Consolidated Financial Results
for the First Six Months of the Fiscal Year Ending March 31, 2021 [J-GAAP]
November 10, 2020

Dai Nippon Printing Co., Ltd.
Company Name:Tokyo
Stock exchange listing:
7912
URL: https://www.dnp.co.jp/eng/
Stock code:
Yoshinari Kitajima, President
Representative:
Contact person:
Daisuke Sasaki, General Manager, IR and Public Relations Division
Telephone:+81-3-6735-0124
Securities report issuing date:November 10, 2020
Dividend payment date:
December 10, 2020
Preparation of quarterly earnings presentation material: Yes
Holding of quarterly results briefing: Yes (for institutional investors and analysts)(Amounts under one million yen have been rounded down.)
1. Consolidated financial results for the first six months ended September 30, 2020
(April 1, 2020 – September 30, 2020)(1) Consolidated financial results(Percentages show change from corresponding year-ago period.)
Net Income
Attributable toOperating Income
Ordinary Income
Parent Company
Shareholders

Net Sales

Six months ended
September 30, 2020
Six months ended
September 30, 2019

Million yen%

Million yen%

Million yen%

Million yen%

644,638(7.1)

17,563(31.6)

21,793(25.9)

11,434(84.9)

694,150

1.3

25,68912.5

29,42013.8

75,495345.9

Note: Comprehensive income: For the first six months ended September 30, 2020: ¥57,366 million (+70.3%)
For the first six months ended September 30, 2019: ¥33,679 million (-52.9%)
Diluted Net Income
per Share

Net Income per ShareSix months ended
September 30, 2020
Six months ended
September 30, 2019

Yen

Yen

40.71

40.54

250.28250.26(2) Consolidated financial position
Total Assets

Net Assets

Equity Ratio

Million yen

Million yen%

As of September 30, 2020

1,730,376

1,016,484

55.7

As of March 31, 2020

1,721,724

968,57453.2

Note: Stockholders’ equity: As of September 30, 2020: ¥963,639 million

As of March 31, 2020: ¥915,779 million

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

Year ended
March 31, 2020
Year ending
March 31, 2021

SecondQuarter-end

–

32.00

–

32.00

Third
Quarter-end

Year-end

–

Total

32.00

64.00

Year ending March 31, 2021–
32.00
(Forecasts)
Note: Revisions to the most recently announced dividend forecasts during the second quarter: No

64.00

3. Consolidated earnings forecasts for the year ending March 31, 2021
(April 1, 2020 – March 31, 2021)(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%

Yen

1,340,000 (4.4)
40,000 (28.9)
48,000 (24.7)
21,000 (69.8)
Note: Revisions to the most recently announced earnings forecasts during the second quarter: No

74.77

Full year

Million yen%

Million yen%

Million yen%

Million yen

Other information(1) Changes in significant subsidiaries during the second 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 September 30,
2020

324,240,346
shares

As of March 31, 2020

324,240,346
shares

As of September 30,
2020

43,361,046
shares

As of March 31, 2020

43,359,344
sharesSix months ended
September 30, 2020

280,880,250
sharesSix months ended
September 30, 2019

301,649,646
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 second quarter (3) Explanation of the consolidated earnings forecasts,” on page
4.
The DNP Group will hold a results briefing (conference call) for institutional investors and analysts on
November 12, 2020. Materials used at the briefing will be uploaded to the DNP website at around 14:00
JST the same day.

Contents
1. Qualitative information on the consolidated results for the second 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 ...................................................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 six months of the fiscal years ...........................................................................7
Quarterly consolidated statements of comprehensive income
First six months of the fiscal years ...........................................................................8(3) Quarterly consolidated statements of cash flows........................................................9(4) Notes regarding quarterly consolidated financial statements .................................. 11[Notes on premise of a going concern] ...................................................................... 11[Significant changes in shareholders’ equity] ............................................................ 11[Segment information, etc.] ......................................................................................... 111

1. Qualitative information on the consolidated results for the second quarter(1) Explanation of the consolidated financial results
Business conditions surrounding the DNP Group during the first six months of the fiscal year
ending March 2021 were extremely adverse, with a sharp retrenchment in consumer spending
and corporate activity and a decline in demand for various printed materials due to the impact of
the novel coronavirus disease (hereafter, COVID-19). Despite the gradual resumption of
economic activity in some countries and regions in the latter half of this period, the pace ofeconomic recovery remained slow and conditions remained unstable. However, uptake of remote
working increased, demand for educational ICT (information and communications technology)
and online medical consultations grew, and a global focus on reducing environmental impact
resulted in greater demand for environmentally conscious products and services.
Amid these major changes, the DNP Group worked to build a strong business portfolio by
optimizing the allocation of management resources and restructuring to enhancecompetitiveness, primarily in focus areas with high profitability and prospects for market growthsuch as the Internet of Things (IoT)/next-generation communications, data distribution,
environment, and mobility. It also worked to strengthen the business base needed to support
sustainable growth for the entire DNP Group by stepping up its initiatives in areas including theenvironment, human capital, and human rights.
Despite these efforts, consolidated net sales for the first six months fell 7.1% year on year to¥644.6 billion, consolidated operating income fell 31.6% to ¥17.5 billion, consolidated ordinary
income fell 25.9% to ¥21.7 billion, and net income attributable to parent company shareholders
fell 84.9% to ¥11.4 billion.
Business segment results are presented below.
[PRINTING]
Information Communication
In the Information Innovation business, areas such as ID cards (mainly Japan’s social security
and tax number (“My Number”) cards) and Business Process Outsourcing (BPO) saw steady
growth, partly reflecting an increase in demand driven by government stimulus measures. BPO
services handle business processes on behalf of companies seeking to respond to labor
shortages and work-style reforms. However, overall sales in the Information Innovation businessdeclined due to the postponement and cancellation of events throughout Japan, including theTokyo 2020 Olympic and Paralympic Games, a reduction in promotional campaigns and otheradvertising demand, and a decline in sales of pamphlets, catalogs and other printed media.
In the Imaging Communication business, sales declined as opportunities to shoot and print
photos at tourist destinations and event venues decreased due to government stay-at-homerequests, which considerably reduced sales of related products and services.
In the Publishing business, more time spent at home due to government stay-at-homerequests and school closures drove favorable e-book sales trends in the “honto” hybrid bookstore
network, which handles both printed and electronic books. However, overall sales in the
Publishing business declined due to the continuing downtrend in printing orders for books andmagazines.
As a result of the above, overall segment sales fell 8.6% year on year to ¥346.3 billion, andoperating income fell 49.9% to ¥6.4 billion due to the decline in sales.
Lifestyle and Industrial Supplies
In the Packaging business, demand increased for packaging for pharmaceuticals and sanitarymaterials in response to COVID-19, but demand for commercial packaging materials forbeverages, souvenirs, and restaurant use declined due to government stay-at-home requests.
As a result, overall sales in the Packaging business declined.
In the Living Spaces business, sales declined due to a fall in demand caused by the delay orsuspension of domestic housing construction and remodeling work due to the impact of COVID19.
In the High-Performance Industrial Supplies business, sales rose for battery pouches used in2automotive lithium-ion batteries due to increasing demand for electric vehicles that reduce
environmental impact, and for battery pouches for lithium-ion batteries used in tablets andsmartphones due mainly to an increase in teleworking. As a result, overall sales in the Industrial
Supplies business increased.
As a result of the above, overall segment sales fell 9.4% year on year to ¥178.6 billion andoperating income fell 22.6% year on year to ¥3.8 billion due to the considerable impact from adecrease in overall segment sales, despite expansion in the High-Performance Industrial
Supplies business and a decline in raw material prices.
Electronics
In the Display Components business, sales of components used in automotive applications
decreased due to a decline in demand for and production of automotive-related products caused
by COVID-19. Sales of color filters for LCD displays also declined due to business streamlining
in response to a decline in demand. In optical films, sales of projector screens declined in linewith a decrease in demand for large, high-priced displays due to COVID-19, but sales of products
used in LCD displays for tablets and monitors increased due to an increase in household demand
driven by teleworking and other factors, and sales of products used in TVs were also strong.
Sales of metal masks used in the production of organic light-emitting diode (OLED) displays also
remained stable due to greater uptake of OLED displays in smartphones. As a result, overallsales in the Display Components business increased.
Sales in the Electronic Devices business rose due to growth in overall demand driven by anincrease in remote working and greater uptake of IoT equipment.
As a result of the above, overall segment sales grew 2.1% year on year to ¥96.5 billion but
operating income fell 1.0% year on year to ¥17.9 billion due to a decline in sales of high valueadded display products caused by COVID-19.
[BEVERAGES]
Beverages
Amid a decline in demand from tourist destinations and restaurants due to government stay-athome requests, sales of the Lemondo line of alcoholic beverages increased due to greater
demand from consumers drinking at home, and the DNP Group also made efforts to propose
products that address growing restaurant take-out demand.
Overall segment sales fell 5.1% year on year to ¥24.4 billion as growth in Lemondo sales wasoffset by factors including the impact of government stay-at-home requests, a decrease intourists and hotel guests, and a decline in beverage demand due to the temporary closure ofrestaurants and other businesses. Operating income declined to a loss of ¥0.1 billion (fromincome of ¥0.6 billion in the first half of the previous fiscal year) due to factors such as a decline
in sales volume.
(2) Explanation of the consolidated financial position
Total assets at the end of the second quarter increased by ¥8.6 billion from the end of theprevious fiscal year to ¥1,730.3 billion, due mainly to an increase in investment securities.
Total liabilities decreased by ¥39.2 billion from the end of the previous fiscal year to ¥713.8
billion, due mainly to a decrease in notes and trade payables.
Net assets increased by ¥47.9 billion from the end of the previous fiscal year to ¥1,016.4
billion, due mainly to an increase in valuation difference on available-for-sale securities.
Cash and cash equivalents at the end of the second quarter decreased by ¥49.3 billion from theend of the previous fiscal year to ¥328.0 billion.
Cash flow provided by operating activities totaled ¥12.4 billion (¥54.1 billion in the first half ofthe previous fiscal year), due mainly to ¥19.2 billion in income before income taxes and noncontrolling interests and ¥24.2 billion in depreciation.
Cash flow used in investing activities totaled ¥41.1 billion (cash provided of ¥207.6 billion in
the first half of the previous fiscal year), due mainly to a ¥7.8 billion net increase in time depositsand ¥26.6 billion in payments for purchases of property, plant and equipment.
Cash flow used in financing activities totaled ¥19.6 billion (¥28.0 billion in the first half of the3

previous fiscal year), due mainly to a ¥5.6 billion net decrease in short-term bank loans and ¥8.9
billion in dividends paid.
(3) Explanation of the consolidated earnings forecasts
Our earnings forecasts for the fiscal year ending March 2021 are unchanged from the forecasts
announced on August 5, 2020.

4

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

As of March 31, 2020

As of September 30,
2020

ASSETS
Current assets
Cash and time deposits
Notes and trade receivables
Marketable 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

5373,013
330,798
18,00078,19932,231
23,84929,279(1,361)
884,010331,410305,827
18,00078,65332,06725,43923,863(908)
814,353

158,089
65,016
141,423
16,42828,409409,367

159,815
70,105
141,430
13,02527,648412,025

22,71622,71625,18325,183298,894
109,021(2,286)405,629
837,713
1,721,724

368,510
112,560(2,257)
478,813916,022
1,730,376

(Million yen)

As of September 30,
2020

As of March 31, 2020
LIABILITIESCurrent liabilities
Notes and trade payables
Short-term bank loans

238,066
39,051

208,706
33,411

Bonds redeemable within 1 year

52,49052,430Reserve for bonuses

18,945

19,170

Repair reserve

20,636

20,267

Other

111,461

93,539Total current liabilities

480,651

427,526

107,120

107,035

Long-term debt

5,977

5,744

Repair reserve

54,66050,811

Net defined benefit liability

35,68735,110

Deferred tax liabilities

42,821

63,242Other

26,23024,422

Total long-term liabilities

272,497

286,366

753,149

713,892

Common stock

114,464

114,464

Capital surplus

145,024

145,024

Retained earnings

676,346

678,792

Treasury stock(122,911)(122,915)

Total stockholders’ equity

812,923

815,365

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

110,051

157,47355Foreign currency translation adjustments(3,448)(5,262)Remeasurements of defined benefit plans
Total accumulated other comprehensive
income(3,751)(3,942)

102,856

148,273

Non-controlling interests

52,794

52,844TOTAL NET ASSETS

968,574

1,016,484

1,721,724

1,730,376

Long-term liabilities
Bonds

TOTAL LIABILITIESNET ASSETSStockholders’ equity

TOTAL LIABILITIES AND NET ASSETS

6

(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, 2019
694,150Six months ended
September 30, 2020
644,638

Cost of sales

549,711

513,552

Gross profit

144,439

131,085

Selling, general and administrative expenses

118,749

113,521

Operating income

25,68917,563

3,029
2,994
2,396
8,420

2,666
3,195
1,933
7,795

863
1,340
2,486
4,690

729
1,161
1,674
3,564

29,42021,79329,96351,34029
81,333

29
20
–
50

923
469
109
1,502

804
864
962
2,631

109,250

19,212

18,893
13,20832,102
77,148

6,951
49
7,000
12,212

1,652

777

75,495

11,434

Net 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 investment securities
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 six months of the fiscal years(Million yen)Six months ended
September 30, 2019
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 of affiliates
accounted for using equity method
Total other comprehensive income (loss)
Comprehensive income
Attributable to：Parent company shareholders
Non-controlling shareholders

8

Six months ended
September 30, 2020

77,148

12,212(40,606)

47,6739(2,168)(624)(0)(1,820)532(78)(1,231)(43,468)
33,67945,15457,36632,081
1,598

56,852514

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

Cash flows from operating activities
Income before income taxes and non-controllinginterests
Depreciation
Decrease of doubtful accounts
Increase of net defined benefit asset
Increase of net defined benefit liability
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 (gains) losses on sales or disposal of fixed
assetsDecrease in trade receivables
Increase in inventories
Decrease in trade payables
Other
Sub-total
Payments for repair costs
Payments for extra retirement payments
Payment of income taxes
Net cash provided by operating activities
Cash flows from investing activities
Net (increase) decrease 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
Payments for purchase of intangible fixed assets
Payments for purchase of stock in subsidiaries
resulting in change in scope of consolidation
Proceeds from purchase of stock in subsidiaries
resulting in change in scope of consolidation
Interest and dividends received
Other
Net cash provided by (used in) investing activities

9

Six months ended
September 30, 2019

Six months ended
September 30, 2020

109,250

19,212

26,711(208)(3,283)626(2,994)834(3,029)863(51,336)471

24,282(464)(2,013)86(3,195)762(2,666)
729
(18)
864

(29,003)820

33,085(4,658)(13,734)
6,318
69,913(8,255)(335)(7,125)54,19625,016(2,141)(29,612)2,100
33,763(4,217)(6)(17,133)
12,404

133,990(7,809)(21,547)(26,650)

42,486467(400)
56,197(4,785)(493)
80(5,396)–(1,975)

38

–

3,720
(2,043)
207,657

3,633(3,011)(41,154)

(Million yen)

Cash flows from financing activities
Net decrease in short-term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issue of bonds
Payments for redemption of bonds
Payments for purchases of treasury stock
Payments for purchases of treasury stock ofsubsidiaries
Interest paid
Dividends paid
Dividends paid to non-controlling interests
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting fromthe merger of non-consolidated subsidiaries
Cash and cash equivalents at end of period10

Six months ended
September 30, 2019

Six months ended
September 30, 2020

(9,209)1,100(1,368)49,785(50,145)(3,278)(5,622)
1,095(2,039)
–
(145)
(4)

(0)

(0)

(984)
(9,659)(422)(3,846)(28,029)(738)(8,990)(463)(2,742)(19,651)(1,289)(948)

232,535
133,771(49,349)
377,367–47

366,306

328,066(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, 2019 – September 30, 2019)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

377,345

196,530

94,572

Beverages

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

Net sales
Outside customers

25,701

694,150–

694,150

Inter-segment

1,654

634

–

9

2,298

(2,298)–

Total

378,999

197,165

94,572

25,711

696,449(2,298)694,150

Segment income

12,798

4,941

18,089633

36,462(10,772)

25,689Notes:

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 six months of current fiscal year (April 1, 2020 – September 30, 2020)
Information on sales and income/loss by reporting segment
Reporting segment
Information
Communication

Lifestyle andIndustrial
Supplies

Electronics

345,188

178,537

96,520Beverages

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

Net sales
Outside customers

24,390644,638–

644,638

Inter-segment

1,114

82

–

9

1,206

(1,206)–

Total

346,303178,620

96,52024,400645,844(1,206)644,638

Segment income (loss)

6,410

3,825

17,902(102)

28,036(10,472)

17,563

Notes:

1.
2.

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.

11