Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2023 [J-GAAP]

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

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: https://www.dnp.co.jp/eng/
Yoshinari Kitajima, President
Naoki Wakabayashi,
General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:February 9, 2023
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly results briefing:No

February 9, 2023

(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2022
(April 1, 2022 – December 31, 2022)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

Million yen%

Million yen%

Million yen%

Million yen%

1,023,560

2.2

44,583(9.5)

57,675(2.2)

64,445(7.3)

1,001,660

1.4

49,25854.1

58,962

48.9

69,551

188.5

Note: Comprehensive income: For the first nine months ended December 31, 2022: ¥40,720 million (-62.9%)
For the first nine months ended December 31, 2021: ¥109,884 million (35.3%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2022
Nine months ended
December 31, 2021

Yen

Yen

241.00240.96253.54253.50(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2022

1,845,357

1,161,837

59.7

As of March 31, 2022

1,876,647

1,148,413

58.2

Note: Stockholders’ equity as of December 31, 2022: ¥1,100,990 million

As of March 31, 2022: ¥1,091,861 million

2. Dividends
Annual Dividends (Yen)First Quarterend

Year ended
March 31, 2022
Year ending
March 31, 2023

Second Quarter- Third Quarterend
end

–

32.00

–

–

32.00

–

Year-end

Total

32.00

64.00

Year ending March 31, 2023
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the third quarter: No

64.00

3. Consolidated earnings forecasts for the year ending March 31, 2023
(April 1, 2022 – March 31, 2023)(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%

Yen

1,380,000
2.7
67,0000.3
81,5000.3
67,000 (31.1)
Note: Revisions to the most recently announced earnings forecasts during the third quarter: No

250.92

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the third 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
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of December 31,
2022

317,240,346
shares

As of March 31, 2022

317,240,346
shares

As of December 31,
2022

51,510,444
shares

As of March 31, 2022

48,175,114
sharesNine months ended
December 31, 2022

267,401,804
sharesNine months ended
December 31, 2021

274,316,961
shares* These financial results are exempt from auditing by a certified public accountant or an auditing company.
* Explanation regarding appropriate use of earnings forecasts and other special notes
Forward-looking statements in this report, including earnings forecasts, are based on assumptions about
economic conditions, market trends, and other factors at the time the report was published. Actual results
may differ significantly due to a variety of factors.
For information about earnings forecasts, see the section titled, “1. Qualitative information on the
consolidated results for the third quarter (3) Explanation of the consolidated earnings forecasts and otherprojections,” on page 4.

Contents
1. Qualitative information on the consolidated results for the third quarter .......................2(1) Explanation of the consolidated financial results ........................................................2(2) Explanation of the consolidated financial position ......................................................4(3) Explanation of the consolidated earnings forecasts and other projections ..............4(4) Announcement of “DNP Group’s Basic Management Policy”.....................................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[Segment information] ...................................................................................................9-1-

1. Qualitative information on the consolidated results for the third quarter(1) Explanation of the consolidated financial results
Conditions surrounding the DNP Group during the first nine months of the fiscal year ending
March 2023 were marked by progress in pursuing economic activity alongside measures toprevent the spread of the novel coronavirus (COVID-19). The domestic economy displayed amild recovery trend. On the other hand, business confidence continued to decline due to factors
such as rising costs of materials, energy, and logistics. Moreover, many areas outside Japan
were also affected by inflation and ensuing monetary tightening, causing their economies toshow signs of slowdown. Due to these and other factors, the business environment in Japan andthe rest of the world became harsher. The outlook for the future remains uncertain due to suchconcerns as inflation and currency exchange fluctuations, geopolitical risks posed by thesituation in Ukraine, and the ongoing COVID-19 pandemic.
In addition to responding quickly and flexibly to these changes, the DNP Group has been
striving to realize a better, more sustainable society and more fulfilling lifestyles by taking theinitiative to institute change. In line with DNP’s “P&I Innovation” business vision, we resolve social
issues by combining our unique strengths in printing and information (P&I) technologies and byforming deeper alliances with our many partners. At the same time, we work at generating newvalue. In particular, we designated businesses related to four areas where we anticipate highprofitability and strong market growth the Internet of Things (IoT) and next-generation
communications, data distribution, mobility, and the environment as “focus businesses” in which
we concentrate and optimally allocate management resources, both financial capital and nonfinancial capital including human resources and intellectual property. We also continue to workon structural reforms aimed at enhancing our competitiveness, and on building a strong businessportfolio. In addition, we are actively and specifically investing in people, primarily through the
Human Capital Policy that we adopted during this fiscal year, and we are working to strengthen
the human capital that serves as the linchpin of value creation.
As a result of these efforts, consolidated net sales for the first nine months grew 2.2% year
on year to ¥1,023.5 billion, consolidated operating income fell 9.5% to ¥44.5 billion, consolidated
ordinary income fell 2.2% to ¥57.6 billion, and net income attributable to parent company
shareholders fell 7.3% to ¥64.4 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
Although the Information Innovation business saw a decrease in sales of paper media such ascommercial printing and business forms, sales of smart cards for financial institutions and ofJapanese government-issued ID (“My Number”) smart cards increased, as did sales from
Business Process Outsourcing. As a result, overall sales in the Information Innovation businessgrew.
In Imaging Communications, sales rose thanks to solid
demand for photo shooting andprinting materials and services, in Europe and Asia as well as in the U.S., which is the coremarket for this business.
n Publishing, the decline in printing orders for magazines and other paper media wasexacerbated by other factors. For example, even DNP’s “honto” hybrid bookstore network, whichhandles both paper and electronic media, experienced a decline relative to the previous year’s
surge in stay-at-home demand, and overall Publishing sales declined.
As a result of the above, overall segment sales rose 2.8% from a year earlier to ¥533.0 billion.
Operating income was ¥17.9 billion, up 0.6% year on year despite increased costs of materials,
energy and logistics, thanks to increased sales in focus businesses and the contribution ofcurrency exchange rates.
Lifestyle and Industrial Supplies
In the Packaging business, we made the most of the strengths we have gained from developing-2-

packaging for everyday products like foods and household goods, and increased our efforts at
designing more comfortable lives for people. Also, as a result of our work in areas like thedevelopment and sales of environmentally friendly “DNP GREEN PACKAGING” products, weenjoyed strong sales of film packaging products, and overall sales grew.
The Living Spaces business saw a decline in sales of decorative materials for residential
interiors and exteriors in Europe and the United States, but domestic sales increased. In addition,
there were stronger sales of decorative films for automobile interiors and increased sales ofprinted aluminum panels for interior and exterior use in the in North American market. Overall,
we achieved Living Spaces sales that were roughly in line with the previous year’s results.
In the Industrial High-Performance Materials business, there was increased demand forbattery pouches for lithium-ion automotive batteries as auto manufacturers began to reverse theproduction cuts they had instituted in response to a global shortage of semiconductors. However,sales of battery pouches for IT applications such as smartphones and laptop computers sufferedfrom inflationary pressure and from the resulting inventory adjustments by client companies. Dueto this and other factors, overall sales of Industrial High-Performance Materials decreased.
As a result of the above, segment sales amounted to ¥300.1 billion, up 3.3% from the previous
year. However, despite efforts to reflect higher raw material and energy costs in sale prices, thetime lag between cost increases and price increases, along with a series of further cost increases
and sluggish sales in the highly profitable focus businesses, resulted in operating income
dropping 51.8% year on year to ¥5.6 billion.
Electronics
The Display Components business enjoyed strong sales of metal masks used in the productionof organic light-emitting diode (OLED) displays as they were adopted for use in an increasing
share of smartphones. However, sales of optical films shrank due to a sense of the winding downof stay-at-home demand as well as inventory adjustments in the overall supply chain in line witha worldwide slowdown in consumption. As a whole, Display Components sales fell.
The Electronic Devices business suffered from a slowdown in expansion of the semiconductor
market, and demand for lead frames, which are a component of semiconductor packages, wasaffected by inventory adjustments in some places. On the other hand, there was strong demand
for semiconductor photomasks needed for product development by our client companies,
resulting in an overall increase in sales of Electronic Devices.
As a result of the above, overall segment sales fell 2.4% from a year earlier, to ¥153.2 billion.
Nevertheless, operating income grew 1.6% year on year to ¥36.0 billion as income frombusinesses like photomasks made up for the decline in focus businesses, and also thanks tohelp from favorable exchange rates.
[BEVERAGES]
Beverages
In response to soaring raw material prices and other cost increases, we revised prices for
products shipped in large PET plastic bottles. We focused on providing products that respond to
consumer needs. For example, as consumers become increasingly aware of the United Nations
Sustainable Development Goals, we have been developing eco-friendly, label-free products, andin order to boost milk consumption, we built dedicated sales corners for products that use milk
produced in Hokkaido.
Overall segment sales reached ¥38.8 billion yen, up 3.8% year on year, thanks to a recovery
in convenience store sales on top of increased sales volumes at restaurants and online. Despite
efforts to improve profitability by cutting costs and improving productivity, operating income
declined 32.5% from the previous year, to ¥0.5 billion, largely due to the heavy weight of soaring
raw material and energy prices.
The DNP Group has long believed that respecting employees leads to the respected employees
driving corporate growth and enhancing society. In the fiscal year ending March 2023, wepositioned this belief as our “universal and basic approach to human resource” and established
it as our Human Capital Policy. We assigned this policy priority over the various statements that
we have formulated as we concentrated on reconstructing our personnel systems over the past-3-

several years, including the DNP Group Declaration on Health, the DNP Group Diversity
Declaration and the DNP Group Safety and Health Charter. Our employees are our mostimportant asset as we create new value, and we intend to continue building our human capitalthrough active and specific investment in people.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter decreased by ¥31.2 billion from the end of the previous
fiscal year to ¥1,845.3 billion, due mainly to a decrease in investment securities.
Total liabilities decreased by ¥44.7 billion from the end of the previous fiscal year to ¥683.5
billion, due mainly to a decrease in deferred tax liabilities.
Net assets increased by ¥13.4 billion from the end of the previous fiscal year to ¥1,161.8
billion, due mainly to an increase in retained earnings.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2023 are unchanged from the forecasts
announced on May 13, 2022.
(4) Announcement of “DNP Group’s Basic Management Policy”
On February 9, 2023, we announced the “DNP Group’s Basic Management Policy.”
For details, please refer to the “Announcement of ‘DNP Group’s Basic Management Policy’
Aimed at Formulation of New Medium-term Management Plan” that we released on February 9,
2023.

-4-

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

As of March 31, 2022

As of December 31,
2022

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

287,334

245,108

324,846

342,868

17,90080,38530,98030,25533,804(693)
804,81322,80086,16034,89336,13431,932(601)
799,295

160,506
70,830139,573
25,64025,325421,875

160,440
68,822
140,566
43,38024,966438,176

27,747
27,74730,89730,897410,266
213,902(1,957)622,210
1,071,834
1,876,647

359,911219,138(2,061)
576,987
1,046,062
1,845,357

(Million yen)

As of March 31, 2022

As of December 31,
2022

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

236,188
33,990233,041
23,498Reserve for bonuses

20,367

8,167

Repair reserve

17,252

18,070Other

98,308101,227

Total current liabilities

406,108

384,005

Bonds

102,500

100,000

Long-term debt

14,254

13,925

Repair reserve

28,036

21,894

Net defined benefit liability

55,88856,964

Deferred tax liabilities

102,275

88,701

Other

19,17018,028

Total long-term liabilities

322,125

299,515

728,233

683,520

Common stock

114,464

114,464

Capital surplus

145,143

145,156

Retained earnings

740,183

787,017

Treasury stock(133,123)(142,935)

Total stockholders’ equity

866,667

903,702

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

192,994

153,91845(53)

Foreign currency translation adjustments

4,220

19,988Remeasurements of defined benefit plans
Total accumulated other comprehensive
income27,932

23,434225,193

197,287

Non-controlling interests

56,552

60,846TOTAL NET ASSETS

1,148,413

1,161,837

TOTAL LIABILITIES AND NET ASSETS

1,876,647

1,845,357

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity-6-(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2021
1,001,660

Nine months ended
December 31, 2022
1,023,560

Cost of sales

783,112806,582

Gross profit

218,548

216,977

Selling, general and administrative expenses

169,289

172,393

Operating income

49,25844,583

3,727
6,642
3,337
13,707

4,084
9,896
3,225
17,206

548
829
2,624
4,003

521
944
2,648
4,114

58,962

57,675

5,962
11,284
18,534
1,876
37,65817,36911,056–
2,687
31,113

1,074
461
305
1,841

724
269
537
1,531

94,77987,256

11,056
12,512
23,56971,20912,473
7,142
19,616
67,640

1,658

3,195

69,55164,445Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of investment securities
Retirement benefit plan revision gains
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 non-controllinginterests
Current income taxes
Deferred income taxes
Total income taxes
Net income
Net income attributable to non-controllingshareholders
Net income attributable to parent company
shareholders-7-

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

Nine months ended
December 31, 2021
Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders-8-

Nine months ended
December 31, 2022

71,20967,64035,859(38,888)

10
5,034(4,546)(88)
13,460(4,813)

2,317

3,409

38,675
109,884(26,920)
40,720107,792
2,092

36,5394,181

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥9,811 million during the first nine months of the fiscal year ending
March 2023, due mainly to share repurchases based on a resolution passed by the Board of
Directors on May 13, 2022.
[Segment information]
I. First nine months of previous fiscal year (April 1, 2021 – December 31, 2021)
Information on sales and income/loss by reporting segment and breakdown of revenue
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Net sales
Outside customers

516,979

290,238

156,991

37,4501,001,660–

1,001,660

Inter-segment

1,629

354

–

5

1,989

(1,989)–

Total

518,609290,593

156,991

37,455

1,003,650(1,989)1,001,660

17,828

11,63935,446833

65,748(16,489)

49,258Segment income

Notes:

1.
2.
3.

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.
Net sales include both revenue from contracts with customers and other revenue; these are notdisplayed as separate categories because the former accounts for almost the entirety of sales andthe latter is not significant.

II. First nine months of current fiscal year (April 1, 2022 – December 31, 2022)
Information on sales and income/loss by reporting segment and breakdown of revenue
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincome Note 2

Net sales Note 3

531,597299,802

153,267

38,892

1,023,560–

1,023,560

Inter-segment

1,460

319

–

4

1,784

(1,784)–

Total

533,058

300,121

153,267

38,897

1,025,344(1,784)

1,023,560

17,932

5,608

36,018562

60,122(15,538)

44,583

Outside customers

Segment income

Notes:

1.
2.
3.

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.
Net sales include both revenue from contracts with customers and other revenue; these are notdisplayed as separate categories because the former accounts for almost the entirety of sales andthe latter is not significant.

-9-