Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2022 [J-GAAP]
November 12, 2021

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

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: http://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:November 12, 2021
Dividend payment date:
December 10, 2021
Preparation of quarterly earnings presentation material: Yes
Holding of quarterly results briefing: Yes (for institutional investors and analysts)(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first six months ended September 30, 2021
(April 1, 2021 – September 30, 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

Six months ended
September 30, 2021
Six months ended
September 30, 2020

Million yen%

Million yen%

Million yen%

Million yen%

657,168

1.9

30,831

75.5

36,42367.1

33,812

195.7

644,638(7.1)

17,563(31.6)

21,793(25.9)

11,434(84.9)

Note: Comprehensive income: For the first six months ended September 30, 2021: ¥80,621 million (40.5%)
For the first six months ended September 30, 2020: ¥57,366 million (70.3%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2021
Six months ended
September 30, 2020

Yen

Yen

122.26122.23

40.71

40.54

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2021

1,857,856

1,139,513

58.3

As of March 31, 2021

1,825,019

1,098,613

57.2

Note: Stockholders’ equity: As of September 30, 2021: ¥1,083,948 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 second 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
Net
Attributable toOperating Income
Ordinary Income
IncomeParent Company
per Share
Shareholders

Net Sales%

Yen

1,350,000
1.1
57,00015.1
65,0008.5
53,000111.3
Note: Revisions to the most recently announced earnings forecasts during the second quarter: No

193.60

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the second 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 (4)Notes regarding quarterly consolidated financial statements [Changes in accounting policies],” on page 11.

(4) Number of common shares issued and outstanding
1) Number of common shares
outstanding at end of each period(including treasury shares)

As of September 30,
2021

317,240,346
shares

As of March 31, 2021

324,240,346
shares2) Number of treasury shares at
end of each period

As of September 30,
2021

46,766,366
shares

As of March 31, 2021

43,363,670
sharesSix months ended
September 30, 2021

276,566,978
sharesSix months ended
September 30, 2020

280,880,250
shares3) Average number of shares
outstanding during the period(cumulative from the start of the
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 second quarter (3) Explanation of the consolidated earnings forecasts and otherprojections,” on page 4.
The DNP Group will hold a results briefing (conference call) for institutional investors and analysts on
November 17, 2021. Materials used at the briefing will be uploaded to the DNP website at around 14:00
JST the same day.

Contents
1. Qualitative information on the consolidated results for the second 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 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 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[Changes in accounting policies] ................................................................................ 11[Segment information, etc.] .........................................................................................12[Important subsequent events] ................................................................................... 13－1－

1. Qualitative information on the consolidated results for the second quarter(1) Explanation of the consolidated financial results
Conditions surrounding the DNP Group during the second quarter of the fiscal year ending March2022 were affected by the novel coronavirus (COVID-19), with individuals’ lives, society and theeconomy remaining subject to various restrictions. For example, the state of emergency declaredin July and the designation of priority measures for preventing the spread of the disease wereextended to the end of September. On the other hand, during the COVID-19 pandemic of thepast year and a half, working styles and lifestyles have changed at an accelerated pace, anddistance learning and online medical consultations have become more common. Due to thesechanges and other factors like the introduction of 5th-generation mobile communications (5G),
demand for higher performance digital devices has also expanded. In addition, as people aroundthe world are becoming more aware of the need to 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. By combining our unique strengths inprinting and information (P&I) and forming deeper alliances with our many partners, we worked
to build a strong business portfolio. In particular, we designated “focus business” areas where
we anticipate strong market growth and high profitability: the Internet of Things (IoT) & next
generation communications, data distribution, mobility, and the environment. In addition toprioritizing and optimizing management resources in these focus areas, the DNP Group hastaken on structural reforms aimed at boosting competitiveness.
As a result of these efforts, consolidated net sales for the first six months grew 1.9% year on
year to ¥657.1 billion, consolidated operating income grew 75.5% to ¥30.8 billion, consolidated
ordinary income grew 67.1% to ¥36.4 billion, and net income attributable to parent company
shareholders grew 195.7% to ¥33.8 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, a recovery in areas such as catalogs and direct mailpromotions was offset by a decline in large Business Process Outsourcing (BPO) projects and apause in growth in demand for smart cards, particularly, Japan’s social security and tax number(“My Number”) cards. As a result, overall sales in the Information Innovation business declined.
In the Imaging Communication business, sales increased due to a recovery in demand forphoto shooting and printing materials and services in US, the core market of this business, driven
by progress with the COVID-19 vaccine rollout.
In the Publishing business, e-book sales remained firm, and sales increased in the “honto”
hybrid bookstore network, which handles both printed and electronic books. Sales also benefited
from steady growth in the number of institutions outsourcing digital library services and library
operations, and a year-on-year increase in book and other printing orders as the market
recovered. As a result, overall sales in the Publishing business increased.
As a result of the above, overall segment sales fell 2.2% year on year to ¥338.8 billion due tosuch factors as a decline in large BPO projects related to government policies compared to theprevious year. Operating income grew 52.8% to ¥9.7 billion, partly helped by effective cost
structure reform.

－2－

Lifestyle and Industrial Supplies
In the Packaging business, although extended government stay-at-home requests and activity
restrictions in response to the COVID-19 pandemic led to a decline in sales of commercial
packaging materials for souvenirs at tourist destinations and for restaurant use, overall
Packaging sales increased as we worked hard at developing and selling DNP’s eco-friendly
packaging products and were also helped by increased sales of aseptic filling systems.
In the Living Spaces business, with the domestic and overseas automobile markets and thedomestic housing market on a recovery trend, sales of decorative films for automobile interiors
and residential interior and exterior decorative materials increased. In addition, as a result of
expanding our lineup of antibacterial and antiviral products as a way of preventing infection,
overall Living Spaces sales increased.
In the High-Performance Industrial Supplies business, demand for battery pouches for lithiumion batteries rose significantly due to worldwide growth in demand for electric vehicles as wellas increased demand for tablets and smartphones 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 7.0% year on year to ¥191.1 billion andoperating income grew 116.4% year on year to ¥8.2 billion. These improvements were due togrowth in the High-Performance Industrial Supplies business and also thanks to cost reductions,some of which resulted from optimization of manufacturing systems undertaken as part ofstructural reforms.
Electronics
In the Display Components business, sales of optical films for LCD displays used in televisions
got a boost from increased “nesting consumption (greater demand for home-use products as
people spent more time at home),” and sales of films for notebook PCs and monitors were alsosolid thanks to factors like the spread of teleworking and online learning. Sales of metal masks
used in the production of organic light-emitting diode (OLED) displays were also strong thanks
to greater demand for OLED displays for smartphones. Overall, Display Components sales
increased.
In the Electronic Devices business, sales increased as the accelerated digital transformationof companies and local governments revved up the semiconductor market, sparking greater
demand for semiconductor photomasks and other products used for communications, vehicularcomponents, and data centers.
As a result of the above, overall segment sales grew 9.2% year on year to ¥105.3 billion but
operating income grew 32.6% year on year to ¥23.7 billion due to the increase in sales.
[BEVERAGES]
Beverages
We focused on in-store and online sales 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 changes in lifestyle caused by the COVID-19 pandemic. In alcoholic beverages -- a
new area for the Company -- we expanded our lineup of “Lemondo” products and launched a
new alcoholic beverage called “Nomel’s Hard Lemonade.” However, the segment was hit hardby the extension of the government’s stay-at-home request and activity restrictions and theresulting big drop in sales at tourist destinations and restaurants. As a result, overall segment
sales fell 5.6% year on year to ¥23.0 billion . Although advertising and sales promotion expenses
increased as we aimed to boost sales, thanks to thorough cost reductions we posted operating
income of ¥64 million, compared to an operating loss of ¥100 million in the same period of theprevious year.

－3－(2) Explanation of the consolidated financial position
Total assets as of the end of the second quarter increased by ¥32.8 billion from the end of theprevious fiscal year to ¥1,857.8 billion, due mainly to an increase in investment securities.
Total liabilities declined by ¥8.0 billion from the end of the previous fiscal year to ¥718.3 billion,
mainly due to a decrease in short-term bank loans.
Net assets increased by ¥40.8 billion from the end of the previous fiscal year to ¥1,139.5
billion due to factors including an increase in the valuation difference on available-for-salesecurities.
Cash and cash equivalents at the end of the second quarter of the fiscal year decreased by¥27.8 billion from the end of the previous fiscal year to ¥276.3 billion.
Cash flows from operating activities resulted in income of ¥49.6 billion (versus ¥12.4 billion in
the same period of the previous year), mostly due to ¥43 billion in income before income taxes
and non-controlling interests and ¥24.8 billion of depreciation.
Cash flows from investing activities resulted in an outlay of ¥30.2 billion (compared to an
outlay of ¥41.1 billion in the same period of the previous year), largely due to the expenditure of¥30.5 billion for the acquisition of property, plant and equipment.
Cash flows from financing activities resulted in an outlay of ¥49.3 billion (compared to an
outlay of ¥19.6 billion in the same period of the previous year) due to such factors as a net
decrease of ¥10.3 billion in short-term bank loans, the expenditure of ¥26.1 billion for theacquisition of treasury shares, and dividend payments of ¥8.9 billion.
(3) Explanation of the consolidated earnings forecasts and other projections
Our earnings forecasts for the fiscal year ending March 2022 are unchanged from the forecasts
announced on May 13, 2021.

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

As of September 30,
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
324,625275,037––

308,082

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

19,00076,85635,78826,83924,580(618)
765,565

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

163,831
74,258141,803
18,956
26,908425,758

25,20725,207

27,107
27,107422,799
153,905(2,741)
573,964
1,019,201
1,825,019

484,012
158,475(3,062)
639,425
1,092,290
1,857,856

(Million yen)

As of March 31, 2021

As of September 30,
2021

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

226,606
37,321

225,766
26,976

Reserve for bonuses

19,284

19,219Repair reserve

17,68818,130

Other

107,224

99,420Total current liabilities

408,125

389,512

Bonds

103,550

103,525

Long-term debt

11,569

11,103

Repair reserve

49,49145,249Net defined benefit liability

35,17435,374

Deferred tax liabilities

95,997

112,840

Other

22,496

20,737

Total long-term liabilities

318,279

328,829

726,405

718,342

Common stock

114,464

114,464

Capital surplus

145,024

145,056

Retained earnings

683,784

685,468

Treasury stock(122,920)(129,267)

Total stockholders’ equity

820,352

815,722

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

202,017

244,447117

Foreign currency translation adjustments(5,082)163

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income26,67823,607

223,624

268,226

Non-controlling interests

54,63655,565TOTAL NET ASSETS

1,098,613

1,139,513

TOTAL LIABILITIES AND NET ASSETS

1,825,019

1,857,856

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 six months of the fiscal years(Million yen)Six months ended
September 30, 2020
644,638Six months ended
September 30, 2021
657,168

Cost of sales

513,552

513,517Gross profit

131,085

143,650

Selling, general and administrative expenses

113,521112,819

Operating income

17,56330,831

2,666
3,195
1,933
7,795

2,379
3,906
1,996
8,283

729
1,161
1,674
3,564

369
591
1,729
2,691

21,79336,423

29
20
–
50

5,711
153
1,876
7,741

804
864
962
2,631

800
149
199
1,149

19,21243,016

6,951
49
7,000
12,212

8,042
(14)
8,028
34,987777

1,175

11,43433,812

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
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 six months of the fiscal years(Million yen)Six months ended
September 30, 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 of affiliates
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, 2021

12,212

34,98747,67342,582(0)(1,820)
532

(7)
4,144
(2,981)(1,231)

1,896

45,15457,36645,63480,621

56,852514

79,176
1,445

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

Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Increase (Decrease) of doubtful accounts
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
assetsDecrease 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
Payments for purchase of stock in subsidiaries
resulting in change in scope of consolidation
Interest and dividends received
Other
Net cash used in investing activities－9－

Six months ended
September 30, 2020

Six months ended
September 30, 2021

19,21243,01624,282(464)(2,013)86(3,195)762(2,666)
729
(18)
864

24,821
173(7,299)439(3,906)269(2,379)
369
(153)
149

820

(4,888)25,016(2,141)(29,612)2,100
33,763(4,217)(6)(17,133)
12,404

16,528(11,962)(1,797)
3,708
57,089(3,800)–(3,594)
49,694(7,809)(1,383)(26,650)(30,587)

467

5,530

(493)
80
(5,396)(1,239)402(5,616)(1,975)

(50)

3,633
(3,011)(41,154)

3,349
(698)
(30,294)(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
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 period－10－

Six months ended
September 30, 2020

Six months ended
September 30, 2021

(5,622)
1,095(2,039)(145)(4)(10,349)
246(1,318)(85)(26,156)

(0)

(61)

(738)
(8,990)(463)(2,742)(19,651)(375)(8,986)(427)(1,795)(49,309)

(948)

2,044

(49,349)
377,367(27,864)
304,22347

15

328,066

276,374

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥26,156 million during the second quarter 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 second quarter 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
DNP 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 the entire
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.

－11－

As a result, net sales in the second quarter declined by ¥14,592 million, cost of sales by¥12,125 million, selling, general and administrative expenses by ¥2,081 million, and operating
income by ¥385 million, while ordinary income and income before income taxes and noncontrolling interests each decreased by ¥279 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 in the second quarter of the previous fiscal year as aseparate 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.
[Segment information, etc.]
I. First six months of previous fiscal year (April 1, 2020 – September 30, 2020)
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 ofincome Note 2

Net sales

345,188

178,537

96,52024,390644,638–

644,638

Inter-segment

1,114

82

–

9

1,206

(1,206)–

Total

346,303178,620

96,52024,400645,844(1,206)644,638

6,410

3,825

17,902(102)

28,036(10,472)

17,563

Outside customers

Segment income (loss)

Notes:

1.
2.

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.
Segment income (loss) is adjusted to reflect operating income as reported on the quarterly
consolidated statements of income.

－12－II. First six months of current fiscal year (April 1, 2021 – September 30, 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 3

337,665

191,096

105,376

23,030657,168–

657,168

Inter-segment

1,162

80

–

4

1,247

(1,247)–

Total

338,827

191,177

105,376

23,034

658,416(1,247)657,168

9,794

8,277

23,74164

41,877(11,045)

30,831

Outside customers

Segment income

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 second-quarter Information
Communication segment sales by ¥6,933 million and income by ¥308 million, Lifestyle andIndustrial Supplies segment sales by ¥2,608 million and segment income by ¥48 million,
Electronics segment sales by ¥3,894 million and income by ¥29 million, and Beverages segment
sales by ¥1,155 million.
[Important subsequent events](Transition of retirement benefit system)
From October 1, 2021, DNP and some of its consolidated subsidiaries have transitioned a portionof their retirement benefit plans to defined contribution pension plans.
Regarding accounting treatment associated with this change, we plan to apply 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).
The impact of this transition is currently under evaluation.

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