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

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Corporate Communication
Telephone:+81-3-6735-0101
Securities report issuing date:February 14, 2018
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, 2017
(April 1, 2017 – December 31, 2017)(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, 2017
Nine months ended
December 31, 2016

Million yen%

Million yen%

Million yen%

Million yen%

1,050,959

0.1

32,60345.6

36,281

34.0(3,208)–1,050,062(3.7)

22,387(30.2)

27,072(31.4)

25,135(7.0)

Note: Comprehensive income: For the first nine months ended December 31, 2017: ¥58,769 million (138.6%)
For the first nine months ended December 31, 2016: ¥24,633 million (60.9%)
Diluted Net Income
per Share

Net Income (Loss) per Share

Nine months ended
December 31, 2017
Nine months ended
December 31, 2016

Yen

Yen

(10.57)

–

81.15

81.14

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, 2017

1,790,570

1,105,017

59.0

As of March 31, 2017

1,741,904

1,081,286

59.4

Note: Stockholders’ equity as of December 31, 2017: ¥1,056,168 million

As of March 31, 2017: ¥1,033,864 million

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

Year ended
March 31, 2017
Year ending
March 31, 2018

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

–

Year-end

Total

16.00

32.00

Year ending March 31, 2018
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No–

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
ending March 2018 (forecasts) show dividends after the share consolidation, and total annual dividends show “–”.
Without the share consolidation, year-end dividends per share for the fiscal year ending March 2018 would be ¥16.00.
For further details, see the section titled, “Explanation regarding appropriate use of earnings forecasts and otherspecial notes.”

3. Consolidated earnings forecasts for the year ending March 31, 2018
(April 1, 2017 – March 31, 2018)(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
0.7
35,00011.4
40,0008.9
26,0003.1
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

85.81

Full year

Million yen%

Million yen%

Million yen%

Million yen

Note: Net income per share in the consolidated earnings forecasts (full year) for the fiscal year ending March 31, 2018is adjusted for the impact of the share consolidation. Without the share consolidation, net income per share in the
consolidated earnings forecasts (full year) for the fiscal year ending March 2018 would be ¥42.91. For further details,
see the section titled, “Explanation regarding appropriate use of earnings forecasts and other special notes.”

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:
Yes
4) Restatement of revisions:No
Note: For further details, see the section titled, “2. Quarterly consolidated financial statements and key notes, (3)Notes regarding quarterly consolidated financial statements [Changes in accounting estimates],” 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 endof each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of December 31,
2017324,240,346
shares

As of March 31, 2017

331,740,346
shares

As of December 31,
2017

22,676,051
shares

As of March 31, 201724,143,555
sharesNine months ended
December 31, 2017

303,408,697
sharesNine months ended
December 31, 2016

309,738,698
sharesNote: Dai Nippon Printing Co., Ltd. implemented a share consolidation in which two shares of common

stock were consolidated into one share effective October 1, 2017. Accordingly, it has estimated thenumber of common shares outstanding at end of each period, the number of treasury shares at end ofeach period, and average number of shares outstanding during the period assuming this shareconsolidation was implemented at the start of the previous consolidated fiscal year.
* These financial results are exempt from auditing.
* Explanation regarding appropriate use of earnings forecasts and other special notes
1. 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 page4.
2. Dai Nippon Printing Co., Ltd. passed a resolution approving a share consolidation at the 123rd Ordinary
General Meeting of Shareholders on June 29, 2017. It implemented a share consolidation, from two sharesof common stock into one share, effective on October 1, 2017. Without the share consolidation, thedividend forecasts and consolidated earnings forecasts for the year ending March 31, 2018 would be as
follows.
(1) Dividend forecasts for the year ending March 31, 2018
Year-end dividends per share¥16.00(2) Consolidated earnings forecasts for the year ending March 31, 2018
Net income per share
Full year¥42.91

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 ................................................... 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 nine months of the fiscal years ......................................................................... 7
Quarterly consolidated statements of comprehensive income
First nine 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 estimates]............................................................................... 9[Segment information, etc.] ......................................................................................... 10

1

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 2018, with capital expenditures picking up, supported by growth in corporate
earnings and initiatives in growth areas, and exports also increasing. However, consumers arestill keen to economize, despite improvement in the employment and income environment, andconsumer spending remains sluggish. Accordingly, the economy has still not reached afull-fledged recovery.
The printing industry continued to face a tough business environment, due partly to lower
demand for printed media amid growth in e-books and online advertising, and an accompanying
increase in competition.
Under these circumstances, the DNP Group (DNP), based on the DNP Group Vision 2015
and the four growth areas of “Knowledge and Communication,” “Food and Healthcare,”“Lifestyle and Mobility,” and “Environment and Energy,” focused on creating new value throughP&I innovations as a combination of its strengths in printing and information and worked to
expand its business. It also implemented structural reforms to bolster competitiveness, including
the reorganization and consolidation of business divisions and group companies.
As a result, consolidated net sales for the first nine months grew 0.1% year on year to¥1,050.9 billion, consolidated operating income grew 45.6% to ¥32.6 billion, consolidated
ordinary income grew 34.0% to ¥36.2 billion, and net income attributable to parent company
shareholders swung to a loss of ¥3.2 billion (versus net income of ¥25.1 billion in the
year-earlier period).
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, amid a continued slump in the publication market, DNP pursued
aggressive sales activities in Publishing & Media Services, but sales of books and magazines
both decreased year on year. In the Education and Publications Distribution business, DNP
focused on expanding business in the “honto” hybrid bookstore network that combines physicalbookstores, online bookstores, and e-book services. Sales were favorable for online bookstoresand e-books, and new accounts in library operations outsourcing services also increased.
However, sales in the Education and Publications Distribution business decreased from theprevious year as a result of switching BUNKYODO GROUP HOLDINGS CO., LTD. from a
consolidated subsidiary to an equity-method affiliate due to the partial sale of its stock in
October 2016. Overall sales in the Publishing business also decreased year on year.
In the Information Innovation business, sales decreased for catalogs, pamphlets, and otherprinted media, but were strong for point-of-purchase promotional materials (POP) and othersales promotion tools. Moreover, sales were firm for Information Processing Services (IPS;
handling data entry, printing, and shipment of personalized mail and other items), due partly to
an increase in Business Process Outsourcing (BPO) centers that perform a wide range of
operations for client companies, such as reception services for various applications andoperation of consumer contact points. Sales were also favorable for smart cards for financial
institutions and electronic money, and overall sales in the Information Innovation businessincreased from the previous year.
In the Imaging Communication business, DNP worked to provide high-value-added services
that allow consumers to enjoy photo printing, including “ShaGoo!” automated commemorative
photo booths, issuance of fan club membership cards using “Ki-Re-i” ID photo booths, andImaging Mall as a cloud-based image sales solution that provides companies that are looking toprint and sell content images a full range of capabilities from image data storage to website
construction, image processing, printing, and delivery. DNP expanded Southeast Asian and2

European sales of dye-sublimation thermal transfer printing media for photo printers (color ink
ribbons and receiver paper). However, sales decreased in Japan and North America, andoverall sales fell below the previous year.
As a result of the above, overall segment sales fell 3.1% year on year to ¥576.0 billion but
operating income grew 11.6% to ¥15.2 billion.
Lifestyle and Industrial Supplies
In the Packaging business, sales were firm for film packaging, paper cups, plastic molded
products, and systems such as filling and packaging equipment. However, sales declined for
paper packaging, and overall sales decreased from the previous year.
In the Living Space business, DNP focused on expanding sales of environmentally conscious
products that use its proprietary electronic beam (EB) coating technology. Sales also increased
for Arttec interior and exterior aluminum panels and for decorative films featuring sophisticateddesigns such as wood grains and metals along with realistic texture effects, both used in
non-housing applications such as commercial facilities, offices, automobiles, and railway cars.
Overall sales increased from the previous year.
In the Industrial Supplies business, sales of lithium-ion battery components were favorable
for both mobile and automotive applications, and overseas sales of photovoltaic module
components increased. Overall sales increased from the previous year.
As a result of the above, overall segment sales grew 2.1% year on year to ¥296.2 billion but
operating income fell 13.0% to ¥9.6 billion.
Electronics
In the Display Components business, sales of LCD color filters decreased from the previous
year for both small- and medium-sized filters for smartphones and tablets and large filters forTVs. However, sales were strong for metal masks used in the production of organic
light-emitting diode (OLED) displays. Optical films had firm sales of mainstay anti-reflection
films for LCDs and higher sales of films for OLED displays. As a result, overall sales increased
from the previous year.
In the Electronic Devices business, semiconductor photomask sales increased from theprevious year on uptake of overseas and domestic demand.
As a result of the above, overall segment sales grew 10.8% year on year to ¥139.6 billion
and operating income grew 115.9% to ¥23.5 billion.
[BEVERAGES]
Beverages
In the soft drink industry, manufacturers continued to compete hard for market share, spending
heavily on sales promotion and discounting prices. In this environment, DNP bolstered sales ofcore brands by releasing new products, including foods for specified health use and foods withfunction claims. DNP also worked to expand share in existing markets and acquire newcustomers by leveraging area marketing and operational expertise in the vending machine
business.
As a result of these efforts, sales increased for the mainstay Coca-Cola brand and for
unsweetened tea drinks including Ayataka. However, sales decreased for mineral waters and togroup bottlers outside the Hokkaido region. Overall segment sales fell 0.7% year on year to¥43.0 billion and operating income fell 8.6% to ¥2.1 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter increased by ¥48.6 billion from the end of theprevious fiscal year to ¥1,790.5 billion, due mainly to an increase in investment securities.
Total liabilities increased by ¥24.9 billion from the end of the previous fiscal year to ¥685.5
billion, due mainly to an increase in repair reserves.
Net assets increased by ¥23.7 billion from the end of the previous fiscal year to ¥1,105.0

3billion, due mainly to an increase in valuation difference on available-for-sale securities.
As a result of the above, the equity ratio changed from 59.4% at the end of the previous fiscal
year to 59.0%.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2018 are unchanged from the forecasts
announced on May 12, 2017.

4

2. Quarterly consolidated financial statements and key notes(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2017

As of December 31, 2017

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

5

210,454341,805
84,28629,13023,89649,194(1,627)
737,140

191,527
351,178
84,33433,862
24,85839,928(1,425)724,264

206,196
80,689155,114
18,326
36,839497,166

200,743
77,115
153,710
14,21336,685482,467

34,43634,43632,52032,520380,323
96,894(4,057)473,160
1,004,763
1,741,904

458,887
96,126(3,696)551,317
1,066,306
1,790,570

(Million yen)
As of March 31, 2017

As of December 31, 2017

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

247,562
43,035

253,798
33,317

Reserve for bonuses

17,056

6,768

Repair reserve

18,67922,777

Other

88,864

94,870Total current liabilities

415,198

411,532

109,640

108,600

Long-term debt

8,658

7,651

Repair reserve–

20,579Net defined benefit liability

35,14935,050

Deferred tax liabilities

66,147

77,252

Other

25,82324,886

Total long-term liabilities

245,418

274,020660,617685,552

Common stock

114,464

114,464

Capital surplus

144,280

144,269

Retained earnings

695,720651,267

Treasury stock(69,636)(62,907)

Total stockholders’ equity

884,829

847,093

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

149,574

207,041(2)12Foreign currency translation adjustments(2,219)453

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

1,683

1,567

149,035

209,075

47,422

48,848TOTAL NET ASSETS

1,081,286

1,105,017

TOTAL LIABILITIES AND NET ASSETS

1,741,904

1,790,570

Long-term liabilities
Bonds

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Non-controlling interests6(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2016
1,050,062

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

Cost of sales

851,297

842,797

Gross profit

198,765

208,161

Selling, general and administrative expenses

176,377

175,558

Operating income

22,38732,603

5,085
2,379
3,759
11,223

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

1,671
4,867
6,538

1,664
5,891
7,556

27,07236,281

944
40,277
3,718
44,9392,038
15,754719
18,512

2,358
30,2181,401
33,9782,863
53,500559
56,922

38,034(2,128)

8,596
2,333
10,93027,103

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

1,968

2,151

25,135(3,208)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 fixed assets
Gain on sale of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Repair costs and repair reserve provisions
Other
Total extraordinary losses
Income (Loss) before income taxes andnon-controlling interests
Current income taxes
Deferred income taxes
Total income taxes
Net income (loss)
Net income attributable to non-controllingshareholders
Net income (loss) attributable to parent company
shareholders

7

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

Net income (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

8

Nine months ended
December 31, 2016

Nine months ended
December 31, 201727,103(1,057)

11,77357,242

31(11,336)
646

28
1,358
(737)

(3,585)

1,934(2,470)24,63359,82658,76923,654
97856,831
1,937

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥15,035 million during the first nine months of the current fiscal
year, due mainly to share repurchases based on a resolution passed by the Board of Directors
on May 12, 2017.
Additionally, retained earnings decreased by ¥21,763 million and treasury stock decreasedby ¥21,763 million during the first nine months of the current fiscal year due to the cancellationof treasury stock on May 26, 2017 based on a resolution passed by the Board of Directors on
May 12, 2017.
[Changes in accounting estimates](Repair reserves)
DNP previously recorded repair reserves to cover the expected required repair costs for defects
in some products, but because it was able to obtain new and more accurate information about
the products subject to repair, it changed its estimate for the first six months of the fiscal year
ending March 2018.
As a result, income before income taxes and non-controlling interests decreased by ¥53.5
billion for the first nine months of the fiscal year ending March 2018.

9

[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2016 – December 31, 2016)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

591,256

289,520

125,986

43,2991,050,062–

1,050,062

Inter-segment

3,225

602

–

36

3,864

(3,864)–

Total

594,481

290,122

125,986

43,336

1,053,927(3,864)

1,050,062

Segment income

13,702

11,056

10,892

2,319

37,971(15,583)

22,387

Beverages

Total

Net sales
Outside customers

Notes: 1. Segment income is adjusted for costs related to basic research not assignable to a reporting segment
or costs of research shared by different segments.
2. Segment income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

II. First nine months of current fiscal year (April 1, 2017 – December 31, 2017)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeInformation
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. Segment income is adjusted for costs related to basic research not assignable to a reporting segment
or costs of research shared by different segments.
2. Segment income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

10