of Directors in Charge from each department at Headquarters, meetat regular monthly meetings to determine policies regarding themes involving business ethics. There are also separate
committees for dealing with important individual themes, such as the environment and information security.

4. Self-inspection for compliance
In order to establish a corporate culture of compliancewith laws and rules, every organization within the Groupfunctions in the spirit “maintaining compliance ourselves
within our organization”. Each organization is required to
conduct self-checking to ensure that there are problems
connected with relevant laws and rules in the performanceof the organization’s work, and they also are required tohave measures in place for prompt rectification if problems
exist.
The Corporate Ethics Committee thereby promotes asystem for self-improvement, with each business unit performing self-inspection twice annually based upon a checklist composed by each supervisory unit at Headquarters.
The results of the self-inspections are integrated into
themes for the Group as whole by the Headquar ters
supervisory units, and these themes are then promptly
woven into the companywide measures and policies by the
Headquarters Corporate Ethics Committee.

2. “Open Door Room”

Honest Efforts
One of the management objectives of the
DNP Group for 2004 is Honest Efforts. “Honest” inthis case is meant to represent not merely a sincere
and straightforward approach, but also high-quality
management that entails self-management, a senseof responsibility, sound morality, adherence to principles, and a strong sense of purpose. The way toattain this is to build a corporate structure based on

58

thorough self-management, with a strong sense of
purpose and responsibility.
A corporate structure with a strong ethicalfoundation provides for a fresh atmosphere within thecompany and vitality throughout the company, andallows the company to earn the trust of society. The
DNP Group will continue to take a positive approach
toward corporate ethics with the goal of creating sucha corporate structure.

Group employees are able to consult and discuss
concerns about corporate ethics with the Corporate Ethics
Committee, and the members of the secretariat in charge
provide a prompt response.
We have also taken steps to strengthen our consultation system by establishing an “Open Door Room”, where
employees can go to discuss matters that are difficult totalk about with their superiors. We make certain to ensure
the anonymity of the employee and the content of the matters discussed, so that the employee will not suffer any
repercussions within their organization.

59

Relations with Customers and Trading Partners

Information security and privacy protection

Information security and privacy protection structure
We established the DNP Information Security & Privacy
Protection in April 2002, and have been developing our information security management structure, including those ofaffiliate companies, towards the establishment of an information security management system.

Product Safety
Results of efforts
Staff training through network learning
May 2000: Privacy Protection Training (Part 1) begins, attended byapproximately 10,000 employees
Feb. 2002: Privacy Protection Training (Part 2) begins, attended byapproximately 9,400 employees
Sep. 2002: Information Security Training begins, attended by approximately 17,000 employees
Internet Business Emergency Response Training (lecture & exercise)

Information Security Manager & Privacy Manager
Information Security & Privacy Protection
System Promotion Office Chief
Information Security Manager & Privacy Manager
Education Officer
Security Region Measures Officer
External Operations Officer
Information Systems Measures Officer

2. Product safety organization

Information Security Training for Technicians

3. Product Safety Clarification

Feb. 2004: Privacy Protection Training Regional Pre-press
Technicians, attended by approximately 20 employees

The Product Safety Committees in each business department and Group company will establish “Standards for Product
Safety Assurance Efforts” and “Product Safety Standards for
Each Product Handled” according to the guidelines for productsafety measures established by the Headquarters Product
Safety Committee. They will make efforts to clarify the productsafety measures and ensure product safety.

Nationwide Conference for Information Security Issues

Dec. 2003: Central Control Virus Measures
Software Installation Nationwide Conference for Promotion
Staff

Person responsible for information security / person responsible forprivacy data protection (Division Chief / President of affiliate company)

Products will of course be in conformity with all laws andregulations, and we will fulfill our corporate social responsibility by making products that exceed customer hopes anddemands for safety.
“Product Safety Committees” for the promotion of product safety were established in November 1994 in Headquarters
and each business department and Group company.

Nov. 2003: Nationwide Privacy Protection Conference for Promotion
Staff

Organization within business divisions and affiliate companies

1. Basic Policy

Begun in March 2003, attended by approximately 2,000 employees
from the Business Planning Division

Jul. 2003: Explanation of Privacy Protection Law for Promotion Staff

DNP Information Security & Privacy Protection
Committee

4. PL (Product Safety) Management

The DNP Group has made environmental conservationand product safety its top priorities. We have constructed a PL
management system that spans all Group companies, and weare promoting product safety for the Group as a whole.

Mar. 2004: Nationwide Privacy Protection Conference for Promotion
Staff

We have been performing PL training programs since
1994 and have performed computer network-based training
through since 2000. A total of 3,660 employees have completed network-based training.

PL Management System

Basic policies for
product safety measures

Upon new productdevelopment

Basic productsafety measures

Apr. 1999: Establishment of System for Promotion of Information
Security & Privacy Protection

Product Safety Standards

Dec. 1999: Company Rules based on the JIS Q 15001 Privacy
Protection Rules & Guideline establishedStandards for Product Safety
Assurance Efforts

In-house structure for responding

PLP, PLD*

Product designchange; improvement in manufacturing technology

Product safety
confirmation

Product Safety Standards for Each
Product Handled

All product lines,
once a year

Headquarters Product Safety
Committee

Product production
based on standards
specification sheet

Group Company Product Safety
Committee

Divisions that have acquired the Privacy Mark

PL Risk
Check

Following receipt
of complaint

Business Department Product Safety
Committee

Acquisition of certification• Dai Nippon Printing Co., Ltd., Business Forms Operations• Dai Nippon Printing Co., Ltd., IPS Operations• Dai Nippon Printing Co., Ltd., C&I Operations• DNP Digitalcom Co., Ltd.
• DNP Logistics Co., Ltd.
• Dai Nippon Uniprocess Co., Ltd.
• DNP Media Create Kansai Co., Ltd.
• Tokai Dai Nippon Printing Co., Ltd.
• DNP Information Systems Co., Ltd.

5. PL Training

Product Safety

Efforts for Privacy Protection

Jan. 2000: CP established in sections handling personal data- acquisition of Privacy Mark begun

PL measures must be continuous rather than one-timeefforts. Therefore, PL Risk Checks will be conducted when
new products are developed, when claims are issued, and once
annually for each product line.
Products or production technologies found to be at riskfor deficiencies based upon the results of the PL Risk Checks
will be subject to design revision and technological improvement in order to eliminate risk, and the results will be used in
drawing up and documenting product safety standards. These
documented product safety standards will then be employed
as the standards for ensuring product safety. To date 402 suchproduct safety standard documents have been created.

Social Performance

Social Performance

The business of the DNP Group involves being entrustedwith important information about our customers and consumers. We maintain a strong understanding of information
security in our provision of products and services, and haveaccumulated much know-how in that field.
While provision of superior products and services is agiven, we are working to make our information security systemeven stronger, and to respond to the demand from society for
information security, as represented by Privacy Protection.
We will continue henceforth to offer “P&I Solutions” basedon a foundation of strong information security and Privacy
Protection.

Production of product safety sheets

PLP: Product Liability Prevension; PLD: Product Liability Defence

Efforts to Universal Design (UD)The DNP Group provides a wide range of products foruse by general consumers. Given that packages are productsthat consumers actually grasp when using, the DNP Packaging

Division has established five rules for universal design (UD)under which it develops and proposes new products.

Acquisition of BS7799 and ISMS certification• DNP Facility Service Co., Ltd.
• DNP Information Systems Co., Ltd.
• DNP Digitalcom Co., Ltd. (ISMS only)

The DNP concept of UD:

Packages designed to be a pleasure to use by all who handle themRule 1. Clear, easy-to-understand expression of required information
Five DNP rules
for UD

Rule 2. Simple, intuitive utility
Rule 3. Flexibility and safety during use
Rule 4. Appropriate weight and size

1. Be of a shape that enhances the attractiveness of the product2. Be easy to separate and dispose ofRule 5. Able to be opened with minimum force or movement60

61

Employee Relations
We will make our contributions to society in our capacity as professionals. The following are our personnel and labor efforts
for supporting those contributions.

2.Aiming to become an “independently functioning professional”
Personnel and Employment Guideline

Actual measures and policies: The various personnel systems
Measure1. Nurturing an emergently evolving structural climate and culture
Hiring
The DNP Group pursues a fair hiring and selection process
by offering “Open & Fair” opportunities to persons sharing our
MeasureInternship(implemented jointly with Group companies)

vision and wishing to work with us and achieve self-realization.
We also take a positive approach to offering internships.
Content

The offering of work experience opportunities in response to requests fromschools and students wishing to experience the workings of a real company.
This is not directly connected to actual hiring.

The importance of dialogue
We believe that it is necessary for each employee todevelop as an independently functioning professional and to
evolve emergently together so as to continue to contributeto an emergently evolving society. Free and frank “dialogue”
among employees is essential to making this a reality, and as acompany we seek to create a “location” and an “environment”
that supports this kind of “dialogue”.

Results
Aug. – Sep. 2003
39 themes
78 persons“Dialogue” is also given emphasis in the structuring of
the personnel system. For example, we eliminated (in 2002)
the “officer system” that is associated with hierarchy, so as toallow our employees to make progress in evolving emergently
together through dialogue.

Persuasiveness of evaluation, confirmation of achieved target level

Persuasiveness of treatment, confirmation of “level enhancement” target

Confirmation of career goals, confirmation of personal information

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

Independently functioning professional

Self-Reporting System

Leader support / guidance

Rating System

Sharing of goals, fulfillment of guidance, “level enhancement”
Fulfillment and continuation of dialogue

Each person’s efforts and self-enlightenment

Personnel Ability Rating

Content

Results

Personnel Solicitation
SystemPeople with skill and experience who wish to challenge new business, newproduct development, and work that requires specialist knowledge are free to apply.

The finding of personnel and selfrealization. A cumulative total of 169 persons had made the change by Mar. 2004.

In-house Venture
SystemSolicit persons wishing to start up a business, and createbusiness by starting an independent company (our company owns51%). Tied in with the training system (about 20 employees participate annually), supported by the company.

CP Design Consulting Co, Ltd. Apr.
2002; M’s Communicate Co, Ltd. (femalecompany president) Sep. 2003

In-house “Study
Abroad”System

The employee takes a temporary posting in a different department to gain expeHas been systematized throughrience and improve skill in work, and then is returned to his or her original worksite.
adoption of proposals in employee training;
improvement of each employee’s work skills

System for
Encouragement of
Qualification Acquisition

Provision of funding to encourage employees to attempt to acquire specialist
knowledge, technical skills, and qualifications necessary to work. (approximately 80
qualifications, maximum ¥100,000)

Increase in the number of employees
holding qualifications for specialist knowledge or technical skills, especially in the IT
field.

Meister System

Bestowing of titles upon employees that have valuable skills in the production
area, providing recognition of acquisition of specialist skills and training of successors. The company president presents a certificate of recognition, and a stipend isprovidCumulative total of recognitions presented through Mar. 2004: 41

Specialist Work System

Special treatment of employees who are particularly recognized both within andoutside the company as having a high degree of specialist expertise.

Ranking /Compensation System

Mar. 2004: 10 employees recognized

Ranking is evaluated according to current role and results. Monthly salary andbonus standards are interlocked, while seniority is excluded from evaluation.

Actual measures and policies: Training system for support of employees seeking to enhance their careers

Actual measures and policies

Goal Management

by which employees can select the work they wish to do. We
have also created a system for the promotion of acquisition of
specialist skills, technical skills and qualifications, as well as
an evaluation and treatment system.
Social Performance

Social Performance

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

We believe that it is important for each employee toengage in self-enlightenment and think about their own career,
to select the work they aspire to, and to continue to broaden
their field of work. In order to support each individual employee in these efforts, we have established a personnel system

The goal is to have each employee design his or her own
career, and be able to work cooperatively with people both inand outside the company as an independently functioning professional with a sense of responsibility and self-confidence.
The company supports employee career design by putting
together a varied and practical training program for the development of the basic skills needed in each area, the acquisitionof specialist knowledge, human skills, conceptual skills, etc.
For managers and leaders we also conduct practical training
for deepening the understanding of the personnel and training
system and career development, as well as the enhancement ofcommunication and corroboration skills, so as help them bringout the best from those working under them.

Personnel Development Diagram
Personnel consisting of independently functioning professionals
able to work cooperatively

Personnel development vision

Business department vision / Activity guidelines

Personnel System

Training system / Organization
Business Departments / Group Companies
External seminars

The DNP Group’s vision for the 21st Century
Management Philosophy

Headquarters Training
Training at new post

Level enhancement challenge and guidance throughthe Target Management (Challenge) System

Practical training at work sites
Group training

Distance learning

In-house “Study Abroad” system, etc.

Network training
On-the-job training

Group training

Education through outplacement or transfer

Self-enlightenment

62

Independently functioning professional63

3. A free, vigorous and pleasant work environment
each other’s opinions. Therefore, we believe that aiming toward
self-realization while making one’s best efforts, without regard
to sex, disability, or age, is very important.

Actual measures and policies
Measures

Actual measures and policies: Developing the workplace environment
System / organization

Content

Hiring of alternative persons

Achievement of the legally mandated hiring rate for the disabled predicated upon the Hiring rate for 2003: 1.82%“normalization”* concept, and the nurturing of a desire to work together with the ablebodied. Also, provision of the necessary training for workplace leaders.

Hiring of the aged

Persons over the retirement age who wish to continue to work may, after consultation 44% of those subject to this program electedwith the company, remain active as “Senior Staff”.
to do so in 2003.

Support of childcare andnursing careThis system provides support over and above what is legally mandated. We are cur- Recipients of support in 2003: 42 employees
rently looking into providing even more support.

2. Fulfillment of personal life and family life
We believe that, in order for employees to reach their fullpotential as professionals, it is important for them to consider
their own life plan and career plan so as to have a full personal
life, and it is therefore important to achieve a balance in thetime spent at work and the time spent in self-realization andenriching one’s personal life. At the same time it is importantto respect the time of people around one as a valuable resource.
We refer to this as the “new way of working”, and everyone,
as well as the company itself, is working in various ways todevelop and realize this concept.
In addition, we have established the “Total Health Support
System” for the Group as a whole in our efforts to support
employees helping themselves to “create sound mental andContent

Results

StructureThrough joint labor-management cooperation, a “Central
Health and Safety Committee” has been created within
Headquarters to deliberate and implement health andsafety activities. Each business department and Group
company has a similar structure. We are also establishingcompany-wide standards and guidelines.

Determination of the DNP Group’s annual health and safety guidelines. Each business department and Group company then determines the policy for each worksite
based upon these guidelines, taking into account the particular characteristics ofeach site. Main standards and guidelines established are:
1. Improvement of the workplace environment• Workplace environment standards• Guideline for prevention of workplace noise• Smoking policy guideline
2. Work accident prevention
Guideline for the prevention of work accidents due to equipment, etc.

Skill enhancement

Promotion, mainly implemented by the Health and
Safety Committee, of enhancement of staff skills necessary to the effectiveness of the Health and Safety
Committee in conducting activities corresponding
to the particular characteristics of each workplace.

• Promotion of acquisition of qualifications by the Safety Manager, Work
Foreperson, Chemical Manager, and others• Increasing the Mental Health Consultation Staff. 37 persons as of March 2003
• Increasing the number of participants in courses for expertise in restricted workand special courses. Participants during January - December 2003: 168• Training of production line managers, new employee education. Participants
during January - December 2003: 729

Accident prevention

Through joint labor-management cooperation, Conduct
Maintain a workplace accident rate that is low in comparison to all industries, as
analysis of causes of accidents, develop activities for the well as to the printing industry as a whole. January - December 2003 accident
prevention of accidents involving rotors, which are cited occurrence rate (work stoppage frequency rate)*: 0.66%
as a major cause of workplace accidents. Also, re-evaluate the work standards documents for high-risk work,
such as non-stationary work, and work to prevent reoccurrences or similar accidents by putting work sequencesthat do not create accidents into practice.

Results* Normalization: Persons with disabilities function in society in the same way as others in a way that is normal for society.

physical health for employees and their families”. We do this sothat everyone can maintain the best condition in both mind andbody.

*Work stoppage frequency rate: Number of victims of accident resulting in work stoppage / man-hours of work (1 million man-hour units)

Workplace accident rate (work stoppage)
Model smoking area incompliance with the Guideline

1.0
System / organization

Consultation Office

1.80

1.82

1.79

1.77

1.10

1.12

1.06

1.15

Content

0.59

0.52

0.57

2000

2001

2002

1.

1.78

1.5

Actual policies and measures: Support system for personal and family life

Employment System

DNP Group Mental Health Care Efforts(Unit: %)

2.0
1.72

64

are involved as our basic policy for supporting the creation ofa pleasant workplace environment in which it is easy to get thejob done and a living environment that includes the family, sothat all employees can feel secure while working.
Social Performance

Social Performance

1. Making for a workplace where it is easy to get the job done
In contributing to the realization of a free, vigorous, emergently evolving society, we believe that it is important to develop a pleasant working environment where employees respect

3. Creating a safe and pleasant work environment
We have developed our own health and safety activities
with the goal of creating a safe and pleasant work environment
for each employee. We take a serious approach toward maintaining a health and safety structure in which all employees

Employees

1.10

1.03

Results

A flexible employment system incorporating a flex time system and adiscretionary labor system corresponding to the special characteristics of each employee’s job.

This applies to 75% of employees overall.

Consultation with specialists about topics such as housing (financial planning, housing selection, design, construction), legal issues(inheritance, family, accidents), taxes, sexual harassment, etc.

Cases in 2003: 847

0.5
0.58

0.71

Self-care
New employee training
Learning of proper knowledge at time of entry into company.
Guidebook distribution
Promotes learning of proper knowledge, as well as “paying
attention” and “prevention”.

0.66

0

Life Planning Consultation Office

Provides information about individual post-retirement planning, about Guidance recipients in 2003: 580
topics such as pension, employment insurance, living, lifetime education, etc.

Life Planning Progress System

A joint labor-management program whereby informational magazines Distribution of Design Book to 45-year-olds;
are distributed, seminars are held, and other activities are sponsored. Preparation Guidance for 55-year-olds.

Mutual Relief Association

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

Condolence and congratulatory allowances, various
loans, scholarships (tuition and annual support), andother activities jointly run within the Group.

Operation of health management
systemConstruction of a “health examination management system” on thecompany intranet, making it possible to access one’s own healthexamination results, including past results, via a personal computer.

Reception rate in 2003: general checkup at 99.0%; special testing, 99.8%

Smoking policy

Smoking policy conducted based on the Group Guideline at each
worksite for the purpose of preventing non-smokers from being subjected to secondhand smoke.

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

Health Consultation Office;Telephone Health Consultation;
Mental Health Consultation Office;Nutrition Consultation; Exercise
Consultation

A consultation system set up for employees and their families toprovide advice from medical specialists about concerns and worries related to disease or medical therapy. It also provides support
for health maintenance through Nutrition Consultation and Exercise
Consultation.

Total consultations (Telephone Health Consultation(including families), Mental Health Consultation,
Nutrition Consultation, Exercise Consultation) throughJanuary - December 2003: 4,579

1998
DNP Group1999

All industries

2003（FY）

All printing industry

2. Care on the line
General managers /supervisors
Training regarding mental
health is provided.

People in charge of generalaffairs / Mental healthconsulting staff

3. Care by industrial health staff at the workplace
Examination office (Mental Health Consultation Office)Examination, consultation, counseling is conductedin conjunction with industrial doctors, mental healthspecialist physicians, clinical psychologists, andnurses.

4. Care through external resources
DNP Health Network (outsourced)
Employees and their families insured through the DNP
Health Insurance Association can get health consultation and counseling by telephone.

Mental Health Consultation
Association
People in charge of generalaffairs, etc., consult medical
specialists and get advice.
Mental Health Promotion Secretariat
Total Advisors (2 full-time advisors)

65

Relations with Investors and Shareholders

Coordination

Decision making /Implementation

Beverages
69,710％Electronics
236,426
17.5％

Committees for disaster

Permanent committees

Management

2003 Overall management situation
Consolidated sales by division (Unit: ¥millions)DNP Group natural disaster organization

DNP Group central disasterprevention council

The DNP Group is involved in a broad range of businesses, from Information Communications businesses, such as
publishing/commercial printing, business forms, to Living/Industrial businesses, such as packaging materials, decorative
materials, and industrial supplies, to Electronics businesses, such as display components and electronic components.
The 2003 consolidated financial results reflect an increase in the severity of the management environment due toongoing worries about printing demand, increases in raw materials prices, and a decrease in order prices caused bystiffening competition. The DNP Group worked hard against this backdrop to develop its business aggressively andpush through its twin reforms of business structure reform and cost structure reform. As a result, consolidated sales
were ¥1.3541 trillion (an increase of 3.4% over the previous year), consolidated operating income of ¥102.4 billion (anincrease of 14% over the previous year), consolidated ordinary profits of ¥97.2 billion (an increase of 10.2% over theprevious year), and current term net profits of ¥52.9 billion (an increase of 84.1% over the previous year).

ActionCommittee

DNP Group natural disaster action
headquarters

Regional disaster prevention
committee

Regional natural disaster action
headquarters

Disaster prevention committeeby operation and affiliate

Natural disaster action headquarters
by operation and affiliate

ActionImplementation

ActionCommittee

Information & Communication
629,81646.0％

p
DNP Groupin FY2003

Lifestyle and Industrial
Industrial Supplies
426,066
31.4％
ActionImplementation

DNP only

DNP consolidated*

9,159

34,514

2003.3.31

9,737

35,182

2002.3.31

10,352

34,868

2004.3.31

1,354,101
Note: Sales includes internalsales between divisions andtransfers of ¥791.7 billion.

Current term net profit (Unit: ¥100 millions)

Consolidated net sales (Unit: ¥100 millions)

600
600
13,42013,420Self-fire department

Number of employees* Total of consolidated companies with the printing operation

15,00015,000Self-fire department

13,11913,11913,09013,09013,541
13,541

10,00010,000

529
529

400
400
334
334

5,000
5,000
Disaster measures include:• Execution of disaster drills• Joint simulations with regions• Measures for those unable to return home
• Preparation of emergency stockpiles

Satellite telephony network (42 sites nationwide)

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

Social Performance

Social Performance

4. A secure working environment (disaster management structure)
The DNP Group has established a Natural Disasterrecurrence measures are driven by six action subgroups: theResponse Network and a Central Disaster Prevention Plan for
Human Measures Subgroup, the Building Measures Subgroup,
ensuring the safety of our employees in the event of a natural
the Property Measures Subgroup, the Business Measuresdisaster, getting our businesses back up and running, andSubgroup, and the Public Relations Measures Subgroup, andproviding support to families and local residents, and pursues
the Regional Measures Subgroup.
its disaster prevention policy based upon these. “Disaster
Also, by shoring up the Emergency Communications
Prevention Committees” have been established at the Central
Network System (disaster wireless systems at 29 businessand Regional Business Department and Group Companies
sites in the Kanto area, satellite phone facilities at 42 sites
as the organizations driving the natural disaster , and in thenationwide), we are able to provide prompt and appropriate
event of a disaster these organizations automatically change
assistance not only for the business affected by the disaster,to action centers. Actual disaster prevention measures, immebut also regional residents and businesses.
diate disaster response measures, and disaster prevention

200
200

00

156
156

00

2000
2000

2001
2001

2002
2002

2003
2003（FY）（FY）

Consolidated operating income (Unit: ¥100 millions)
1,200
1,200
800
800

287
287

2000
2000

2001
2001

2002
2002

2003
2003（FY）（FY）

Gross assets (Unit: ¥100 millions) and ROA (Unit: %)18,00018,000

898
898

859
859

1,024
1,024

14,89814,89814,324
14,324

14,50014,50012,00012,000722
722

Geostationary satellite

9.
9.00
6.00
6.6
6.6 6.
6.3
6.3

400
400

15,137
15,137

5.1
5.1

6.1
6.1

3.
3.00

6,000
6,000

00

00

2000
2000

2001
2001

2002
2002

2003
2003（FY）
（FY）

00
2000
2000

2001
2001

2002
2002

2003
2003（FY）
（FY）

Gross
Grossassets
assetsROA
ROA
Note: ROE is caliculated on a current term net basis.

Consolidated ordinary profit (Unit: ¥100 millions)
1,200
1,200
800
800

12,00012,000
923
923

747
747

881
881

972
972

8,000
8,000
4,000
4,000

00

00

2001
2001

9.
9.00
9,394
9,394

9,469
9,469

9,420
9,420

9,787
9,787

6.
6.00
5.5
5.5

400
400

2000
2000

66

Shareholders’ equity (Unit: ¥100 millions) and ROE (Unit: %)

2002
2002

2003
2003（FY）
（FY）

3.6
3.6
3.0
3.0
1.7
1.7

2000
2000

2001
2001

3.
3.00
00

2002
2002

ROE
ROE
Gross
Grossassets
assetsNote: ROE is caliculated on a current term net basis.

2003
2003（FY）（FY）67

Relation with Society

Share information
Total number of shares issued:
hareholders at term-end:
Dividend:

Distribution according to number of shares held

Distribution by shareholder

Under 1,000 shares
0.18％

50,000 shares or more
1.67％
10,000 shares or more
2.67％
1,000 shares or more
6.42％

1,000,000 sharesor more74.26％

Own shares
4.36％
Individuals
10.83％

Brokerage firms
1.19％

Financial
institutions
41.85％

Philanthropic efforts
ginza graphic gallery

Other domestic
corporations
12.36％

100,000 shares or more
14.80％

Established 1986

Overseas investors
29.41％

Major shareholders

Shares (1,000’s)

Voting rights (%)

The Master Trust Bank of Japan (account in trust)

52,378

7.26

Japan Trustee Services Bank, Ltd. (account in trust)

41,685

5.78

Dai-Ichi Mutual Life Insurance Company

34,646

4.80

Mizuho Bank, Ltd.

22,580

3.13

Nippon Life Insurance Company

22,075

3.06

State Street Bank and Trust Company

20,524

2.84

The Chase Manhattan Bank NA London SL Omnibus Account

18,7782.60

Mizuho Corporate Bank

15,242

2.11

Morgan Grenfell & Company, Ltd.

12,615

1.75

Mellon Bank Treaty Clients Omnibus

10,625

1.47

This gallery runs design exhibitionsof creative works by individual artists andgroups from Japan and overseas, along
the themes of graphic design and printing. It also presents artist lectures andtalk shows. In 1996, the 10th year of thegallery’s operations, its decade of activity
was honored with the “Mainichi Design Awards Special Prize”. The gallery’s special 10th anniversary project, “JapaneseGraphic Design Currents”, was ver y highly praised, andreceived the “Mecenat Awards for Outstanding Popularizationof the Arts”. The gallery had held 218 design exhibitions by
July 2004, and had hosted 651,294 visitors. 12 exhibitions
were held in 2003, with 40,801 visitors.
DNP Ginza Building 1st floor 7-2, Ginza 7-chome, Chuo-ku
Tokyo 104-0061
TEL:
03-3571-5206
Open:
11:00 - 19:00 (Saturdays until 18:00)
Closed:on Sundays and holidays
Admission: Free

T OPICS
Seventh place in Integrex Inc.’s Third Corporate Social Responsibility Survey
Integrex Inc. provided our company with a report on the results of its third “Integrex Questionnaire”. This questionnaire is for evaluation of corporate management integrity from the point of view of the Social Responsibility
Investment (SRI). It is conducted for companies listed in the 1st and 2nd sections of Tokyo Stock Exchange withregard to items such as management transparency, top management commitment, and the management system.

Among respondent companies
Within the industry
Among TSE 1st section companies

Hokkaido Coca-Cola Bottling Co, Ltd. (group company)
7th out of 877
1st
4th out of 502

Among respondent companies

38th out of 877
6thWithin the industry
Among companies not listed in TSE 1st section

Center for Contemporary Graphic Art
Established 1995

The CCGA stores the Tyler
Graphics Archive Collection of Tyler
Graphics of the USA, which is wellknown as modern graphic arts center. In addition to regular exhibitionsof the works it holds in storage, the Center also holds exhibitions of a wide range of modern art. The gallery had held 32
exhibitions by September 2004, and has hosted 48,201 visitors.
In 2003, 4 exhibitions were held , with 4,002 visitors.
Location:
TEL:
Open:
Closed:Miyata 1, Shiota, Sukagawa-shi, Fukushima, 962-0711
0248-79-4811
10:00 - 17:00 (Admission until 16:45)
on Mondays and days following holidays (not including consecutive
holidays); New Year’s
Admission: ¥300 for adults; ¥200 for students (elementary school children,
seniors over 65, and the handicapped are admitted free of charge.)

Location:

Notes:• As of March 31, 2004, DNP holds 23,174 regular shares (0.22% share of voting rights) of Mizuho Financial Group, the holding company of Mizuho Bank, Ltd. and Mizuho
Corporate Bank.
• In addition to the above, DNP holds 33,107,705 own shares. These include 1,000 shares which, despite the record of the share registry, are not actually held by DNP.

DNP’s overall evaluation

Social Performance

Social Performance

The DNP Group is engaged in deeply original philanthropy based on our motto, “Long-lasting and close to our corebusiness.” Given that our core business is printing, we seek mainly to promote graphic arts through our philanthropic efforts, so that new creative arts can contribute to the evolution of the graphic reproduction arts as a cultural
art form and gain status, and also so as to offer new artistic development and imagination to society.
We are also focused on providing information about our environmental conservation efforts, and also to supporting
our customers in their environmental communications.

759,480,693
33,505¥21

1st out of 315

ddd Gallery
Established in 1991

The ddd Gallery is graphic design
gallery in Kansai that conducts design
exhibitions and lectures. The gallery’s
exhibitions focus mainly on introducing
up-and-coming artists from overseas.
The gallery had held 131 exhibitions by
September 2004, and has hosted 182,730
visitors. 11 exhibitions were held in 2003, with 17,659 visitors.
Location:

Dojima AXIS Bldg. 1F, 2-2-28 Dojimahama, Kita-ku
Osaka 530-8208
TEL:
06-6347-8780
Open:
10:00 - 18:00
Closed:on Saturdays, Sundays and holidays
Admission: Free

Ginza School Opened 1995
This is an open event held 4 - 5 times annually with thetheme, “Having a good time thinking about communications.” We
consider the fun and the difficulties
of communications along with theguests. These events have been
held 42 times, with about 70 participants each time, for a total of 3,012 participants.

Mainichi Publishing Culture Prize, Kitajima Prize
The Mainichi Publishing Culture Prize was established in1947 by the Mainichi Shinbun, andis awarded each year for superiority in literary publishing. DNP maintains deep ties with the publishingworld through our printing, andsince 1997 we have been awarding
the Kitajima Prize, with a diploma of merit and commemorative gift, in our capacity as a special cooperating company.
We presented five works with awards on the 57th occasion of
the prize, among them Saburo Kawamoto’s Fumiko Hayashi’s
Showa and Takeshi Yoro’s Wall of Stupidity.

In addition, DNP is recommended for investment with regard to SRI by Ethibel (Belgium) and FTSE

68

69

Targets for 2004 Activities

Environmental communication

Nikkei Shinbun’s 7th “Environmental Management Ranking”
DNP’s Environmental Management Ranking in the manufacturing industry category fell from 22nd to 34th (announced
in the December 11, 2003 Nikkei Shinbun; DNP had beenranked 15th in 2001, and 22nd in 2002). We intend to make
improvements in the quality of our environmental management
system, i.e., the “Eco Report System”.

Results of 2003 Edition Questionnaires
The results of the questionnaires returned are as follows(rating out of a maximum of 5 points):
Sufficient detail in content
Easy to view and readEasy to understandCover design
Overall score

4.8 points
3.9 points
3.9 points
4.3 points
4.2 points

DNP Group Environmental Targets

Note: Overall score was rated 4.3 in 2001, 4.1 in 2002.

Support for the creation of environmental communication tools
From 2000 to the present we have been involved in theplanning and creation of environmental reports, sustainability
reports and environmental websites for various businesses. Our
Group companies conduct specialized content consulting, with
DNP Media Create Co., Ltd. handling printed media and DNP
Digitalcom Co., Ltd. handling websites.

Nippon Steel Corporation

NEC Fielding

Tokyo Gas

Relations with Local Communities
The DNP Group production facilities, which are locatedthroughout Japan, are engaged in regional environmental conservation efforts, including beautification of the areas aroundplants and disaster drills. They also actively participate in andco-sponsor local festivals and other events. The DNP Group’s
production facilities also run on-site study programs and givesite tours. In addition, they work at maintaining good communications with local communities by making gyms and pools
open to the public, offering conference rooms, meeting halls,
training facilities, and recreational facilities, and by holding
concerts and other events.

Communications with local communities
The DNP Group is a good corporate citizen in local communities.

70

Hokkaido Coca-Cola Bottling Co., Ltd.

Support for the local Yosakoi Soran dance team (May).

Ushikyu Plant, DNP Data Techno Co., Ltd.

Hosting of plant tour for local high school students (May).

Warabi Plant, Business Forms Operations• Received the Letter of Thanks from the Health, Labor and Welfare Ministry for blood drive
activities (July).
• In-house fire crew received the Excellent Firefighting Team Award from the Saitama Firefighters
Association (March).

Kami Fukuoka Plant, Dai Nippon Printing Fine Electronics Co., Ltd.

Received the Letter of Thanks from the Health, Labor and Welfare Ministry for blood drive activities (July).

Tokai Dai Nippon Printing Co., Ltd.

Co-sponsor of Nagoya City Moriyama-ku “Genki Matsuri” (October).

Kyoto Plant, Dai Nippon Printing Fine Electronics Co., Ltd.

Received the Letter of Thanks from the Health, Labor and Welfare Ministry for blood drive activities (November).

Nara Plant, DNP Data Techno Kansai Co., Ltd.

Received the National Hazardous Materials Safety Association Director’s Commendation from the
All Japan Hazardous Materials Safety Association for excellence in hazmat control (June).

Shikoku Dai Nippon Printing Co., Ltd.

Hosted a book manufacturing process plant tour for parents and children as summer vacation
on-site study program (July).

Kyushu Dai Nippon Printing Co., Ltd.

• Cooperation in social studies classes for local elementary school children (June).
• Received the letter of thanks for cooperation in Children’s 110 home (March).

Headquarters Education & Traning Depertment

Hosted training for Tokyo school personnel (August).

Development and sale of environmentally conscious products• To improve year-on-year sales of environmentally conscious products by 10%
Green purchasing• To improve the year-on-year purchasing ratio of products deemed to be green according to company
standards by 2.5%
• To improve the year-on-year purchasing ratio of general products (office supplies & fixtures) bearing
environmental labels such as the Eco-Mark by 3.0%

Social Performance
Targetsfor 2004 Activities

Social Performance

Publication of the Environmental Report
We issued our first “Eco Repor t” in 1998. We havesince, from 2000 through 2004, issued five consecutive
annual “Environmental Reports (with the 2004 edition entitled “Sustainability Report”). The 2003 edition received theSuperiority Award at the “7th Environmental Reporting Awards”
sponsored by Toyo Keizai Publishing’s Green Reporting Forum.
In granting the award, the Forum praised the report for “providing a clear explanation of environmental conservation goals andresults, and making strong efforts to maintain data reliability.”
We continue to provide these features. The next challenge weface is bolstering the environmental information posted on our
homepage (Web).

The Air Pollution Control Law will be revised in May 2005, with text added concerning regulation of atmospheric emissions of VOCs from fixed sources. The DNP Group is involved in businesses that emit large quantitiesof VOCs, so we elected to take the initiative and deal with this issue prior to the revision of the law. The DNP Group
Environmental Committee convened in March 2004 took action to beginning making efforts to reduce VOCs from2004 onward by adding “Reduction of air emissions of VOC” to the list of DNP Group environmental targets.

Reduction of industrial waste
To achieve the following targets by FY 2005
• Reduce waste emissions per unit of production (Waste emissions/production) by 40% from the FY 2000
level
• Reduce the amount of unused materials generated by 25% from the FY 2000 level• Achieve zero emissions at 20 sites• Improve the reduce ratio (Unused product generation amount / total material inputs) by 20% from the FY
2000 level• Achieve a recycling ratio (Recycle amount/unused product generation amount) of 80%
Global warming prevention
To achieve the following targets by FY 2010
• To maintain total energy consumption at the FY 2000 level• To maintain greenhouse gas emissions a the FY 2000 level• To reduce energy consumed per unit of production (Crude-oil converted energy consumption amount /production) by 15% from the level in FY 1990
• To reduce CO2 emissions per unit of production (CO2 / production) by 20% from the level in FY 1990
PRTR (Pollutant Release and Transfer Register)• To reduce air emissions of toluene for the entire DNP group to less than 500 tons / year by FY 2004
• To reduce emissions and transfers of items designated as Class I Chemical Substances (except toluene)
under the PRTR law to 50% of the FY 2000 level by FY 2004
• Reduction by 2005 of air emissions of VOCs (with the exception of methane) by the DNP Group by 50% incomparison with 2002.
Environmental conservation
To achieve the following targets by FY 2005
• To keep maximum densities of gas emissions subject to emissions regulations at 70% of the required
standard or less• To keep maximum densities of wastewater discharges subject to wastewater regulations at 70% of therequired standard or less• To keep the maximum density of odors at site perimeters at 70% of the required standard or less• To keep the maximum level of noise and vibration at our site perimeters at 95% of the required standard
or less
Prevention of soil or underground water contamination
To execute the measures prescribed in the DNP group Guideline for Measures against Ground Contamination
Office environment
To improve the used paper recovery ratio by 65% in comparison to the rate for municipal waste
Reduction of environmental impact incurred during transport
To achieve the following targets by FY 2010
• To reduce CO2 emissions per unit of transport (CO2 emissions / transported weight / distance traveled) by
5% from the level in FY 2000
• To reduce fuel consumption per unit of sales (Fuel consumed / sales) by 20% from the amount in FY 2000
Environmental management system• To achieve ISO 14001 certification at 30 sites by FY 2005
• To perform Eco-Audits at all sites

71Results of Environmental Efforts

1972

Establishes the Environmental Department within thehead office to promote pollution prevention measures andcommunication with local residents

1990

Makes new efforts to deal with global environmental issues
by establishing the Eco-Plan Promotion Office within theEnvironmental Department
Establishes the DNP Group Codes of Conduct and the DNPGroup Employee Codes
Establishes the Eco-Plan Promotion Targets, thefundamental voluntary plan based on the Environmental
Declaration of the Codes of Conduct, and starts activities by
4 subcommittees

Environmental Report Division receives “6th Environmental
Report Grand Prize” for superior reporting
Establishment of “DNP Eco Label”, a Type-II environmental
label

Information Media Supplies Operations receives JIA-type
environmental Eco Label registration for two types of ink
ribbon for dye sublimation card printers: ID-3BP (250
screen/PS core) and ID-3BP (250 screen/ABS core).
Convening of the DNP Environmental Committee (Reporton 2002 activities, revision of 2003 guidelines)

Starts the Eco-Report System, which is part of the DNPGroup environmental management system

1994

Remodels and expands the Environmental Department
into the Environment & Product Liability Department tostrengthen our efforts towards environmental issues,
including taking responsibility for the disposal of products
we produce

May 2003 Issuance of Eco Report No. 20

DNP wins the International Trade and Industry Minister’s Prize in the “Fourth Global Environmental Awards”,
which commend companies and groups that contribute toconservation of the global environment. (The Awards wasestablished in 1991 by the Japan Industrial Journal andthe Fuji Sankei Group, with special support by WWF Japanand sponsorship by the Ministry of the Environment, theMinistry of the Economy, Trade and Industry, and the Japan
Federation of Economic Organizations.)

Aug. 2003 Eco-audits conducted at three sites

1996

1997

1998

Begins performing the Eco-Audit, the internal
environmental audit performed by the Eco-Plan Promotion
Office to upgrade the Eco-Report System
Okayama Plant, the Information Media Supplies Operations
becomes the first in the printing industry to acquire ISO
14001 certification
Mihara Plant, the Display Components Operations acquires
ISO 14001 certification
Publish the DNP Group Environmental Activity Report

2000

The Eco-Plan Promotion Office is dismantled andreplaced with the DNP Group Environmental Committee
to strengthen the system for promoting environmental
activities
The affiliate DNP Facility Service Co., Ltd. becomes the firstin the world to be certified as a comprehensive system withquality, environment, office safety and HACCP*1
Okayama Plant, the Decorative Materials Operationsacquires ISO 14001 certification

2001

2002

Tokai Dai Nippon Printing Co., Ltd., and Sayama Plant, Dai
Nippon Printing Technopack Co., Ltd. acquires ISO 14001
certification
Tokai Dai Nippon Printing Co., Ltd. acquires FSC-CoC certification
Acquisition of ISO 14001 certification by: Decorative
Materials Operations Kobe Plant, The Inctec Inc. (Tokyo,
Kansai, and Utsunomiya Plants), Business Forms
Operations Ushikyu Plant, DNP Technopack Co, Ltd.
Tokai, Ten Wa Press (Private) Limited, Kyushu Dai Nippon
Printing Co., Ltd. Chikugo Plant, Electronic Components
Operations Kyoto Plant, Information Media Supplies
Operations Sayama Plant.

The “DNP Group Sustainability Report 2004” has been composed based upon the Ministry of the Environment’s“Environmental Report Guidelines, 2003 Edition”. The pages containing the 5 areas and 25 categories deemed by
the Guidelines to be important for inclusion in an environmental report are noted below.

DNP Media Create Kansai Co., Ltd. Ono Plant acquires ISO
14001 certification

1993

1995

72

2003

Apr. 2003 Training of new regularly hired employees

Holding of Eco Report explanatory meetings at sites participating in the Eco Report System
Jun. 2003 Training of employees hired on a non-regular basis

Commercial Printing Operations acquires FSC-CoC certification
Convening of the DNP Environmental Committee (Reporton activities in the first half of 2003)
Sep. 2003 Eco-audits conducted at 15 sites

Comparison with Environmental Reporting Guidelines by the Ministry of the EnvironmentArea1) Basic Handling2) Summary of
Policies,Targets,Achievements in
Environmental
Conservation

3) State of Environmental
Management

DNP Media Create Kansai Co., Ltd. acquires FSC-CoC certification
Oct. 2003 Eco-audits conducted at three sites
Training of employees hired on a non-regular basis
Nov. 2003 Issuance of Eco Report No. 21
Holding of Eco Report explanatory meetings at sites participating in the Eco Report System
Dec. 2003 Eco-audits conducted at three sites
Jan. 2004 Advanced Colortech Co., Ltd. and Decorative Materials
Operations Tokyo Plant acquire ISO 14001 certification

4) State of Activities
for Reduction ofEnvironmental Burden

Packaging Operations acquires PEFC-CoC certification
Eco-audits conducted at four sites
Technical Seminar “A” is held
Feb. 2004 Technical Seminar “A” is held
Eco-audits conducted at 18 sites
Mar. 2004 Electronic Components Operations Kami Fukuoka Plant
acquires ISO 14001 certification
Eco-audits conducted at nine sites

Content

Page(1) CEO's statement

1, 6(2) Foudation of reporting(Reporting organisation,time period,fields)

Second cover, 4, 5, 70, back cover(3) Summary of the nature of the business

2, 3, 4, 5, 18-30, 67, 68, 72(4) Business policies regarding environmental conservation

8(5) Summary of plans,targets, and achievements in environmental
conservation

32, 33(6) Material Balance

16, 17(7) Summary of environmental accouting information

50, 51(8) State of environmental management system

9-14, 44-47, 55

Social Performance
Comparison
with the 2003 Guidelines

Social Performance
Resultsof Environmental Efforts

1992

Comparison with the 2003 Guidelines(9) State of supply-chain management for environmental conservation 24-27, 43, 47(10) State of reserch and development of technologies forenvironmental conservation and environment-conscious
products/services

20, 24, 26, 30(11) State of the disclosure of environmental information andenvironmental communication

55, 70(12) State of compliance with environmental regulations

44-47(13) State of social contrigution related to environment

50, 70, 72(14) State of total energy input, and mitigation measures

41, 42(15) State of amount of material input, and mitigation measures

16, 38, 39(16) State of volume of water resource input, and mitigation measures40(17) State of GHG emission, and mitigation measures

41, 42(18) State of emmisions and removal of chemical substaces, andmitigation measures

36, 37, 52-54(19) Production volume or sales volume67, 68(20) Total amount of waste, amount finally diposed of waste andmitigation measures38, 39(21) Total amount of waste water, and mitigation measures40(22) State of environmental burdens from transportation, and mitigation 43
measures

Convening of the DNP Environmental Committee (Reporton 2003 activities, revision of 2004 guidelines, decision to
reduce air emissions of VOCs and make additional efforts
to manage hazardous substances)(23) State of green purchase, and promotion measures47(24) State of environmental impacts on whole life cycle of products and 48
servises5) State of social activities(25) State of social activities

58-70

73

Independent Review Report

Comments by independent institution

Independent Review Report

The following are the comments made by the independent institution (Shin Nihon Environment and Quality Management Research Institute)
regarding the assertions made by DNP.

TRANSLATION

Efforts in Resource Recycling: Waste Reduction(Assertions made by DNP on page 38)
The DNP Group targets focus on reducing the amounts andgeneration rates for waste. These are the appropriate efforts and targets for attempts to contribute to the building of a recycling society.
Moreover, as noted in the report, the company’s performance in thisarea continues to be in an upward trend. We hope to see the resultsof these efforts shown even more clearly in the future, with the effectiveness and the efficiency of these efforts using economic benefits,
and environmental costs- economic benefits ratios, etc.
Efforts in Resource Recycling: Recycling of Used Office Paper(Assertions made by DNP on page 40)
While it is easy to measure in general used office paper collection, given the difficult of accurately measuring the weight of waste,
it is difficult to measure the collection rate. The DNP Group deserves
special mention for achieving accurate measurement of collection
rates at half of the sites in the Group.
We hope to see the results of efforts in other office-relatedareas shown quantitatively in the future, in the same way as those forcollection of used office paper.
Measures against Global Warming(Assertions made by DNP on page 41)
The DNP Group maintained its targets of 2000 levels or lower
for energy consumption and greenhouse gas emissions despite anincrease in its lines of business, and has very ambitious 2010 per unit
targets of 15% and 20% reductions in comparison with 1990 for bothof the above categories, respectively.

In terms of the actual efforts underway, the utility-related measures covered by the assertions are nearly complete, and we believethat in the future more strategic efforts will be necessary. While wedo see the effects of the “Production 21” efforts, we hope to seeemissions credit know-how, developed through participation in test
programs conducted by the Ministry of Economy, Trade and Industry
and the Ministry for the Environment, put to use in the future.
Prevention of pollution(Assertions made by DNP on page 45)
The DNP Group has established voluntary standards that exceed
the regulations contained in the laws and ordinances, and these standards are complied with and form the basis of improvement measuresat each business site. The checking performed by the Environmental
Safety Department is strict, and sites at which the voluntary standards are not being met are required to identify the problems andimplement appropriate measures.
Efforts made in the business area upstream _ Green Purchasing(Assertions made by DNP on page 47)
The DNP Group disseminates information about green products in-house, and creates incentives for the purchasing of green
products, including both raw materials for products and general supplies. We confirmed that, in the area of general supplies, the reason
for the decrease in the green purchasing rate for 2003 was that theincrease in the overall purchasing amount was great and countered
the increase in the amount of green purchasing. In the future we hope
to see more comprehensive efforts toward an even greater increasein the green purchasing rate, such as the controls on the purchasingof non-green materials and an increase in the resource recycling ofgeneral supplies.
Efforts made in the business area downstream _Sales of environmentally-conscious products(Assertions made by DNP on page 48)
While there were fluctuations in the sales of individual environmentally conscious products, there has been a steady increasein sales in comparison with the previous year. Some of the Divisions
are applying a high degree of technical expertise to meeting thegreen purchasing needs of customers. In the future we hope to see
concentrated efforts put into suggestion selling of environmentallyconscious products to customers.

The reliability of the results of efforts has been increased through adoption of the “Kensyou-Meidai Method”.
The DNP Group’s “Eco Report System”, as described on page 9, isthe company’s own environmental management system. It provides thebasis for determining the various environmental standards, guidelines andefforts toward attaining the environmental targets. Through this system,
the details of environmental efforts and their results for each site within
the Group are published semiannually in the form of a white paper report.
T h e DNP Gr oup h a s emp l o ye d t h e s er v i c e s o f Shin N iho n
Environment and Quality Management Research Institute as independent
verifier for environmental reports since issuing their 2000 edition. In theearly stage of services, verification had been conducted on whether thecontents of “DNP Group Eco Report” is collected, compiled, and disclosed
appropriately in accordance with the policy determined by the company.
It was later suggested at the editorial policy meeting in the springof 2002 that a novel approach differing from other independent verification might be taken. Rather than merely following along with the policy
determined by the company, it might be better to attempt to get a generalevaluation of the reliability of the information in the environmental report.

In response to this, the Institute proposed that the verification methodology named“Kensyou-Meidai Method”. This method is characterized
by that verifier develop“Proposition (kensyou meidai)” for the “Assertions”,
the main messages that the company wants to appeal to reader. The reasonable evidence that is provided in support of these assertions is thenexamined during the verification. The proposition requires the extended
degree of the evidence to be verified, and in some cases causes the assertions themselves to be changed.
The adoption of the Kensyou-Meidai Method has doubled the work
necessary to preparing for the verification. Nevertheless, it not only has
improved the accuracy of the contents of the report, but also has improved
the accuracy of the reported results of the environmental efforts, thereby
enhancing the reliability of the environmental report itself. It also makes
clear what kind of environmental efforts can be evaluated by an independent body, and therefore has benefit on improvements to the management
system.

August 27, 2004
Mr. Yoshitoshi Kitajima
Chairman of the Board, President and Chief Executive Officer
Dai Nippon Printing Co., Ltd.
1. Purpose and Scope of Our Review
We have performed certain procedures as described below to the DNP Group Environmental Annual Report for
the year ended March 31, 2004 (The “Report”) of Dai Nippon Printing Co., Ltd. and its principal subsidiaries(“Company”). The scope of the procedures are limited to, “Whether the main message that the Company wants tocommunicate with stakeholders through the Report (the “Assertion”) agrees with the main point of the Report”, and“Whether the main point of the Report agree with the Actual Condition of the Company”. It is understood that thisreport is solely for reporting our findings based on procedures developed by us for this purpose with the KensyouMeidai Method, and we do not express audit opinion on any of the items in the Report because our procedures do
not constitute an audit conducted in accordance with generally accepted auditing standards.
2. Procedure Performed
The procedure of Kensyou-Meidai Method requires the evaluation of the two clauses, “Whether the Assertion
agrees with the main point of the Report”, and “Whether the main point of the Report agree with the Actual
Condition of the Company” by setting propositions. The fact that all the propositions are proved based onreasonable evidence is equal to the fact that the two clauses are proved based on reasonable evidence. For thispurpose, we have performed the following procedures:(1) We understand the Assertions prepared by the Company. The propositions vary according to the existence ofa hierarchical structure in the Assertions.
(2) We set the propositions that are based the two clauses.
(3) We apply procedures for each proposition and ask the Company for submission of reasonable evidence insupport of each proposition.
(4) We review the evidence, and search for any negative evidence for each proposition.
(5) We consider every proposition and report the findings to the preparer of the Report.
3. The Items in the Assertions
The Assertions are not in a hierarchical structure in this case. They are set in each chapter of the Report andare disclosed on page 74 of the Report. We have developed the Propositions on all the topics and the Report
regardless of whether it has an assertion or not. The propositions on each Assertion are disclosed on the
Company's website.
4. Results of the Procedures Performed
As a result of the procedures performed, no matters came to our attention that caused us to believe that theevidence is neither negative nor is against the proposition. Thus, we conclude that the Assertions agree with themain point of the Report and the main point of the Report agree with the Actual Condition of the Company.
Yasuo Kurihara
Representative Director
Shin Nihon Environment and Quality Management
Research Institute

The Kensyou-Meidai Method
We describe the company’s Environmental report and Sustainability report (“the Report)
as a hierarchical structure of “Assertion—Description of the Report—Actual Condition ofcompany” shown in fig.1 in the independent review with the Kensyou-Meidai Method. Here,
we simply refer the main message that the company wants to communicate with stakeholders
through the media as “Assertion”.
A desirable Report is one where Assertions are appropriately described and Description of
the Report is based on the Actual Conditions of the Company.
The scope of our independent review with the Kensyou-Meidai Method is to perform certain procedures and report the findings on “Whether the Assertion agrees with the Descriptionof the Report” and on “Whether the Description of the Report agrees with the Actual Conditionof the Company”, from an independent position.
A=>B means the Assertion (A) agrees with the Description of the Report (B) and B=>C
means the Description of the Report (B) agrees with the Actual Condition of the Company (C).
Also, the Assertion should agree with the Actual Condition of the Company when the Company
makes the Assertion (We describe as A=>C).
The following three clauses are the basic clauses under this method.
1. Basic clause (1):
The Assertion agrees with the Actual Condition of the Company (A=>C)
2. Basic clause (2):The Assertion agrees with the Description of the Report (A=>B)
3. Basic clause (3):
The Description of the Report agrees with the Actual Condition of theCompany (B=>C)
In the next step, we set the propositions derived from the basic clauses of (1), (2) and (3).
1−1. Generally multiple, practical propositions derived from 1. The Assertion agrees with
the Actual Condition of the Company.
2−1. Practical propositions derived from 2. The Assertion agrees with the Description of
the Report.
3−1. Practical propositions derived from 3. The Description of the Report agrees with theActual Condition of the Company.

Assertion (A)Description (B)Actual Condition (C)Fig. 1 Hierarchical Structure of the Report74

Social Performance
Independent
Review ReportSocial Performance
Independent
Review Report

Reduction of Environmental Impact of Chemicals(Assertions made by DNP on page 36)
We recognize that the DNP Group implements voluntary management of chemicals that are not specified in the PRTR, and thatthey are making efforts to reduce emissions. The DNP Group is also
making steady progress in its efforts to reduce emissions and transport amounts of VOCs that it cannot, at the present time, avoid using
as raw and subsidiary materials, given the particular features of its
business. The company is achieving success in its measures for toluene, which include recycling and elimination, and this shows up in theperformance figures.
Henceforth we can hope to see research and development into
products and production processes that lead to even further reductions in VOC use and emissions.

Independent Review Report on
the DNP Group Environmental Annual Report for the year ended March 31,2004

Thus, we have the following 6 types of propositions under the Kensyou-Meidai Methodwith the derived propositions added to the basic propositions.
Basic Propositions
1. The Assertion agrees with the Actual Condition of the Company (A=>C)
2. The Assertion agrees with the Description of the Report (A=>B)
3. The Description of the Report agrees with the Actual Condition of the Company (B=>C)
Derived Propositions
4. Practical propositions are derived from “The Assertion agrees with the Actual Conditionof the Company”
5. Practical propositions are derived from “The Assertion agrees with the Description of
the Report”
6. Practical propositions are derived from “The Description of the Report agrees with theActual Condition of the Company”
The Assertions should be as concrete as possible when performing the procedures, andthey must be disclosed. The independent review procedures with the Kensyou-Meidai Method
are the following:
I. Understanding of the Assertions
II. Setting the Propositions
III. Performing procedures to consider whether proposition 4, 5 and 6 are proved or not.
IV. Performing additional procedures to consider whether basic propositions 1, 2 and 3 areproved or not.
*The procedures involve the process of asking the company for submission of reasonable
evidences in support of each proposition, evaluating the relevance of submitted evidence, andsearching for any negative evidence.
The conclusion on whether each proposition is proved would be reported as the result of
the procedures performed. If we obtained reasonable evidence in support of all the propositions
and did not find any negative evidences on each proposition, it means, “the Assertion agrees
with the Description of the Report, and the Description of the Report agrees with the Actual
Condition of the Company”.
In addition, the Kensyou-Meidai Method performed included only “The Assertion agrees
with the Description of the Report (A=>B)” and “The Description of the Report agrees with theActual Condition of the Company (B=>C)” as an attestation, although it included “The Assertion
agrees with the Actual Condition of the Company (A=>C)” as a procedure.
*Supplementary explanation: The description of the report shown in Fig.1 may indicate thewhole report, or part of the report such as each chapter and each page. In addition, the Assertion of the whole report is above the Assertion of part of the report in the hierarchical structure.
On the other hand, it is useful in practice to prepare Assertion on each page as needed
without considering such complex structure. However, propositions are always set for eachpage in which no Assertion is set.

75