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

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:February 13, 2019
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly earnings announcement:
No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2018
(April 1, 2018 – December 31, 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

Nine months ended
December 31, 2018
Nine months ended
December 31, 2017

Million yen%

Million yen%

Million yen%

Million yen%

1,046,366(0.4)

36,14910.941,49014.4

25,427–1,050,959

0.1

32,60345.6

36,281

34.0(3,208)–

Note: Comprehensive income: For the first nine months ended December 31, 2018: ¥14,141 million (-75.9%)
For the first nine months ended December 31, 2017: ¥58,769 million (138.6%)
Diluted Net Income
per Share

Net Income (Loss) per Share

Nine months ended
December 31, 2018
Nine months ended
December 31, 2017

Yen

Yen

84.29

84.26

(10.57)–

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 (loss) per share anddiluted 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 December 31, 2018

1,729,617

1,097,549

60.5

As of March 31, 2018

1,794,764

1,102,550

58.7

Note: Stockholders’ equity as of December 31, 2018: ¥1,047,245 million

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

2. Dividends
Annual Dividends (Yen)First Quarterend

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

Second Quarter- Third Quarterend
end

–

16.00

–

–

32.00

–

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 show dividends after the share consolidation, and total annual dividends show “–”. 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
end of each period

As of December 31,
2018324,240,346
shares

As of March 31, 2018324,240,346
shares

As of December 31,
201822,419,457
shares

As of March 31, 2018

22,676,600
shares3) Average number of shares
outstanding during the period
Nine months ended
301,684,323 Nine months ended
303,408,697
December 31, 2018
shares December 31, 2017
shares(cumulative from the start of the
fiscal year)
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 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 page3.

Contents
1. Qualitative information on the consolidated results for the current quarter .................. 2(1) Explanation of the consolidated financial results ....................................................... 2(2) Explanation of the consolidated financial position ..................................................... 3(3) Explanation of the consolidated earnings forecasts ................................................... 3
2. Quarterly consolidated financial statements and key notes............................................ 4(1) Quarterly consolidated balance sheets ........................................................................ 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income ......................................................................... 6
Quarterly consolidated statements of income
First nine months of the fiscal years......................................................................... 6
Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years......................................................................... 7(3) Notes regarding quarterly consolidated financial statements .................................... 8[Notes on premise of a going concern] ........................................................................ 8[Significant changes in shareholders’ equity] ............................................................. 8[Additional information]................................................................................................. 8[Segment information, etc.]........................................................................................... 81

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 nine months of the fiscal year
ending March 2019, supported by improvement in corporate earnings and the employment andincome environment. However, the economy has still not reached a full-fledged recovery,
affected by continued lackluster consumer spending and by poor weather, earthquakes, andother factors.
The printing industry continued to face a tough business environment, affected by lower
demand for printed media and stiffer competition, due partly to market growth for digital content
and online advertising, and by higher raw material prices.
Under these circumstances, the DNP Group is working to create new value by combining its
strengths in printing and information (P&I), targeting the four growth areas of “Knowledge andCommunication,” “Food and Healthcare,” “Lifestyle and Mobility,” and “Environment and Energy.”
It also continues structural reform efforts to bolster competitiveness, including the reorganizationof business divisions and group companies.
As a result, consolidated net sales for the first nine months fell 0.4% year on year to ¥1,046.3
billion, consolidated operating income grew 10.9% to ¥36.1 billion, consolidated ordinary income
grew 14.4% to ¥41.4 billion, and net income attributable to parent company shareholders
recovered to ¥25.4 billion (versus net loss of ¥3.2 billion in the year-earlier period).
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, the DNP Group worked to help solve problems within the publishingindustry, including by harnessing artificial intelligence in analyzing book sales data to forecast
book demand. However, sales in the Publishing & Media Services decreased for both books andmagazines. In the Education and Publications Distribution, sales of e-books were favorable inthe “honto” hybrid bookstore network that combines physical bookstores, online bookstores, ande-book services. 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
Publishing business decreased from the previous year, affected by the transfer of all stock in
subsidiary SHUFUNOTOMO Co., Ltd. in December 2017.
In the Information Innovation business, sales increased for Business Process Outsourcing(BPO) services for companies and other entities. Sales were also firm for sales promotion tools,
including point-of-purchase (POP) promotional materials and gift prizes. However, overall sales
in the Information Innovation business decreased from the previous year on declines foradvertising flyers, catalogs, and smart cards.
In the Imaging Communication business, the DNP Group promoted “value creation” businessto enhance people’s experiential value through photographs, and launched the sharingbox
PRIME service as a marketing photo booth that takes and prints photographs at sporting events,
event venues, tourist sites, and other locations. Sales of dye-sublimation thermal transfer printing
media for photo printers were firm in North America and Southeast Asia, but decreased in Japanand Europe. Overall sales in the Imaging Communication business decreased from the previous
year.
As a result of the above, overall segment sales fell 2.0% year on year to ¥564.4 billion but
operating income grew 10.4% to ¥16.8 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell products that contributeto environmental preservation, including mono-material packaging (made from a single material)that is easier to recycle and liquid paper cartons that are easy to separately discard. Sales2

increased for film packaging and plastic molded products, but decreased for paper packaging
and PET plastic bottle aseptic filling systems. Overall sales in the Packaging business decreased
from the previous year.
In the Living Space business, the DNP Group focused on sales of environmentally conscious
products that use its propriety electronic beam (EB) coating technology as well as Arttec interior
and exterior aluminum panels, which can be made to order. However, demand for residential
interior materials was sluggish in response to a decline in new housing starts in Japan, andoverall sales in the Living Space business decreased from the previous year.
In the Industrial Supplies business, sales decreased for photovoltaic module components, butwere favorable for lithium-ion battery components. Overall sales in this business increased fromthe previous year.
As a result of the above, overall segment sales grew 0.7% year on year to ¥298.3 billion but
operating income fell 36.0% to ¥6.1 billion.
Electronics
In the Display Components business, sales increased for optical films and metal masks used in
the production of organic light-emitting diode (OLED) displays. Sales decreased for LCD color
filters, but increased for optical films as a result of larger LCD TV sizes. Overall sales in the
Display Components business increased from the previous year.
In the Electronic Devices business, semiconductor photomask sales increased, supported byan increase in installed memory capacity and the spread of IoT equipment.
As a result of the above, overall segment sales grew 4.8% year on year to ¥146.3 billion andoperating income grew 18.9% to ¥27.9 billion.
[BEVERAGES]
Beverages
The DNP Group worked to increase market share and acquire customers by releasing new
products in core brands, expanding the vending machine business, and stepping up sales
promotion to mass merchandisers.
However, sales decreased as a result of poor summer weather and impact of the Hokkaido
Eastern Iburi Earthquake. Competition also intensified. Overall segment sales fell 1.9% year on
year to ¥42.2 billion while operating income rose 0.8% to ¥2.1 billion.
(2)   Explanation of  the  consolidated  financial  position     Total assets at the end of the third quarter decreased by ¥65.1 billion from the end of the previous
fiscal year to ¥1,729.6 billion, due mainly to a decline in investment securities.
Total liabilities decreased by ¥60.1 billion from the end of the previous fiscal year to ¥632.0
billion, due mainly to a decline in short-term bank loans.
Net assets decreased by ¥5.0 billion from the end of the previous fiscal year to ¥1,097.5 billion,
due mainly to a decline 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 60.5%.
(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.

3

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

As of March 31, 2018

As of December 31,
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

4

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

228,406
347,060
80,45733,657
24,65537,989(1,354)
750,872

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

192,471
71,588
151,707
10,75731,604458,130

32,85332,85331,881
31,881

401,414
109,691(3,632)507,472
1,014,724
1,794,764

382,351
108,892(2,511)
488,732
978,744
1,729,617

(Million yen)

As of March 31, 2018

As of December 31,
2018

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

248,993
44,794249,948
31,847

Bonds redeemable within 1 year

2,290

51,490Reserve for bonuses

17,128

6,954

Repair reserve

29,58018,239Other

95,761

84,498

Total current liabilities

438,548442,978

Bonds

108,600

59,610Long-term debt

10,127

10,496

Repair reserve

7,543

–

Net defined benefit liability

35,21634,396

Deferred tax liabilities

64,98361,648Other

27,19322,937

Total long-term liabilities

253,664

189,089692,213632,067

Common stock

114,464

114,464

Capital surplus

144,264

144,765

Retained earnings

681,976

688,045

Treasury stock(62,908)(62,895)

Total stockholders’ equity

877,797884,381

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

168,155

157,469(3)0Foreign currency translation adjustments

1,410

(482)

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

6,241

5,876

175,803

162,864

Non-controlling interests

48,95050,304TOTAL NET ASSETS

1,102,550

1,097,549

TOTAL LIABILITIES AND NET ASSETS

1,794,764

1,729,617

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

  

  

5

(2)  Quarterly  consolidated  statements  of  income  and  quarterly  consolidated  statements  of  comprehensive  income  Quarterly  consolidated  statements  of  income        First  nine  months  of  the  fiscal  years     (Million yen)

Nine months ended
December 31, 2017
1,050,959

Nine months ended
December 31, 2018
1,046,366

Cost of sales

842,797

836,696

Gross profit

208,161

209,670

Selling, general and administrative expenses

175,558

173,520

Operating income

32,60336,149

5,504
2,140
3,588
11,234

4,823
2,986
3,420
11,230

1,664
5,891
7,556
36,281

1,570
4,319
5,889
41,49015,754495
2,262
18,512

1,104
2,023
646
3,774

2,863
22
109
53,500428
56,922

2,009
1,764
1,458
–
215
5,448

(2,128)39,816

9,740(10,811)(1,070)(1,057)

9,166
3,171
12,33827,478

2,151

2,050

(3,208)25,427

Net sales

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
Ordinary income
Extraordinary gains
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
Impairment loss
Loss on devaluation of investment securities
Repair reserve provisions
Other
Total extraordinary losses
Income (Loss) before income taxes and noncontrolling 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

6

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

Nine months ended
December 31, 2017
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

7

Nine months ended
December 31, 2018

(1,057)27,47857,242(10,767)

28
1,358
(737)

12
(1,994)
(346)

1,934

(239)

59,82658,769(13,336)
14,141

56,831
1,937

12,4891,652

(3)  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 nine months of previous fiscal year (April 1, 2017 – December 31, 2017)
Information on sales and income/loss by reporting segment(Million yen)
Reporting segment

Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

573,415

294,927

139,599

43,0171,050,959–

1,050,959

Inter-segment

2,626

1,307

9

8

3,951

(3,951)–

Total

576,041

296,234

139,608

43,025

1,054,910(3,951)

1,050,959

Segment income

15,293

9,617

23,5142,120

50,545(17,941)

32,603

Beverages

Total

Net sales
Outside customers

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.

II. First nine months of current fiscal year (April 1, 2018 – December 31, 2018)
Information on sales and income/loss by reporting segment(Million yen)
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total

Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Net sales
Outside customers

560,963

296,856

146,352

42,194

1,046,366–

1,046,366

Inter-segment

3,457

1,541

–

10

5,008

(5,008)–

Total

564,420

298,397

146,352

42,204

1,051,375(5,008)1,046,366

16,881

6,151

27,9592,137

53,130(16,980)

36,149Segment 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.

8