Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2022 [J-GAAP]
August 5, 2021

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

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: https://www.dnp.co.jp/eng/
Yoshinari Kitajima, President
Naoki Wakabayashi,
General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:August 5, 2021
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly results briefing:No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first three months ended June 30, 2021
(April 1, 2021 – June 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

Three months ended
June 30, 2021
Three months ended
June 30, 2020

Million yen%

Million yen%

Million yen%

Million yen%

331,919

2.6

16,50671.1

19,92946.7

14,878101.0

323,551

(6.1)

9,648

(30.2)

13,585(20.3)

7,401(58.9)

Note: Comprehensive income: For the first three months ended June 30, 2021: ¥20,158 million (-40.9%)
For the first three months ended June 30, 2020: ¥34,089 million (+11.0%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2021
Three months ended
June 30, 2020

Yen

Yen

53.21

53.20

26.35

26.21

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2021

1,814,733

1,100,896

57.6

As of March 31, 2021

1,825,019

1,098,613

57.2

Reference: Stockholders’ equity as of June 30, 2021: ¥1,045,086 million

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

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

Year ended
March 31, 2021
Year ending
March 31, 2022
Year ending March 31, 2022
(Forecasts)–

SecondQuarter-end

Third
Quarter-end

32.00

–

32.00

64.00

32.00

–

32.00

64.00

Year-end

Total–

Note: Revisions to the most recently announced dividend forecasts during the first quarter: No

3. Consolidated earnings forecasts for the year ending March 31, 2022
(April 1, 2021 – March 31, 2022)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income
Ordinary Income
Parent Company
per Share
Shareholders

Net Sales

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,350,000

1.1

57,00015.1

65,0008.5

53,000111.3

190.67

Note: Revisions to the most recently announced earnings forecasts during the first quarter: No

Other information(1) Changes in significant subsidiaries during the first quarter (changes in specified subsidiaries
resulting in change of scope of consolidation): No(2) Application of accounting procedures peculiar to quarterly consolidated financial statement
preparation: No(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
1) Changes in accounting policies with revision of accounting standards: Yes
2) Changes in accounting policies other than the 1) above:No3) Changes in accounting estimates:
No4) Restatement of revisions:No
Note: For more information, see the section titled, “2. Quarterly consolidated financial statements and key notes (3)Notes regarding quarterly consolidated financial statements [Changes in accounting policies],” on page 9.

(4) Number of common shares issued and outstanding
1) Number of common shares
outstanding at end of each period(including treasury shares)
2) Number of treasury shares at
end of each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of June 30, 2021

317,240,346
shares

As of March 31, 2021

324,240,346
shares

As of June 30, 2021

40,004,371
shares

As of March 31, 2021

43,363,670
sharesThree months ended
June 30, 2021

279,608,871
sharesThree months ended
June 30, 2020

280,880,852
shares* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was published. Actual results
may differ significantly due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Qualitative information on the
consolidated results for the first quarter (3) Explanation of the consolidated earnings forecasts and otherprojections,” on page 4.

Contents
1. Qualitative information on the consolidated results for the first quarter ........................2(1) Explanation of the consolidated financial results ........................................................2(2) Explanation of the consolidated financial position......................................................3(3) Explanation of the consolidated earnings forecasts and other projections ..............4
2. Quarterly consolidated financial statements and key notes ............................................5(1) Quarterly consolidated balance sheets ........................................................................5(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income..........................................................................7
Quarterly consolidated statements of income
First 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[Changes in accounting policies] ..................................................................................9[Segment information, etc.] ......................................................................................... 10- 1 -1. Qualitative information on the consolidated results for the first quarter(1) Explanation of the consolidated financial results
Conditions surrounding the DNP Group remained unfavorable during the first quarter of the fiscal
year ending March 2022 due to the impact of the novel coronavirus (hereafter, COVID-19), but
progress with the rollout of vaccines both in and outside Japan and stepped-up measures toprevent the spread of infection resulted in greater adoption of new work styles and lifestyles. In
particular, accelerated digital transformation (DX) by companies and local governments,
network-based remote learning and online medical consultations, and greater uptake of 5G
mobile communications systems resulted in greater demand for higher-performance digital
devices. The heightened focus of citizens worldwide on reducing environmental impact also
resulted in greater demand for environmentally conscious products and services.
Amid these conditions, the DNP Group worked to create new value that meets people’s
expectations as well as resolving social issues in order to realize a better, more sustainable
society and provide more comfortable lifestyles. The DNP Group prioritized and optimized its
capital allocation to target focus business areas with high profitability and prospects for market
growth, such as the Internet of Things (IoT)/next-generation communications, data distribution,
mobility, and environment by combining its unique strengths in printing and information (P&I) andforming deeper alliances with its numerous partners. It also worked to build a strong businessportfolio by restructuring to enhance competitiveness.
As a result of the above, consolidated net sales for the first three months grew 2.6% year on
year to ¥331.9 billion, consolidated operating income grew 71.1% to ¥16.5 billion, consolidated
ordinary income grew 46.7% to ¥19.9 billion, and net income attributable to parent company
shareholders grew 101.0% to ¥14.8 billion.
Business segment results are presented below.

[PRINTING]
Information Communication
In the Information Innovation business, a recovery in areas such as flyers, catalogs, and direct
mail promotions was offset by a decline in large Business Process Outsourcing (BPO) projects
and a pause 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 businessdeclined.
In the Imaging Communication business, sales increased due to a recovery in demand forphoto shooting and printing materials and services in the core US market driven by progress with
the COVID-19 vaccine rollout.
In the Publishing business, e-book sales remained firm despite the negative impact of COVID19, and sales increased in the “honto” hybrid bookstore network, which handles both printed andelectronic books. Sales also benefited from steady growth in the number of institutions
introducing digital library services and outsourcing library operations, and a year-on-yearincrease 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 grew 0.5% year on year to ¥173.0 billion, andoperating income grew 41.4% to ¥5.0 billion due to the increase in sales.

- 2 -Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell its GREEN PACKAGING
series of environmentally conscious packaging, and achieved positive results from reforms to
manufacturing and other business processes. However, demand for commercial packaging
materials for souvenirs at tourist destinations and for restaurant use declined due to ongoinggovernment stay-at-home requests in response to the COVID-19 pandemic. As a result, overallsales in the Packaging business declined.
In the Living Spaces business, there were signs of a recovery in the domestic and overseas
automobile markets and the domestic housing market, and sales of decorative films andresidential interior and exterior decorative materials increased. The DNP Group also worked tocreate new demand by expanding its lineup of products with antibacterial and antiviralfunctionality to combat infectious diseases. As a result, overall sales in the Living Spaces
business increased.
In the High-Performance Industrial Supplies business, sales of battery pouches for lithium-ion
batteries rose considerably due to worldwide growth in demand for electric vehicles, and growthin demand for tablets and smartphones driven mainly by an increase in teleworking. As a result,overall sales in the High-Performance Industrial Supplies business increased.
As a result of the above, overall segment sales grew 5.5% year on year to ¥95.9 billion, andoperating income grew 172.1% to ¥4.6 billion due mainly to growth in the High-Performance
Industrial Supplies business and the market recovery in the Living Spaces business.
Electronics
In the Display Components business, sales of optical films for LCD displays (mainly TVs) grewsteadily, and sales of films for organic light-emitting diode (OLED) displays increased in line withgrowing demand for these displays. Sales of metal masks used in the production of OLED
displays were also strong. As a result, overall sales in the Display Components businessincreased.
In the Electronic Devices business, sales increased due to greater demand mainly fromtelecoms, automotive, and data center applications driven by the upbeat semiconductor market.
As a result of the above, overall segment sales grew 8.6% year on year to ¥52.6 billion, andoperating income grew 30.4% to ¥12.4 billion due to the increase in sales.
[BEVERAGES]
Beverages
The DNP Group worked to respond to changes in lifestyle caused by the COVID-19 pandemic,
including continuing to sell multi-bottle packs via volume retailers to respond to an increase inhousehold demand during the pandemic, and initiatives to increase in-store and online sales oflabel-free PET plastic bottle beverages that omit labels stating the product name and otherdetails, for which demand is increasing. However, overall segment sales fell 13.7% year on yearto ¥10.7 billion as stay-at-home measures sharply depressed sales at locations such as tourist
destinations and restaurants. Operating income also declined to a loss of ¥0.2 billion (from a
profit of ¥31 million in the first quarter of the previous fiscal year) due to factors such as a decline
in sales volume.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥10.2 billion from the end of the previous
fiscal year to ¥1,814.7 billion, due mainly to a decline in notes, trade receivables, and contract
assets (compared with notes and trade receivables as of the end of the previous fiscal year).

- 3 -Total liabilities decreased by ¥12.5 billion from the end of the previous fiscal year to ¥713.8
billion, due mainly to a decline in the reserve for bonuses.
Net assets increased by ¥2.2 billion from the end of the previous fiscal year to ¥1,100.8 billion,
due mainly to an increase in foreign currency translation adjustments.
(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 March 31, 2021

As of June 30, 2021

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Notes, trade receivables, and contract
assetsMarketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 5 -301,162
324,625

291,746––

312,479

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

19,00076,92930,17524,72735,325(596)
789,789

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

163,052
72,696
141,831
16,613
27,102421,296

25,20725,207

26,252
26,252422,799
153,905(2,741)
573,964
1,019,201
1,825,019

425,557
154,575(2,737)577,395
1,024,943
1,814,733

(Million yen)

As of March 31, 2021

As of June 30, 2021

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

226,606
37,321

233,318
30,144

Reserve for bonuses

19,284

7,535

Repair reserve

17,68817,909Other

107,224

110,323

Total current liabilities

408,125399,231

Bonds

103,550

103,525

Long-term debt

11,56911,340

Repair reserve

49,49147,288Net defined benefit liability

35,17435,181

Deferred tax liabilities

95,997

95,491Other

22,496

21,777

Total long-term liabilities

318,279

314,604

726,405

713,836

Common stock

114,464

114,464

Capital surplus

145,024

145,055

Retained earnings

683,784

669,890

Treasury stock(122,920)(111,795)

Total stockholders’ equity

820,352

817,615

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

202,017

202,313118Foreign currency translation adjustments(5,082)(470)

Remeasurements of defined benefit plans

26,67825,618

Total accumulated other comprehensive
income223,624

227,470

Non-controlling interests

54,63655,810TOTAL NET ASSETS

1,098,613

1,100,896

TOTAL LIABILITIES AND NET ASSETS

1,825,019

1,814,733

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 three months of the fiscal years(Million yen)Three months ended
June 30, 2020Three months ended
June 30, 2021

Net sales

323,551

331,919

Cost of sales

257,290259,389

Gross profit

66,26072,530

Selling, general and administrative expenses

56,61256,023Operating income

9,648

16,506

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

2,278
1,728
1,356
5,363

2,037
1,812
909
4,759

369
1,057
1,426

188
1,147
1,336

Ordinary income

13,58519,929

5
15
20

449
–
449

389
688
329
1,407

402
146
102
651

12,19819,728

2,180
2,191
4,371
7,826

3,192
640
3,833
15,894

425

1,015

7,401

14,878Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
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 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 to：Parent company shareholders
Non-controlling shareholders- 8 -Three months ended
June 30, 2020Three months ended
June 30, 2021

7,826

15,89430,765200(1)(3,718)
383

(5)
4,296
(1,397)(1,166)

1,169

26,262
34,0894,263
20,15834,707(617)

18,724
1,433

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥8,684 million during the first 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 decreased by ¥19,809 million during the first quarter of the fiscal year ending March 2022,
due to the cancellation 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 (ASBJ) Statement No. 29, March 31, 2020; hereafter, “revenue
recognition standard”) from the beginning of the first quarter of the fiscal year ending March 2022,
and will recognize revenue to depict the transfer of promised goods or services to customers in
an amount that reflects the consideration to which it expects to be entitled in exchange for those
goods or services. The main changes resulting from the adoption of the revenue recognition
standard are as follows.
(1) Recognition of revenue from transactions involving materials purchased from customers
DNP and several of its consolidated subsidiaries purchase raw materials from customers thatthey process before selling the resulting product back to the customers. DNP previously
recognized revenue from these transactions (with some exceptions) as the total amountincluding the price of these raw materials and other inputs. However, it has now shifted torecognizing revenue on a net basis excluding the price of raw materials and other inputs.
(2) Recognition of revenue from transactions in which DNP acts as agent
DNP previously recognized the entire payment received from customers for books sold byseveral of its consolidated subsidiaries as revenue. However, for transactions where DNP acts
as the agent in providing goods and services to customers, it now recognizes net revenue that
excludes payments to suppliers from the amount received from customers.
In applying the revenue recognition standard, DNP complied with the transitional measures
defined in the notes to Section 84. It added the cumulative impact of retroactively applying the
new standard to the period prior to the first quarter of the fiscal year ending March 2022 to initial
retained earnings for the quarter, and applied the new accounting standard to this initial balance.
However, it used the approach defined in Section 86 of the revenue recognition standard forcontracts where virtually all revenue had been recognized prior to the first quarter, and did not
retroactively apply the new standard to them. In addition, it used the approach laid out in Section
86 (1) of the revenue recognition standard regarding contracts that were changed prior to thestart of the first quarter, accounting for them based on the terms of the contract including all priorchanges, and adjusting retained earnings at the start of the first quarter to reflect the cumulative
impact.
In the first quarter, the application of the above accounting standard reduced the DNP Group’s
consolidated sales by ¥6,876 million, cost of sales by ¥5,774 million, selling, general and- 9 -administrative expenses by ¥929 million, operating income by ¥172 million, and ordinary income
and income before income taxes and non-controlling interests by ¥92 million. The balance ofretained earnings at the beginning of the quarter increased by ¥25 million.
In line with the introduction of the revenue recognition standard, the “notes and tradereceivables” item under current assets on the previous fiscal year’s consolidated balance sheets
is now part of the “notes, trade receivables, and contract assets” item as of the first quarter ofthe current fiscal year. The DNP Group has not recalculated figures for the previous fiscal year
to reflect the change in accounting item, in line with the transitional approach laid out in Section
89-2 of the revenue recognition standard. Also, in accordance with the transitional approach laidout 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 from contracts with customers in the first quarter of the previous fiscal year as a separate
item.
(Adoption of accounting standard for fair value measurement)
The DNP Group applied the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019; hereafter, “fair value measurement standard”) from the beginning of thefirst quarter of the fiscal year ending March 2022, and will in future apply the new accounting
policy defined by the standard in line with the transitional approach laid out in Section 19 of said
standard and Section 44-2 of the Accounting Standard for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019). This factor has a minimal impact on the DNP Group’s quarterly
consolidated financial statements.
[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2020 – June 30, 2020)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

171,734

90,942

48,468Beverages

Total(Million yen)Amounts
reported onquarterly
Adjustment
Note 1
consolidated
statements ofincomeNote 2

Net sales
Outside customers

12,406

323,551–

323,551

Inter-segment

459

51

–

5

516

(516)

–

Total

172,194

90,994

48,46812,411

324,067(516)

323,551

3,561

1,713

9,582

31

14,889(5,240)9,648

Segment income

Notes:

1.
2.

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

- 10 -

II. First three months of current fiscal year (April 1, 2021 – June 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 onquarterly
Adjustment
Note 1
consolidated
statements ofincomeNote 2

Net salesNote3

172,636

95,93852,63810,705331,919–331,919

Inter-segment

431

38

–

3

473

(473)

–

Total

173,068

95,97752,63810,708332,393(473)

331,919

5,035

4,661

12,498(272)

21,923(5,416)

16,506

Outside customers

Segment income (loss)

Notes:

1.
2.
3.

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.
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. Change in reporting segments
As noted under “Changes in accounting policies,” from the beginning of the first quarter of the
fiscal year ending March 2022, the DNP Group adopted the revenue recognition standard andchanged its accounting methodology for recognizing revenue. This resulted in similar changes
to its approach to measuring business segment profits and losses.
Compared with the previous standard, this change reduced first quarter Information
Communication segment sales by ¥3,432 million and income by ¥141 million, Lifestyle andIndustrial Supplies segment sales by ¥1,239 million and income by ¥22 million, Electronics
segment sales by ¥1,713 million and income by ¥9 million, and Beverages segment sales by¥491 million.

- 11 -