Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2022 [J-GAAP]

Company Name:
Stock exchange listing:Stock code:
Representative:
Contact person:

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: https://www.dnp.co.jp/eng/
Yoshinari Kitajima, President
Naoki Wakabayashi,
General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:February 10, 2022
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly results briefing:No

February 10, 2022

(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2021
(April 1, 2021 – December 31, 2021)(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, 2021
Nine months ended
December 31, 2020

Million yen%

Million yen%

Million yen%

Million yen%

1,001,660

1.4

49,25854.1

58,962

48.9

69,551

188.5

987,689(5.7)

31,959(22.7)

39,598(17.3)

24,109(72.3)

Note: Comprehensive income: For the first nine months ended December 31, 2021: ¥109,884 million (35.3%)
For the first nine months ended December 31, 2020: ¥81,199 million (7.3%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2021
Nine months ended
December 31, 2020

Yen

Yen

253.54253.50

85.84

85.80

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2021

1,906,032

1,155,107

57.7

As of March 31, 2021

1,825,019

1,098,613

57.2

Note: Stockholders’ equity as of December 31, 2021: ¥1,100,048 million

As of March 31, 2021: ¥1,043,977 million

2. Dividends
Annual Dividends (Yen)First Quarterend

Year ended
March 31, 2021
Year ending
March 31, 2022

Second Quarter- Third Quarterend
end

–

32.00

–

–

32.00

–

Year-end

Total

32.00

64.00

Year ending March 31, 2022
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, 2022
(April 1, 2021 – March 31, 2022)(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

1,350,000
1.1
63,00027.2
73,00021.9
70,000 179.0
Note: Revisions to the most recently announced earnings forecasts during the third quarter: Yes

256.31

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 more information, 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,
2021

317,240,346
shares

As of March 31, 2021

324,240,346
shares

As of December 31,
2021

48,173,707
shares

As of March 31, 2021

43,363,670
sharesNine months ended
December 31, 2021

274,316,961
sharesNine months ended
December 31, 2020

280,879,755
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 and other projections ..............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[Additional information] ............................................................................................... 10[Segment information, etc.] ......................................................................................... 11-1-

1. Qualitative information on the consolidated results for the third quarter(1) Explanation of the consolidated financial results
Conditions surrounding the DNP Group during the first nine months of the fiscal year ending
March 2022 were affected by the global spread of variants of the novel coronavirus (COVID-19),
with individuals’ lives, society, and the economy remaining subject to various restrictions. As
working styles and lifestyles have changed at an accelerated pace, demand has increased within
Japan for network-based distance learning and online medical consultations, as well as for 5thgeneration mobile communications (5G) and higher-performance digital devices, etc. In addition,as people around the world are becoming more aware of the need to prevent global warming
and reduce the burdens that humans place on the global environment, demand for eco-friendly
products and services has expanded.
Amid these conditions, the DNP Group worked to create the kind of innovative value thatpeople expect of it, as well as to resolve social issues in order to realize a better, moresustainable society and more comfortable lifestyles. As it always has, the DNP Group continues
to aspire to contribute to society and enrich people’s lives. Today we express that desire throughour brand statement, “Today’s Innovation is Tomorrow’s Basic.” By combining our uniquestrengths in printing and information (P&I), forming deeper alliances with our many partners, andby providing value that is indispensable to individuals and society, we have worked to develop
people’s awareness of DNP as a presence that people cannot do without. In particular, we
designated “focus business” areas where we anticipate strong market growth and profitability:
the Internet of Things (IoT) and next-generation communications, data distribution, mobility, andthe environment. We are working to expand our business by prioritizing and optimizing
management resources in these areas. We have also taken on structural reforms aimed atboosting competitiveness as we work to build a strong business portfolio.
As a result of these efforts, consolidated net sales for the first nine months grew 1.4% year
on year to ¥1,001.6 billion, consolidated operating income grew 54.1% to ¥49.2 billion,
consolidated ordinary income grew 48.9% to ¥58.9 billion, and net income attributable to parent
company shareholders grew 188.5% to ¥69.5 billion, helped by the recording of extraordinary
gains associated with revision of our retirement benefit plans and the sale of some investment
securities.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, recovery in areas such as promotional direct mail wasoffset by decline in large Business Process Outsourcing (BPO) projects and a slowdown ingrowth of demand for smart cards related to Japan’s social ID (“My Number”) cards. As a result,overall sales in the Information Innovation business declined.
In Imaging Communications, sales increased due to a recovery in demand for photo shooting,photo printing materials and services, mainly in the US, which is the core market of this business.
In Publishing, e-book sales remained firm, and sales increased in the “honto” hybrid bookstore
network that handles both printed and electronic books. Sales of digital library services andlibrary management operations were also solid, but sluggish sales of magazine printing
contributed to a decline in overall Publishing sales.
As a result of the above, especially due to the decline in large BPO projects related togovernment policies, overall segment sales fell 2.0% year on year to ¥518.6 billion. Nevertheless,largely thanks to effective cost structure reforms, operating income grew 67.7% to ¥17.8 billion.
Lifestyle and Industrial Supplies
In the Packaging business, overall sales increased. Although the COVID-19 pandemic led to
declines in sales of commercial packaging materials for souvenirs sold at tourist destinations
and for use by restaurants, we worked hard to develop and sell eco-friendly packaging products,
and were also helped by increased sales of aseptic filling systems.

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In the Living Spaces business, sales increased in decorative films for automobile interiors anddecorative materials for residential interiors and exteriors, thanks to recovery trends in the
housing and automobile markets. In addition, demand for antibacterial and antiviral products thatare effective in preventing infections also increased, contributing to an increase in overall Living
Spaces sales.
The High-Performance Industrial Supplies business was affected by a temporary drop in
production in its customers and suppliers caused by a global shortage of semiconductors.
However, demand for battery pouches for lithium-ion batteries rose due to worldwide growth indemand for electric vehicles as well as increased demand for products like tablets andsmartphones driven mainly by the spread of teleworking. Overall sales of High-Performance
Industrial Supplies increased.
As a result of the above, overall segment sales grew 5.4% year on year to ¥290.5 billion.
Operating income grew 31.3% to ¥11.6 billion due to growth in the High-Performance Industrial
Supplies business, cost reductions resulting from optimization of manufacturing systems, andprogress in passing on higher materials costs to customers.
Electronics
In the Display Components business, sales of optical films used for televisions decreased dueto the winding down of “nesting consumption” (greater demand for home-use products as people
spent more time at home). However, sales of films for laptop and desktop computer monitors
remained steady due to the spread of teleworking and online learning. Overall optical film sales
increased. Sales of metal masks used in the production of organic light-emitting diode (OLED)
displays also increased, due to continued strong demand for OLED displays for smartphones.
Overall, Display Components sales increased.
In the Electronic Devices business, the accelerated digital transformation of companies andlocal governments revved up demand for semiconductors, which in turn sparked greater salesof semiconductor photomasks used for communications, vehicular components, and data
centers. In addition, we enjoyed strong sales of lead frames, a component of semiconductor
packages, resulting in an overall increase in sales of Electronic Devices.
As a result of the above, overall segment sales grew 7.6% year on year to ¥156.9 billion, andoperating income grew 29.3% to ¥35.4 billion due to growth in sales.
[BEVERAGES]
Beverages
We focused on the in-store and online sale of beverages in PET plastic bottles free of labels,
including product name labels, in order to reduce the burden on the environment and in response
to lifestyle changes, including increased online shopping, caused by the COVID-19 pandemic.
In alcoholic beverages, we worked on expanding our lineup of “Lemondo” products andexpanding sales of our new “Nomel’s Hard Lemonade.”
Overall segment sales declined by 3.5% year on year to ¥37.4 billion due to sluggish sales atrestaurants and bars as a result of the government’s stay-at-home request and activity
restrictions. Operating income was ¥0.8 billion (up 6.2% year on year) thanks to a thorough cost
reduction campaign.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter increased by ¥81.0 billion from the end of the previous
fiscal year to ¥1,906.0 billion, due mainly to an increase in investment securities.
Total liabilities increased by ¥24.5 billion from the end of the previous fiscal year to ¥750.9
billion, due mainly to an increase in deferred tax liabilities.
Net assets increased by ¥56.4 billion from the end of the previous fiscal year to ¥1,155.1
billion, due mainly to an increase in valuation difference on available-for-sale securities.

-3-(3) Explanation of the consolidated earnings forecasts
We have revised the consolidated earnings forecast for the fiscal year ending March 2022 thatwas originally published on May 13, 2021. For details, please refer to the “Announcement
Regarding Recording of Extraordinary Gains and Revision of Consolidated Earnings Forecasts”
dated February 10, 2022.

-4-

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

As of December 31,
2021

As of March 31, 2021
ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Notes, trade receivables, and contract
assetsMarketable securities
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-

301,162
324,625

260,095––

336,854

19,00075,54027,81023,42034,975(716)
805,817

18,50079,05632,05728,86027,174(699)
781,899

164,049
73,710141,808
13,23827,221420,029

162,007
72,862
141,806
24,387
26,480427,544

25,20725,20728,25528,255

422,799
153,905(2,741)
573,964
1,019,201
1,825,019

475,154
196,164(2,987)668,332
1,124,132
1,906,032

(Million yen)

As of March 31, 2021

As of December 31,
2021

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

226,606
37,321

233,893
28,001

Reserve for bonuses

19,284

7,681

Repair reserve

17,68818,351

Other

107,224

105,835

Total current liabilities

408,125

393,763

Bonds

103,550

102,500

Long-term debt

11,56915,375

Repair reserve

49,49143,145Net defined benefit liability

35,17456,194

Deferred tax liabilities

95,997

119,393

Other

22,496

20,552

Total long-term liabilities

318,279

357,161

726,405

750,925

Common stock

114,464

114,464

Capital surplus

145,024

145,048

Retained earnings

683,784

712,552

Treasury stock(122,920)(133,119)

Total stockholders’ equity

820,352

838,945

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

202,017

237,9041117

Foreign currency translation adjustments(5,082)

1,118

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income26,67822,062

223,624

261,102

Non-controlling interests

54,63655,058TOTAL NET ASSETS

1,098,613

1,155,107

TOTAL LIABILITIES AND NET ASSETS

1,825,019

1,906,032

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity-6-(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, 2020
987,689

Nine months ended
December 31, 2021
1,001,660

Cost of sales

785,013783,112Gross profit

202,676

218,548

Selling, general and administrative expenses

170,716

169,289

Operating income

31,95949,258

3,948
5,583
3,053
12,585

3,727
6,642
3,337
13,707

1,065
1,458
2,422
4,947

548
829
2,624
4,003

39,59858,962

453
165
–
365
–
984

5,962
11,284
18,534–
1,876
37,658

1,087
755
1,117
2,960

1,074
461
305
1,841

37,621

94,7798,454
3,157
11,61226,00911,056
12,512
23,56971,209

1,899

1,658

24,10969,551

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Retirement benefit plan revision gains
Compensation received
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
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, 2020
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) 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, 2021

26,00971,20957,98035,859(25)(2,625)
855

10
5,034
(4,546)

(993)

2,317

55,19081,19938,675
109,884

79,902
1,297

107,792
2,092

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥30,008 million during the first nine months of the fiscal year ending
March 2022, due mainly to share repurchases based on a resolution passed by the Board of
Directors on May 13, 2021.
Additionally, retained earnings decreased by ¥19,809 million and treasury stock decreasedby ¥19,809 million during the first nine months of the fiscal year ending March 2022, due to thecancellation of treasury stock on May 24, 2021 based on a resolution passed by the Board of
Directors on May 13, 2021.
[Changes in accounting policies](Adoption of revenue recognition standard)
The DNP Group applied the Accounting Standard for Revenue Recognition (AccountingStandards Board of Japan Statement No. 29, March 31, 2020; hereafter “the revenue recognition
standard”) from the beginning of the first quarter of the fiscal year ending March 2022. From thetime that control over promised goods or services is transferred to a customer, the amount ofmoney expected to be received in exchange for those goods or services will be recognized asrevenue. The main changes resulting from the adoption of the revenue recognition standard are
as follows:(1) Recognition of revenue related to paid transactions
The Company and some of its consolidated subsidiaries purchase raw materials, etc. from
customers, process those materials, etc., and sell them back to the same customer. DNP
previously recognized revenue from these types of transactions (with some exceptions) as theentire amount received for such products, including the amount paid for the purchase of raw
materials and other inputs. Now, however, we have changed to a method whereby we recognize
net revenue excluding the purchase price of raw materials and other inputs.
(2) Recognition of revenue from transactions in which DNP acts as agent
DNP previously recognized as revenue the entire amount received as payment from customers
who purchased books sold by some of its consolidated subsidiaries. However, regardingtransactions in which DNP acts as an agent when providing goods or services to customers, it
now recognizes as revenue the net amount obtained after subtracting payments to suppliers
from amounts received from customers.
In its application of the revenue recognition standard, DNP complies with the transitional
measures stipulated in the notes to Section 84 of the standard. It retroactively applied the newstandard to the period prior to the first quarter of the fiscal year ending March 2022, and adjusted
the first quarter’s initial retained earnings by the cumulative impact of that retroactive application,then began applying the new standard starting with the adjusted balance at the beginning of theperiod. However, using the approach stipulated in Section 86 of the revenue recognition standard,
we did not retroactively apply the new standard to contracts where virtually all revenue had beenrecognized prior to the beginning of the first quarter. In addition, the Company used the approachlaid out in Section 86 (1) of the revenue recognition standard regarding contracts that werechanged before the beginning of the first quarter: accounting for such contracts was based oncontract terms after all contract changes had been reflected, and the amount of cumulative
impact was added to or subtracted from retained earnings at the beginning of the first quarter.

-9-

As a result, net sales for the first nine months declined by ¥21,768 million, cost of sales by¥18,185 million, selling, general and administrative expenses by ¥3,202 million, and operating
income by ¥380 million, while ordinary income and income before income taxes and noncontrolling interests each decreased by ¥229 million. The balance of retained earnings at the
beginning of the quarter increased by ¥25 million.
Due to the introduction of the revenue recognition standard, “current assets” amounts thatwere displayed as “notes and trade receivables” in the consolidated balance sheet for the fiscal
year ended March 2021 are now included with “notes, trade receivables, and contract assets”
as of the first quarter of the fiscal term ending March 2022. In line with the transitional approachstipulated in Section 89-2 of the revenue recognition standard, the DNP Group has notreclassified figures from the previous fiscal year (through March 2021) according to the newpresentation method. Furthermore, in accordance with the transitional approach stipulated in
Section 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ Statement
No. 12, March 31, 2020), the DNP Group’s income statement does not break down revenue
generated by contracts with customers during the first nine months of the previous fiscal year asa separate item.
(Adoption of accounting standard for fair value measurement)
The DNP Group began applying the Accounting Standard for Fair Value Measurement (ASBJ
Statement No. 30, July 4, 2019; hereafter, “fair value measurement standard”) etc. as of the
beginning of the first quarter of the fiscal year ending March 2022. Going forward, we intend to
apply the new accounting policy defined by the standard in line with the transitional approachstipulated in Section 19 of said standard and Section 44-2 of the Accounting Standard for
Financial Instruments (ASBJ Statement No. 10, July 4, 2019). The impact of this change on the
DNP Group’s quarterly consolidated financial statements will be minimal.
[Additional information](Transition of retirement benefit plans)
Since October 1, 2021, the Company and some of its consolidated subsidiaries have transitioned
a portion of their retirement benefit plans to defined contribution pension plans.
Regarding accounting treatment associated with this change, we applied the Accounting
Treatment for Transition between Retirement Benefit Plans (ASBJ Implementation Guidance No.
1, December 16, 2016) and Practical Solution on Accounting for Transfer between Retirement
Benefit Plans (Practical Issues Task Force No. 2, February 7, 2007). As a result of this transition,
we have recorded ¥18,534 million in retirement benefit plan revision gains as extraordinary gains
for the first nine months of the fiscal year ending March 2022.

- 10 -

[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2020 – December 31, 2020)
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

527,462

275,441

145,969

38,815

987,689–

987,689

Inter-segment

1,699

272

–

13

1,985

(1,985)–

Total

529,162

275,713145,969

38,829989,674(1,985)

987,689

Segment income

10,632

8,867

27,411784

47,695(15,736)

31,959Beverages

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, 2021 – December 31, 2021)
1.

Information on sales and income/loss by reporting segment and breakdown of revenue
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Net sales Note 3516,979

290,238

156,991

37,4501,001,660–

1,001,660

Inter-segment

1,629

354

–

5

1,989

(1,989)–

Total

518,609290,593

156,991

37,455

1,003,650(1,989)1,001,660

Segment income

17,828

11,63935,446833

65,748(16,489)

49,258Outside customers

Notes:

1.
2.
3.

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.
Net sales include both revenue from contracts with customers and other revenue; these are notdisplayed as separate categories because the former accounts for almost the entirety of sales andthe latter is not significant.

2. Notes concerning changes in reporting segments, etc.
As noted under “Changes in accounting policies,” the DNP Group began applying the revenue
recognition accounting standard as of the beginning of the first quarter of the fiscal year ending
March 2022 and changed its accounting methodology for recognizing revenue. This resulted insimilar changes to its approach to measuring business segment profits and losses.
Compared with the previous standard, this change reduced Information Communication
segment sales for the first nine months of the fiscal year ending March 2022 by ¥10,431 million
and income by ¥292 million, Lifestyle and Industrial Supplies segment sales by ¥3,945 million
and segment income by ¥72 million, Electronics segment sales by ¥5,621 million and income by¥15 million, and Beverages segment sales by ¥1,768 million.

- 11 -