Consolidated Financial Results
for the First Nine Months of the Fiscal Year Ending March 31, 2017 [J-GAAP]
February 9, 2017

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, 2017
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, 2016
(April 1, 2016 – December 31, 2016)(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, 2016
Nine months ended
December 31, 2015

Million yen%

Million yen%

Million yen%

Million yen%

1,050,062(3.7)

22,387(30.2)

27,072(31.4)

25,135(7.0)

1,090,163(0.1)

32,090(10.4)

39,472(3.7)

27,03610.0

Note: Comprehensive income: For the first nine months ended December 31, 2016: ¥24,633 million (60.9%)
For the first nine months ended December 31, 2015: ¥15,314 million (-86.8%)
Diluted Net Income
per Share

Net Income per Share

Nine months ended
December 31, 2016
Nine months ended
December 31, 2015

Yen

Yen

40.57

40.57

42.66

42.40

(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of December 31, 2016

1,677,224

1,052,912

60.0

As of March 31, 2016

1,718,636

1,063,24159.2

Note: Stockholders’ equity as of December 31, 2016: ¥1,006,157 million

As of March 31, 2016: ¥1,017,425 million

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

Year ended
March 31, 2016
Year ending
March 31, 2017

SecondQuarter-end

Third
Quarter-end

–

16.00

–

–

16.00

–

Year-end

16.00

Year ending March 31, 2017
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, 2017
(April 1, 2016 – March 31, 2017)(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%Yen1,420,000 (2.5)
32,000 (29.6)
36,000 (31.6)
28,000 (16.6)
Note: Revisions to the most recently announced earnings forecasts during the current quarter: No

45.27

Full 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:Yes3) Changes in accounting estimates:
Yes
4) 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,
2016663,480,693
shares

As of March 31, 2016

680,480,693
shares

As of December 31,
2016

48,167,370
shares

As of March 31, 2016

51,919,577
sharesNine months ended
December 31, 2016

619,477,396
sharesNine months ended
December 31, 2015

633,801,476
shares* Presentation 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 ..................................................................... 6(1) Quarterly consolidated balance sheets ......................................................................... 6(2) Quarterly consolidated statements of income and quarterly consolidated
statements of comprehensive income .......................................................................... 8
Quarterly consolidated statements of income
First nine months of the fiscal years ......................................................................... 8
Quarterly consolidated statements of comprehensive income
First nine months of the fiscal years ......................................................................... 9(3) 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
Japan’s economy gradually recovered during the first nine months of the fiscal year, withcorporate earnings and the employment environment improving as a result of the economic
policies of the Japanese government and the monetary easing policies of the Bank of Japan.
However, the economy has still not reached a full-fledged recovery, due partly to a stronger yen,sluggish consumer spending, and overseas economic slowdowns in China and elsewhere.
The printing industry still faced a tough business environment, as demand continued to
decline for printed media, including published printed materials.
In this environment, the DNP Group (DNP), based on the DNP Group Vision 2015 and four
growth areas of “Knowledge and Communication,” “Food and Healthcare,” “Lifestyle andMobility,” and “Environment and Energy,” focused on creating new value through P&I
innovations as a combination of its strengths in printing and information and worked to expand
its business. It also implemented structural reforms to bolster competitiveness, working toreorganize and consolidate business divisions and group companies and establish operatingbases.
Despite these efforts, consolidated net sales for the first nine months fell 3.7% year on yearto ¥1,050.0 billion, consolidated operating income fell 30.2% to ¥22.3 billion, consolidated
ordinary income fell 31.4% to ¥27.0 billion, and net income attributable to parent company
shareholders fell 7.0% to ¥25.1 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Publishing business, amid an ongoing slump in the publication market, Publishing &Media Services fell below year-ago levels on a large decline in magazines, although book sales
increased from last year as a result of sales and planning activities. In the Education andPublications Distribution business, DNP worked to expand business in the “honto” hybrid
bookstore network that combines physical bookstores, online bookstores, and e-book sales
services, including by launching Book Tree in October 2016 as a new service that introduces
books chosen based on unique themes by book experts such as authors and bookstore
employees. Library outsourcing sales also increased from the previous year on growth in thenumber of outsourcing libraries. However, overall sales in the Publishing business decreased
from the previous year.
In the Information Innovation business, sales were sluggish for advertising flyers, but
increased for point-of-purchase promotional materials (POP) and other such products, and werealso firm for catalogs and pamphlets. Sales were also favorable in information security-related
business, mainly smart cards for financial institutions and electronic money and Information
Processing Services (IPS; handling data entry, printing, and shipment of personalized mail andother items). Overall sales increased from the previous year.
In the Imaging Communication business, in addition to expanding sales for the DreamPages
photobook service, DNP worked to expand services that use its “ShaGoo!” automatedcommemorative photo booths and “Ki-Re-i” ID photo booths. However, sales decreased fromthe previous year as the strong yen contributed to a decline in sales of dye-sublimation thermaltransfer printing media for photo printers (color ink ribbons and receiver paper) in overseas
markets, including North America and Europe.
As a result of the above, overall segment sales fell 2.4% year on year to ¥594.4 billion andoperating income fell 28.5% to ¥13.7 billion.
Lifestyle and Industrial Supplies
In the Packaging business, paper packaging fell below year-ago levels, but overall sales

2increased from the previous year as plastic film packaging and molded products held flat year
on year and PET plastic bottle aseptic filling systems recorded strong sales.
In the Living Space business, sales held flat year on year as DNP focused on expanding
domestic sales and developing overseas markets, based mainly on environmentally conscious
products that use its proprietary electron beam (EB) coating technology.
In the Industrial Supplies business, sales of lithium-ion battery components increased forautomotive applications, but were sluggish for mobile device applications. Photovoltaic module
components also declined, affected by a domestic market slump, and overall sales decreased
from the previous year.
As a result of the above, overall segment sales grew 1.6% year on year to ¥290.1 billion andoperating income grew 27.8% to ¥11.0 billion.
Electronics
In the Display Components business, sales of LCD color filters declined for both small- andmedium-sized filters for smartphones and tablets and large filters for TVs. Optical film sales also
declined across the board, mainly for polarizers, and overall sales decreased from the previous
year.
In the Electronic Devices business, sales decreased from the previous year as
semiconductor photomasks were sluggish both in Japan and overseas.
As a result of the above, overall segment sales fell 19.0% year on year to ¥125.9 billion andoperating income fell 35.1% to ¥10.8 billion.
[BEVERAGES]
Beverages
Amid continued tough competition for market share, due partly to price competition between softdrink makers, DNP worked to expand share in existing markets, improve profitability, andacquire new customers by bolstering sales of core brand products through the release of new
products, and by focusing on the vending machine business by leveraging area marketing andoperational expertise.
As a result of these efforts, sales increased for I LOHAS, a brand of mineral water that uses alightweight PET plastic bottle, and for unsweetened tea drinks, including the mainstay Ayataka
brand. However, sales decreased to group bottlers outside the Hokkaido region and for the
Coca-Cola brand. Overall segment sales fell 2.0% year on year to ¥43.3 billion, but operating
income grew 141.8% to ¥2.3 billion.
(2) Explanation of the consolidated financial position
Total assets at the end of the third quarter decreased by ¥41.4 billion from the end of theprevious fiscal year to ¥1,677.2 billion, due mainly to decrease for merchandise and finishedproducts.
Total liabilities decreased by ¥31.0 billion from the end of the previous fiscal year to ¥624.3
billion, due mainly to decrease in short-term bank loans.
Net assets decreased by ¥10.3 billion from the end of the previous fiscal year to ¥1,052.9
billion, due mainly to a decrease in retained earnings.
As a result of the above, the equity ratio changed from 59.2% 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 2017 are unchanged from the forecasts
announced on November 10, 2016.

3

2. Summary information (notes)
Changes in accounting policies, changes in accounting estimates, and restatement ofrevisions(Changes in accounting policies)(Application of Revised Implementation Guidance on Recoverability of Deferred Tax
Assets)DNP has applied the “Revised Implementation Guidance on Recoverability of Deferred Tax
Assets” (ASBJ Guidance No. 26, March 28, 2016), and revised some accounting methods
related to the recoverability of deferred tax assets, starting in the first quarter of the current fiscal
year.
DNP has applied the Revised Implementation Guidance on Recoverability of Deferred Tax
Assets in line with transitional measures stipulated in Paragraph 49 (4) of said guidance. Any
differences between the amounts of deferred tax assets and deferred tax liabilities when
applying the provisions in Paragraph 49 (3), Items 1–3, of said guidance at the start of the firstquarter of the current fiscal year, and the amounts of deferred tax assets and deferred tax
liabilities at the end of the previous fiscal year, have been added to retained earnings at the startof the first quarter of the current fiscal year.
These changes have an immaterial impact on the quarterly financial statements at the startof the first quarter of the current fiscal year.
(Application of Practical Solution on a Change in Depreciation Method Due to Tax
Reform 2016)
DNP and some domestic consolidated subsidiaries, in line with amendment of the Corporation
Tax Act, have applied the “Practical Solution on a Change in Depreciation Method Due to Tax
Reform 2016” (ASBJ Practical Issue Task Force (PITF) No. 32, June 17, 2016), and havechanged the depreciation method for buildings and accompanying facilities as well as forstructures acquired on or after April 1, 2016 from declining balance depreciation to straight-line
depreciation, starting in the first quarter of the current fiscal year.
These changes have an immaterial impact on the quarterly financial statements for the firstnine months of the current fiscal year.
(Changes in accounting policies that are difficult to distinguish from changes inaccounting estimates)(Changes in depreciation method and service life)
DNP consolidated subsidiary Hokkaido Coca-Cola Bottling Co., Ltd. (hereinafter, HCCB) andthe consolidated subsidiaries of HCCB (hereinafter, HCCB Group) previously depreciatedtangible fixed assets mainly using declining balance depreciation, but have changed tostraight-line depreciation starting in the first quarter of the current fiscal year.
This change is based on a review of the current production structure and use of fixed assets,
and the medium- to long-term capital investment strategy, in order to respond to changes in themarket environment, including stiffer completion from the full-scale entrance of rival companies
and diversifying consumer needs.
The HCCB Group’s tangible fixed assets are expected to produce average and stable
investment effects over their service life based on long-term use and stable production.
Accordingly, the HCCB Group has changed its depreciation method for tangible fixed assets
from declining balance depreciation to straight-line depreciation starting in the first quarter of thecurrent fiscal year, based on a judgement that equal cost allocation over the usable period canbetter reflect the usage conditions of its tangible fixed assets, and from a revenue and expense
standpoint, can better reflect its business performance.
Additionally, HCCB had mainly applied a service life of 5–6 years to vending machines, but
because it is expanding the introduction of vending machines with greater durability, concurrent
with the change in depreciation method, it has changed to a nine-year service life to better4reflect actual conditions, starting in the first quarter of the current fiscal year.
Compared with the previous methods, the above changes increased operating income by¥1,005 million, and ordinary income and income before income taxes and non-controllinginterests by ¥1,016 million, in the first nine months of the current fiscal year.

53. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Million yen)
As of March 31, 2016

As of December 31, 2016

ASSETS
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

6

171,694
348,585
101,239
29,68625,021
46,847(1,349)721,724

173,092
346,765
84,54431,71024,72836,548(1,446)695,942

217,516
89,549155,532
14,94635,611
513,156

208,322
81,636
155,260
16,58233,379495,181

35,80235,802

34,697
34,697

362,654
91,722(6,424)447,952
996,911
1,718,636

368,93188,039(5,569)451,402981,281
1,677,224

(Million yen)
As of March 31, 2016

As of December 31, 2016

LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

255,585
55,316247,156
33,238Reserve for bonuses

17,333

6,676–

17,616

Other

95,07884,088

Total current liabilities

423,313388,776

Bonds

107,560

109,640

Long-term debt

18,19012,904

Net defined benefit liability

34,16734,183

Deferred tax liabilities

48,88456,240Other

23,27822,568

Total long-term liabilities

232,080

235,536

655,394

624,312

Common stock

114,464

114,464

Capital surplus

144,283

144,282

Retained earnings

717,029695,707

Treasury stock(81,024)(69,488)

Total stockholders’ equity

894,752

884,965

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

123,478

135,061(6)15Foreign currency translation adjustments

3,050(9,252)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income(3,849)(4,632)

122,672

121,191

Stock acquisition rights

16–

Non-controlling interests

45,80046,755TOTAL NET ASSETS

1,063,241

1,052,912

TOTAL LIABILITIES AND NET ASSETS

1,718,636

1,677,224

Repair reserve

Long-term liabilities

TOTAL LIABILITIESNET ASSETSStockholders’ equity7(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, 2015
1,090,163

Nine months ended
December 31, 2016
1,050,062

Cost of sales

879,233

851,297

Gross profit

210,930

198,765

Selling, general and administrative expenses

178,839

176,377

Operating income

32,09022,387

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

5,085
2,379
3,759
11,223

1,843
3,054
4,898

1,671
4,867
6,538

39,472

27,072

217
7,344
463
8,025

944
40,277
3,718
44,939

1,052
2,403
1,670
684
5,810

2,358
–
30,2181,401
33,97841,68638,034

7,177
6,487
13,66428,0228,596
2,333
10,93027,103985

1,968

27,03625,135Net 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
Production restructuring costs
Repair costs and repair reserve provisions
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)

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

9

Nine months ended
December 31, 2015

Nine months ended
December 31, 2016

28,022

27,103(3,481)

11,77342(6,189)(5,093)31(11,336)
646

2,013

(3,585)(12,707)
15,314(2,470)24,633

15,252
61

23,654978

(3) Notes regarding quarterly consolidated financial statements[Notes on premise of a going concern]
None[Significant changes in shareholders’ equity]
Treasury stock increased by ¥15,028 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 12, 2016.
Additionally, retained earnings decreased by ¥26,564 million and treasury stock decreasedby ¥26,564 million during the first nine months of the current fiscal year due to the cancellationof treasury stock on May 26, 2016 based on a resolution passed by the Board of Directors on
May 12, 2016.
[Segment information, etc.]
I. First nine months of previous fiscal year (April 1, 2015 – December 31, 2015)
Information on sales and income/loss by reporting segment
Reporting segment(Million yen)Amounts
reported on
Adjustment
quarterly
Note 1
consolidated
statements ofNote 2incomeInformation
Communication

Lifestyle andIndustrial
Supplies

Electronics

605,525

284,973

155,451

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)

32,090Beverages

Total

Net sales
Outside customers

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, 2016 – December 31, 2016)
1. 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 2incomeNet sales
Outside customers

591,256

289,520

125,986

43,2991,050,062–

1,050,062

Inter-segment

3,225

602

–

36

3,864

(3,864)–

Total

594,481

290,122

125,986

43,336

1,053,927(3,864)

1,050,062

Segment income

13,702

11,056

10,892

2,319

37,971(15,583)

22,387

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

2. Changes in reportable business segments, etc.
(Changes in depreciation method and service life)
DNP consolidated subsidiary Hokkaido Coca-Cola Bottling Co., Ltd. and its consolidated
subsidiaries have changed the depreciation method and service life for tangible fixed assets startingin the first quarter of the current fiscal year, as noted in the section, “Changes in accounting policies
that are difficult to distinguish from changes in accounting estimates.”Compared with the previous methods, these changes increase Beverages segment income by¥1,005 million in the first nine months of the current fiscal year.

11