Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2023 [J-GAAP]
August 10, 2022

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 10, 2022
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, 2022
(April 1, 2022 – June 30, 2022)(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, 2022
Three months ended
June 30, 2021

Million yen%

Million yen%

Million yen%

Million yen%

334,433

0.8

16,917

2.5

22,62813.5

15,7395.8

331,919

2.6

16,50671.1

19,92946.7

14,878101.0

Note: Comprehensive income: For the first three months ended June 30, 2022: ¥(16,975) million (-%)
For the first three months ended June 30, 2021: ¥20,158 million (-40.9%)
Diluted Net Income
per Share

Net Income per ShareThree months ended
June 30, 2022
Three months ended
June 30, 2021

Yen

Yen

58.58

58.56

53.21

53.20

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2022

1,816,192

1,118,883

58.4

As of March 31, 2022

1,876,647

1,148,413

58.2

Note: Stockholders’ equity as of June 30, 2022: ¥1,061,322 million

As of March 31, 2022: ¥1,091,861 million

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

Year ended
March 31, 2022
Year ending
March 31, 2023

SecondQuarter-end

Third
Quarter-end

32.00

–

–

Year-end

Total

32.00

64.00

–

Year ending March 31, 2023
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, 2023
(April 1, 2022 – March 31, 2023)(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

1,380,000

2.7

67,0000.3

81,5000.3

67,000(31.1)

249.84

Note: Revisions to the most recently announced earnings forecasts during the first quarter: No

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, 2022

317,240,346
shares

As of March 31, 2022

317,240,346
shares

As of June 30, 2022

49,295,504
shares

As of March 31, 2022

48,175,114
sharesThree months ended
June 30, 2022

268,675,013
sharesThree months ended
June 30, 2021

279,608,871
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 three months (3) Explanation of the consolidated earnings forecasts andother 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, 2023 showed signs of gradual economic recovery, including progress towardbalancing economic activity with measures to prevent the spread of the novel coronavirus(hereafter COVID-19). At the same time, the future has become even more difficult to predict
due to factors like the situation in Ukraine and other geopolitical risks, further increases in raw
material and energy prices, prolonged semiconductor shortages, and the recent sharp
depreciation of the yen.
Amid these conditions, the DNP Group worked to resolve social issues and create new valuethat meets people’s expectations, in order to realize a better, more sustainable society andenable more comfortable lifestyles. In addition to combining its unique strengths in printing andinformation (P&I) and deepening cooperation with its many partners, the Group has prioritizedand optimized allocation of management resources in fields that it designated as “focus
businesses” due to expectations of particularly high market growth and profitability: the Internetof things (IoT)/next-generation communications, data distribution, mobility, and environment. We
also worked to build a strong business portfolio by restructuring to enhance competitiveness.
As a result of the above, consolidated net sales for the first three months grew 0.8% year on
year to ¥334.4 billion, consolidated operating income grew 2.5% to ¥16.9 billion, consolidated
ordinary income grew 13.5% to ¥22.6 billion, and net income attributable to parent company
shareholders grew 5.8% to ¥15.7 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, sales of catalogs and pamphlets declined, but demand
increased for smart cards used by financial institutions and “My Number” (Japanese governmentID) cards, resulting in an overall increase in sales.
In Imaging Communication, sales increased due to strong sales of photographing and printing
materials and services in the core US market as well as European and Asian markets.
Our Publishing business enjoyed strong sales from the distribution of e-books and otherelectronic media, digital library services, and the outsourcing of library management operations.
However, orders for printing magazines and other paper media fell below the previous year’slevel, resulting in an overall decrease in Publishing sales.
As a result of the above, overall segment sales grew 0.3% year on year to ¥173.6 billion, but
operating income fell 6.3% to ¥4.7 billion due mainly to higher raw material prices.
Lifestyle and Industrial Supplies
In Packaging, we leveraged the strengths that we acquired through developing packages foreveryday consumer products like foods and household goods, and bolstered our efforts to design
more comfortable lifestyles for people. In addition, we worked to develop and sell DNP’s GREEN
PACKAGING series of eco-friendly packaging, and sales of film packaging products remained
strong. However, there was a decline in sales of the aseptic filling systems that performed wellin the previous fiscal year, resulting in an overall decline in Packaging sales.
In the Living Spaces business, sales of interior and exterior decorative materials for residential
use increased due to recovery in demand in the housing market. In addition, sales of decorative- 2 -films for automobile interiors and DNP Aluminum Decor Panel for interior and exterior use in the
North American market also increased, leading to an increase in overall sales in this business.
The High-Performance Industrial Supplies business was affected by changes in the overall
global supply chain, including lockdowns in China and temporary production cutbacks due toglobal shortages of semiconductors. Sales of lithium-ion battery pouches decreased, both forautomotive use and IT use, resulting in a decrease in sales for this business as a whole.
As a result of the above, overall segment sales fell 3.4% year on year to ¥92.7 billion, andoperating income fell 67.1% to ¥1.5 billion due to the big impact of soaring prices of raw materials
and energy.
Electronics
In the Display Components business, optical film products were affected by production
adjustments, mainly for films used in laptop PCs, due to a decline in demand relative to the surge
in “nesting demand” from people working and learning at home during the pandemic, but salesof films used for televisions were solid, and overall sales of optical films increased. Sales of metalmasks used in the manufacture of organic light-emitting diode (OLED) displays were also strong
due to increased demand for smartphone displays, resulting in an increase in sales for thisbusiness as a whole.
In the Electronic Devices business, demand for semiconductors expanded due to such factors
as increased investment in data centers, wider use of 5G and DX, and measures supporting thetransition toward a decarbonized society, and sales of various types of photomasks used in the
production of semiconductors increased. Also, sales were brisk for lead frames and other items
used in semiconductor packages, contributing to an increase in overall sales for the business.
As a result of the above, overall segment sales grew 9.1% year on year to ¥57.4 billion, andoperating income grew 29.8% to ¥16.2 billion due to the increase in sales.
[BEVERAGES]
Beverages
In response to lifestyle changes resulting from the COVID-19 pandemic and the growing needto reduce negative impact on the environment, we focused on online and in-store sales ofbeverages in label-free (including product name labels) PET plastic bottles. In addition, we
actively conducted campaigns through the smartphone app “CokeON” and focused on cultivating
new business partners.
Overall segment sales reached ¥11.0 billion (up 3.2% year on year) thanks to growth in sales
to mass retailers such as supermarkets and drugstores, as well as increased online sales. The
segment’s operating loss was ¥0.4 billion, compared to ¥0.2 billion yen in the same period of theprevious fiscal year, due mainly to soaring prices of raw materials and energy.
In the past few years, the DNP Group has formulated policies like the “DNP Group Declaration
on Health,” “DNP Group Diversity Declaration,” and “DNP Group Safety and Health Charter,” etc.,
in order to enable all employees to use their abilities to the maximum extent possible, and weare concentrating on restructuring our various personnel systems. These measures are basedon the conviction that when we value our employees, those employees who we valued will cause
the company to grow and will make society more prosperous. This fiscal year, we positioned thisconviction as our universal and basic approach to human resources, and established it as our“Human Capital Policy.”
Regarding human rights and labor, which have become particularly important in recent years,
one of the items in the DNP Group Code of Conduct is “Respect for human dignity and diversity.”
We are committed to respecting the diversity of all kinds of people and to conducting ourselves- 3 -in a disciplined manner. In 2020, we formulated the DNP Group Human Rights Policy based on
documents like the International Bill of Human Rights and the International Labor Organization’s
Declaration on Fundamental Principles and Rights at Work. Going forward, we will continue towork harder at respecting human rights throughout the DNP corporate Group, both in Japan andoverseas.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter decreased by ¥60.4 billion from the end of the previous
fiscal year to ¥1,816.1 billion, due mainly to a decline in investment securities.
Total liabilities decreased by ¥30.9 billion from the end of the previous fiscal year to ¥697.3
billion, due mainly to a decline in deferred tax liabilities.
Net assets decreased by ¥29.5 billion from the end of the previous fiscal year to ¥118.8 billion,
due mainly to 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 2023 are unchanged from the forecasts
announced on May 13, 2022.

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

As of March 31, 2022

As of June 30, 2022

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 -287,334

266,466

324,846

316,583

17,90080,38530,98030,25533,804(693)
804,813

17,90086,702
32,69532,25238,363(643)
790,320

160,506
70,830139,573
25,64025,325421,875

160,176
70,065
139,606
31,67024,927426,446

27,747
27,74728,44928,449410,266
213,902(1,957)622,210
1,071,834
1,876,647

357,268
215,582(1,873)570,976
1,025,872
1,816,192

(Million yen)

As of March 31, 2022

As of June 30, 2022

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

236,188
33,990237,852
25,465Reserve for bonuses

20,3677,850

Repair reserve

17,252

17,525

Other

98,308105,991

Total current liabilities

406,108

394,686

Bonds

102,500

100,500

Long-term debt

14,254

14,040

Repair reserve

28,03625,961

Net defined benefit liability

55,88856,239Deferred tax liabilities

102,275

87,416Other

19,17018,463

Total long-term liabilities

322,125

302,622728,233

697,308

Common stock

114,464

114,464

Capital surplus

145,143

145,141

Retained earnings

740,183

746,846

Treasury stock(133,123)(136,394)

Total stockholders’ equity

866,667

870,058

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

192,994

155,21645

96

Foreign currency translation adjustments

4,220

9,356

Remeasurements of defined benefit plans

27,932

26,594

Total accumulated other comprehensive
income225,193

191,264

Non-controlling interests

56,552

57,560TOTAL NET ASSETS

1,148,413

1,118,883

TOTAL LIABILITIES AND NET ASSETS

1,876,647

1,816,192

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, 2021

Three months ended
June 30, 2022

Net sales

331,919

334,433

Cost of sales

259,389

259,823

Gross profit

72,53074,609Selling, general and administrative expenses

56,02357,691

Operating income

16,506

16,917

2,037
1,812
909
4,759

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

188
243
904
1,336

176
347
809
1,334

19,92922,628

449

1,090

–

408

–
449

4
1,504

402
146
102
651

308
70
280
658

19,72823,474

3,192
640
3,833
15,894

3,825
3,021
6,847
16,6271,015

887

14,87815,739Non-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 reversal of asset retirement
obligations
Other
Total extraordinary gains
Extraordinary losses
Loss on sale or disposal of fixed assets
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- 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 (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- 8 -Three months ended
June 30, 2021

Three months ended
June 30, 2022

15,894

16,627200(37,950)(5)
4,296(1,397)53
4,581(1,562)

1,169

1,275

4,263
20,158(33,602)(16,975)

18,724
1,433(18,189)
1,214

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥3,270 million during the first three months of the fiscal year ending
March 2023, due mainly to share repurchases based on a resolution passed by the Board of
Directors on May 13, 2022.
[Segment information]
I. First three months of previous fiscal year (April 1, 2021 – June 30, 2021)
Information on sales and income/loss by reporting segment and income analysis information
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

172,636

95,93852,638Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincomeNote 2

Net salesNote3
Outside customers

10,705331,919–331,919

Inter-segment

431

38

–

3

473

(473)

–

Total

173,068

95,97752,63810,708332,393(473)

331,919

5,035

4,661

12,498(272)

21,923(5,416)

16,506

Segment income (loss)

Notes:

1.
2.
3.

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.
Segment income (loss) 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, 2022 – June 30, 2022)
Information on sales and income/loss by reporting segment and income analysis information
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

173,283

92,64757,454Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofincomeNote 2

Net salesNote3
Outside customers

11,049334,433–

334,433

Inter-segment

325

64

–

1

391

(391)

–

Total

173,608

92,71157,454

11,050334,824(391)

334,433

4,716

1,531

16,229(466)

22,010(5,092)

16,917

Segment income (loss)

Notes:

1.
2.
3.

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.
Segment income (loss) 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 -