Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2016
[J-GAAP]
November 10, 2015

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:November 11, 2015
Dividend payment date:
December 10, 2015
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, 2015
(April 1, 2015 – September 30, 2015)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales
Million yen%

Million yen%

Million yen%

Million yen%

Six months ended
722,933
1.0
20,235(9.7)
24,993(1.2)
18,541
22.3
September 30, 2015
Six months ended
715,734
0.9
22,411(6.6)
25,309(6.3)
15,154
1.9
September 30, 2014
Note: Comprehensive income: For the first six months ended September 30, 2015: ¥1,942 million (-90.2%)
For the first six months ended September 30, 2014: ¥19,869 million (-49.9%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2015
Six months ended
September 30, 2014

Yen

Yen

29.15

28.97

23.54

23.32

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2015

1,751,476

1,095,169

59.9

As of March 31, 2015

1,809,462

1,124,093

59.6

Note: Stockholders’ equity: As of September 30, 2015: ¥1,049,277 million

As of March 31, 2015: ¥1,078,828 million

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

SecondQuarter-end

Third
Quarter-end

Year-end

Year ended
–
16.00
–
16.00
March 31, 2015
Year ending–
16.00
March 31, 2016
Year ending March 31, 2016–
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, 2016
(April 1, 2015 – March 31, 2016)(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

1,510,000
3.3
52,0007.9
55,0002.3
30,00011.4
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

47.42

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the first six months (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:
No4) 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 September 30,
2015

680,480,693
shares

As of March 31, 2015

700,480,693
shares

As of September 30,
2015

51,898,384
shares

As of March 31, 2015

56,647,614
sharesSix months ended
September 30, 2015

636,041,735
sharesSix months ended
September 30, 2014

643,884,365
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 “1. Qualitative information on the consolidated results for the current quarter, (3) Explanation of theconsolidated 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 ..................................................................... 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 six months of the fiscal years ........................................................................... 7
Quarterly consolidated statements of comprehensive income
First six months of the fiscal years ........................................................................... 8(3) Quarterly consolidated statements of cash flows ....................................................... 9(4) Notes regarding quarterly consolidated financial statements ................................. 11[Notes on premise of a going concern] ...................................................................... 11[Significant changes in shareholders’ equity] ........................................................... 11[Segment information, etc.] ......................................................................................... 111

1. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
Japan’s economy gradually recovered during the first six months of the fiscal year, aided by the
economic and monetary policies of the Japanese government and Bank of Japan. However, theeconomy has still not reached a full-fledge recovery, due partly to sluggish consumer spending
and overseas economic slowdowns, including in China.
The printing industry continued to face a tough business environment, due partly to a decline
in order prices on account of weak printing demand and stiffer competition, and higher prices forimported raw materials due to a weaker yen.
In this environment, the DNP Group (DNP) reviewed its group vision as its basic
management policy and prepared the DNP Group Vision 2015, which defines its corporate
philosophy as: “The DNP Group connects individuals and society, and provides new value.” Aspart of this vision, DNP establishes the four growth areas of “Knowledge and Communication,”“Food and Healthcare,” “Lifestyle and Mobility,” and “Environment and Energy,” and the entire
group is working to expand its business by creating new value.
As a result of these efforts, consolidated net sales for the first six months grew 1.0% year on
year to ¥722.9 billion, consolidated operating income fell 9.7% to ¥20.2 billion, consolidated
ordinary income fell 1.2% to ¥24.9 billion, and net income attributable to parent company
shareholders grew 22.3% to ¥18.5 billion.
Business segment results are presented below.
DNP changed its reportable business segments effective from the first quarter of the current
fiscal year, and comparison and analysis of the first six-month performance are based on the
new reportable business segments.
[PRINTING]
Information Communication
In the Books and Magazines business, DNP aggressively pursued planning proposals andsales activities, but the publication market continued to slump and sales of books andmagazines both decreased year on year.
In the Commercial Printing business, flyers, pamphlets, and other printed materials weresluggish, but sales increased from last year for point-of-purchase promotional materials (POP)and other sales promotion-related tools and for business process outsourcing (BPO), whichhandles customer center operations and other outsourced services.
In the Business Forms business, sales of ledger books and smart cards decreased from lastyear, but overall sales increased year on year on steady sales for Information Processing
Services (IPS; handling data entry, printing and shipment of personalized mail and other items).
In the Imaging Communication business, sales rose sharply from the previous year due tostrong sales in North American and European markets for dye-sublimation thermal transfer
printing media (color ink ribbons and receiver paper) used for photo printers, and to growth inSoutheast Asian markets. Additionally, DNP launched the DNP Imaging Mall service as a
web-based platform to deliver the capabilities needed for image content printing services.
In the Education and Publications Distribution business, sales increased year on year thanks
to business expansion in the “honto” hybrid bookstore network that combines physicalbookstores, online bookstores and e-book sales services, and in the library operations
outsourcing business in tandem with regional revitalization initiatives.
As a result of the above, overall segment sales grew 4.0% year on year to ¥400.7 billion andoperating income grew 16.0% to ¥11.3 billion.
Lifestyle and Industrial Supplies
In the Packaging business, plastic film packaging was firm and sales increased for paper cups
and molded plastic goods, but overall sales decreased year on year on declines for paper
packaging and PET plastic bottle aseptic filling systems.
In the Lifestyle Materials business, DNP focused on developing overseas markets and salesof environmentally conscious products and other products that use its proprietary Electron
Beam coating technology. However, sales decreased year on year, affected by a slow recovery
from a reactionary pullback after the consumption tax hike.

2

In the Industrial Supplies business, sales increased year on year for both photovoltaic
module components and lithium-ion battery components.
As a result of the above, overall segment sales grew 0.3% year on year to ¥189.7 billion andoperating income fell 19.6% to ¥5.0 billion.
Electronics
In the LCD Color Filter business, sales decreased year on year on declines for both small- andmedium-sized filters for smartphones and tablets and large filters for TVs.
Semiconductor photomask sales decreased from last year, despite acquiring firm overseas
demand, as a result of sluggish sales in Japan.
In the Optical Films business, sales decreased year on year on declines for both films usedin LCD polarizing plates and films used in other applications.
As a result of the above, overall segment sales fell 7.6% year on year to ¥107.6 billion andoperating income fell 4.7% to ¥12.3 billion.
[BEVERAGES]
Beverages
The soft drink industry continued to face a tough market environment, due partly to pricecompetition among manufacturers. However, DNP reorganized its sales division to enhance
professionalism and ability to respond to regional characteristics, and sought to expand market
share through the release of new products. It also worked to expand sales by strengthening
online delivery services and focusing on new customer acquisition.
As a result of the above, sales increased for tea and I LOHAS, a brand of mineral water thatuses a lightweight PET plastic bottle. Overall segment sales grew 1.0% year on year to ¥27.7
billion and operating income grew 402.6% to ¥0.2 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter decreased by ¥57.9 billion from the end of theprevious fiscal year to ¥1,751.4 billion, due mainly to a decrease for cash and time deposits.
Total liabilities decreased by ¥29.0 billion from the end of the previous fiscal year to ¥656.3
billion, due mainly to a decrease in short-term bank loans.
Net assets decreased by ¥28.9 billion from the end of the previous fiscal year to ¥1,095.1
billion, due mainly to a decrease in retained earnings.
As a result of the above, the equity ratio rose from 59.6% at the end of the previous fiscal
year to 59.9%.
Consolidated cash flow provided by operating activities during the first six months totaled ¥38.7
billion, due mainly to ¥27.9 billion in income before income taxes and non-controlling interestsand ¥31.1 billion in depreciation.
Cash flow used in investing activities totaled ¥38.0 billion, due mainly to ¥28.1 billion in
payments for purchases of property, plant and equipment. Cash flow used in financing activities
totaled ¥47.5 billion, due mainly to a ¥12.3 billion decrease in debt, ¥20.0 billion for paymentsfor purchases of treasury stock, and ¥10.6 billion in dividends paid.
As a result, cash and cash equivalents at the end of the second quarter totaled ¥166.0 billion,a decrease of ¥46.7 billion from the end of the previous fiscal year.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2016 are unchanged from the forecasts
announced on May 14, 2015.

3

2. Summary information (notes)
Changes in accounting policies, changes in accounting estimates, and restatement ofrevisions(Changes in accounting policies)
Starting in the first quarter of the current fiscal year, DNP is applying the “Accounting Standard
for Business Combinations” (ASBJ Statement No. 21, September 13, 2013), the “AccountingStandard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13,2013), the “Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September
13, 2013), and other accounting standards. As a result, DNP now records any differences
resulting from changes in its ownership interests in subsidiaries subject to ongoing control undercapital surplus, and records acquisition-related costs as expenses in the fiscal year in which
they are incurred. Furthermore, for business combinations carried out on or after the beginningof the first quarter of the current fiscal year, DNP now reflects the updated acquisition costallocation based on finalization of the provisional accounting treatment in the quarterly
consolidated financial statements for the fiscal quarter in which the business combination
occurs. In addition, DNP has made changes in the presentation of quarterly net income andother items and has changed from presenting minority interests to presenting non-controllinginterests. To reflect these changes in presentation, DNP has restated the quarterly consolidated
financial statements and full-year consolidated financial statements for the first six months of theprevious fiscal year and for the full previous fiscal year.
In the quarterly consolidated statements of cash flows for the first six months of the current
fiscal year, DNP lists cash flows related to the purchase or sale of stock in subsidiaries not
resulting in a change in the scope of consolidation in the category of cash flows from financing
activities, and cash flows related to acquisition-related costs for stock in subsidiaries resulting ina change in the scope of consolidation or expenses arising in relation to the purchase or sale ofstock in subsidiaries not resulting in a change in the scope of consolidation in the category ofcash flows from operating activities.
DNP is applying the Accounting Standard for Business Combinations and other accounting
standards in line with transitional measures stipulated in Paragraph 58-2 (4) of the AccountingStandard for Business Combinations, Paragraph 44-5 (4) of the Accounting Standard forConsolidated Financial Statements, and Paragraph 57-4 (4) of the Accounting Standard forBusiness Divestitures, and this application is effective from the start of the first quarter of thecurrent fiscal year and into the future.
DNP is not reclassifying comparable information in the quarterly consolidated statements ofcash flows, in line with transitional measures stipulated in Paragraph 26-4 of the Practical
Guidelines on Accounting Standards for Preparing Consolidated Statements of Cash Flows.
These changes have an immaterial impact on the quarterly financial statements for the firstsix months of the current fiscal year.

43. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2015

As of September 30, 2015

ASSETS
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
TOTAL ASSETS

5210,979
366,068
97,231
28,27822,39538,990(822)
763,122

165,531
348,569
98,35232,09526,55735,077(1,147)705,037

184,639
98,913
154,093
41,45733,686
512,790

206,179
94,420155,583
26,06934,581
516,834

30,58330,583

37,112
37,112

397,116
114,364(8,514)502,966
1,046,340
1,809,462

383,176
117,417(8,101)
492,491
1,046,438
1,751,476

(Million yen)
As of March 31, 2015

As of September 30, 2015

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

258,887
53,370254,776
42,898Reserve for bonuses

17,42817,308

Other

105,717

97,186

Total current liabilities

435,404

412,170

Bonds

103,750

103,395

Long-term debt

20,585

19,435Net defined benefit liability

32,34833,635

Deferred tax liabilities

65,86060,269Other

27,41927,400Total long-term liabilities

249,964

244,136

685,368

656,306

Common stock

114,464

114,464

Capital surplus

144,898

144,274Retained earnings

737,241

712,049

Treasury stock(94,386)(81,000)

Total stockholders’ equity

902,217889,788

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

147,914133,231(0)6Foreign currency translation adjustments

7,247

8,011

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income21,44918,238

176,610

159,488

Stock acquisition rights

16

16

Non-controlling interests

45,24845,875TOTAL NET ASSETS

1,124,093

1,095,169

TOTAL LIABILITIES AND NET ASSETS

1,809,462

1,751,476

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity6(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, 2014
715,734

Six months ended
September 30, 2015
722,933

Cost of sales

578,890583,968

Gross profit

136,843

138,964

Selling, general and administrative expenses

114,432

118,728

Operating income

22,411

20,235

2,824
721
2,956
6,503

3,654
1,885
2,802
8,342

1,193
2,410
3,604

1,243
2,339
3,583

25,30924,993

206
3,946
1
4,154

93
6,400
83
6,577

943
4,342
–
740
6,026

785
–
2,434
383
3,603

23,437

27,967

6,742
879
7,622
15,815

5,524
3,185
8,709
19,257661

716

15,154

18,541

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
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on business integration
Production restructuring 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

7

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

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains 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

Six months ended
September 30, 2014

Six months ended
September 30, 2015

15,815

19,257

6,506(14,741)

6(2,075)(1,443)36(621)(4,149)

1,060

2,160

4,053
19,869(17,315)
1,942

19,474
395

1,418
523

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

Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Increase of doubtful receivables, net
Increase of net defined benefit asset
Increase (Decrease) of net defined benefit liability
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
Net decrease in trade receivables
Increase 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 decrease (increase) 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
Payments from purchase of stock in subsidiaries
resulting in change in scope of consolidation
Payments for purchase of intangible fixed assets
Interest and dividends received
Other
Net cash used in investing activities

9

Six months ended
September 30, 2014

Six months ended
September 30, 2015

23,437

27,96732,882275(7,115)
(121)
(721)
1,057
(2,824)
1,193(3,910)
35
757
2,134
(10,106)
3,101
15,67155,745(153)(7,337)48,254

31,13613(10,309)201(1,885)794(3,654)
1,243(6,376)69719
18,321(9,772)(4,146)74
44,398(16)(5,639)38,742387(1,249)(26,450)(28,196)

2,976

1,283

(1,605)
6,863(5,319)
7,601

(248)

(8,981)(4,079)3,250(2,314)(21,219)(4,240)4,050(2,980)(38,031)(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Payments for purchase of stock in subsidiaries not
resulting in change in scope of consolidation
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling shareholders
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
Increase in cash and cash equivalents resulting fromchange of scope of consolidation
Decrease in cash and cash equivalents resulting
from the merger of consolidated subsidiaries
Cash and cash equivalents at end of period10

Six months ended
September 30, 2014

Six months ended
September 30, 2015

(5,873)
3,652(6,059)
1,963
(425)

(10,419)
21,930(23,859)
–
(525)

–

(151)

(27)

(20,036)(0)(0)(1,190)(10,311)(276)(3,339)(21,887)(1,251)(10,313)(366)(2,596)(47,589)(1,114)

151

4,033

(46,727)

199,813

212,76264–(1,274)–

202,636

166,035

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥20,036 million during the first six months of the current fiscal year,
due mainly to share repurchases based on a resolution passed by the Board of Directors on
May 14, 2015.
Additionally, retained earnings decreased by ¥33,422 million and treasury stock decreasedby ¥33,422 million during the first six months of the current fiscal year due to the cancellation oftreasury stock on May 28, 2015 based on a resolution passed by the Board of Directors on May
14, 2015.
[Segment information, etc.]
I. First six months of previous fiscal year (April 1, 2014 – September 30, 2014)
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

382,953

188,836

116,51327,430715,734–

715,734

Inter-segment

2,281

407

7

2

2,698

(2,698)–

Total

385,235

189,243

116,520

27,433

718,432(2,698)715,734

Segment income

9,820

6,292

12,94853

29,115(6,703)

22,411

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.

II. First six months of current fiscal year (April 1, 2015 – September 30, 2015)
1. Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

398,212

189,341

107,688

Beverages

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

27,690722,933–

722,933

Inter-segment

2,525

381

6

18

2,930

(2,930)–Total

400,738

189,722

107,694

27,709725,863(2,930)722,933

Segment income

11,392

5,059

12,343266

29,062(8,826)

20,235

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.

11

2. Changes in reportable business segments, etc.
DNP changed its reportable business segments effective from the first quarter of the current
fiscal year.
DNP transferred the Imaging Communication business (includes photo printing) from theLifestyle and Industrial Supplies segment to the Information Communication segment in April
2015.
Segment information for the first six months of the previous fiscal year has been preparedbased on the new reportable business segments.

12