Consolidated Financial Results for the Fiscal Year Ended March 31, 2012 [J-GAAP]May 14, 2012

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listings:
Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Yoshio Kanbe, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
General meeting of shareholders:June 28, 2012
Dividend payment date:June 29, 2012
Securities report issuing date:June 28, 2012
Preparation of earnings presentation material: None
Holding of earnings announcement:
None*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2012
(April 1, 2011 – March 31, 2012)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Operating Income

Ordinary Income

Net Income (Loss)

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2012

1,507,227(5.2)

34,015(49.8)

36,843(41.3)(16,356)–

Year ended March 31, 2011

1,589,373

0.4

67,8182.0

62,786(8.8)

25,032

7.5

Note: Comprehensive income (loss):Year ended March 31, 2012: ¥(17,340) million (–%)
Year ended March 31, 2011: ¥12,474 million ((67.2)%)

Net Income(Loss)
per Share

Diluted Net
Incomeper Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2012(25.39)

–

(1.8)

2.3

2.3

Year ended March 31, 2011

38.86

–

2.7

3.8

4.3

Reference: Equity in earnings or losses of affiliates: Year ended March 31, 2012: ¥345 million
Year ended March 31, 2011: ¥(412) million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2012

1,608,806

914,21354.2

1,352.71

As of March 31, 2011

1,649,784

952,44055.1

1,410.44

Reference: Stockholders’ equity: As of March 31, 2012: ¥871,229 million As of March 31, 2011: ¥908,521 million(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at Endof the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2012

108,603(80,126)(32,833)

216,279

Year ended March 31, 2011

140,053(82,561)

15,185222,056

2. Dividends
Dividends per Share (Yen)First
Quarter-end

SecondThird
Quarter-end Quarter-end

Year-end

AnnualTotal Dividends(Annual)(Million yen)

Dividend
Payout Ratio(Consolidated)(%)

Dividends to
Net Assets
Ratio(Consolidated)(%)

Year ended March 31, 2011

–

16.00

–

16.00

32.00

20,63082.3

2.3

Year ended March 31, 2012

–

16.00

–

16.00

32.00

20,627–

2.3

Year ending March 31, 2013
(Forecast)

–

16.00

–

16.00

32.00

117.8

3. Consolidated earnings forecasts for the year ending March 31, 2013
(April 1, 2012 – March 31, 2013)(Percentages show change from corresponding year-ago period.)
Operating
IncomeNet Sales

Full year

Ordinary Income

Net Income
per Share

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,580,000

4.8

48,00041.1

47,00027.6

17,500–27.17* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: No
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of common shares issued and outstanding
1) Number of common shares outstanding at
end of each period (including treasury
shares)2) Number of treasury shares at end of eachperiod3) Average number of shares outstanding
during the period

As of March 31,
2012

700,480,693
shares

As of March 31,
2011

700,480,693
shares

As of March 31,
2012

56,417,765
shares

As of March 31,
2011

56,338,163
sharesYear ended
March 31, 2012

644,102,179
sharesYear ended
March 31, 2011

644,187,752
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2012
(April 1, 2011 – March 31, 2012)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating Income
Ordinary Income
Net Income (Loss)(Loss)Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2012

972,638(9.6)(4,678)–

10,760(65.2)(18,504)–

Year ended March 31, 2011

1,076,434(0.9)

14,37023.5

30,877(27.0)

17,11869.1

Net Income (Loss)
per Share

Diluted Net Income
per Share

Yen

Yen

Year ended March 31, 2012(28.71)–

Year ended March 31, 2011

26.55

–

(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets per
Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2012

1,265,933

650,775

51.4

1,009.60

As of March 31, 2011

1,314,214

686,674

52.2

1,065.16

Reference: Stockholders’ equity: As of March 31, 2012: ¥650,775 million As of March 31, 2011: ¥686,674 million* Presentation of audit status
These consolidated financial results are exempt from auditing procedures based on the Financial
Instruments and Exchange Act. The financial statements are being audited based on the Financial
Instruments and Exchange Act at the time of the disclosure of these consolidated financial results.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was prepared. Actual results
may differ significantly due to a variety of factors.
See the “1. Operating results (1) Analysis of operating results” on pages 2–3 for information about
earnings forecasts.

Contents
1. Operating results ................................................................................................................................... 2(1) Analysis of operating results........................................................................................................... 2(2) Analysis of financial position........................................................................................................... 4(3) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2012and year ending March 31, 2013 .................................................................................................... 6(4) Business risks................................................................................................................................. 6
2. Information on DNP ............................................................................................................................... 93. Management policies........................................................................................................................... 13(1) Core policies ................................................................................................................................. 13(2) Medium- and long-term management strategy and key issues .................................................... 13
4. Consolidated financial statements ....................................................................................................... 18(1) Consolidated balance sheets ....................................................................................................... 18(2) Consolidated statements of income and comprehensive income................................................. 20(3) Consolidated statements of changes in net assets ...................................................................... 22(4) Consolidated statements of cash flows ........................................................................................ 25(5) Notes on premise of a going concern ........................................................................................... 27(6) Basis of presenting consolidated financial statements ................................................................. 27(7) Additional information ................................................................................................................... 29(8) Notes regarding consolidated financial statements ...................................................................... 30[Consolidated balance sheets] ...................................................................................................... 30[Consolidated statements of income] ............................................................................................ 30[Consolidated statements of changes in net assets] ..................................................................... 31[Segment information, etc.] ........................................................................................................... 33[Per share information] .................................................................................................................. 36
	
  	
  	
  [Significant subsequent events]………………………………………………………………………….36
5. Non-consolidated financial statements ................................................................................................ 37(1) Non-consolidated balance sheets ................................................................................................ 37(2) Non-consolidated statements of income....................................................................................... 39(3) Non-consolidated statements of changes in net assets ............................................................... 40(4) Notes on premise of a going concern ........................................................................................... 43
6. Changes in directors and officers (as of June 28, 2012) ..................................................................... 43

1

1. Operating results(1) Analysis of operating results1) Operating results for the fiscal year ended March 31, 2012
During the fiscal year ended March 31, 2012, Japan’s economy recovered gradually from the impactof the Tohoku – Pacific Ocean Earthquake, but uncertain conditions persisted, due partly to overseas
economic downturns, higher crude oil prices, and concerns about worsening domestic employment
conditions.
The printing industry continued to face a difficult business environment. Corporate advertisingexpenditures were slow to recover from a sharp drop after the earthquake, consumer spending was
sluggish, and order prices declined as a result of stiffer competition.
In this environment, the DNP (Dai Nippon Printing Co., Ltd.) Group (hereafter DNP) sought toaggressively develop its business and deliver products, services, and solutions tailored to the needsof its customers, based on its P&I Solutions business vision (P&I stands for “printing technology” and“information technology”). DNP also pursued “Production 21” Activities to establish a robust
production structure in all facets of production, including quality, cost, and delivery time, and it
worked to secure earnings.
In particular, in the Information Communication segment, although the business environment haschanged significantly as a result of changes in consumer behavior, advance of social media, andgreater information security needs, DNP is working to leverage its technologies and expertise tobuild a new business model. Additionally, to enhance production efficiency, DNP has pursued
business structure reforms from the standpoint of overall optimization, including the integration ofgroup companies and reorganization of the nationwide production management structure.
Display product-related subsegments have been seriously affected by changes in business
policies at main customers, including substantial production cutbacks in response to weak global
LCD TV sales and surplus inventories, and earnings have deteriorated sharply.
To respond quickly to these changes in the order environment, DNP has pursued businessstructure reforms for LCD color filters and other display-related products, including the consolidationof production sites and shift to products with growth potential. We revalued these production andother facilities based on future cash flow and recorded impairment losses of around ¥24.7 billion.
As a result, consolidated net sales fell 5.2% year on year to ¥1,507.2 billion, consolidated
operating income fell 49.8% to ¥34.0 billion, consolidated ordinary income fell 41.3% to ¥36.8 billion,
and consolidated net losses totaled ¥16.3 billion, down from net income of ¥25.0 billion in theprevious fiscal year.
The results by segment are as follows.
[PRINTING]
Information Communication
In the Books and Magazines business, the publications market continued to slump, and althoughbook sales increased as a result of leveraging integrated production lines and other advantages,
magazine sales decreased.
In the Commercial Printing business, sales decreased year on year as a slow recovery incorporate advertising expenditures resulted in generally weak sales of flyers, pamphlets, catalogs,
and other products.

2

In the Business Forms business, smart card sales were strong, including SIM cards,
transportation cards, and electronic money, but overall sales decreased year on year on a decline for
information processing services (ranging from data entry to printing and shipment of personal mailand other items).
In the Educational Publications Distribution business, sales rose above year-ago levels, due partly
to an increase in the number of consolidated subsidiaries.
As a result of the above, overall segment sales fell 1.0% year on year to ¥714.6 billion andoperating income fell 14.6% to ¥15.4 billion.
Lifestyle and Industrial Supplies
In the Packaging business, sales increased year on year, driven by growth for PET bottle aseptic
filling systems, PET bottle preforms, and flexible packaging that uses high-performance films.
In the Lifestyle Materials business, sales increased year on year on growth for eco-friendly
products that use DNP’s proprietary Electron Beam coating technology.
In the Industrial Supplies business, despite growth for energy-related products, including lithium
ion rechargeable battery soft packages and photovoltaic module back sheets, and for
dye-sublimation thermal transfer recording media for photo printers (color ink ribbons and receiverpaper), overall sales decreased year on year on a decline for anti-reflection films used in flat-panel
displays.
As a result of the above, overall segment sales fell 1.7% year on year to ¥522.8 billion andoperating income fell 32.0% to ¥31.8 billion.
Electronics
In the LCD Color Filter business, sales of small and medium-sized filters for smartphones andtablets were strong, but overall sales decreased year on year on a slump in the LCD TV market
caused in part by sluggish global sales.
In the Electronic Devices business, amid tough conditions in the global semiconductor market,
sales increased for high-density build-up wiring boards, but decreased for etched products, including
photomasks and hard drive suspensions.
As a result of the above, overall segment sales fell 21.5% year on year to ¥224.8 billion andoperating losses totaled ¥4.6 billion, down from operating income of ¥12.2 billion in the previous
fiscal year.

[BEVERAGES]
Beverages
Amid tough market conditions, characterized by weak consumer spending and stiffer sales
competition, DNP worked to expand sales of Coca-Cola and Georgia, both core products, and I
LOHAS, a brand of mineral water that uses “ecoru Bottle Shiboru,” Japanʼs lightest bottle.
As a result, coffee sales decreased, but mineral waters increased. Overall segment sales fell 9.5%
year on year to ¥57.0 billion and operating income rose 6.8% to ¥1.3 billion.

32) Forecast for the fiscal year ending March 31, 2013
Concerning the future outlook, we continue to expect fallout from the European sovereign debt crisis,
slowdowns in overseas economies, including emerging countries, higher crude oil prices, anddeflationary effects and worsening employment conditions in Japan. Additional concerns include
unease about electricity shortages and the impact of higher electricity rates. Accordingly, the future
outlook is uncertain. DNP expects conditions in the printing industry to remain challenging, duepartly to a decline in order prices caused by weak domestic demand and stiffer competition.
During the fiscal year ending March 31, 2013, DNP intends to pursue its P&I Solutions businessvision and make every effort to provide products and services that address the needs of its
customers. Today’s uncertain economic outlook calls for the innovation of new products and services.
DNP is working to solve various issues that are apparent by looking at societal changes and needsfrom the perspective of consumers. DNP also intends to pursue its “Production 21” Activities tosolidify the base for promoting P&I Solutions, improve productivity further, and generate solid
earnings and stable medium- to long-term business growth.
For the fiscal year ending March 31, 2013, DNP forecasts consolidated net sales of ¥1,580.0
billion, consolidated operating income of ¥48.0 billion, consolidated ordinary income of ¥47.0 billion,
and consolidated net income of ¥17.5 billion.
(2) Analysis of financial position
1) Assets, liabilities, and net assets
Total assets at the end of the current fiscal year decreased by ¥40.9 billion from the end of theprevious fiscal year to ¥1,608.8 billion, due mainly to decreases in machinery and equipment and innotes and trade receivable.
Total liabilities decreased by ¥2.7 billion from the end of the previous fiscal year to ¥694.5 billion,
due mainly to a decrease in provision for retirement benefits.
Net assets decreased by ¥38.2 billion from the end of the previous fiscal year to ¥914.2 billion,
due mainly to a decrease in retained earnings.
2) Cash flows
Consolidated cash flow provided by operating activities totaled ¥108.6 billion (¥140.0 billion in theprevious fiscal year), due mainly to ¥2.6 billion in income before income taxes and minority interestsand ¥95.8 billion in depreciation.
Cash flow used in investing activities totaled ¥80.1 billion (¥82.5 billion in the previous fiscal year),due mainly to ¥74.6 billion in payments for purchases of property, plant and equipment. Cash flowused in financing activities totaled ¥32.8 billion (¥15.1 billion provided in the previous fiscal year),due mainly to ¥6.2 billion in repayments of long-term debt and ¥20.6 billion in dividends paid.
As a result, cash and cash equivalents at the end of the fiscal year decreased by ¥5.7 billion fromthe end of the previous fiscal year to ¥216.2 billion.

4

The trends in DNP’s cash flow indicators are shown below.
Year ended
March 2008

Year ended
March 2009

Year ended
March 2010

Year ended
March 2011

Year ended
March 2012

Equity ratio (%)

62.6

58.5

56.6

55.1

54.2

Market value-based
equity ratio (%)

65.5

37.7

50.3

39.6

33.9

Debt-to-cash flow ratio(year)

0.5

0.9

1.2

1.6

2.1

Interest coverage ratio(times)

120.1

79.7

63.9

52.6

33.2

Notes:***

Equity ratio: Total stockholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Debt-to-cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest expenses
The above indicators are calculated based on consolidated financial figures.
Market capitalization is calculated as: Fiscal year-end share price × fiscal year-end number of shares
outstanding (excluding treasury stock)
Cash flow: Cash flow provided by/used in operating activities on the consolidated statements of cash flows
Interest-bearing debt: All liabilities on the consolidated balance sheet that accrue interest charges
Interest expenses: Interest expenses on the consolidated statements of cash flows5(3) Basic policies regarding the allocation of profits and dividends for the year ended
March 31, 2012 and year ending March 31, 2013
An important policy of the Company is to pass on profits to shareholders.
Profits are allocated based on a policy of paying stable dividends to shareholders and withconsideration for financial results and the dividend payout ratio. For future business expansion, theCompany strives to retain profits and strengthen its financial constitution and management base.
Retained earnings are used to invest in research and development related to new products andtechnologies, to invest in equipment needed for developing new businesses, and to implement
strategic alliances, including mergers and acquisitions. At the same time, the Company considers
flexible capital policies while also taking into consideration market trends as well as its need forcapital. The Company believes that these efforts will contribute to higher profits that can then bepassed on to shareholders in the future.
Based on this policy, the Company intends to pay a year-end dividend of ¥16 per share, which
together with the interim dividend of ¥16 per share brings the full-year dividend to ¥32 per share, thesame as in the previous fiscal year.
The forecast dividend for the fiscal year ending March 31, 2013 is ¥32 per share, the total of a ¥16interim dividend and a ¥16 year-end dividend.
(4) Business risks
The performance and the results of DNP could be significantly affected by a variety of factors andcircumstances that might arise in the future. Because DNP is aware of these risk factors, its policy is
to strive to minimize their potential effects.
The following are the major factors that the DNP management views as risks.
1) The Japanese economy and consumption trends
DNP engages in a wide range of businesses with an extremely large number of corporate customers,
and conducts its business so as not to overly depend on specific customers. DNP does most of its
business in the Japanese market and overseas sales account for about 13% of net sales.
Nevertheless, if consumer spending and other components of domestic demand slump, owing todomestic economic weakness in sympathy with global economic trends, declines in order volume
and unit prices may affect our corporate performance.
2) Changes in the electronics market
Electronics is one of DNP’s most strategically important segments. We intend to establish a stableprofit base for this segment by building business strategies based on meticulous
information-gathering, establishing highly profitable production systems, and focusing on thedevelopment of very competitive, high added value products. Nevertheless, the performance of thissegment could be affected by global fluctuations in the market for display components and/or
semiconductor-related products, such as sudden changes in the supply-demand balance or a sharp
drop in unit prices.

63) Fluctuations in raw material procurement
We work hard to secure stable supplies and maintain optimal price by procuring raw materials suchas printing paper and film from multiple suppliers in Japan and overseas. However, there is somepotential for temporary imbalances between supply and demand due to sharp fluctuations inpetroleum prices, sudden surges in demand from emerging markets, and the impact of majordisasters. We intend to cope with such instances by negotiating with our customers and business
partners. However, if it should become extremely difficult to secure supplies, or if purchasing prices
rise markedly, it is possible that DNP’s performance could be affected.
4) Development of new products and technologies and services
DNP uses its printing and information technologies to develop and provide to a broad range ofindustries products, technologies, and services that meet the needs of corporate customers andconsumers. In recent years, the pace of technological innovation in these areas has been
accelerating, and customers’ needs have been rapidly diversifying. We believe that in the future,competition in the area of product development will become more intense than ever before, and it ispossible that DNP’s performance could fluctuate significantly due to unforeseeable changes inmarket trends or a shortening of product life cycles.
5) Currency fluctuations
Particularly in fields such as Lifestyle and Industrial Supplies, and Electronics, we are expanding ourdealings in products and services with overseas customers. Because we expect the effects ofcurrency rates to gradually become more important, we use such means as foreign exchange
forward contracts to hedge the risks of currency fluctuations. Nevertheless, it is possible that radical
swings in currency values could have a more serious effect on DNP’s performance.
6) Legal regulations, etc.
We conduct our business based on strict compliance with the law and social ethics. Wherever we
operate, in Japan or overseas, we are subject to a wide variety of legal regulations and restrictions,
including laws related to product liability, monopoly prohibitions, the protection of personal
information, patents, taxes, imports and exports, etc. We can imagine that in the future such
regulations could become even more restrictive. Market and industry trends may change
substantially as a result of deregulation. If that should occur, it is possible that DNP’s businessperformance could be affected by limitations on its business activities, the burden of responding to
the changes, or increased costs.
7) Environmental protection and stricter regulations
DNP is affected by laws and regulations in Japan and other countries regarding energy conservation,
the use of harmful substances, the prevention of air pollution, water quality protection, waste
treatment, and product recycling. Such regulations may be strengthened because of the impact of
global climate trends. In addition, if soil is contaminated by harmful substances and the Company is
faced with the situation of being responsible for assessing and cleaning up the environmental
pollution, then the Company’s business could be substantially affected.

78) Information security and personal information protection
With computer networks and information systems playing an ever-greater role in keeping businessactivity going, the risks of information system malfunctions, breaches of personal information, andother events, owing to software and hardware problems and viruses, have risen. DNP regards theprotection of data and personal information as a top priority. It is doing all it can to protect andmaintain systems and data by strengthening its organization and training employees, but if problems
arise in these areas, then its business activity could be affected.
9) Disasters
We take steps to protect our production equipment and other major facilities from being damaged bydisasters such as fires or earthquakes. In addition, we divide our work among multiple production
bases and make every effort to prevent disasters from causing production stoppages or
disturbances in our ability to supply products. We also use various types of insurance to transfer risk.
Nevertheless, DNP’s performance could be substantially affected in the event of major earthquakes
or other natural disasters, terrorist attacks, disease outbreaks, or other unexpected events thatcause production stoppages or major damage or interference with social infrastructure.

8

2. Information on DNP
DNP includes 155 subsidiaries and 15 affiliated companies. Its two main businesses are Printing andBeverages. The former encompasses Information Communication, Lifestyle and Industrial Supplies,
and Electronics.
The businesses and segments of DNP are outlined below.
[PRINTING]
Information Communication
Production of textbooks, books, weekly/monthly/quarterly magazines, advertisements, stock andother securities certificates, business forms, and cards; manufacture/sale of business equipment
and systems; and planning/design/construction/management of stores and advertising media
Major companies
Production

OGUCHI BOOK BINDING & PRINTING CO., LTD.
DNP AV Center Co., Ltd., DNP SP Tech Co., Ltd.
DNP Graphica Co., Ltd., DNP Book Factory Co., Ltd.
DNP Digitalcom Co., Ltd., DNP Data Techno Co., Ltd.
DNP Data Techno Kansai Co., Ltd.
DNP Total Process Warabi Co., Ltd.
DNP Multi Print Co., Ltd., DNP Media Art Co., Ltd.
DNP Media Create Co., Ltd., DNP Media Support Co., Ltd.
DNP Media Techno Kansai Co., Ltd.

Production and sales

Tien Wah Press (Pte.) Ltd.

Sales and services

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD.
DNP Art Communications Co., Ltd., DNP Social Links Co., Ltd.
DNP DreamPages Co., Ltd., 2Dfacto, Inc., mobilebook.jp, Inc.
Maruzen Co., Ltd., MARUZEN PUBLISHING CO., LTD.
Maruzen Bookstores Co., Ltd., TRC, Inc.
Junkudo Co., Ltd., Yushodo Co., Ltd.
honto Book Services Co., Ltd., BUNKYODO Co., Ltd.
* BOOKOFF CORPORATION LIMITED, All About, Inc.,
Kyoiku Shuppan Co., Ltd., SHUFUNOTOMO Co., Ltd.

The shares of Maruzen CHI Holdings Co., Ltd. and BOOKOFFCORPORATION LIMITED are traded on the Tokyo Stock Exchange,
and the shares of INTELLIGENT WAVE INC., BUNKYODO GROUPHOLDINGS CO., LTD. and All About, Inc. are traded on the Osaka
Securities Exchange’s JASDAQ market.

9Lifestyle and Industrial Supplies
Manufacture/sale of containers and packaging products, packaging equipment and systems, interior
and exterior construction materials, photographic materials, and industrial supplies
Major companies
Production

Sagami Yoki Co., Ltd., DNP IMS Co., Ltd.
DNP Energy System Co., Ltd., DNP Ellio Co., Ltd.
DNP OptoMaterials Co., Ltd., DNP Lifestyle Materials Co., Ltd.
DNP Technopack Co., Ltd., DNP Technopack Kansai Co., Ltd.
DNP Technopack Tokai Co., Ltd.
DNP Technopack Yokohama Co., Ltd.
DNP Techno Polymer Co., Ltd.

Production and sales

Aseptic Systems Co., Ltd.
DNP Fine Chemicals Fukushima Co., Ltd.
DNP Hoso Co., Ltd., PT DNP Indonesia
DNP Electronics America, LLC, DNP IMS America Corporation
DNP Denmark A/S, DNP IMS Netherlands B.V.
DNP Plastic Molding (Shanghai) Co., Ltd.

Sales and services

DNP ID System Co., Ltd., DNP Lifestyle Materials Marketing Co., Ltd.
DNP Field Eyes Co., Ltd., DNP Photo Imaging Co., Ltd.
DNP Fotolusio Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP Photo Imaging Europe SAS

Electronics
Manufacture/sale of precision electronic components and other products
Major companies
Production

DNP LSI Design Co., Ltd., DNP Color Techno Sakai Co., Ltd.
DNP Signage Technology Co., Ltd., DNP Fine Electronics Co., Ltd.
DNP Precision Devices Co., Ltd.
DNP Precision Devices Himeji Co., Ltd.
DNP Micro Technica Co., Ltd.

Production and sales

DNP Color Techno Kameyama Co., Ltd., DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd., DNP Photomask Europe S.p.A.
DNP Photomask Technology Taiwan Co., Ltd.

Sales

DNP Taiwan Co., Ltd.

10

Other companies with multiple types of businesses
Production and sales

DNP Hokkaido Co., Ltd., DNP Tohoku Co., Ltd.
DNP Chubu Co., Ltd., DNP Shikoku Co., Ltd.
DNP Nishinippon Co., Ltd., DNP Fine Chemicals Co., Ltd.
D.N.K. Co., Ltd.
* DIC Graphics Corporation

Sales and services

DNP Logistics Co., Ltd., DNP Trading Co., Ltd.
DNP Accounting Services Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
DNP Corporation USA, DNP America, LLC
DNP Holding USA Corporation[BEVERAGES]
Beverages
Centered on Hokkaido Coca-Cola Bottling Co., Ltd.; manufacture/sale of soft drinks and juices
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies

11Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers
Information Communication

Lifestyle and Industrial Supplies(Production and sales)
Tien Wah Press (Pte.) Ltd.

Electronics(Production and sales)
PT DNP Indonesia
DNP Electronics America, LLC
DNP IMS America Corp.
DNP Denmark A/SDNP IMS Netherlands B.V.
DNP Plastic Molding (Shanghai) Co.,Ltd.

Beverages(Sales)DNP Taiwan Co., Ltd.

(Production and sales)
DNP Photomask Europe S.p.A.
DNP Photomask Technology Taiwan Co.,Ltd.

(Sales and service provision)
DNP Photo Imaging Europe SAS

Dai Nippon Printing Co., Ltd.

(Production)
OGUCHI BOOK BINDING &PRINTING CO., LTD.
DNP AV Center Co., Ltd.
DNP SP Tech Co., Ltd.
DNP Graphica Co., Ltd.
DNP Book Factory Co., Ltd.
DNP Digitalcom Co., Ltd.
DNP Data Techno Co., Ltd.
DNP Data Techno Kansai Co., Ltd.
DNP Total Process Warabi Co., Ltd.
DNP Multi Print Co., Ltd.
DNP Media Art Co., Ltd.
DNP Media Create Co., Ltd.
DNP Media Support Co., Ltd.
DNP Media Techno Kansai Co., Ltd.

(Sales and service provision, etc.)
Maruzen CHI Holdings Co., Ltd.
INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS
CO., LTD.
DNP Art Communications Co., Ltd.
DNP Social Links Co., Ltd.
DNP DreamPages Co., Ltd.
2Dfacto, Inc.
Mobilebook.jp, Inc.
Maruzen Co., Ltd.
MARUZEN PUBLISHING CO., LTD.
Maruzen Bookstores Co., Ltd.
TRC, Inc.
Junkudo Co., Ltd.
Yushodo Co., Ltd.
honto Book Services Co., Ltd.
BUNKYODO Co., Ltd.
BOOKOFF CORPORATION
LIMITED*All About, Inc.*
Kyoiku Shuppan Co., Ltd.*SHUFUNOTOMO Co., Ltd.*DNP Tohoku Co., Ltd.
DNP Shikoku Co., Ltd.

(Production)
Sagami Yoki Co., Ltd.
DNP IMS Co., Ltd.
DNP Energy System Co., Ltd.
DNP Ellio Co., Ltd.
DNP OptoMaterials Co., Ltd.
DNP Lifestyle Materials Co., Ltd.
DNP Technopack Co., Ltd.
DNP Technopack Kansai Co., Ltd.
DNP Technopack Tokai Co., Ltd.
DNP Technopack Yokohama Co.,Ltd.
DNP Techno Polymer Co., Ltd.

(Production and sales)
Aseptic Systems Co., Ltd.
DNP Fine Chemicals FukushimaCo., Ltd.
DNP Hoso Co., Ltd.

(Production)
DNP LSI Design Co., Ltd.
DNP Color Techno Sakai Co., Ltd.
DNP Signage Technology Co., Ltd.
DNP Fine Electronics Co., Ltd.
DNP Precision Devices Co., Ltd.
DNP Precision Devices Himeji Co.,Ltd.
DNP Micro Technica Co., Ltd.

(Production and sales)
DNP Color Techno Kameyama Co.,Ltd.
DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd.

(Sales and service provision, etc.)
DNP ID System Co., Ltd.
DNP Lifestyle Materials Marketing
Co., Ltd.
DNP Field Eyes Co., Ltd.
DNP Photo Imaging Co., Ltd.
DNP Fotolusio Co., Ltd.
LIFESCAPE MARKETINGCORPORATION(Production and sales)
DNP Fine Chemicals Co., Ltd.

D.N.K. Co., Ltd.

DIC Graphics Corporation*(Sales and service provision, etc.)
DNP Logistics Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Corporation USA

DNP Trading Co., Ltd.
DNP Human Services Co., Ltd.
DNP America, LLC

DNP Accounting Services Co., Ltd.
DNP Facility Services Co., Ltd.
DNP Holding USA Corp.

Printing businessNotes: *Hokkaido Coca-Cola Bottling Co., Ltd.
(Production and sales)(Production and sales)
DNP Hokkaido Co., Ltd.
DNP Chubu Co., Ltd.
DNP Nishinippon Co., Ltd.

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

12

Beverages
business3. Management policies(1) Core policies
DNP has been striving to contribute to society by providing new value-added products and services
through its business activities, based on a management concept of contributing to the sustainablegrowth of the society and the emergently evolving society of the 21st century. With a business visionof P&I Solutions (P&I stands for “Printing Technology” and “Information Technology”) to realize its
management concept, DNP will continue to solve the problems of corporate clients, consumers, andsociety by making the most of its strengths in printing and information technologies.
Additionally, to promote fair and appropriate corporate activity and fulfill its corporate social
responsibilities (CSR), DNP strictly complies with laws and social ethics based on the DNP Group
Code of Conduct and ensures proper business activities through an internal control system. The
Company strives to conduct business in good faith to earn the deep trust of its various stakeholders,
including shareholders, customers, consumers, and employees.
(2) Medium- and long-term management strategy and key issues
DNP aims to steadily expand over the medium- to long-term, based on its P&I Solutions businessvision.
Research and development are extremely important corporate activities for DNP, a company thathas expanded its fields of business by developing applications of printing and information
technologies. Especially important in these times of rapid change are “business-generating” types ofresearch and development that examine problems from consumers’ point of view and provide goodsolutions. In addition to developing innovative products, services and business models, DNP
carefully manages and makes use of the intellectual assets generated by its research.
At the same time, DNP attaches great importance to the social impact of its enterprises as wedevelop businesses based on the many problems and needs of people in Japan and other countries.
In April 2011 we inaugurated a Social Innovation Laboratory to promote socially relevant businesses
that address such issues as environmental preservation, energy, education, “super aging” society,and universal design.
Amid expectations for shrinkage in the Japanese market due to a falling birth rate combined withan aging population, a growing number of companies are expanding their overseas activities, andnational borders are becoming less and less relevant to markets. In light of trends like these, it isincreasingly important that we take a global approach to expanding our business. Almost half acentury has passed since DNP began its overseas expansion in 1964 with the establishment of arepresentative office in Hong Kong. Today we have 25 sales offices and 12 plants in 15 countries
and regions. In April 2012, we devised a Group-wide global strategy. In order to coordinate themanagement of business-related risks and legal compliance, as well as to coordinate between
business divisions so as to promote greater efficiency, we reorganized our existing Overseas
Business unit and established new global business coordination offices in our corporate
headquarters and in each region where we operate businesses. We also drafted business strategies
for each of our business segments from a global point of view, and constructed a unified production
and sales framework aimed at promoting production, sales and development in optimal locations
throughout the world. Going forward, we intend to work hard to solve the problems of corporateclients and consumers all over the world, by attaching great importance to maintaining a global
vantage point.

13

Initiatives in the different businesses and segments[PRINTING]
Information Communication
The Information Communication segment broadly addresses the optimal expression of informationand expansion into diverse media in accordance with the needs of corporate clients and consumers.
It provides wide-ranging solutions that are closely connected to clients’ business processes. Making
the most of its strengths, including a solid information security infrastructure based on thoroughinformation control systems, the Information Communication segment is building up businesses likea “hybrid” content distribution platform business that handles both paper and electronic media.
In the first half of the fiscal year ending March 31, 2013, the Books and Magazines subsegment
will merge its “honto” electronic book service with online bookstore “bk1” and physical bookstoresoperated by affiliates such as Maruzen, Junkudo, and Bunkyodo, and launch a “hybrid bookstore
network” service that sells both paper and electronic books.
Our Commercial Printing subsegment is promoting a “cross-media communications” business thatmakes use of a variety of media to provide information that consumers want at the times when theywant it. In addition to paper media, this business makes use of information platforms that arecompatible with digital signage and social media, and is working to increase orders for BPO(business process outsourcing) businesses that address the full range of corporate clients’ businessprocesses, including market research, project planning development, and content production as well
as data examination, input, editing, output and envelope stuffing, sealing, mailing, data center
operation, and back office operations.
Our Business Forms subsegment makes use of our information security infrastructure, which has
been certified as offering the highest level of information security, to offer unique security solutions
on a global basis. DNP is especially strong in smart cards, an area in which we control the largest
share of the Japanese market. We plan to tie up with telecommunications carriers, credit cardcompanies, and other relevant players to expand the various services we offer that make use ofinternational standards for Near Field Communication (NFC), which is expected to be a growing fieldin the future.
Lifestyle and Industrial Supplies
The Lifestyle and Industrial Supplies segment provides products and services that properly respondto corporate clients’ and consumers’ diverse needs, including environmental protection anduniversal design. In addition, the segment is developing unique, advanced products in new fields
where there are strong social needs, such as energy and life science.
In the Packaging subsegment, we aim to increase our share of the market for advanced products
like DNP’s Innovative Barrier (IB) film, which delivers outstanding impermeability to water vapor andoxygen, making it ideal for packaging products like foods, medicines, medical supplies andelectronic components. In the ASEAN market where rapid growth is expected, we intend to respondto strong overseas demand, mainly through PT DNP Indonesia but also by expanding our operating
locations in Thailand and Vietnam.
Our Lifestyle Materials subsegment works closely with manufacturers of household equipment
and decorative materials, addressing the entire building industry supply chain starting with the
project planning phase. In addition to high added value products that make use of technologies like
DNP’s unique EB coatings, this subsegment provides components for exterior use with exceptional
weatherability, and energy-saving interior components that boost illuminance by efficiently diffusing
light, etc.

14

The Industrial Supplies subsegment is concentrating on developing all types of optical films bymaking use of “clean converting technologies” that increase product quality through the applicationof coating, laminating, and other technologies. DNP’s dye-sublimation-type thermal transfer
recording media business is increasing its share of the market for photo prints by making the most of
its worldwide production and sales network. In our Energy Systems subsegment, we intend to boost
productivity and profitability by expanding production of soft packs used in lithium-ion rechargeable
batteries and photovoltaic cell components, primarily at the Tobata Plant where we began productionin April 2011 in Fukuoka Prefecture.
Electronics
Based on our world-class patterning, microfabrication, and other technologies, DNP’s Electronics
segment will continue to respond to rapidly changing markets and customer needs by developing
advanced products and relentlessly pursuing cost reductions. In addition, we will increase
competitiveness and profitability by promoting rapid business development through M&As andcorporate alliances.
Regarding our LCD color filter business, we will focus on small and medium-sized high-definition
products aimed at the markets for smart phones and tablets, where growth is expected. We will work
more closely than ever with our corporate clients in order to rapidly respond to changes in the market
for large-scale displays.
In our photomask business, we will respond appropriately to demand for miniaturization and will
strive to accommodate growing overseas demand, primarily through our plants in Agrate Brianza,
Italy and Taiwan. To prepare for the shift to the next generation of semiconductors, we are working
on the development of photolithography techniques using extreme ultraviolet (EUV) rays andnanoimprinting. In addition to moving ahead with the development of new products like metal vapor
deposition masks for organic EL displays, sensors for touch panels, and metal substrates for LEDs,
we will focus on developing new markets that have the potential to become mainstays for DNP’s
future profitability.

[BEVERAGES]
Beverages
The business environment surrounding the beverage industry is expected to remain harsh, withintensified competition over market share amid continued stagnation in consumption.
Given these conditions, we drew up a new medium-term management plan that proposes a vision
for the future in which our contribution to local Hokkaido communities, through Coca-Cola’s brandstrength and close working relationships between Hokkaido society and DNP’s Hokkaido-based
beverages operations, serves as a foundation for sustainable growth. Based on this plan, we will
pursue four strategies aimed at achieving sustained growth: “blazing a new trail,” “winning in themarketplace,” “offering new value,” and “implementing group-wide cost control.” As part of our quest
to be a business that is recognized and trusted by local communities, we aim to improve corporate
governance by strengthening and carefully implementing our internal control system. We also intend
to manage the Company’s environmental impact through our ISO14001:2004-compliant
Environmental Management System.

15

Strengthened organization
DNP aims to increase its overall group strength by further reinforcing cooperation among businessdivisions, and to offer wide-ranging solutions by engaging in more taiwa (exchange of viewpoints
and ideas that leads to identification and resolution of problems) with corporate clients andconsumers. In order to expand DNP’s business, we will cooperate with other companies that haveparticular strengths in addition to making the most of our own unique technologies. We have alreadyformed strategic alliances with other companies and implemented mergers and acquisitions in suchbusinesses as electronics, digital photos, and publications distribution. In the future, we will continue
to actively pursue such alliances both domestically and overseas.
At the same time, we are working to boost efficiency and thoroughly cut costs through businessprocess reviews and other means, and to establish a production framework infused with a strong
awareness of profitability. In April 2011, at the start of the fiscal year ended March 31, 2012, we
integrated DNP business units based in the Chubu region with DNP Tokai Co., Ltd., which handles
the region’s manufacturing, and established DNP Chubu Co., Ltd., thereby uniting the region’s
manufacturing and sales operations. In October 2011, we integrated four group companies that
handle prepress operations, which allowed us to improve productivity and efficiency in a variety ofways such as streamlining our plate-making business, standardizing work schedules, consolidating
redundant functions, and proactively sharing technologies and expertise. In addition to the“Production 21” Activities that we have been implementing since 2002, we strive to boost quality andcost competitiveness by focusing on overall optimization. In practice, this entails smoothing theworkflow between processes and between operating divisions at every step from order-taking todelivery, and constructing more efficient production systems from which we systematically eliminate
waste. As part of this push for greater efficiency, in the fiscal year ended March 31, 2012, weestablished a comprehensive production control center for the Information Communication segment
and a production control center for our Packaging subsegment. We also reallocated production
equipment nationwide so as to make maximum use of it in the most efficient locations.
In addition, we are moving ahead with the redevelopment of Tokyo’s Ichigaya district, in order tofurther promote our business vision of providing P&I Solutions. Currently the project planning andsales offices of various business units are scattered throughout the Tokyo Metropolitan area. We willconcentrate these in the Ichigaya district, together with DNP group headquarters functions. We arealso working on consolidating manufacturing sites by developing new businesses and reviewing ourframeworks for manufacturing and distribution. We began this redevelopment project in 2010, andaim to complete it in 2018. In January 2012, we completed construction of a new, five-story
multipurpose building that was designed to provide a positive working environment, for example bybringing natural light all the way into the third floor below ground. The building has a solar
panel-based power supply system and uses LED lighting. It makes use of many of DNP’s own
products and services, including decorative materials, entry/exit control systems, and digital signage.
We strengthened our cross-media solutions framework by concentrating prepress operations forBooks and Magazines and Commercial Printing in this new building, along with project planning
design teams.

16

Reinforcing Disaster Preparedness and DNP’s Business Continuity Plan (BCP)
Aiming for a “disaster-proof DNP Group,” we established the “DNP Group Basic Code for Disaster
Response” and we implement disaster prevention and preparedness measures on a daily basis inline with our disaster prevention plan. After the Tohoku – Pacific Ocean Earthquake, we reviewed ourbusiness continuity plan (BCP), reconsidered our overall product supply chain, enhanced distribution
and alternative production systems, and reconfigured our production bases in Japan and overseas
in order to minimize the potential impact that a disaster could have on our business. In addition, in
response to power shortages and price hikes, we will continue to carefully conserve energy andintroduce in-house power generation equipment.
Contributing to the Realization of a Sustainable Society
Because DNP views coexisting with the Earth’s environment as an important management task, we
aim to actively reduce energy usage and conserve resources. The DNP Group Code of Conduct
charges the Company with helping to build a sustainable society so that we can pass on the Earth’s
abundant blessings to the next generation. We will work harder than ever to minimize the burdenthat our business activities place on the environment, to promote effective use of resources, and todevelop environmentally friendly products.
DNP’s various environmental initiatives to build a sustainable society that coexists with natureinclude a proprietary environmental management system, global warming prevention, zero waste
emissions, biodiversity protection, thorough management of volatile organic solvent and chemical
substance, and green purchasing.
In the fiscal year ended March 31, 2012, we achieved significant reductions in CO2 output andenergy consumption at our new packaging plant, which we started up in Tanabe, Kyoto Prefecture,
in November 2011. Specifically, we introduced heat pump technology for making efficient use ofthermal energy and recycling equipment that allows us to collect and reuse volatile organic
compounds (VOCs). We also developed a system for reducing energy consumption in laser
lithography, one of the processes used on our semiconductor photomask production line. Thissystem garnered praise for enabling major reductions in energy usage, and was awarded a special
prize as part of the Energy Conservation Grand Prize for excellent energy conservation equipment
sponsored by the Energy Conservation Center, Japan’s award program for the fiscal year ended
March 31, 2012. In addition, we worked on reducing energy wastage by introducing monitoring
systems that track electric power usage in real time. In the summer of 2011, we reduced on-peakusage of electric power by an average of 20% relative to the previous year at 36 operating locations
within Tokyo Electric Power Co.’s operating area. In the future, we will continue our efforts toconserve energy resources, for example by using solar power and other renewable energy sources.

174. Consolidated financial statements(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2011
(As of March 31, 2011)

Year ended March 31, 2012
(As of March 31, 2012)

223,847
403,986
87,446
31,585
19,575
10,41521,081(6,994)790,942

217,518
385,101
91,91239,356
19,8508,691
24,228(3,703)782,956

531,440(318,455)
212,984918,201(744,352)
173,849
138,650
47,036
143,432(101,126)
42,306
614,827542,222(328,707)
213,514866,990(722,663)
144,326
142,149
35,410147,634(103,469)
44,165579,566

10,63322,304
2,953
35,891

9,975
25,211
2,818
38,005

130,793
1,990
37,196
48,139(11,250)
206,868
857,587

136,703
1,764
34,58040,372(6,034)
207,387
824,959

1,235
18
1,253
1,649,784

864
25
889
1,608,806

ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
Merchandise and finished products
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Business startup costs
Other
Total deferred assets
TOTAL ASSETS

18

(Million yen)
Year ended March 31, 2011
(As of March 31, 2011)

Year ended March 31, 2012
(As of March 31, 2012)

275,525
51,403
9,415
10,486
16,65084,286447,768

276,353
51,8095,648
8,598
15,01985,750443,179

153,520
14,802
15,4582,628
39,26023,904
249,574
697,343

153,060
19,147
18,177
1,963
33,22925,835
251,413694,593

114,464
144,898
760,452(94,113)925,702

114,464
144,898
723,459(94,172)888,649

832

4,370

(12)
(18,000)(14)(21,775)(17,180)(17,420)

16
43,902
952,440
1,649,784

16
42,967914,213
1,608,806

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

19

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividends income
Equity in earnings of affiliates
Subsidies
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes and minority
interests
Current income taxes
Deferred income taxes
Income and other taxes
Income (Loss) before minority interests
Minority interests in loss of consolidated
subsidiaries
Net income (loss)

20

Year ended
March 31, 2011
1,589,373
1,287,581
301,791
233,973
67,818Year ended
March 31, 2012
1,507,227
1,246,878
260,349
226,334
34,015

3,353
–
102
6,216
9,671

3,469
345
1,204
6,005
11,024

2,775
412
1,060
10,456
14,70462,786

3,424
–
1,109
3,661
8,195
36,843

3,334
696
385
4,416

2,213
78
87
2,379

4,238
1,685
430
8,152
14,506

5,067
25,013
1,147
5,322
36,55052,696

2,672

20,026
8,003
28,03024,666

17,2102,300
19,511(16,838)

(366)

(482)

25,032(16,356)

Consolidated statements of comprehensive income(Million yen)

Income (Loss) before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to ：Shareholders of parent company
Minority interests

21

Year ended
March 31, 2011
24,666

Year ended
March 31, 2012(16,838)(7,108)3,697(1)(5,023)(2)(4,194)(59)(1)(12,191)
12,474(501)(17,340)

13,302(827)(16,596)(744)

(3) Consolidated statements of changes in net assets(Million yen)

Year ended
March 31, 2011
Stockholders’ equity
Common stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Decrease by merger of consolidated andunconsolidated subsidiaries
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total stockholders’ equity
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Decrease by merger of consolidated andunconsolidated subsidiaries
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period

22Year ended
March 31, 2012

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

756,428

760,452(20,631)
25,032(20,628)(16,356)

(368)

–

(8)
4,024
760,452(8)(36,992)
723,459(94,016)(94,113)

(118)
21
(96)
(94,113)

(76)
16
(59)
(94,172)

921,774

925,702(20,631)
25,032(20,628)(16,356)

(368)

–

(118)
13
3,927
925,702(76)
8(37,052)
888,649

(Million yen)

Year ended
March 31, 2011
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Net deferred losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive
incomeBalance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Stock acquisition rights
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the beginning of current period
Changes of items during the period
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period

23

Year ended
March 31, 2012

8,059

832

(7,227)3,537(7,227)
832

3,537
4,370

(10)

(12)

(1)

(2)

(1)
(12)

(2)
(14)

(13,498)(18,000)(4,501)(3,775)(4,501)(18,000)(3,775)(21,775)(5,449)(17,180)(11,730)(240)(11,730)(17,180)(240)(17,420)

–

16

16

–

16
16

–
16

40,53843,902

3,363

(934)

3,363
43,902(934)
42,967

(Million yen)

Year ended
March 31, 2011
Total net assets
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Decrease by merger of consolidated andunconsolidated subsidiaries
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other thanstockholders’ equity
Total changes of items during the period
Balance at the end of current period

24Year ended
March 31, 2012

956,863

952,440(20,631)
25,032(20,628)(16,356)

(368)

–

(118)
13

(76)
8

(8,350)(1,174)(4,422)
952,440(38,227)
914,213

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

Year ended
March 31, 2011
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss
Increase (Decrease) of doubtful receivables, net
Increase (Decrease) of provision for retirement benefits,
net
Equity in (gains) losses of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gain on sales of investment securities
Net loss on devaluation of investment securities
Net loss on sales or disposal of fixed assets
Decrease in trade receivables
Increase in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchases of subsidiary stocks
Proceeds from purchase of newly consolidated
subsidiary stocks
Interest and dividends received
Other
Net cash used in investing activities

25

Year ended
March 31, 2012

52,696
97,977
1,685
1,145

2,672
95,82925,013(8,428)(4,177)(5,449)412
2,553(3,353)
2,775
(694)
436
903
48,851(7,135)(36,476)
4,782
162,383–(22,330)
140,053

(345)
3,335
(3,469)
3,424
(39)
1,149
2,888
18,726(11,758)
2,828
2,751
129,130(942)(19,585)
108,603

(171)

538

(89,846)(74,673)

7,058(2,155)
11,095–5,998(2,468)
277
(538)

908

–

3,501
(12,951)(82,561)

4,003(13,264)(80,126)

(Million yen)

Year ended
March 31, 2011
Cash flows from financing activities
Net increase (decrease) in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Payments for purchases of treasury stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting fromchange of scope of consolidation
Increase in cash and cash equivalents from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of year

26

Year ended
March 31, 2012

(12,447)
14,698(9,786)53,700
(306)
(118)
–
(2,660)(20,634)(459)(6,800)15,185677
7,025(6,259)1,188(2,603)(76)(0)(3,269)(20,628)(433)(8,453)(32,833)(2,458)(1,716)70,218
151,709(6,072)
222,056

–

295

128

–

222,056

216,279

(5) Notes on premise of a going concern
None(6) Basis of presenting consolidated financial statements
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 125
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd.
INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD.
DNP Color Techno Kameyama Co., Ltd.
DNP Nishinippon Co., Ltd.
DNP Fine Chemicals Co., Ltd.
DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 12
Major companies:
BOOKOFF CORPORATION LIMITED, All About, Inc.
Kyoiku Shuppan Co., Ltd., SHUFUNOTOMO Co., Ltd.
DIC Graphics Corporation
2) Changes in scope of consolidation and application of the equity method of accounting[Scope of consolidation]
Newly included:
4 DNP Media Support Co., Ltd. and three other companies
Excluded:
10 DNP Techtas Ichigaya Co., Ltd. and nine other companies[Application of equity method]
Newly included:
1
Excluded:1

All About, Inc.
mobilebook.jp, Inc. (changed to the consolidated subsidiary)3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 24 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 24 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, BUNKYODO GROUPHOLDINGS CO., LTD. and seven other companies have fiscal years that end on August 31, andmobilebook.jp, Inc.’s fiscal year ends on September 30. Consequently, financial statements basedon provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates and provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

274) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securitiesThose with market
prices available

Fair market value based on market prices as of the balance
sheet date
(The related valuation differences are directly included in net
assets and the sale prices computed by the moving-averagemethod.)Those without market
prices available

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

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

Merchandise

Mainly cost based on the specific identification method

Finished products, work inprogress

Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

Mainly cost based on the most recent purchase method(b) Depreciation and amortization of significant assets• Property, plant and equipment The Company and its domestic consolidated subsidiaries(except for lease assets)
use the declining balance method.
However, depreciation of machinery and equipment at theKurosaki Plant No. 1 (2nd-Stage plant), Plant No. 3, Sakai
Plant and Himeji Plant is computed by the straight-line
method.
Depreciation of buildings (excluding building fixtures)acquired after April 1, 1998, is computed by the straight-line
method.
Assets with an acquisition cost of at least ¥100,000 and lessthan ¥200,000 are depreciated mainly over three years by
the straight-line method. Foreign consolidated subsidiaries
mainly use the straight-line method.
• Intangible fixed assets(except for lease assets)

Mainly the straight-line method
Software used internally is amortized using the straight-line
method over the Company’s estimate of the useful life of theassets (not more than five years).

• Lease assets

Lease assets with no transfer of ownership
These lease assets are depreciated over the lease periodusing the straight-line method with no residual value.
Lease assets based on lease agreements that do not
involve a transfer of ownership to the lessee and with leasestart dates before the initial applicable fiscal year under the
Accounting Standard for Lease Transactions (AccountingStandards Board of Japan [ASBJ] Statement No. 13) areaccounted for based on the method for ordinary rental
transactions.

28

(c) Treatment of significant deferred assets
Some consolidated subsidiaries have capitalized business startup costs as deferred assets
and amortize them primarily over five years using the straight-line method.
(d) Basis for recording significant allowances• Allowance for doubtful
To cover possible losses on doubtful accounts, theaccounts
allowance for doubtful accounts is based on historicaldefault rates for normal accounts and on estimates of theamounts that may not be recoverable for specific overdue
accounts.
• Reserve for bonuses

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

• Provision for retirement
benefits

To cover future payments of employee retirement benefits,provisions for employees’ retirement benefits are based on
an amount incurred by the fiscal year-end based on
estimated retirement benefit liabilities and pension plan
assets at the end of the fiscal year.
Prior service costs are amortized using the straight-line
method over a certain number of years that is equal to orless than the average future service period of eligible
employees at the time the costs are incurred (generally six
years).
Actuarial gains/losses are amortized beginning in the fiscal
year in which the gains/losses are recognized and using thestraight-line method over a certain number of years that isequal to or less than the average future service period of
eligible employees at the time the actuarial gains/losses are
incurred (generally nine years).

(e) Accounting treatment of consumption taxes
National and local consumption taxes are excluded from transaction amounts.
(f) Amortization of goodwill and negative goodwill
Goodwill and negative goodwill incurred prior to March 31, 2010 are amortized using thestraight-line method for a period of not more than 20 years. In the current fiscal year,
straight-line amortization over five years is generally used.
Negative goodwill incurred from April 1, 2010 is charged to income in the fiscal year ofoccurrence.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows are short-term
investments with an original maturity of three months or less, are subject to insignificant risk ofchanges in value, and can be easily converted into cash and drawable funds as needed.
(7) Additional information
As a result of accounting changes and corrections of past errors since the start of the fiscal year
ended March 31, 2012, DNP is applying the “Accounting Standard for Accounting Changes andError Corrections” (ASBJ Statement No. 24, December 4, 2009) and the “Guidance on AccountingStandard for Accounting Changes and Error Corrections” (ASBJ Guidance No. 24, December 4,2009).

29

(8) Notes regarding consolidated financial statements[Consolidated balance sheets]

1. Guarantee obligation
2. Discounts on notes receivableYear ended
March 31, 2011
¥74 million¥704 million

Year ended
March 31, 2012
¥56 million¥704 million

Year ended
March 31, 2011
¥33,146 million

Year ended
March 31, 2012
¥31,690 million[Consolidated statements of income]

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

2. Impairment losses
In the current fiscal year, DNP recorded impairment losses for the following asset groups.
Location

PurposeHimeji, Hyogo Prefecture, etc.

Color filter production
equipment, etc.

Type
Machinery, buildings andstructures, construction inprogress, otherIn calculating impairment losses, DNP groups assets based mainly on the business groups thatserve as profit/loss units. It also considers impairment losses for each individual item for loaned
assets and idle assets.
As a result, DNP lowered the carrying amounts of asset groups with diminished profitability to theirrecoverable amounts, and recorded this decrease as an impairment loss (¥25,013 million) under
extraordinary losses.
Asset group breakdown: color filter production equipment (¥14,900 million) and other (¥10,113
million). Fixed asset category breakdown: machinery (¥8,583 million), buildings and structures(¥7,266 million), construction in progress (¥8,987 million), and other (¥175 million).
DNP determines recoverable amounts of idle assets based on net selling prices and other assets
based on value in use. However, because selling prices are difficult to calculate for idle assets, DNP
mainly lowers carrying amounts to their residual value. DNP calculates value in use mainly bydiscounting future cash flows by 10%.

30

[Consolidated statements of changes in net assets]
The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
1. Types and number of shares outstanding, type and number of treasury shares(Shares)

Outstanding shares

Stock type

Number ofshares at the
beginning of
the year
ended March
2011

Increase in
number ofshares during
the year
ended March
2011

Common stock

700,480,693

Decrease in
number ofshares during
the year
ended March
2011–

Number ofshares at theend of theyear ended
March 2011–

700,480,693

Treasury stock
Common stock
56,241,763
109,418
13,01856,338,163
Notes:
1. The increase of 109,418 treasury shares is due to the repurchase of odd-lot shares.
2.

The decrease of 13,018 treasury shares is due to the sale of odd-lot shares.

2. Stock acquisition rights and treasury stock acquisition rights
Number of shares (Shares)
Company name

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2011
(Million yen)

Stock
type

Beginning of
the year
ended March
2011

Increase

Decrease

End of theyear ended
March 2011

–

–

–

–

–

16

–

–

–

–

16

Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Total dividends

Dividend pershare (Yen)

Resolution

Stock type

General meeting ofshareholders on
June 29, 2010

Common stock

10,31616

March 31, 2010

June 30, 2010

Board of Directors’
meeting on
November 11, 2010

Common stock

10,31516

September 30,
2010

December 10,
2010(Million yen)

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

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2011

Commonstock

10,314

Source ofdividends
Retainedearnings

31

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2011

June 30,
2011

The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March2012

Outstanding shares

Common stock

700,480,693––

700,480,693

Treasury stock

Common stock

56,338,163

89,456

9,854

56,417,765

Notes:

1.
2.

Increase in
number ofshares during
the year
ended March2012

Decrease in
number ofshares during
the year
ended March
2012

Number ofshares at theend of theyear ended
March 2012

The increase of 89,456 treasury shares is due to the repurchase of odd-lot shares.
The decrease of 9,854 treasury shares is due to the sale of odd-lot shares.

2. Stock acquisition rights and treasury stock acquisition rights
Number of shares (Shares)
Company name

Consolidated
subsidiary

Breakdown

Balance atthe end of
the year
ended
March 2012
(Million yen)

Stock
type

Beginning of
the year
ended March
2012

Increase

Decrease

End of theyear ended
March 2012

–

–

–

–

–

16

–

–

–

–

16

Dividend
record date

Effective dateStockacquisitionrights as stock
optionTotal

3. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 29, 2011
Board of Directors’
meeting on
November 10, 2011

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Common stock

10,31416

March 31, 2011

June 30, 2011

Common stock

10,31316

September 30,
2011

December 9,
2011(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 28, 2012

Commonstock

10,313

Source ofdividends
Retainedearnings

32

Dividend
per share
(Yen)

16

Dividend
record date

Effective
date

March 31,2012

June 29,
2012

[Segment information, etc.]
Segment Information
1. Overview of the reporting segments
DNP’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
DNP bases its business divisions on the products and services provided and develops its
business activities based on a comprehensive domestic and overseas strategy for eachbusiness division. The four reporting segments are Information Communication, Lifestyle andIndustrial Supplies, Electronics, and Beverages.
Information Communication is involved in the production and sale of publications, commercial
printed matter, and business forms and in educational and publications distribution. Lifestyleand Industrial Supplies is involved in the production and sale of packaging materials, interior
and exterior construction materials, photographic materials, and industrial supplies.
Electronics is involved in the production and sale of precision electronic components and otherproducts. Beverages is involved in the production and sale of carbonated and non-carbonatedbeverages.
2. Method of calculating sales, income/loss, assets, and other items by reporting
segment
The accounting method used for reporting business segments is generally the same as statedin “Basis of presenting consolidated financial statements.”
Reporting segment income (loss) figures are based on operating income (loss).
Inter-segment sales and transfers are based on third-party transaction prices.

33

3. Information on sales, income/loss, assets, and other items by reporting segment
The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
Reporting segment
Adjustment(Million yen)Amounts
reported on
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

Outside customers
Inter-segment

715,5206,460

524,5287,185

286,285
963,0385

1,589,373
13,661–(13,661)

1,589,373–
1,589,373

Beverages

Total

Note 1

Net sales

Total

721,981

531,714286,295

63,043

1,603,034(13,661)

Segment income

18,14446,78912,222

1,249

78,406(10,588)

67,818Segment assets

610,456

518,258

387,889

44,376

1,560,982

88,801

1,649,784

24,036

26,07041,8783,350

95,335

2,642

97,977

1,407

1,293

160

0

2,861

–

2,861

225

–

1,441

18

1,685

–

1,685

20,93820,06756,497

3,471

100,975

1,196

102,172

Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Increase in property,
plant and equipment
and in intangible fixed
assets
Notes:

1.

2.

Figures are adjusted as follows.
(1) Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income is adjusted to reflect operating income as reported in the consolidated financial
statements.

The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
Reporting segment

Net sales
Outside customers
Inter-segment

Adjustment(Million yen)Amounts
reported on
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

708,5316,106

516,8176,024

224,809
1

57,0693

1,507,227
12,135–(12,135)

1,507,227–
1,507,227

Beverages

Total

Note 1

Total

714,637

522,842

224,81157,072

1,519,363(12,135)

Segment income (loss)

15,48831,839(4,647)1,334

44,014(9,999)34,015

Segment assets

620,615565,398

287,957

45,6601,519,631

89,174

1,608,806

24,041

25,53240,441

3,436

93,4502,378

95,829

1,586

1,672

167

0

3,426

–

3,426

234

–

24,773

4

25,013–25,01329,90539,52023,503

3,864

96,793

1,395

98,188Other items
Depreciation andamortization
Amortization of
goodwill
Impairment loss
Increase in property,
plant and equipment
and in intangible fixed
assets
Notes:

1.

2.

Figures are adjusted as follows.
(1) Segment income (loss) is adjusted for costs related to basic research not assignable to areporting segment or costs of research shared by different segments.
(2) Segment assets are adjusted for companywide assets not allocated to reporting segments.
(3) Increases in property, plant and equipment and in intangible fixed assets are adjusted forcapital expenditures for the head office building and other items.
Segment income (loss) is adjusted to reflect operating income as reported in the consolidated
financial statements.

34

Related information
The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,391,676
Notes:

1.
2.
3.

Asia

Other regions

134,734

Total

62,963

1,589,373

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
Taiwan, South Korea, China, Indonesia
Other:
United States, France, Germany, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2012 (April 1, 2011 – March 31, 2012)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,314,933
Notes:

1.
2.
3.

Asia

Other regions

133,477

Total

58,817

1,507,227

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

35

[Per share information]
Year ended March 31, 2011
(April 1, 2010 – March 31, 2011)

Year ended March 31, 2012
(April 1, 2011 – March 31, 2012)

Net assets per share¥1,410.44

Net income per share¥38.86

Diluted net income per share is not reported
because there are no potentially dilutive securities.

Net assets per share¥1,352.71

Net loss per share¥(25.39)

Diluted net income per share is not reported
because a net loss per share was recorded.

Note: Basis of calculations
1. Net assets per share
Year ended
March 31, 2011

Year ended
March 31, 2012

(As of March 31,
2011)(As of March 31,
2012)(Million yen)

952,440
43,918(16)(43,902)

Net assets at fiscal year-end pertaining to common
stock(Million yen)

908,521871,229

Number of common shares outstanding(Thousand shares)

Number of common treasury shares(Thousand shares)

700,480
56,338700,480
56,417

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

644,142644,062

Year ended
March 31, 2011
(April 1, 2010 –March 31, 2011)

Year ended
March 31, 2012
(April 1, 2011 –March 31, 2012)

25,032–25,032(16,356)–(16,356)

644,187

644,102

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

Of which, stock acquisition rights(Million yen)

Of which, minority interests

914,21342,984(16)(42,967)

2. Net income (loss) per share

Net income (loss)(Million yen)Amounts not attributable to common shareholders(Million yen)

Net income (loss) pertaining to common stock(Million yen)

Average number of common shares outstanding
during the fiscal year

(Thousand shares)[Significant subsequent events]
DNP concluded a basic agreement with Sharp Corporation and Toppan Printing Co., Ltd. on April 10,
2012, to integrate the Sakai Plant LCD color filter operations of DNP and DNP subsidiary, DNP Color
Techno Sakai Co., Ltd. into Sharp Corporation’s subsidiary, Sharp Display Products Corporation.
[Disclosure omission]
Disclosure of notes on such items as tax effect accounting, marketable securities, and retirement
benefits is omitted because such disclosure in the release of Financial Results is not considered to
be important.

36

5. Non-consolidated financial statements(1) Non-consolidated balance sheets(Million yen)

Year ended
March 31, 2011
(As of March 31, 2011)

Year ended
March 31, 2012
(As of March 31, 2012)

147,155
34,730286,401
5,874
12,3092,780
5,016
22,701(1,974)
514,995

145,540
34,836
264,358
4,915
14,8292,276
3,502
28,061(1,838)496,483

398,307(235,814)
162,493
31,877(23,740)
8,137
726,368(598,626)
127,742
1,115(1,004)110
47,471(39,677)
7,794
119,806
8,439(1,270)7,168
37,626
470,879

411,354(245,917)
165,436
32,344(24,503)
7,840
697,803(592,394)
105,409
1,169(1,050)119
48,586(40,764)
7,821
119,314
8,562(1,902)
6,659
31,142443,744

14,384
5,136
19,521

17,218
6,058
23,276111,201
130,486
24,64228,35031,752(17,615)
308,818
799,219
1,314,214

115,883
132,552
9,754
25,84334,196(15,800)
302,429
769,450
1,265,933

ASSETS
Current assets
Cash and time deposits
Notes receivable
Trade receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery
Accumulated depreciation
Machinery, net
VehiclesAccumulated depreciation
Vehicles, net
Equipment
Accumulated depreciation
Equipment, net
Land
Lease asset
Accumulated depreciation
Lease asset, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Investments in securities in affiliates
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

37

(Million yen)
Year ended
March 31, 2011
(As of March 31, 2011)

LIABILITIESCurrent liabilities
Notes payable
Trade payable
Lease obligations
Accounts payable - otherAccrued expenses
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Reserve for disaster losses
Notes payable for facilities
Other
Total current liabilities
Long-term liabilities
Bonds
Lease obligations
Asset retirement obligations
Long-term debt
Provision for retirement benefits
Reserve for environmental measures
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for loss on overseas investment
Reserve for special depreciation
Reserve for depreciation reduction of fixed
assetsOther reserve
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

38

Year ended
March 31, 2012
(As of March 31, 2012)

22,176
193,855771
38,94915,907
166,488
7,013
185
3,367
4,496
2,669
455,881

18,306
180,672
793
51,725
14,453
162,277
6,208
150
1,106
1,240
5,675
442,608

150,000
6,755
3,006
6,379
5,421
94
171,658
627,539150,000
6,199
3,068
6,343
6,865
73
172,549
615,158

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,300

0
7,492

–
6,335

46

44

432,780
57,029520,647(94,088)685,922432,780
19,047
481,506(94,148)646,721

763

4,061

(10)
752
686,674
1,314,214

(7)
4,053
650,775
1,265,933

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on liquidation of subsidiaries and affiliates
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on devaluation of investment securities
Loss on devaluation of securities in affiliates
Disaster losses and provision of reserve fordisaster
Other
Total extraordinary losses
Income (Loss) before income taxes
Current income taxes
Deferred income taxes
Income and other taxes
Net income (loss)

39

Year ended
March 31, 2011
1,076,434
951,872
124,561
110,191
14,370Year ended
March 31, 2012
972,638
871,886
100,752
105,431(4,678)782
10,19058,59469,567647
9,933
56,246
66,826

1,918
51,14153,05930,8772,366
49,021
51,388
10,760

32
599
1,667
7
2,306

496
68
1,751
3
2,319

3,337
–
414
188

3,688
20,097
976
2,030

3,992

386

1,087
9,020
24,163
220
6,824
7,044
17,1181,885
29,064(15,984)
220
2,299
2,519
(18,504)

(3) Non-consolidated statements of changes in net assets(Million yen)

Year ended
March 31, 2011
Stockholders’ equity
Common stock
Balance at the beginning of current period
Balance at the end of current period
Capital surplus
Capital reserve
Balance at the beginning of current period
Balance at the end of current period
Total capital surplus
Balance at the beginning of current period
Balance at the end of current period
Retained earnings
Legal reserve
Balance at the beginning of current period
Balance at the end of current period
Other retained earnings
Reserve for loss on overseas investment
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for loss on overseas
investment
Total changes of items during the period
Balance at the end of current period
Reserve for special depreciation
Balance at the beginning of current period
Changes of items during the period
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Total changes of items during the period
Balance at the end of current period
Reserve for depreciation reduction of fixed
assetsBalance at the beginning of current period
Changes of items during the period
Reversal of reserve for depreciation
reduction of fixed assets
Total changes of items during the period
Balance at the end of current period
Other reserve
Balance at the beginning of current period
Changes of items during the period
Reversal of other reserve
Total changes of items during the period
Balance at the end of current period

40

Year ended
March 31, 2012

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

144,898
144,898

144,898
144,898

23,30023,30023,30023,300

0

0

(0)

(0)

(0)
0

(0)
–

8,047

7,492

1,038
(1,593)
(555)
7,492

357
(1,514)(1,156)
6,335

52

46

(6)

(1)

(6)
46

(1)
44

432,780

432,780––
432,780––
432,780

(Million yen)

Year ended
March 31, 2011
Retained earnings brought forward
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for losses on overseas
investment
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Reversal of reserve for depreciation
reduction of fixed assets
Reversal of other reserve
Cash dividends paid
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the beginning of current period
Changes of items during the period
Reversal of reserve for losses on overseas
investment
Provision of reserve for special depreciation
Reversal of reserve for special depreciation
Reversal of reserve for depreciation reductionof fixed assets
Reversal of other reserve
Cash dividends paid
Net income (loss)
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total stockholders’ equity
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period

41

Year ended
March 31, 2012

59,98757,02900(1,038)
1,593

(357)
1,514

6

1

–
(20,631)
17,118(8)(2,958)57,029–(20,628)(18,504)(8)(37,982)
19,047524,168

520,647

–

–

–
–

–
–

–

–

–
(20,631)
17,118(8)(3,520)520,647–(20,628)(18,504)(8)(39,140)
481,506(93,992)(94,088)

(118)
21
(96)
(94,088)

(76)
16
(59)
(94,148)

689,539

685,922(20,631)
17,118(118)
13(3,617)685,922(20,628)(18,504)(76)8(39,200)
646,721

(Million yen)

Year ended
March 31, 2011
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Net deferred losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the beginning of current period
Changes of items during the period
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Cash dividends paid
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period

42

Year ended
March 31, 2012

8,007

763

(7,244)

3,298(7,244)
763

3,298
4,061

(7)

(10)

(2)

2

(2)
(10)

2
(7)

8,000

752

(7,247)3,301(7,247)
752

3,301
4,053

697,539

686,674(20,631)
17,118(118)
13(20,628)(18,504)(76)
8(7,247)

3,301(10,864)
686,674(35,899)
650,775

(4) Notes on premise of a going concern
None
6. Changes in directors and officers (as of June 28, 2012)
1) New director candidates (at the Ordinary General Meeting of Shareholders to be held on June
28)
Fujio Yamazaki
Managing Director(currently Senior Corporate Officer)
Managing Director

Tokuji Kanda(currently Corporate Officer)

2) Directors to be retired (at the end of the Ordinary General Meeting of Shareholders to be heldon June 28)
Executive Vice President Satoshi Saruwatari(to be assigned as Senior Advisor)
Managing Director

Yoshiaki Nagano(to be assigned as Advisor)

3) Corporate officers to be retired
Jun-ichi Tsuchiya
Corporate Officer(to be assigned as Director and Managing Corporate Officer of
DNP Trading Co., Ltd.)
Corporate Officer

Takashi Wada
(to be assigned as Director and Managing Corporate Officer of
DNP Fine Chemicals Co., Ltd.)

4) Corporate officers to be promoted
Senior Corporate Officer
Ryuji Minemura (currently Corporate Officer)
Senior Corporate Officer

Masato Koike (currently Corporate Officer)

Senior Corporate Officer

Masato Yamaguchi (currently Corporate Officer)

43