Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2020 [J-GAAP]
February 12, 2020

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.dnp.co.jp/eng/
Representative:
Yoshinari Kitajima, President
Contact person:
Daisuke Sasaki, General Manager, IR and Public Relations
Telephone:+81-3-6735-0124
Securities report issuing date:February 12, 2020
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly results briefing:No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2019
(April 1, 2019 – December 31, 2019)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Nine months ended
December 31, 2019
Nine months ended
December 31, 2018

Million yen%

Million yen%

Million yen%

Million yen%

1,047,155

0.1

41,345

14.4

47,906

15.5

87,077242.4

1,046,366(0.4)

36,14910.941,49014.4

25,427–

Note: Comprehensive income: For the first nine months ended December 31, 2019: ¥ 75,668 million (435.1%)
For the first nine months ended December 31, 2018: ¥14,141 million (-75.9%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2019
Nine months ended
December 31, 2018

Yen

Yen

291.13291.10

84.29

84.26

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2019

1,779,259

1,068,209

57.1

As of March 31, 2019

1,775,022

1,046,622

56.1

Note: Stockholders’ equity as of December 31, 2019: ¥ 1,015,972 million

As of March 31, 2019: ¥ 996,162 million

2. Dividends
Annual Dividends (Yen)First Quarterend

Year ended
March 31, 2019Year ending
March 31, 2020

Second Quarter- Third Quarterend
end

–

32.00

–

–

32.00

–

Year-end

Total

32.00

64.00

Year ending March 31, 2020
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the third quarter: No

64.00

3. Consolidated earnings forecasts for the year ending March 31, 2020
(April 1, 2019 – March 31, 2020)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income
Ordinary Income
Parent Company
per Share
Shareholders

Net Sales%Yen

1,416,000
1.0
51,0002.2
58,5000.4
65,000–Note: Revisions to the most recently announced earnings forecasts during the third quarter: Yes

218.86

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the third quarter (changes in specified subsidiaries
resulting in change of scope of consolidation): No(2) Application of accounting procedures peculiar to quarterly consolidated financial statement
preparation: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No
Note: For further details, see the section titled, “2. Quarterly consolidated financial statements and key notes, (3)Notes regarding quarterly consolidated financial statements [Changes in accounting policies]” on page 9.

(4) 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 each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of December 31,
2019324,240,346
shares

As of March 31, 2019324,240,346
shares

As of December 31,
2019

34,263,045
shares

As of March 31, 201922,420,745
sharesNine months ended
December 31, 2019

299,098,706
sharesNine months ended
December 31, 2018

301,684,323
shares* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was published. Actual results
may differ significantly due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Qualitative information on the
consolidated results for the third quarter (3) Explanation of the consolidated earnings forecasts,” on page 4.

Contents
1. Qualitative information on the consolidated results for the third quarter ....................... 2(1) Explanation of the consolidated financial results......................................................... 2(2) Explanation of the consolidated financial position ...................................................... 3(3) Explanation of the consolidated earnings forecasts .................................................... 4
2. Quarterly consolidated financial statements and key notes ............................................. 5(1) Quarterly consolidated balance sheets ......................................................................... 5(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income ........................................................................... 7
Quarterly consolidated statements of income
First nine months of the fiscal years .......................................................................... 7
Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years .......................................................................... 8(3) Notes regarding quarterly consolidated financial statements ..................................... 9[Notes on premise of a going concern].......................................................................... 9[Significant changes in shareholders’ equity] ............................................................... 9[Changes in accounting policies] ................................................................................... 9[Segment information, etc.]............................................................................................. 9

1

1. Qualitative information on the consolidated results for the third quarter(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group in the first nine months of the fiscal year ending
March 2020 reflected online advertising market growth and stronger consumer attributesfocused digital marketing activities driven by advances in digital technologies. Planning isunderway for numerous events aimed at creating a dynamic atmosphere around the approaching
Tokyo 2020 Olympic and Paralympic Games. Rising demand for environmentally conscious
products and services and growing moves to develop new products such as autonomous drivingthat target a next-generation automotive society have also provided the DNP Group with new
business opportunities.
In this environment, the DNP Group sought to strengthen its core businesses as part of its
mission to connect individuals and society and provide new value, focusing on products andservices such as its globally competitive smart cards, battery pouches for lithium-ion batteries,in which it has a leading global market share, metal masks used in the production of organic
light-emitting diode (OLED) displays, thermal transfer printing media for photo printers, andoptical film for displays. The DNP Group is also pursuing “P&I innovations” that synergize its
strengths in Printing & Information (P&I) to create new value based on its growth areas ofKnowledge and Communication, Food and Healthcare, Lifestyle and Mobility, and Environment
and Energy. The DNP Group continued to pursue these value-creation initiatives during the third
quarter while working to build a strong portfolio through selectivity and focus.
As a result of these efforts, the DNP Group’s profitability improved, with a 0.4 percentage
point year-on-year increase in the ratio of operating income to net sales for the first nine monthsof the fiscal year ending March 2020, to 3.9%.
In addition to reviewing its asset holdings, including strategic shareholdings, in order tostreamline and make more effective use of its assets, the DNP Group also began on September
12, 2019 to repurchase up to 30.0 million shares (to a maximum value of ¥60.0 billion), with theaim of improving capital efficiency and returning value to shareholders. As of the end of the third
quarter, it had purchased 11.83 million shares for ¥34.3 billion.
As a result, consolidated net sales for the first nine months grew 0.1% year on year to¥1,047.1 billion, consolidated operating income grew 14.4% to ¥41.3 billion, consolidated
ordinary income grew 15.5% to ¥47.9 billion, and net income attributable to parent company
shareholders grew 242.4% to ¥87.0 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, sales of printed media such as pamphlets and catalogs
decreased. However, overall sales increased on greater demand for smart cards in line with theshift toward cashless payments and steady growth in priority businesses such as Business
Process Outsourcing (BPO). These services handle business processes on behalf of companies
seeking to respond to labor shortages and work-style reforms.
In the Imaging Communication business, overall sales increased as sales of thermal transfer
printing media for photo printing remained strong, and favorable trends in the “experience-basedvalue creation” business that aims to enhance people’s experiences through photographs taken
at locations such as tourist destinations and event venues.
In the Publishing business, the DNP Group worked to help solve problems within the
publishing industry, drawing on its strengths as the sole corporate group spanning the entire
industry supply chain, from planning and advertising through manufacturing, distribution, andsales. In Publications Distribution, e-book sales trends in the “honto” hybrid bookstore networkthat combines physical bookstores, online bookstores, and e-book services were favorable, andthe number of libraries outsourcing operations increased. As a result, Publications Distribution
sales remained flat year on year. However, sales of both books and magazines declined in
Publishing & Media Services due to publishing market weakness. As a result, overall sales in the
Publishing business decreased.

2

Operating income in the Information Communication segment rose due to growth in the
Information Innovation and Imaging Communication businesses, despite an impact from pricehikes for printing paper and other raw materials.
As a result of the above, overall segment sales grew 1.7% year on year to ¥573.9 billion, andoperating income grew 25.8% to ¥21.2 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell environmentallyconscious packaging with the aim of contributing to a recycling-based society and reducing
environmental impact based on three value propositions: sustainably sourced raw materials,
lower CO2 emissions, and resource reuse. Alongside the above, the DNP Group undertook arigorous review of low value-added products with the aim of improving capital efficiency. As aresult, sales decreased for commodity paper and film packaging products, and overall sales in
the Packaging business decreased.
In the Living Spaces business, the DNP Group worked on selling high-performance,
environmentally conscious products that combine high-quality design driven by sophisticatedimage processing and printing technologies with its proprietary electron beam (EB) coating
technology. However, the significant impact of a decline in housing starts in Japan resulted in adecrease in overall sales in the Living Spaces business.
In the Industrial Supplies business, sales rose sharply for battery pouches used in automotive
lithium-ion batteries due to greater uptake of electric vehicles, and sales of photovoltaic module
components also increased year on year. As a result, overall sales in the Industrial Supplies
business increased.
Operating income in the Lifestyle and Industrial Supplies segment increased due to factors
including sales growth in the Industrial Supplies business, restructuring benefits, and lower raw
material prices.
As a result of the above, overall segment sales fell 1.2% year on year to ¥294.9 billion, but
operating income grew 30.9% to ¥8.0 billion.
Electronics
In the Display Components business, sales increased for metal masks used in the production oforganic light-emitting diode (OLED) displays due to the transition from LCD to OLED displays for
smartphones, but a structural review of the LCD color filter business in line with falling demand
resulted in a sharp decline in sales. Sales of optical films for OLED displays increased, but salesof products used in LCD TVs declined. As a result, overall sales in the Display Components
business decreased.
In the Electronic Devices business, semiconductor photomask sales decreased due to a
decline in semiconductor market conditions. As a result, sales in the Electronic Devices businessdeclined.
Operating income in the Electronics segment decreased due to the decline in sales.
As a result of the above, overall segment sales fell 4.4% year on year to ¥139.8 billion, andoperating income fell 5.6% to ¥26.3 billion.
[BEVERAGES]
Beverages
The DNP Group worked to increase its share in existing markets and acquire new customers by
releasing new products in core brands such as Coca-Cola and stepping up sales promotion in
the vending machine business and to mass merchandisers.
However, overall segment sales fell 1.3% year on year to ¥41.6 billion as sales to customers
in Hokkaido rose, but sales to bottlers in other regions declined due to adverse weather.
Operating income also decreased 15.6% year on year to ¥1.8 billion, due to an increase in thecost of sales in line with lower production volume and a rise in sales promotion expenses.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter increased by ¥4.2 billion from the end of the previous
fiscal year to ¥1,779.2 billion, due mainly to an increase in cash and time deposits.

3

Total liabilities decreased by ¥17.3 billion from the end of the previous fiscal year to ¥711.0
billion, due mainly to a decline in repair reserves.
Net assets increased by ¥21.5 billion from the end of the previous fiscal year to ¥1,068.2
billion, due mainly to an increase in retained earnings.
(3) Explanation of the consolidated earnings forecasts
We have revised the earnings forecasts for the fiscal year ending March 2020 announced on
May 14, 2019. For details, see our February 12, 2020 “Announcement of Revisions toConsolidated Earnings Forecasts for Fiscal Year Ending March 2020.”

42. Quarterly consolidated financial statements and key notes(1) Quarterly consolidated balance sheets(Million yen)

As of March 31, 2019

As of December 31,
2019

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS

5

268,046
351,450
79,80930,07423,18748,226(1,515)799,280

324,319
335,483
79,81134,35425,09237,908(1,351)
835,617

183,878
67,514
147,924
11,76030,042
441,120

170,656
67,767
145,975
14,843
28,101
427,345

28,91428,91428,60228,602

393,104
114,918(2,315)505,707975,742
1,775,022

376,468
113,422(2,197)
487,693943,641
1,779,259

(Million yen)

As of March 31, 2019

As of December 31,
2019

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

246,138
42,474

242,003
31,276

Bonds redeemable within 1 year

51,49052,490Reserve for bonuses

18,145

7,297

Repair reserve

19,162

20,341

Other

90,245

101,571

Total current liabilities

467,655454,980

Bonds

59,61057,120Long-term debt

10,045

10,263

Repair reserve

70,211

57,371

Net defined benefit liability

34,73335,294

Deferred tax liabilities

65,30075,860Other

20,845

20,158

Total long-term liabilities

260,745

256,069

728,400

711,050

Common stock

114,464

114,464

Capital surplus

144,765

145,018

Retained earnings

626,949694,745

Treasury stock(62,898)(97,262)

Total stockholders’ equity

823,281856,965

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges

170,073

160,115(1)20

Foreign currency translation adjustments(2,398)(5,612)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

5,208

4,484

172,881

159,007

Non-controlling interests

50,45952,236TOTAL NET ASSETS

1,046,622

1,068,209

TOTAL LIABILITIES AND NET ASSETS

1,775,022

1,779,259

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity6(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2018
1,046,366

Nine months ended
December 31, 2019
1,047,155

Cost of sales

836,696

827,747

Gross profit

209,670

219,407

Selling, general and administrative expenses

173,520

178,062

Operating income

36,14941,345

4,823
2,986
3,420
11,230

5,105
4,778
3,051
12,935

1,570
1,175
3,144
5,889

1,158
2,153
3,061
6,373

41,49047,906

549
1,104
2,023
96
3,774

30,15551,367–
29
81,552

2,009
1,764
3
1,458
212
5,448

1,709
–
605
313
111
2,739

39,816

126,719

9,166
3,171
12,33827,47820,197
17,07037,26789,451

2,050

2,374

25,42787,077

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on sale of stock in affiliates
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
Loss on sale of investment securities
Loss on devaluation of investment securities
Other
Total extraordinary losses
Income before income taxes and non-controllinginterests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders

7

Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2018
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

8

Nine months ended
December 31, 201927,47889,451(10,767)(10,081)12(1,994)(346)

36(2,416)
(860)

(239)

(461)

(13,336)
14,141(13,783)
75,66812,4891,652

73,202
2,465

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
The value of treasury stock increased by ¥34,364 million in the first nine months of this fiscal
year due to factors including the repurchase of DNP stock decided on by the Board of Directors
at a meeting on September 11, 2019.
[Changes in accounting policies]
The DNP Group’s IFRS-applied subsidiaries have applied IFRS 16 (leases) as of the first quarterof this fiscal year. Accordingly, for the lessee’s lease transactions, in principle the Company
recognizes all right-of-use assets and lease obligations and book depreciation expenses fromright-of-use assets and interest expenses from lease obligations.
Of note, the application of the said accounting standards has limited impact on the Company’squarterly financial statements.

[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2018 – December 31, 2018)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

560,963

296,856

146,352

42,194

1,046,366–

1,046,366

Inter-segment

3,457

1,541

–

10

5,008

(5,008)–

Total

564,420

298,397

146,352

42,204

1,051,375(5,008)1,046,366

Segment income

16,881

6,151

27,9592,137

53,130(16,980)

36,149Beverages

Total

Net sales
Outside customers

Notes:

1.
2.

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 income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

II. First nine months of current fiscal year (April 1, 2019 – December 31, 2019)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

571,568

294,074

139,871

41,6401,047,155–

1,047,155

Inter-segment

2,406

867

–

16

3,289

(3,289)–

Total

573,974

294,941

139,871

41,656

1,050,444(3,289)1,047,155

Segment income

21,2408,052

26,3891,803

57,485(16,140)

41,345Beverages

Total

Net sales
Outside customers

Notes:

1.
2.

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 income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

9