Realization of "Third Corporate Founding"

Yoshinari Kitajima, President

"The 40,000 employees comprising the DNP Group serve as valuable assets with unique strengths that we can synergize to create unlimited potentials. In addition, at the DNP Group, we are focused on combining our strengths with those of our partners to create value that contributes to society. By spreading this value across the entire world, we are confident we can play a key role in realizing an even better future."

Q. What kinds of strengths has the Company cultivated since its founding and how will you leverage these in the future?

We will synergize our unrivalled strengths in an integrated manner to create value that solves social issues.

DNP’s predecessor, Shueisha, was founded in 1876 and during the first approximately 70 years of operations carried out business centered on publishing printing. Despite later encountering a harsh management environment in the tumultuous post-war period, in 1951 we implemented the "five-year reconstruction plan" and promoted "expansion printing" to broaden our business domains by applying our printing technologies. As we expanded printed materials from paper to films, metals and others, we began printing for items, ranging from financial securities to packaging, decorative materials and electronics products, and subsequently evolved into one of the world’s leading comprehensive printing companies. We refer to this transformation as our "Second Corporate Founding." Moving forward to the 1970s, in pushing ahead with our ongoing transformation, we continuously took on challenges that included acting early to engage in the digitization of information and expanding our smart card and network-related businesses.

We are currently in the midst of dramatic changes. Until now, we could achieve growth in business results merely by addressing issues facing our corporate customers. Today, however, even corporate customers themselves are unable to identify issues, meaning that DNP must earnestly take the initiative in identifying and finding solutions to issues facing people and society.

Given these circumstances, I’m convinced the time is ripe for us to realize our "Third Corporate Founding "that transcends our "Second Corporate Founding. "Specifically, we need to undertake integrated activities that synergize our unrivalled strengths in printing (P) and information (I), our financial capital and non-financial capital such as technologies and human resources, and the strengths of our partners. I believe these efforts will allow us to continuously create "new value "for solving social issues and drive our medium- and long-term growth.

Instead of only considering our own corporate customers as in the past, we now need to also focus on society as a whole, consider the people actually living within society and identify their latent concerns and needs. Broadening our perspective in this manner will position us to quickly become aware of numerous social issues. From among these, we will then select target issues DNP is uniquely capable of solving and strive to connect these endeavors to new businesses.

Our "Third Corporate Founding "represents a challenge whereby DNP strives to continue providing value that helps solve challenges facing society and we will make our utmost groupwide efforts to realize this goal.

Q. What types of measures will you implement to realize your "Third Corporate Founding"?

We plan to implement three measures for "generating, providing and expanding value."

1. Generate value by expanding business, primarily in growth areas

DNP will combine its unrivalled strengths in P&I with the strengths of its partners to generate value that enables solutions to issues facing society in these four growth areas. In this regard, we will strive to create products and services that allow us to deploy DNPʼs true strengths. In other words, we aim to create "products and services not easily reproduced by anyone else" and ultimately "products and services for which competition does not yet even exist."
The Sustainable Development Goals (SDGs) adopted by the United Nations in 2015 express 17 goals and 169 targets, underscoring the numerous unresolved issues around us. As there are still no resolutions to some of these issues, the solutions we generate will represent long-awaited "new value" for the people directly affected by these challenges. DNPʼs four growth areas and the SDGs serve as so-called sources of value, and we intend to build a strong business portfolio by continuously creating new value.

2. Provide value to the global market

As the trend toward borderless markets and value chains gains momentum, DNP will also provide products and services that have the value of leading to solutions across a wide range in both Japan and overseas. Although there is no template for creating new value, Joseph Schumpeter, a renowned political economist who articulated the concept of innovation, described innovation as being "new combinations." I believe we can spur innovation by taking new perspectives and re-evaluating and combining our existing products, services and technological strengths and deploying these in new markets in Japan and overseas.
Therefore, we must ensure optimal designs tailored to each region and provide the products and services needed in these locations, and to do so, we will also focus on strengthening our global marketing functions.

3. Expand corporate value by means of all kinds of structural reforms

The new value we generate can also gradually lose its appeal with the passing of time or when other companies catch up. To maintain and strengthen our business competitiveness and maximize profits, we therefore need to continually ask ourselves "what is new value?" and re-evaluate our strategies, tactics, business partners and markets while optimizing internal systems and rules. To the present, we have integrated and reorganized business departments and Group companies and undertaken innovation activities in sales, production and business operations. Going forward, we will continue to implement all kinds of business structural reforms aimed at maximizing our corporate value.

Q. What do you wish to focus on in the future?

We will continue to create a corporate climate for deepening Taiwa (dialogue) and cooperation and enabling value creation.

Besides the measures I have just explained, the successful execution of our "Third Corporate Founding" also requires that each and every employee changes his or her actions and awareness. Up to now, it was advantageous to build structures for sales, planning, technologies, manufacturing and management for each individual business department. At present, however, amid the diversification of people’s values and needs, swiftly undertaking corporate activities flexibly tailored to meet changing needs is essential. There are also a growing number of instances in which single business departments alone are insufficient to respond. The 40,000 employees making up the DNP Group serve as valuable assets possessing their own unique strengths as professionals. I believe there are an unlimited number of patterns for synergizing these strengths. This is precisely why realizing our "Third Corporate Founding" will be contingent on creating a climate for deepening Taiwa and promoting collaboration, with all employees possessing an All-DNP awareness. Moreover, I would also like to continuously create value by deepening our Taiwa and cooperation with domestic and overseas partners and numerous stakeholders.

President’s Message