Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2018
[J-GAAP]
August 9, 2017

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, Corporate Communication
Telephone:+81-3-6735-0101
Securities report issuing date:August 10, 2017
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, 2017
(April 1, 2017 – June 30, 2017)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Three months ended
June 30, 2017
Three months ended
June 30, 2016

Million yen%

Million yen%

Million yen%

Million yen%

343,721

(1.7)

8,233

38.9

11,800

32.0

7,638

883.8

349,800

(2.6)

5,927

(48.1)

8,937(41.7)

776(90.4)

Note: Comprehensive income: For the first three months ended June 30, 2017: ¥16,981 million (529.8%)
For the first three months ended June 30, 2016: ¥2,696 million (-78.9%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2017
Three months ended
June 30, 2016

Yen

Yen

12.47

12.46

1.24

1.22

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2017

1,714,664

1,077,317

60.0

As of March 31, 2017

1,741,904

1,081,286

59.4

Note: Stockholders’ equity as of June 30, 2017: ¥1,029,008 million

As of March 31, 2017: ¥1,033,864 million

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

Year ended
March 31, 2017
Year ending
March 31, 2018–

SecondQuarter-end

Third
Quarter-end

16.00

–

Year-end

16.00

Total

32.00

–

Year ending March 31, 2018
16.00
–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No–

Note: Dai Nippon Printing Co., Ltd. plans to implement a share consolidation in which two shares of common stock
are consolidated into one share effective October 1, 2017. As a result, year-end dividends per share for the fiscal year
ending March 2018 (forecast) show dividends after the share consolidation, and total annual dividends show “–”.
Without the share consolidation, year-end dividends per share for the fiscal year ending March 2018 would be ¥16.00.
For further details, see the section titled, “Explanation regarding appropriate use of earnings forecasts and otherspecial notes.”

3. Consolidated earnings forecasts for the year ending March 31, 2018
(April 1, 2017 – March 31, 2018)(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%Yen1,420,000
0.7
35,00011.4
40,0008.9
26,0003.1
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

85.81

Full year

Million yen%

Million yen%

Million yen%

Million yen

Note: Net income per share in the consolidated earnings forecasts (full year) for the fiscal year ending March 31, 2018is adjusted for the impact of the share consolidation. Without the share consolidation, net income per share in the
consolidated earnings forecasts (full year) for the fiscal year ending March 2018 would be ¥42.91. For further details,
see the section titled, “Explanation regarding appropriate use of earnings forecasts and other special notes.”

Other information(1) Changes in significant subsidiaries during the current 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: No
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No(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, 2017

648,480,693
shares

As of March 31, 2017

663,480,693
shares

As of June 30, 2017

41,991,843
shares

As of March 31, 2017

48,287,110
sharesThree months ended
June 30, 2017612,341,652
sharesThree months ended
June 30, 2016

625,708,916
shares* These financial results are exempt from auditing.
* Explanation regarding appropriate use of earnings forecasts and other special notes
1. 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 current quarter (3) Explanation of the consolidated earnings forecasts,” on page3.
2. Dai Nippon Printing Co., Ltd. passed a resolution approving a share consolidation at the 123rd Ordinary
General Meeting of Shareholders on June 29, 2017. It plans to implement a share consolidation, from twoshares of common stock into one share, effective on October 1, 2017. Without the share consolidation, thedividend forecast and consolidated earnings forecast for the year ending March 31, 2018 would be as
follows.
(1) Dividend forecast for the year ending March 31, 2018

Year-end dividends per share¥16.00(2) Consolidated earnings forecast for the year ending March 31, 2018
Net income per share
Full year¥42.91

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. Quarterly consolidated financial statements and key notes ........................................... 4(1) Quarterly consolidated balance sheets ........................................................................ 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income ......................................................................... 6
Quarterly consolidated statements of income
First three months of the fiscal years ....................................................................... 6
Quarterly consolidated statements of comprehensive income
First three months of the fiscal years ....................................................................... 7(3) Notes regarding quarterly consolidated financial statements.................................... 8[Notes on premise of a going concern] ........................................................................ 8[Significant changes in shareholders’ equity] ............................................................. 8[Segment information, etc.] ............................................................................................ 8

11. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
Japan’s economy gradually recovered during the first three months of the fiscal year ending
March 2018, with corporate earnings and employment and income conditions improving as aresult of the economic policies of the Japanese government and the monetary easing policies of
the Bank of Japan. However, the economy has still not reached a full-fledged recovery, duepartly to a lack of strength in consumer spending and overseas economic uncertainty, including
slower growth in China and emerging markets.
The printing industry faced a tough business environment, as demand continued to decline
for printed media, including published printed materials, due partly to market growth for e-books
and internet advertising.
Under these circumstances, the DNP Group (DNP), based on the DNP Group Vision 2015
and the four growth areas of “Knowledge and Communication,” “Food and Healthcare,”“Lifestyle and Mobility,” and “Environment and Energy,” focused on creating new value throughP&I innovations as a combination of its strengths in printing and information and worked to
expand its business. It also implemented structural reforms to bolster competitiveness, working
to reorganize and consolidate business divisions and group companies.
As a result of these efforts, consolidated net sales for the first three months fell 1.7% year on
year to ¥343.7 billion, consolidated operating income grew 38.9% to ¥8.2 billion, consolidated
ordinary income grew 32.0% to ¥11.8 billion, and net income attributable to parent company
shareholders grew 883.8% to ¥7.6 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, DNP pursued aggressive sales activities in Publishing & Media
Services, but the publication market continued to slump, and sales of books and magazines
both decreased year on year. In the Education and Publications Distribution business, DNP
focused on expanding business in the “honto” hybrid bookstore network that combines physicalbookstores, online bookstores, and e-book services. Sales were favorable for e-books andonline bookstores, and aided also by an increase in new accounts in library operations
outsourcing services, sales in this business increased from the previous year. However, overallsales in the Publishing business decreased from the previous year, due partly to selling a partial
stake in BUNKYODO GROUP HOLDINGS CO., LTD. in October 2016 and switching thecompany from a consolidated subsidiary to an equity-method affiliate.
In the Information Innovation business, sales decreased for advertising flyers, catalogs, andother printed media, and also fell below year-ago levels for Information Processing Services(IPS; handling data entry, printing, and shipment of personalized mail and other items).
However, sales were firm for smart cards for financial institutions and electronic money, andincreased for point-of-purchase promotional materials (POP) and other sales promotion tools.
As a result, overall sales increased from the previous year.
In the Imaging Communication business, DNP worked to provide high-value-added services
that allow consumers to enjoy photo printing, including “ShaGoo!” automated commemorative
photo booths and Imaging Mall as a cloud-based image sales solution. It also expanded
Southeast Asian sales of dye-sublimation thermal transfer printing media for photo printers(color ink ribbons and receiver paper). However, sales were sluggish in North America andEurope, and overall sales decreased from the previous year.
As a result of the above, overall segment sales fell 4.5% year on year to ¥194.2 billion, but
operating income grew 0.5% to ¥5.0 billion.

2

Lifestyle and Industrial Supplies
In the Packaging business, sales increased year on year for plastic molded products, but
decreased for paper packaging, film packaging, and PET plastic bottle aseptic filling systems.
As a result, overall sales decreased from the previous year.
In the Living Spaces business, DNP focused on sales of environmentally conscious productsthat used its proprietary electronic beam (EB) coating technology. Sales also increased for
Arttec interior and exterior aluminum panels, and decorative films featuring sophisticateddesigns such as wood grains and metals along with realistic texture effects, for non-housing
applications such as commercial facilities, offices, automobiles, and railway cars. As a result,overall sales increased from the previous year.
In the Industrial Supplies business, sales of lithium-ion battery components were favorable
for both mobile and automotive applications, and overseas sales of photovoltaic module
components increased. As a result, overall sales increased from the previous year.
As a result of the above, overall segment sales fell 0.8% year on year to ¥93.7 billion andoperating income fell 16.7% to ¥2.6 billion.
Electronics
In the Display Components business, sales of LCD color filters decreased year on year on
declines for both small- and medium-sized filters for smartphones and tablets and large filters
for TVs. However, sales were favorable for metal masks used in the production of organic
light-emitting diode (OLED) displays. Optical films increased from the previous year on firmsales of mainstay anti-reflection films for LCDs and higher sales of films for OLED displays.
In the Electronic Devices business, semiconductor photomask sales increased from theprevious year on uptake of domestic and overseas demand.
As a result of the above, overall segment sales grew 9.3% year on year to ¥44.8 billion andoperating income grew 144.9% to ¥6.3 billion.
[BEVERAGES]
Beverages
The soft drink industry continued to experience tough competition for market share, due partly toprice competition among manufacturers. However, DNP worked to expand market share in
existing markets and to acquire new customers by releasing new products in core brands andby advancing the vending machine business by leveraging area marketing and operational
expertise.
As a result of these efforts, sales increased for the mainstay Coca-Cola brand and for
unsweetened tea drinks including Ayataka. However, sales decreased to group bottlers outside
the Hokkaido region. Mineral waters also declined. Overall segment sales fell 0.9% year on yearto ¥12.1 billion and operating income fell 44.9% to ¥70 million.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥27.2 billion from the end of theprevious fiscal year to ¥1,714.6 billion, due mainly to decreases in cash and time deposits.
Total liabilities decreased by ¥23.2 billion from the end of the previous fiscal year to ¥637.3
billion, due mainly to decreases in short-term bank loans and reserve for bonuses.
Net assets decreased by ¥3.9 billion from the end of the previous fiscal year to ¥1,077.3
billion, due mainly to a decrease in retained earnings.
As a result of the above, the equity ratio rose from 59.4% at the end of the previous fiscal
year to 60.0%.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2018 are unchanged from the forecasts
announced on May 12, 2017.

3

2. Quarterly consolidated financial statements and key notes(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2017

As of June 30, 2017

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

210,454341,805
84,28629,13023,89649,194(1,627)

190,324
328,60285,936
29,601
23,93747,489(1,623)

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

737,140

704,268

206,196
80,689155,114
18,326
36,839497,166

204,091
78,453
155,513
15,152
36,914490,124

34,43634,43633,47433,474

380,323
96,894(4,057)473,160
1,004,763
1,741,904

393,31397,453(3,969)486,797
1,010,396
1,714,664

4

(Million yen)
As of March 31, 2017

As of June 30, 2017

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

247,562
43,035

251,61232,879Reserve for bonuses

17,056

6,217

Other

107,544102,248

Total current liabilities

415,198

392,958

109,640

108,520

Long-term debt

8,658

8,410

Net defined benefit liability

35,14935,540

Deferred tax liabilities

66,147

66,327

Other

25,82325,591

Total long-term liabilities

245,418

244,389

660,617637,347

Common stock

114,464

114,464

Capital surplus

144,280

144,269

Retained earnings

695,720

671,773

Treasury stock(69,636)(58,688)

Total stockholders’ equity

884,829

871,818

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

149,574

157,563(2)

6Foreign currency translation adjustments(2,219)(2,016)

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

1,683

1,636

149,035

157,189

47,422

48,308TOTAL NET ASSETS

1,081,286

1,077,317

TOTAL LIABILITIES AND NET ASSETS

1,741,904

1,714,664

Long-term liabilities
Bonds

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Non-controlling interests5(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, 2016
349,800

Three months ended
June 30, 2017343,721

Cost of sales

284,930

277,924

Gross profit

64,86965,796

Selling, general and administrative expenses

58,942

57,562

Operating income

5,927

8,233

3,421
1,173
1,820
6,415

3,278
1,567
1,086
5,932

594
1,027
1,783
3,405

564
302
1,499
2,365

8,937

11,800

666
1,076
24
1,767

701
3,229
96
4,027

486
2,962
2,270
5,718

667
109
87
865

4,986

14,962

2,091
650
2,741
2,244

2,045
3,942
5,988
8,973

1,468

1,335

776

7,638

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Foreign exchange transaction loss
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
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

6

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

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 toParent company shareholders
Non-controlling shareholders

7

Three months ended
June 30, 2016

Three months ended
June 30, 2017

2,244

8,973

6,879

8,084

(4)
(4,249)463

17(1,037)(337)(2,637)

1,281

451
2,696

8,007
16,981

1,681
1,014

15,792
1,188

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥10,816 million during the first quarter of the current fiscal year,
due mainly to share repurchases based on a resolution passed by the Board of Directors on
May 12, 2017.
Additionally, retained earnings decreased by ¥21,763 million and treasury stock decreasedby ¥21,763 million during the first quarter of the current fiscal year due to the cancellation oftreasury stock on May 26, 2017 based on a resolution passed by the Board of Directors on May
12, 2017.
[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2016 – June 30, 2016)
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 salesOutside customers

202,207

94,282

41,027

12,282349,800–

349,800

Inter-segment

1,265

195

–

12

1,474

(1,474)–

Total

203,473

94,47841,027

12,295351,275(1,474)

349,800

Segment income

5,002

3,161

2,585

135

10,884(4,957)

5,927

Notes: 1. Segment income 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 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, 2017 – June 30, 2017)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

193,450

93,253

44,832

12,184

343,721–343,721

Inter-segment

815

511

8

2

1,337

(1,337)–

Total

194,266

93,76444,84012,186

345,058(1,337)343,721

Segment income

5,029

2,633

6,331

74

14,069(5,835)8,233

Beverages

Total

Net salesOutside customers

Notes: 1. Segment income 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 is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

8