Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2021 [J-GAAP]
August 5, 2020

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
Telephone:+81-3-6735-0124
Securities report issuing date:August 5, 2020
Dividend payment date:–Preparation of quarterly earnings presentation material: Yes
Holding of quarterly results briefing:Yes(for institutional investors and analysts)(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first three months ended June 30, 2020
(April 1, 2020 – June 30, 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

Three months ended
June 30, 2020Three months ended
June 30, 2019

Million yen%

Million yen%

Million yen%

Million yen%

323,551

(6.1)

9,648

(30.2)

13,585(20.3)

7,401(58.9)

344,575

0.5

13,823

15.6

17,04012.1

18,015

77.7

Note: Comprehensive income: For the first three months ended June 30, 2020: ¥34,089 million (+11.0%)
For the first three months ended June 30, 2019: ¥30,720 million (+5.7%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2020Three months ended
June 30, 2019

Yen

Yen

26.35

26.21

59.69

59.68

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2020

1,720,989

993,484

54.7

As of March 31, 2020

1,721,724

968,57453.2

Note: Stockholders’ equity as of June 30, 2020: ¥941,498 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

–

Year-end

32.00

Total

64.00

–

Year ending March 31, 2021
32.00
–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the first quarter: Yes

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 first quarter: Yes

74.76

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the first 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 June 30, 2020

324,240,346
shares

As of March 31, 2020

324,240,346
shares

As of June 30, 2020

43,359,688
shares

As of March 31, 2020

43,359,344
sharesThree months ended
June 30, 2020

280,880,852
sharesThree months ended
June 30, 2019

301,819,359
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 first quarter (3) Explanation of the consolidated earnings forecasts,” on page 4.
The DNP Group will hold a results briefing (conference call) for institutional investors and analysts on
August 7, 2020. Materials used at the briefing will be uploaded to the DNP website at around 15:00 JST
the same day.

Contents
1. Qualitative information on the consolidated results for the first 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 and other projections ..............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 three months of the fiscal years........................................................................7
Quarterly consolidated statements of comprehensive income
First three 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 quarter(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group during the first three months of the fiscal year
ending March 2021 remained severe due to the sudden global economic downturn and decline
in demand for various printed materials resulting from government stay-at-home and businesssuspension requests to prevent the spread of the novel coronavirus infection. However, usageof teleworking (working from home) and online shopping became more widespread, expectations
rose for information and communications technology (ICT) in education and online medical
consultations, and a global increase in environmental awareness heightened demand forenvironmentally conscious products and services.
Amid these significant economic, social, and environmental changes, the DNP Group worked
to build a strong business portfolio by optimizing the allocation of management resources andrestructuring to enhance competitiveness, primarily in focus areas such as the Internet of Things(IoT) and next-generation communications and environment-related businesses, based on thetwo criteria of profitability and market growth. The DNP Group also worked to strengthen theinfrastructure needed to support sustainable growth by stepping up its initiatives in areas
including the environment, and human capital and human rights.
As a result of the above, consolidated net sales for the first three months fell 6.1% year on
year to ¥323.5 billion, consolidated operating income fell 30.2% to ¥9.6 billion, consolidated
ordinary income fell 20.3% to ¥13.5 billion, and net income attributable to parent company
shareholders fell 58.9% to ¥7.4 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. BPO services handle business processes on behalf of companies seeking to respond tolabor shortages and work-style reforms. However, overall sales in the Information Innovation
business declined due to the cancellation of events throughout Japan, including the
postponement of the 2020 Tokyo Olympics and Paralympic Games, a reduction in promotional
campaigns and other advertising demand, and a decline in sales of pamphlets, catalogs, andother printed media.
In the Imaging Communication business, sales declined as opportunities to shoot and print
photos in outside locations decreased due to government stay-at-home 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 and school closures drove favorable e-book sales trends in the “honto” hybrid bookstore
network, which combines physical bookstores, online bookstores, and e-book services. However,overall sales in the Publishing business declined as sales in physical book stores fell sharply due
to reduced business hours and closures, and printing of both books and magazines decreased
due to continued contraction of the print publication market.
Operating income in the Information Communication segment decreased due to the decline
in sales.
As a result of the above, overall segment sales fell 9.7% year on year to ¥172.1 billion, andoperating income fell 48.0% to ¥3.5 billion.
Lifestyle and Industrial Supplies
In the Packaging business, demand increased for packaging for pharmaceuticals and sanitarymaterials and for household food items due to the novel coronavirus (COVID-19), but demandfor commercial packaging materials for beverages, souvenirs, and restaurant use declined due
to government stay-at-home requests. As a result, overall sales in the Packaging businessdeclined.
In the Living Spaces business, sales declined as domestic housing construction and2

remodeling work was increasingly delayed or suspended due to the impact of COVID-19.
In the High-Performance Industrial Supplies business, sales rose for battery pouches used in
automotive lithium-ion batteries due to greater uptake of electric vehicles, and for products usedin tablets and smartphones due mainly to an increase in teleworking. As a result, overall sales inthe High-Performance Industrial Supplies business increased.
Operating income in the Lifestyle and Industrial Supplies segment declined due to theconsiderable impact from a decrease in overall segment sales, despite expansion in the HighPerformance Industrial Supplies business and a decline in raw material prices.
As a result of the above, overall segment sales fell 4.3% year on year to ¥90.9 billion, andoperating income fell 6.3% to ¥1.7 billion.
Electronics
In the Display Components business, sales of metal masks used in the production of organic
light-emitting diode (OLED) displays remained stable due to greater uptake of smartphones with
OLED displays, despite the impact of factors such as reduced operating hours at customer firms
due to COVID-19. However, sales of color filters for LCD displays declined due to businessstreamlining in response to a decline in demand. In optical films, sales increased for products
used in OLED displays, and for products used in LCD displays for tablets and monitors due toan increase in household demand driven by teleworking and other factors. As a result, overallsales in the Display Components business increased.
In the Electronic Devices business, semiconductor photomask sales decreased due to
product development delays in the semiconductor market. As a result, sales in the Electronic
Devices business declined.
Overall operating income in the Electronics segment decreased due to the impact of a decline
in Electronic Devices business sales and other factors.
As a result of the above, overall segment sales grew 0.8% year on year to ¥48.4 billion, but
operating income fell 8.6% to ¥9.5 billion.
[BEVERAGES]
Beverages
The DNP Group worked to increase its share in existing markets and acquire new customers
amid a decline in demand from tourist destinations and restaurants due to government stay-athome requests by releasing new products in core brands such as Ayataka Koi Ryokucha, andstepping up sales promotion in the vending machine business and to mass merchandisers.
Overall segment sales rose 5.3% year on year to ¥12.4 billion due to factors such as anincrease in sales of small PET plastic bottle products and the new Lemondo line of alcoholic
beverages, and an increase in sales to bottlers in regions other than Hokkaido. Operating income
also rose 90.3% year on year to ¥31 million due to an increase in sales and rigorous cost
reductions.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥0.7 billion from the end of the previous
fiscal year to ¥1,720.9 billion, due mainly to a decline in cash and deposits.
Total liabilities decreased by ¥25.6 billion from the end of the previous fiscal year to ¥727.5
billion, due mainly to a decline in the reserve for bonuses.
Net assets increased by ¥24.9 billion from the end of the previous fiscal year to ¥993.4 billion,
due mainly to an increase in the valuation difference on available-for-sale securities.

3(3) Explanation of the consolidated earnings forecasts
The DNP Group had opted not to announce forecasts for the fiscal year ending March 2021 dueto the lack of a reasonable basis for assessing COVID-19’s impact on earnings. On theassumption that further social restrictions will not be imposed, the DNP Group has now opted toannounce forecasts due to its judgment that currently available information constitutes a rational
basis for estimating COVID-19’s impact.
The DNP Group had also not announced a dividend forecast for the fiscal year ending March
2021, but in line with the announcement of its earnings forecasts for the fiscal year, it now
forecasts a first-half and second-half dividend of ¥32, resulting in a dividend of ¥64 for the fiscal
year (all figures are unchanged versus the previous fiscal year).
For details on the DNP Group's full-year consolidated earnings and dividend forecasts, see
the “Announcement of Consolidated Earnings and Dividend Forecasts for Fiscal Year Ending
March 2021” published 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 June 30, 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)
884,010

347,431
307,672
18,00084,442
31,98223,804
28,105(1,044)840,395

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

156,333
66,767
141,431
14,14028,266
406,939

22,71622,71623,30723,307

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

342,660
109,936(2,250)450,347
880,594
1,720,989

(Million yen)

As of March 31, 2020

As of June 30, 2020

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

238,066
39,051

229,541
38,585

Bonds redeemable within 1 year

52,49052,430Reserve for bonuses

18,945

7,254

Repair reserve

20,636

20,488

Other

111,461

97,768

Total current liabilities

480,651

446,069

107,120

107,035

Long-term debt

5,977

5,200

Repair reserve

54,66052,632

Net defined benefit liability

35,687

34,819Deferred tax liabilities

42,82156,607

Other

26,23025,141

Total long-term liabilities

272,497

281,436

753,149

727,505

Common stock

114,464

114,464

Capital surplus

145,024

145,024

Retained earnings

676,346674,758

Treasury stock(122,911)(122,912)

Total stockholders’ equity

812,923

811,335

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

110,051

140,52555Foreign currency translation adjustments(3,448)(6,229)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income(3,751)(4,139)102,856

130,162

Non-controlling interests

52,794

51,986TOTAL NET ASSETS

968,574

993,484

1,721,724

1,720,989

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 three months of the fiscal years(Million yen)Three months ended
June 30, 2019344,575

Three months ended
June 30, 2020
323,551

Cost of sales

272,062

257,290

Gross profit

72,512

66,260

Selling, general and administrative expenses

58,68956,612

Operating income

13,823

9,648

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

2,632
1,437
1,130
5,200

2,278
1,728
1,356
5,363

497
1,485
1,983

369
1,057
1,426

Ordinary income

17,04013,585

9,368
3
27
9,399

5
15
–
20

533
304
7
845

389
688
329
1,407

25,594

12,198

3,392
2,818
6,210
19,383

2,180
2,191
4,371
7,826

1,367

425

18,015

7,401

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
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 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

8

Three months ended
June 30, 2019

Three months ended
June 30, 2020

19,383

7,826

11,08930,765

6
369
(246)

(1)
(3,718)383

118(1,166)

11,33730,72026,262
34,08929,176
1,543

34,707(617)

(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 three months of previous fiscal year (April 1, 2019 – June 30, 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 ofincomeNote 2

Net sales
Outside customers

189,877

94,83248,085

11,780344,575–

344,575

Inter-segment

772

296

–

3

1,072

(1,072)–

Total

190,650

95,12848,085

11,783345,647(1,072)

344,575

6,845

1,828

10,48616

19,176(5,353)

13,823

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 three months of current fiscal year (April 1, 2020 – June 30, 2020)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

171,734

90,942

48,468Beverages

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

Net sales
Outside customers

12,406

323,551–

323,551

Inter-segment

459

51

–

5

516

(516)

–

Total

172,194

90,994

48,46812,411

324,067(516)

323,551

3,561

1,713

9,582

31

14,889(5,240)9,648

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