Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2013
[J-GAAP]
November 8, 2012

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listings:
Tokyo
Stock code:
7912
URL: http://www.dnp.co.jp/
Representative:
Yoshitoshi Kitajima, President
Contact person:
Yoshio Kanbe, General Manager, Press and Public Relations
Telephone:+81-3-5225-8220
Securities report issuing date:November 9, 2012
Dividend payment date:
December 10, 2012
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 six months ended September 30, 2012
(April 1, 2012 – September 30, 2012)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Six months ended
September 30, 2012
Six months ended
September 30, 2011

Operating Income

Ordinary Income

Million yen%

Million yen%

Million yen%

720,684(4.5)

11,614(29.5)

14,673(26.0)

754,921(5.2)

16,481(58.0)

19,829(49.4)

Note: Comprehensive income (loss): For the first six months ended September 30, 2012: ¥(790) million (–%)
For the first six months ended September 30, 2011: ¥5,356 million (63.4%)
Net Income

Six months ended
September 30, 2012
Six months ended
September 30, 2011

Diluted Net Income
per Share

Net Income per Share

Million yen

%

Yen

Yen

396

(95.3)

0.62

0.59

8,422

(51.1)

13.08

13.07

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2012

1,546,265

904,862

55.7

As of March 31, 2012

1,608,806

914,21354.2

Note: Stockholders’ equity as of September 30, 2012: ¥860,575 million

As of March 31, 2012: ¥871,229 million

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

Year ended
March 31, 2012
Year ending
March 31, 2013

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

Year-end

16.00

Year ending March 31, 2013–
16.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

Total

32.00

32.00

3. Consolidated earnings forecasts for the year ending March 31, 2013
(April 1, 2012 – March 31, 2013)(Percentages show change from corresponding year-ago period.)
Net Sales
Million yen%

Operating Income

Ordinary Income

Million yen

Million yen%%

Net Income
per Share

Net Income
Million yen%

Yen

Full year
1,520,000
0.8
38,00011.7
39,0005.9
12,000–Note: Revisions to the most recently announced earnings forecasts during the current quarter: Yes

18.63

Notes
(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:No3) Changes in accounting estimates:
Yes
4) Restatement of revisions:No
Note: DNP changed depreciation methods starting in the first quarter of this fiscal year and thischange falls under the category of “changes in accounting policies that are difficult to distinguishfrom changes in accounting estimates.” For further details, see the section titled, “2. Summary
information (Notes): Changes in accounting policies, changes in accounting estimates, andrestatement 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 September 30,
2012

700,480,693
shares

As of March 31, 2012

700,480,693
shares

As of September 30,
2012

56,461,575
shares

As of March 31, 2012

56,417,765
sharesSix months ended
September 30, 2012

644,047,972
sharesSix months ended
September 30, 2011

644,122,822
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.
For information about earnings forecasts, see the section titled, “1. Qualitative information on the
consolidated results for the current quarter: (3) Qualitative information on the consolidated earnings
forecasts,” on page 4.

Contents
1. Qualitative information on the consolidated results for the current quarter ··· 2(1) Qualitative information on the consolidated financial results ·································· 2(2) Qualitative information on the consolidated financial position································ 3(3) Qualitative information on the consolidated earnings forecasts ····························· 4

2. Summary information (Notes) ··············································································· 4·················Changes in accounting policies, changes in accounting estimates, andrestatement of revisions ··································································································· 4

3. Quarterly consolidated financial statements ······················································ 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 ··························································· 7
Quarterly consolidated statements of comprehensive income································ 8(3) Quarterly consolidated statements of cash flows······················································ 9(4) Note on assumptions for going concern··································································· 11(5) Segment information, etc. ·························································································· 11(6) Significant changes in shareholders’ equity ···························································· 12

11. Qualitative information on the consolidated results for the current quarter(1) Qualitative information on the consolidated financial results
During the first six months of the fiscal year, although business was driven by domestic demand,
aided in part by restoration demand, the future outlook has become more uncertain due to apersistently strong yen and clear economic slowdowns in emerging countries, in addition toEurope.
The printing industry continued to face a tough business environment as a result of weak
demand and decline in order prices due to stiffer competition.
In this environment, the DNP Group (DNP) sought to aggressively develop its business anddeliver products, services, and solutions tailored to the needs of its customers, based on its P&I
Solutions business vision (P&I stands for “printing technology” and “information technology”).
DNP also worked to secure earnings through the pursuit of "Production 21" Activities intended
to establish a robust production structure in all facets of production, including quality, cost, anddelivery time.
Additionally, DNP pursued the reorganization of domestic and overseas business structuresfrom the standpoint of overall optimization and actively worked to expand business from global
and social perspectives.
In the Information Communication segment, DNP worked to develop new services andbusinesses in response to greater diversity in consumer values and the advance of
globalization and information communication technology. In August, DNP formed a businessalliance with Nihon Unisys, Ltd. to expand cloud computing and platform service businesses. In
October, DNP integrated the three business divisions responsible for commercial printing,smart cards, and security solutions to establish a structure capable of creating comprehensive
solutions. It also bolstered strategic planning and service development capabilities for the“honto” hybrid general bookstore business.
In the Lifestyle and Industrial Supplies segment, DNP is moving to expand production
facilities in the fast-growing Southeast Asian market in the Packaging business. Initiatives
include starting construction of a plant in Vietnam in July with the aim of launching operations in
April 2013 and expanding production facilities at the Indonesian plant. Concerning the
production structure in Japan, the company reorganized the nationwide production divisions in
the Packaging business and integrated these divisions into one company in October in an effort
to raise production efficiency further and bolster competitiveness.
In the Electronics segment, DNP has worked to enhance production efficiency and improve
profitability. Initiatives include transferring the Sakai plant color filter business to Sakai Display
Products Corporation through a simplified absorption-type company split in August andintegrating the display components division and electronics devices division.
Despite these efforts, consolidated net sales for the first six months fell 4.5% year on year to¥720.6 billion, consolidated operating income fell 29.5% to ¥11.6 billion, consolidated ordinary
income fell 26.0% to ¥14.6 billion, and net income fell 95.3% to ¥300 million.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Books and Magazines business, the publications market continued to slump, andalthough magazine sales decreased, book sales increased on a contribution from an expansionof integrated production lines, and overall sales rose above year-ago levels.
In the Commercial Printing business, sales increased year on year on growth for catalogs,
POP, and other products due to aggressive sales activities.
In the Business Forms business, smart card sales were strong, including SIM cards andelectronic money, but overall sales were on par with a year earlier due to a decline for
information processing services (ranging from data entry to printing and shipment of personal2

mail and other items).
In the Education and Publications Distribution business, amid continued tough conditions in
the bookstore market, sales were on par with a year earlier as a result of stepping up sales
promotion activities, including in-store promotions.
As a result of the above, overall segment sales grew 0.4% year on year to ¥348.8 billion andoperating income increased 61.1% to ¥7.3 billion.
Lifestyle and Industrial Supplies
In the Packaging business, despite declines for paper containers and flexible packaging,overall sales increased year on year on growth for PET bottle aseptic filling systems.
In the Lifestyle Materials business, sales remained favorable on growth for eco-friendly
products that use DNP’s proprietary Electron Beam coating technology.
In the Industrial Supplies business, despite growth for energy-related products, including
lithium ion rechargeable battery soft packages and photovoltaic module components, overallsales decreased year on year on a decline for anti-reflection films used in flat-panel displays.
As a result of the above, overall segment sales rose 0.3% year on year to ¥264.1 billion andoperating income fell 27.4% to ¥12.0 billion.
Electronics
In the LCD Color Filter business, sales of small- and medium-sized filters for smart phones andtablets were strong, but overall sales decreased year on year on a decline for large filters
caused by sluggish global sales of LCD TVs and the transfer of the Sakai plant color filter
business in August.
In the Electronic Devices business, amid continued tough conditions in the semiconductor
market, sales increased for module products, but decreased for photomasks, and overall sales
fell below year-ago levels.
As a result of the above, overall segment sales fell 25.5% year on year to ¥91.2 billion andoperating losses totaled ¥3.4 billion, versus losses of ¥70 million during the same period lastyear.

[BEVERAGES]
Beverages
Amid tough market conditions characterized by weak consumer spending and stiffer sales
competition, DNP worked to expand sales of Coca-Cola and Georgia, both core products, and I
LOHAS, a brand of mineral water that uses “ecoru Bottle Shiboru,” Japan’s lightest bottle.
As a result of the above, tea beverages and mineral waters increased, but carbonatedbeverages decreased. Overall segment sales fell 2.5% year on year to ¥26.1 billion andoperating losses totaled ¥200 million, versus profit of ¥400 million during the same period lastyear.
(2) Qualitative information on the consolidated financial position
Total assets at the end of the second quarter decreased by ¥62.5 billion from the end of theprevious fiscal year to ¥1,546.2 billion, due mainly to a decrease in cash and time deposits.
Total liabilities decreased by ¥53.1 billion from the end of the previous fiscal year to ¥641.4
billion, due mainly to a decline in notes and trade payable.
Net assets decreased by ¥9.3 billion from the end of the previous fiscal year to ¥904.8 billion,
due mainly to a decline in retained earnings.
As a result of the above, the equity ratio rose from 54.2% at the end of the previous fiscal
year to 55.7%
Consolidated cash flow provided by operating activities during the first six months totaled ¥44.9
billion, due mainly to ¥4.4 billion in income before income taxes and minority interests and3¥40.3 billion in depreciation.
Cash flow used in investing activities totaled ¥56.8 billion, due mainly to ¥42.9 billion in
payments for purchases of property, plant and equipment and ¥13.8 billion in payments forpurchases of investment securities. Cash flow used in financing activities totaled ¥21.3 billion,
due mainly to a ¥4.0 billion decrease in short-term bank loans and ¥10.6 billion in dividends
paid.
As a result, cash and cash equivalents at the end of the second quarter totaled ¥183.5 billion,a decrease of ¥32.7 billion from the end of the previous fiscal year.
(3) Qualitative information on the consolidated earnings forecasts
DNP revised its earnings forecasts for the year ending March	
 31, 2013, originally published on
May 14, 2012. For details, see the press released titled, “Revision of Consolidated Earnings
Forecasts for the Fiscal Year Ending March 31, 2013,” published on November 8, 2012.
2. Summary information (Notes)
Changes in accounting policies, changes in accounting estimates, and restatement of revisions(Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates)
In line with revisions of the Corporation Tax Act, Dai Nippon Printing Co., Ltd. and domestic
consolidated subsidiaries changed to a depreciation method based on the revised act for
property, plant and equipment acquired on or after April 1, 2012 starting in the first quarter ofthis fiscal year.
This change has an immaterial impact on earnings.

4

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2012

As of September 30, 2012ASSETS
Current assets
Cash and time deposits
Notes and trade receivable
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
Deferred assets
TOTAL ASSETS

5

217,518
385,101
91,91239,356
19,85032,920(3,703)782,956

185,201
366,379
91,35033,687
20,32728,132(3,386)
721,692

213,514
144,326
142,149
35,41044,165579,566

194,467
127,956
142,01443,704
39,594
547,736

38,00538,00536,30436,304

136,70376,718(6,034)
207,387
824,959889
1,608,806

161,656
85,824(6,949)240,532
824,573–
1,546,265

(Million yen)
As of March 31, 2012

As of September 30, 2012

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

276,353
51,809254,127
48,445Reserve for bonuses

15,01915,291Other

99,996

134,954

Total current liabilities

443,179

452,819

Bonds

153,060

102,730

Long-term debt

19,147

17,085

Provision for retirement benefits

33,22929,590Other45,976

39,178

Total long-term liabilities

251,413

188,584

694,593

641,403

Common stock

114,464

114,464

Capital surplus

144,898

144,898

Retained earnings

723,459

713,554

Treasury stock(94,172)(94,211)

Total stockholders’ equity

888,649

878,706

4,370

3,201

(14)

0

(21,775)(21,332)(17,420)(18,130)

16

16

Minority interests

42,96744,269TOTAL NET ASSETS

914,213904,862

1,608,806

1,546,265

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights

TOTAL LIABILITIES AND NET ASSETS

6

(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First six months of the fiscal years(Million yen)Six months ended
September 30, 2011
754,921Six months ended
September 30, 2012
720,684

Cost of sales

623,712596,330

Gross profit

131,208

124,353

Selling, general and administrative expenses

114,726

112,738

Operating income

16,481

11,614

2,365
261
5,041
7,668

2,395
2,536
3,410
8,341

1,705
2,614
4,320

1,736
3,546
5,282

19,82914,673

60
65
57
–
183

114
115
–
5
235

2,081
1,120
860
4,062
15,951
8,263(1,217)
7,045
8,905
483
8,422

2,173
5,931
2,373
10,4774,431
7,477(3,331)
4,146
285
(111)
396

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
Gain on revision of retirement benefit plan
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 minority interests
Current income taxes
Deferred income taxes
Income and other taxes
Income before minority interests
Minority interests in income (loss)
Net income

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

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority
interests

8

Six months ended
September 30, 2011

Six months ended
September 30, 2012

8,905

285

(3,835)(1,315)

21
255

15
223

9

1

(3,549)5,356(1,075)
(790)

4,842

(313)

513

(477)

(3) Quarterly consolidated statements of cash flows(Million yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (Decrease) of doubtful receivables, net
Decrease of provision for retirement benefits, net
Equity in gains of affiliates
Amortization of consolidation goodwill, net
Interest and dividend income
Interest expense
Net gains on sales of investment securities
Net losses on devaluation of investment securities
Net losses on sales or disposal of fixed assets
Decrease in trade receivables(Increase) Decrease in inventories
Increase (Decrease) in trade payables
Other
Sub-total
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease in time deposits
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant andequipment
Payments for purchases of investment securities
Proceeds from sales of investment securities
Proceeds from transfer of business
Interest and dividends received
Other
Net cash used in investing activities

9

Six months ended
September 30, 2011

Six months ended
September 30, 2012

15,951
46,562(1,297)(2,699)(261)
1,681(2,365)
1,705
(64)
1,120
2,037
23,951(9,177)
1,094(1,964)76,274

4,431
40,363604(3,281)(2,536)
1,591(2,395)
1,736
(115)
5,931
2,070
18,297
4,515(23,071)
5,416
53,558–(9,535)66,739(1,380)(7,178)44,999805(409)(34,729)(42,968)

808

1,719

(968)
89
–
2,892
(7,327)(38,430)(13,890)
239
8,091
2,803
(12,430)(56,845)(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Proceeds from stock issuance to minority
shareholders
Payments for purchases of treasury stock
Purchase of treasury stock of subsidiaries in
consolidation
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Net increase (decrease) in cash and cash
equivalents resulting from change of scope of
consolidation
Cash and cash equivalents at end of period10

Six months ended
September 30, 2011

Six months ended
September 30, 2012

(7,886)
4,170(3,503)(1,323)(4,007)
1,200(3,074)
(330)

–

1,882

(47)

(16)

–

(0)

(1,586)(10,313)(345)(4,243)(25,078)(1,745)(10,310)(317)(4,592)(21,311)

219

456

3,450

(32,701)

222,056

216,279295(25)

225,802

183,552

(4) Note on assumptions for going concern
None(5) Segment information, etc.
I. First six months of previous fiscal year (April 1, 2011 – September 30, 2011)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

345,068

260,658

122,371

Beverages

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

26,822754,921–754,921

Inter-segment

2,525

2,826

0

1

5,353

(5,353)–

Total

347,594

263,485

122,371

26,823760,274(5,353)754,921

Segment income (loss)

4,564

16,560(75)

402

21,452(4,971)

16,481

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 consolidated
statements of income.

II. First six months of current fiscal year (April 1, 2012 – September 30, 2012)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

346,103257,210

91,223

Beverages

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

26,146

720,684–

720,684

Inter-segment

2,764

6,964

0

0

9,730

(9,730)–

Total

348,867

264,174

91,224

26,147730,414(9,730)720,684

Segment income (loss)

7,354

12,026(3,442)(294)

15,644(4,029)(11,614)

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 consolidated
statements of income.

11

(6) Significant changes in shareholders’ equityNone12