Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2017
[J-GAAP]
August 9, 2016

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, Press and Public Relations
Telephone:+81-3-6735-0101
Securities report issuing date:August 10, 2016
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 three months ended June 30, 2016
(April 1, 2016 – June 30, 2016)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income

Net Sales

Three months ended
June 30, 2016
Three months ended
June 30, 2015

Parent Company
Shareholders

Million yen%

Million yen%

Million yen%

Million yen%

349,800

(2.6)

5,927

(48.1)

8,937(41.7)

776(90.4)

358,975

1.1

11,419(2.4)

15,332

4.7

8,113

7.7

Note: Comprehensive income: For the first three months ended June 30, 2016: ¥2,696 million (-78.9%)
For the first three months ended June 30, 2015: ¥12,787 million (48.8%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2016
Three months ended
June 30, 2015

Yen

Yen

1.24

1.22

12.65

12.51

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2016

1,680,532

1,046,237

59.5

As of March 31, 2016

1,718,636

1,063,24159.2

Note: Stockholders’ equity as of June 30, 2016: ¥999,474 million

As of March 31, 2016: ¥1,017,425 million

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

Year ended
March 31, 2016
Year ending
March 31, 2017–

SecondQuarter-end

Third
Quarter-end

16.00

–

Year-end

16.00

Total

32.00

–

Year ending March 31, 2017
16.00
–
16.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

32.00

3. Consolidated earnings forecasts for the year ending March 31, 2017
(April 1, 2016 – March 31, 2017)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable to
Net Income
Operating Income
Ordinary Income
Parent Company
per Share

Net Sales

Shareholders%

Yen1,470,000
1.0
48,000
5.6
54,0002.6
34,5002.7
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

55.78

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: Yes
2) Changes in accounting policies other than the 1) above:Yes3) Changes in accounting estimates:
Yes
4) Restatement of revisions:No
Note: For further details, see the section titled, “2. Summary information (notes), Changes in accounting
policies, changes in accounting estimates, and restatement of revisions,” on page 4.
(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 June 30, 2016

663,480,693
shares

As of March 31, 2016

680,480,693
shares

As of June 30, 2016

43,624,364
shares

As of March 31, 2016

51,919,577
sharesThree months ended
June 30, 2016

625,708,916
sharesThree months ended
June 30, 2015

641,278,967
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 is underway as of the release of these Consolidated Financial Results.
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 prepared. Actual results
may differ significantly due to a variety of factors.
See the “1. Qualitative information on the consolidated results for the current quarter, (3) Explanation of
the consolidated earnings forecasts” on page 3 for information about earnings forecasts.

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. Summary information (notes) .............................................................................................. 4
Changes in accounting policies, changes in accounting estimates, andrestatement of revisions ................................................................................................. 4
3. Quarterly consolidated financial statements ..................................................................... 6(1) Quarterly consolidated balance sheets ......................................................................... 6(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income .......................................................................... 8
Quarterly consolidated statements of income
First three months of the fiscal years ....................................................................... 8
Quarterly consolidated statements of comprehensive income
First three months of the fiscal years ....................................................................... 9(3) Notes regarding quarterly consolidated financial statements .................................. 10[Notes on premise of a going concern] ....................................................................... 10[Significant changes in shareholders’ equity]............................................................ 10[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 maintained a gradual recovery trend during the first three months of the fiscal
year, aided by the economic policies of the Japanese government. However, the economy has
still not reached a full-fledged recovery, due partly to sluggish consumer spending and overseas
economic slowdowns, including in China. Additionally, corporate retirement benefit obligations
appear to be rising as a result of Japan’s negative interest rate policy, and with the yen
appreciating sharply and share prices declining through the end of June in the wake of the UK’s
national referendum decision to exit the EU, the economic outlook is increasingly uncertain.
The printing industry continued to face a tough business environment as a result of lower
demand for printed media, including published printed materials, and lower order prices due tostiffer competition.
In this environment, the DNP Group (DNP) established the four growth areas of “Knowledge
and Communication,” “Food and Healthcare,” “Lifestyle and Mobility,” and “Environment andEnergy.” It focused on creating new value through P&I innovations and worked to expand its
business.
Despite these efforts, consolidated net sales for the first three months fell 2.6% year on yearto ¥349.8 billion, consolidated operating income fell 48.1% to ¥5.9 billion, consolidated ordinary
income fell 41.7% to ¥8.9 billion, and net income attributable to parent company shareholders
fell 90.4% to ¥0.7 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, amid a continued slump in the publications market, book sales
increased from last year thanks to aggressive sales activities, but a decline for magazines had alarge impact, and Publishing & Media Services fell below year-ago levels. Meanwhile, in the
Education and Publications Distribution business, sales were firm in the “honto” hybrid
bookstore network that combines physical bookstores, online bookstores, and e-book sales
services; and library operations outsourcing sales increased from the previous year on growth in
the number of outsourcing libraries. As a result, overall sales were generally on par with theprevious year.
In the Information Innovation business, sales increased for point-of-purchase promotional
materials (POP) and other sales promotion-related tools, as well as for catalogs, pamphlets,and other marketing materials. Sales were also strong in information security-related business,
mainly smart cards for financial institutions and electronic money and Information Processing
Services (IPS; handling data entry, printing, and shipment of personalized mail and other items).
Overall sales increased from the previous year.
In the Imaging Communication business, DNP worked to expand services that use its“ShaGoo!” automated commemorative photo booths and “Ki-Re-i” ID photo booths, but sales
decreased from the previous year due to sluggish sales of dye-sublimation thermal transfer
printing media for photo printers (color ink ribbons and receiver paper) in overseas markets,
including North America.
As a result of the above, overall segment sales grew 1.8% year on year to ¥203.4 billion, but
operating income fell 31.5% to ¥5.0 billion.
Lifestyle and Industrial Supplies
In the Packaging business, sales decreased year on year for PET plastic bottle aseptic fillingsystems, but overall sales stayed generally on par with the previous year thanks to favorable
sales for paper packaging and molded plastic goods.

2In the Lifestyle Materials business, sales held flat year on year as DNP focused on sales ofenvironmentally conscious products and other products that use its proprietary Electron Beamcoating technology and on the development of overseas markets. DNP implemented a repair
program as a result of defects for some products.
In the Industrial Supplies business, sales decreased from the previous year as a result ofsluggish sales of lithium-ion battery components for mobile applications and lower sales ofphotovoltaic module components for domestic residential applications.
As a result of the above, overall segment sales fell 0.7% year on year to ¥94.4 billion andoperating income fell 2.3% to ¥3.1 billion.
Electronics
In the Display Components business, sales were favorable for vapor deposition masks (metalmasks) used in the production of organic light-emitting diode (OLED) displays, which showpromise as next-generation displays. However, LCD color filter sales decreased from theprevious year on declines for both small- and medium-sized filters for smartphones and tablets,
and large filters for TVs. Optical film sales also decreased year on year on a decline forpolarizing plate products.
In the Electronic Devices business, semiconductor photomask sales decreased from theprevious year, despite tapping into overseas demand, as a result of sluggish sales in Japan.
As a result of the above, overall segment sales fell 22.5% year on year to ¥41.0 billion andoperating income fell 52.3% to ¥2.5 billion.
[BEVERAGES]
Beverages
The soft drink industry continued to face a tough market environment, due partly to pricecompetition among manufacturers. However, DNP worked to expand market share in existing
markets and to acquire new customers by bolstering its core brand products through the releaseof new products, and by advancing the vending machine business by leveraging area marketingand operational expertise.
As a result of these efforts, sales increased for I LOHAS, a brand of mineral water that uses alightweight PET plastic bottle, and for tea drinks, including the mainstay Ayataka brand.
However, sales decreased to group bottlers outside the Hokkaido region and for the Coca-Colabrand and sports drinks. Overall segment sales fell 1.3% year on year to ¥12.2 billion andoperating income totaled ¥0.1 billion (versus a year-earlier operating loss of ¥0.1 billion).
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥38.1 billion from the end of theprevious fiscal year to ¥1,680.5 billion, due mainly to decreases for cash and time deposits andfor notes and trade receivables.
Total liabilities decreased by ¥21.0 billion from the end of the previous fiscal year to ¥634.2
billion, due mainly to decreases in short-term bank loans and reserve for bonuses.
Net assets decreased by ¥17.0 billion from the end of the previous fiscal year to ¥1,046.2
billion, due mainly to a decrease in retained earnings.
As a result of the above, the equity ratio rose from 59.2% at the end of the previous fiscal
year to 59.5%.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2017 are unchanged from the forecasts
announced on May 12, 2016.

3

2. Summary information (notes)
Changes in accounting policies, changes in accounting estimates, and restatement ofrevisions(Changes in accounting policies)(Application of Revised Implementation Guidance on Recoverability of Deferred Tax
Assets)DNP is applying the “Revised Implementation Guidance on Recoverability of Deferred Tax
Assets” (ASBJ Guidance No. 26, March 28, 2016), and revising some accounting methods
related to the recoverability of deferred tax assets, starting in the first quarter of the current fiscal
year.
DNP is applying the Revised Implementation Guidance on Recoverability of Deferred Tax
Assets in line with transitional measures stipulated in Paragraph 49 (4) of said guidance. Any
differences between the amounts of deferred tax assets and deferred tax liabilities when
applying the provisions in Paragraph 49 (3), Items 1–3, of said guidance at the start of the firstquarter of the current fiscal year, and the amounts of deferred tax assets and deferred tax
liabilities at the end of the previous fiscal year, are added to retained earnings at the start of thefirst quarter of the current fiscal year.
These changes have an immaterial impact on the quarterly financial statements at the startof the first quarter of the current fiscal year.
(Application of Practical Solution on a Change in Depreciation Method Due to Tax
Reform 2016)
DNP and some domestic consolidated subsidiaries, in line with amendment of the Corporation
Tax Act, are applying the “Practical Solution on a Change in Depreciation Method Due to Tax
Reform 2016” (ASBJ Practical Issue Task Force (PITF) No. 32, June 17, 2016), and arechanging the depreciation method for buildings and accompanying facilities as well as forstructures acquired on or after April 1, 2016 from declining balance depreciation to straight-line
depreciation, starting in the first quarter of the current fiscal year.
These changes have an immaterial impact on the quarterly financial statements for the firstquarter of the current fiscal year.
(Changes in accounting policies that are difficult to distinguish from changes inaccounting estimates)(Changes in depreciation method and service life)
DNP consolidated subsidiary Hokkaido Coca-Cola Bottling Co., Ltd. (hereinafter, HCCB) andthe consolidated subsidiaries of HCCB (hereinafter, HCCB Group) previously depreciatedtangible fixed assets mainly using declining balance depreciation, but are changing tostraight-line depreciation starting in the first quarter of the current fiscal year.
This change is based on a review of the current production structure and use of fixed assets,
and the medium- to long-term capital investment strategy, in order to respond to changes in themarket environment, including stiffer completion from the full-scale entrance of rival companies
and diversifying consumer needs.
The HCCB Group’s tangible fixed assets are expected to produce average and stable
investment effects over their service life based on long-term use and stable production.
Accordingly, the HCCB Group is changing its depreciation method for tangible fixed assets fromdeclining balance depreciation to straight-line depreciation starting in the first quarter of thecurrent fiscal year, based on a judgement that equal cost allocation over the usable period canbetter reflect the usage conditions of its tangible fixed assets, and from a revenue and expense
standpoint, can better reflect its business performance.
Additionally, HCCB had mainly applied a service life of 5–6 years to vending machines, but
because it is expanding the introduction of vending machines with greater durability, concurrent
with the change in depreciation method, it is changing to a nine-year service life to better reflect4actual conditions, starting in the first quarter of the current fiscal year.
Compared with the previous methods, the above changes increase operating income by¥315 million, and ordinary income and income before income taxes and non-controllinginterests by ¥316 million, in the first quarter of the current fiscal year.

53. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2016

As of June 30, 2016

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

6

171,694
348,585
101,239
29,68625,021
46,847(1,349)721,724

151,779
330,301
103,652
30,59224,80942,563(1,214)682,484

217,516
89,549155,532
14,94635,611
513,156214,200
85,954
154,859
17,79635,469508,281

35,80235,80236,29036,290362,654
91,722(6,424)447,952
996,911
1,718,636

366,349
93,473(6,345)453,476
998,047
1,680,532

(Million yen)
As of March 31, 2016

As of June 30, 2016

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

255,585
55,316259,474
41,901

Reserve for bonuses

17,333

6,572

Other

95,07894,494

Total current liabilities

423,313402,443

Bonds

107,560

107,410Long-term debt

18,19018,454

Net defined benefit liability

34,16734,229Deferred tax liabilities

48,884

48,634

Other

23,27823,122

Total long-term liabilities

232,080

231,851

655,394

634,295

Common stock

114,464

114,464

Capital surplus

144,283

144,283

Retained earnings

717,029

681,202

Treasury stock(81,024)(64,053)

Total stockholders’ equity

894,752

875,896

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

123,478

130,265(6)(13)

Foreign currency translation adjustments

3,050(1,582)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income(3,849)(5,091)

122,672

123,577

Stock acquisition rights

16

16

Non-controlling interests

45,80046,746TOTAL NET ASSETS

1,063,241

1,046,237

TOTAL LIABILITIES AND NET ASSETS

1,718,636

1,680,532

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity7(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, 2015
358,975

Three months ended
June 30, 2016
349,800

Cost of sales

289,489

284,930

Gross profit

69,48564,869Selling, general and administrative expenses

58,06658,942

Operating income

11,419

5,927

3,357
1,120
1,088
5,566

3,421
1,173
1,820
6,415

634
–
1,019
1,653

594
1,027
1,783
3,405

15,332

8,937

40
–
83
123

666
1,076
24
1,767

234
5
–
66
305

486
2,962
2,218
51
5,718

15,150

4,986

1,564
4,688
6,252
8,897

2,091
650
2,741
2,244

784

1,468

8,113

776

Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Foreign exchange transaction loss
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on devaluation of investment securities
Repair costs
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

8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

9

Three months ended
June 30, 2015

Three months ended
June 30, 2016

8,897

2,244

8,033

6,879

40
(2,285)(3,552)(4)(4,249)463

1,654(2,637)3,890
12,787451
2,696

12,187
600

1,681
1,014

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥9,593 million during the first quarter of the current fiscal year, due
mainly to share repurchases based on a resolution passed by the Board of Directors on May 12,2016.
Additionally, retained earnings decreased by ¥26,564 million and treasury stock decreasedby ¥26,564 million during the first quarter of the current fiscal year due to the cancellation oftreasury stock on May 26, 2016 based on a resolution passed by the Board of Directors on May
12, 2016.
[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2015 – June 30, 2015)
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

198,617

94,97752,934

12,445358,975–

358,975

Inter-segment

1,277

196

–

8

1,482

(1,482)–

Total

199,895

95,17452,934

12,454360,457(1,482)358,975

Segment income (loss)

7,307

3,235

5,420

(180)

15,782(4,363)

11,419Beverages

Total

Net sales
Outside customers

Notes: 1. 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.
2. Segment income (loss) is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.

II. First three months of current fiscal year (April 1, 2016 – June 30, 2016)
1. Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeNet sales
Outside customers

202,207

94,282

41,027

12,282349,800–

349,800

Inter-segment

1,265

195

–

12

1,474

(1,474)–

Total

203,473

94,47841,027

12,295351,275(1,474)

349,800

Segment income

5,002

3,161

2,585

135

10,884(4,957)

5,927

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

2. Changes in reportable business segments, etc.
(Changes in depreciation method and service life)
DNP consolidated subsidiary Hokkaido Coca-Cola Bottling Co., Ltd. and its consolidated
subsidiaries are changing the depreciation method and service life for tangible fixed assets startingin the first quarter of the current fiscal year, as noted in the section, “Changes in accounting policies
that are difficult to distinguish from changes in accounting estimates.”Compared with the previous methods, these changes increase Beverages segment income by¥315 million in the first quarter of the current fiscal year.

11