Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2024 [J-GAAP]
August 8, 2023

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

Dai Nippon Printing Co., Ltd.
Tokyo
7912
URL: https://www.dnp.co.jp/eng/
Yoshinari Kitajima, President
Naoki Wakabayashi,
General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:August 8, 2023
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 three months ended June 30, 2023
(April 1, 2023 – June 30, 2023)(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, 2023
Three months ended
June 30, 2022

Million yen%

Million yen%

Million yen%

Million yen%

345,098

3.2

13,282(21.5)

19,385(14.3)

58,056268.8

334,433

0.8

16,917

2.5

22,62813.5

15,7395.8

Note: Comprehensive income: For the first three months ended June 30, 2023: ¥34,595 million (-%)
For the first three months ended June 30, 2022: ¥(16,975) million (-%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2023
Three months ended
June 30, 2022

Yen

Yen

225.12225.11

58.58

58.56

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2023

1,851,620

1,157,808

58.7

As of March 31, 2023

1,830,384

1,148,245

59.4

Note: Stockholders’ equity as of June 30, 2023: ¥1,087,680 million

As of March 31, 2023: ¥1,087,504 million

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

Year ended
March 31, 2023
Year ending
March 31, 2024

SecondQuarter-end

Third
Quarter-end

32.00

–

–

Year-end

Total

32.00

64.00

–

Year ending March 31, 2024
32.00
–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the first quarter: No

64.00

3. Consolidated earnings forecasts for the year ending March 31, 2024
(April 1, 2023 – March 31, 2024)(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

Full year

Million yen%

Million yen%

Million yen%

Million yen%

Yen

1,410,000

2.7

67,0009.4

78,000(6.8)

88,0002.7

343.79Note: Revisions to the most recently announced earnings forecasts during the first quarter: No
At a meeting of the Board of Directors held on March 9, 2023, the Company resolved to repurchase its own shares.
In the calculation of "net income per share" in the consolidated earnings forecast, the impact of the share repurchaseafter July 1, 2023 based on this resolution is not taken into account.

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, 2023

292,240,346
shares

As of March 31, 2023

292,240,346
shares

As of June 30, 2023

37,121,138
shares

As of March 31, 2023

30,724,570
sharesThree months ended
June 30, 2023

257,887,269
sharesThree months ended
June 30, 2022

268,675,013
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 and other projections,” on page 4.

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 ......................................................4(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] ...................................................................................................9- 1 -1. Qualitative information on the consolidated results for the first quarter(1) Explanation of the consolidated financial results
The environment surrounding the DNP Group during the first three months of the fiscal year
ending March 31, 2024 showed signs of gradual economic recovery, thanks partly to increased
personal consumption and inbound tourism-related demand reflecting the reclassification, in May
2023, of the novel coronavirus (COVID-19) to the less threatening category 5 under Japan’s
Infectious Diseases Control Law. At the same time, the future remains difficult to predict, largely
because prolonged geopolitical risks, instability in global supply chains, and other challenges
continue to cause worldwide increases in energy and food prices as well as monetary tightening
in Europe and the United States.
Amid these kinds of rapid, global-scale changes in the environment, society, and economies,
the DNP Group is pursuing business activities aimed at realizing its own ideas for a better future,by combining DNP’s unique strengths while increasing collaboration with diverse external
partners. In May 2023, DNP unveiled a new Medium-Term Management Plan that was conceived
from a long-term perspective and aims to realize a sustainable society based on our corporate
philosophy of “connecting individuals and society, and providing new value.” This new plan is
aimed at achieving long-term growth by promoting financial and non-financial strategies thatbuild the management capital that supports our business activities, while implementing concretemeasures, centered around business strategies, that continuously create value.
In terms of business strategies, we will build a robust business portfolio over the medium tolong term, and accelerate value creation primarily in focus business areas that pertain to three
new business segments as of the fiscal year through March 2024. Regarding financial strategies,
we will appropriately allocate the cash flow that we generate toward further business growth andshareholder returns. In terms of non-financial strategies, we will strengthen the business basethat supports our long-term growth, mainly through three measures: enhancing human capital,enhancing intellectual capital, and addressing environmental concerns.
As a result of the above, consolidated net sales for the first three months grew 3.2% year on
year to ¥345.0 billion, consolidated operating income fell 21.5% to ¥13.2 billion, consolidated
ordinary income fell 14.3% to ¥19.3 billion, and net income attributable to parent company
shareholders grew 268.8% to ¥58.0 billion due mainly to the recording of extraordinary gains on
the sale of investment securities.
In order to clarify the business domains and strategies of each of our business segments, andin order to accelerate the execution of concrete measures, as of the first quarter of the fiscal year
through March 2024, we changed the name of the Information Communication segment to Smart
Communication, and we renamed the Lifestyle and Industrial Supplies segment to Life &Healthcare. At the same time, in order to contribute even further to comfortable lives for people,
we transferred our Beverages business to Life & Healthcare, to which it is closely related.
Comparisons and analyses pertaining to the first quarter of the fiscal year through March 2024
are based on the new segment classification.
Smart Communication
In Imaging Communications, photographing and printing materials performed well in theEuropean and Asian markets, and photo shooting services sold well in the U.S. market.
Regarding information security, in addition to large-scale business process outsourcing (BPO)
projects, sales of dual-interface cards that feature both contact and contactless standards on a- 2 -single IC chip stood out among smart cards for their strong performance, and helped boost thebottom line.
In marketing, we managed to maintain the same level as the previous year by responding to
the shrinking market for paper media and striving to provide value that results from combining
the track record and knowledge of marketing measures that we cultivated over the course ofmany years with our strength in digital technologies.
Our Publishing business enjoyed steady sales of digital library services and librarymanagement services in addition to solid results from the distribution of e-books and otherelectronic media. However, printing orders decreased due to the contraction of the market formagazines and other paper media, resulting in an overall year-on-year decline in Publishingsales.
Concerning Content and XR (extended reality) communication, DNP has started providing a
package of services that uses a “metaverse,” or an online virtual space, to support the resolutionof issues faced by local governments.
As a result of the above, overall segment sales grew 3.7% year on year to ¥180.0 billion, andoperating income grew 4.2% to ¥4.9 billion due to the positive impact of increased information
security-related sales and activities to improve operational efficiency, despite the impact of higher
costs related to raw materials and labor costs, in addition to lower publishing-related sales.
Life & Healthcare
The Mobility and High-Performance Industrial Supplies businesses enjoyed strong sales ofbattery pouches for lithium-ion batteries, for use in both IT devices and automotive applications.
Concerning photovoltaic cell-related products, sales of encapsulants increased due to rising
global demand. In addition, we have started selling, for automotive use, decorative films forexterior use in addition to films for interior use.
Our Packaging business focused on high-value-added products, and made progress towardpassing through price increases for microwaveable pouches and other soft packaging products
as well as paper containers including paper cups. In addition, sales of formed plastic products
increased, contributing to an overall rise in sales relative to the previous year.
In the Living Spaces business, sales of interior and exterior decorative materials for residential
use decreased as the number of new housing starts in Japan decreased. Overseas, too, sales
to the North American market declined due to inflation’s chilling effect on consumption as well as
increased inventories in the housing market, so net sales were lower than a year earlier.
Online and restaurant sales by DNP’s Beverages business increased, and price revisions inmajor sales channels such as vending machines, supermarkets, and convenience stores, also
helped to boost sales above the previous year’s level.
In the Medical and Healthcare field, DNP is promoting a strategic business alliance with CMICHOLDINGS Co., Ltd. in order to create new value. In May 2023, CMIC CMO Co., Ltd., which
operates a drug formulation development and manufacturing support business within the CMICGroup, became a subsidiary of the DNP Group through capital participation. In June, theCompany started collaborating with the CMIC Group on the integrated manufacture ofpharmaceuticals from active pharmaceutical ingredients as well as the development of valueadded pharmaceuticals.
As a result of the above, overall segment sales grew 5.3% year on year to ¥109.2 billion, andoperating income grew 42.7% to ¥1.5 billion due to strong performance of focused businesses
and profitable products, despite the impact of rising costs of raw materials, energy, etc.

- 3 -

Electronics
In our Digital Interface business, sales of metal masks used for manufacturing organic lightemitting diode (OLED) displays decreased due to a temporary adjustment, but sales of opticalfilms turned upward after the effects of the previous fiscal year’s inventory adjustments on theoverall supply chain had run their course, resulting in a year-on-year increase in sales for thebusiness as a whole.
In semiconductors, there was demand for photomasks used for making chips as part of clientcompanies’ product development, but due to a slowdown in the semiconductor market, there
was a decline in sales of lead frames and other semiconductor package components, resulting
in lower sales compared to the previous year.
As preparation for the mass production of nanoimprinted products, whereby patterns areformed by pressing minute molds measured in nanometers (billionths of a meter) onto objects,
DNP entered into a capital and operational alliance with SCIVAX Corporation. In April 2023, thetwo companies established a joint venture company called Nanoimprint Solutions Co., Ltd. The
partners plan to respond to the needs of domestic and overseas manufacturers by combining
DNP’s strengths, including technologies for making master molds used in making cutting-edge
nanoimprinted products as well as mass production and quality control know-how, with SCIVAX’s
strengths in such areas as technologies for designing mass-production equipment andmachinery.
As a result of the above, overall segment sales fell 2.1% year on year to ¥56.2 billion, andoperating income fell 23.1% to ¥12.4 billion due to decrease in sales of metal masks and leadframes.
In addition, as part of the DNP Group’s promotion of digital transformation (DX), the Group hasconstructed an environment and system that began operation in May 2023 and enable some
30,000 of its employees to use generative AI in their work. In addition to further strengthening
DNP’s business base through the use of generative AI, DNP intends to develop and provide newvalue to consumers, companies and organizations, etc. by developing unique, next-generation
communication support technologies.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter increased by ¥21.2 billion from the end of the previous
fiscal year to ¥1,851.6 billion, due mainly to an increase in accounts receivables included in other
under current assets and a decline in investment securities.
Total liabilities increased by ¥11.6 billion from the end of the previous fiscal year to ¥693.8
billion, due mainly to an increase in long-term debt.
Net assets increased by ¥9.5 billion from the end of the previous fiscal year to ¥1,157.8 billion,
due mainly to an increase in net income, dividends from surplus, repurchase of treasury stock
and a decline in valuation difference on available-for-sale securities.
(3) Explanation of the consolidated earnings forecasts and other projections
Our earnings forecasts for the fiscal year ending March 2024 are unchanged from the forecasts
announced on May 17, 2023.

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

As of March 31, 2023

As of June 30, 2023

ASSETS
Current assets
Cash and time deposits
Notes, trade receivables, and contract
assetsMarketable securities
Merchandise and finished products
Work in progress
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Machinery and equipment, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible fixed assets
Other
Total intangible fixed assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
TOTAL ASSETS- 5 -246,438

220,735

329,762319,308

22,80085,02633,89035,94649,819(688)
802,995

7,600
91,05238,55538,661
103,770(671)
819,012

182,20965,954
139,907
20,28428,073
436,429

195,076
76,431
145,535
20,47832,597
470,119

30,36030,36036,36936,369341,215
221,412(2,029)560,598
1,027,389
1,830,384

304,261
223,896(2,038)526,119
1,032,608
1,851,620

(Million yen)

As of March 31, 2023

As of June 30, 2023

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

224,418
30,301

232,383
23,897

Reserve for bonuses

20,433

8,303

Repair reserve

17,54917,915

Other

105,868

104,791

Total current liabilities

398,571387,291

Bonds

100,000

100,000

Long-term debt

13,772

33,465

Repair reserve

9,506

7,500

Net defined benefit liability

54,74057,490

Deferred tax liabilities

84,65982,937

Other

20,88825,127

Total long-term liabilities

283,567

306,520682,139

693,812

Common stock

114,464

114,464

Capital surplus

145,112145,116

Retained earnings

737,699

787,386

Treasury stock(88,212)(113,113)

Total stockholders’ equity

909,064

933,854

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

138,781

115,359(21)

45

Foreign currency translation adjustments

14,143

14,656

Remeasurements of defined benefit plans

25,53523,764

Total accumulated other comprehensive
income178,439

153,826

Non-controlling interests

60,741

70,127TOTAL NET ASSETS

1,148,245

1,157,808

TOTAL LIABILITIES AND NET ASSETS

1,830,384

1,851,620

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity- 6 -(2) Quarterly consolidated statements of income and quarterly consolidated statementsof comprehensive income
Quarterly consolidated statements of income
First three months of the fiscal years(Million yen)Three months ended
June 30, 2022

Three months ended
June 30, 2023

Net sales

334,433

345,098

Cost of sales

259,823

271,577

Gross profit

74,60973,521

Selling, general and administrative expenses

57,691

60,238Operating income

16,917

13,282

2,246
2,978
1,820
7,045

2,493
3,706
1,214
7,414

176
347
809
1,334

180
245
885
1,311

22,62819,385

1,090
4

153
60,048

408

–

0
1,504

–
60,202

308
32
318
658

355
126
97
579

23,47479,007

3,825
3,021
6,847
16,6279,215
10,88320,09858,909887

852

15,73958,056

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
Gain on reversal of asset retirement
obligations
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
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 on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income (loss) 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, 2022

Three months ended
June 30, 2023

16,62758,909(37,950)(23,687)

53
4,581(1,562)73
1,978(1,639)1,275(1,039)(33,602)(16,975)(24,314)
34,595(18,189)
1,214

33,443
1,152

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥24,901 million during the first three months of the fiscal year ending
March 2024, due mainly to share repurchases based on a resolution passed by the Board of
Directors on March 9, 2023.
[Segment information]
I. First three months of previous fiscal year (April 1, 2022 – June 30, 2022)
Information on sales and income/loss by reporting segment and income analysis information(Million yen)
Reporting segment

Amounts reported
on quarterly
consolidated
statements ofincomeNote 2

Adjustment
Note 1

Smart
Communication

Life & Healthcare

173,283

103,696

Electronics

Total

Net salesNote3
Outside customers

57,454334,433–

334,433

Inter-segment

325

43

–

368

(368)

–

Total

173,608

103,739

57,454

334,801(368)

334,433

4,716

1,065

16,22922,010(5,092)

16,917

Segment income

Notes:

1.
2.
3.

Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
Segment income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.
Sales include revenues generated from contracts with customers as well as other revenues, but
because almost all revenues are generated from contracts with customers, the other revenues are
insignificant and are therefore not displayed separately.

II. First three months of current fiscal year (April 1, 2023 – June 30, 2023)
1. Information on sales and income/loss by reporting segment and income analysis information(Million yen)
Reporting segment

Amounts reported
on quarterly
consolidated
statements ofincomeNote 2

Adjustment
Note 1

Smart
Communication

Life & Healthcare

179,616

109,21456,267345,098–

345,098

Inter-segment

410

37

–

447

(447)

–

Total

180,027

109,251

56,267345,546(447)

345,098

Segment income

4,914

1,520

12,48718,922(5,640)13,282

Electronics

Total

Net salesNote3
Outside customers

Notes:

1.
2.
3.

Segment income is adjusted for costs related to basic research not assignable to a reporting
segment or costs of research shared by different segments.
Segment income is adjusted to reflect operating income as reported on the quarterly consolidated
statements of income.
Sales include revenues generated from contracts with customers as well as other revenues, but
because almost all revenues are generated from contracts with customers, the other revenues are
insignificant and are therefore not displayed separately.

- 9 -2. Matters related to changes in reporting segments, etc.
In order to clarify the business domains and strategies of each of our reporting segments, andin order to accelerate the execution of concrete measures, as of the first quarter of the fiscal year
through March 2024, we changed the name of the Information Communication segment to Smart
Communication, and we renamed the Lifestyle and Industrial Supplies segment to Life &Healthcare. At the same time, in order to contribute even further to comfortable lives for people,
we transferred our Beverages business to Life & Healthcare, to which it is closely related andthe Beverage segment has been eliminated.
Segment information for the first three months of the previous fiscal year is presented basedon the new name and classification method.

- 10 -