6

BUSINESS RESULTS/CORPORATE PROFILEManagementʼs Discussion
and Analysis
Consolidated

Fiscal year: the accounting year ended March 31

Net Sales

Business Environment and Overview of Operating Results
for the Fiscal Year Ended March 2023

Managementʼs Discussion and Analysis ……………………………………………… 81
Key Financial Data for 11 Years …………………………………………………………… 88
Non-financial Data ……………………………………………………………………………… 90
Major Subsidiaries and Affiliates ………………………………………………………… 92
Our Products and Services ………………………………………………………………… 94
Investor Information …………………………………………………………………………… 96
Dialogues with Shareholders and Investors ………………………………………… 98
Message from the Director in Charge ………………………………………………… 99

80

Business conditions surrounding the DNP Group during the fiscal year ended
March 2023 were marked by gradual progress in efforts to change peopleʼsworking styles and lifestyles, in addition to recovery from the effects of the
COVID-19 pandemic on social and economic activities. In Japan, in particular,
there were signs of gradual economic recovery, with increasing demand for
inbound tourism, especially since travel restrictions were eased at the beginning of2023.
On the other hand, factors such as the emergence of geopolitical risks anddecreased stability in global supply chains continued to push up prices of raw
materials and energy and logistics costs. The business environment in Japan andelsewhere 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 vigorously pursued initiatives aimed atrealizing a better, sustainable society and enabling well-being lives. In line with
DNPʼs P&I Innovation business vision that synergizes DNPʼs unique strengths in
P&I (Printing & Information), we deepened the level of cooperation with our many
partners and strove to create new value that solves social issues and meets
peopleʼs expectations.
In the fiscal year ended March 2023, we designated four “ focus businesses”
for which we anticipate strong market growth and high profitability: IoT andnext-generation communications business, data distribution-related business,
mobility business and environment-related business. We focused and optimized
management resource allocation in these areas, including both financial capitaland non-financial capital such as human resources and intellectual properties.
Doing so led to many positive results.
In the IoT and next-generation communications business, DNP has developed afilm-type antenna that supports the Sub6 waveband of fifth-generation mobile
communication systems (5G) with its excellent design, weather resistance andflexibility. By combining DNPʼs proprietary technologies with other technologies,
we intend to build a coherent production system handling everything from patterndesign to processing, and to promote rapid commercialization.
In data distribution-related business, in October 2022 we began providing aface authentication system that uses photo data from facial photos taken with
DNPʼs “ 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
December 2022, we formed a business tie-up with The Yomiuri Shimbun Tokyo
Headquarters and SMN Corporation. By compiling behavioral data relating toconsumers who come into contact with newspapers, magazines and televisionshows owned by each company, we launched “Media X,” a platform for more
effective distribution of advertisements.
In the mobility business, we worked to develop products and services for the
next-generation mobility society, which demands reduced environmental impact,
higher energy efficiency, greater information security and high degrees of safety
and comfort. To improve the efficiency of delivery management, etc., as part ofthis effort, in February 2023, we used Mobility as a Service (MaaS) in the Republicof the Philippines to demonstrate the viability of a “last mile logistics” businessthat delivers goods from final logistics bases into the hands of consumers.
In environment-related business, in October 2022, we combined DNPʼs diverse
technologies and expertise to launch a cross-departmental environmentallyconscious design team called DNP GREEN PARTNER, whose mission is to help
solve environmental issues faced by corporations. Aiming for long-term
coexistence between a healthy environment and business, we intend to provide
companies with services aimed at resolving various issues.
In addition to these focus businesses, the entire group has been working on
structural reforms aimed at boosting DNPʼs competitiveness, and has worked to(¥ billion)

1,500

1,401.5 1,401.9

1,335.4 1,344.1 1,373.2

19

21

1,000

500

0

20

22

23

Operating Income(¥ billion)

80
66.8
60

61.2

56.3
49.8

49.5

40

20

0

19

20

21

22

23

Net Income (Loss) Attributable toParent Company Shareholders(¥ billion)

97.2

100

85.7

80

69.5

60
40

25.1

20
0
-20
-40

­35.6

19

20

21

22

23

Net Income (Loss) to Net Sales
(%)

8

7.23
6.24

6

4.96

4
2

1.88

0
-2

­2.54

19

20

21

22

23

DNP Integrated Report 2023

81

6 ｜ BUSINESS RESULTS/CORPORATE PROFILEManagement ʼs Discussion and Analysis

build a stronger business portfolio. To strengthen our management foundation sothat it can support long-term growth, we have accelerated the promotion of digitaltransformation (DX) aimed at improving productivity, upgrading our information
infrastructure and initiatives relating to the environment, human resources andhuman rights.

Net sales (¥ million)

2023.32022.32021.3

1,373,209

1,344,147

1,335,440

Gross profit margin21.3 %

21.8 %

20.7 %

Operating income margin

4.5 %

5.0 %

3.7 %

Ordinary income margin

6.1 %

6.0 %

4.5 %

Net sales income margin

6.2 %

7.2 %

1.9 %

Overseas sales for the DNP Group as a whole were ¥315,798 million, up 8.8%
from the previous fiscal year. Overseas sales accounted for 23.0% of total sales,
an increase of 1.4 percentage points from 21.6% in the previous fiscal year. By
region, sales in Asia, including Indonesia and Taiwan, increased by 3.2% year on
year to ¥225,900 million. In other regions, including the United States and Europe,sales increased 26.0% to ¥89,898 million.

Gross Profit Margin

Information Innovation Business: Information Security

(%)

25
20

20.1 20.9

20.7

21.8 21.3

15
10

Demand for taking and printing photographs ̶ which had declined dueto the impact of restrictions on movement and other measures against the
COVID-19 pandemic ̶ recovered in the European and Asian markets, inaddition to the main U.S. market.
DNP Sales increased overall due to the strong performance of dye-sublimation
thermal transfer printing media for photo prints, and other photography-related
services.
Market

0

19

20

21

22

23

DNP ʼs Overseas Sales(¥ billion)

350

290.2

300

315.8

Electronics
14.8%

Beverages
3.8%

Lifestyle andIndustrial Supplies
29.1%

Information
Communication
52.3%

Operating Income by Segment(Year ended March 31, 2023)

Beverages
0.7%

Information
Communication
32.8%

Electronics
57.5%

Lifestyle andIndustrial Supplies
9.0%

238.4 246.2 245.8

200

Lifestyle and Industrial Supplies

150
100
50

• Net Sales:¥720,294 million (up 3.0 % YoY)
• Operating Income:¥26,731 million (down 3.2 % YoY)
• Operating Income Margin: 3.7% (down 0.3 percentage points)(Year ended March 31, 2023)

Imaging Communication Business5250

Information Communication

Societyʼs demand for business process outsourcing (BPO) continued toincrease in response to labor shortages and workstyle reforms. In the smart
card segment, the percentage of payments using credit cards remained highamid a rise in cashless payment practices.
DNP Sales increased overall due to an increase in BPO business and otherlarge-scale projects, in addition to an increase in smart cards for financial
institutions and My Number cards.
MarketNet Sales by Segment

0

19

20

21

22

23

• Net Sales:¥400,236 million (up 3.4% YoY)
• Operating Income:¥7,380 million (down 45.8% YoY)
• Operating Income Margin: 1.8% (down 1.7 percentage points)

Packaging Business
Publishing Business
Market Sales volume in the publishing industry in fiscal 2023 totaled ¥1,110.6
billion (down 6.4% year on year). The positive impact of the increase in reading
time due to the COVID-19 pandemic that continued in fiscal 2020 and fiscal
2021 has ended, and the market was also affected by consumer restraint frombuying due to high prices. Sales of books decreased 5.4% to ¥637.9 billion,
while sales of magazines decreased 7.7% year on year to ¥468.7 billion(surveyed by Japanʼs Research Institute for Publications). The number ofbookstores decreased to 11,500 in 2022, in comparison with the peak ofaround 22,000 stores in 1999 (surveyed by The All Japan Magazine and Book
Publisherʼs and Editorʼs Association). The size of the electronic book market in
fiscal 2022 increased 7.5% year on year to ¥501.3 billion, and the market is
expected to grow to a size exceeding ¥800 billion by fiscal 2026 (surveyed by
The All Japan Magazine and Book Publisherʼs and Editorʼs Association).
DNP In Publishing, on top of shrinkage in printing orders due to contraction of
the market for magazines and other paper media, there was also a decline insales from DNPʼs hybrid bookstore network, which handles both paper andelectronic media, in comparison with the previous yearʼs high stay-at-homedemand, leading to a decrease in net sales year on year. Our electronic libraryservice and library operations have continued to grow steadily. In the librarysupport business, the number of contracted libraries was 1,799 as of April 30,
2023, a year-on-year increase of 53, resulting in year-on-year sales growth.

Information Innovation Business: Marketing
Market Domestic demand for advertising in fiscal 2022 decreased by 2.9%
overall, despite an increase in internet advertising and event planning, due to amajor decline in demand for television and newspaper advertising (surveyed by
the Ministry of Economy, Trade and Industry).
DNP While digital marketing continued to perform strongly, overall sales
declined due to a decrease in sales of paper media such as catalogues andpamphlets, along with point-of-purchase (POP), premium and other sales
promotion products and services.

82

Market Demand for eco-friendly packaging materials and packaging materials
for food products and daily commodities began to recover, as did inbounddemand for packaging materials for tourism-related souvenirs.
DNP In response to a growing awareness of environmental concerns, we
also worked at developing and selling eco-friendly packaging. We madeefforts to shift to high added-value products and worked to implement
structural reforms to paper container manufacturing and other businessprocesses. As a result of these efforts, although the number of film packaging
products that we sold changed little from the previous year, overall Packaging
sales increased thanks to progress in passing on cost increases to customers,
and to increased sales of formed plastic products.

Living Spaces Business
Market Domestic new housing starts decreased 0.6% year on year to
approximately 860,000 units in fiscal 2022. In these new starts,
owner-occupied houses decreased by 11.8%, while apartments and otherrental housing increased by 5.0% and condominiums increased by 4.5% year
on year (surveyed by the Ministry of Land, Infrastructure, Transport andTourism).
DNP The Living Spaces business was affected by a decline in new housing
starts in Japan and the resulting decrease in sales of interior and exteriormaterials for housing. Export sales also sagged, especially in the Europeanand U.S. markets, as inflation stifled economic activity. However, sales ended
on par with the previous year due to our efforts of review of cost efficiency
and price improvement.

Industrial High-performance Materials Business
Market Demand for products like smartphones and notebook PCs remainedsluggish against the backdrop of reactionary reductions to stay-at-homedemand and market inventory adjustments, and sales of battery pouches forlithium-ion batteries used in IT applications decreased. At the same time,
demand for battery pouches for automotive use increased. The global market

DNP Integrated Report 2023

83

6 ｜ BUSINESS RESULTS/CORPORATE PROFILEManagement ʼs Discussion and Analysis

for electric vehicles is expected to grow 17% in terms of CAGR (Compound
Annual Growth Rate) between 2023 and 2030, due to the increasing global
trend toward environmental requirements for reducing CO 2 emissions(surveyed by LMC Automotive). Global demand for encapsulants for solar
cells has also increased.
DNP Although sales of battery pouches for lithium-ion batteries used indevices such as tablets and smartphones decreased, sales of battery pouches
for lithium-ion batteries for automotive use and encapsulants for solar cells
increased, resulting in net sales that were on par with the previous year.

Electronics• Net Sales:¥203,574 million (down 3.6% YoY)
• Operating Income:¥46,936 million (up 1.0% YoY)
• Operating Income Margin: 23.1% (up 1.1 percentage points)

Display Components Business
Market In 2022, although the market for organic light-emitting diode (OLED)
displays for smartphones suffered from an overall decrease in the number ofsmartphones shipped due to factors such as a decline in consumer motivation
to purchase, the number of manufacturers adopting OLED displays increased,
resulting in a 5.4% increase in display area shipped (5,343,000m2). The
market for TVs and other large LED panel displays shrank, due to factors suchas a reactionary decrease in stay-at-home demand, with display area shipped
decreasing by 7.1% to 193,447,800m2 (source: Reality and Future Prospect ofDisplay Related Market 2023, Fuji Chimera Research Institute, Inc.).
DNP The Display Components business enjoyed solid demand for metalmasks used in the production of OLED displays, which are increasingly used
for smartphones. At the same time, sales of optical films decreased relative tothe previous yearʼs surge in stay-at-home demand in Japan, along with theimpact of inventory adjustments throughout the supply chain due to aworldwide slump in consumption. As a result, overall sales from this businessdecreased.

Electronics Devices Business
Global semiconductor sales for 2022 increased 3.3% year on year to
US$ 574.0 billion as demand stalled in the second half of the year, according
to the World Semiconductor Trade Statistics. By field, semiconductor memory
shipments decreased by 15.6% year on year, and logic shipments increasedby 14.0% year on year.
DNP The Electronic Devices business was affected by a slowdown in the
expansion of the semiconductor market, leading to a decline in sales of leadframes 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 theprevious year. Demand for semiconductor production photomasks also
remained strong for product development at client companies, resulting in an
overall year-on-year increase in sales.
MarketBeverages• Net Sales:¥51,605 million (up 3.8% YoY)
• Operating Income:¥602 million (down 12.9% YoY)
• Operating Income Margin: 1.2% (down 0.2 percentage points)
Market Demand for beverages recovered due to good weather during thesummer, as the impact of stay-at-home policies implemented during the
COVID-19 pandemic diminished.
DNP As a result, segment sales increased overall thanks to a recovery inconvenience store sales on top of increased restaurant and online sales.

Cost of Sales/Selling, General and Administrative Expenses/
Operating Income
Cost of sales increased ¥30,066 million, or 2.9% year on year, to ¥1,081,284
million, and the gross profit margin fell 0.5 percentage points to 21.3%.
The price of raw materials and energy increased during the fiscal year underreview due to the emergence of geopolitical risks and instability in the global
supply chain, with raw material and energy costs minus the portion transferred toselling prices increasing by ¥11.7 billion year on year.
Selling, general and administrative expenses amounted to ¥230,692 million in
the fiscal period under review, a year-on-year increase of ¥4,552 million, or 2.0%.
The percentage of net sales remained unchanged at 16.8% from the previous
fiscal year.
As a result, operating income for the fiscal year under review fell ¥5,556
million, or 8.3% year on year, to ¥61,233 million. The operating margin fell 0.5
percentage points to 4.5%.

SGA Expenses to Net Sales(%)

20

Non-operating income totaled ¥26,695 million in the fiscal year under review, up¥8,143 million, or 43.9%, from the previous fiscal year. Non-operating expenses
totaled ¥4,267 million, up ¥176 million, or 4.3% year on year. As a result, net nonoperating income was ¥22,428 million, an increase of ¥7,968 million, or 55.1%
year on year.
Ordinary income totaled ¥83,661 million, up ¥2,412 million, or 3.0%, from theprevious year.
Income before income taxes and non-controlling interests totaled ¥119,734
million, down ¥7,157 million, or 5.6%, from the previous fiscal year, due in part tothe fact that extraordinary income posted for revision of the retirement benefit planin the previous fiscal year did not arise during the year under review, and also dueto the posting of impairment losses.

16.9

17.0

16.8

16.8

19

20

21

22

23

15

10

5

0

Non-operating Income (Expenses) and Income before Income Taxes andNon-controlling Interests

16.6

Operating Income Margin
(%)

5.0

5
4

4.5
4.0
3.6

3.7

3
2
1
0

19

20

21

22

23

Net Income Attributable to Parent Company Shareholders
Net income attributable to parent company shareholders totaled ¥85,693 million,
down ¥11,489 million, or 11.8%, from the previous fiscal year. Net income pershare was ¥321.32 (compared to net income per share of ¥355.84 in the previousyear).

Earnings (Loss) per Share
(¥)

400

355.84321.32300
235.18
200
89.32

100
0
-100

­118.22

19

84

20

21

22

23

DNP Integrated Report 2023

85

6 ｜ BUSINESS RESULTS/CORPORATE PROFILEManagement ʼs Discussion and Analysis

Total Assets(¥ billion)

Liquidity and Capital Resources
Cash Flow from Operating Activities

Cash Flow
2023.3
Cash flow from operating
activities (¥ million)

37,9942022.382,0292021.3
61,682

Free cash flow (¥ million)−25,021

12,973−39,20942,820−56,284

5,398

2022.32021.3

1,830,384

1,876,647

1,825,019

Total assets (¥ million)

100

Interest-bearing debt (¥ million)

147,817

154,362

158,555

Stockholders ʼ equity (¥ million)

1,087,504

1,091,861

1,043,977

93.9
82.0

80

69.0

Book value per share (¥)

61.7
38.0

40

19

20

21

23

22

4,158.46

4,057.98

In the consolidated cash flow in the fiscal year ended March 2023, net cash
provided by operating activities totaled ¥37,994 million, due mainly to ¥119,734
million in income before income taxes and ¥51,769 million in depreciation.
Net cash used in investing activities amounted to ¥25,021 million, mainly due
to payments of ¥50,322 million for the purchases of property, plant and equipmentand ¥11,804 million for the purchases of intangible assets.
Net cash used in financing activities amounted to ¥52,436 million, mainly due
to ¥25,866 million for the purchase of treasury shares and ¥17,142 million in
dividend payments.
As a result of these activities, cash and cash equivalents at the end of the
fiscal year in the consolidated cash flow statement totaled ¥258,329 million.
Free cash flow in the fiscal year under review, which is the sum of cash flowfrom operating activities and cash flow from investing activities, amounted torevenue of ¥12,973 million.

As of March 31, 2023, a total of 292,240,346 shares of common stock had been
issued, of which 30,724,570 shares, or 10.51% of the total, were held as treasury
stock. The total number of shares of treasury stock decreased by 17,450,544 fromthe previous year.

Capital Expenditures, Depreciation Expenditures,
Research and Development Expenditures, etc.

Capital expenditures
Free cash flow

Type ofsharesShares at
beginning offiscal year

Increase inshares during
fiscal year

Decrease inshares during
fiscal year

Shares atend offiscal year

Shares issued

Commonstock

317,240,346−

25,000,000

292,240,346

Treasury stock

Commonstock

48,175,114

7,619,932

25,070,476

30,724,570(¥ billion)

300

285.0

250

500

0

150
100
50

41.1

57.2

50.7

13.0

22

23

1,000

996.1

1,044.0

1,091.9 1,087.5

915.8

800
600
400
200
0

19

20

21

22

23

Book Value per Share
(¥)

4,500

4,058.0 4,158.5

4,000

3,716.9

3,500 3,300.5 3,260.4
3,000
2,500
2,000
1,500
1,000
500

19

20

21

22

23

ROE
(%)

10

9.1
7.9

7.3

8
6
4
2

2.6

0
-2
-4

−3.5

19

20

21

22

23

57.2

58.2

59.4

21

22

23

Equity Ratio
(%)

-50
-100

21

1,200

42.8

5.4

0

20

(¥ billion)

78.1

71.6

19

Stockholdersʼ Equity

Notes
1. The 25,000,000-share decrease in the number of shares of common stock issued is the result of a cancellation of treasury stock.
2. The 7,619,932-share increase in the number of shares of common stock held as treasury stock is the result of an increase of 7,616,500
shares due to a purchase of treasury stock by resolution of the Board of Directors and an increase of 3,432 shares due to a purchase of
odd-lot shares.
3. The 25,070,476-share decrease in the number of shares of common stock held as treasury stock is the sum of a decrease of 25,000,000
shares due to a cancellation of treasury stock, a decrease of 70,470 shares due to the disposal of treasury shares as restricted stockcompensation, and a decrease of 6 shares due to changes in ratios of equity held in equity method affiliates.

200

1,876.6 1,830.4

1,000

0

Capital Expenditures andFree Cash Flow

1,775.0 1,721.7 1,825.0

1,500

3,716.85

DNPʼs total assets at the end of the fiscal year under review amounted to¥1,830,384 million, down ¥46,263 million, or 2.5%, from the previous fiscal year.
Among current assets, cash and cash equivalents totaled ¥258,329 million,
down ¥35,032 million, or 11.9%, from the previous fiscal year. The sum of tradereceivables and contract assets came to ¥329,762 million, up ¥4,916 million, or1.5%. Inventories of merchandise and finished products, work in process, rawmaterials and supplies totaled ¥154,863 million, up ¥13,242 million, or 9.4%. As
a result, current assets totaled ¥802,995 million, down ¥1,818 million, or 0.2%.
Among fixed assets, tangible assets totaled ¥436,430 million, up ¥14,554
million, or 3.4%, from the previous fiscal year. Intangible fixed assets totaled¥30,360 million, up ¥2,613 million, or 9.4%. Investments and other assets totaled¥ 560,598 million, down ¥61,612 million, or 9.9%. As a result, fixed assets totaled¥1,027,389 million, down ¥44,445 million, or 4.1%.
Current liabilities totaled ¥398,571 million, down ¥7,537 million, or 1.9%, fromthe previous fiscal year. Long-term (fixed) liabilities totaled ¥283,568 million,
down ¥38,558 million, or 12.0%. As a result, total liabilities amounted to¥682,139 million, down ¥46,095 million, or 6.3%.
As of March 31, 2023, net assets totaled ¥1,148,245 million.
As a result, the equity ratio in the fiscal year under review was 59.4%, anincrease of 1.2 percentage points from the previous fiscal year.

20
0

Capital expenditures in the fiscal year ended March 2023, which included theredevelopment of the Tokyo Ichigaya area (where our head office is located) andpriority investment in strategic businesses, totaled ¥78,082 million, up ¥27,383
million, or 54.0%, from the previous fiscal year. By segment, capital expendituresin the Information Communication segment were ¥36,794 million, up ¥17,726
million from the previous year, and accounted for 47% of total capital expenditures.
The Lifestyle and Industrial Supplies segment was ¥23,517 million, up ¥1,948
million, and accounted for 30%. The Electronics segment was ¥13,522 million, up¥8,018 million, and accounted for 17%. The Beverages segment was ¥2,354
million, up ¥201 million, and accounted for 3%. Capital expenditures forcompany-wide assets totaled ¥1,895 million, down ¥510 million year on year, andaccounted for 3% of total capital expenditures. The necessary capital for the above
investments was covered by funds on hand.
Depreciation in the fiscal year ended March 2023 was ¥51,769 million, up¥614 million, or 1.2%, from the previous fiscal year. By segment, depreciation in
the Information Communication segment was ¥20,157 million, up ¥143 million
from the previous year, and accounted for 39% of total depreciation. The Lifestyleand Industrial Supplies segment was ¥18,416 million, around the same as in theprevious year, and accounted for 36%. The Electronics segment was ¥9,481
million, up ¥786 million and accounted for 18%. The Beverages segment was¥2,103 million, a slight increase, and accounted for 4%. Depreciation ofcompany-wide assets totaled ¥1,612 million, a decrease of ¥305 million year on
year, and accounted for 3% of total capital expenditures.
In addition, research and development expenditures for the fiscal year ended
March 2023 totaled ¥32,481 million, a decrease of ¥667 million on the
expenditures of the previous fiscal year (¥33,148 million).

2023.3(¥ billion)

60

Cash flow from investing
activities (¥ million)

2,000

Balance Sheet

80
−77.9

19

20

21

22

23

60

56.1

53.2

40
20
0

86

19

20

DNP Integrated Report 2023

87

6 ｜ BUSINESS RESULTS/CORPORATE PROFILEKey Financial Data for 11 Years Years ended March 31
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Change 2023/2022

1,446,607

1,448,550

1,462,118

1,455,916

1,410,173

1,412,252

1,401,506

1,401,894

1,335,440

1,344,147

1,373,209

2.2%

Statements of Operations (¥ million)
Net sales
Operating income

35,78050,09948,17445,472

31,411

46,37249,89856,27449,52966,78961,233-8.3%

Ordinary income

40,31853,28553,75952,651

36,74050,971

58,25963,78659,907

81,24983,661

3.0%

Income (loss) before income taxes

35,152

48,60851,062

54,841

39,83145,396(18,685)

102,719

46,401

126,891

119,734-5.6%

Net income (loss) attributable to parent company shareholders

19,21825,642

26,92433,58825,22627,501(35,669)

69,49825,08897,182

85,693-11.8%EBITDA

118,835

124,980

120,548

122,590

103,494

108,678

42,463

158,660

98,550178,781

172,203-3.7%

Total net assets

937,055

976,385

1,124,093

1,063,241

1,081,286

1,102,551

1,046,622

968,575

1,098,614

1,148,413

1,148,245-0.0%Interest-bearing debt

227,209

182,596

188,996

189,820

169,133

170,103

166,350

211,646

158,555

154,362

147,817-4.2%

Stockholders' equity

893,124

932,329

1,078,828

1,017,425

1,033,864

1,053,600

996,162

915,779

1,043,977

1,091,861

1,087,504-0.4%

1,578,976

1,574,754

1,809,462

1,718,636

1,741,904

1,794,764

1,775,023

1,721,724

1,825,019

1,876,647

1,830,384-2.5%

Cash flows from operating activities

100,498

120,10985,731

72,62971,94548,457

68,972

93,937

61,682

82,02937,994-53.7%Cash flows from investing activities(72,588)(58,371)(50,540)(60,883)

14,012

23,075(146,909)

191,057(56,284)(39,209)(25,021)–

Cash flows from financing activities(36,236)(80,038)(23,865)(47,166)(45,223)(42,771)(32,197)(41,281)(78,269)(57,752)(52,436)–

Free cash flow＊1

27,91061,73835,191

11,74685,957

71,532(77,937)

284,994

5,398

42,82012,973-69.7%

29.84

39.82

41.82

53.10

40.79

90.77

(118.22)235.1889.32

355.84321.32-9.7%

1,386.86

1,447.96

1,675.63

1,618.66

1,680.55

3,493.79

3,300.52

3,260.38

3,716.85

4,057.98

4,158.46

2.5%

32.00

32.00

32.00

32.00

32.00

48.00

64.00

64.00

64.00

64.00

64.00

–

Operating income

2.47

3.46

3.29

3.12

2.23

3.28

3.56

4.01

3.71

4.97

4.46

-0.51

EBITDA margin

8.21

8.63

8.24

8.42

7.34

7.70

3.03

11.32

7.38

13.30

12.54

-0.76

Net income

1.33

1.77

1.84

2.31

1.79

1.95

(2.54)

4.96

1.88

7.23

6.24

-0.99

Balance Sheets (¥ million)

Total assets
Cash Flow Statements (¥ million)

Per Share Data (¥)＊2
Net income (loss) - primary
Net assets
Cash dividend＊3
As a Percentage of Net Sales (%)

Financial Ratios
ROE (%)

2.18

2.81

2.67

3.20

2.46

2.63

(3.48)

7.27

2.56

9.10

7.86

-1.24

ROA (%)

1.21

1.63

1.59

1.90

1.46

1.56

(2.00)

3.97

1.41

5.25

4.62

-0.63

Equity ratio (%)

56.56

59.20

59.62

59.20

59.35

58.70

56.12

53.19

57.20

58.18

59.41

1.23

PER (times)

29.70

24.84

27.94

18.84

29.43

24.22

–

9.78

25.97

8.09

11.53

–

PBR (times)

0.64

0.68

0.70

0.62

0.71

0.63

0.80

0.71

0.62

0.71

0.89

–

EV/EBITDA (times)

4.92

4.93

6.02

5.23

6.69

5.30

16.07

2.94

4.97

3.49

4.92

–

PCFR (times)

5.74

6.43

8.00

6.36

8.52

7.48

34.12

5.21

8.57

5.22

7.05

–

Dividend yield (%)

3.61

3.24

2.74

3.20

2.67

2.91

2.42

2.78

2.76

2.22

1.73

-0.49

–

–

–

19,99814,99914,998–59,999–29,99925,854–

Dividend payout ratio (%)

107.27

80.38

76.54

60.28

78.47

70.52

–

27.21

71.66

17.99

19.92

–

Total return ratio (%)

107.33

80.43

76.59

119.48137.57

124.78–113.11

71.66

48.64

49.90

–

Capital Expenditures＊5

88,31563,46555,024

97,26557,08559,558

41,10357,162

71,64950,69978,08254.0%

R&D Expenditures

30,82130,82031,74931,827

31,37633,21033,78633,60332,62333,14832,481-2.0%

Depreciation

80,20073,45967,03465,31061,461

61,071

59,08154,47550,89351,15551,769

1.2%

Valuations (against share price on March 31)

Returns to Shareholders
Values of shares repurchased (¥ million)＊4

OthersLong-term credit rating (R&I)
Foreign ownership (%)

AA

AA

AA−

AA−

AA−

AA−

AA−

AA−

AA−

AA−

AA−

–

21.12

24.41

25.54

22.01

23.91

24.58

24.85

24.14

23.64

23.16

27.38

–

*1 Free cash flow = net cash from operating activities + net cash from investing activities*2 As of October 1, 2017, two shares of common stock were consolidated into one share of common stock.
*3 Cash dividends per share of ¥48.00 for the fiscal year through March 2018 is the combined total of interim cash dividends per share of ¥16.00 and year-end cash dividends per share of ¥32.00.
*4 Treasury stock acquired through requests for the purchase of odd-lot shares is not included.
*5 It includes investments in intangible assets.

88

DNP Integrated Report 2023

89

6 ｜ BUSINESS RESULTS/CORPORATE PROFILE
Printing Co., Ltd. and Consolidated Subsidiaries
ended March 31
Non-financial Data DaiYearsNippon

Intellectual Capital Data

Human Capital Data
Total number of employees(by segment)

Number of overseas Group company
employees (by area)(persons) (As of March 31, 2023)(persons) (As of March 31, 2023)

Corporate
Beverages

Number of Japanese patents held

Eco-friendly products and services
Super Eco-Products
Total sales (¥ billion)
Ratio of total sales (%)

Europe2,363

Environmental Data

200

16,000

449

1,225

180

14,000163.1
12,143

12,392 12,226

Electronics
12,0003,825America

160

11,525 11,726

36,246persons

80

40
2,000

10.0
8

6.5
4

0

19

Asia

18,342

5.7

87.5

12

20

0

Information
Communication

10,491

80.0

60
4,000

Lifestyle andIndustrial Supplies

11.9

100

6,000

persons

134.8

120

8,000

3,692

16

140

10,000

769

20

20

21

22

23

0

20

2,474

21

23

22

Amount of resource recycling
Amount of resource recycling (1,000 tons)
Resource recycling ratio (%)

Percentage of female managers(Dai Nippon Printing)

Lost time work accident occurrence ratio

(%)

9.0

8.4

8.0

1,000

961

1.00

837
800

80

801

0.80

763

60

60

0.65

600

0.19

0.20

4.0

50

0.69

0.21

0.15

0.63

80

68

51.7

54.7

56.3

60
50

0.60

0.60

0.56

400

0.40

3.0
0.10
2.0

64

71

58.0

0.25

5.6

5.0

200

0.20

40

40

30

30

20

20

10

10

0.05

1.0

0

0
0

0

19

90

100

100

916

0.30

0.29

6.6
6.1

6.0

GHG emissions (1,000 t-CO2)
Emissions per-unit value (t-CO2) /million yen)

0.33
0.30

7.4

7.0

0.35

Resource recycling ratio: Amount of resource recycling ÷ amount of undesired
materials excluding paper as valuable waste × 100
Amount of resource recycling: Amount of undesired materials excluding paper as valuable
waste which have been recycled by means of material recycling or chemical recycling
Amount of undesired materials excluding paper: Amount of undesired materials (waste+ valuable waste) excluding paper as valuable waste, which is 100% recycled, and theamount of sludge subject to on-site intermediate processing

GHG emissions(Including international operations)

20

21

22

23

0.00

0

19

20

21

22

23

19

20

21

22

23

Amount ofundesired materials
excluding paper

117

117

125

117

16

21

22

23

DNP Integrated Report 2023

91

6 ｜ BUSINESS RESULTS/CORPORATE PROFILE

Major Subsidiaries and Affiliates (As of March 31, 2023)
Printing

Capital(¥ million)

Ownership ratio ofvoting rights (%)

Information Communication

Ownership ratio ofvoting rights (%)

400(CNY1,000)
39,301(DKK1,000)
135,000

100.0
100.0
(100.0)
100.0

490
300
100
(TWD1,000)
2,198,185(USD1,000)
180,000(EUR 1,000)
47,200

65.0
100.0
100.0
49.9

5,483
2,000
100
626
500
300
100
100
70
50
40
32
30
10
(USD1,000)
62,164(USD1,000)
100(USD1,000)
8,780(SGD1,000)
125,898

20.6
100.0
100.0（100.0）
100.0
33.4
100.0
100.0
94.3
100.0
97.0
100.0
51.1
66.6
50.0
100.0
(7.2)
100.0
(100.0)
100.0

350
100
100
100
100
100
100
90
30
20
10
10

100.0
100.0
100.0（90.0）
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0（100.0）
100.0Electronics

Publishing
Maruzen CHI Holdings Co., Ltd.
TRC Library Service Inc.
MARUZEN-YUSHODO Company, Limited
MARUZEN PUBLISHING CO., LTD.
MaruzenJunkudo Bookstores Co., Ltd.
Maruzen Research, Inc.
BOOKOFF GROUP HOLDINGS LIMITEDDNP Book Factory Co., Ltd.
DNP Media Art Co., Ltd.
2Dfacto, Inc.
MobileBook.jp Inc.
Kyoiku Shuppan Co., Ltd.
VISUALJAPAN Inc.*
Oguchi Book Binding & Printing Co., Ltd.
Tien Wah Press（Pte.）Ltd.

Capital(¥ million)

Display Components
Investment in operating companies
Sale of books, creation of data, library operation support and consulting
Education and academic businesses; retail stores; publishing; commercial facility/store interiors, etc.
Publishing
Sale of books, magazines and stationery
Production, intermediation, sales and browsing services for e-books, etc.
Management of group companies and related business
Offset printing and bookbinding
Prepress and media production
Operation of hybrid bookstore services
Electronic publishing and distribution platform services; e-book distribution service
Editing and sale of textbooks and educational materials
Development, sale and maintenance of computer software
Bookbinding
Film making, printing and bookbinding

3,000
266
100
50
50
50
100
200
180
100
100
60
50
49
(SGD1,000)
4,600

55.0
55.0（55.0）
55.0（55.0）
55.0（55.0）
55.0（55.0）
55.0（55.0）
16.3（9.8）
100.0
100.0
100.0
63.8
48.3
87.0
100.0（15.2）
100.0

DNP Precision Devices Himeji Co., Ltd.
DNP International Trading (Shanghai) Co., Ltd.*

Production of display-related components
Sale of printed matter, etc.

DNP Denmark A/S

Production and sale of precision electronic components

INTELLIGENT WAVE INC.
DNP Graphica Co., Ltd.
DNP CoArise Co., Ltd.
DNP Communication Design Co., Ltd.
DNP Data Techno Co., Ltd.
DNP Digital Solutions Co., Ltd.
DNP SP Innovation Co.,Ltd.
DNP Planning Network Co., Ltd.
DNP HyperTech Co., Ltd.
NBC Co., Ltd.*DNP Media Support Co., Ltd.
MK Smart Joint Stock Company

Development and maintenance of software
Offset printing and bookbinding
BPO business and BPO consulting business
Planning, production, film making and plate making
Production and sale of business forms and plastic cards
Planning, design, maintenance and operation of information systems
Planning and production of promotional materials
Planning and production of printed materials
Production and sale of computers and peripheral devices; development, production and sale of software
Mailing of printed matter, etc.
Production and sale of all types of printed matter
Production and sale of cards, and BPO business and DTP business

50.8
100.0
100.0
100.0
100.0
100.0
100.0
95.0
100.0
100.0（100.0）
95.0
36.3

PT.Wahyu DNP Bureau

Card-issuing services

843
100
100
100
100
100
80
50
40
20
10
(VND1,000,000)
100,000(USD1,000)
2,000

100
100
90
60
(CNY1,000)
24,000(MYR1,000)
190,000(USD1,000)
71,980(USD)
0.01(EUR1,000)
2,408(RUB1,000)
7,622(EUR1,000)
3,588(EUR1,000)
1,000

100.0
100.0
100.0（100.0）
100.0
100.0
(100.0)
100.0

430
300
200
100
80
75
(THB1,000)
200,000(USD1,000)
31,500(USD1,000)
26,000

84.0
100.0
90.0
100.0
100.0
50.0
100.0
100.0
(20.0)
51.0

300
300
200

100.0
50.0
100.0

Beverages

Electronic Devices
DT Fine Electronics Co., Ltd.
DNP Fine Optronics Co., Ltd.
DNP LSI Design Co., Ltd.
Photronics DNP Mask Corporation

Production and sale of precision electronic components
Production of precision electronic components
Design and production of drawings used in semiconductor production
Production and sale of semiconductor photomasks

Photronics DNP Mask Corporation Xiamen

Production and sale of semiconductor photomasks

DNP Photomask Europe S.p.A.

Production and sale of semiconductor photomasks

49.9(49.9)
80.6

Information Innovation

45.0

Imaging Communication
DNP Imaging Comm Co., Ltd.
DNP Photo Imaging Japan Co., Ltd.
DNP hollyhock Co., LTD.
DNP ID System Co., Ltd.
DNP Imaging Communication (Shanghai) Co., Ltd.*

Production and processing of thermal mass transfer media and dye-sublimation media
Sale of photo-related products; operation of ID photo booths and automated commemorative photo booths
Operation of photo studio and related equipment services
Sale of government-affiliated smart card identification equipment and materials
Sale of printed matter (Products and services of the Imaging Communication business)

DNP Imagingcomm Asia Sdn. Bhd.

Colorvision International Inc.

Production, processing and sale of thermal mass transfer media and dye-sublimation media;
sale of photo-related products
Production, processing and sale of thermal mass transfer media and dye-sublimation media;
sale of photo-related products
Operation of a photography distribution system for amusement facilities

DNP Photo Imaging Europe SAS

Sale of photo-related products

DNP Photo Imaging Russia, LLC

Sale of photo-related products

Sharingbox SA

Providing functional photo booths for event business

DNP Imagingcomm Europe B.V.

Processing and sale of thermal mass transfer media and dye-sublimation media

DNP Imagingcomm America Corporation

100.0(100.0)100.0(100.0)100.0
100.0(100.0)100.0(100.0)100.0

Lifestyle and Industrial Supplies
Packaging
Lifescape Marketing Co., Ltd.
DNP Technopack Co., Ltd
Sagami Yoki Co., Ltd.
Aseptic Systems Co., Ltd.
DNP Hoso Co., Ltd
DNP-SIG Combibloc Co., Ltd.
Dai Nippon Printing (Thailand) Co., Ltd.*

Research, compilation and provision of various kinds of information about purchasing and consumption of foods and beverages
Production, printing and processing of packaging materials
Production of plastic tubes
Manufacturing and sale of aseptic filling systems and related consulting services
Filling and processing of packages
Sale of sterile paper containers and filling equipment for beverages and liquid foods
Sale of packaging materials

DNP Vietnam Co.,Ltd.

Production and sale of packaging materials

PT DNP Indonesia

Production and sale of packaging materials

Other
BIPROGY Inc.
DNP Fine Chemicals Co., Ltd.
DNP Fine Chemicals Utsunomiya Co., Ltd.
DNP Logistics Co., Ltd.
DIC Graphics Corporation
DNP Art Communications Co., Ltd.
DNP Engineering Co., Ltd.
DNP Trading Co., Ltd.
CYBER KNOWLEDGE ACADEMY Co., Ltd.
DNP Shikoku Co., Ltd
CP Design Consulting Co., Ltd.*CAFI Corporation*
At Table Co., Ltd.*DNP Dexerials Consulting Co., Ltd.
DNP Corporation USA

Development and sale of software; computer system support services
Production and sale of chemical products
Manufacturing and sale of chemical materials, pharmaceutical ingredients, etc.
Packing, shipping, freight forwarding and warehousing operations
Production and sale of printing ink
Planning, production and sale of artistic images and videos
Manufacturing, repair and sale of printing equipment and other machinery
Buying and selling of printing paper and various other types of merchandise
Operation of academy for training and developing personnel to defend against targeted cyber attacks
Film making, printing, bookbinding; production and sale of packaging
Personal information protection and risk management consulting
Remote diagnostic imaging service
Research, consulting and planning related to production and sales promotions for supermarkets and other retailers
Business planning and proposals
Investment in operating companies

DNP Holding USA Corporation

Investment in operating companies

DNP Business Consulting（Shanghai) Co., Ltd.*

Study of Chinese market and business feasibility

DNP Asia Pacific Pte. Ltd.

Coordination of DNP business operations in Southeast Asia region

Personal Welfare, Facility Service and Others
DNP Facility Services Co., Ltd
DNP Information Systems Co., Ltd.
DNP Metro Systems Co., Ltd.
DNP Hokkaido Co., Ltd.
DNP Tohoku Co., Ltd.
DNP Chubu Co., Ltd.
DNP Nishi Nippon Co., Ltd.
DNP Human Services Co., Ltd.
DNP Accounting Services Co., Ltd.
DNP Techno Research Co., Ltd.*Sanshi Kosan Co., Ltd.
DNP Business Partners Co., Ltd.*

Building maintenance, cleaning and security; operation of sports and welfare facilities
Design, development and maintenance of information systems; production and sale of software
Planning, design, development, maintenance and support operations for information systems
General affairs, accounting work and other business services
General affairs, accounting work and other business services
General affairs, accounting work and other business services
General affairs, accounting work and other business services
Planning and management related to personnel plans
Accounting agency and consulting
Studies related to patents
Lease and management of real estate, etc.
Office support business

Overseas Sales
DNP Korea Co., Ltd.*Sale of precision electronic components

DNP Taiwan Co., Ltd.

Sale of precision electronic components

DNP Singapore Pte. Ltd.*Sale of printed matter, precision electronic components and decorative materials

DNP America, LLC

Sale of printed matter, precision electronic components and decorative materials

DNP Europa GmbH*

Sale of printed matter and decorative materials

Living Spaces
DNP Lifestyle Materials Marketing Co., Ltd.
DNP Ellio Co., Ltd.
DNP Living Space Co., Ltd.

Sale of decorative products
Printing and processing of steel, aluminum and other metals
Production, printing and processing of decorative products

Mobility
DNP Tamura Plastic Co., Ltd.
NTEC Co., Ltd.
DNP Living Space & Mobility (Shanghai) Co., Ltd.*

Manufacturing and sale of automotive accessories
Manufacturing of molds
Sale of printed matter (Products and services of Living Space and Mobility business)

60
5(CNY1,000)
10,000100.0
89.0（89.0）
100.0(100.0)Industrial high-performance materials
DNP High-performance Materials Co., Ltd.

92

Production of lithium-ion battery components

200

100.0

100.0

(KRW1,000)
800,000(TWD1,000)
10,000(SGD1,000)
350(USD1,000)
100(EUR1,000)
92

100.0
100.0
100.0
100.0
(100.0)100.0

Beverages
Hokkaido Coca-Cola Bottling Co., Ltd.

Production and sale of beverages

2,935

59.7（ 2.2 ）Notes: 1. Voting rights ownership ratios (in parentheses) indicate the percentage of shares owned through DNPʼs subsidiaries or affiliates.
2. Companies with an asterisk are neither consolidated nor accounted for by the equity method.

DNP Integrated Report 2023

93

6 ｜ BUSINESS RESULTS/CORPORATE PROFILE

Our Products and Services
Smart Communication

1

2

7

8

3

4

10

11

5

6

12

13

14

• Imaging communication
1 Dye-sublimation thermal transfer printing media andthermal mass transfer printing media
2 Photo-related services and solutions
3 Dye-sublimation photo printer• Information Security
4 BPO
5 Smart cards and magnetic cards
6 Identity verification service
7 Transparent hologram ribbon• Content & XR communication
8 Metaverse
9 Virtual reality

9

仁和寺「金堂」内陣のVR• Marketing
10 Digital flyer• Publishing
11 Books and magazines 12 Hybrid bookstore network
13 Maruzen & Junkudo Bookstore in Shibuya (Tokyo)

Shibuya Miyashita Park
powered by metaverse• Education
14 Educational ICTLife & Healthcare

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

• Mobility and industrial high-performance materials
15 Battery pouch for lithium-ion batteries
16 Photovoltaic module components
17 Multifunctional insulation box
18 Curved resin glazing
19 Interior coverings for railway cars (Hokuriku Shinkansen)• Medical & healthcare
20 Regenerative medicine(providing 3D human intestinal organoids “mini-guts” )21 Remote image diagnosis• Packaging
22 Plant-based packaging materials
23 Mono-material packaging materials
24 Transparent vapor deposition film
25 Super high-barrier paper packaging materials
26 PET plastic bottles 27 Aseptic filling systems for PET plastic bottles• Living spaces
28 Decorative film for exterior
29 Antiviral steel plates
30 Aluminum panels for interior/exterior• Beverages

Electronics

With film,
no backgroundreflection

Before• Digital interfaces
31 Optical film used for displays
32 OLED display-related products
33 Large-size photomask for displays
34 Viewing angle control film for in-vehicle displays(right: with film, no background reflection)
35 Light control film
36 Encoder disks
37 High visibility pattern light
38 System components for LCD backlight• Semiconductors
39 Photomask for semiconductors
40 Master template for nanoimprinting
41 Hard disk drive suspension
42 Lead frame for compact semiconductor package
43 Diffractive optical element (DOE)
44 Vapor chamber
45 Micro electro mechanical systems (MEMS) products

94

After

39

40

41

42

43

44

45

DNP Integrated Report 2023

95

6 ｜ BUSINESS RESULTS/CORPORATE PROFILE

Investor Information (As of March 31, 2023)

Dai Nippon Printing Co., Ltd.
Share Price Evolution (Tokyo Stock Exchange)＊1

Head Office: 1-1, Ichigaya-Kagacho 1-chome, Shinjuku-ku, Tokyo 162-8001, Japan
Established: 1876
Number of Employees (consolidated): 36,246
Paid-in Capital: ¥114,464 million
Number of Common Stocks: Authorized: 745,000,000 shares
Issued: 292,240,346 shares
Number of Trading Unit Shareholders (own 100 or more shares): 23,430
Stock Exchange Listing: Tokyo Stock Exchange

TOPIX

Increase (%)

100
4,000
80
3,500

(thousands)

SharesPercentage

The Master Trust Bank of Japan, Ltd. (Trust Account)
Custody Bank of Japan, Ltd. (Trust Account)
The Dai-ichi Life Insurance Co., Ltd.
Employeesʼ Shareholding Association
ELLIOTT INTERNATIONAL LP
Mizuho Bank, Ltd.
Nippon Life Insurance Company
STATE STREET BANK WEST CLIENT ‐ TREATY 505234
JP MORGAN CHASE BANK 385781
THE LIVERPOOL LIMITED PARTNERSHIP

47,932
16,596
8,894
7,771
6,477
5,706
4,735
4,256
3,463
3,048

18.33
6.35
3.40
2.97
2.48
2.18
1.81
1.63
1.32
1.17

60

3,000

40

(%)

20

2,500

0

2,000

−20

1,500

21

22

Fiscal Year-end: March 31
Independent Auditor: ARK LLC
Annual Meeting of Shareholders:
The annual meeting of shareholders of DNP is normallyheld in June each year in Tokyo, Japan.
Investor Relations:
Dai Nippon Printing Co., Ltd.
IR and Public Relations Division
Investor Relations Office
1-1, Ichigaya-Kagacho 1-chome, Shinjuku-ku,
Tokyo 162-8001, Japan
Tel: +81-3-6735-0124
Fax: +81-3-5225-8239
Web Site: https://www.global.dnp

23＊1 Index 100 = March 31, 2020

Total Shareholder Return＊2 (TSR)
Fiscal year ended

Note: 1. The ownership stakes are based on the total number of shares outstanding less treasury shares (261,526,877).
2. The number of treasury shares is excluded from the figures above.

2019.3

DNP (%)TOPIX (%)

2020.32021.32022.32023.3123.34110.51114.24142.58183.12（94.96）（85.94）（122.15）（124.57）（131.82）＊2 Represents total investment return to shareholders, combining capital gains and dividends. The TSR calculation method is as follows: (Stock price at the end of each fiscal
year + the total amount of dividends per share up to each fiscal year starting from four fiscal years prior to the fiscal year ended March 31, 2023 ÷ the stock price at theend of the fiscal year ended March 31, 2018.)

Voting Rights (As of March 31, 2023)

Number of stocks(stocks)

Type

Stocks with no voting rights
Stocks with limited voting rights (treasury stocks, etc.)
Stocks with limited voting rights (other)
Stocks with voting rights(treasury stocks, etc.)(Treasury held stocks) Common stocks

Stocks with voting rights (other)
Stocks with less than trading units
Outstanding shares
Total voting rights of stockholders

Common stocks
Common stocks

Dai Nippon Printing Co., Ltd.
Total

Number of voting rights(rights)

―

―

―

―

―

―

30,713,400―

261,274,800
252,146
292,240,346

2,612,748―

2,612,748

Treasury Stocks (As of March 31, 2023)
Holder96

Nikkei Average

DNP Stock Price (yen)Major Shareholders (As of March 31, 2023)

Stock Code: 7912
Administrator of Shareholder Register:Mizuho Trust & Banking Co., Ltd.
Stock Transfer Agency Department
3-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan
American Depositary Receipts:
Ratio (ADR:ORD): 2:1
Exchange: OTC (Over-the-Counter)
Symbol: DNPLYCUSIP: 233806306
Depositary:
The Bank of New York Mellon
240 Greenwich Street, New York, NY 10286, U.S.A.
Telephone: (201) 680-6825
U.S. toll free: 888-269-2377 (888-BNY-ADRS)URL: http://www.adrbnymellon.com/

DNP(Between April 1, 2021 and March 31, 2023)――

No. of stocks held

Percentage of holding to
No. of outstanding shares

30,713,400
30,713,400

10.51
10.51

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6 ｜ BUSINESS RESULTS/CORPORATE PROFILE

Message from the Director in Charge

Dialogues with Shareholders and Investors
Policy for initiatives

The DNP Group will seek to rapidly achieve and maintain a PBR of more than 1.0X and aim for further improvement, by sustainably enhancing its
corporate value. To do so, we are expanding opportunities such as financial results briefings and IR meetings attended by the president and other senior
management personnel, to encourage constructive dialogues with shareholders and investors. The results of these dialogues are also shared with theBoard of Directors and utilized in management decision-making.
DNP personnel responsible for dialogues

Based on the instructions of the president, etc., the director in charge supervises the overall corporate response to dialogues with shareholders andinvestors, which consists of individual responses by the president, directors, executive officers and the IR and Public Relations Division.
Number of dialogues

1. Individual IR meetings

FY2022: approx. 160
FY2021: approx. 150

2. Individual SR meetings

FY2022: 14
FY2021: 16

Main dialogue participants

Analysts, fund managers, engagement managers, voting right holders, etc., primarily from institutional investors in Japan and overseas
Main dialogue themes

Business strategies to improve profitability, financial strategies to improve capital efficiency, non-financial strategies to enhance sustainability,
shareholder returns policy, promotion of information disclosure and strengthening of corporate governance, etc.
Items incorporated based on dialogues and subsequent feedback

Hirofumi Hashimoto, Managing Director• Disclosure of quantitative medium- to long-term management-related targets (ROE 10%, PBR of 1.0X or greater, etc.)• Expanding disclosure of information relating to particular focused business areas, etc.

Main IR activities• General Meeting of Shareholders: once a year • Financial results briefings: twice a year • Sustainability briefings: once a year • Company
briefings for individual investors: irregular • IR meetings: 150–170 companies per year (domestic and overseas) • Issuance of IR-related tools:
integrated reports, shareholder newsletters, etc. • Information disclosure on IR website

Recognition from society (As of June 30, 2023)

DNP has been highly evaluated by ESG evaluation agencies throughout the world and has been selected for inclusion in numerous ESG indexes in Japanand overseas.
For example, DNP has been selected for the FTSE4Good Global Index for the 23rd consecutive year since 2001, and for the MSCI ESG Leaders
indexes for the 7th consecutive year since 2017.
In addition, in 2022 we were certified by CDP, an international non-profit organization that provides environmental information disclosure systems,
as an “A-List ” company ̶ the highest rating for our efforts in addressing climate change. We have also received a silver rating from EcoVadis, which
evaluates the sustainability of business enterprises.
ESG indexes
FTSE4Good Global Index

98

Recognition regarding sustainability
FTSE Blossom Japan Index

FTSE Blossom Japan Sector Relative Index

MSCI ESG Leaders indexes

MSCI Japan ESG Select Leaders Index

MSCI Japan Empowering Women (WIN) Index

THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon
Printing BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon
Printing BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

THE INCLUSION OF Dai Nippon Printing IN ANY MSCI INDEX, AND THE USE OF MSCILOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Dai Nippon
Printing BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOSARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Euronext Vigeo Eiris World Index 120

Morningstar Japan ex-REIT Gender Diversity Tilt Index

S&P/JPX Carbon Efficient Index

We will create diverse opportunities for
dialogue, fulfill our responsibilities fortimely and appropriate explanation andwork to create a better future together
with our stakeholders.

CDP A LIST

EcoVadis Sustainability Rating

DX Brand 2023

At DNP, we always value Taiwa (dialogues) with many stakeholders as opportunities to create newvalue. In particular, we are working to increase opportunities for dialogue with shareholders andinvestors, such as through day-to-day IR meetings, various briefings and general meetings ofshareholders.
In the fiscal year ended March 2023, in addition to semiannual financial results briefings, we helda sustainability briefing in November 2022, and a briefing session in March 2023 to explain theoutline of the new medium-term management plan, in response to the DNP Group's BasicManagement Policy announced in February 2023. The frank opinions received at these briefings will
be a great asset for DNP itself to create a better future through collaboration with stakeholders.
In addition, in order to deepen the level of dialogue and cooperation and make them more fruitful,
we are working to disclose DNPʼs efforts to increase corporate value by utilizing financial andnon-financial capital in an integrated manner through various information media. As well as
communicating a variety of content on our corporate website in a timely manner throughout the year,with the cooperation of both internal and external stakeholders, we also plan, edit, and publish aquarterly shareholder newsletter (DNP Report), quarterly reports, and annual Integrated Report,
annual Environmental Report and annual Securities Report, etc.
In the DNP Group Integrated Report 2023, we reflected on stakeholder feedback and worked tosolve the following three issues.
• Clarifying details of DNPʼs unique competitive edge and specific long-term strategies• Identifying appropriate management indicators and strategies to achieve ROE and other targets• Linking sustainability-related themes with business strategies and clarifying initiatives toimprove corporate value with an awareness of material issues
In response to these issues, we have worked to enhance the content of the report, focused primarilyon the medium-term management plan for fiscal 2023-2025. We aim to continue deepening the levelof our communication with you going forward, and hope for your continued guidance and support in
the future.

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