Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2019 [J-GAAP]
November 13, 2018

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshinari Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Corporate Communication
Telephone:+81-3-6735-0101
Securities report issuing date:November 14, 2018
Dividend payment date:
December 10, 2018
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 six months ended September 30, 2018
(April 1, 2018 – September 30, 2018)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income (Loss)
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Six months ended
September 30, 2018
Six months ended
September 30, 2017

Million yen%

Million yen%

Million yen%

Million yen%

685,563(0.3)

22,832

34.7

25,84835.3

16,932–

687,498(1.4)

16,94745.2

19,106

32.7(21,428)–

Note: Comprehensive income: For the first six months ended September 30, 2018: ¥71,539 million (392.0%)
For the first six months ended September 30, 2017: ¥14,539 million (–%)
Diluted Net Income
per Share

Net Income (Loss) per ShareSix months ended
September 30, 2018
Six months ended
September 30, 2017

Yen

Yen

56.14

56.12

(70.44)–

Note: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock wereconsolidated into one share effective October 1, 2017. Accordingly, it has estimated net income per share and diluted net
income per share assuming this share consolidation was implemented at the start of the previous consolidated fiscal year.

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2018

1,827,628

1,164,608

61.0

As of March 31, 2018

1,794,764

1,102,550

58.7

Note: Stockholders’ equity: As of September 30, 2018: ¥1,114,483 million

As of March 31, 2018: ¥1,053,600 million

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

Year ended
March 31, 2018Year ending
March 31, 2019

SecondQuarter-end

–

16.00

–

32.00

Third
Quarter-end

Year-end

–

Total

32.00

Year ending March 31, 2019–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

–

64.00

Note: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock wereconsolidated into one share effective October 1, 2017. As a result, year-end dividends per share for the fiscal year
ended March 2018 shows dividends after the share consolidation, and total annual dividends shows “–”. Without theshare consolidation, year-end dividends per share for the fiscal year ended March 2018 would be ¥16.00 and total
annual dividends would be ¥32.00.

3. Consolidated earnings forecasts for the year ending March 31, 2019
(April 1, 2018 – March 31, 2019)(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
0.5
47,0001.4
52,0002.0
28,0001.8
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

92.80

Full year

Million yen%

Million yen%

Million yen%

Million yen

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 September 30,
2018324,240,346
shares

As of March 31, 2018324,240,346
shares

As of September 30,
201822,418,234
shares

As of March 31, 2018

22,676,600
sharesSix months ended
September 30, 2018

301,625,513
sharesSix months ended
September 30, 2017

304,198,786
sharesNote: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common stock were consolidated
into one share effective October 1, 2017. Accordingly, it has estimated average number of shares outstanding during the period
assuming this share consolidation was implemented at the start of the previous consolidated fiscal year.

* 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 current quarter (3) Explanation of the consolidated earnings forecasts,” on page
4.

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 ...................................................... 4(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 six months of the fiscal years ........................................................................... 7
Quarterly consolidated statements of comprehensive income
First six months of the fiscal years ........................................................................... 8(3) Quarterly consolidated statements of cash flows ....................................................... 9(4) Notes regarding quarterly consolidated financial statements ................................. 11[Notes on premise of a going concern] ...................................................................... 11[Significant changes in shareholders’ equity] ........................................................... 11[Additional information] ............................................................................................... 11[Segment information, etc.].......................................................................................... 111

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 six months of the fiscal year
ending March 2019, with ongoing improvement in employment and income conditions,improvement in corporate earnings, and upturn in corporate capital expenditures, mainly ingrowth areas. However, the economy has still not reached a full-fledged recovery, affected bycontinued lackluster consumer spending while consumers maintain a strong budget mindset,
and by earthquakes and poor weather conditions.
The printing industry continued to face a tough business environment, affected by lower
demand for printed media, including published printed materials and commercial printed
materials, due partly to market growth for digital content and online advertising, by anaccompanying intensification of competition, and by an increase in raw material prices.
In this environment, the DNP Group is pursuing initiatives to achieve a “Third Corporate
Founding.” Dai Nippon Printing Co., Ltd. was originally established in 1876 and achieved a“Second Corporate Founding” by expanding the scope of its business through the applicationand development of printing technologies during the tumultuous period after the Second World
War. However, times have changed significantly and the DNP Group is now working totransform itself. The DNP Group targets “Knowledge and Communication,” “Food and
Healthcare,” “Lifestyle and Mobility,” and “Environment and Energy” as areas for aggressive
business expansion, and based on these four growth areas, it is pursuing P&I innovations thatcombine its strengths in printing and information and is working to create new value that
contributes to solving social issues while undertaking structural reforms to bolster its
competitiveness, including the reorganization of business divisions and group companies.
As a result of these efforts, consolidated net sales for the first six months fell 0.3% year on
year to ¥685.5 billion, consolidated operating income grew 34.7% to ¥22.8 billion, consolidated
ordinary income grew 35.3% to ¥25.8 billion, and net income attributable to parent company
shareholders totaled ¥16.9 billion (versus net loss of ¥21.4 billion in the year-earlier period).
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, amid a continued slump in the publication market, the DNP Group
worked to help solve problems within the industry, including by harnessing artificial intelligenceto analyze book sales and other data to increase the accuracy of forecasting book demand.
However, sales in the Publishing & Media Services business decreased from the previous year
on declines for both books and magazines. In the Education and Publications Distribution
business, sales of e-books were favorable in the “honto” hybrid bookstore network thatcombines physical bookstores, online bookstores, and e-book services, aided by the Book Tree
service in which authors and bookstore employees introduce books chosen based on uniquethemes. Sales in library operations outsourcing services also rose from the previous year on an
increase in the number of contracting libraries. However, overall sales in the Education andPublications Distribution business decreased from the previous year, affected by the transfer ofall stock in subsidiary SHUFUNOTOMO Co., Ltd. in December 2017. Overall sales in the
Publishing business also decreased year on year.
In the Information Innovation business, sales were firm for sales promotion tools, including
point-of-purchase (POP) promotional materials and gift prizes. However, sales decreased foradvertising flyers, catalogs, and other printed media, for smart cards for financial institutions andelectronic money, and for Information Processing Services (IPS; handling data entry, printing,and shipment of personalized mail and other items). As a result, overall sales in the Information
Innovation business decreased from the previous year.
In the Imaging Communication business, as part of expanding versatility of Ki-Re-i ID photo2booths, the DNP Group provided ID card issuing services for employee ID cards and other typesof ID cards and worked to expand a new service to allow consumers to print photos taken with
their smartphones at ID photo booths installed outside train stations and in other locations. The
DNP Group also worked to deliver new high-value-added services such as a marketing photobooth service that allows people at tourist sites and event venues to enjoy taking and printing
photos while acquiring user data to enable the measurement of the effectiveness of marketingand sales promotion activities. The DNP Group also expanded Southeast Asian sales ofdye-sublimation thermal transfer printing media for photo printers (color ink ribbons and receiverpaper), but sales were sluggish in North America and Europe, and overall sales in the Imaging
Communication business decreased from the previous year.
As a result of the above, overall segment sales fell 2.2% year on year to ¥371.1 billion, but
operating income grew 18.9% to ¥10.7 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group developed mono-material packaging (made from asingle material) that is easier to recycle with the aim of reducing environmental loads further. It
also worked to develop and sell products and materials that help solve social issues, including
simple food preparation packaging that reduces the time and effort of food preparation andclean-up by using the packaging as a preparation tool, and liquid paper containers that arefriendly for both people and the environment on account of being easy to open and separately
discard while also preserving the aroma of the container contents, such as alcoholic beverages.
As a result, sales increased for plastic molded products and film packaging. However, sales
decreased for paper packaging and PET plastic bottle aseptic filling systems, and overall sales
in the Packaging business decreased from the previous year.
In the Living Space business, the DNP Group conducted domestic and overseas sales
mainly of environmentally conscious products that combine its proprietary electronic beam (EB)coating technology with a strong sense of design and functionality. It also actively pursued salesof Arttec printed interior and exterior aluminum panels, which can be made to order to express avariety of designs, tones, and textures, including natural materials and abstract designs, andcan be used in non-housing applications such as commercial facilities, offices, and railway cars.
However, demand for residential interior materials was sluggish due to a downward trend in new
housing starts in Japan, and overall sales in the Living Space business decreased from theprevious year.
In the Industrial Supplies business, sales of photovoltaic module components decreased
both in Japan and overseas, but lithium-ion battery components were favorable for both mobile
and automotive applications, and overall sales in this business increased from the previous
year.
As a result of the above, overall segment sales fell 0.0% year on year to ¥193.1 billion andoperating income fell 35.5% to ¥3.3 billion.
Electronics
In the Display Components business, optical film sales increased for use in organic
light-emitting diode (OLED) displays with the spread of these displays, and were firm for use in
LCDs due to larger screen sizes. Sales decreased for LCD color filters, but increased for metalmasks used in the production of OLED displays for smartphones. Overall sales in the Display
Components business increased from the previous year.
In the Electronic Devices business, semiconductor photomask sales increased as thesemiconductor market continued to grow, supported by an increase in installed memory
capacity in smartphones and other devices and by the spread of IoT equipment.
As a result of the above, overall segment sales grew 8.1% year on year to ¥98.2 billion andoperating income grew 37.9% to ¥19.0 billion.
[BEVERAGES]
Beverages

3

The soft drink industry faced ongoing tough competition for market share, with manufacturers
aggressively releasing new products. In this environment, the DNP Group released new
products in core brands and worked to expand share in existing markets and acquire newcustomers, including by expanding the vending machine business by leveraging its strengths inarea marketing and operational expertise.
As a result of these efforts, sales increased for the mainstay Coca-Cola brand, the Fanta
brand, and unsweetened tea drinks including Ayataka. However, sales decreased for coffee
drinks and mineral waters and to group bottlers outside the Hokkaido region. Overall segment
sales fell 1.4% year on year to ¥26.1 billion while operating income rose 33.1% to ¥0.9 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter increased by ¥32.8 billion from the end of theprevious fiscal year to ¥1,827.6 billion, due mainly to an increase in investment securities.
Total liabilities decreased by ¥29.1 billion from the end of the previous fiscal year to ¥663.0
billion, due mainly to a decrease in notes and trade payables.
Net assets increased by ¥62.0 billion from the end of the previous fiscal year to ¥1,164.6
billion, due mainly to an increase in valuation difference on available-for-sale securities.
As a result of the above, the equity ratio changed from 58.7% at the end of the previous fiscal
year to 61.0%.
Consolidated cash flow provided by operating activities during the first six months totaled ¥40.6
billion, due mainly to ¥26.4 billion in income before income taxes and non-controlling interestsand ¥29.0 billion in depreciation.
Cash flow used in investing activities totaled ¥142.7 billion, due mainly to a ¥126.0 billion net
increase in time deposits and ¥20.4 billion in payments for purchases of property, plant andequipment, and cash flow used in financing activities totaled ¥26.4 billion, due mainly to a ¥12.0
billion net decrease in debt and ¥10.0 billion in dividends paid.
As a result, cash and cash equivalents at the end of the second quarter totaled ¥115.7 billion,a decrease of ¥129.2 billion from the end of the previous fiscal year.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2019 are unchanged from the forecasts
announced on May 11, 2018.

4

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

As of March 31, 2018

As of September 30,
2018

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

242,781354,241
82,697
31,672
23,17847,159(1,690)780,039

239,416
330,748
81,462
34,04023,101
34,901(1,412)742,257

199,31080,702
151,521
7,160
35,703474,397

195,031
76,449151,007
7,531
33,279463,299

32,85332,85332,10932,109401,414
109,691(3,632)507,472
1,014,724
1,794,764

482,097
110,372(2,508)589,961
1,085,370
1,827,628

(Million yen)

As of March 31, 2018

As of September 30,
2018

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

248,993
44,794232,298
32,938

Bonds redeemable within 1 year

2,290

50,290Reserve for bonuses

17,128

17,102

Repair reserve

29,58024,092

Other

95,761

86,278

Total current liabilities

438,548

443,000

Bonds

108,600

60,455Long-term debt

10,127

10,606

Repair reserve

7,543

–

Net defined benefit liability

35,21634,339Deferred tax liabilities

64,98390,369Other

27,19324,248

Total long-term liabilities

253,664

220,019692,213663,019

Common stock

114,464

114,464

Capital surplus

144,264

144,765

Retained earnings

681,976

689,209

Treasury stock(62,908)(62,892)

Total stockholders’ equity

877,797

885,547

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

168,155

224,232(3)7Foreign currency translation adjustments

1,410(1,490)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

6,241

6,186

175,803

228,936

48,95050,125TOTAL NET ASSETS

1,102,550

1,164,608

TOTAL LIABILITIES AND NET ASSETS

1,794,764

1,827,628

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Non-controlling interests6(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First six months of the fiscal years(Million yen)Six months ended
September 30, 2017

Six months ended
September 30, 2018

Net sales

687,498

685,563

Cost of sales

554,354

547,973

Gross profit

133,143

137,590

Selling, general and administrative expenses

116,195

114,758

Operating income

16,947

22,832

3,551
1,388
2,597
7,537

2,811
1,375
2,834
7,021

1,117
703
3,557
5,378

1,058
902
2,044
4,005

19,10625,848

2,035
6,238
–
132
8,407

441
79
2,023
7
2,552

1,981
109
53,500101
55,691

1,383
431
–
136
1,952

(28,178)

26,4497,130(15,270)(8,139)(20,038)

6,662
1,106
7,768
18,680

1,390

1,747

(21,428)

16,932Non-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
Loss on devaluation of investment securities
Repair reserve provisions
Other
Total extraordinary losses
Income (Loss) before income taxes andnon-controlling interests
Current income taxes
Deferred income taxes
Total income taxes
Net income (loss)
Net income attributable to non-controllingshareholders
Net income (loss) attributable to parent company
shareholders

7

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

Net income (loss)
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

Six months ended
September 30, 2017

Six months ended
September 30, 2018

(20,038)

18,68033,15356,010

17
236
(641)

15
(3,070)
(23)

1,812

(73)

34,578
14,53952,85871,53913,311
1,228

70,065
1,473

(3) Quarterly consolidated statements of cash flows(Million yen)

Cash flows from operating activities
Income (Loss) before income taxes andnon-controlling interests
Depreciation
Decrease of doubtful receivables, net
Increase of net defined benefit asset
Increase of net defined benefit liability
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gains on sales of investment securities
Net losses on devaluation of investment securities
Net (gains) losses on sales or disposal of fixed
assetsRepair reserve provisions
Decrease in trade receivables
Increase in inventories
Decrease in trade payables
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net increase in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant andequipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash used in investing activities

9

Six months ended
September 30, 2017

Six months ended
September 30, 2018(28,178)

26,44929,145(622)(2,524)554(1,388)1,153(3,551)
1,117(6,179)109

29,084(308)(3,418)347(1,375)881(2,811)
1,058(2,103)
449

(27)

952

53,5003,776(4,143)(7,282)
9,572
45,030–22,550(1,831)(14,848)
6,408
61,485(18,583)(26)(4,328)22,092(13,030)(149)(7,668)40,637(24)(126,035)(18,410)(20,494)

8,398

1,475

(808)
8,023
(4,931)
5,247
1,237(1,266)

(732)
2,819
(4,703)
4,411
548(142,710)

(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issue of bonds
Payments for redemption of bonds
Proceeds from payments from non-controllinginterests
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Payments for purchase of stock in subsidiaries not
resulting in change in scope of consolidation
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting fromthe merger of non-consolidated subsidiaries
Cash and cash equivalents at end of period10

Six months ended
September 30, 2017

Six months ended
September 30, 2018

(9,467)2,650(2,103)–(120)(11,821)
2,000(2,231)
1,953(2,145)–75(15,025)

(8)

(0)

(1)

(1,124)(9,853)(302)(1,062)(9,663)
(372)

(220)

(89)

(3,361)(38,929)(3,062)(26,430)

838

(706)

(17,264)(129,210)

214,564

244,936

184–

197,483

115,726

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Additional information]
DNP is applying the “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28, February 16, 2018) starting in the first quarter of the current fiscal year,
and is listing deferred tax assets under investments and other assets and deferred tax liabilities
under long-term liabilities.

[Segment information, etc.]
I. First six months of previous fiscal year (April 1, 2017 – September 30, 2017)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

377,646

192,395

90,892

Beverages

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

26,563

687,498–

687,498

Inter-segment

1,734

856

9

5

2,605

(2,605)–

Total

379,381

193,252

90,901

26,568690,104(2,605)

687,498

Segment income

9,063

5,256

13,821721

28,863(11,915)

16,947

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 six months of current fiscal year (April 1, 2018 – September 30, 2018)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

368,823

192,267

98,285Beverages

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

26,186

685,563–685,563Inter-segment

2,287

913

–

6

3,207

(3,207)–

Total

371,111

193,181

98,28526,193688,771(3,207)685,563

Segment income

10,7803,391

19,064960

34,197(11,364)

22,832

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.

11