Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2014
[J-GAAP]
November 7, 2013

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:+81-3-5225-8220
Securities report issuing date:November 8, 2013
Dividend payment date:
December 10, 2013
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, 2013
(April 1, 2013 – September 30, 2013)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Sales

Six months ended
September 30, 2013
Six months ended
September 30, 2012

Operating Income

Ordinary Income

Net Income

Million yen%

Million yen%

Million yen%

Million yen%

709,625(1.5)

24,003

106.7

27,021

84.1

14,866–

720,684(4.5)

11,614(29.5)

14,673(26.0)

396(95.3)

Note: Comprehensive income: For the first six months ended September 30, 2013: ¥39,627 million (–%)
For the first six months ended September 30, 2012: ¥(790) million (–%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2013
Six months ended
September 30, 2012

Yen

Yen

23.09

23.02

0.62

0.59

Note: The percentage change from the corresponding year-ago period is not shown for net income for the six months	  	  ended September 30, 2013 because the change was in excess of 1,000%.

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2013

1,536,109

965,979

59.9

As of March 31, 2013

1,578,976

937,055

56.6

Note: Stockholders’ equity: As of September 30, 2013: ¥920,620 million

As of March 31, 2013: ¥893,124 million

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

Year ended
March 31, 2013
Year ending
March 31, 2014

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

Year-end

Total

16.00

Year ending March 31, 2014–
16.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No

32.00

32.00

3. Consolidated earnings forecasts for the year ending March 31, 2014
(April 1, 2013 – March 31, 2014)(Percentages show change from corresponding year-ago period.)
Net Sales
Million yen%

Operating Income

Ordinary Income

Million yen

Million yen%%

Net Income
per Share

Net Income
Million yen%

Yen

Full year
1,530,000
5.8
48,00034.2
49,00021.5
23,00019.7
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

35.72

Other information(1) Changes in significant subsidiaries during the current 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 endof each period
3) Average number of shares
outstanding during the period(cumulative from the start of the
fiscal year)

As of September 30,
2013

700,480,693
shares

As of March 31, 2013

700,480,693
shares

As of September 30,
2013

56,531,006
shares

As of March 31, 2013

56,490,329
sharesSix months ended
September 30, 2013

643,972,337
sharesSix months ended
September 30, 2012

644,047,972
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 the “1. Qualitative information on the consolidated results for the current quarter, (3) Explanation of
the consolidated 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. Quarterly consolidated financial statements ..................................................................... 4(1) Quarterly consolidated balance sheets ........................................................................ 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income.......................................................................... 6
Quarterly consolidated statements of income
First six months of the fiscal years............................................................................ 6
Quarterly consolidated statements of comprehensive income
First six months of the fiscal years............................................................................ 7(3) Quarterly consolidated statements of cash flows························································ 8(4) Notes regarding quarterly consolidated financial statements.................................. 10[Notes on premise of a going concern] ...................................................................... 10[Significant changes in shareholders’ equity] ........................................................... 10[Segment information, etc.].......................................................................................... 10

1

1. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
During the first six months of the fiscal year, Japan’s economy showed some positive signs,
including an increase in consumer spending and improvement in corporate earnings, aided by aseries of economic policies. However, overseas economic slowdowns are cause for concern,notably in emerging countries, and the economic outlook remains uncertain.
The printing industry continued to face a tough business environment, due partly to higher
raw material prices and a decline in order prices from stiffer competition.
In this environment, the DNP Group (DNP) sought to aggressively develop its business under
the catchphrase “Today’s Innovation is Tomorrow’s Basic” and deliver products, services, andsolutions tailored to the needs of its customers, based on its P&I Solutions business vision (P&I
stands for “printing technology” and “information technology”). DNP also pursued “Production
21” Activities with the aim of establishing a robust production structure in all facets of production,
including quality, cost, and delivery time. Moreover, DNP worked to secure earnings through thereorganization of domestic and overseas business structures from the standpoint of overall
optimization and actively pursued business expansion from consumer, social, and global
perspectives.
As a result of these efforts, consolidated net sales for the first six months fell 1.5% year on
year to ¥709.6 billion, consolidated operating income grew 106.7% to ¥24.0 billion, consolidated
ordinary income grew 84.1% to ¥27.0 billion, and net income totaled ¥14.8 billion, up from ¥0.3
billion during the same period last year.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Books and Magazines business, amid a continued slump in the publications market, booksales increased as DNP leveraged its various strengths, including integrated production lines
from book printing to binding. However, this was not enough to offset a decline for magazines,
and overall sales fell below year-ago levels.
In the Commercial Printing business, sales decreased year on year on declines for flyers,
pamphlets, catalogs, and other printed materials.
In the Business Forms business, information processing services (ranging from data entry toprinting and shipment of personalized mail and other items) increased on growth in businessprocess outsourcing services related to the opening of accounts for the Nippon Individual
Savings Account (NISA) program. Smart cards were also strong on growth for financial
institutions and electronic money applications.
In the Education and Publications Distribution business, DNP worked to expand businessand enhance operational efficiency in the “honto” hybrid bookstore network that combines
physical bookstores, online bookstores, and e-book sales services. However, sales decreased
from the previous year, due partly to the closure of unprofitable stores.
As a result of the above, overall segment sales fell 1.8% year on year to ¥342.4 billion andoperating income dropped 23.1% to ¥5.6 billion.
Lifestyle and Industrial Supplies
In the Packaging business, film packaging was firm, but sales decreased year on year on adecline for PET bottle aseptic filling systems.
The Lifestyle Materials business performed well thanks to a gradual recovery in demand,buoyed by an increase in domestic housing starts, and to growth for eco-friendly products thatuse DNP’s proprietary Electron Beam coating technology.
In the Industrial Supplies business, sales increased year on year on growth for anti-reflection
films used in flat-panel displays, dye-sublimation thermal transfer printing media for photo2

printers (color ink ribbons and receiver paper), and other products.
As a result of the above, overall segment sales fell 1.4% year on year to ¥260.5 billion, but
operating income grew 34.0% to ¥16.1 billion.
Electronics
In the LCD Color Filter business, small- and medium-sized filters for smart phones and tablets
were firm, but sales decreased year on year on a decline for large display filters.
In the Electronic Devices business, photomasks were on par with last year due to theacquisition of overseas demand, but sales fell below year-ago levels on a decline for etched
products, including hard disk suspensions, caused by a slump in global PC sales.
As a result of the above, overall segment sales fell 4.4% year on year to ¥87.2 billion andoperating income totaled ¥6.7 billion, versus a loss of ¥3.4 billion during the same period lastyear.
[BEVERAGES]
Beverages
Amid tough conditions characterized by a weak soft drink market and stiffer sales competition,
DNP worked to expand sales through various sales promotions, including the Coca-Cola Zero ×EXILE Zero Limit Promotion.
As a result of the above, sales increased for I LOHAS, a brand of mineral water that uses alightweight PET bottle, but decreased for coffee beverages. Overall segment sales fell 1.7%
year on year to ¥25.6 billion and operating income was ¥0.03 billion, versus a loss of ¥0.2 billion
during the same period last year.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter decreased by ¥42.8 billion from the end of theprevious fiscal year to ¥1,536.1 billion, due mainly to decreases for cash and time deposits andfor notes and trade receivables.
Total liabilities decreased by ¥71.7 billion from the end of the previous fiscal year to ¥570.1
billion, due mainly to a decrease for current portion of bonds.
Net assets increased by ¥28.9 billion from the end of the previous fiscal year to ¥965.9 billion,
due mainly to increases for valuation difference on available-for-sale securities and foreign
currency translation adjustments.
As a result of the above, the equity ratio rose from 56.6% at the end of the previous fiscal
year to 59.9%.
Consolidated cash flow provided by operating activities during the first six months totaled ¥64.8
billion, due mainly to ¥25.4 billion in income before income taxes and minority interests and¥36.4 billion in depreciation.
Cash flow used in investing activities totaled ¥29.3 billion, due mainly to ¥25.6 billion in
payments for purchases of property, plant and equipment. Cash flow used in financing activities
totaled ¥68.2 billion, due mainly to ¥50.3 billion in payments for redemption of bonds and ¥10.6
billion in dividends paid.
As a result, cash and cash equivalents at the end of the second quarter totaled ¥182.9 billion,a decrease of ¥29.1 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 2014 are unchanged from the forecasts
announced on May 13, 2013.

3

2. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2013

As of September 30, 2013ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
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

4

213,630
367,765
91,04729,03018,97733,583(2,883)751,150

186,180
341,088
89,72031,95520,74524,896(2,695)
691,892

196,019
129,350
154,005
22,921
36,157538,454

192,534
125,302
152,126
28,56335,149533,675

35,48035,48033,36333,363

189,657
70,210(5,977)
253,890827,825
1,578,976

217,586
65,485(5,893)
277,178
844,217
1,536,109

(Million yen)
As of March 31, 2013

As of September 30, 2013

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

249,567
47,296

238,556
46,889Current portion of bonds

50,760720

Reserve for bonuses

16,004

16,607

Other

94,15686,859Total current liabilities

457,784

389,632

Bonds

102,800

102,460

Long-term debt

19,54819,267

Provision for retirement benefits

26,441

26,764Other

35,34532,005

Total long-term liabilities

184,135

180,497

641,920

570,129

Common stock

114,464

114,464

Capital surplus

144,898

144,898

Retained earnings

722,057

726,611

Treasury stock(94,226)(94,264)

Total stockholders’ equity

887,193891,70918,90833,5028

12(12,986)(4,604)

5,930

28,91016

16

Minority interests

43,91545,343TOTAL NET ASSETS

937,055

965,979

1,578,976

1,536,109

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Total accumulated other comprehensive
incomeStock acquisition rights

TOTAL LIABILITIES AND NET ASSETS

5

(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, 2012
720,684

Six months ended
September 30, 2013
709,625

Cost of sales

596,330

574,853

Gross profit

124,353

134,771

Selling, general and administrative expenses

112,738

110,768

Operating income

11,61424,003

2,395
2,536
3,410
8,341

2,467
611
3,808
6,887

1,736
3,546
5,282

1,672
2,197
3,869

14,67327,021

114
–
120
235

646
177
104
927

2,173
5,931
2,373
10,4774,431
7,477(3,331)
4,146
285
(111)
396

1,934
154
370
2,458
25,490
6,909
2,735
9,645
15,844
97814,866

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
Compensation income
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
Loss on evaluation of investment securities
Other
Total extraordinary losses
Income before income taxes and minority interests
Current income taxes
Deferred income taxes
Total income taxes
Income before minority interests
Minority interests
Net income

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

Income before minority income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains (losses) on hedges
Foreign currency translation adjustments
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority
interests

7

Six months ended
September 30, 2012

Six months ended
September 30, 2013285

15,844(1,315)

14,288

15
223

(1)
9,126

1

369

(1,075)(790)

23,782
39,627(313)

37,846

(477)

1,781

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

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (Decrease) of doubtful receivables, net
Decrease of provision for retirement benefits, net
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
Decrease in trade receivables
Decrease (Increase) in inventories
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 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
Proceeds from transfer of business
Interest and dividends received
Other
Net cash used in investing activities

8

Six months ended
September 30, 2012

Six months ended
September 30, 2013

4,431
40,363604(3,281)(2,536)
1,591(2,395)
1,736
(115)
5,931
2,070
18,297
4,515(23,071)
5,416
53,55825,49036,409(428)(4,904)(611)
1,407(2,467)
1,672
(100)
154
1,301
29,272(2,246)(15,163)
2,142
71,926(1,380)(7,178)44,999(219)(6,845)64,862(409)(1,617)(42,968)(25,690)

1,719

4,157

(13,890)
239
8,091
2,803
(12,430)(56,845)(6,024)467–
3,220(3,858)(29,345)(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Proceeds from stock issuance to minority
shareholders
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to minority interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting
from change of scope of consolidation
Cash and cash equivalents at end of period

9

Six months ended
September 30, 2012

Six months ended
September 30, 2013

(4,007)
1,200(3,074)
(330)

(817)
3,010
(3,537)(50,380)

1,882

–

(16)

(37)

(0)

(0)

(1,745)(10,310)(317)(4,592)(21,311)(1,707)(10,311)(352)(4,094)(68,230)

456

3,585

(32,701)(29,127)

216,279

212,062(25)–

183,552

182,935

(4) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Segment information, etc.]
I. First six months of previous fiscal year (April 1, 2012 – September 30, 2012)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

346,103257,210

91,223

Beverages

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

26,146

720,684–

720,684

Inter-segment

2,764

6,964

0

0

9,730

(9,730)–

Total

348,867

264,174

91,224

26,147730,414(9,730)720,684

Segment income (loss)

7,354

12,026(3,442)(294)

15,644(4,029)11,614

Notes: 1. Segment income (loss) 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 (loss) 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, 2013 – September 30, 2013)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

339,525

257,184

87,217

Beverages

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

25,697

709,625–

709,625

Inter-segment

2,929

3,356

0

1

6,288

(6,288)–

Total

342,455

260,541

87,21825,698715,914(6,288)709,625

Segment income

5,658

16,1196,739

33

28,550(4,547)24,003

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.

10