Interview with President Yoshinari Kitajima

The DNP Group Will Continue to Take on the Challenge of Promoting Innovations and Will Create, Provide and Expand Value

We aim to ensure that DNP’s products and services exist as “basics” that help solve people’s problems and also even exceed their expectations. Breathing this desire into the corporate statement “Today’s Innovation is Tomorrow’s Basic,” DNP will undertake a variety of businesses.

Q. You are aiming to realize your “Third Corporate Founding.” Could you explain this?

We will realize our “Third Corporate Founding” by taking on the challenge of promoting innovations and continually creating new value.

Economic, social and environmental circumstances in Japan and overseas have been undergoing unprecedented major and dramatic changes in recent years. While anticipating such shifts, DNP will provide new value by proactively taking on the challenge of promoting innovations.

DNP possesses strengths in its independently advanced P&I (printing & information) and by synergizing these strengths is able to create “value unique to DNP.” This value enables people to enjoy comfortable lives and fills people with excitement. At the same time, this value also contributes to solving social issues to realize sustainable, safe and secure foundations for people’s lives.

DNP’s two predecessors originally carried out business centered on publishing printing. Following this initial period, DNP realized its “Second Corporate Founding” in which it broadened business domains through the application and advance of printing technologies. Today, DNP is going beyond this and is working to realize its “Third Corporate Founding.”

This involves synergizing DNP’s unique strengths of P&I (printing and information) while deepening collaboration with partners possessing strengths different from our own as we take on the challenge of creating new value for solving social issues and meeting the expectations of customers. In working to realize this objective, we will accelerate various initiatives such as synergizing the technologies and assets possessed by each department to deploy the total strengths of “All-DNP.”

Q. How will you create “new value”?

We will implement three measures for “creating, providing and expanding value.”

1. Create value primarily in growth areas

In keeping with our Business Vision of “Use P&I Innovations to expand business, primarily around four growth areas,” DNP is striving to achieve growth in the four domains of Knowledge and Communication, Food and Healthcare, Lifestyle and Mobility, and Environment and Energy.

There are numerous issues throughout the world that still remain unsolved, as evidenced by the Sustainable Development Goals (SDGs) adopted at the United Nations Sustainable Development Summit 2015. By working to solve these problems, DNP will not only help realize an even more stable social infrastructure but will also strive to provide value that further enriches the cultures of people who live using this infrastructure and wows them by meeting and even exceeding their expectations.

We will make efforts to ensure that companies and consumers in Japan and overseas appreciate the value of the products and services created by DNP so that this value leads to an increase in DNP’s profits.

2. Provide value to the global market

Value chains and information networks currently span the globe and are closely connected. DNP also will undertake business widely with the world as a market. In doing so, we will accurately identify the characteristics, issues and needs of each region overseas and will determine whether DNP’s products and services would be of value there.

DNP commenced its business overseas in 1964 and today carries out its business globally. This business includes the packaging business encompassing packaging for daily-use items and foods; businesses such as the manufacture of printing media for photo prints and the photo service; housing and non-housing interior and exterior materials; and electronics products such as electronics devices. Together with the approximately 5,000 employees working at overseas bases, we plan to further raise synergies between our domestic and overseas businesses in the future.

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

We believe that remuneration for the value we provide comes in the form of profits and will strive to achieve growth by firmly increasing that value. To maintain and strengthen our business competitiveness and maximize profits, we will therefore continually re-evaluate our strategies, tactics and markets from the perspective of value as well as work to optimize internal systems and rules.

To the present, we have integrated and reorganized business departments and Group companies. We will continue to implement every type of structural reform as we aim to build an optimal business portfolio.

Q. Environmental, Social and Governance (ESG) initiatives are becoming increasingly important. What are your thoughts on this?

We will continue to take ESG as a crucial management issue and strengthen the ESG initiatives to become a company that earns the trust of all stakeholders.

DNP is promoting corporate activities with an awareness of strengthening environmental, social and governance (ESG) initiatives for contributing to the sustainable development of society, improving DNP’s corporate value and becoming a company that earns the trust of all stakeholders.

Regarding “environment,” DNP has always considered the importance of coexistence between its business activities and the natural environment and we have set “Environmental conservation and the realization of a sustainable society” as one part of our Code of Conduct. DNP has prescribed the DNP Group Environmental Policy and complies with laws and regulations and undertakes a variety of environmental activities in addition to striving to contribute through its business activities such as by developing products and services that reduce environmental impact. As examples of these efforts, we offer DNP’s environmentally friendly or green packaging series that is used for familiar products in people’s lives. We also sell such products as Biomatech, a packaging material that contains some plant-based ingredients, and easily recyclable single material (mono-material) packaging. In April 2019, DNP’s “multifunctional insulation box” took home the Grand Prize for the Global Environment Awards based on its high acclaim for improving transportation efficiency, reducing environmental impact and curtailing food waste by building a cold chain that maintains low-temperature transportation.

Regarding “social,” DNP has formulated priority themes for CSR management that include Fair Operating Practices, Human Rights and Labor, Responsible Procurement, Product Safety and Quality, Information Security and Corporate Citizenship and is focusing efforts on a variety of related activities. As an example of such activities, DNP is utilizing the steps it has taken to empower women at work since the early 2000s and accelerated the initiatives to create value by leveraging diversity through the establishment of the Diversity Promotion Department in June 2018.

Moreover, DNP also considers strengthening corporate governance as one crucial management issue. DNP has built and operated a strong structure for management decision-making and business execution and for auditing and monitoring these functions. At the same time, DNP works to enhance integrated corporate governance such as by implementing thoroughgoing employee training and education.

These types of environmental, social and governance (ESG) initiatives are also earning high acclaim from outside the company. For example, DNP has been selected for many indices of global socially responsible investments (SRI), most notably the FTSE4Good Global Index and MSCI Global Sustainability Indexes. Additionally, as of July 2019, DNP was the only company in Japan’s printing industry to be selected as a constituent of all four ESG indices adopted by Japan’s Government Pension Investment Fund (GPIF).

Q. What is your message to stakeholders?

DNP will leverage its strengths, including its human resources, to create “Tomorrow’s Basic” that exists close to people’s daily lives.

The approximately 40,001 employees comprising the DNP Group are above all valuable assets with unique strengths that we can synergize to create unlimited potentials. Also, we will more vigorously promote collaboration with outside partners that possess stgths that differ from those of DNP.

To raise the effects of these efforts, while focusing on society as a whole as it undergoes rapid changes, we will work toward designing and rebuilding our personnel systems to create a more open and free organization, realize even friendlier work environments and make it easier to create value.

We have a corporate culture of continually taking on the challenge of promoting innovations. We will strive to anticipate social issues and people’s expectations and anticipate the type of value being demanded and provide new value through optimal products and services. I hope to ensure that DNP’s products and services are indispensable and exist in the daily life of each and every consumer as “basics.” Breathing this desire into the corporate statement “Today’s Innovation is Tomorrow’s Basic,” DNP will undertake a variety of businesses.

DNP will of course continue to maintain transparency and fairness, deepen TAIWA (dialogue) with numerous stakeholders that include shareholders as well as achieve sustainable growth and improve corporate value. In the future, I ask for your further support as we work to achieve our objectives.

For Realizing our “Third Corporate Founding”

DNP will now synergize its unrivalled and unique strengths in P&I (printing & information) as well as carry out wide-ranging cooperation with our numerous partners and solve social issues while focusing on the creation of new value that meets the expectations of people. DNP, which has continued to “Take on the challenge of promoting innovations” in any era, will deploy the total strengths of “All DNP” with the entire Group working as one to attain its “Third Corporate Founding” and ensure this leads to sustainable growth both for DNP and society.

Three Key Measures for Realizing Our “Third Corporate Founding”

Generate value byexpanding business, primarily in growth areas
As reflected by the SDGs, there are still numerous issues throughout the world that remain unsolved. DNP will create unprecedented “new value” by developing and providing products and services that help solve social problems and exceed peopleʼs assumptions and expectations.
Provide value to the global market
With value chains now extending across the globe, DNP will carry out its business from a global perspective that looks beyond Japan. As of March 2019, DNP operated 15 production bases and 27 sales bases overseas and will widely provide “new value” in Japan and overseas.
Increase corporate value by means of all kinds of structural reforms
We will continually re-evaluate markets and business models and promote business structure reforms and cost structure reforms that include integrating and reorganizing business departments and bases from the perspective of value. We will also work to expand value through the integrated utilization of such non-financial capital as human capital and intellectual capital and financial capital.

President’s Message