Consolidated Financial Results for the Fiscal Year Ended March 31, 2011 [J-GAAP]May 13, 2011

Company Name:

Dai Nippon Printing Co., Ltd.

Stock exchange listings:
Tokyo, Osaka
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Yoshio Kanbe, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
General meeting of shareholders:June 29, 2011
Dividend payment date:June 30, 2011
Securities report issuing date:June 29, 2011
Preparation of earnings presentation material:
None
Holding of earnings announcement:
None*Amounts under one million yen have been rounded down.

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

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2011

1,589,373

0.4

67,8182.0

62,786(8.8)

25,032

7.5

Year ended March 31, 2010

1,583,382(0.1)

66,51344.0

68,841

45.3

23,278‐

Note: Comprehensive income: Year ended March 31, 2011: ¥12,474 million ((67.2)%)
Year ended March 31, 2010: ¥37,999 million ( - %)Net Income per
Share

Diluted Net Income
per Share

ROE

Ordinary
Income toTotal Assets

Operating
Income to
Net Sales

Yen

Yen

%

%

%

Year ended March 31, 2011

38.86

―

2.7

3.8

4.3

Year ended March 31, 2010

36.13

‐

2.6

4.4

4.2

Reference: Equity in earnings or losses of affiliates: Year ended March 31, 2011: ¥(412) million
Year ended March 31, 2010: ¥(102) million(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
per Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2011

1,649,784

952,44055.1

1,410.44

As of March 31, 2010

1,618,853

956,86356.6

1,422.34

Reference: Stockholdersʼ equity as of March 31, 2011: ¥908,521 million

As of March 31, 2010: ¥916,324 million(3) Consolidated cash flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents at Endof the Year

Million yen

Million yen

Million yen

Million yen

As of March 31, 2011

140,053(82,561)

15,185222,056

As of March 31, 2010

140,574(120,683)

13,126

151,709

2. Dividends
Dividends per Share (Yen)First
SecondThird
quarter-end quarter-end quarter-end

Year-end

Annual

Total
Dividends(Annual)(Million yen)

Dividend
Payout Ratio(Consolidated)(%)

Dividends to
Net Assets
Ratio(Consolidated)(%)

Year ended March 31, 2010

‐

16.00

‐

16.00

32.00

20,63388.6

2.3

Year ended March 31, 2011

‐

16.00

‐

16.00

32.00

20,63082.3

2.3

Year ending March 31, 2012

‐

‐

‐

‐

‐

(Forecast)‐

Note: The dividend forecast for the year ending March 31, 2012 is pending.

3. Consolidated forecasts for the year ending March 31, 2012
DNP will announce forecasts when disclosure is possible because the impact of the Tohoku – Pacific
Ocean Earthquake on March 11, 2011 on consolidated earnings for the year ending March 31, 2012 isdifficult to rationally estimate at the present time.
4. Other information(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries
resulting in a change in the scope of consolidation): None
(2) Changes in accounting policies, procedures and methods of presentation for preparing theconsolidated financial statements
1) Changes due to revision of accounting standard, etc.: Yes
2) Changes due to other reasons: None
Note: Please refer to page 29, “(7) Changes in the basis of presenting consolidated financial statements”
for further details.
(3) Number of common shares issued and outstanding
1) Number of common shares outstanding at
end of each period (including treasury
shares)2) Number of treasury shares at end of eachperiod3) Average number of shares outstanding
during the period

As of March 31,
2011

700,480,693
shares

As of March 31,
2010

700,480,693
shares

As of March 31,
2011

56,338,163
shares

As of March 31,
2010

56,241,763
sharesYear ended
March 31, 2011

644,187,752
sharesYear ended
March 31, 2010

644,314,513
shares(Reference) Non-consolidated financial results
1. Non-consolidated financial results for the year ended March 31, 2011
(1) Non-consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Year ended March 31, 2011

1,076,434(0.9)

14,37023.5

30,877(27.0)

17,118

69.1

Year ended March 31, 2010

1,086,701(1.7)

11,633(2.8)

42,278

11.9

10,121―Net Income per
Share

Diluted Net
Incomeper Share

Yen

Yen

Year ended March 31, 2011

26.55

‐

Year ended March 31, 2010

15.70

‐

(2) Non-consolidated financial position
Total Assets

Net Assets

Net Assets per
Share

Equity Ratio

Million yen

Million yen%

Yen

As of March 31, 2011

1,314,214

686,674

52.2

1,065.16

As of March 31, 2010

1,270,358

697,53954.9

1,081.85

Reference: Stockholdersʼ equity as of March 31, 2011: ¥686,674 million

As of March 31, 2010: ¥697,539 million* Presentation of audit status
These consolidated financial results are exempt from auditing procedures based on the Financial
Instruments and Exchange Act. The financial statements are being audited based on the Financial
Instruments and Exchange Act at the time of the disclosure of these consolidated financial results.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was prepared. Actual results
may differ significantly due to a variety of factors.
See the “Analysis of operating results” on pages 2–3 for information about earnings forecasts.

Contents
1. Operating results.................................................................................................................................... 2(1) Analysis of operating results ............................................................................................................. 2(2) Analysis of financial position ............................................................................................................. 4(3) Basic policies regarding the allocation of profits and dividends for the year ended March 31, 2011and year ending March 31, 2012 ........................................................................................................... 6(4) Business risks ................................................................................................................................... 6
2. Information on the Dai Nippon Printing Group (DNP Group) ................................................................. 93. Management policies ........................................................................................................................... 13(1) Core policies................................................................................................................................... 13(2) Medium- and long-term management strategy and key issues...................................................... 13
4. Consolidated financial statements ....................................................................................................... 17(1) Consolidated balance sheets ......................................................................................................... 17(2) Consolidated statements of income and comprehensive income .................................................. 19(3) Consolidated statements of changes in net assets ........................................................................ 21(4) Consolidated statements of cash flows .......................................................................................... 24(5) Notes on premise of a going concern............................................................................................. 26(6) Basis of presenting consolidated financial statements................................................................... 26(7) Changes in the basis of presenting consolidated financial statements .......................................... 29(8) Changes in presentation methods.................................................................................................. 30(9) Additional information ..................................................................................................................... 30(10) Notes regarding consolidated financial statements ...................................................................... 31[Consolidated balance sheets] ......................................................................................................... 31[Consolidated statements of income] ............................................................................................... 31[Consolidated statements of comprehensive income] ...................................................................... 31[Consolidated statements of changes in net assets] ........................................................................ 31[Segment information, etc.]............................................................................................................... 33[Per share information] ..................................................................................................................... 37
5. Non-consolidated financial statements ................................................................................................ 38(1) Non-consolidated balance sheets .................................................................................................. 38(2) Non-consolidated statements of income ........................................................................................ 41(3) Non-consolidated statements of changes in net assets ................................................................. 42(4) Notes on premise of a going concern............................................................................................. 45
6. Other information ................................................................................................................................. 45(1) Changes in directors and officers (as of June 29, 2011) ................................................................ 45

1

1. Operating results(1) Analysis of operating results1) Operating results for the year ended March 31, 2011
Economic conditions in Japan remained challenging during the year ended March 31, 2011. Despitesome signs of recovery driven by overseas economic growth, especially in emerging countries, theeconomy was affected by a stronger yen, rising crude oil prices, and high unemployment. Additionally,
the Tohoku – Pacific Ocean Earthquake in March 2011 could possibly have a very large impact on theJapanese economy, making the future outlook even more uncertain.
The printing industry continued to face a difficult business environment. Order prices declined in
response to stiffer competition prompted by weak consumer spending and corporate advertising
spending. The earthquake also weakened demand further at the end of the fiscal year.
In this environment, the DNP (Dai Nippon Printing Co., Ltd.) Group sought to aggressively develop
its business and deliver products, services, and solutions tailored to the needs of its customers,
based on its P&I Solutions business vision (P&I stands for“printing technology” and “information
technology”). The Group also pursued “Production 21” Activities to establish a robust production
structure in all facets of production, including quality, cost, and delivery time, and it worked to secure
earnings.
Although the DNP Group was affected by the earthquake, including damage and suspension ofsome operations at DNP Tohoku Co., Ltd. in Sendai, Miyagi Prefecture, it is pursuing restoration
efforts and gradually resuming operations.
As a result, consolidated net sales increased by 0.4% year on year to ¥1,589.3 billion, consolidated
operating income grew 2.0% to ¥67.8 billion, consolidated ordinary income fell 8.8% to ¥62.7 billion,
and consolidated net income rose 7.5% to ¥25.0 billion.
The results by segment are as follows.

PRINTING
Information Communication
In the Books and Magazines business, magazine sales decreased due to a prolonged slump in the
publications market.
In the Commercial Printing business, sales decreased year on year as cutbacks in corporate
advertising spending resulted in declines for flyers, pamphlets, catalogs, and other products.
In the Business Forms business, sales fell below year-ago levels as a result of declines for bothinformation processing services (ranging from data entry to printing and shipment of personal mailand other items) and smart cards.
In the Educational Publications Distribution business, sales rose sharply over last year, due partly to
an increase in the number of newly consolidated subsidiaries.
As a result of the above, overall segment sales fell 2.4% year on year to ¥721.9 billion andoperating income fell 22.7% to ¥18.1 billion.

Lifestyle and Industrial Supplies
In the Packaging business, despite higher sales of PET bottle preforms and paper cups, overall sales
decreased year on year on a decline in liquid paper containers.

2

In the Lifestyle Materials business, sales increased over last year on a recovery in housing starts
and growth for environmentally friendly products that use DNP's proprietary Electron Beam coating
technology.
In the Industrial Supplies business, sales of anti-reflection films for flat-panel displays increased as
the Group leveraged a broad product lineup to respond to growing demand. Dye-sublimation materials
for photo printers (color ink ribbons and receiver paper), back sheets for photovoltaic modules, andother products also achieved growth, and sales in this business increased over the previous fiscal
year.
As a result of the above, overall segment sales decreased by 0.9% year on year to ¥531.7 billion,
but operating income increased by 7.0% to ¥46.7 billion.

Electronics
In the LCD color filter business, sales increased year on year on contributions from production at the
Sakai Plant in Osaka Prefecture and the Himeji Plant in Hyogo Prefecture and greater demand forsmall- and medium-sized LCD displays.
In the semiconductor-related products business, although the DNP Group worked to acquire
overseas demand, primarily at its plant in Taiwan, sales decreased year on year because domestic
demand remains weak. Sales of high-density build-up circuit boards also decreased.
As a result of the above, overall segment sales increased by 11.2% year on year to ¥286.2 billion
and operating income rose 47.0% to ¥12.2 billion.
BEVERAGES
Beverages
Amid tough market conditions, characterized by a slump in consumer spending and intensified sales
competition, the DNP Group worked to expand sales of Coca-Cola and Georgia, both core products,
and I LOHAS, a brand of mineral water that uses "ecoru Bottle Shiboru," Japan’s lightest bottle.
As a result, although coffee and tea sales declined, Coca-Cola and mineral water sales increased,
and overall segment sales edged up 0.3% year on year to ¥63.0 billion and operating income totaled¥1.2 billion, versus a loss of ¥500 million in the previous year.
2) Forecast for the year ending March 31, 2012
Concerning the future outlook, despite expectations for economic growth driven by emerging
countries, there are concerns about rising crude oil prices, the impact of deflation, and worsening
employment conditions. Additional concerns include changes in the business environment ofcustomers and suppliers as a result of the Tohoku – Pacific Ocean Earthquake and the impact on
production of electric power restrictions. The future outlook has become more uncertain.
DNP expects conditions in the printing industry to remain challenging, due partly to a decline inorder prices caused by weak demand and stiffer competition and to procurement concerns for paper,
ink, film, and other materials.
In this environment, the DNP Group will work to quickly restore facilities damaged by theearthquake and to ensure a stable production structure through alternate production using production
facilities across the country and through cooperation with related raw material manufacturers anddistribution companies. Additionally, to respond to electric power restrictions, DNP will pursue
rigorous energy saving and install independent power generation facilities. It will also work tominimize the impact by revising its business continuity plan and preparing an optimal production plan.
During the fiscal year ending March 31, 2012, DNP intends to further develop its P&I Solutions

3

business vision and make every effort to provide products and services that address the needs of its
customers. Today’s uncertain economic outlook calls for the innovation of new products and services.
The DNP Group is working to solve various issues that are apparent by looking at societal changes
and needs from the perspective of consumers. The Group also intends to pursue its “Production 21”
Activities to solidify the base for promoting P&I Solutions, improve productivity further, and generate
solid earnings and stable long-term business growth.
DNP will announce forecasts for the fiscal year ending March 31, 2012 when disclosure is possible
because the impact of the earthquake on the DNP Groupʼs earnings is difficult to rationally estimate at
the present time.

(2) Analysis of financial position
Total assets at the end of the current fiscal year increased by ¥30.9 billion from the end of theprevious fiscal year to ¥1,649.7 billion, due mainly to increases in cash and time deposits and inmerchandise and finished products.
Total liabilities increased by ¥35.3 billion from the end of the previous fiscal year to ¥697.3 billion,
due mainly to an increase in bonds.
Net assets decreased by ¥4.4 billion from the end of the previous fiscal year to ¥952.4 billion, due
mainly to a decrease in net unrealized gains on available-for-sale securities.
As a result of the above, the equity ratio was 55.1%, down 1.5 percentage points from 56.6% at
the end of the previous fiscal year.
Consolidated cash flow provided by operating activities totaled ¥140.0 billion (¥140.5 billion in theprevious fiscal year), due mainly to ¥52.6 billion in income before income taxes and minority
interests and ¥97.9 billion in depreciation.
Cash flow used in investing activities totaled ¥82.5 billion (¥120.6 billion in the previous fiscal year),due mainly to the acquisition of ¥89.8 billion of property, plant and equipment. Cash flow provided byfinancing activities totaled ¥15.1 billion (¥13.1 billion in the previous fiscal year), due mainly to ¥53.7
billion of proceeds from the issuance of bonds and ¥21.0 billion of dividend payments. As a result,cash and cash equivalents at the end of the fiscal year increased by ¥70.3 billion from the end of theprevious fiscal year to ¥222.0 billion.

4

The trends in the DNP Groupʼs cash flow indicators are shown below.
Year ended

Year ended

Year ended

Year ended

Year ended

March 2007

March 2008

March 2009

March 2010

March 2011

63.0

62.6

58.5

56.6

55.1

75.7

65.5

37.7

50.3

39.6

0.6

0.5

0.9

1.2

1.6

93.8

120.1

79.7

63.9

52.6

Equity ratio (%)
Market value-based
equity ratio (%)
Debt-to-cash flow ratio(year)
Interest coverage ratio(times)Note: The following indicators are calculated based on consolidated financial figures.
*Equity ratio:

Total stockholdersʼ equity / Total assets*Market value-based equity ratio:

Market capitalization / Total assets

Market capitalization:

Fiscal year-end share price x fiscal year-end number of shares
outstanding (excluding treasury stock)*Debt-to-cash flow ratio:
Interest-bearing debt:

Interest-bearing debt / Cash flow
All liabilities on the consolidated balance sheet that accrue interest
chargesCash flow:

Cash flow provided by/used in operating activities on the
consolidated statements of cash flows*Interest coverage ratio:
Cash flow:

Cash flow / Interest expenses
Cash flow provided by/used in operating activities on the
consolidated statements of cash flows

Interest expenses:

Interest expenses on the consolidated statements of cash flows5(3) Basic policies regarding the allocation of profits and dividends for the year ended March
31, 2011 and year ending March 31, 2012
An important policy of the Company is to pass on profits to shareholders.
Profits are allocated based on a policy of paying stable dividends to shareholders and withconsideration for financial results and the dividend payout ratio. For future business expansion, theCompany strives to retain profits and strengthen its financial constitution and management base.
Retained earnings are used to invest in research and development related to new products andtechnologies, to invest in equipment needed for developing new businesses, and to implement
strategic alliances, including mergers and acquisitions. At the same time, the Company considers
flexible capital policies while also taking into consideration market trends as well as its need forcapital. The Company believes that these efforts will contribute to higher profits that can then bepassed on to shareholders in the future.
Based on this policy, the Company intends to pay a year-end dividend of ¥16 per share, which
together with the interim dividend of ¥16 per share brings the full-year dividend to ¥32 per share, thesame as in the previous fiscal year. The consolidated dividend payout ratio comes to 82.3%.
Dividends for the year ending March 31, 2012 are pending due to the difficulty of disclosing
consolidated earnings forecasts for that year. DNP will announce forecasts for the fiscal year ending
March 31, 2012 when disclosure is possible.

(4) Business risks
The performance and the results of DNP could be significantly affected by a variety of factors andcircumstances that might arise in the future. Because DNP is aware of these risk factors, its policy is
to strive to minimize their potential effects.
The followings are the major factors that the DNP management views as risks.
1) The Japanese economy and consumption trends
DNP engages in a wide range of businesses with an extremely large number of corporate customers,
and conducts its business so as not to overly dependent on specific customers. The Group does
most of its business in the Japanese market and overseas sales account for about 12% of net sales.
Nevertheless, if consumer spending and other components of domestic demand slump, owing todomestic economic weakness in sympathy with global economic trends, declines in order volume
and unit prices may affect our corporate performance.
2) Changes in the electronics market
We continue to position our Electronics segment as a strategic sector for future expansion. We
intend to secure steady profits in this segment by focusing on building business strategies based on
careful information gathering, establishing a profitable production structure, and developing highly
competitive value-added products. However, the market for display components and semiconductor
products is subject to sudden changes. It is possible that the segmentʼs performance could be
affected by sudden changes affecting products that we handle, such as dramatic fluctuations indemand or a plunge in unit prices.

63) Fluctuations in raw material procurement
We work hard to secure stable supplies and maintain optimal price by procuring raw materials suchas printing paper and film from multiple suppliers in Japan and overseas. However, there is somepotential for temporary imbalances between supply and demand due to sharp fluctuations inpetroleum prices, sudden surges in demand from emerging markets, and the impact of majordisasters. We intend to cope with such instances by negotiating with our customers and business
partners. However, if it should become extremely difficult to secure supplies, or if purchasing prices
rise markedly, it is possible that DNPʼs performance could be affected.
4) Development of new products and technologies and services
The DNP Group uses its printing and information technologies to develop and provide to a broad
range of industries products, technologies, and services that meet the needs of corporate customers
and consumers. In recent years, the pace of technological innovation in these areas has been
accelerating, and customersʼ needs have been rapidly diversifying. We believe that in the future,competition in the area of product development will become more intense than ever before, and it ispossible that DNPʼs performance could fluctuate significantly due to unforeseeable changes inmarket trends or a shortening of product life cycles.
5) Currency fluctuations
Particularly in fields such as Electronics, and Lifestyle and Industrial Supplies, we are expanding ourdealings in products and services with overseas customers. Because we expect the effects ofcurrency rates to gradually become more important, we use such means as foreign exchange
forward contracts to hedge the risks of currency fluctuations. Nevertheless, it is possible that radical
swings in currency values could have a more serious effect on DNPʼs performance.
6) Legal regulations, etc.
We conduct our business based on strict compliance with the law and social ethics. Wherever we
operate, in Japan or overseas, we are subject to a wide variety of legal regulations and restrictions,
including laws related to product liability, monopoly prohibitions, the protection of personal
information, patents, taxes, imports and exports, etc. We can imagine that in the future such
regulations could become even more restrictive. Market and industry trends may change
substantially as a result of deregulation. If that should occur, it is possible that DNPʼs businessperformance could be affected by limitations on its business activities, the burden of responding to
the changes, or increased costs.
7) Environmental protection and stricter regulations
The DNP Group is affected by laws and regulations in Japan and other countries regarding energy
conservation, the use of harmful substances, the prevention of air pollution, water quality protection
and waste treatment, and product recycling. Such regulations may be strengthened because of the
impact of global climate trends. In addition, if soil is contaminated by harmful substances and theCompany is faced with the situation of being responsible for assessing and cleaning up theenvironmental pollution, then the Companyʼs business could be substantially affected.
8) Information security and personal information protection
With computer networks and information systems playing an ever-greater role in keeping businessactivity going, the risks of information system malfunctions, breaches of personal information, andother events, owing to software and hardware problems and viruses, have risen. The DNP Group7

regards the protection of data and personal information as a top priority. It is doing all it can to protect
and maintain systems and data by strengthening its organization and training employees, but if
problems arise in these areas, then its business activity could be affected.
9) Disasters
We take steps to protect our production equipment and other major facilities from being damaged bydisasters such as fires or earthquakes. In addition, we divide our work among multiple production
bases and make every effort to prevent disasters from causing production stoppages or
disturbances in our ability to supply products. We also use various types of insurance to transfer risk.
Nevertheless, DNPʼs performance could be substantially affected in the event of major earthquakes
or other natural disasters, terrorist attacks, disease outbreaks, or other unexpected events thatcause production stoppages or major damage or interference with social infrastructure.

8

2. Information on the Dai Nippon Printing Group (DNP Group)
The DNP Group includes 160 subsidiaries and 14 affiliated companies. Its two main businesses are
Printing and Beverages. The former encompasses Information Communication, Lifestyle andIndustrial Supplies, and Electronics.
The businesses and segments of the DNP Group are outlined below.
PRINTING
Information Communication
Production of textbooks, books, weekly/monthly/quarterly magazines, advertisements, stock andother securities certificates, business forms, and cards; manufacture/sale of business equipment
and systems; and planning/design/construction/management of stores and advertising media
Major companies
Production
OGUCHI BOOK BINDING & PRINTING CO., LTD.
DNP AV Center Co., Ltd., DNP SP Tech Co., Ltd.
DNP Graphica Co., Ltd., DNP Book Factory Co., Ltd.
DNP Digitalcom Co., Ltd., DNP Data Techno Co., Ltd.
DNP Data Techno Kansai Co., Ltd.,DNP Total Process Nagaoka Co., Ltd.
DNP Total Process Maebashi Co., Ltd.
DNP Total Process Warabi Co., Ltd.
DNP Corporate History Center Co., Ltd.
DNP Multi Print Co., Ltd., DNP Media Art Co., Ltd.
DNP Media Create Co., Ltd., DNP Media Techno Kansai Co., Ltd.
DNP Uniprocess Co., Ltd.
Production and sales
Tien Wah Press (Pte.) Ltd.
Sales and services
CHI Group Co., Ltd., INTELLIGENT WAVE INC.
BUNKYODO GROUP HOLDINGS CO., LTD., Direc Co., Ltd.
DNP Art Communications Co., Ltd., DNP Social Links Co., Ltd.
DNP Dream Pages Co., Ltd. 2Dfacto, Inc. .
Maruzen Co., Ltd., MARUZEN SHUPPAN Co., Ltd.
Maruzen Bookstores Co., Ltd., TRC, Inc.
Junkudo Co., Ltd., Yushodo Co., Ltd., BUNKYODO Co., Ltd.
*BOOKOFF CORPORATION LIMITED
Kyoiku Shuppan Co., Ltd., SHUFUNOTOMO Co., Ltd.
The shares of CHI Group Co., Ltd. and BOOKOFF CORPORATION LIMITED are traded on theTokyo Stock Exchange, and the shares of INTELLIGENT WAVE INC. and BUNKYODO GROUPHOLDINGS CO., LTD. are traded on the Osaka Securities Exchangeʼs JASDAQ market.

9Lifestyle and Industrial Supplies
Manufacture/sale of containers and packaging products, packaging equipment and systems, interior
and exterior construction materials, photographic materials, and industrial supplies
Major companies
Production
Sagami Yoki Co., Ltd., DNP IMS Co., Ltd.
DNP IMS Odawara Co., Ltd.
DNP Energy System Co., Ltd., DNP Ellio Co., Ltd.
DNP OptoMaterials Co., Ltd., DNP Lifestyle Materials Co., Ltd.
DNP Technopack Co., Ltd., DNP Technopack Kansai Co., Ltd.
DNP Technopack Tokai Co., Ltd.
DNP Technopack Yokohama Co., Ltd.
DNP Techno Polymer Co., Ltd.
Production and sales
Aseptic Systems Co., Ltd.
DNP Fine Chemicals Fukushima Co., Ltd.
DNP Hoso Co., Ltd., PT DNP Indonesia
DNP Electronics America, LLC, DNP IMS America Corporation
DNP Denmark A/S, DNP IMS Netherlands B.V.
DNP Plastic Molding (Shanghai) Co., Ltd.
Sales and services
DNP Photo Imaging Co., Ltd., DNP ID System Co., Ltd.
DNP Lifestyle Materials Marketing Co., Ltd.
DNP Field Eyes Co., Ltd., DNP Fotolusio Co., Ltd.
LIFESCAPE MARKETING CORPORATIONDNP Photo Imaging America Corporation
DNP Photo Imaging Europe SAS

Electronics
Manufacture/sale of precision electronic components and other products
Major companies
Production
DNP LSI Design Co., Ltd., DNP Color Techno Sakai Co., Ltd.
DNP Fine Electronics Co., Ltd., DNP Precision Devices Co., Ltd.
DNP Precision Devices Himeji Co., Ltd.
DNP Micro Technica Co., Ltd.
Production and sales
DNP Color Techno Kameyama Co., Ltd., DAP Technology Co., Ltd.
DT Fine Electronics Co., Ltd., DNP Photomask Europe S.p.A.
DNP Photomask Technology Taiwan Co., Ltd.
Sales and services
DNP Taiwan Co., Ltd.

Other companies with multiple types of businesses
Production and sales
DNP Hokkaido Co., Ltd., DNP Tohoku Co., Ltd.
DNP Tokai Co., Ltd., DNP Shikoku Co., Ltd.
DNP Nishinippon Co., Ltd., DNP Fine Chemicals Co., Ltd.
D.N.K. Co., Ltd.
*DIC Graphics Corporation
Sales and services
DNP Logistics Co., Ltd., DNP Trading Co., Ltd.
DNP Accounting Services Co., Ltd.

10

DNP Information Systems Co., Ltd.
DNP Human Services Co., Ltd., DNP Facility Services Co., Ltd.
DNP Corporation USA, DNP America, LLC
DNP Holding USA Corporation

BEVERAGES
Beverages
Centered on Hokkaido Coca-Cola Bottling Co., Ltd.; manufacture/sale of soft drinks and juices
The shares of Hokkaido Coca-Cola Bottling Co., Ltd. are traded on the Tokyo Stock Exchange
and Sapporo Securities Exchange.
* Equity-method affiliated companies

11

12

3. Management policies(1) Core policies
The DNP (Dai Nippon Printing Co., Ltd.) Group has been striving to contribute to society by providing
new value-added products and services through its business activities, based on a management
concept of contributing to the sustainable growth of the society and the emergently evolving societyof the 21st century.
With a business vision of P&I Solutions (P&I stands for “Printing Technology” and “Information
Technology”) to realize its management concept, DNP seeks to contribute to society and expand its
business by leveraging its strengths in printing technology and information technology to solve theproblems of companies and consumers.
Additionally, to promote fair and appropriate corporate activity and fulfill its corporate social
responsibilities (CSR), DNP strictly complies with laws and social ethics based on the DNP Group
Code of Conduct and ensures proper business activities through an internal control system. The
Company strives to conduct business in good faith to earn the deep trust of its various stakeholders,
including shareholders, customers, consumers, and employees.

(2) Medium- and long-term management strategy and key issues
The DNP Group aims to steadily expand over the long term, based on its P&I Solutions businessvision.
DNP has begun redeveloping the Ichigaya district in an effort to further promote P&I Solutions andensure future growth. Under a redevelopment plan, the Company aims to consolidate in the Ichigaya
district the planning and development, sales, and head office functions of different divisions that arelocated in the Tokyo metropolitan area; develop new businesses; and reorganize manufacturing andlogistics and integrate manufacturing facilities to achieve optimization from an overall perspective.

Initiatives in the different businesses and segments
PRINTING BUSINESSInformation Communication
This segment engages in a broad range of activities using a variety of media to provide the optimal
expression of information tailored to the needs of companies and consumers.
In the Books and Magazines business, DNP is focusing on developing the business environment
for electronic publishing as a promising growth market through the unification of standards andcoordination of copyright management and billing methods. In partnership with NTT DoCoMo, Inc.,
the Group is focusing on the sale of e-books through the e-store “2Dfacto,” which opened in January
2011. DNP is also bolstering its book production structure based on DNP Book Factory Co., Ltd.,
which was established as a specialized book manufacturing subsidiary. It is working to build a hybrid
production system for a variety of media, from paper books to print-on-demand and electronic
content, and to expand sales.
In the Educational Publications Distribution business, DNP made BUNKYODO GROUPHOLDINGS CO., LTD. a consolidated subsidiary in May 2010 and reformed the structure ofintermediate holding company Maruzen CHI Holdings Co., Ltd. (name changed from CHI Group Co.,
Ltd. in May 2011) in an effort to expand this business. It is working to deepen cooperation amonggroup companies, expand sales promotions at bookstores, and introduce smart cards and IC tags atuniversity and public libraries.

13Additionally, in the Books and Magazines, Commercial Printing, and Business Forms businesses,
DNP seeks to improve earnings further by strengthening its comprehensive management structure,
coordinating among the various prepress, printing, and processing operations, developing a lean
production structure, and improving distribution efficiency. Further, the Company is actively
developing new advertising methods, including digital signage (using large electronic displays), andexpanding its information security business, including by providing authentication services
compatible with Near Field Communication (NFC), an emerging international next-generation
communication protocol for contactless smart cards.

Lifestyle and Industrial Supplies
The segment faces weak demand for Packaging because of the slump in consumer spending, but
focuses on various types of functional materials, such as IB (innovative barrier) film, which provides
a very strong barrier against vapor and oxygen and is optimal for food, medical/pharmaceutical, andelectronic material packaging applications. DNP is also working on universal design initiatives anddeveloping packaging that is easier to use.
In the Lifestyle Materials business, DNP seeks to use its proprietary Electron Beam coating
technology to expand sales of environmentally friendly products that are well regarded within theconstruction industry for their superior design, durability, and practicality.
In the Industrial Supplies business, DNP aims to expand sales in the opto-materials area,
including the anti-reflection films used in flat-panel displays for which it has a high market share,amid expected growth in global demand for flat-panel displays. It is also working to increase
production capacity, improve product quality, and bolster cost competitiveness to respond to risingdemand for dye-sublimation materials with the spread of digital photography. Additionally, DNP
acquired Sony Corporationʼs professional digital photo printer business based in North America andEurope in April 2011. Going forward, the Company will supply dye-sublimation materials for a varietyof photo printers around the world.

Electronics
In this segment, DNP is working to increase production capacity and develop new technologies andproducts so as to be able to adapt to fast-changing market conditions.
In the LCD color filter business, although the business environment is likely to change on accountof global production adjustments, price volatility, and other factors, DNP seeks to expand orders
primarily for large TVs, respond to growing demand for small- and medium-sized displays used insmartphones, tablet PCs, and other products, and develop a flexible production structure responsive
to market needs.
In the photomask business, although semiconductor prices are likely to be volatile, DNP is working
to develop cutting-edge technologies, including nanoimprint and extreme ultraviolet (EUV)
technologies, enhance competitiveness, adequately meet overseas demand using plants in Italy andTaiwan, and establish a profitable production structure.

New businesses
DNP is working hard to develop new businesses that generate new added value, including products
and services that solve the problems of companies and consumers.

14

In particular, in the energy field, DNP commenced operations at newly built plant in Kita-Kyushu,
Fukuoka Prefecture in April 2011 that makes soft-pack packaging material for rechargeable
lithium-ion polymer batteries, as well as back sheets and sealants for photovoltaic modules. This
plant roughly triples DNPʼs production capacity and allows it to respond to a prospective sharp rise in
new energy demand, including for photovoltaic modules and rechargeable lithium-ion polymer
batteries.
In the life sciences (pharmaceutical, medical, and health care) field, DNP is actively pursuingbusiness based on the CytoGraph cell pattern culturing substrate and efficient production technology
for cell sheet culturing film used in regenerative medicine.

BEVERAGES
Beverages
With the market shrinking because of weak consumer spending, the beverage industry is likely tocontinue to face challenging conditions, partly because of intensifying competition from industry
reorganization.
In this environment, DNP is working to bolster sales of profitable products and to develop new
vending machine business and expand sales based on its medium-term business plan, titled“Restart 2009: Along with the North Earth.” It is also pursuing more efficient operations and greater
cost competitiveness. Additionally, with the aim of being a socially trustworthy company, DNP
aspires to environmental management based on ISO14001 (environmental management system).

Strengthened organization
DNP seeks to bolster cooperation between divisions, enhance the Groupʼs overall strengths,
deepen its dialogue with companies and consumers, and provide a broad range of solutions throughto corporate business strategy and sales promotion planning. DNP also recognizes that businessexpansion requires not only its own proprietary technology, but also cooperation with othercompanies with unique strengths. It has been pursuing strategic partnerships and M&A in theelectronics, digital photo, and educational publications distribution businesses, and it intends tocontinue with these efforts both in Japan and overseas.
Meanwhile, DNP is always reviewing its existing structure to further enhance efficiency and reduce
costs. This fiscal year, the Company integrated and reorganized its Commercial Printing sales,planning, development, and production organizations in both the Kanto and Kansai regions to better
allocate personnel, optimize production locations, and improve productivity.
Additionally, DNP launched DNP Chubu Co., Ltd. on April 1, 2011 as a unified manufacturing andsales company by integrating the Chubu-based operations of the Chubu division of Dai Nippon
Printing Co., Ltd. with its manufacturing division DNP Tokai Co., Ltd. DNP seeks to strengthen ties
with the local community, expand orders tailored to the regionʼs unique attributes, and enhance
efficiency and reduce costs by integrating production and sales.
To restructure costs, DNP is improving productivity by revamping its business processes andstreamlining production processes, cutting material costs, and establishing a strong production
structure with a continual focus on profitability. In addition to the results of the groupwide pursuit of“Production 21” Activities since 2002, under the theme of overall optimization, DNP seeks to achievea smooth flow between divisions and plants from order to delivery, build an efficient production
system that rigorously eliminates waste, improve quality, and enhance cost competitiveness.

15

Contributions to a sustainable society
DNP’s various environmental initiatives to build a sustainable society that coexists with natureinclude a proprietary environmental management system, global warming prevention, zero waste
emissions, biodiversity protection, volatile organic solvent and chemical substance management,
environmentally friendly product development, and green purchasing.
This fiscal year, DNP installed more solvent recovery equipment at the Izumizaki and Sayama
plants to reduce atmospheric emissions of volatile organic solvents. To help reduce CO2 emissions,
it equipped production equipment with independently developed systems to show the amount ofenergy used and pushed forward with energy-saving activities.

164. Consolidated financial statements(1) Consolidated balance sheets(Million yen)
Year ended March 31, 2010
(As of March 31, 2010)

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

152,416
449,020
8
71,34029,722
17,756
9,775
14,238(4,327)739,951

223,847
403,9868
87,446
31,585
19,575
10,41521,072(6,994)790,942

508,518(301,261)
207,256
896,479(717,352)
179,127
135,485
51,433136,047(92,502)43,544
616,847

531,440(318,455)
212,984918,201(744,352)
173,849
138,650
47,036
143,432(101,126)
42,306
614,827

10,281
20,4893,945
34,717

10,63322,304
2,953
35,891

142,381
1,741
40,57454,702(13,668)
225,731
877,296

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

1,605
1,605
1,618,853

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

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

17

(Million yen)
Year ended March 31, 2010
(As of March 31, 2010)

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

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans
Current portion of long-term debt
Income taxes payable
Reserve for bonuses
Reserve for disaster losses
Other
Total current liabilities

308,630
50,547
4,019
15,623
16,341‐76,783471,945

275,525
51,403
9,415
10,486
16,6504,648
79,638447,768

Long-term liabilities
Bonds
Long-term debt
Deferred tax liabilities
Provision for retirement benefits
Other

101,167
11,0182,710
43,22931,917

153,520
14,802
2,628
39,26039,363

190,045661,990249,574
697,343

114,464
144,898
756,428(94,016)
921,774

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

8,059

832

(10)
(13,498)(12)(18,000)(5,449)(17,180)‐
40,53816
43,902956,863
1,618,853

952,440
1,649,784

Total long-term liabilities
TOTAL LIABILITIESNET ASSETSStockholdersʼ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholdersʼ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

18

(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 income
Dividend income
Subsidies
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of associated companies
Foreign exchange transaction losses
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss on fixed assets
Disaster losses and provision of reserve fordisasterLoss on devaluation of investment securities
Loss on sale of securities in affiliates
Loss on devaluation of securities in affiliates
Amortization of goodwill
Other
Total extraordinary losses
Income before income taxes and minority
interests
Current income taxes
Deferred income taxes
Income and other taxes
Income before minority interests
Minority interests in income (loss) ofconsolidated subsidiaries
Net income

19Year ended
March 31, 2010
1,583,382
1,286,682
296,700
230,186
66,513

Year ended
March 31, 2011
1,589,373
1,287,581
301,791
233,973
67,818

736
2,460
4,065
5,099
12,361

455
2,897
‐
6,318
9,671

2,363
102
116
1,553
5,897
10,033
68,841

2,775
412
1,672
‐
9,844
14,70462,786

1,007
45
270
1,323

3,334
696
385
4,416

7,093
377

4,238
1,685

‐

6,088

1,196
0
3
11,063935
20,669

430
‐
5
‐
2,058
14,50649,49552,69622,061
3,699
25,761‐

20,026
8,003
28,03024,666455(366)

23,27825,032

Consolidated statements of comprehensive income(Million yen)

Year ended
March 31, 2010
Income before minority income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of the parent
Comprehensive income attributable tominority interests

20‐

Year ended
March 31, 2011
24,666‐(7,108)‐‐(1)(5,023)

‐

(59)

‐
‐

(12,191)
12,474‐

13,302‐(827)

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

Year ended
March 31, 2010
Stockholdersʼ equity
Common stock
Balance at previous fiscal year end
Balance at current fiscal year end
Capital surplus
Balance at previous fiscal year end
Balance at current fiscal year end
Retained earnings
Balance at previous fiscal year end
Changes of items during the period
Cash dividends paid
Net income
Decrease by merger of consolidated andunconsolidated subsidiaries
Change of scope of consolidation
Increase due to stock transfer
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end
Treasury stock
Balance at previous fiscal year end
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end
Total stockholdersʼ equity
Balance at previous fiscal year end
Changes of items during the period
Cash dividends paid
Net income
Decrease by merger of consolidated andunconsolidated subsidiaries
Change of scope of consolidation
Increase due to stock transfer
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end

21

Year ended
March 31, 2011

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

751,869

756,428(19,346)
23,278(20,631)
25,032

‐

(368)

192
441
(7)
4,558
756,428

‐
‐
(8)
4,024
760,452(93,884)(94,016)

(153)
20
(132)
(94,016)

(118)
21
(96)
(94,113)917,348921,774(19,346)
23,278(20,631)
25,032

‐

(368)

192
441
(153)
13
4,426
921,774

‐
‐
(118)
13
3,927
925,702

(Million yen)

Year ended
March 31, 2010
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at previous fiscal year end

Year ended
March 31, 2011

(3,882)

8,059

Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period

11,942(7,227)

11,942(7,227)

Balance at current fiscal year end

8,059

832

(4)

(10)

(6)

(1)

(6)
(10)

(1)
(12)

(15,285)(13,498)

1,787(4,501)

1,787(13,498)(4,501)(18,000)(19,173)(5,449)13,723(11,730)

13,723(5,449)(11,730)(17,180)

‐

‐

‐

16

‐
‐

16
16

41,91040,538Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period(1,371)

3,363(1,371)

3,363

Balance at current fiscal year end

40,53843,902

Net deferred losses on hedges
Balance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Foreign currency translation adjustments
Balance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Total accumulated other comprehensive
incomeBalance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Stock acquisition rights
Balance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Minority interests
Balance at previous fiscal year end

22

(Million yen)

Year ended
March 31, 2010

Year ended
March 31, 2011

Total net assets
Balance at previous fiscal year end

940,085

956,863

Cash dividends paid

(19,346)(20,631)

Net income
Decrease by merger of consolidated andunconsolidated subsidiaries
Change of scope of consolidation

23,27825,032

‐

(368)

192

‐

Increase due to stock transfers

441‐

Purchase of treasury stock

(153)

(118)

13

13

12,351(8,350)16,777(4,422)956,863

952,440

Changes of items during the period

Disposal of treasury stock
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end

23

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

Year ended
March 31, 2010
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Impairment loss on fixed assets
Increase (Decrease) of doubtful receivables, net
Increase (Decrease) of provision for retirement
benefits, net
Equity in losses of associated companies
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gain on sales of investment securities
Net loss on devaluation of investment securities
Net loss on sales or disposal of fixed assets(Increase) Decrease in trade receivables(Increase) Decrease in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchases of subsidiary stocks
Proceeds from purchase of newly consolidated
subsidiary stocks
Payments for business transfer
Interest and dividends received
Other
Net cash used in investing activities

24

Year ended
March 31, 2011

49,49591,694377(79)

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

2,262

(4,177)102
16,219(3,196)
2,363
(52)
1,199
6,085
(39,672)
1,969
17,8992,776
149,446(8,872)
140,574412
2,553(3,353)
2,775
(694)
436
903
48,851(7,135)(36,476)
4,782
162,383(22,330)
140,053

6,130

(171)

(108,595)(89,846)

2,556(13,456)
7,047(5,639)7,058(2,155)
11,095
‐

‐

908

(49)
3,163
(11,841)(120,683)‐
3,501(12,951)(82,561)(Million yen)

Year ended
March 31, 2010
Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash provided by financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Net increase in cash and cash equivalents from newly
consolidated subsidiaries
Increase in cash and cash equivalents from merger withunconsolidated subsidiaries
Cash and cash equivalents at end of year

25

Year ended
March 31, 2011(10,119)
3,340(3,484)50,000(217)(153)(12,447)
14,698(9,786)53,700
(306)
(118)

(2)

‐

(2,201)(19,360)(323)(4,352)(2,660)(20,634)(459)(6,800)13,12615,185889(2,458)33,905
117,200

70,218
151,709

604

‐

‐

128

151,709

222,056

(5) Notes on premise of a going concern

None(6) Basis of presenting consolidated financial statements
1) Scope of consolidation and application of the equity method of accounting
Number of consolidated subsidiaries: 131
Major companies:
CHI Group Co., Ltd. (changed its name to Maruzen CHI Holdings
Co., Ltd. as of May 1, 2011), Hokkaido Coca-Cola Bottling Co., Ltd.
INTELLIGENT WAVE INC., BUNKYODO GROUP HOLDINGS
CO., LTD.
DNP Color Techno Kameyama Co., Ltd.
DNP Nishinippon Co., Ltd.
DNP Fine Chemicals Co., Ltd.
DNP Photo Imaging Co., Ltd., DNP Logistics Co., Ltd.
Number of equity-method affiliated companies: 12
Major companies:
BOOKOFF CORPORATION LIMITED, Kyoiku Shuppan Co., Ltd.
SHUFUNOTOMO Co., Ltd., DIC Graphics Corporation

2) Changes in scope of consolidation and application of the equity method of accounting[Scope of consolidation]
Newly included:
17 INTELLIGENT WAVE INC. and 16 other companies
Excluded:
DNP Butsuryu Systems Ichigaya Co., Ltd. and 10 other11 companies[Application of equity method]
Newly included:2
Excluded:1

Felica Pocket Marketing Inc. and one other company
BUNKYODO GROUP HOLDINGS CO., LTD.

3) Matters concerning the fiscal years of consolidated subsidiaries
Of the consolidated subsidiaries, Hokkaido Coca-Cola Bottling Co., Ltd. and 24 others have fiscal
years that end on December 31, while CHI Group Co., Ltd. and 24 others have fiscal years that end
on January 31. Their financial statements as of the same date are used in the preparation of these
consolidated financial statements.
Additionally, INTELLIGENT WAVE INC.ʼs fiscal year ends on June 30 and BUNKYODO GROUPHOLDINGS CO., LTD. and eight other companies have fiscal years that end on August 31.
Consequently, financial statements based on provisional account settlements are used.
Any material transactions during the time between the foregoing settlement dates and provisional
settlement dates and the consolidated settlement date are adjusted for on a consolidated basis.
4) Summary of significant accounting policies(a) Criteria and methods for valuing significant assets
・Marketable securities
Other securities

26

Those with market
prices available

Those without market
prices available
・Derivatives
・Inventories

Merchandise

Fair market value based on market prices as of the balance
sheet date
(The related valuation differences are directly included in net
assets and the sale prices computed by the moving-averagemethod.)Mainly cost based on the moving-average method
Mainly fair market value
For figures shown on the balance sheet, the book value
write-down method based on the decrease in profitability isused.
Mainly cost based on the specific identification method

Finished products, work inprogress
Raw materials

Mainly cost based on the retail inventory cost method

Supplies

Mainly cost based on the most recent purchase method

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

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

・Lease assets

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

27

transactions.
(c) Treatment of significant deferred assets
Some consolidated subsidiaries have capitalized business startup costs as deferred assets andamortize them primarily over five years using the straight-line method.

(d) Basis for recording significant allowances
・Allowance for doubtful
To cover possible losses on doubtful accounts, theaccounts
allowance for doubtful accounts is based on historicaldefault rates for normal accounts and on estimates of theamounts that may not be recoverable for specific overdue
accounts.
・Reserve for bonuses

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

・Reserve for bonuses todirectors

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

・Provision for retirement
benefits

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

・Provision for accrued
directorsʼ retirement benefits

For payments of directorsʼ retirement benefits, domestic
consolidated subsidiaries record a fiscal year-end required
amount based on internal regulations.

・Reserve for disaster losses

To cover payments required to restore assets damaged bydisaster, the reserve for disaster losses is based on theestimated amount at the end of the current fiscal year.

28

(e) Accounting treatment of consumption taxes
National and local consumption taxes are excluded from transaction amounts.
(f) Amortization of goodwill and negative goodwill
Goodwill and negative goodwill incurred prior to March 31, 2010 are amortized using thestraight-line method for a period of not more than 20 years. In the current fiscal year, straight-line
amortization over five years is generally used. Negative goodwill incurred from April 1, 2010 ischarged to income in the fiscal year of occurrence.
(g) Scope of funds in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows are short-term
investments with an original maturity of three months or less, are subject to insignificant risk ofchanges in value, and can be easily converted into cash and drawable funds as needed.

(7) Changes in the basis of presenting consolidated financial statements[Application of “Accounting Standards for Asset Retirement Obligations”]
Starting in the current fiscal year, DNP applies the “Accounting Standards for Asset Retirement
Obligations” (Accounting Standards Board of Japan [ASBJ] Statement No. 18, March 31, 2008) andthe “Guidance on Accounting Standards for Asset Retirement Obligations” (ASBJ Implementation
Guidance No. 21, March 31, 2008).
As a result of the change, operating income in the current fiscal year decreased by ¥265 million,
ordinary income by ¥449 million, and income before income taxes and minority interests by ¥950
million.

[Application of “Accounting Standard for Equity Method of Accounting for Investments” and“Practical Solution on Unification of Accounting Policies Applied to Associates Accounted
for Using the Equity Method”]
Starting in the current fiscal year, DNP applies the “Accounting Standard for Equity Method of
Accounting for Investments” (ASBJ Statement No. 16, March 10, 2008) and “Practical Solution on
Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method”(ASBJ Practical Issue Task Force [PITF] No. 24, March 10, 2008).
There is no impact on profits and losses as a result.
[Application of “Accounting Standard for Business Combinations” and other accounting
standards]
Starting in the current fiscal year, DNP applies the “Accounting Standard for Business Combinations”(ASBJ Statement No. 21, December 26, 2008), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, December 26, 2008), “Partial Amendments to ‘AccountingStandard for Research and Development Costs’” (ASBJ Statement No. 23, December 26, 2008),“Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, December 26,2008), “Revised Accounting Standard for Equity Method of Accounting for Investments” (ASBJ
Statement No. 16, December 26, 2008), and “Revised Guidance on Accounting Standard for29

Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10,
December 26, 2008).
(8) Changes in presentation methods[Consolidated statements of income]Starting in the current fiscal year, DNP will report “Income before minority interests,” applying the“Cabinet Office Ordinance Partially Revising Regulation on Terminology, Forms and Preparation of
Financial Statements” (Cabinet Office Ordinance No.5, March 24, 2009) based on the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, December 26, 2008).

(9) Additional information[Application of “Accounting Standard for Presentation of Comprehensive Income”]
Starting in the current fiscal year, DNP applies the “Accounting Standard for Presentation ofComprehensive Income” (ASBJ Statement No. 25, June 30, 2010). However, the amounts listed in
the previous fiscal year under “Accumulated other comprehensive income” and “Total accumulated
other comprehensive income” are the amounts for “Valuation and translation adjustments” and “Total
valuation and translation adjustments.”30

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

1. Guarantee obligation
2. Discounts on notes receivableYear ended
March 31, 2010
¥77 million

Year ended
March 31, 2011
¥74 million¥670 million¥704 million

Year ended
March 31, 2010
¥33,849 million

Year ended
March 31, 2011
¥33,146 million[Consolidated statements of income]

1. Research and development expenses(Selling, general and administrative expenses, and cost of sales)[Consolidated statements of comprehensive income]Year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
Comprehensive income for the year ended March 31, 2010
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests¥37,001 million¥998 million

Total¥37,999 million

Other comprehensive income for the year ended March 31, 2010
Valuation difference on available-for-sale securities¥11,917 million

Net deferred losses on hedges¥(6) million

Foreign currency translation adjustments¥2,319 million

Share of other comprehensive income of associates accounted for¥34 million

using equity method
Total¥14,265 million[Consolidated statements of changes in net assets]
The year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
1. Types and number of shares outstanding, type and number of treasury shares(Shares)

Outstanding shares

Stock type

Number ofshares at theend of theyear ended
March 2009

Common stock

700,480,693

Increase in
number ofsharesduring theyear ended
March 2010‐

Decrease in
number ofsharesduring theyear ended
March 2010‐

Number ofshares at theend of theyear ended
March 2010

700,480,693

56,123,617
130,495
12,34956,241,763
Treasury stock
Common stock
Notes:
1. The increase of 130,495 treasury shares is due to the repurchase of odd-lot shares.
2. The decrease of 12,349 treasury shares is due to the sale of odd-lot shares.

31

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 26, 2009
Board of Directorsʼ
meeting on
November 13, 2009

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

9,028

14

March 31,2009

June 29, 2009

Common stock

10,31716

September 30,
2009

December 10,
2009(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, 2010

Common stock

10,316

Source ofdividends

Dividend
per share(Yen)

Retainedearnings

16

Dividend
record date

Effective date

March 31,2010

June 30, 2010

The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)
1. Types and number of shares outstanding and treasury stock(Shares)

Outstanding shares

Stock type

Number ofshares at theend of theyear ended
March 2010

Common stock

700,480,693

Decrease in
number ofsharesduring theyear ended
March 2011

Increase in
number ofsharesduring theyear ended
March 2011‐‐

Number ofshares at theend of theyear ended
March 2011

700,480,693

56,241,763
109,418
13,01856,338,163
Treasury stock
Common stock
Notes:
1. The increase of 109,418 treasury shares is due to the repurchase of odd-lot shares.
2. The decrease of 13,018 treasury shares is due to the sale of odd-lot shares.

2. Detailed information regarding dividends(1) Dividends paid
Resolution
General meeting ofshareholders on
June 29, 2010
Board of Directorsʼ
meeting on
November 11, 2010

Stock type

Total dividends(Million yen)

Dividend pershare (Yen)Dividend
record date

Effective dateCommon stock

10,31616

March 31,2010

June 30, 2010

Common stock

10,31516

September 30,
2010

December 10,
2010(2) Of dividends for which the record date belongs to the current fiscal year, those thatcome into effect in the following fiscal year
Resolution

Stock type

Total
dividends(Million yen)

General meeting ofshareholders on
June 29, 2011

Common stock

10,314

Source ofdividends
Retainedearnings

32

Dividend
per share
(Yen)

16

Dividend
record date

Effective date

March 31,2011

June 30, 2011

[Segment information, etc.][Business segment information]
The year ended March 31, 2010 (April 1, 2009 – March 31, 2010)(Million yen)
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Elimination
and/orcorporate

Consolidated

732,708
6,976
739,685
716,218

530,401
6,237
536,638
492,924

257,479
23
257,502249,186

62,79334
62,82863,405

1,583,382
13,271
1,596,654
1,521,734‐(13,271)(13,271)(4,865)

1,583,382‐
1,583,382
1,516,869

23,46643,713

8,316

(577)

74,919(8,406)

66,513592,670
24,913264
23,800522,334
27,7352
22,763397,006
33,373‐
67,953

43,169
3,397
111
3,172

1,555,181
89,419377
117,689

63,672
2,275
‐
1,374

1,618,853
91,694377
119,063

Total

I Net sales andOperating income(loss)Net sales(1) Outside customers(2) Inter-segment
Total
Operating expenses
Operating income(loss)II Assets,
depreciation,
impairment loss andcapital expenditures
AssetsDepreciation
Impairment loss
Capital expenditures[Geographic segment information]
In the previous fiscal year, geographical segment information is not stated because Japan accounts
for more than 90% of aggregate sales of all segments and of the aggregate amount of assets of all
segments.

[Overseas sales]
The year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
Asia
Other
l Overseas sales (a)¥130,836 million¥62,308 million
ll Consolidated net sales (b)lll Ratio: (a)/(b)
8.3%
3.9%
Notes:

Total¥193,144 million¥1,583,382 million
12.2%

1.

Country and regional segments are based on geographic proximity.

2.

Main countries and regions included in each segment:
Asia:
Taiwan, South Korea, China, Indonesia
Other:
United States, France, Germany, United Kingdom

3.

Overseas sales represent the total sales of the Company and its consolidated subsidiaries outside
Japan.

33

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

34

3. Information on sales, income/loss, assets, and other items by reporting segment

The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)(Million yen)
Reporting segment

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

1.

Amounts
reported on
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

715,520
6,460
721,981
18,144
610,456

524,5287,185
531,71446,789518,258

286,2859286,295
12,222
387,889

63,0385
63,043
1,249
44,376

1,589,373
13,661
1,603,034
78,406
1,560,982―(13,661)(13,661)(10,588)
88,801

1,589,373―
1,589,373
67,818
1,649,784

24,0361,407
225

26,0701,293‐

41,878
160
1,441

3,350
0
18

95,335
2,861
1,685

2,642
‐
‐

97,977
2,861
1,685

20,93820,06756,497

3,471

100,975

1,196

102,172

Note 1

Beverages

Total

Figures are adjusted as follows.
(1)
(2)
(3)

2.

Adjustment

Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
Segment assets are adjusted for companywide assets not allocated to reporting segments.
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.

[Additional information]
Starting in the current fiscal year, DNP applies the “Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009)
and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information” (ASBJ Guidance No. 20, March 21, 2008).

35

[Related information]
The year ended March 31, 2011 (April 1, 2010 – March 31, 2011)

1. Information on products and services
Omitted because similar information is disclosed in segment information.
2. Regional information(1) Net sales(Million yen)Japan
1,391,676

Asia

Other regions

134,734

62,963

Total
1,589,373(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
Omitted because sales to specific outside customers are less than 10% of sales as reported in
the consolidated statements of income.

36

[Per share information]
Year ended March 31, 2010
(April 1, 2009 – March 31, 2010)

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

Net assets per share¥1,422.34

Net assets per share¥1,410.44

Net income per share¥36.13

Net income per share¥38.86

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

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

Note: Basis of calculations
1. Net assets per share
Year ended
March 31, 2010

Year ended
March 31, 2011

(As of March 31, 2010)(As of March 31, 2011)

Total net assets(Million yen)

956,863

952,440

Amount excluded from total net assets(Million yen)

40,53843,918

Of which, stock acquisition rights(Million yen)

‐

(16)

Of which, minority interests(Million yen)

(40,538)(43,902)

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

916,324

908,521

Number of common shares outstanding(Thousand shares)

700,480

700,480

Number of common treasury shares(Thousand shares)

56,241

56,338

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

644,238

644,142

2. Net income per share
Year ended
March 31, 2010
(April 1, 2009 –March 31, 2010)

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

Net income(Million yen)

23,27825,032

Amounts not attributable to commonshareholders(Million yen)‐‐

Net income pertaining to common stock(Million yen)

23,27825,032Average number of common shares
outstanding during the fiscal year

(Thousand shares)

644,314644,187[Disclosure omission]
Disclosure of notes on such items as tax effect accounting, marketable securities, and retirement
benefits is omitted because such disclosure in the release of Financial Results is not considered to
be important.

37

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

Year ended
March 31, 2010
(As of March 31, 2010)

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

80,51540,191
292,497
4,310
11,334
2,536
3,864
13,431(1,608)447,073

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

385,265(225,255)
160,01031,051(22,848)8,202
714,702(579,270)
135,431
1,097
(977)
119
48,269(39,535)
8,733
119,576
8,018
(564)
7,453
31,905
471,433

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

14,036
6,497
20,534

14,384
5,136
19,521ASSETS
Current assets
Cash and time deposits
Notes receivable
Trade receivable
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery
Accumulated depreciation
Machinery, net
VehiclesAccumulated depreciation
Vehicles, net
Equipment
Accumulated depreciation
Equipment, net
Land
Lease asset
Accumulated depreciation
Lease asset, net
Construction in progress
Total property, plant and equipment
Intangible fixed assets
Software
Other
Total intangible fixed assets

38

(Million yen)

Year ended
March 31, 2010
(As of March 31, 2010)

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

122,781
123,732
29,64631,35243,307(19,503)
331,316
823,284
1,270,358

111,201
130,486
24,64228,35031,752(17,615)
308,818
799,219
1,314,214

Investments and other assets
Investment securities
Investments in securities in affiliates
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

39

(Million yen)
Year ended
March 31, 2010
(As of March 31, 2010)

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

40

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

25,681
204,859
701
44,983
14,722
145,223
6,927
210
‐
2,741
1,938
447,990

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

100,000
7,124
‐
6,400
11,303‐
124,828
572,819150,000
6,755
3,006
6,379
5,421
94
171,658
627,539

114,464

114,464

144,898
144,898

144,898
144,898

23,30023,300

0
8,047

0
7,492

52

46

432,780
59,987524,168(93,992)
689,539432,780
57,029520,647(94,088)685,922

8,007

763

(7)
8,000
697,539
1,270,358(10)
752
686,674
1,314,214

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

Year ended
March 31, 2010
Net salesYear ended
March 31, 2011

1,086,701

1,076,434

Cost of sales

962,451

951,872

Gross profit

124,250

124,561

Selling, general and administrative expenses

112,617

110,191

Operating income

11,633

14,370Interest income

1,034

782

Dividend income

23,181

10,190Other55,28658,594

Total non-operating income

79,502

69,567

Interest expense

1,731

1,918

Other

47,125

51,141

Total non-operating expenses

48,85653,05942,27830,877

Gain on sale of fixed assets

199

32

Gain on sale of investment securities

33

599

Reversal of allowance for doubtful accounts

95‐

Gain on business transfer
Gain on liquidation of subsidiaries andaffiliates
Other

200

‐

‐

1,667

17

7

Total extraordinary gains

546

2,306

Loss on sale or disposal of fixed assets

5,411

3,337

Loss on devaluation of investment securities

1,114

414

Loss on devaluation of securities in affiliates
Disaster losses and provision of reserve fordisasterOther

20,475

188

‐

3,992

78

1,087

Total extraordinary losses

27,0799,020

Income before income taxes

15,74524,163Current income taxes

200

220

Deferred income taxes

5,423

6,824

Income and other taxes

5,623

7,044

Net income

10,121

17,118Non-operating income

Non-operating expenses

Ordinary income
Extraordinary gains

Extraordinary losses

41

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

Year ended
March 31, 2010
Stockholdersʼ equity
Common stock
Balance at previous fiscal year end
Balance at current fiscal year end
Capital surplus
Capital reserve
Balance at previous fiscal year end
Balance at current fiscal year end
Total capital surplus
Balance at previous fiscal year end
Balance at current fiscal year end
Retained earnings
Legal reserve
Balance at previous fiscal year end
Balance at current fiscal year end
Other retained earnings
Reserve for loss on overseas investment
Balance at previous fiscal year end
Changes of items during the period
Reversal of reserve for loss on overseas
investment
Total changes of items during the period

Balance at current fiscal year end
Reserve for special depreciation
Balance at previous fiscal year end
Changes of items during the period
Provision of reserve for special depreciation

Reversal of reserve for special depreciation
Total changes of items during the period

Balance at current fiscal year end
Reserve for depreciation reduction of fixed
assetsBalance at previous fiscal year end
Changes of items during the period
Reversal of reserve for depreciation
reduction of fixed assets
Total changes of items during the period

Balance at current fiscal year end
Other reserve
Balance at previous fiscal year end
Changes of items during the period
Reversal of other reserve
Total changes of items during the period

Balance at current fiscal year end

42

Year ended
March 31, 2011

114,464
114,464

114,464
114,464

144,898
144,898

144,898
144,898

144,898
144,898

144,898
144,898

23,30023,30023,30023,300

1

0

(0)

(0)

(0)
0

(0)
0

27

8,047

8,041
(20)
8,020
8,047

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

60

52

(8)

(6)

(8)
52

(6)
46

482,780

432,780(50,000)(50,000)
432,780‐‐
432,780

(Million yen)

Year ended
March 31, 2010
Retained earnings brought forward
Balance at previous fiscal year end
Changes of items during the period
Reversal of reserve for losses on overseas
investment
Provision of reserve for special depreciation

Reversal of reserve for special depreciation
Reversal of reserve for depreciation
reduction of fixed assets
Reversal of other reserve
Cash dividends paid
Net income
Disposal of treasury stock
Total changes of items during the period

Balance at current fiscal year end
Total retained earnings
Balance at previous fiscal year end
Changes of items during the period
Cash dividends paid
Net income
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end
Treasury stock
Balance at previous fiscal year end
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end
Total stockholdersʼ equity
Balance at previous fiscal year end
Changes of items during the period
Cash dividends paid
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at current fiscal year end

43

Year ended
March 31, 201127,23059,98700(8,041)20(1,038)
1,593

8

6

50,000(19,346)
10,121(7)
32,75759,987‐(20,631)
17,118(8)(2,958)57,029533,399

524,168(19,346)
10,121(7)(9,231)
524,168(20,631)
17,118(8)(3,520)520,647(93,859)(93,992)

(153)
20
(132)
(93,992)

(118)
21
(96)
(94,088)698,903689,539(19,346)
10,121(153)
13(9,363)
689,539(20,631)
17,118(118)
13(3,617)685,922

(Million yen)

Year ended
March 31, 2010
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Balance at previous fiscal year end

Year ended
March 31, 2011

(3,969)

8,007

Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period

11,977(7,244)

11,977(7,244)

Balance at current fiscal year end

8,007

763

(6)

(7)

(1)

(2)

(1)
(7)

(2)
(10)

(3,975)8,000

11,975(7,247)

11,9758,000(7,247)752

694,927

697,539

Cash dividends paid

(19,346)(20,631)

Net income

10,121

17,118

(153)

(118)

13

13

11,975(7,247)

2,612(10,864)

697,539

686,674

Net deferred losses on hedges
Balance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Total valuation and translation adjustments
Balance at previous fiscal year end
Changes of items during the period
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end
Total net assets
Balance at previous fiscal year end
Changes of items during the period

Purchase of treasury stock
Disposal of treasury stock
Net changes in items other thanstockholdersʼ equity
Total changes of items during the period
Balance at current fiscal year end

44

(4) Notes on premise of a going concern
None

6. Other information(1) Changes in directors and officers (as of June 29, 2011)
1) Director to be retired (at the end of the Ordinary General Meeting of Shareholders to be held on
June 29)
Managing Director
Shigeru Kashiwabara (to be assigned as President of DNP
Trading Co., Ltd.)Managing Director
Kenji Noguchi(to be assigned as the Companyʼs Standing
Statutory Auditor)
Director
Tatsuo Komaki (to be assigned as the Companyʼs SeniorCorporate Officer)
Director
Akira Yokomizo (President of DNP Chubu Co., Ltd., current
position)
2) Directors to be promoted (at the Board of Directorsʼ meeting following the Ordinary General
Meeting of Shareholders to be held on June 29)
Managing Director
Masaki Tsukada (currently Director)
Managing Director
Sakae Hikita(currently Director)
3) New statutory auditor candidates (at the Ordinary General Meeting of Shareholders to be heldon June 29)
Standing Statutory Auditor Kenji Noguchi (currently the Companyʼs Managing Director)
Standing Statutory Auditor (outside)
Shinichi Ikeda (currently Manager of Related Business
Division, The Dai-ichi Life Insurance Co., Ltd.)
Statutory Auditor (outside) Makoto Matsuura(Lawyer)4) Statutory auditors to be retired (at the end of the Ordinary General Meeting of Shareholders tobe held on June 29)
Standing Statutory Auditor
Noriaki Nakamura
Standing Statutory Auditor (outside) Kiyoshi Yuzawa
Statutory Auditor (outside)
Yasuchika Negoro
5) New corporate officer candidates
Senior Corporate Officer Tatsuo Komaki(currently the Companyʼs Director)

6) Corporate officers to be retired
Senior Corporate Officer
Koichi Hashimoto (to be assigned as Director and SeniorCorporate Officer of DNP Nishinippon Co., Ltd.)
Corporate Officer
Akira Oguri (President of DNP Nishinihon Co., Ltd., current
position)45

Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer

Katsuhisa Fudouta (President of DNP Tohoku Co., Ltd., current
position)
Kensuke Nakamura (President of DNP Hokkaido Co., Ltd.,
current position)
Yoshio Nishida (to be assigned as Technical Advisor of
Aseptic Systems Co., Ltd.)
Yoji Yamakawa (to be assigned as Director and Managing
Corporate Officer of DNP Trading Co., Ltd.)
Jun-ichi Funatsu (to be assigned as President of DNP
Logistics Co., Ltd.)
Masanori Akada (President of DNP Techno Research Co., Ltd.,
current position)46