Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2021 [J-GAAP]
February 9, 2021

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.dnp.co.jp/eng/
Representative:
Yoshinari Kitajima, President
Contact person:
Daisuke Sasaki, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:February 9, 2021
Dividend payment date:–Preparation of quarterly earnings presentation material: No
Holding of quarterly results briefing:No(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2020
(April 1, 2020 – December 31, 2020)(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, 2020
Nine months ended
December 31, 2019

Million yen%

Million yen%

Million yen%

Million yen%

987,689(5.7)

31,959(22.7)

39,598(17.3)

24,109(72.3)

1,047,155

0.1

41,345

14.4

47,906

15.5

87,077242.4

Note: Comprehensive income: For the first nine months ended December 31, 2020: ¥ 81,199 million (+7.3%)
For the first nine months ended December 31, 2019: ¥ 75,668 million (+435.1%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2020
Nine months ended
December 31, 2019

Yen

Yen

85.84

85.80

291.13291.10(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2020

1,706,865

1,031,638

57.3

As of March 31, 2020

1,721,724

968,57453.2

Note: Stockholders’ equity as of December 31, 2020: ¥ 978,011 million

As of March 31, 2020: ¥ 915,779 million

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

Year ended
March 31, 2020
Year ending
March 31, 2021

SecondQuarter-end

Third
Quarter-end

–

32.00

–

–

32.00

–

Year-end

Total

32.00

64.00

Year ending March 31, 2021
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, 2021
(April 1, 2020 – March 31, 2021)(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

1,340,000 (4.4)
40,000 (28.9)
48,000 (24.7)
21,000 (69.8)
Note: Revisions to the most recently announced earnings forecasts during the third quarter: No

74.77

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)

As of December 31,
2020

324,240,346
shares

As of March 31, 2020

324,240,346
shares2) Number of treasury shares at
end of each period

As of December 31,
2020

43,362,352
shares

As of March 31, 2020

43,359,344
sharesNine months ended
December 31, 2020

280,879,755
sharesNine months ended
December 31, 2019

299,098,706
shares3) Average number of shares
outstanding during the period(cumulative from the start of the
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 third quarter (3) Explanation of the consolidated earnings forecasts,” on page 4.

Contents
1. Qualitative information on the consolidated results for the first nine months ...............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[Segment information, etc.] ...........................................................................................91

1. Qualitative information on the consolidated results for the first nine months(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group during the first nine months of the fiscal year
ending March 2021 were extremely adverse, with a sharp retrenchment in consumer spending
and corporate activity and a decline in demand for various printed materials due to the impact of
the novel coronavirus (hereafter, COVID-19). While economic activity in all countries and regions
gradually resumed in the latter part of the second quarter of the fiscal year, the recovery remained
muted, and a sharp increase in COVID-19 cases at the end of the third quarter created greater
uncertainty about the outlook for containing the pandemic. However, adoption of teleworking
increased considerably, digital transformation (DX, including network-based remote learning andonline medical consultations) accelerated, and 5G mobile communications systems came intofull-scale use, resulting in greater demand for higher-performance digital devices. A global focus
on reducing environmental impact also resulted in greater demand for environmentally conscious
products and services.
Amid these major changes, the DNP Group is focusing on business areas with highprofitability and prospects for market growth such as the Internet of Things (IoT)/next-generation
communications, data distribution, environment, and mobility by combining its unique strengths
in printing and information (P&I), including information and communications technology (ICT). It
is working to build a strong business portfolio by optimizing the allocation of management
resources to the above businesses and restructuring to enhance competitiveness. The DNPGroup also worked to strengthen its business base to support sustainable growth for the entire
group by using ICT to improve productivity, revamping its internal system platform, and promoting
its environmental, human capital, and human rights initiatives.
Despite these efforts, consolidated net sales for the first nine months fell 5.7% year on yearto ¥987.6 billion, consolidated operating income fell 22.7% to ¥31.9 billion, consolidated ordinary
income fell 17.3% to ¥39.5 billion, and net income attributable to parent company shareholders
fell 72.3% to ¥24.1 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, areas such as ID cards (mainly Japan's social security
and tax number ("My Number") cards) and Business Process Outsourcing (BPO) saw steady
growth, partly reflecting an increase in demand driven by government stimulus measures. BPO
services handle business processes on behalf of companies seeking to respond to labor
shortages and work-style reforms. However, overall sales in the Information Innovation businessdeclined due to the postponement and cancellation of events throughout Japan, a reduction inpromotional campaigns and other advertising demand, and a decline in sales of pamphlets,
catalogs, and other printed media.
In the Imaging Communication business, sales declined as opportunities to shoot and print
photos at tourist destinations and amusement facilities decreased due to government stay-athome requests, which considerably reduced sales of related products and services.
In the Publishing business, more time spent at home due to government stay-at-homerequests drove favorable e-book sales trends in the "honto" hybrid bookstore network, whichhandles both printed and electronic books, and an increase in the number of institutions
outsourcing digital library services. However, overall sales in the Publishing business declined
due to the continuing downtrend in printing orders for books and magazines.
As a result of the above, overall segment sales fell 7.8% year on year to ¥529.1 billion andoperating income fell 49.9% to ¥10.6 billion.
Lifestyle and Industrial Supplies
In the Packaging business, demand increased for packaging for pharmaceuticals and sanitarymaterials in response to COVID-19, but demand for commercial packaging materials forbeverages, souvenirs, and restaurant use declined due to government stay-at-home requests.

2

As a result, overall sales in the Packaging business declined.
In the Living Spaces business, the DNP Group worked to create new demand by releasing
products with antibacterial and antiviral functionality to combat infectious diseases. Enquiries
regarding decorative films and other automotive products rebounded amid signs of a recovery indomestic and overseas automobile demand, but demand for interior and exterior decorative
materials for housing declined due to the delay or suspension of domestic housing construction
and remodeling work. As a result, sales in the Living Spaces business declined.
In the High-Performance Industrial Supplies business, sales rose for battery pouches used in
automotive lithium-ion batteries due to increasing worldwide growth in demand for electricvehicles that reduce environmental impact, and for battery pouches for lithium-ion batteries usedin tablets and smartphones due mainly to an increase in teleworking. As a result, overall sales in
the Industrial Supplies business increased.
As a result of the above, overall segment sales fell 6.5% year on year to ¥275.7 billion, but
operating income grew 10.1% to ¥8.8 billion due to growth in the High-Performance Industrial
Supplies business and lower raw material prices.
Electronics
In the Display Components business, optical films were affected by changes in consumerpurchasing behavior caused by the COVID-19 pandemic, with lower physical store sales ofprojector screens contrasting with higher sales of products used in displays for tablets andmonitors due to an increase in household demand driven by teleworking and stay-at-homedemand, and stronger sales of products used in TVs. While sales of color filters for LCD declined
due to business structure reforms and streamlining, sales of metal masks used in the productionof organic light-emitting diode (OLED) displays remained constant, due partly to increased
adoption of these displays in smartphones. As a result, overall sales in the Display Components
business increased.
In the Electronic Devices business, sales increased due to greater demand mainly fromtelecoms and data center applications driven by growth in teleworking and 5G-related services.
As a result of the above, overall segment sales grew 4.4% year on year to ¥145.9 billion, andoperating income grew 3.9% to ¥27.4 billion due to growth in sales and the positive impact ofrestructuring.
[BEVERAGES]
Beverages
Demand from tourist destinations and restaurants declined due to government stay-at-homerequests, but sales of the Lemondo line of alcoholic beverages increased due to greater demand
from consumers drinking at home, and the DNP Group also made efforts to propose productsthat offer new value to align with lifestyle changes caused by the COVID-19 pandemic, forexample by addressing the increase in restaurant take-out demand.
Overall segment sales fell 6.8% year on year to ¥38.8 billion as growth in Lemondo sales wasoffset by factors including the impact of government stay-at-home requests, a decrease intourists and hotel guests, and a decline in beverage demand due to the temporary closure ofrestaurants and other businesses. Operating income also decreased 56.5% year on year to ¥0.7
billion, due mainly to a decline in sales volume.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter decreased by ¥14.8 billion from the end of the previous
fiscal year to ¥1,706.8 billion, due mainly to a decline in cash and time deposits.
Total liabilities decreased by ¥77.9 billion from the end of the previous fiscal year to ¥675.2
billion, due mainly to a decline in bonds redeemable within one year.
Net assets increased by ¥63.0 billion from the end of the previous fiscal year to ¥1,031.6
billion, due mainly to an increase in valuation difference on available-for-sale securities.

3(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2021 are unchanged from the forecasts
announced on August 5, 2020.

4

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

As of March 31, 2020

As of December 31,
2020

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Marketable 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

5373,013
330,798
18,00078,19932,231
23,84929,279(1,361)
884,010269,357
327,616
19,00075,66935,19825,81327,133(897)
778,892

158,089
65,016
141,423
16,42828,409409,367

158,249
68,568141,305
14,50327,029409,656

22,71622,716

26,70426,704

298,894
109,021(2,286)405,629
837,713
1,721,724

383,353
110,530(2,272)491,612927,973
1,706,865

(Million yen)

As of December 31,
2020

As of March 31, 2020
LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

238,066
39,051

228,298
30,461

Bonds redeemable within 1 year

52,4903,570

Reserve for bonuses

18,945

7,608

Repair reserve

20,636

20,046

Other

111,461

98,374

Total current liabilities

480,651

388,358

107,120

103,550

Long-term debt

5,977

7,667

Repair reserve

54,66048,711

Net defined benefit liability

35,68735,183

Deferred tax liabilities

42,821

68,386

Other

26,23023,369Total long-term liabilities

272,497

286,868

753,149

675,227

Common stock

114,464

114,464

Capital surplus

145,024

145,024

Retained earnings

676,346

682,791

Treasury stock(122,911)(122,918)

Total stockholders’ equity

812,923

819,362

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

110,051

167,900

5(8)Foreign currency translation adjustments(3,448)(5,584)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income(3,751)(3,657)

102,856

158,649

Non-controlling interests

52,79453,626TOTAL NET ASSETS

968,574

1,031,638

1,721,724

1,706,865

Long-term liabilities
Bonds

TOTAL LIABILITIESNET ASSETSStockholders’ equity

TOTAL LIABILITIES AND NET ASSETS

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, 2019
1,047,155

Nine months ended
December 31, 2020
987,689

Cost of sales

827,747

785,013Gross profit

219,407

202,676

Selling, general and administrative expenses

178,062

170,716

Operating income

41,34531,959

5,105
4,778
3,051
12,935

3,948
5,583
3,053
12,585

1,158
2,153
3,061
6,373

1,065
1,458
2,422
4,947

47,906

39,59830,15551,367–
29
81,552

453
165
365
–
984

1,709
605
313
111
2,739

1,087
24
755
1,093
2,960

126,719

37,621

20,197
17,07037,26789,451

8,454
3,157
11,61226,009

2,374

1,899

87,077

24,109Net 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
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on sale of investment securities
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, 2019
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, 2020

89,451

26,009(10,081)

57,98036(2,416)(860)(25)(2,625)
855

(461)

(993)

(13,783)
75,66855,19081,19973,202
2,465

79,902
1,297

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2019 – December 31, 2019)
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 ofincome Note 2

Net sales
Outside customers

571,568

294,074

139,871

41,6401,047,155–

1,047,155

Inter-segment

2,406

867

–

16

3,289

(3,289)–

Total

573,974

294,941

139,871

41,656

1,050,444(3,289)1,047,155

21,2408,052

26,3891,803

57,485(16,140)

41,345

Segment 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.

II. First nine months of current fiscal year (April 1, 2020 – December 31, 2020)
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 ofincome Note 2

Net sales

527,462

275,441

145,969

38,815

987,689–

987,689

Inter-segment

1,699

272

–

13

1,985

(1,985)–

Total

529,162

275,713145,969

38,829989,674(1,985)

987,689

10,632

8,867

27,411784

47,695(15,736)

31,959Outside customers

Segment 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.

9