Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2020
[J-GAAP]
August 7, 2019

Company Name:
Dai Nippon Printing Co., Ltd.
Stock exchange listing:Tokyo
Stock code:
7912
URL: https://www.dnp.co.jp/
Representative:
Yoshinari Kitajima, President
Contact person:
Takaaki Tamura, General Manager, Corporate Communication
Telephone:+81-3-6735-0101
Securities report issuing date:August 8, 2019
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 three months ended June 30, 2019
(April 1, 2019 – June 30, 2019)(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, 2019
Three months ended
June 30, 2018

Million yen%

Million yen%

Million yen%

Million yen%

344,575

0.5

13,823

15.6

17,04012.1

18,015

77.7

342,969(0.2)

11,95545.2

15,19828.8

10,13932.7

Note: Comprehensive income: For the first three months ended June 30, 2019: ¥30,720 million (5.7%)
For the first three months ended June 30, 2018: ¥29,051 million (71.1%)
Diluted Net Incomeper ShareNet Income per ShareThree months ended
June 30, 2019
Three months ended
June 30, 2018

YenYen

59.69

59.68

33.62

33.61

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of June 30, 2019

1,783,057

1,067,475

57.0

As of March 31, 2019

1,775,022

1,046,622

56.1

Note: Stockholders’ equity as of June 30, 2019: ¥1,015,678 million

As of March 31, 2019: ¥996,162 million

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

Year ended
March 31, 2019Year ending
March 31, 2020–

SecondQuarter-end

Third
Quarter-end

32.00

–

Year-end

32.00

Total

64.00

–

Year ending March 31, 2020
32.00
–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the current quarter: No64.00

3. Consolidated earnings forecasts for the year ending March 31, 2020
(April 1, 2019 – March 31, 2020)(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toNet Income
Operating Income
Ordinary Income
Parent Company
per Share
Shareholders

Net Sales%Yen

1,416,000
1.0
51,0002.2
58,5000.4
51,000–Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

168.98Full year

Million yen%

Million yen%

Million yen%

Million yen

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: 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. Quarterly consolidated financial statements and key notes, (3)Notes regarding quarterly consolidated financial statements [Changes in accounting policies]” on page 8.

(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 thefiscal year)

As of June 30, 2019324,240,346
shares

As of March 31, 2019324,240,346
shares

As of June 30, 201922,421,197
shares

As of March 31, 201922,420,745
sharesThree months ended
June 30, 2019

301,819,359
sharesThree months ended
June 30, 2018301,563,521
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 theconsolidated results for the current quarter (3) Explanation of the consolidated earnings forecasts,” onpage 3.

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 and key notes............................................. 4(1) Quarterly consolidated balance sheets ......................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income ........................................................................... 6Quarterly consolidated statements of income
First three months of the fiscal years ......................................................................... 6Quarterly consolidated statements of comprehensive income
First three months of the fiscal years ......................................................................... 7(3) Notes regarding quarterly consolidated financial statements..................................... 8[Notes on premise of a going concern].......................................................................... 8[Significant changes in shareholders’ equity] ............................................................... 8[Changes in accounting policies] ................................................................................... 8[Segment information, etc.] ............................................................................................. 81

1. Qualitative information on the consolidated results for the current quarter(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group during the first three months of the fiscal year
ending March 2020 reflected continued decline in demand for printed media but market growthfor e-books and online advertising with stronger consumer-specific digital marketing activities.
Cashless payment initiatives are also picking up, with the Tokyo 2020 Olympic and Paralympic
Games about a year away. Further, as a global trend, there has been a rising demand forenvironmentally conscious products and services and growing initiatives for the next-generation
automotive society, allowing the DNP Group to capture new growth opportunities.
In this environment, the DNP Group is bolstering its core businesses with a particular focus
on its competitive products such as smart cards, thermal transfer printing media for photoprinters, battery pouches for lithium-ion batteries, optical films for displays, and metal masks
used for organic light-emitting diode (OLED) display production. The DNP Group is also
pursuing “P&I innovations” that combine its strengths in printing and information (P&I) to create
new value based on its growth areas of Knowledge and Communication, Food and Healthcare,
Lifestyle and Mobility, and Environment and Energy. For this first quarter, the DNP Group
continued to strengthen its business competence by enhancing its business portfolio throughselection and concentration along with various structural reforms.
As a result of these efforts, consolidated net sales for the first three months grew 0.5% year
on year to ¥344.5 billion, consolidated operating income grew 15.6% to ¥13.8 billion,
consolidated ordinary income grew 12.1% to ¥17.0 billion, and net income attributable to parent
company shareholders grew 77.7% to ¥18.0 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, the DNP Group worked on solving challenges in the publicationindustry by leveraging its strength as the sole company group involved in all parts of the supply
chain including publication planning, advertising, manufacturing, distribution, and sales.
However, sales in the Publishing & Media Services business decreased for both books andmagazines due to a slump in the publication market. In the Publications Distribution business,sales of e-books were favorable in the “honto” hybrid bookstore network, which combines
physical bookstores, online bookstores, and e-book services, and sales from library operations
outsourcing services also rose on a higher number of contracting libraries. However, sales
declined overall due to a lower number of large projects related to the design and constructionof educational facilities, research facilities, and libraries.
In the Information Innovation business, sales increased overall despite a decline in flyers,
pamphlets, and catalogs, thanks to smooth growth in core businesses such as smart cards,
which demand has been growing on progress of cashless initiatives, and Business Process
Outsourcing (BPO), which handles business processes on behalf of companies in response tolabor shortages and work reforms.
In the Imaging Communication business, sales grew on higher sales of thermal transfer
printing media for photo printers globally and favorable progress of the “value creation”
business, which aims to enhance people’s experiences through photos.
Operating income grew thanks to the expansion of the Information Innovation and Imaging
Communication businesses.
As a result of the above, overall segment sales grew 0.7% year on year to ¥190.6 billion, andoperating income grew 12.2% to ¥6.8 billion.
Lifestyle and Industrial Supplies
In the Packaging business, the DNP Group worked to develop and sell environmentallyconscious products such as mono-material packages, which are relatively easy to recycle, andpaper containers for liquid, which can be easily segregated for disposal. Despite declines insales of paper packages and molded plastic products, the segment’s sales increased overall,2

owing to solid sales of film packages and higher sales of aseptic filling systems.
In the Living Spaces business, the DNP Group made its debut at the Milano Design Week
2019 in Italy in April to demonstrate its sophisticated design and technology, which received
favorable reviews. Despite new housing starts being sluggish in Japan, the Living Spaces
business secured broadly flat sales year on year as a result of focusing on sales ofenvironmentally conscious products that combine the DNP Group’s high design qualities andthe functionality of its proprietary electronic beam (EB) coating technology.
In the Industrial Supplies business, sales grew overall as full-fledged progress in vehicle
electrification resulted in significant growth of battery pouches for lithium-ion batteries used in
automotive applications and year-on-year growth in photovoltaic module components.
Operating income increased due to higher sales in the Packaging and Industrial Supplies
businesses.
As a result of the above, overall segment sales grew 1.3% year on year to ¥95.1 billion, andoperating income grew 35.8% to ¥1.8 billion.
Electronics
In the Display Components business, sales of metal masks for OLED display production
increased owing to the favorable progress in the shift to OLED displays from LCD displays forsmartphones. However, sales decreased for LCD color filters. Sales of optical films for LCD TVs
also declined due to the downturn of the LCD panel market.
In the Electronic Devices business, semiconductor photomask sales were solid despite being
affected by the deteriorating semiconductor market.
Operating income grew thanks to the expansion of core businesses.
As a result of the above, overall segment sales fell 2.5% year on year to ¥48.0 billion, but
operating income grew 6.2% to ¥10.4 billion.
[BEVERAGES]
Beverages
The DNP group released new products in core brands such as Coca-Cola and Sokenbicha, andworked to expand share in existing markets and acquire new customers by expanding its
vending machine business and promoting products for mass retailers.
As a result, while sales volume increased, overall segment sales fell 0.5% year on year to¥11.7 billion, and operating income fell 94.7% to ¥0.0 billion due to fiercer price competition
resulting from consumers’ preference for low-price products.
(2) Explanation of the consolidated financial position
Total assets at the end of the first quarter increased by ¥8.0 billion year on year to ¥1,783.0
billion due mainly to an increase in investment securities.
Total liabilities decreased by ¥12.8 billion year on year to ¥715.5 billion due mainly to adecrease in short-term bank loans.
Net assets increased by ¥20.8 billion year on year to ¥1,067.4 billion due mainly to anincrease in valuation difference on available-for-sale securities.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2020 are unchanged from the forecasts
announced on May 14, 2019.

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

As of March 31, 2019

As of June 30, 2019ASSETS
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
OtherTotal 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

268,046
351,450
79,80930,07423,18748,226(1,515)799,280

282,983
331,631
82,96031,72824,28945,059(1,371)
797,281

183,878
67,514
147,924
11,76030,042
441,120

178,988
65,776
147,108
13,77429,669435,317

28,91428,91428,50528,505393,104
114,918(2,315)505,707975,742
1,775,022

410,024
114,212(2,285)
521,951
985,775
1,783,057

(Million yen)

As of March 31, 2019

As of June 30, 2019

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

246,138
42,474248,413
33,123

Bonds redeemable within 1 year

51,49051,490Reserve for bonuses

18,145

7,046

Repair reserve

19,162

19,530Other90,24594,038

Total current liabilities

467,655

453,643

Bonds

59,61059,465Long-term debt

10,0459,562

Repair reserve

70,211

65,210Net defined benefit liability

34,73334,867

Deferred tax liabilities

65,30071,892

Other

20,84520,939Total long-term liabilities

260,745

261,937

728,400

715,581

Common stock

114,464

114,464

Capital surplus

144,765

144,766

Retained earnings

626,949

635,304

Treasury stock(62,898)(62,899)

Total stockholders’ equity

823,281

831,635

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

170,073

181,277(1)2

Foreign currency translation adjustments(2,398)(2,400)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income

5,208

5,163

172,881

184,043

Non-controlling interests

50,45951,796TOTAL NET ASSETS

1,046,622

1,067,475

TOTAL LIABILITIES AND NET ASSETS

1,775,022

1,783,057

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity5(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, 2018342,969

Three months ended
June 30, 2019344,575

Cost of sales

274,073

272,062

Gross profit

68,89572,512

Selling, general and administrative expenses

56,94058,689Operating income

11,955

13,823

2,441
1,582
1,367
5,391

2,632
1,437
1,130
5,200

538
572
1,037
2,147

497
247
1,237
1,983

15,19817,040

36
2,023
67
2,127

9,368
–
30
9,399

762
430
73
1,266

533
304
7
845

16,05925,594

2,035
2,506
4,542
11,517

3,392
2,818
6,210
19,383

1,377

1,367

10,13918,015Net sales

Non-operating income
Interest and dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expense
Interest expense
Contributions
Other
Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of fixed assets
Gain on sale of stock in affiliates
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-controllingshareholdersNet income attributable to parent company
shareholders

6

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

Net income
Other comprehensive income
Valuation difference on available-for-salesecurities
Net deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Share of other comprehensive income ofaffiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

7Three months ended
June 30, 2018Three months ended
June 30, 2019

11,517

19,383

21,373

11,08914(4,149)
340

6369
(246)

(44)

118

17,53429,051

11,33730,72027,921
1,129

29,176
1,543

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
None[Changes in accounting policies]
The DNP Group’s IFRS-applied subsidiaries have applied IFRS 16 (leases) as of the firstquarter of this fiscal year. Accordingly, for lessee’s lease transactions, in principle the Companyrecognizes all right of use assets and lease obligations and book depreciation expenses fromright of use assets and interest expenses from lease obligations.
Of note, the application of the said accounting standards has limited impact on theCompany’s quarterly financial statements.

[Segment information, etc.]
I. First three months of previous fiscal year (April 1, 2018 – June 30, 2018)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

Beverages

Total(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2
incomeNet sales
188,230

93,56349,334

11,841

342,969–

342,969

Inter-segment

Outside customers

1,124

380–

2

1,506

(1,506)–

Total

189,354

93,94349,334

11,844344,476(1,506)

342,969

6,103

1,345

9,869

308

17,627(5,672)

11,955

Segment income

Notes:

1.
2.

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.

II. First three months of current fiscal year (April 1, 2019 – June 30, 2019)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

189,877

94,83248,085Beverages

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

11,780344,575–

344,575

Inter-segment

772

296

–

3

1,072

(1,072)–

Total

190,650

95,12848,085

11,783345,647(1,072)

344,575

6,845

1,828

10,48616

19,176(5,353)

13,823

Segment income

Notes:

1.
2.

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.

8