Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2024 [J-GAAP]

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:February 9, 2024
Dividend payment date:–Preparation of quarterly earnings presentation material: Yes
Holding of quarterly results briefing:No

February 9, 2024

(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first nine months ended December 31, 2023
(April 1, 2023 – December 31, 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

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022

Million yen%

Million yen%

Million yen%

Million yen%

1,061,252

3.7

52,002

16.6

68,27718.4

98,55952.9

1,023,560

2.2

44,583(9.5)

57,675(2.2)

64,445(7.3)

Note: Comprehensive income: For the first nine months ended December 31, 2023: ¥107,433 million (163.8%)
For the first nine months ended December 31, 2022: ¥40,720 million (-62.9%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2023
Nine months ended
December 31, 2022

Yen

Yen

389.37389.32241.00240.96(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2023

1,887,922

1,181,155

58.8

As of March 31, 2023

1,830,384

1,148,245

59.4

Note: Stockholders’ equity as of December 31, 2023: ¥1,109,604 million

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

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

–

–

32.00

–

Year-end

Total

32.00

64.00

Year ending March 31, 2024
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the third 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

350.41

Note: Revisions to the most recently announced earnings forecasts during the third 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 January 1, 2024 based on this resolution is not taken into account.

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: 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 December 31,
2023

292,240,346
shares

As of March 31, 2023

292,240,346
shares

As of December 31,
2023

47,728,946
shares

As of March 31, 2023

30,724,570
sharesNine months ended
December 31, 2023

253,123,575
sharesNine months ended
December 31, 2022

267,401,804
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 third quarter (3) Explanation of the consolidated earnings forecasts and otherprojections,” on page 5.
Quarterly earnings presentation material will be uploaded to the DNP website.

Contents
1. Qualitative information on the consolidated results for the third 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 ..............5
2. Quarterly consolidated financial statements and key notes ............................................6(1) Quarterly consolidated balance sheets ........................................................................6(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income..........................................................................8(3) Notes regarding quarterly consolidated financial statements ..................................10[Notes on premise of a going concern] ......................................................................10[Significant changes in shareholders’ equity] ............................................................10[Segment information] .................................................................................................10-1-

1. Qualitative information on the consolidated results for the third quarter(1) Explanation of the consolidated financial results
The environment surrounding the DNP Group during the first nine months of the fiscal year
ending March 31, 2024 showed signs of gradual economic recovery, including normalization ofdomestic economic activities and improvements in employment and income levels, thanks partly
to the effects of various government policies. On the other hand, the future remains difficult topredict amid factors like prolonged geopolitical risks and fears that financial policies in various
regions around the world may lead to economic recession. In addition, worries persist regarding
climate change, which United Nations Secretary-General Antonio Guterres described as having
reached the era of “global boiling,” and the effects of natural disasters like the recent Noto
Peninsula earthquake.
Despite these types of major changes in environment, society, and economies, the DNPGroup is keeping its eye on the long term as it combines its unique strengths in “P&I” (printing
and information), increases collaboration with diverse external partners, and expands its fieldsof business in order to create a better future based on its own ideas. Currently, we are
implementing a three-year Medium-term Management Plan that covers the three fiscal terms
from the year ending March 2024 to the year ending March 2026. Through concrete initiatives
based on business strategies, financial strategies, and non-financial strategies, DNP will focus
on sustained creation of business value and shareholder value.
In terms of business strategies, we are accelerating the creation of new value, primarily infocus business areas, while we work to build a robust business portfolio over the medium to longterm. Regarding financial strategies, we will continue to appropriately allocate the cash that we
generate to investments in further business growth and shareholder returns. As for non-financial
strategies, we will work to strengthen the management foundation that supports DNP’s long-term
growth, mainly by enhancing our human capital, enhancing our intellectual capital, andaddressing environmental concerns. We will also prepare for natural disasters and otherunpredictable situations by thoroughly implementing business continuity management (BCM)
and working Group-wide to promote various corporate activities on an ongoing basis.
As a result of these efforts, consolidated net sales for the first nine months grew 3.7% year on
year to ¥1,061.2 billion, consolidated operating income grew 16.6% to ¥52.0 billion, consolidated
ordinary income grew 18.4% to ¥68.2 billion, and net income attributable to parent company
shareholders grew 52.9% to ¥98.5 billion due mainly to the recording of extraordinary gains on
the sale of investment securities.
As of the first quarter of the fiscal year ending March 2024, we changed the name of theInformation Communication segment to Smart Communication, we renamed the Lifestyle andIndustrial Supplies segment to Life & Healthcare, and we transferred our Beverages business toLife & Healthcare. Comparisons and analyses pertaining to the first nine months of the fiscal
year ending March 2024 are based on this new classification.
Smart Communication
In Imaging Communications, photo printing materials performed well, primarily in the Europeanand Asian markets.
Regarding information security, in addition to solid sales of large-scale business process
outsourcing (BPO) projects, DNP enjoyed continued strong performance by smart cards,
especially dual-interface cards that feature both contact and contactless standards on a single
IC chip.
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In marketing, we strove to provide value by combining the expertise and knowledge ofmarketing techniques that we have cultivated over the course of many years with our strength indigital technologies. However, due to continued shrinkage in the market for paper media, sales
declined compared to the same period of the previous fiscal year.
Our publishing business enjoyed growth in sales of library management services in addition
to solid results from our hybrid distribution and sales business that combines brick-and-mortar
stores with online sales. However, overall Publishing sales were similar to a year earlier, largely
due to contraction of the market for magazines and other paper media.
Concerning Content and XR (extended reality) Communication, we worked to strengthen our
XR communication business, which increases the value of people’s experiences mainly byintegrating real and virtual spaces. As part of that effort, we focused on creating new businesses
related to this field, for example by pursuing collaboration with Hacosco Inc., a company that hasdeveloped strengths in “brain tech” and XR businesses primarily by combining neuroscience withIT.
In the education field, DNP, together with Lenovo Japan LLC, was selected by the Tokyo
Metropolitan Government to support the construction and operation of Tokyo’s “virtual learning
platform” (VLP) project. Going forward, DNP will continue to support the activities of local
governments and classrooms throughout Japan as they work to provide a variety of educational
opportunities under the nation’s “No one left behind” policy.
As a result of the above, overall segment sales sagged 0.2% year on year to ¥532.1 billion.
Although operating income was supported by positive factors including increased information
security sales, promotion of structural reforms, and success in boosting operational efficiency, it
was pressured by lower sales (especially of paper media) and increases in raw material andlogistics costs, resulting in operating income of ¥15.9 billion yen, down 11.2% from the same
period last year.
Life & Healthcare
Helped by a recovery in automobile production, the Mobility and High-Performance Industrial
Supplies businesses enjoyed strong performance of battery pouches for lithium-ion batteries, foruse in both automotive applications and IT devices. In photovoltaic cell-related business, rising
global demand led to strong sales of encapsulants, but sales of backsheets decreased due to
production adjustments by client companies. Concerning decorative films for automotive use, in
addition to products for interior use, we enjoyed solid sales of exterior-use films that feature
highly aesthetic designs, shorten the time required for painting, and reduce negativeenvironmental impact.
Our Packaging business was affected by consumers’ tendency to limit purchases of foodproducts and household goods due to soaring prices. However, sales still exceeded the previousyear level, thanks notably to increased sales of formed plastic products. In addition to focusing
on development and sales of functional packaging materials, such as DNP’s eco-friendly GREEN
PACKAGING®, we made progress toward reorganizing production bases and worked tostrengthen our business structure.
The Living Spaces business saw solid sales, in Japan and overseas, of DNP’s ARTTECH®
residential exterior materials that offer both durability and attractive designs. However, sales of
products for residential interior use decreased due to a decline in domestic housing starts (ofowner-occupied homes), and overall Living Spaces sales declined from the same period of theprevious fiscal year.
The volume of sales recorded by DNP’s Beverages business was boosted by factors like arecovery in social interaction and persistent high temperatures, and price revisions also helped
to boost sales above the previous year’s level.
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In the Medical and Healthcare field, CMIC CMO Co., Ltd. became a consolidated subsidiaryof the DNP Group as of the first quarter of the fiscal year ending March 2024. Since June 2023,
DNP has been collaborating with the CMIC Group on activities including the integrated
manufacture of pharmaceuticals from active pharmaceutical ingredients, and the developmentof value-added pharmaceuticals.
As a result of the above, segment sales amounted to ¥356.5 billion, up 5.2% from the previous
year. Operating income soared by 71.2% over the same period last year to 10.5 billion yen as
the pace of increase in raw material and energy costs stabilized, and the impact of insufficient
price pass-through was mitigated.
Electronics
In our Digital Interface business, sales of metal masks used for manufacturing organic EL
displays remained strong thanks to increasing adoption of organic EL displays for use insmartphones. In addition, sales of optical films started to grow as the effects of the previous
year’s inventory adjustments across the supply chain ran their course. Sales for this business asa whole rose compared to the the same period of the previous fiscal year.
In semiconductors, sales of photomasks used for making chips remained stable relative to ayear earlier due to demand related to client companies’ product development, but due to a
slowdown in the semiconductor market, there was a decline in sales of lead frames and othersemiconductor package components, resulting in lower overall sales compared to the the same
period of the previous fiscal year.
As a result of the above, overall segment sales grew 13.8% year on year to ¥174.4 billion.
Despite a downturn in semiconductor-related sales and the impact of higher costs of raw
materials and other costs, operating income grew 17.6% year on year to 42.3 billion yen, due tostrong sales related to digital interfaces.
In December 2023, DNP issued its “Announcement of Investment in Special Purpose Company
Established for the Purpose of Acquiring the Shares of Shinko Electric Industries, Co., Ltd.”The DNP Group has been developing important components of next-generation
semiconductor packages, including organic interposers and TGV glass core substrates. In
addition, DNP aims to expand the value it provides to the semiconductor supply chain bydeveloping businesses that support next-generation technologies, such as optoelectronic
integration. Recently, major semiconductor manufacturers have announced the adoption of glass
core substrates, and next-generation semiconductor technologies such as chiplets are attracting
attention. DNP intends to speed up the provision of new value in order to meet these types ofmarket demands.
Furthermore, as stated in the “Announcement Regarding Planned Commencement of Tender
Offer for Shinko Electric Industries Co., Ltd. (Stock Code 6967),” which is mentioned in thespecial purpose company press release, commencement of the tender offer is subject tocompliance with domestic and international laws that regulate competition and foreign
investments, so a certain amount of time will be required for handling necessary procedures andresponses related to said compliance. Therefore, although the Tender Offeror aims to start inlate August 2024, the timing may be affected by the amount of processing time required byoverseas authorities with jurisdiction over competition and investment laws and regulations.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter increased by ¥57.5 billion from the end of the previous
fiscal year to ¥1,887.9 billion, due mainly to an increase in property, plant and equipment and-4-notes, trade receivables, and contract assets.
Total liabilities increased by ¥24.6 billion from the end of the previous fiscal year to ¥706.7
billion, due mainly to an increase in notes and trade payables and long-term debt.
Net assets increased by ¥32.9 billion from the end of the previous fiscal year to ¥1,181.1
billion, due mainly to an increase in net income and a decrease in dividends of surplus andrepurchase of treasury stock.
(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.

-5-

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

As of March 31, 2023

As of December 31,
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-6-

246,438

234,018

329,762

340,656

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

7,500
90,43542,29541,98943,128(664)
799,360

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

195,025
73,580145,584
25,50034,801
474,491

30,36030,36039,08439,084341,215
221,412(2,029)560,598
1,027,389
1,830,384

347,395
229,671(2,081)
574,985
1,088,562
1,887,922

(Million yen)

As of March 31, 2023

As of December 31,
2023

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

224,418
30,301

236,853
30,124

Reserve for bonuses

20,433

8,749

Repair reserve

17,54923,297

Other

105,868

110,387

Total current liabilities

398,571

409,411

Bonds

100,000

100,000

Long-term debt

13,772

24,622

Repair reserve

9,506

–

Net defined benefit liability

54,74058,329Deferred tax liabilities

84,65989,840Other

20,88824,563

Total long-term liabilities

283,567

297,355

682,139706,767

Common stock

114,464

114,464

Capital surplus

145,112145,125

Retained earnings

737,699

819,827

Treasury stock(88,212)(155,259)

Total stockholders’ equity

909,064

924,158

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

138,781

140,815

(21)

(16)

Foreign currency translation adjustments

14,14323,740Remeasurements of defined benefit plans
Total accumulated other comprehensive
income25,53520,907

178,439

185,445

60,741

71,551TOTAL NET ASSETS

1,148,245

1,181,155

TOTAL LIABILITIES AND NET ASSETS

1,830,384

1,887,922

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Non-controlling interests-7-(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, 2022
Net sales

Nine months ended
December 31, 2023

1,023,560

1,061,252

Cost of sales

806,582

830,998

Gross profit

216,977

230,254

Selling, general and administrative expenses

172,393

178,251

Operating income

44,58352,002

4,084
9,896
3,225
17,206

4,676
13,084
2,835
20,596

521
944
2,648
4,114

660
785
2,875
4,322

57,67568,277

17,36911,056
2,687
31,113204
61,222
7
61,434

724
258
269
278
1,531

1,337
665
623
242
2,869

87,256

126,842

12,473
7,142
19,616
67,64018,637
8,256
26,893
99,948

3,195

1,389

64,44598,559Non-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
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Impairment loss
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-8-Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years(Million yen)

Nine months ended
December 31, 2022
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-9-

Nine months ended
December 31, 2023

67,64099,948(38,888)

1,931

(88)
13,460(4,813)

16
9,224(4,522)

3,409

834

(26,920)
40,7207,484
107,433

36,5394,181

105,565
1,868

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥67,047 million during the first nine 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 nine months of previous fiscal year (April 1, 2022 – December 31, 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

531,597338,695

153,267

1,023,560–

1,023,560

Inter-segment

1,460

108

–

1,569

(1,569)–

Total

533,058

338,803

153,267

1,025,129(1,569)1,023,560

Segment income

17,932

6,171

36,01860,122(15,538)

44,583

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.

II. First nine months of current fiscal year (April 1, 2023 – December 31, 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
Smart
Communication

Life & Healthcare

Electronics

Total

Note 1

Net salesNote3

530,427

356,422

174,402

1,061,252–

1,061,252

Inter-segment

1,683

98

–

1,782

(1,782)–

Total

532,111356,520

174,402

1,063,034(1,782)

1,061,252

15,92910,56742,36968,866(16,864)

52,002

Outside customers

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.

- 10 -

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
ending 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, andwe eliminated the Beverage segment.
Segment information for the first nine months of the previous fiscal year is presented basedon the new name and classification method.

- 11 -