Consolidated Financial Results for the Fiscal Year Ended March 31, 2023 [J-GAAP]May 12, 2023

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/eng/
Representative:
Yoshinari Kitajima, President
Contact person:
Naoki Wakabayashi, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
General meeting of shareholders:June 29, 2023
Dividend payment date:June 30, 2023
Securities report issuing date:June 29, 2023
Preparation of earnings presentation material: Yes
Holding of earnings announcement:
Yes (for institutional investors and analysts)*Amounts under one million yen have been rounded down.

1. Consolidated financial results for the year ended March 31, 2023
(April 1, 2022 – March 31, 2023)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2023

1,373,209

2.2

61,233(8.3)

83,661

3.0

85,692(11.8)

Year ended March 31, 2022

1,344,147

0.7

66,78834.8

81,24935.6

97,182287.4

Note: Comprehensive income: Year ended March 31, 2023: ¥43,032 million (-58.5%)
Year ended March 31, 2022: ¥103,770 million (-30.0%)
DilutedNet Income
per Share

Net Income
per Share

Ordinary
Income toTotal Assets

ROE

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2023

321.32321.27

7.9

4.5

4.5

Year ended March 31, 2022

355.84355.79

9.1

4.4

5.0

Reference: Equity in earnings of affiliates: Year ended March 31, 2023: ¥13,603 million
Year ended March 31, 2022: ¥8,686 million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2023

1,830,384

1,148,245

59.4

4,158.46

As of March 31, 2022

1,876,647

1,148,413

58.2

4,057.98

Reference: Stockholders’ equity: As of March 31, 2023: ¥1,087,504 million

As of March 31, 2022: ¥1,091,861 million

(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents
at End of the Year

Million yen

Million yen

Million yen

Million yen

Year ended March 31, 2023

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

258,329

Year ended March 31, 2022

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

293,361

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

Year-end

AnnualTotal Dividends(Annual)Dividend
Payout Ratio(Consolidated)

Dividends to
Net Assets
Ratio(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen%%

Year ended March 31, 2022

–

32.00

–

32.00

64.00

17,26518.0

1.6

Year ended March 31, 2023

–

32.00

–

32.00

64.00

16,90319.9

1.6

Year ending March 31,
2024 (Forecast)

–

32.00

–

32.00

64.00

25.4

3. Consolidated earnings forecasts for the year ending March 31, 2024
(April 1, 2023 – March 31, 2024)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income
Ordinary Income
Parent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,410,000

2.7

67,0009.4

78,000(6.8)

66,000(23.0)

252.37At the Board of Directors meeting held on March 9, 2023, the Company resolved to acquire treasury stock.
The calculation of “net income per share” in the consolidated earnings forecast does not take into consideration theimpact of the acquisition of treasury stock after April 1, 2023 based on this resolution.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting ina change in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: No
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
Yes
4) Restatement of revisions:No
Note: For more information, see the section titled, “5. Consolidated financial statements and key notes (5) Notes
regarding consolidated financial statements [Changes in accounting estimates],” on page 30.

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

As of March 31,
2023

292,240,346 As of March 31,
shares2022

317,240,346
shares

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

30,724,570 As of March 31,
shares2022
266,691,731
Year ended
shares March 31, 2022

48,175,114
shares273,105,088
shares(Reference) Non-consolidated financial results
Non-consolidated financial results for the year ended March 31, 2023
(April 1, 2022 – March 31, 2023)(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Operating
Ordinary Income
Net Income
Income (Loss)

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2023

928,084

(0.7)

(810)

–

56,813(8.4)

81,653(6.2)

Year ended March 31, 2022

934,186

1.0

6,693

–

61,999123.7

87,029588.3

Net Income
per Share

Diluted Net Income
per Share
Yen

Yen

Year ended March 31, 2023

306.16–

Year ended March 31, 2022

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

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2023

1,339,813

661,65349.4

2,529.96

As of March 31, 2022

1,420,458

676,89047.7

2,515.61

Reference: Stockholders’ equity: As of March 31, 2023: ¥661,653 million As of March 31, 2022: ¥676,890 million* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about economic
conditions, market trends, and other factors at the time the report was published. Actual results may differ significantly
due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Overview of operating results, etc., (4) Forecasts,”
on pages 5-7.
DNP will hold a briefing (conference call) for institutional investors and analysts regarding its financial results on May
17, 2023. Materials used at the briefing will be uploaded to the DNP website at around 14:00 JST the same day.

Contents
1. Overview of operating results, etc........................................................................................................... 2(1) Overview of operating results for the year ended March 31, 2023 ................................................... 2(2) Overview of financial position for the year ended March 31, 2023 ................................................... 4(3) Overview of cash flows for the year ended March 31, 2023 ............................................................. 5(4) Forecasts ........................................................................................................................................... 5(5) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2023
and year ending March 31, 2024 ...................................................................................................... 8
2. Information on the DNP Group ............................................................................................................... 93. Management policies ............................................................................................................................ 13(1) Core policies .................................................................................................................................... 13(2) New Medium-term Management Plan ............................................................................................. 13
4. Basic approach to selecting accounting standards............................................................................... 17
5. Consolidated financial statements and key notes................................................................................. 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 regarding consolidated financial statements ........................................................................ 27[Notes on premise of a going concern] ........................................................................................... 27[Basis of presenting consolidated financial statements] ................................................................. 27[Changes in accounting estimates]................................................................................................. 30[Consolidated balance sheets] ....................................................................................................... 31[Consolidated statements of income] ............................................................................................. 31[Consolidated statements of changes in net assets] ...................................................................... 32[Segment information, etc.] ............................................................................................................. 34[Per share information] ................................................................................................................... 38[Significant subsequent events] ...................................................................................................... 38
6. Non-consolidated financial statements and key notes ......................................................................... 39(1) Non-consolidated balance sheets ................................................................................................... 39(2) Non-consolidated statements of income ......................................................................................... 41(3) Non-consolidated statements of changes in net assets.................................................................. 42(4) Notes regarding non-consolidated financial statements ................................................................. 43[Notes on premise of a going concern] ........................................................................................... 43-1-

1. Overview of operating results, etc.
(1) Overview of operating results for the year ended March 31, 2023
Business conditions surrounding the DNP Group during the fiscal year ended March 2023 weremarked by gradual progress in efforts to change people’s working styles and lifestyles, in addition torecovery from the effects of the COVID-19 pandemic on social and economic activities. Domestically,in particular, there were signs of gradual economic recovery with increasing demand for inboundtourism, especially since travel restrictions were eased after the start of 2023.
On the other hand, factors like geopolitical risks and decreased stability in global supply chainscontinued to push up prices of raw materials and energy, and logistics costs. The businessenvironment in Japan and elsewhere has become more severe, with economic slowdowns being
seen in many regions overseas due to inflation and monetary tightening.
Amid these conditions, the DNP Group strongly promoted initiatives aimed at realizing a better,more sustainable society and enabling more comfortable lifestyles. In line with DNP’s “P&I
Innovation” business vision that combines DNP’s unique strengths in “P&I” (printing and information),
we deepened cooperation with our many partners and strove to create new value that solves social
issues and meets people’s expectations.
In the fiscal year through March 2023, we designated four “focus businesses” where we anticipate
strong market growth and high profitability: the Internet of Things (IoT)/next-generation
communications, data distribution, mobility, and environment. We focused and optimized
management resource allocation in these areas, including both financial capital and non-financial
capital such as human resources and intellectual properties. Doing so led to many positive results.
Regarding IoT/next-generation communication, DNP developed a film-type antenna that supports
the Sub6 waveband of fifth-generation mobile communication systems (5G) with its excellent design,
weather resistance, and flexibility. By combining DNP’s proprietary technologies with othertechnologies, we intend to build a coherent production system handling everything from patterndesign to processing, and to promote rapid commercialization.
Concerning data distribution, in October 2022 we began providing a face authentication systemthat uses photo data from facial photos taken with DNP’s Ki-Re-i ID photo machines. The system
offers contactless control of room entry and exit while simultaneously measuring body temperature,making it possible to reduce security risks and prevent infections with a single device. In Decemberof the same year, we formed a business tie-up with The Yomiuri Shimbun Tokyo Headquarters and
SMN Corporation. By compiling behavioral data related to consumers that come into contact withnewspapers, magazines, and television shows owned by each company, we began offering “MediaX,” a platform for distributing advertisements more effectively.
In the mobility sector, the DNP Group worked to develop products and services for a society thatwill use next-generation transportation, which demands reduced environmental impact, higher
energy efficiency, greater information security, and high degrees of safety and comfort. In order toimprove the efficiency of delivery management, etc. as part of this effort, in February 2023, we used
Mobility as a Service (MaaS) in the Republic of the Philippines to demonstrate the viability of a “lastmile logistics” business that delivers goods from final logistics bases into consumers’ hands.
To protect the environment, in October 2022, we combined DNP’s diverse technologies andexpertise to launch a cross-departmental environmentally conscious design team called DNPGREEN PARTNER whose mission is to help solve corporations’ environmental issues. Aiming forlong-term coexistence between a healthy environment and business, we intend to provide
companies with services aimed at resolving various related issues.
In addition to these “focus businesses,” the entire group has been working on structural reforms
aimed at boosting DNP’s competitiveness, and has promoted the construction of a stronger-2-

business portfolio. In order to strengthen our business base so that it can support long-term growth,
we have accelerated the promotion of digital transformation (DX) aimed at productivity
improvements, the upgrading of our information infrastructure, and initiatives related to theenvironment, human resources, and human rights.
The DNP Group will continue to respond not just to changes in the environment, society, andeconomy, but also to take the lead in initiating various changes in order to create a better future.
As a result of the above, consolidated net sales for the year ended March 31, 2023 increased 2.2%
year on year to ¥1,373.2 billion, consolidated operating income fell 8.3% to ¥61.2 billion, andconsolidated ordinary income grew by 3.0% to ¥83.6 billion. Net income attributable to parent
company shareholders fell 11.8% over the previous year to ¥85.6 billion. ROE, which the DNPGroup has adopted as a profitability indicator, was 7.9%.
Business segment results for the year ended March 31, 2023 are presented below.
[PRINTING]
Information Communication
In Information Innovation, there was a decline in demand for paper media such as point-of-purchase(POP sales promotion tools), commercial printing, and business forms. However, overall segment
sales rose thanks to increases in smart cards for financial institutions and My Number (Japanesecitizen ID) cards, and business process outsourcing (BPO) projects related to governmental
economic support measures.
In the Imaging Communications business, there was brisk demand for materials and services
related to taking and printing photographs in the European and Asian markets in addition to the main
US market, resulting in increased sales.
In Publishing, on top of shrinkage in printing orders due to contraction of the market for magazinesand other paper media, there was also a decline in sales from DNP’s “honto” hybrid bookstore
network, which handles both paper and electronic media, in comparison with the previous term’shigh stay-at-home demand. Total sector sales dropped.
As a result of the above, overall segment sales increased by 3.0% year on year, to ¥720.2 billion.
Despite increased sales from focus businesses and a tailwind from changes in currency markets,
operating income declined by 3.2% from the previous term to ¥26.7 billion, due to lower sales from
Publishing and higher costs of raw materials, energy, and logistics.
Lifestyle and Industrial Supplies
Our Packaging business bolstered efforts to design products that enrich people’s lives by leveraging
the strengths that we have acquired through more than 70 years of developing packaging for
products are an integral part of consumers’ lives, such as foods and household necessities. In
response to a growing awareness of environmental concerns, we also worked at developing andselling DNP GREEN PACKAGING. As a result, although the number of film packaging products that
we sold was little changed from the previous year, thanks to progress in passing on cost increases tocustomers, and to increased sales of formed plastic products, overall Packaging sales increased.
The Living Spaces business was affected by a decline in new housing starts in Japan and theresulting decrease in sales of interior and exterior materials for housing. Export sales also sagged,
especially in the European and North American markets, as inflation stifled economic activity.
However, because we worked at passing on cost increases to customers, sales ended on par withthe previous year.
In the High-Performance Industrial Supplies business, demand for products like smartphones and-3-notebook PCs remained sluggish against the backdrop of international inflation, and sales of battery
pouches for lithium-ion batteries used in IT applications decreased. However, sales of battery
pouches for automotive use picked up along with a recovery in automobile production, and sales of
encapsulants for solar cells also increased due to expanding global demand. Overall sales weresimilar to the previous year’s level.
As a result, overall segment sales amounted to ¥400.2 billion, up 3.4% from a year earlier.
Because of a time lag in passing on increased costs of raw material and energy, etc., as well as
sluggish growth in highly profitable focus businesses, operating income declined by 45.8% from ayear earlier, to ¥7.3 billion.
Electronics
The Display Components business enjoyed solid demand for metal masks used in the production oforganic light-emitting diode (OLED) displays, as these displays are increasingly used forsmartphones. On the other hand, sales of optical films decreased relative to the previous year’s
surge in COVID-related stay-at-home demand in Japan, along with the impact of inventory
adjustments throughout the supply chain due to a worldwide slump in consumption. Overall sales
from this business decreased.
The Electronic Devices business was affected by a slowdown in expansion of the semiconductor
market, leading to a decline in sales of lead frames and other semiconductor package components
in the latter half of the fiscal year due to the impact of inventory adjustments by some clientcompanies. Nevertheless, sales for the whole year grew relative to the previous term. In addition,
there was strong demand for semiconductor photomasks needed for product development by ourclient companies, resulting in an overall increase in sales of Electronic Devices.
As a result of the above, overall segment sales fell 3.6% year on year to ¥203.5 billion. Operating
income grew 1.0% from a year earlier to ¥46.9 billion, due to growth in businesses like metal masks
and photomasks, and also thanks to help from favorable exchange rates.
[BEVERAGES]
Beverages
In response to rising raw material prices and logistics costs, we revised our prices for large PET
plastic bottle products and small packaging products. In addition, we focused on initiatives like bulk
selling plans that respond to consumers’ desire to save money amid soaring prices, and thedevelopment of eco-friendly, label-free products amid growing awareness of the United Nations
Sustainable Development Goals.
As a result, segment sales increased by 3.8% over the previous year to ¥51.6 billion, thanks to arecovery in convenience store sales on top of increased sales to restaurants and online. Despite
efforts to revise prices and reduce costs, operating income declined by 12.9% year on year to ¥0.6
billion, mainly due to the impact of sharply higher raw material and energy costs.
(2) Overview of financial position for the year ended March 31, 2023
Total assets (assets, liabilities and net assets) at the end of the fiscal year had decreased by 46.2
billion yen from the end of the previous fiscal year to ¥1,830.3 billion due to factors including adecrease in investment securities.
Total liabilities decreased by ¥46.0 billion from the end of the previous fiscal year to ¥682.1 billion
due mainly to decreases in repair reserves and deferred tax liabilities.
Net assets declined by ¥0.1 billion from the end of the previous fiscal year to ¥1,148.2 billion, due
to factors including increased net income, the purchase of treasury stock, payment of dividends fromsurplus, and a decrease in the valuation difference on available-for-sale securities.

-4-(3) Overview of cash flows for the year ended March 31, 2023
Cash and cash equivalents at the end of the current fiscal year decreased by ¥35.0 billion from theend of the previous fiscal year to ¥258.3 billion.
Cash flow provided by operating activities totaled ¥37.9 billion (¥82.0 billion in the previous fiscal
year), due mainly to ¥119.7 billion in income before income taxes and non-controlling interests and¥51.7 billion in depreciation.
Cash flow used in investing activities totaled ¥25.0 billion (¥39.2 billion in the previous fiscal year),due mainly to a ¥50.3 billion in payments for purchases of property, plant and equipment.
Cash flow used in financing activities totaled ¥52.4 billion (¥57.7 billion in the previous fiscal year),due mainly to ¥25.8 billion in payments for purchase of treasury stock and ¥17.1 billion in dividends
paid.
The trends in the DNP Group’s cash flow indicators are shown below.
Year ended
March 2019Year ended
March 2020

Year ended
March 2021

Year ended
March 2022

Year ended
March 2023

Equity ratio (%)

56.1

53.2

57.2

58.2

59.4

Market value-based
equity ratio (%)

45.0

37.5

35.7

41.3

52.9

Debt-to-cash flow ratio(year)

2.4

2.3

2.6

1.9

3.9

Interest coverage ratio(times)

33.4

59.8

42.6

111.7

54.4

Notes:***

Equity ratio: Total stockholders’ equity / Total assets
Market value-based equity ratio: Market capitalization / Total assets
Debt-to-cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow / Interest paid
The above indicators are calculated based on consolidated financial figures.
Market capitalization is calculated as: Fiscal year-end share price  fiscal year-end number of shares
outstanding (excluding treasury stock)
Cash flow: Cash flow provided by/used in operating activities on the consolidated statements of cash flows
Interest-bearing debt: All liabilities on the consolidated balance sheet that accrue interest charges
Interest paid: Interest paid on the consolidated statements of cash flows(4) Forecasts
In the near term, the business environment is expected to benefit from further recovery in economic
activity and expansion of inbound travel demand due to the easing of restrictions aimed at stopping
the spread of COVID-19. On the other hand, there are concerns about soaring food and energy
prices around the world, and fears of global recession in light of monetary tightening in Europe andthe United States.
In order to create a better future for itself amid these circumstances, the DNP Group will a take along-term view as it promotes its Medium-term Management Plan. As part of this effort, in order tofurther clarify our business areas and their strategies and in order to accelerate the implementationof specific measures, we will change the names of some of our segments as of the fiscal year
through March 2024. The Information Communication segment will be called “Smart
Communication,” and Lifestyle and Industrial Supplies will become “Life & Healthcare.” At the sametime, in order to further contribute to making people’s lives more comfortable, the closely related
Beverages segment will be transferred to Life & Healthcare, and the Beverages segment will bedissolved.

-5-

Taking into account these changes, our consolidated earnings forecast for the fiscal year ending
March 31, 2024 is as follows.
(Consolidated earnings forecasts)(Million yen)

Fiscal year ending March 31, 2024
Year-on-year change
1,410,000
2.7%
67,0009.4%
78,000(6.8)%Net Sales
Operating Income
Ordinary Income
Net Income Attributable toParent Company Shareholders

66,000(23.0)%(Earnings forecasts by new segment)(Million yen)

Fiscal year ending March 31, 2024
Net Sales
Operating Income
Year-on-yearchangeSmart Communication
Life & Healthcare
Electronics
Total
Adjustment
Total

721,000
495,000
197,000
1,413,000(3000)
1,410,000

0.1%
9.7%
(3.2)%
2.7%–
2.7%

Year-on-yearchange28,00018,00042,00088,000(21,000)
67,0004.7%
125.5%(10.5)%
7.8%
–
9.4%

< Initiatives for each segment >Smart Communication
Concerning information security, we will strive to expand our BPO business against a backdrop of
demand from companies and organizations that want to streamline operations, reduce labor costs,
and boost cost competitiveness. In April 2023, we will consolidate BPO-related organizations andhuman resources to establish DNP CoArise Co., Ltd., which will develop and provide one-stop
services with greater added value. In addition, we will leverage the unique strengths that DNP has
cultivated as Japan’s top provider of smart cards in order to safely and reliably provide theauthentication services and diverse payment methods that are essential to a global informationsociety.
Regarding content and XR (eXtended Reality) communication, we will continue to realize
next-generation communication by building and operating metaverses such as PARALLEL CITY,
which fuses real and virtual spaces to enhance the experience value enjoyed by consumers
regardless of time or place.
In the fields of publishing and education, the DNP Group will promote its “honto” hybrid bookstore
network, which links bookstores, online shopping, and e-book sales, as well as its digital library andeducational information and communications technology (ICT) businesses. Also, our Publishingbusiness will continue to work on structural reforms including reviewing production systems andreallocating resources in response to the continued decline in demand for printed media.

-6-

Life & Healthcare
The DNP Group already holds the top share of the world market for battery pouches for lithium-ion
batteries, and aims to increase its capacity for producing pouches for automotive batteries in orderto respond to greater uptake of electric vehicles. We will focus on expanding mobility andhigh-performance industrial materials, and work toward rapid commercialization of products andservices connected to safe and comfortable next-generation mobility.
The medical and healthcare businesses are new for DNP. Through collaboration with external
partners, we intend to accelerate growth in the production of active pharmaceutical ingredients, drug
formulation, formulation changes, medicine package manufacturing, and other pharmaceuticalsupport businesses, as well as smart healthcare businesses like diagnostic imaging and online
diagnostics.
In addition, we intend to focus on developing and providing a wide range of high-value-added
products, including living space-related products with enhanced functionalities like bacteria or virus
resistance, superior design, and weather resistance; all types of packaging products that enhancepeople’s lifestyles by protecting package contents by more effectively shutting out oxygen and water
vapor while also being easy on the environment, and materials like encapsulants that contribute toimproving the performance of solar cells. At the same time, we will accelerate our shift frombusinesses with low market growth potential, low appeal, and low profitability to highly profitablebusinesses, and we will reorganize business bases and optimize resources to increase the DNPGroup’s profitability.
Electronics
In addition to developing industry-leading products that leverage DNP’s core values, DNP also
actively collaborates with external partners in order to expand its business.
Regarding digital interfaces, the DNP Group has responded to the increasing adoption of organic
light-emitting diode (OLED) displays in smartphones, tablets and laptop computers, etc. bybecoming the world’s top investor in equipment for making metal masks used in the manufacture of
OLED displays, allowing DNP to achieve stable growth in this area. In optical films as well, the DNPGroup has secured leading global shares of products such as anti-reflection surface films. The
Group is taking advantage of its ultra-wide production lines to increase sales volume and expand
market share in response to the market trend toward larger television displays.
Demand for semiconductors is expected to grow in the medium and long terms due to such trends
as expansion of the cloud environment and data centers. In addition to proactively investing in thedevelopment of photomasks, lead frames, and other products for the semiconductor market, and in
facilities for producing them, the DNP Group will form alliances with external partners to increase thevalue that it brings to the overall semiconductor supply chain.
In these three new business segments, the DNP Group will work to realize a better future by
combining its unique strengths and strengthening cooperation with partners. Driven by technologicalinnovations like XR, metaverses, and the development of autonomous driving, we see business
opportunities in the solution of social issues related to topics such as information security, aging
populations, environment and energy. We intend to develop new value that connects the real withthe virtual, the analog with the digital, and manufacturing with services, and to provide that newvalue to consumers in Japan and around the world.

-7-

(5) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2023 and year ending March 31, 2024
The DNP Group positions as one of its key management policies its goal of achieving long-term
growth and steadily returning profits to shareholders by meeting the expectations of shareholders
and other stakeholders, realizing a better and more sustainable society and enriching people’s lives.
Our basic policy is to distribute profits to shareholders in a stable and continuous manner. Basedon a medium- to long-term management perspective, we seek to maintain the stability of our
financial base, balance investments in growth businesses with the return of profits to investors, andimplement payments based on comprehensive consideration of such factors as businessperformance and dividend payout ratio.
The DNP Group also intends to secure an appropriate level of retained earnings and strengthen
its business base in preparation for future business development. It invests retained earnings in thedevelopment of new products, new services, and new technologies, in capital investment for new
business development, strategic alliances and M&As, and human resources that support thesevarious endeavors. At the same time, the Group keeps an eye on its capital requirements andmarket trends, and acquires treasury stock in an appropriate and timely manner with the aim of
returning profits to shareholders and optimizing capitalization.
We believe that these policies will contribute to increasing profits, which can then be returned toshareholders in the future.
Based on this policy, the DNP Group will pay a year-end dividend of ¥32 per share. Together with
the interim dividend of ¥32 per share, it plans to pay a full-year dividend of ¥64 per share. As a result,the consolidated dividend payout ratio for the fiscal year through March 2023 will be 19.9%.
For the fiscal year ending March 31, 2024, the DNP Group forecasts payment of an interim
dividend of ¥32 and a year-end dividend of ¥32, resulting in an annual dividend of ¥64.

-8-

2. Information on the DNP GroupThe DNP Group includes the Company, 141 subsidiaries, and 23 affiliated companies. Its two main
businesses are Printing and Beverages. The former encompasses Information Communication,
Lifestyle and Industrial Supplies, and Electronics.
The businesses and segments of the DNP Group are broadly outlined below. The four businesssegments cited below are the same as the reporting segment categories.
[PRINTING]
Information Communication
Books including standard books, dictionaries, commemorative and memorial editions, all types ofmagazines including weekly, monthly and quarterly, corporate PR magazines, textbooks, e-books
Digital marketing support, from sales promotions to customer analysis
BPR consulting and BPO services related to corporate business processes and sales processes
Contact center business, IPS, smart cards, payment-related services, card-related equipment
Authentication and security services and related products, IC tags, holograms, business forms
Catalogs, leaflets, brochures, calendars, point-of-purchase (POP) materials, digital (electronic)
signage
Planning/development/production/construction/operations related to events/stores/products/
contents, etc.
Dye-sublimation thermal transfer materials, (color ink ribbons and receiver paper), thermal
resin-type transfer printing media (monochrome ink ribbons)
ID photo business, portrait photograph and ID solutions, entertainment and amusement solutions
E-book distribution and sales, book sales, library management, etc.
Major companies
Production

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

Production and sales

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

Sales and services

Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE INC.
CYBER KNOWLEDGE ACADEMY Co., Ltd.
DNP ID System Co., Ltd., DNP Art Communications Co., Ltd.
DNP CoArise Co., Ltd., DNP Digital Solutions Co., Ltd.
DNP HyperTech Co., Ltd., DNP Photo Imaging Japan Co., Ltd.
DNP PLANNING NETWORK Co., Ltd., DNP hollyhock Co., Ltd.
2Dfacto, Inc., DNP Metro Systems Co., Ltd., MobileBook.jp Inc.
MARUZEN-YUSHODO Co., Ltd., MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co., Ltd.
Toshokan Ryutsu Center Co., Ltd.
MARUZEN Research Services Co., Ltd.
Colorvision International, Inc., DNP Photo Imaging Europe SAS
DNP Photo Imaging Russia, LLC, Sharingbox SA* BIPROGY Inc., BOOKOFF GROUP HOLDINGS LIMITED-9-

Kyoiku Shuppan Co., Ltd.
The shares of Maruzen CHI Holdings Co., Ltd., INTELLIGENT WAVE
INC., BIPROGY Inc. and BOOKOFF GROUP HOLDINGS LIMITED
are traded on the Tokyo Stock Exchange.
Lifestyle and Industrial Supplies
Various types of packaging materials for products such as foods, beverages, snacks, household
items and medical supplies; cups, plastic bottles, laminated tubes, molded plastic containers,
aseptic filling systems
Interior and exterior materials for homes, stores, offices, vehicles, home appliances, and furniture,etc; molded plastic parts for automobiles, metallic veneers
Battery pouch for lithium-ion batteries, photovoltaic module components, materials for transporting
electronic components, multifunctional insulation box, etc.
Major companies
Production

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

Production and sales

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

Sales and services

DNP Lifestyle Materials Marketing Co., Ltd.
Lifescape Marketing Co., Ltd.
DNP-SIG Combibloc Co., Ltd.

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

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

Production and sales

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

Sales

DNP Taiwan Co., Ltd.

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

DNP Logistics Co., Ltd., DNP Trading Co., Ltd.

-10-

DNP Accounting Services Co., Ltd.
DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
Sanshi Industries Co., Ltd., DNP Hokkaido Co., Ltd.
DNP Tohoku Co., Ltd., DNP Chubu Co., Ltd.
DNP Nishi Nippon Co., Ltd.
DNP Asia Pacific Pte. Ltd., DNP Corporation USA
DNP America, LLC, DNP Holding USA Corporation[BEVERAGES]
Beverages
Manufacture and sale of carbonated beverages, coffee, tea and fruit juice beverages, functional
beverages, mineral water, alcoholic beverages, etc., primarily through Hokkaido Coca-Cola BottlingCo., Ltd.
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange andSapporo Securities Exchange.
* Equity-method affiliated companies-11-Organizational chart
The businesses noted above are shown in the organizational chart below.

Customers
Information Communication

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

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

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

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

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

(Sales and service provision, etc.)
DNP Lifestyle Materials Marketing
Co., Ltd.
Lifescape Marketing Co., Ltd.
DNP-SIG Combibloc Co., Ltd.

DNP Engineering Co., Ltd.

DNP Shikoku Co., Ltd.

DIC Graphics Corporation*

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

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

DNP Information Systems Co., Ltd.

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

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

Dai Nippon Printing Co., Ltd.

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

Beverages(Sales)DNP Taiwan Co., Ltd.

: Equity-method affiliated companies (Otherwise, subsidiaries): Flow of products, materials and services-12-

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

Beverages
business3. Management policies(1) Core policies
The DNP Group aims to realize a sustainable society, and expresses its corporate philosophy as“DNP Group connects individuals and society, and provides new value.” Based on this idea, we keep
our eye on the long term and endeavor to develop business activities that will enable us to create abetter future, in order to realize a better and more sustainable society and more enriching lifestyles.
Through our various activities, we solve social issues and, at the same time, create new value thatmeets people’s expectations. We strive to make that new value such an integral part of people’s
everyday lives that they come to take it for granted. By continually generating value people findindispensable, DNP strives to make itself an indispensable company. This aspiration is expressed inour brand statement: “Today’s Innovation is Tomorrow’s Basic.”
Through initiatives aligned with our basic management policies, we continually generate businessvalue and shareholder value. We use ROE and PBR as indicators for evaluating our businessactivities and for evaluating progress toward improving the value of our business.
(2) New medium-term management plan
1) Plan overview
In line with our basic management policies, in April 2023 the DNP Group will begin implementing
its new three-year Medium-term Management Plan, whose final year is the fiscal year ending
March 31, 2026. According to this plan, we will implement concrete measures–mainly “businessstrategies”–aimed at continual value creation. At the same time, we will promote “financial
strategies” and “non-financial strategies” to strengthen the management capital that supports
those measures, and we will increase corporate value and shareholder value.
2) Three types of strategies[1] Business strategy[1-1] The thinking behind DNP’s Medium- to Long-term Business Portfolio
In line with DNP’s new “business strategy,” we have clearly indicated the medium- to long-termbusiness portfolio we should aim for based on “appeal of market growth potential” and “businessprofitability.” We are positioning “growth-driving businesses” and “new businesses” with high“appeal of market growth potential” as “Focus Business Areas.” We will intensively invest
management resources in the five Focus Business Areas and fully develop any organizations
and/or systems necessary for further accelerating and expanding profit generation. In addition, we
will pursue a strategy of becoming No.1 by such means as evolution and deep cultivation of ourcore values, forming M&As with companies that have unique strengths, and co-creation withdiverse partners that constitute DNP’s unique social and relationship capital.
* Growth-driving businesses: digital interfaces, semiconductors, mobility and industrial
high-performance materials* New businesses: content and XR communication; medical and healthcare
Meanwhile, concerning “stable businesses”–those which are profitable despite having relatively
low potential for growth in market size or appeal–we will improve business efficiency and generate
stable cash flow. Concerning “businesses for reforming,” which have low market growth potential
and struggle to generate profits, we will work toward optimization, including downsizing or
eliminating production capacity and business bases. We will pursue structural reform by
reallocating resources into the Focus Business Areas and, even within these areas, by further
strengthening particularly strong products and services.

-13-

* Stable businesses: imaging communication, secure information* Businesses for reforming: existing printing business, beverages business[1-2] Strategies for each segment〇 Smart Communication
In the Smart Communication segment, we intend to invest efficiently and effectively while keeping
our eye on the balance between invested capital and cash generation. We will leverage DNP’score values and pursue collaborative operations and development of services with companies inJapan and abroad. Concerning our paper media printing business, in which belongs the categoryof “businesses for reforming,” we will promote rationalization and optimization as appropriate forthe scale of the market.
This segment’s Focus Business Area is Content and XR communication, which realize worlds
where people can seamlessly and securely move between real and virtual spaces, and we
expand the value of people’s experiences. We will leverage DNP’s unique strengths, including
our network of diverse intellectual property holders and creators not only in Japan but around theworld; high-definition image processing technologies that we cultivated through our archiving andinformation security businesses; DNP’s track record and reputation as a trusted copyrightprocessor; our ability to securely authenticate individuals and information while distributing
massive amounts of data; and our ability to integrate and optimize complex business processes.
In addition, as stable businesses that steadily accumulate earnings, we have Imaging
Communication, which offers photo printing and diverse other products and services worldwide;
our Business Process Outsourcing (BPO) business which designs optimal business processes
for companies and organizations who then outsource some of those processes to DNP; the smart
card business in which the DNP Group is the top provider in Japan; and information security
businesses including various types of authentication services.
As specific measures, in addition to investing in global expansion of Imaging Communicationand information security businesses, we will also work to expand our BPO business, which seeks
to boost the efficiency of companies and local governments and assist them with DX. Regarding
Content and XR communication, we will create new markets by deepening cooperation with
DNP’s many partners in Japan and elsewhere.
〇 Life & Healthcare
One of this segment’s Focus Business Areas is Mobility and industrial high-performance materials.
DNP holds the top share of the world market for battery pouches for lithium-ion batteries, andplans to expand its ability to supply pouches for the global EV market through aggressive capital
investment. Starting with these battery pouches and various decorative materials for automotive
interiors and exteriors, we are working to help realize pleasant transportation spaces by 2040 or
2050, by extending the driving range of EVs and by making autonomous driving a reality. The
segment’s other Focus Business Area is Medical and Healthcare. By combining various
technologies that we cultivated through businesses like publishing, packaging, andsemiconductors, such as image processing and color management technologies, aseptic/anoxic
filling technologies, micro/nano modeling technologies. and fine organic synthesis, we intend todevelop pharmaceutical support businesses such as production of active pharmaceuticalingredients, drug formulation, formulation changes, and medicine package manufacturing. In
addition, we will strive to expand smart healthcare businesses like diagnostic imaging and online
diagnostics in order to extend human life expectancies .
Meanwhile, in our Packaging business, where competition is fierce, we will work to improve
profitability through measures like reorganization of production bases, and we will promote-14-structural reform by expanding unique products like DNP-IB (Innovative Barrier) film andeco-friendly packaging materials.
Specific measures include considering the establishment of a lithium-ion battery pouchproduction base in the United States and expanding our global supply capacity for products likebarrier films and eco-friendly packaging materials. In the medical and healthcare field, we will
work to maximize synergies with external partners.
〇 Electronics
In addition to aggressively promoting capital investment in Electronics, we will seek to expand thissegment through such means as the development of new products that leverage DNP’s corevalues and the provision of greater value to the semiconductor supply chain as a result ofalliances with external partners.
One segment’s Focus Business Areas is digital interfaces, where we intend to take advantageof the tide of technological innovation, especially concerning products where the DNP Groupholds the top global market share, such as metal masks for manufacturing organic light-emitting
diode (OLED) displays and optical films used on displays. We will create new value by
connecting the real and the virtual, as well as analog and digital. Another Electronics segment’s
Focus Business Areas is semiconductors. Given that the amount of data being distributed
worldwide is increasing dramatically due to advances in autonomous driving, remote education
and remote medical care, cloud environments and data centers, the DNP Group will continue todevelop and provide fine devices that are essential to the entire semiconductor supply chain.
[2] Financial strategies
In order to create continuous business value and shareholder value, we will maintain financial
stability as we allocate cash to growth investments and allocate returns to shareholders in an
appropriate manner.
〇 Cash allocation strategies
By actively investing in Focus Business Areas and improving the efficiency of existing businesses,
we will generate stable operating cash flow that will serve as a source of funds for growthinvestment. In order to improve asset efficiency, we will accelerate the sale of strategically held
shares and steadily reduce holdings of idle real estate. In addition, we will strive to maximize
capital efficiency by considering appropriate funding methods, including the use ofinterest-bearing debt.
The cash that we generate will be invested intensively in Focus Business Areas and will also be
allocated to investments aimed at building DNP’s business base. In order to promote corporate
activities over the long term and provide value to society and individuals, we will also proactively
allocate funds to return to shareholders, based on consideration for the balance between
promoting growth investment and returning profits to shareholders.
[3] Non-financial strategies〇 Strengthening human capital
In 2022, the DNP Group announced its Human Capital Policy. In order to more clearly connect theinvestment in people that we actively promote based on this policy with improvement in corporate
value, we aim to dramatically increase our global human creativity (value-added productivity), bypromoting the following initiatives.
In order to support employee career autonomy leading to value creation, and to increase ourorganizational strength, we are developing DNP’s own version of “more job-orientedcompensation and related measures.” We are offering, among other things, dual-ladder career-15-

paths, investment in human resources that supports career autonomy, securing and maintenanceof highly competitive remuneration levels and systems, and we are working on enhancing
organizational development.
Furthermore, based on the DNP Group Declaration on Health we are developing measures tomore fully integrate the DNP Value Objectives (DVO) system and increase organizational
engagement, with the aim of empowering teams to bring out the strengths of diverse individual
members and reform our management to promote health management and increase employee
happiness.
When looking for the right person to assign to the right position for implementing our businessstrategies, we will use a talent management system to get a visual picture of the skill levels of ICT
and DX human resources, and we will reinforce any retraining that we find necessary whenrecruiting, training, or reassigning personnel based on our human resource portfolio.
Because the DNP Group believes that combining the strengths of each individual in order toleverage the diversity of its employees is essential to creating value, the Group works to promote
diversity and inclusion (D&I). We will continue to promote measures aimed at realizing our basic
policies for D&I promotion, which are: “cultivate diverse human resources,” “realize diverse
working styles,” and “cultivate a corporate culture in which diverse human resources can play anactive role.”〇 Enhancing intellectual capital
We will enhance our intellectual capital by taking advantage of DNP’s own unique strengths aswell as collaboration with external partners.
Our policy for research and development is to create a picture of a “better future” that DNP
wants to create. Then, in order to realize a “future scenario” based on that picture, we hone ourproprietary technologies and connect them to the development and provision of new products
and services. We will promote the creation of new themes centered around our Focus Business
Areas, enhancement of core technologies, development of new products, acquisition of strategic
technologies through open innovation, and the commercialization of those products andtechnologies. Additionally, we will work hard to accelerate overseas expansion, particularly
related to the Life and Healthcare field, and to bolster overseas marketing and research anddevelopment. We will create new value in both existing and new businesses by developing new
products and services using existing intellectual capital such as patents the DNP Group has
acquired through its various businesses, and by building an organizational culture that actively
combines strengths from both inside and outside the company.
The DNP Group positions DX as something that creates its own unique business model andvalue by fusing two opposing extremes, such as analog and digital, real and virtual,
manufacturing and services. In line with this basic policy, we will create new businesses,
transform existing businesses, dramatically improve productivity, and reform our internal
information infrastructure.
〇 Environmental protection initiatives
The DNP Group always considers the coexistence of its business activities with the global
environment, and views responsiveness to environmental problems as one of its most importantmanagement issues. By approaching environmental issues from the dual perspective of value
creation (business promotion) and foundation strengthening, we contribute to the realization of adecarbonized society that is recycling-oriented and in harmony with nature.
Regarding value creation (business promotion), we are working on transitioning to a businessportfolio that simultaneously achieves reductions in environmental impact while increasing the-16-added value of our businesses. We also work toward such goals as creating new businesses withenvironmental themes, developing and using low-carbon materials, calculating and reducing CO2
emissions per product unit, building recycling schemes to support a recycling-oriented society,and promoting the use of recycled materials.
In terms of foundation strengthening, we will keep working to make environmental effects
visible, introduce renewable energy, invest in energy-saving equipment that lightens the burden
on the environment, optimize production bases, make efficient use of resources (plastics
particularly), achieve traceability of raw materials, and reduce the burden on ecosystems, etc.
[4] Governance
The DNP Group assesses risks that could have a major impact on management, such as suddenchanges in the environment, society, or the economy, and reflects them in medium- to long-term
management strategies. We are also working on enhancing the processes by which we transformthese risks into business opportunities.
In order to further accelerate these efforts, in April 2022, we launched the Sustainability
Committee, which is chaired by the DNP Group’s president.
In the process of implementing our Medium-term Management Plan, the Sustainability
Committee assesses sudden changes in the environment, society, and economy, and reports andmakes recommendations to the Executive Committee and Board of Directors in order toappropriately reflect those changes in management strategies.
4. Basic approach to selecting accounting standards
The DNP Group uses Japanese GAAP in preparing consolidated financial statements. Goingforward, it plans to consider adopting IFRS and respond appropriately based on domestic andoverseas circumstances.

-17-5. Consolidated financial statements and key notes(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2022
(As of March 31, 2022)

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

287,334
46,635277,912298
17,90080,38530,98030,25533,804(693)
804,813

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

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

555,484(373,274)
182,209678,617(612,663)
65,954
139,907
20,284
129,957(101,883)
28,073
436,4292,317
23,556
1,873
27,747

2,423
26,1091,827
30,360410,266
166,130
11,77036,002(1,957)622,210
1,071,834
1,876,647

341,215
174,781
7,749
38,882(2,029)560,598
1,027,389
1,830,384

ASSETS
Current assets
Cash and time deposits
Notes receivables
Trade receivables
Contract assets
Marketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS-18-

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

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

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

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

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

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

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

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

192,994

138,78145
4,220
27,932(21)
14,14325,535225,193

178,439

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

60,741
1,148,245
1,830,384

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Repair reserve
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term debt
Repair reserve
Net defined benefit liability
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-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
Other
Total non-operating income
Non-operating expenses
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on retirement benefit system changes
Gain on reversal of repair reserve
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Other
Total extraordinary losses
Income before income taxes andnon-controlling interests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders

Year ended
March 31, 2022
1,344,147
1,051,218
292,928
226,140
66,788Year ended
March 31, 2023
1,373,209
1,081,284
291,924
230,691
61,233

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

9,016
13,603
4,076
26,695

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

700
1,179
2,387
4,267
83,661

7,133
12,11818,534
14,674
2,118
54,57917,426
12,871–
11,3882,788
44,474

3,918
3,506
1,513
8,938

1,313
6,286
802
8,402

126,890

119,733

17,998
8,391
26,389100,501

20,3779,650
30,02889,704

3,319

4,011

97,182

85,692-20-

Consolidated statements of comprehensive income(Million yen)

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

Year ended
March 31, 2022
100,501

Year ended
March 31, 2023
89,704(9,044)(54,184)

34
7,552
1,568

(74)
7,457
(2,895)

3,157

3,025

3,269
103,770(46,672)
43,032

99,514
4,255

38,9384,093-21-

(3) Consolidated statements of changes in net assets
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Stockholders’ equity
Commonstock
Balance at the beginning of current period
Cumulative impact ofCapitalsurplus114,464Retainedearnings

145,024

683,78425

accounting changes

Cumulative impact of changes in accounting
policies at equity-method affiliates
Balance at the beginning of current period
reflecting accounting changes

Total
stockholders’equityTreasurystock(122,920)(3,355)
114,464

145,024

680,454820,352
25(3,355)(122,920)

817,022

Changes of items during the period
Cash dividends paid
Net income attributable to parent company
shareholders
Change in ownership interest of parent arisingfrom transactions with non-controllingshareholders(17,643)(17,643)

97,182

97,182

118

118

Change in treasury stock resulting from change
in ownership of affiliates accounted for by theequity method
Purchases of treasury stock(0)(19,809)

Disposal of treasury stock
Retirement of treasury stock00(30,012)0
19,809(30,012)0–

Net changes in items other than stockholders’equityTotal changes of items during the period
Balance at the end of current period––
114,464

118
145,143

59,728740,183(10,202)(133,123)

49,644
866,667

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets202,017

11(5,082)

26,678

223,624

54,636

1,098,613

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

25
(296)

(0)

3

(470)

(763)

201,720

11(5,078)26,207

222,861(4,118)54,636

1,094,521(17,643)

Cash dividends paid
Net income attributable toparent company
shareholders
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders

97,182

118

Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock(30,012)

Disposal of treasury stock0

Retirement of treasury
stock

–

Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period0(8,726)

33

9,299

1,725

2,332

1,916

4,248

(8,726)

33

9,299

1,725

2,332

1,916

53,892

192,994

45

4,220

27,932

225,193

56,552

1,148,413-22-

The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Million yen)
Stockholders’ equity

Balance at the beginning ofcurrent period

Totalstockholders’equityCommonstock

CapitalsurplusRetainedearnings

Treasurystock

114,464

145,143

740,183(133,123)

866,667

Changes of items during theperiodCash dividends paid
Net income attributable toparent company
shareholders
Change of application ofequity method
Change in ownershipinterest of parent arisingfrom transactions with
non-controllingshareholders
Change in treasury stock
resulting from change inownership of affiliates
accounted for by the equity
methodPurchases of treasury
stock(17,145)(17,145)

85,692

85,692

(465)

(465)

(30)

(30)

0

0

(25,864)(25,864)

Disposal of treasury stock

15

194

210

Retirement of treasurystock
Net changes in items otherthan stockholders’ equity(70,581)

70,581–

Total changes of items
during the period
Balance at the end of current
period––(30)(2,484)44,911

42,397

114,464

145,112

737,699(88,212)

909,064

Accumulated other comprehensive income

Balance at the beginning ofcurrent period

Valuationdifference on
available-forsale securities

Net deferredgains (losses)on hedges

Foreigncurrencytranslation
adjustments

Remeasurements ofdefined benefit
plans

Total
accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net
assets192,994

45

4,220

27,932

225,193

56,552

1,148,413

Changes of items during theperiod(17,145)

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

85,692(465)

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

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

Purchases of treasury
stock(25,864)210

Disposal of treasury stock
Retirement of treasurystock
Net changes in items otherthan stockholders’ equity
Total changes of items
during the period
Balance at the end of current
period–(54,212)

(66)

9,922

(2,397)(46,754)

4,188(42,565)(54,212)

(66)

9,922

(2,397)(46,754)

4,188

(168)

138,781(21)

14,14325,535

178,439

60,741

1,148,245-23-

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

Year ended
March 31, 2022
Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Impairment loss
Increase (Decrease) of doubtful receivables, net
Increase of net defined benefit asset
Increase of net defined benefit liability
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gain on sale of investment securities
Net loss on devaluation of investment securities
Net gain on sale or disposal of fixed assets(Increase) Decrease in trade receivables
Increase in inventories
Increase (Decrease) in trade payables
Increase on reversal of repair reserve
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchase of stock in subsidiaries resulting
in change in scope of consolidation
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash used in investing activities-24-

Year ended
March 31, 2023

126,890

119,733

51,1543,506(853)(35,003)
3,851(8,686)521(4,114)735(11,942)742(3,168)2,461(13,355)
7,882(14,674)(2,970)102,977(7,215)(197)(13,535)
82,02851,7696,286
38(16,958)
3,641(13,603)
512(9,016)700(12,810)337(16,080)(1,599)(11,085)(13,404)(11,388)(8,197)
68,875(6,844)(141)(23,895)
37,993

4,502

1,492

(53,614)(50,321)

8,120(1,571)
14,747

19,813(1,038)14,903(50)(1,743)(12,206)
6,980(6,117)(39,208)(11,804)
6,740(3,063)(25,021)

(Million yen)

Year ended
March 31, 2022
Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Expenditure for acquisition of subsidiary shares withoutchange in scope of consolidation
Income from the sale of shares of a subsidiary without achange in the scope of consolidation
Payments for purchases of treasury stock
Payments for purchases of treasury stock of subsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents resulting frommerger of non-consolidated subsidiaries
Cash and cash equivalents at end of year

-25-

Year ended
March 31, 2023

(3,350)4,790(2,009)(3,570)(3,693)
3,100(2,652)(1,050)

(878)

–

10

41

(30,012)
(847)
(734)
(17,642)(509)(2,997)(57,751)(25,864)(0)(698)(17,142)(592)(3,882)(52,435)

4,054

4,430

(10,877)
304,223(35,032)
293,36115–

293,361

258,329

(5) Notes regarding consolidated financial statements[Notes on premise of a going concern]
None[Basis of presenting consolidated financial statements]
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 107
Major companies:
Maruzen CHI Holdings Co., Ltd.
Hokkaido Coca-Cola Bottling Co., Ltd., INTELLIGENT WAVE INC.
DNP Fine Chemicals Co., Ltd., DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 19
Major companies:
BIPROGY Inc., BOOKOFF GROUP HOLDINGS LIMITED
Kyoiku Shuppan Co., Ltd., DIC Graphics Corporation
Photronics DNP Mask Corporation
MK Smart Joint Stock Company
Photronics DNP Mask Corporation Xiamen
2) Changes in scope of consolidation and application of the equity method of accounting(Scope of consolidation)
As of the current fiscal period, three companies have been newly included in the scope of
consolidation for reasons such as the establishment of new companies. In addition, 12 companies
have been removed from the scope of consolidation due to dissolution related to mergers, etc.
(Application of equity method)
From the current fiscal period, one company has been newly included in the scope of applicationof the equity method due to its increased importance. In addition, two companies have been
excluded from the scope of application of the equity method due to the sale of shares, etc.
3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 32 others have fiscal
years that end on December 31, while Maruzen CHI Holdings Co., Ltd. and 19 others have fiscal
years that end on January 31. Their financial statements as of the same date are used in the
preparation of these consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.’s fiscal year ends on June 30, MobileBook.jp Inc., Inc. andone other company have fiscal years that end on September 30, DNP Tamura Plastic Co., Ltd.’s
fiscal year ends on October 31, and DNP-SIG Combibloc Co., Ltd.’s fiscal year ends on December
31. Consequently, financial statements based on provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates or provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.

-26-4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets• Marketable securities
Other securities
Non-stock instrumentsthat do not have amarket price

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

Stock instruments that
do not have a market
price

Mainly cost based on the moving-average method• Derivatives

Mainly fair market value• Inventories

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

Merchandise
Finished products, work inprogress

Mainly cost based on the specific identification method
Mainly cost based on the retail inventory cost method

Raw materials

Mainly cost based on the moving-average method

Supplies

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

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

• Lease assets

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

•Right-of-use assets

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

-27-

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

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

• Repair reserve

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

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

-28-

(2) Provision of services (Information and Communication, Lifestyle and Industrial Supplies,
and Electronics segments)
Concerning the provision of services, in cases where the performance obligation is fulfilled ata single point in time, the performance obligation is considered to have been fulfilled when thecustomer accepts the service provision, and we recognize revenue at that point. In cases
where the contract with the customer stipulates that the performance obligation be satisfied
for the duration of a certain period of time covered by the contract, the performance obligationis considered to have been satisfied with the passage of time, and the revenue is recognized
as being evenly apportioned over the contract period.
(3) Sale of beverages (Beverages segment)
Regarding the sale of beverages, since the customer generally takes control of the product at
the time when it is delivered, it is determined that at that time the performance obligation has
been satisfied and we recognize revenue.
(e) Accounting treatment of retirement benefits• Method of attributing expected retirement benefits to periods
In calculating retirement benefit obligations, a benefit formula is used to allocate expected
retirement benefit payments in the period until the end of the current fiscal year.
• Method of amortizing actuarial gains/losses and prior service costs
Actuarial gains/losses are amortized starting in the next fiscal year after they are incurred
using the declining balance method over a certain number of years that is equal to or lessthan the average future service period of eligible employees in the fiscal year the actuarial
gains/losses are incurred (generally nine years).
Prior service costs are amortized using the straight-line method over a certain number ofyears that is equal to or less than the average future service period of eligible employees at
the time the costs are incurred (generally six years).
(f) Amortization of goodwill
Goodwill is amortized using the straight-line method for an effective period not more than 20
years.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents comprise cash on hand, immediately withdrawable funds, andshort-term investments that can be easily converted to cash, have insignificant risk of changes
in value, and have maturities within three months of the purchase date.
[Changes in accounting estimates](Repair reserve)
As of the end of the fiscal year ended March 2023, construction work related to more than 80% of
the anticipated repairs had been completed. Based on historical data showing the actual cost oflabor, materials, etc. incurred at repair sites to date, we reviewed the unit price and prepared arevised estimate of the cost of repairs expected to be needed in the future.
As a result, the difference between the previous estimate and the new estimate was recorded as
an extraordinary gain under “reversal of repair reserve.” As a result, income before income taxes
and non-controlling interests for the fiscal year through March 2023 increased by ¥11,388 million.

-29-

[Consolidated balance sheets]
Year ended
March 31, 2022

Year ended
March 31, 2023

¥317 million¥85 million¥13,287 million¥16,655 million

Year ended
March 31, 2022

Year ended
March 31, 2023

¥33,147 million¥32,480 million

1. Discounts on notes receivables
2. Contract liabilities(Current liabilities and other in long-term liabilities)[Consolidated statements of income]

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

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

Application
Information Innovation
business assets

Kashiwa City (Chiba), other

System assets

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

Publishing business assets

Other

Business assets
other than above

Other

Idle assets

Category
Buildings and structures,
machinery and equipment, other
Buildings and structures,software, other
Buildings and structures,
machinery and equipment,
software, other
Buildings and structures,
machinery and equipment, land,
goodwill, software, other
Buildings and structures, otherIn calculating impairment losses, the DNP Group combines assets based mainly on the businessgroups that serve as profit/loss units. It also considers impairment losses for each individual item foridle assets.
As a result, regarding a group of assets used by businesses with reduced profitability and idle
assets that are not expected to be used, the book value was reduced to the recoverable value andthat reduced value was recorded as an extraordinary impairment loss of ¥6,286 million.
The impairment loss breaks down into buildings and structures at ¥2,273 million, machinery andequipment at ¥966 million, land at ¥118 million, goodwill ¥194 million, software at ¥1,495 million, andother at ¥1,239 million.
The recoverable value of assets whose profitability has declined is measured by the value in use
or the net salable value. Assets that are measured by their usage value are generally assigned avalue of zero because no future cash flows can be expected from operating activities. Assets thatare measured based on net salable value are calculated according to the planned sale price.
Regarding sites that the Company plans to close or relocate, the book value of assets that will
become unnecessary at the time of site closure or relocation is reduced. The recoverable value of
idle assets is measured according to the net selling price, which is calculated based on real estateappraisals, etc., but when it is difficult to calculate the selling price of idle assets, book value isreduced to the memorandum value.

-30-

[Consolidated statements of changes in net assets]
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2022

Increase in
number ofshares during
the year
ended March2022

Decrease in
number ofshares during
the year
ended March
2022

Number ofshares at theend of theyear ended
March 2022

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

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

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,988

32

March 31,2021

June 30,
2021

Common stock

8,655

32

September 30,
2021

December 10,
2021(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2022

Common
stock

8,610

Source ofdividends
Retainedearnings-31-

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2022

June 30,
2022

The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
1. Types and number of shares outstanding and treasury stock(Shares)

Stock type

Number ofshares at the
beginning of
the year
ended March
2023

Increase in
number ofshares during
the year
ended March
2023

Decrease in
number ofshares during
the year
ended March
2023

Number ofshares at theend of theyear ended
March 2023

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

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

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

8,610

32

March 31,2022

June 30,
2022

Common stock

8,534

32

September 30,
2022

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

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2023

Common
stock

8,368

Source ofdividends
Retainedearnings-32-

Dividend
per share
(Yen)

32

Dividend
record date

Effective
date

March 31,2023

June 30,
2023

[Segment information, etc.](Segment information)
1. Overview of the reporting segments(1) Method of determining reporting segments
DNP’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
The DNP Group bases its business divisions on the products and services provided anddevelops its business activities based on a comprehensive domestic and overseas strategy foreach business division. The four reporting segments are Information Communication, Lifestyleand Industrial Supplies, Electronics, and Beverages.
(2) Products and services in each reporting segment
Each business segment’s specific products are listed under “2. Information on the DNPGroup.”
2. Method of calculating sales, income/loss, assets, and other items by reporting segment
The accounting method used for reporting business segments is generally the same as statedin “Basis of presenting consolidated financial statements.”
Reporting segment income figures are based on operating income. Inter-segment sales andtransfers are based on third-party transaction prices.

-33-

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

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

Notes:

1.

2.
3.

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

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

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

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

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

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

1,344,147–
1,344,147
66,7881,876,647

20,01318,442

8,694

2,087

49,237

1,916

51,154

488

–

22

10

521

–

521

3,087

158

–

2

3,248

258

3,506

2,579

620

24,081–

27,282

43,19270,47419,067

21,568

5,503

2,153

48,293

2,405

50,699Beverages

Total

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

-34-

The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
Reporting segment

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

Notes:

1.

2.
3.

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

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

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

399,626
609
400,235
7,380
453,303

203,573–
203,573
46,936242,478

51,595951,605
601
48,111

1,373,209
2,500
1,375,709
81,649
1,561,670–(2,500)(2,500)(20,415)
268,713

1,373,209–
1,373,209
61,233
1,830,384

20,156

18,416

9,481

2,103

50,157

1,611

51,769Beverages

Total

495

1

0

14

512

–

512

5,169

768

198

–

6,135

151

6,286

3,768

630

34,669–39,06844,71983,78736,79323,517

13,522

2,353

76,186

1,895

78,082

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

-35-

(Related information)
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,053,912
Notes:

1.
2.
3.

Asia

Other regions

218,894

Total

71,3391,344,147

Sales are classified by country or region, based on the location of customers.
Country and regional segments are based on geographic proximity.
Main countries and regions included in each segment:
Asia:
China, South Korea, Taiwan, Indonesia
Other:
United States, Germany, France, United Kingdom(2) Property, plant and equipment
Omitted because the value of property, plant and equipment located in Japan is over 90%of the value of property, plant and equipment as reported in the consolidated balance
sheets.
3. Information on major customers
Not described because sales to specific outside customers are less than 10% of sales asreported in the consolidated statements of income.
The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)
1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,057,410
Notes:

1.
2.
3.

Asia

Other regions

225,900

Total

89,897

1,373,209

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

-36-

[Per share information]
Year ended
March 31, 2022
(April 1, 2021 –March 31, 2022)

Year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)

Net assets per share¥4,057.98¥4,158.46

Net income per share¥355.84¥321.32

Diluted net income per share¥355.79¥321.27

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

(1) Net income per share
Net income attributable to parent company
shareholders
Amounts not attributable to commonshareholders
Net income attributable to parent company
common shareholders
Average number of common shares outstanding
during the fiscal year(2) Diluted net income per share
Adjustments to net income attributable to parent
company shareholders
Of which, impact of dilutive stock ofconsolidated subsidiaries and affiliates
Increase in common stockYear ended
March 31, 2022
(April 1, 2021 –March 31, 2022)

Year ended
March 31, 2023
(April 1, 2022 –March 31, 2023)(Million yen)

97,182

85,692(Million yen)––

(Million yen)

97,182

85,692(Thousand shares)

273,105

266,691(Million yen)

(14)

(13)

(Million yen)

(14)

(13)

–

–

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

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

1,148,245
60,74160,741(Thousand shares)

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

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

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

1,148,413
56,55256,552(Million yen)

1,091,861

1,087,504

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

317,240
48,175292,240
30,724(Thousand shares)

269,065

261,515(Thousand shares)[Significant subsequent events]
None

-37-

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

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

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

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

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

402,894(281,017)
121,876
30,650(24,857)
5,792
519,704(470,715)
48,9881,539(1,336)
203
50,572(43,135)
7,436
117,079
2,006(1,171)
835
21,610323,822430,631(283,887)
146,743
31,126(25,018)
6,108
511,306(465,168)
46,137
1,564(1,409)154
49,978(41,428)8,549
116,641
3,076(1,215)
1,861
13,912
340,110

16,602
1,225
17,82818,282
1,183
19,466

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

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

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

(Million yen)

Year ended
March 31, 2022
(As of March 31, 2022)
LIABILITIESCurrent liabilities
Notes payable
Trade payable
Lease obligations
Accounts payable - otherAccrued expenses
Contract liability
Advances received
Deposits payable
Reserve for bonuses
Reserve for bonuses to directors
Repair reserve
Notes payable for facilities
Other
Total current liabilities
Long-term liabilities
Bonds
Lease obligations
Asset retirement obligations
Long-term accounts payable
Provision for retirement benefits
Repair reserve
Deferred tax liabilities
Other
Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholders’ equity
Common stock
Capital surplus
Capital reserve
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Reserve for depreciation reduction of fixed
assetsOther reserves
Retained earnings brought forward
Total retained earnings
Treasury stock
Total stockholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS-39-

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

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

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

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

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

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,30017

16232,780
104,142360,240(133,093)
486,509

232,780
98,086354,183(88,182)
525,363

190,381

136,289

190,381
676,890
1,420,458

136,289
661,653
1,339,813

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

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

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

Year ended
March 31, 2023
928,084
796,836
131,247
132,058(810)

96
43,86130,492
6,880
81,331

91
50,22731,273
3,081
84,675374
23,7681,883
26,02561,999368
24,664
2,017
27,051
56,8136,25112,117
9,545
14,674
2,101
44,691

13,841
12,869–11,388
192
38,292

3,605
2,769
5,600
790
12,76593,925
880
6,016
6,896
87,029

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

(3) Non-consolidated statements of changes in net assets
The year ended March 31, 2022 (April 1, 2021 – March 31, 2022)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

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

114,464

114,464Retained earnings
Other retained earnings

Capitalreserve

Total capitalsurplus

Legal reserve

144,898

144,898

23,300144,898

144,898

23,300Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

18

232,780

54,597

310,695

(31)

(31)

54,566

310,6641–(17,643)
87,029(17,643)
87,02918

232,780

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

Cash dividends paid
Net income
Purchases of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
periodCumulative impact ofaccounting changes
Balance at the beginning ofcurrent period reflecting
accounting changes

–

–

–

(1)

–

49,57649,575

114,464

144,898

144,898

23,30017

232,780

104,142360,240

Valuation and translation
adjustments

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(122,890)

447,167

199,445

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

447,136(31)
199,445

199,445646,581

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

Cash dividends paid

(17,643)(17,643)

Net income
Purchases of treasury stock(30,012)87,029(30,012)87,029(30,012)00019,809––

Disposal of treasury stock
Retirement of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period(0)(19,809)–

Stockholders’ equity

Balance at the beginning ofcurrent period(0)(19,809)–(9,063)(9,063)(9,063)(10,202)39,372(9,063)(9,063)30,308(133,093)

486,509

190,381

190,381

676,890-41-

The year ended March 31, 2023 (April 1, 2022 – March 31, 2023)(Million yen)
Stockholders’ equity
Capital surplus
Commonstock

Retained earnings
Other retained earnings
Reserve fordepreciation
reduction of
fixed assets

Other
reserve

Retainedearnings
brought
forwardTotal
retainedearnings

17

232,780

104,142360,240

1–

Cash dividends paid

(17,145)(17,145)

Net income

81,65381,653

Balance at the beginning ofcurrent period

114,464

Capitalreserve

Total capitalsurplus

Legal reserve

144,898

144,898

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

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

–

–

–

(1)

–

(6,056)(6,057)

114,464

144,898

144,898

23,30016

232,780

98,086354,183

Valuation and translation
adjustments

Treasury
stock

Total
stockholders’equityValuationdifferenceonavailablefor-salesecurities

Total
valuationandtranslation
adjustments

Total net
assets(133,093)

486,509

190,381

190,381

676,890––

Cash dividends paid

(17,145)(17,145)

Net income

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

Disposal of treasury stock

194

210

210

Retirement of treasury stock
Net changes in items otherthan stockholders’ equity
Total changes of items during
the period
Balance at the end of current
period70,581–

Purchases of treasury stock

15(70,581)–

Stockholders’ equity

Balance at the beginning ofcurrent period
Changes of items during theperiodReversal of reserve fordepreciation reduction of
fixed assets

15(70,581)–(54,091)(54,091)(54,091)

44,911

38,854(54,091)(54,091)(15,237)(88,182)

525,363

136,289

136,289

661,653(4) Notes regarding non-consolidated financial statements[Notes on premise of a going concern]None-42-