Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2011
(J-GAAP)
November 11, 2010

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listings:
Tokyo, Osaka
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Yoshio Kanbe, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
Securities report issuing date:November 12, 2010
Dividend payment date:
December 10, 2010
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, 2010
(April 1, 2010 – September 30, 2010)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Six months ended
September 30, 2010
Six months ended
September 30, 2009

Operating Income

Million yen%

Million yen%

Million yen%

796,177

3.2

39,24253.2

39,151

57.0

771,276(4.1)

25,610(35.9)

24,932(40.0)Net Income

Six months ended
September 30, 2010
Six months ended
September 30, 2009

Ordinary Income

Diluted Net Income
per Share

Net Income per Share

Million yen%

Yen

17,233

117.5

26.75

7,924

(52.2)

12.30

Yen

‐
‐

(2) Consolidated financial position
Total Assets

Net Assets

Net Assets
Per Share

Equity Ratio

Million yen

Million yen%

Yen

As of September 30, 2010

1,587,962

953,12557.2

1,410.36

As of March 31, 2010

1,618,853

956,86356.6

1,422.34

Note: Stockholdersʼ equity as of September 30, 2010: ¥908,530 million

As of March 31, 2010: ¥916,324 million

2. Dividends
Annual Dividends (Yen)Year ended
March 31, 2010
Year ending
March 31, 2011

First
Quarter-end

SecondQuarter-end

Third
Quarter-end

‐

16.00

‐

16.00

32.00

‐

16.00
‐

16.00

32.00

Year ending March 31, 2011
(Forecast)
Note: Revisions of projected dividends during the current quarter: None

Year-endTotal

3. Consolidated earnings forecasts for the year ending March 31, 2011 (April 1, 2010 – March 31,
2011)(Percentages show change from corresponding year-ago period.)
Net Sales

Full year

Operating Income

Ordinary Income

Net Income
per Share

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,640,000

3.6

75,00012.8

73,0006.0

32,500

39.6

50.45

Note: Revisions of consolidated earnings forecasts during the current quarter: None

4. Other information (For more detail, refer to the attached “2. Other information.”)(1) Changes in significant subsidiaries during the current quarter: None
Note: This refers to changes in specified subsidiaries resulting in change of scope of consolidation during
the current quarter.
(2) Application of simplified accounting and special accounting procedures: Yes
Note: This refers to simplified accounting and accounting procedures peculiar to quarterly consolidated
financial statement preparation.
(3) Changes in accounting policies, procedures and methods of presentation
1) Changes due to revision of accounting standard, etc.: Yes
2) Changes due to other reasons: None
Note: This refers to changes in accounting policies, procedures and methods of presentation related toquarterly consolidated financial statement preparation (entries of changes in significant matters thatare basic to preparation of quarterly consolidated financial statements)(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,
2010

700,480,693
shares

As of March 31, 2010

700,480,693
shares

As of September 30,
2010

56,294,864
shares

As of March 31, 2010

56,241,763
sharesSix months ended
September 30, 2010

644,214,161
sharesSix months ended
September 30, 2009

644,343,707
sharesPresentation of implementation status for quarterly review procedures
The quarterly review procedure based on the Financial Instruments and Exchange Act does not apply tothese Consolidated Financial Results, and the quarterly review procedure based on the Financial
Instruments and Exchange Act was completed as of the release of these Consolidated Financial Results.
Explanation regarding appropriate use of earnings forecasts and other special notes
The above-noted forecasts were prepared on the basis of information available to the Company and certain
assumptions that the Company deemed to be reasonable as of the date of the announcement of thismaterial. A number of factors, including but not limited to risks and uncertainties related to changes in
economic conditions affecting the Companyʼs operations, market trends, and fluctuations in exchange rates,
could cause actual results to differ from these forecasts.

Contents
1. Qualitative information on the consolidated results for the current quarter.................. 2(1) Qualitative information on consolidated financial results .......................................... 2(2) Qualitative information on the consolidated financial position.................................. 3(3) Qualitative information on the consolidated earnings forecasts ............................... 3
2. Other information.................................................................................................................. 3(1) Changes in significant subsidiaries .............................................................................. 3(2) Application of simplified accounting and special accounting procedures ............... 4(3) Changes in accounting policies, procedures and method of presentation .............. 4
3. Quarterly consolidated financial statements ..................................................................... 5(1) Quarterly consolidated balance sheets ........................................................................ 5(2) Quarterly consolidated statements of income ............................................................. 7(3) Quarterly consolidated statements of cash flows ....................................................... 8(4) Note on assumptions for going concern .................................................................... 10(5) Segment information..................................................................................................... 10(6) Significant changes in shareholdersʼ equity .............................................................. 111

1. Qualitative information on the consolidated results for the current quarter(1) Qualitative information on consolidated financial results
In the first six months of the fiscal year, Japanʼs economy rebounded in some respects, withhelp from government economic stimulus measures, but the business environment became
more challenging because of concerns about a deterioration in employment conditions as wellas the yenʼs appreciation and the global economic slowdown in the latter half of the fiscal
period.
Conditions continued to be challenging in the printing industry. Competition intensified
because consumer spending as well as corporate advertising spending were weak. In addition,
unit prices declined.
Under such conditions, the DNP (Dai Nippon Printing Co., Ltd.) Group has been aggressively
developing its business and providing products, services, and solutions that meet customer
needs, based on a business vision of “P&I Solutions” (P&I stands for “printing technology” and“information technology”). In addition, DNP has made groupwide efforts through its“Production 21” activities to establish a solid production structure in terms of all aspects, such as
quality, cost, and turnaround times, and has worked hard to maintain positive performance.
As a result, consolidated net sales for the first six months increased 3.2% year on year to¥796.1 billion, consolidated operating income rose 53.2% to ¥39.2 billion, consolidated ordinary
income climbed 57.0% to ¥39.1 billion, and net income increased 117.5% to ¥17.2 billion.
The results by segment are as follows.
[PRINTING]
Information Communication
In the Books and Magazines business, printing sales declined year on year because of adecrease in sales of magazines, owing to a prolonged slump in the publications market.
In the Commercial Printing business, sales decreased year on year because of a decline insales of printing of flyers, pamphlets, and point of purchase displays and othermarketing/advertising products, stemming from companiesʼ cutbacks in advertising budget.
In the Business Forms business, overall sales were lower year on year because of declines
in sales from information processing services (ranging from data entry to printing and shipmentof personal mail and other items) and from the printing of smart cards.
In the Educational Publications Distribution business, sales increased substantially year on
year thanks to sales promotions at bookstores and a rise in the number of consolidated
subsidiaries.
As a result of the above, overall segment sales totaled ¥358.4 billion and operating income¥9.8 billion.
Lifestyle and Industrial Supplies
In the Packaging business, sales declined year on year because of a decline in sales of flexible
packaging and paper containers, despite an increase in sales of preformed bottles (primary
products for making PET bottles) and paper cups.
In the Lifestyle Materials business, sales increased year on year. Housing starts remained
weak, but sales of eco-friendly products that use DNP's proprietary electron beam coating
technology increased.
In the Industrial Supplies business, sales rose year on year because of growth in sales ofanti-reflection film used in flat-panel displays, dye-sublimation materials for photo printers (color
ink ribbons and receiver paper), and back sheets for photovoltaic modules.
As a result of the above, overall segment sales totaled ¥269.8 billion and operating income¥25.5 billion.
Electronics
In the LCD color filter business, there were some production cutbacks in the latter half of the
fiscal period, but sales still increased considerably year on year thanks to full-scale operations2

at plants in Sakai, Osaka Prefecture, and Himeji, Hyogo Prefecture.
In the semiconductor-related products business, sales of photomasks decreased year on
year. The semiconductor market has been rebounding, and the DNP Group started to meetoverseas demand for photomasks with a new plant that started up in Taiwan, but domestic
demand remained very weak. On the other hand, sales of etched products for high-density
build-up circuit boards, hard drive suspensions and other applications increased.
As a result of the above, overall segment sales totaled ¥146.4 billion and operating income¥9.1 billion.

[BEVERAGES]
Beverages
Amid tough market conditions, characterized by a slump in consumer spending and intensified
sales competition, the DNP Group worked hard to increase sales of Coca-Cola and Georgia,
both core products, and I LOHAS, a brand of mineral water that uses "ecoru Bottle Shiboru,"
Japanʼs lightest bottle.
Sales of Coca-Cola and mineral water increased, but sales of tea and coffee drinks
decreased. As a result, overall segment sales totaled ¥28.1 billion and operating losses ¥64
million.
(2) Qualitative information on the consolidated financial position
Total assets at the end of the second quarter were down ¥30.8 billion from the end of theprevious fiscal year to ¥1,587.9 billion because of declines in notes and trade receivable andinvestment securities.
Total liabilities decreased ¥27.1 billion from the end of the previous fiscal year to ¥634.8
billion because of a decline in notes and trade payable.
Net assets decreased ¥3.7 billion from the end of the previous fiscal year to ¥953.1 billion
because of a deterioration in net unrealized gains/losses on available-for-sale securities.
As a result of the above, the equity ratio rose 0.6 percentage point from the end of theprevious fiscal year to 57.2%.
Consolidated cash flow provided by operating activities in the first six months totaled ¥79.1
billion primarily because of ¥35.1 billion in income before income taxes and minority interestsand ¥47.0 billion in depreciation.
Cash flow used in investing activities totaled ¥38.2 billion, mainly because of the acquisitionof ¥45.9 billion of property, plant and equipment, and cash flow used in financing activities
totaled ¥23.5 billion, owing mainly to a ¥5.4 billion decrease in short-term bank loans and ¥10.3
billion of dividends paid.
Because of these activities, DNPʼs cash and cash equivalents at the end of the second
quarter increased by ¥15.8 billion from the end of the previous fiscal year to ¥167.5 billion.

(3) Qualitative information on the consolidated earnings forecasts
DNP has not changed its May 14, 2010 forecasts for the full fiscal year ending March 2011.

2. Other information(1) Changes in significant subsidiaries
None3

(2) Application of simplified accounting and special accounting procedures
Simplified accounting
1) Valuation of inventory
Write-downs of the book value of inventory are based on the estimated net sale amount of
inventories whose profitability has clearly worsened.
2) Calculation of depreciation of fixed assets
For assets depreciated using the declining-balance method, depreciation for the fiscal year is
calculated by dividing the amount proportionately over the period.
Accounting procedures peculiar to quarterly consolidated financial statement preparation
None(3) Changes in accounting policies, procedures and method of presentation
Changes in matters related to accounting standards
1) Application of accounting standards for asset retirement obligations
Starting from the first quarter of the current fiscal year, DNP and its domestic consolidated
subsidiaries have applied the “Accounting Standards for Asset Retirement Obligations”(Accounting Standards Board of Japan [ASBJ] Statement No. 18, March 31, 2008) and the“Guidance on Accounting Standards for Asset Retirement Obligations” (ASBJ
Implementation Guidance No. 21, March 31, 2008).
As a result, operating income for the first six months has declined by ¥109 million,
ordinary income by ¥134 million, and income before income taxes and minority interests by¥641 million. The change in asset retirement obligations owing to the application of theaccounting standards is ¥3,093 million.
2) Application of “Accounting Standard for Equity Method of Accounting for Investments” and“Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for
Using the Equity Method”
Starting from the first quarter of the current fiscal year, DNP and its domestic consolidated
subsidiaries have applied the “Accounting Standard for Equity Method of Accounting forInvestments” (ASBJ Statement No. 16, March 10, 2008) and “Practical Solution on
Unification of Accounting Policies Applied to Associates Accounted for Using the Equity
Method” (ASBJ Practical Issue Task Force [PITF] No. 24, March 10, 2008).
There is no impact on profits and losses as a result.
3) Application of “Accounting Standard for Business Combinations” and other accounting
standards
Starting from the first quarter of the current fiscal year, DNP and its domestic consolidated
subsidiaries have applied the “Accounting Standard for Business Combinations” (ASBJ
Statement No. 21, December 26, 2008), “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No. 22, December 26, 2008), “Partial Amendments toʻAccounting Standard for Research and Development Costsʼ” (ASBJ Statement No. 23,
December 26, 2008), “Accounting Standard for Business Divestitures” (ASBJ Statement No.
7, December 26, 2008), “Accounting Standard for Equity Method of Accounting forInvestments” (ASBJ Statement No. 16, December 26, 2008), and “Revised Guidance on
Accounting Standard for Business Combinations and Accounting standard for Business
Divestitures” (ASBJ Guidance No. 10, December 26, 2008).

43. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of September 30, 2010

As of March 31, 2010ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
Merchandise and finished products
Work in progress
Raw materials and supplies
Deferred income taxes
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
Goodwill
Software
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Long-term loans
Deferred income taxes
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Business startup costs
Total deferred assets
TOTAL ASSETS

5

169,535
402,440
81,133
33,777
18,521
9,566
11,756(4,444)722,285

152,416
449,020
71,34029,722
17,756
9,775
14,246(4,327)739,951

220,317
184,011
138,777
37,46042,763623,330

207,256
179,127
135,485
51,43343,544
616,847

12,10520,827
3,843
36,776

10,281
20,4893,945
34,717125,2632,039
40,36149,137(12,652)
204,149864,256

142,381
1,741
40,57454,702(13,668)
225,731
877,296

1,420
1,420
1,587,962

1,605
1,605
1,618,853

(Million yen)
As of September 30, 2010

As of March 31, 2010

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

273,895

308,630

58,43850,547

Current portion of long-term debt

5,568

4,019

Income taxes payable

10,701

15,623

Reserve for bonuses

16,923

16,341

Other

77,40876,783

Total current liabilities

442,935

471,945

Bonds

100,270

101,167

Long-term debt

11,273

11,018Provision for retirement benefits

41,65343,229Other

38,704

34,628

Total long-term liabilities

191,901

190,045634,837

661,990

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholdersʼ equity
Common stock

114,464

114,464

Capital surplus

144,898

144,898

Retained earnings

762,970

756,428

Treasury stock(94,067)(94,016)

Total stockholdersʼ equity

928,265

921,774(2,878)

8,059

2

(10)

Foreign currency translation adjustments(16,858)(13,498)

Total valuation and translation adjustments(19,734)(5,449)16‐

Minority interests

44,57740,538TOTAL NET ASSETS

953,125

956,863

1,587,962

1,618,853

Valuation and translation adjustments
Net unrealized gains (losses) on
available-for-sale securities
Net deferred gains (losses) on hedges

Stock acquisition rights

TOTAL LIABILITIES AND NET ASSETS

6

(2) Quarterly consolidated statements of income(Million yen)Six months ended
September 30, 2009

Six months ended
September 30, 2010

Net sales

771,276

796,177

Cost of sales

629,830

642,220Gross profit

141,446

153,957

Selling, general and administrative expenses

115,836

114,715

Operating income

25,61039,242Non-operating income
Interest income
Dividend income
Other
Total non-operating income

395
1,884
2,906
5,185

238
2,180
4,001
6,420

1,057

1,360

210
‐

437
1,567
‐

Non-operating expense
Interest expense
Equity in losses of associated companies
Foreign exchange transaction losses
Provision of allowance for doubtful accounts
Other
Total non-operating expenses

1,509
3,084
5,863

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 minority interests
Current income taxes
Deferred income taxes
Income and other taxes
Income before minority interests
Minority interests
Net income

7

3,145
6,511

24,93239,151

119
16
211
347

87
26
‐
113

2,782
944
909
4,636
20,644
10,1072,490
12,598
‐

1,892
1,169
1,016
4,079
35,185
10,824
6,527
17,352
17,833599
17,233

121
7,924

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

Cash flows from operating activities
Income before income taxes and minority
interests
Depreciation
Increase (Decrease) of doubtful receivables,net
Increase (Decrease) of provision for retirement
benefits, net
Equity in losses of associated companies
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 losses on sale or disposal of fixed assets(Increase) Decrease in trade receivables(Increase) Decrease in inventories
Decrease in trade payables
Other
Sub-total
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities(Increase) Decrease 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 and redemption of
investment securities
Payments for purchases of subsidiary stocks
Proceeds from purchases of newly
consolidated subsidiary stocks
Payments for business transfer
Interest and dividends received
Other
Net cash used in investing activities

8

Six months ended
September 30, 2009

Six months ended
September 30, 2010

20,64443,42135,18547,005

1,636

(151)

1,019
210
2,612
(2,279)1,057(11)(2,136)437
1,264(2,419)
1,360
(26)

944
2,662
(6,529)2,360(4,547)(1,450)61,752
2,312
64,065

1,174
1,805
49,176(778)(42,689)
1,874
91,083(11,886)
79,196

5,099

(595)

(59,979)(45,988)

1,261

717

(8,613)(1,690)2,625(3,711)

10,167
‐

‐
(49)
2,294
2,402
(58,671)

908
‐
2,603
(4,347)(38,225)

(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 issuance of bonds
Payments for redemption of bonds
Payments for purchases of treasury stocks
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash provided by (used in) financing
activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Increase in cash and cash equivalents from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period

9

Six months ended
September 30, 2009

Six months ended
September 30, 2010

(23,918)800(1,809)50,000‐(34)(917)(9,041)(235)(1,840)(5,497)
1,180(3,683)
‐
(117)
(68)
(1,346)(10,317)(373)(3,337)

13,001(23,561)

1,699
20,095
117,200(1,733)
15,676
151,70997‐‐
137,393

128
167,514(4) Note on assumptions for going concern
None(5) Segment information[Segment information by type of business]
First six months of previous fiscal year (April 1, 2009 – September 30, 2009)(Million yen)
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Elimination
and/orcorporate

Consolidated

371,627

256,613

113,31729,717771,276‐

771,276

3,617
375,244

3,169
259,78310
113,32819
29,737

6,817
778,094(6,817)(6,817)771,276

10,612

18,874

1,159

(839)

29,806(4,196)

25,610Total

Net sales(1) Outside
customers(2) Intersegment
Total
Operatingincome(loss)‐[Segment information](Supplementary information)
Starting from the first quarter of the current fiscal year, DNP and its domestic consolidated
subsidiaries have applied the “Accounting Standard for Disclosures about Segments of anEnterprise and Related Information” (ASBJ Statement No. 17, March 27, 2009) and “Guidanceon Accounting Standard for Disclosures about Segments of an Enterprise and RelatedInformation” (ASBJ Guidance No. 20, March 21, 2008).

1. Overview of reporting segments
DNPʼs reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofbusiness resources and evaluate business results.
The Group bases its business divisions on the products and services provided and develops
its business activities based on a comprehensive domestic and overseas strategy for eachbusiness division. The four reporting segments are Information Communication, Lifestyle andIndustrial Supplies, Electronics, and Beverages.
The main products and services of each reporting segment are as follows:
Information Communication

Lifestyle and Industrial Supplies

Electronics
Beverages

Production and sale of publications, commercial printed
matter, and business forms; educational publications
distribution
Manufacture and sale of packaging materials, interior andexterior construction materials, photographic materials,
and industrial supplies
Manufacture and sale of precision electronic components
Manufacture and sale of carbonated and non-carbonatedbeverages10

2. Information concerning sales and income/loss by reporting segment
First six months of current fiscal year (April 1, 2010 – September 30, 2010)*1(Million yen)Amounts
reported onquarterly
consolidated
statements of*2
income796,177‐

796,177

2

6,672(6,672)‐

146,422

28,125

802,849(6,672)

796,177

9,172

(64)

44,535(5,293)39,242

Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

355,182

266,455

146,417

28,122

3,316

3,347

5

358,498

269,802

9,859

25,568Total

Adjustment

Net sales(1) Outside
customers(2) Intersegment
Total
Segment
income(loss)

Notes:
1. Segment income/losses are adjusted for costs related to basic research not assignable to areporting segment or costs of research shared by different segments.
2. Segment income/losses are adjusted to reflect operating income as reported on the consolidated
statements of income.

(6) Significant changes in shareholders’ equityNone11