Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2016
[J-GAAP]
February 9, 2016

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:February 10, 2016
Dividend payment date:–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 nine months ended December 31, 2015
(April 1, 2015 – December 31, 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%

Nine months ended
1,090,163 (0.1)
32,090 (10.4)
39,472(3.7)
27,036
10.0
December 31, 2015
Nine months ended
1,091,782
1.6
35,827(0.8)
40,972
0.9
24,577
11.7
December 31, 2014
Note: Comprehensive income: For the first nine months ended December 31, 2015: ¥15,314 million (-86.8%)
For the first nine months ended December 31, 2014: ¥116,226 million (112.6%)
Diluted Net Income
per Share

Net Income per Share
Nine months ended
December 31, 2015
Nine months ended
December 31, 2014

Yen

Yen

42.66

42.40

38.17

37.89

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2015

1,756,139

1,098,453

60.0

As of March 31, 2015

1,809,462

1,124,093

59.6

Note: Stockholders’ equity: As of December 31, 2015: ¥1,053,031 million As of March 31, 2015: ¥1,078,828 million

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

Year ended
March 31, 2015
Year ending
March 31, 2016

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

–

Year-end

16.00

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 nine 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 December 31,
2015

680,480,693
shares

As of March 31, 2015

700,480,693
shares

As of December 31,
2015

51,916,352
shares

As of March 31, 2015

56,647,614
sharesNine months ended
December 31, 2015

633,801,476
sharesNine months ended
December 31, 2014

643,876,811
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 nine months of the fiscal years ......................................................................... 7
Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years ......................................................................... 8(3) Notes regarding quarterly consolidated financial statements ................................... 9[Notes on premise of a going concern] ........................................................................ 9[Significant changes in shareholders’ equity] ............................................................. 9[Segment information, etc.] ........................................................................................... 9

1

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 nine months of the fiscal year, withcorporate earnings and the employment environment improving, aided by the economic policiesof the Japanese government and monetary easing policies of the Bank of Japan. However, theeconomy has still not reached a full-fledged recovery, due partly to sluggish consumer spending
and overseas economic slowdowns, including in China.
The printing industry continued to face a tough business environment as a result of sluggish
printing demand and a decline in order prices due to stiffer competition.
In this environment, the DNP Group (DNP) reviewed its group vision as its basic
management policy and prepared the DNP Group Vision 2015 in October 2015. As part of thisvision, DNP states its corporate philosophy as: “The DNP Group connects individuals andsociety, and provides new value.” It establishes the four growth areas of “Knowledge andCommunication,” “Food and Healthcare,” “Lifestyle and Mobility,” and “Environment andEnergy;” and also defines its business vision as: “Use P&I innovations to expand business,
primarily in four growth areas.” The entire DNP Group is working to expand its business bycreating new value.
Based on these efforts, consolidated net sales for the first nine months edged down 0.1%
year on year to ¥1,090.1 billion, consolidated operating income fell 10.4% to ¥32.0 billion,
consolidated ordinary income fell 3.7% to ¥39.4 billion, and net income attributable to parent
company shareholders grew 10.0% to ¥27.0 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 nine-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, sales were on par with the previous year, despitesluggish sales of flyers, catalogs, and other printed materials, thanks to growth forpoint-of-purchase promotional materials (POP) and other sales promotion-related tools and for
operations outsourcing services for campaign offices and customer centers.
In the Business Forms business, ledger books decreased from last year, but sales werefavorable for Information Processing Services (IPS; handling data entry, printing, and shipmentof personalized mail and other items). Additionally, responding to growing corporate needs forprotecting the personal information of employees and customers in application, reception, andother operations, DNP established two new Business Process Outsourcing (BPO) centers in
December 2015, giving it five centers across the country. DNP aims to expand corporate BPO
services while protecting personal information by leveraging expertise gained in smart card,
personalized printing, and other operations.
In the Imaging Communication business, sales rose sharply from the previous year due tostrong sales in North American, European, and Southeast Asian markets for dye-sublimation
thermal transfer printing media (color ink ribbons and receiver paper) used for photo printers.
DNP also developed a system and launched services in October 2015 for taking ID photos at
Ki-Re-i photo booths and applying directly for Individual Number Cards under the “My Number”
social security and tax number system.
In the Education and Publications Distribution business, sales increased year on year thanks
to favorable sales in the “honto” hybrid bookstore network that combines physical bookstores,
online bookstores, and e-book sales services, and growth in the library operations outsourcing
business in tandem with regional revitalization initiatives.
As a result of the above, overall segment sales grew 3.8% year on year to ¥608.9 billion andoperating income grew 24.4% to ¥19.1 billion.

2

Lifestyle and Industrial Supplies
In the Packaging business, sales increased for plastic film packaging, paper cups, and molded
plastic goods, but overall sales decreased year on year on a large decline for 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 on a slow recovery inhousing construction demand.
In the Industrial Supplies business, sales increased from the previous year on strong sales
for both photovoltaic module components and lithium-ion battery components.
As a result of the above, overall segment sales fell 1.0% year on year to ¥285.6 billion andoperating income fell 13.3% to ¥8.6 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 overseas
demand, as a result of sluggish sales in Japan.
In the Optical Films business, sales decreased year on year on declines for polarizing plateproducts, including anti-reflection films.
As a result of the above, overall segment sales fell 11.2% year on year to ¥155.4 billion andoperating income fell 15.9% to ¥16.7 billion.
[BEVERAGES]
Beverages
The soft drink industry continues to face a tough market environment, due partly to pricecompetition among manufacturers. In this environment, DNP worked to expand sales bybolstering main brands, including Coca-Cola and coffee drinks, through the introduction of newbottle cans and product renewals, and by focusing on the vending machine business througharea marketing.
As a result of these efforts, sales increased for coffee drinks that use a new extraction
technology and for tea drinks including the Ayataka brand, but decreased for carbonated drinks
and sports drinks. Overall segment sales fell 3.4% year on year to ¥44.2 billion and operating
income fell 14.5% to ¥0.9 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter decreased by ¥53.3 billion from the end of theprevious fiscal year to ¥1,756.1 billion, due mainly to a decrease for cash and time deposits.
Total liabilities decreased by ¥27.6 billion from the end of the previous fiscal year to ¥657.6
billion, due mainly to decreases in short-term bank loans and reserve for bonuses.
Net assets decreased by ¥25.6 billion from the end of the previous fiscal year to ¥1,098.4
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 60.0%.
(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 nine months ofthe previous fiscal year and for the full previous fiscal year.
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.
These changes have an immaterial impact on the quarterly financial statements for the firstnine 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 December 31, 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

145,773
362,080
99,494
31,68527,12531,914(1,214)
696,858

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

217,007
91,313
155,556
14,32834,841
513,047

30,58330,58336,031
36,031

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

399,337
118,748(7,884)510,201
1,059,281
1,756,139

(Million yen)
As of March 31, 2015

As of December 31, 2015

LIABILITIESCurrent liabilities
Notes and trade payable
Short-term bank loans

258,887
53,370263,923
42,992

Reserve for bonuses

17,428

6,999

Other

105,717

92,464

Total current liabilities

435,404

406,379

Bonds

103,750

107,150

Long-term debt

20,585

19,582

Net defined benefit liability

32,34833,523

Deferred tax liabilities

65,86064,487

Other

27,41926,562

Total long-term liabilities

249,964

251,306

685,368

657,686

Common stock

114,464

114,464

Capital surplus

144,898

144,283

Retained earnings

737,241

710,479

Treasury stock(94,386)(81,022)

Total stockholders’ equity

902,217888,204

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

147,914

144,425(0)5Foreign currency translation adjustments

7,247

3,180

Remeasurements of defined benefit plans
Total accumulated other comprehensive
income21,44917,215

176,610

164,827

Stock acquisition rights

16

16

Non-controlling interests

45,24845,405TOTAL NET ASSETS

1,124,093

1,098,453

TOTAL LIABILITIES AND NET ASSETS

1,809,462

1,756,139

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 nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2014
1,091,782

Nine months ended
December 31, 2015
1,090,163

Cost of sales

883,184879,233

Gross profit

208,598

210,930

Selling, general and administrative expenses

172,770

178,839

Operating income

35,82732,090

3,762
1,437
4,904
10,104

4,803
2,725
4,750
12,279

1,802
3,157
4,959

1,843
3,054
4,898

40,97239,472

232
3,951
81
4,265

217
7,344
463
8,025

1,309
4,342
–
877
6,529

1,052
–
2,403
2,355
5,810

38,70941,686

8,286
4,795
13,081
25,628

7,177
6,487
13,66428,022

1,050

985

24,57727,036

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 nine 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 (loss)
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

8

Nine months ended
December 31, 2014

Nine months ended
December 31, 2015

25,62828,022

87,964(3,481)

16
3,065(1,729)42(6,189)(5,093)

1,281

2,013

90,598116,226(12,707)
15,314

114,9291,297

15,252
61

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥20,058 million during the first nine 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 nine months of the current fiscal year due to the cancellationof treasury stock on May 28, 2015 based on a resolution passed by the Board of Directors on
May 14, 2015.
[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2014 – December 31, 2014)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

582,893

287,970

175,124

Beverages

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

45,794

1,091,782–

1,091,782

Inter-segment

3,607

708

7

5

4,329

(4,329)–

Total

586,501

288,678

175,132

45,799

1,096,111(4,329)1,091,782

Segment income

15,406

9,975

19,9481,121

46,451(10,623)

35,827

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 nine months of current fiscal year (April 1, 2015 – December 31, 2015)
1. Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

605,525

284,973

155,451

Beverages

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

44,213

1,090,163–

1,090,163

Inter-segment

3,452

712

11

27

4,204

(4,204)–

Total

608,977

285,686

155,463

44,2401,094,367(4,204)

1,090,163

Segment income

19,163

8,648

16,777959

45,548(13,457)

32,090Notes: 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.

9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 nine months of the previous fiscal year has been preparedbased on the new reportable business segments.

10