Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2015
[J-GAAP]
August 7, 2014

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
Securities report issuing date:August 7, 2014
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly earnings announcement:
No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first three months ended June 30, 2014
(April 1, 2014 – June 30, 2014)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Three months ended
June 30, 2014
Three months ended
June 30, 2013

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

355,193

1.7

11,7001.9

14,643

2.5

7,534

6.7

349,151(1.1)

11,486349.2

14,279

275.1

7,060

–

Note: Comprehensive income: For the first three months ended June 30, 2014: ¥8,592 million (-60.9%)
For the first three months ended June 30, 2013: ¥21,952 million (–%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2014
Three months ended
June 30, 2013

Yen

Yen

11.70

11.53

10.96

10.96

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2014

1,573,534

978,005

59.3

As of March 31, 2014

1,574,753

976,38659.2

Note: Stockholders’ equity as of June 30, 2014: ¥933,493 million

As of March 31, 2014: ¥932,329 million

2. Dividends
Annual Dividends (Yen)First
Quarter-end

Year ended
March 31, 2014
Year ending
March 31, 2015–

SecondQuarter-end

Third
Quarter-end

16.00

–

Year-end

16.00

Total

32.00

–

Year ending March 31, 2015
16.00
–
16.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

32.00

3. Consolidated earnings forecasts for the year ending March 31, 2015
(April 1, 2014 – March 31, 2015)(Percentages show change from corresponding year-ago period.)
Net Sales
Million yen%

Operating Income

Ordinary Income

Million yen

Million yen%%

Net Income
per Share

Net Income
Million yen%

Yen

Full year
1,500,000
3.6
52,0003.8
54,0001.3
26,0001.4
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

40.38

Other information(1) Changes in significant subsidiaries during the current quarter (changes in specified subsidiaries
resulting in change of scope of consolidation): Yes
Newly included: –Excluded: 1 DNP Photomask Technology Taiwan Co., Ltd.
Note: For further details, see the section titled, “2. Summary information (notes), (1) Changes in status ofmaterial subsidiaries during the current quarter,” on page 4.
(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. Summary information (notes), (2) Changes inaccounting policies, changes in accounting estimates, and restatement of revisions,” on page 4.
(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 endof each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of June 30, 2014

700,480,693
shares

As of March 31, 2014

700,480,693
shares

As of June 30, 2014

56,589,916
shares

As of March 31, 2014

56,586,830
sharesThree months ended
June 30, 2014

643,892,261
sharesThree months ended
June 30, 2013

643,986,211
sharesPresentation of implementation status for quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply tothese Consolidated Financial Results, and the quarterly review procedure based on the Financial
Instruments and Exchange Act was completed as of the release 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 “1. Qualitative information on the consolidated results for the current quarter, (3) Explanation of
the consolidated earnings forecasts” on page 3 for information about earnings forecasts.

Contents
1. Qualitative information on the consolidated results for the current 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 ....................................................3
2. Summary information (notes) ..............................................................................................4(1) Changes in status of material subsidiaries during the current quarter ......................4(2) Changes in accounting policies, changes in accounting estimates, andrestatement of revisions..................................................................................................4
3. Quarterly consolidated financial statements......................................................................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 three months of the fiscal years.........................................................................7
Quarterly consolidated statements of comprehensive income
First three 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[Segment information, etc.].............................................................................................91

1. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
Japan’s economy continued to gradually recover during the first three months of the fiscal year.
Employment conditions and corporate earnings improved, benefiting from the government’s
aggressive economic policies. However, the economy has still not reached a full-fledged
recovery, due partly to a reaction to front-loaded demand prior to the consumption tax hike andeconomic slowdowns overseas, including in emerging countries.
The printing industry continued to face a tough business environment as a result of higher
raw material prices and a decline in order prices from stiffer competition
In this environment, the DNP Group (DNP), based on its P&I Solutions business vision,sought to aggressively develop its business from consumer, social, and global perspectives
under the catchphrase “Today’s Innovation is Tomorrow’s Basic,” and to reorganize its domestic
and overseas business structures from the standpoint of overall optimization and secure
earnings.
As a result of these efforts, consolidated net sales for the first three months grew 1.7% year
on year to ¥355.1 billion, consolidated operating income grew 1.9% to ¥11.7 billion,
consolidated ordinary income grew 2.5% to ¥14.6 billion, and net income grew 6.7% to ¥7.5
billion.
Business segment results are presented below.
DNP changed its reportable business segments effective from the first quarter of the current
fiscal year, and comparison and analysis of first quarter performance are based on the newreportable business segments.
[PRINTING]
Information Communication
In the Books and Magazines business, amid a continued slump in the publications market, salesof both books and magazines decreased year on year, despite aggressive sales promotion
activities, especially for books.
In the Commercial Printing business, sales decreased from the previous year on weakoverall demand for printed materials, including flyers and catalogs.
In the Business Forms business, smart card sales increased for financial institutions andelectronic money, but Information Processing Services (IPS; ranging from data entry to printing
and shipment of personalized mail and other items) fell below year-ago levels.
In the Education and Publications Distribution business, sales increased over last year
thanks to efforts to expand business in the “honto” hybrid bookstore network that combines
physical bookstores, online bookstores, and e-book sales services.
As a result of the above, overall segment sales grew 0.6% year on year to ¥173.6 billion but
operating income fell 26.4% to ¥2.7 billion.
Lifestyle and Industrial Supplies
In the Packaging business, despite a decline for paper packaging, overall sales increased fromthe previous year on growth for PET bottle aseptic filling systems and plastic film packaging.
The Lifestyle Materials business faced a difficult business environment, including a decreasein domestic housing starts in reaction to previous front-loaded demand. However, sales
increased year on year as a result of firm sales of eco-friendly products that use DNP’sproprietary Electron Beam coating technology.
In the Industrial Supplies business, sales increased over last year on growth fordye-sublimation thermal transfer printing media for photo printers (color ink ribbons and receiverpaper) and other products.
As a result of the above, overall segment sales grew 3.6% year on year to ¥113.0 billion andoperating income grew 16.9% to ¥5.4 billion.

2

Electronics
In the LCD Color Filter business, small- and medium-sized filters for smart phones and tablets
were firm, but sales fell below year-ago levels on a decline for large TV and PC filters.
Semiconductor photomasks were sluggish in Japan, but sales increased from last year as aresult of tapping into overseas demand, which continues to expand.
DNP shifted the optical films business from the Lifestyle and Industrial Supplies segment to
the Electronics segment starting in the current fiscal year, and although sales of polarizing platefilms increased, overall sales decreased from the previous year.
As a result of the above, overall segment sales grew 0.5% year on year to ¥57.6 billion andoperating income grew 8.2% to ¥6.1 billion.
[BEVERAGES]
Beverages
Amid continued tough sales competition in the soft drink market, DNP worked to expand market
share in existing markets and acquire new customers.
As a result of the above, sales increased for mainstay Coca-Cola, sports drinks, and I
LOHAS, a brand of mineral water that uses a lightweight PET bottle. Overall segment sales
grew 3.1% year on year to ¥12.0 billion and operating losses totaled ¥0.2 billion, versus a lossof ¥0.4 billion a year earlier.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥1.2 billion from the end of the previous
fiscal year to ¥1,573.5 billion, due mainly to a decrease in notes and trade receivables.
Total liabilities decreased by ¥2.8 billion from the end of the previous fiscal year to ¥595.5
billion, due mainly to decreases in short-term bank loans and reserve for bonuses.
Net assets increased by ¥1.6 billion from the end of the previous fiscal year to ¥978.0 billion,
due mainly to an increase in retained earnings.
As a result of the above, the equity ratio rose from 59.2% at the end of the previous fiscal
year to 59.3%.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2015 are unchanged from the forecasts
announced on May 13, 2014.

3

2. Summary information (notes)(1) Changes in status of material subsidiaries during the current quarter
DNP specified subsidiary DNP Photomask Technology Taiwan Co., Ltd. (DPTT) was absorbed
in a merger by Photronics, Inc. subsidiary Photronics Semiconductor Mask Corp. (namechanged to Photronics DNP Mask Corporation; PDMC) during the first quarter. As a result of
this merger, DNP has removed DPTT from consolidation due to its elimination and has added
PDMC as an equity method affiliate.
(2) Changes in accounting policies, changes in accounting estimates, and restatement ofrevisions(Changes in accounting policies)
DNP adopted the provisions of the main clauses in Paragraph 35 of the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012) and in Paragraph 67 of the
Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No. 25, May 17,2012) starting in the first quarter of the current fiscal year.
Accordingly, DNP has revised the method of calculating retirement benefit obligations andservice costs; changed the method of attributing expected retirement benefits to periods from astraight line-basis to a benefit formula basis; and changed the method of determining a discountrate from a method in which bond duration as the basis for determining the discount rate isdetermined based on a number of years similar to the average remaining service period of
employees to a method that mainly uses multiple discount rates established for each period of
expected retirement benefit payments.
With the adoption of the Accounting Standard for Retirement Benefits, in accordance with thetransitional treatment stipulated in Paragraph 37, DNP reflected in retained earnings the amountof the impact of the change in the method of calculating retirement benefit obligations andservice costs at the start of the first quarter of the current fiscal year.
As a result, net defined benefit liability at the start of the first quarter of the current fiscal year
increased by ¥2,392 million, net defined benefit asset increased by ¥9,190 million, and retained
earnings increased by ¥4,000 million.
Additionally, operating income, ordinary income, and income before income taxes andminority interests all increased by ¥391 million in the first quarter of the current fiscal year.

43. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2014

As of June 30, 2014ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
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

5203,212
326,981
91,681
28,50919,46435,996(2,791)
733,054

206,541
339,683
99,776
29,791
19,84931,412(1,527)
725,528

195,326
118,903
153,159
27,57733,571
528,538

188,525
104,930
153,153
30,64832,599509,857

31,751
31,751

31,201
31,201

217,059
70,198(5,848)281,409841,699
1,574,753

232,007
82,055(7,116)306,947
848,006
1,573,534

(Million yen)
As of March 31, 2014

As of June 30, 2014

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

249,604
48,961

259,773
43,998Reserve for bonuses

17,310

6,387

Other

102,544

104,993

Total current liabilities

418,422415,152

Bonds

101,800

102,555

Long-term debt

17,505

17,206

Net defined benefit liability

29,55032,137

Other

31,08928,478

Total long-term liabilities

179,945

180,377

598,367

595,529

Common stock

114,464

114,464

Capital surplus

144,898

144,898

Retained earnings

727,070

728,242

Treasury stock(94,322)(94,325)

Total stockholders’ equity

892,110893,280

34,59735,312

3

1

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments

144

(726)

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

5,473

5,625

40,21840,21316

16

Minority interests

44,04044,495TOTAL NET ASSETS

976,386

978,005

1,574,753

1,573,534

Stock acquisition rights

TOTAL LIABILITIES AND NET ASSETS

6

(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First three months of the fiscal years(Million yen)Three months ended
June 30, 2013
349,151

Three months ended
June 30, 2014
355,193

Cost of sales

282,515

286,573

Gross profit

66,636

68,620

Selling, general and administrative expenses

55,15056,919Operating income

11,486

11,700

2,135
615
1,929
4,680

2,498
1,114
1,351
4,965

865
1,021
1,886

612
1,410
2,022

14,27914,643

431
15
177
–
624

25
3,665
–
1
3,692

1,169
133
–
175
1,478
13,425
2,042
3,343
5,385
8,040
979
7,060

427
24
4,342
208
5,002
13,332
1,902
3,022
4,925
8,407
873
7,534

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on evaluation of investment securities
Loss on business integration
Other
Total extraordinary losses
Income before income taxes and minority interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income

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

Income before minority interests
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：Shareholders of parent company
Minority interests

8

Three months ended
June 30, 2013

Three months ended
June 30, 2014

8,040

8,407

8,018

786

2
5,697
–

6
(581)
(925)

193

898

13,912
21,952

184
8,592

20,366
1,586

7,528
1,063

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2013 – June 30, 2013)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeNet sales
171,231108,804

57,386

11,729349,151–

349,151

Inter-segment

Outside customers

1,433

251

–

0

1,685

(1,685)–

Total

172,665

109,055

57,386

11,730350,837(1,685)349,151

Segment income (loss)

3,742

4,669

5,727

(424)

13,714(2,228)

11,486

Notes: 1. Segment income (loss) is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
2. Segment income (loss) is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

II. First three months of current fiscal year (April 1, 2014 – June 30, 2014)
1. Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

172,710

112,738

57,648Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeNet sales
Outside customers

12,095355,193–355,193

Inter-segment

926

269

–

2

1,198

(1,198)–

Total

173,637

113,008

57,64812,097356,391(1,198)355,193

Segment income (loss)

2,753

5,458

6,199

(275)

14,136(2,435)

11,700Notes: 1. Segment income (loss) is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
2. Segment income (loss) is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

92. Changes in reportable business segments, etc.
(1) Changes in reportable business segments
DNP changed its reportable business segments effective from the first quarter of the current fiscal
year.
DNP shifted the optical films business from the Lifestyle and Industrial Supplies segment to theElectronics segment as a result of integrating the business unit responsible for display products andsemiconductor photomasks and the business unit responsible for optical films including LCD surface
films in April 2014.
Segment information for the first three months of the previous fiscal year has been preparedbased on the new reportable business segments.
(2) Application of Accounting Standard for Retirement Benefits
As noted in the section on changes in accounting policies, DNP changed the method of calculating
retirement benefit obligations and service costs effective from the first quarter of the current fiscal
year, and has accordingly made a similar change in the method of calculating retirement benefit
obligations and service costs for business segments.
As a result of this change, compared with the previous method, segment profits increased by¥184 million for Information Communication, by ¥94 million for Lifestyle and Industrial Supplies, by¥53 million for Electronics, and by ¥35 million for Beverages.

10